STAND. COM. REP. NO. 239

Honolulu, Hawaii

, 2005

RE: S.B. No. 848

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 848 entitled:

"A BILL FOR AN ACT RELATING TO SECURITY FOR CONCESSION CONTRACTS,"

begs leave to report as follows:

The purpose of this measure is to allow the use of legal tender or financial instruments other than bonds to secure performance under concession contracts with the State.

Your Committee received testimony in support of this measure from the Department of Transportation.

Presently, concessionaires are required by statute to provide a bond to ensure performance under the terms of the concession agreement. In the wake of the events of September 11, 2001, bonds have become increasingly expensive and difficult to obtain for airport concessionaires. This measure would provide concessionaires with flexibility, and reduce their costs associated with financial security requirements.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 848 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Transportation and Government Operations,

____________________________

LORRAINE R. INOUYE, Chair