STAND. COM. REP. NO. 919-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: S.B. No. 2300
                                     S.D. 2
                                     H.D. 1




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred S.B.
No. 2300, S.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO HARBORS,"

begs leave to report as follows:

     The purpose of this bill is to allow the Department of
Transportation (DOT) and the Department of Land and Natural
Resources (DLNR) to enter into cost-containment contracts with
private developers.

     Your Committee finds that Hawaii's harbors need
improvements.  Under current statute, DOT and DLNR are required
to get appropriations through legislative action.  Your Committee
further finds that by allowing DOT and DLNR to contract the
private development of harbor facilities on state land,
construction will be more expedient.

     This bill allows DOT and DLNR to enter contracts with
private developers for projects up to $2,000,000 without
legislative approval.  This bill also allows the DOT and DLNR to
enter into contracts for up to $5,000,000 with legislative
approval.

     Testimonies in support of this bill were received from the
Board of Land and Natural Resources, American Hawaii Cruises, CSX
Lines, Hawaii Stevedores, Inc., Hawaii Boaters Political Action
Association, Regal Travel, Waldron Steamship Co., Ltd., Big

 
 
                                 STAND. COM. REP. NO. 919-00
                                 Page 2

 
Island Business Council, Aloha Tower Marketplace, Young Brothers,
Ltd., the Chamber of Commerce of Hawaii Maritime Committee,
Hawaii State Association of Counties, Paradise Cruise, Ltd.,
Boats Hawaii, and the Kaneohe Bay Association of Mariners.  The
Department of Transportation and the Maui Hotel Association
support the intent of this bill.  Testimonies in opposition to
this bill were received from the Office of Hawaiian Affairs and
Hawaii's Thousand Friends.  Matson Navigation Company expressed
concerns about this bill.

     Your Committee has amended this bill by making the following
changes:

     (1)  Replacing all monetary figures with the figure of $1,
          to facilitate further discussion; and

     (2)  Changing the effective date to January 1, 2020, to
          facilitate further discussion.

     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.
2300, S.D. 2, as amended herein, and recommends that it pass
Second Reading in the form attached hereto as S.B. No. 2300, 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