Honolulu, Hawaii

, 2002

RE: S.B. No. 313

S.D. 2



Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2002

State of Hawaii


Your Committees on Commerce, Consumer Protection and Housing and Ways and Means, to which was referred S.B. No. 313, S.D. 1, entitled:


beg leave to report as follows:

The purpose of this measure is 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.

Your Committees received written testimony in support of this measure from Citizens for Competitive Air Travel and from a concerned citizen. Hawaii Laiekawai Association testified orally in support of this measure. The Department of Transportation submitted written comments on this measure, and the Department of Business, Economic Development and Tourism offered oral comments on this measure.

Your Committees find that there is tremendous concern in the community regarding the proposed Aloha Airlines/Hawaiian Airlines merger. Residents are particularly concerned that the frequency of interisland service will diminish and that fares will increase.

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 measure.

Your Committees also recognize concerns raised about the appropriateness of the title of this measure, which began as a short form bill. Due to the urgency and importance of this issue to residents of the State, however, your Committees believe that the substance of this measure deserves further consideration.

Thus, your Committees have decided to pass this measure to the House of Representatives for consideration, and if the title is ultimately found to be inappropriate, your Committees recommend inserting the text of this measure into a measure with a more fitting title.

Your Committees have amended this measure to repeal the June 30, 1993, deadline for deposit of collateral into the Hawaii interisland loan guarantee trust fund. If an Air Carrier Commission is ever established, the loan guarantee program may be important to enable the work of the Commission.

As affirmed by the records of votes of the members of your Committees on Commerce, Consumer Protection and Housing and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 313, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 313, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Commerce, Consumer Protection and Housing and Ways and Means,