STAND. COM. REP. NO. 1524

 

Honolulu, Hawaii

                  

 

RE:    S.C.R. No. 121

 

 

 

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

 

Madam:

 

     Your Committee on Ways and Means, to which was referred S.C.R. No. 121 entitled:

 

"SENATE CONCURRENT RESOLUTION REQUESTING HAWAII'S CONGRESSIONAL DELEGATION TO PROPOSE AMENDMENTS TO THE AIRLINE DEREGULATION ACT TO EXEMPT HAWAII FROM THE UNITED STATES' PREEMPTION OF STATE ECONOMIC REGULATION OF INTERSTATE AIR TRANSPORTATION,"

 

begs leave to report as follows:

 

     The purpose of this measure is to seek an exemption from federal law to ensure stable and continuing airline service throughout the State.

 

     Specifically, this measure requests Hawaii's congressional delegation to propose amendments to the federal Airline Deregulation Act to exempt Hawaii from federal preemption of state regulation of air transportation.

 

     Your Committee finds that the Airline Deregulation Act of 1978 was enacted to promote market competition among airlines to foster lower prices and greater efficiency, innovation, variety, and service quality.  To ensure that the states would not enact laws undermining federal deregulation, the Airline Deregulation Act included a preemption provision, codified in Title 49 United States Code Section 41713(b)(1), prohibiting states and their political subdivisions from enacting or enforcing any law affecting air carrier rates, routes, or services.  However, preemption under the federal Act does not apply to air transportation provided entirely in Alaska because of a specific statutory exemption granted to Alaska.  This measure requests Hawaii's congressional delegation to propose an amendment to the Airline Deregulation Act that would allow the State to limit monopoly pricing and ensure service to less profitable air routes, particularly in light of the significant use of airlines for interisland transportation and the relative lack of competition among interisland air carriers.

 

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee concurs with the intent and purpose of S.C.R. No. 121 and recommends its adoption.

 

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

 

 

 

____________________________

DAVID Y. IGE, Chair