Honolulu, Hawaii

, 2002

RE: H.B. No. 1722

S.D. 1



Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committees on Transportation, Military Affairs and Government Operations and Commerce, Consumer Protection and Housing, to which was referred H.B. No. 1722 entitled:


beg leave to report as follows:

The purpose of this measure as introduced was to reduce the motor vehicle safety inspection requirement for heavy commercial vehicles to once a year.

Prior to the hearing on this measure, your Committees prepared a Proposed S.D. 1 to incorporate provisions designed to provide economic relief to airport concessionaires, as discussed below.

Testimony in support of the original measure was submitted by the Department of Transportation (DOT), Hawaiian Electric Company, and Hawaii Transportation Association.

Oral testimony in support of the Proposed S.D. 1 was offered by Catrala Hawaii. The DOT submitted testimony in opposition to the Proposed S.D. 1.

As an initial matter, your Committees find that the companies operating heavy commercial vehicles regularly inspect those vehicles, and that State inspection more than once a year is unnecessary. Therefore, your Committees support the provisions contained in this measure as introduced.

In addition, in the Proposed S.D. 1 version of this measure your Committees:

(1) Amended chapter 102, Hawaii Revised Statutes (HRS), to insert a requirement that a "force majeure" provision be included in every contract between the State and a concessionaire, whereby neither party to the contract shall be liable for breaches caused by events wholly beyond the control of the breaching party;

(2) Amended section 102-2, HRS, to authorize the DOT to issue revocable permits for up to two years in times of natural disaster or other adverse economic circumstances;

(3) Amended section 102-10, HRS, to provide a permanent mechanism to provide economic relief to concessionaires during periods of severe decline in business, and to provide the terms of contract termination when such circumstances arise; and

(4) Amended section 171-13, HRS, to provide that when a concessions contract is canceled in times of severe economic crisis, the concessionaire will not be barred from bidding on projects for five years, as would otherwise have been the case.

Your Committees find that the current economic crisis continues, and due to the severe decline in air arrivals and departures, coupled with tighter security measures at airports, concessionaires are hurting as much or more than any other sector of the business community. Your Committees support these measures both to provide relief during the current crisis, and to provide a statutory mechanism for providing relief in the future if similar circumstances arise.

Finally, your Committees amended this measure to change the effective date to July 1, 2050, and to repeal the June 30, 2002, sunset date of Act 332, Session Laws of Hawaii 1993 (Act 332), which authorizes the establishment of the air carrier commission.

Although the Air Carrier Commission authorized by Act 332 was never established, your Committees believe that it is prudent to repeal the sunset date of that Act so that the Commission can be convened if federal enabling legislation is enacted. Therefore, your Committees support the intent of this amendment.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs and Government Operations and Commerce, Consumer Protection and Housing that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1722, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1722, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation, Military Affairs and Government Operations and Commerce, Consumer Protection and Housing,