STAND. COM. REP. NO. 55

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 959
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred S.B. No. 959 entitled: 

     "A BILL FOR AN ACT RELATING TO SPECIAL FACILITY REVENUE
     BONDS FOR AIRPORTS,"

begs leave to report as follows:

     The purpose of this measure is to redefine "special
facility" to include air cargo operations for purposes of issuing
special facility revenue bonds and leases for airports.

     Testimony in support of this measure was received from
Hawaiian Airlines, Inc. and testimony commenting on the measure
with suggested amendments was received from the Department of
Budget and Finance, and the Airlines Committee of Hawaii.

     Testimony in opposition to this measure was received from
the Department of Transportation.

     Your Committee believes that permitting the issuance of
special facility revenue bonds and leases for air cargo
facilities and operations will foster economic growth in the
State.

     Your Committee has amended this measure to further clarify
that the term "special facility" includes air cargo facilities
and operations, and to make technical, nonsubstantive changes.


 
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                                   STAND. COM. REP. NO. 55
                                   Page 2


     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of S.B. No. 959, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 959, S.D. 1, and be referred to the Committee
on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Transportation
                                   and Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
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