STAND. COM. REP. NO. 475________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1292

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Transportation, to which was referred H.B.
No. 1292 entitled: 


begs leave to report as follows:

     The purpose of this bill is to provide water transportation
between the islands of Molokai and Maui.

     Your Committee finds that Molokai has the highest
unemployment rate in the State, while Maui has work opportunities
for some of these unemployed persons.  Your Committee further
finds that water transportation between the two islands ceased
operation in 1996, leaving Molokai residents without ferry
transportation to reach Maui worksites at reasonable cost.

     This bill proposes to appropriate funds to reestablish an
interisland ferry system between the islands of Maui and Molokai.

     Testimonies in favor of this bill were received from the
Maui County Council and Boats/Hawaii Inc.  The Department of
Transportation testified in support of the intent of the bill.

                                 STAND. COM. REP. NO. 475________
                                 Page 2


     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 H.B. No.
1292 and recommends that it pass Second Reading and be referred
to the Committee on Finance.

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

                                   KENNETH T. HIRAKI, Chair