STAND. COM. REP. 2818

Honolulu, Hawaii

, 2004

RE: S.B. No. 3080

S.D. 2

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 3080, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to provide further relief to airport concessions that were negatively impacted by the events of September 11, 2001, the subsequent Iraq war, and the outbreak of severe acute respiratory syndrome.

Your Committee finds that despite relief that was extended to airport concessions following the events of September 11, 2001, and the imposition of airport security controls, the subsequent Iraq war and the outbreak of severe acute respiratory syndrome have caused airport concessions to continue to suffer downturns in business. This measure provides further relief to airport concessions who have received relief following the events of September 11, 2001, but have not yet negotiated further relief with the State.

This measure grants further relief to concessions that have continued to suffer a reduction in gross receipts of fifteen per cent or more. Relief includes the payment of only a fair percentage rent without a guaranteed rent, or the termination of the concession contract without the concession losing its bond or deposit or suffering the penalty of being barred from doing business with the State for five years, as provided under present law. If a fair percentage rent cannot be agreed to, the Department of Transportation must either terminate the contract or require the concession to remain in business at a no-profit, break-even basis.

Your Committee has amended this measure by:

(1) Making technical nonsubstantive changes for clarity and consistency; and

(2) Changing the effective date to facilitate further discussion on this matter.

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 is in accord with the intent and purpose of S.B. No. 3080, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3080, S.D. 2.

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

____________________________

BRIAN T. TANIGUCHI, Chair