STAND. COM. REP. NO. 1162

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 1256
                                     S.D. 2
                                     H.D. 1




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

Sir:

     Your Committee on Transportation, to which was referred S.B.
No. 1256, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO AN INTERISLAND FERRY SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to appropriate an unspecified
sum of money out of the general revenues of the State to match an
anticipated $3,000,000 in funds from the Federal Transit
Administration, to be expended for establishing an interisland
ferry system between the islands of Maui and Molokai.

     Your Committee finds that the proposed interisland ferry
system would provide a vital link for Molokai residents to
commute to Maui for employment.  Your Committee further finds
that creating a ferry system as a lower-cost alternative for air
transportation would have positive economic impacts on the
islands of Maui and Molokai.

     Testimonies in support of this measure were received from
the Department of Transportation; a member of the County Council,
County of Maui; the Maritime Committee, The Chamber of Commerce
of Hawaii; and Boats/Hawaii, Inc.  The Department of Budget and
Finance expressed concerns about the costs associated with
operating the system and the potential ridership. 

     Your Committee has amended this bill by appropriating funds
from special fund revenues, rather than from general revenues.

 
 
                                 STAND. COM. REP. NO. 1162
                                 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 S.B. No.
1256, S.D. 2, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 1256, 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,



                                   ______________________________
                                   KENNETH T. HIRAKI, Chair