STAND. COM. REP. 1033

Honolulu, Hawaii

, 2003

RE: S.B. No. 1478

S.D. 2

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 1478, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AIRPORT CONCESSIONAIRES,"

begs leave to report as follows:

The purpose of this bill is to:

(1) Provide relief for airport concessionaires in the event of future, unforeseen, or catastrophic events by requiring force majeure terms to be included in airport concession contracts; and

(2) Award the taxicab concession for state airports to an independent management company and authorize the management company to subcontract for the operation of taxis at State airports.

The Airport Concessionaires Committee, The Hertz Corporation, Wholesale Motors, Inc., dba JN Truck & Car Rental, ANC Rental Corporation, Dollar Rent A Car Systems, Inc., Island Heritage, HMS Host-Hawaii, Greeters of Hawaii, Ltd., Travelex, Hawaii Intercontinental, Konaco Specialties, Inc., A & K Nurseries, Inc., Kanoa Hawaii, Kini Po-Po Creations, Inc., APCOA/Standard Parking in Hawaii, and Island Shoppers, Inc., testified in support of this bill. The Department of Transportation (DOT) and Airlines Committee of Hawaii testified in opposition to this measure.

The events of September 11, 2001, had a devastating effect on both the airline industry and airport concessionaires. Many concessionaires still have not recovered economically from these events and continue to struggle to maintain operations at a "break even" level. Moreover, global events and the impending war with Iraq will continue to hinder the ability of airport concessionaires to increase their customer base since increased security measures at State airports allow only ticketed customers to proceed beyond security checkpoints where most concessionaires operate. This situation is beyond the control of concessionaires and they should not be held liable for failure to perform due to outside forces.

Your Committee finds that a relief mechanism should be established to assist airport concessionaires when unforeseen catastrophic events occur. This measure will provide relief and require DOT to be fair and reasonable in its dealings with airport concessionaires.

However, your Committee also understands the financial constraints faced by the State and the economic crisis the State will face in light of recent global events. Accordingly, this measure has been amended by making it apply retroactively to January 1, 2002, for purposes of further discussion. Other amendments were also made for purposes of style and clarity.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1478, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1478,

S.D. 2, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

____________________________

JOSEPH M. SOUKI, Chair