STAND. COM. REP. NO.2301

Honolulu, Hawaii

, 2002

RE: S.B. No. 2600

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii

Sir:

Your Committee on Transportation, Military Affairs and Government Operations, to which was referred S.B. No. 2600 entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONAIRES,"

begs leave to report as follows:

The purpose of this measure is to amend section 102-10, Hawaii Revised Statutes, to provide a permanent mechanism whereby relief can be granted to airport concessionaires whose businesses are harmed by events such as last year's terrorist attacks.

Your Committee received testimony in support of this measure from DFS Galleria, Island Heritage, Smarte Carte, Inc., Catrala-Hawaii, Thomas Cook Currency Services, Inc., APCOA, the Airport Concessionaires Committee, and Host International. Testimony in opposition to this measure was submitted by the Department of Transportation (DOT) and the Airlines Committee of Hawaii.

Your Committee finds that the tragic events of September 11, 2001, and the enormous resulting decline in air travel had a devastating impact on many airport concessionaires. In response, the Legislature convened in special session and passed legislation authorizing the Governor to provide immediate emergency relief to airport concessionaires that were unable to make payments under existing contracts with the State. Act 15, which authorized such emergency relief, will be repealed automatically on April 30, 2002.

Your Committee supports emergency relief for airport concessionaires when events warrant, and supports this measure for the purpose of further discussion on the issue of whether it is appropriate to codify a mechanism for providing such emergency relief.

Your Committee amended this measure by inserting amendments to section 102-2(b), Hawaii Revised Statutes. These amendments allow the DOT to extend revocable permits at the airport for up to one year in the event of a natural disaster or an economic crisis.

As affirmed by the record of votes of the members of your Committee on Transportation, Military Affairs and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2600, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2600, 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, Military Affairs and Government Operations,

____________________________

CAL KAWAMOTO, Chair