STAND. COM. REP. 2132

Honolulu, Hawaii

, 2004

RE: S.B. No. 3080

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committees on Transportation, Military Affairs, and Government Operations and Tourism, to which was referred S.B. No. 3080 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose of this measure is to provide negotiation relief to certain airport concessions.

Testimony in support of this measure was received from the Airport Concessionaires Committee and Greeters of Hawaii. Testimony in opposition was received from the Department of Transportation (DOT), Attorney General, and Airlines Committee of Hawaii.

Your Committees find that the terrorist attacks of September 11, 2001 had a profound impact on air travel in the United States. The subsequent events of the Iraq War and severe acute respiratory syndrome further reduced air travel to Hawaii and other major airports in the United States. The intent of this measure is to provide further relief to previously qualified concessionaires who received relief following the events of September 11, 2001 but who have not yet negotiated further relief with the State. While most concessions since the ending of the regular session of 2003 have negotiated relief with the State, some have not been able to complete negotiations due to the fact that these concessions may have been permanently damaged by the new federal security requirements imposed after September 11, 2001 and because the State may need added authority to provide necessary relief to those concessions.

Testimony indicated that there is only one concession remaining that has not been granted relief. That concession has been operating for at least forty years. All sides agree that an agreement could probably be reached in the near future. The problem seems to be the obsolete wording of that concessionaire's contract, the effect of which has required DOT to make a great effort to accommodate that vendor within the contract language and administrative rules. However, negotiations are proceeding in good faith. Nonetheless, your Committees pass this measure to keep it alive in deference to that single vendor who symbolizes fairness for all airport vendors.

Your Committees have amended this measure, on the recommendation of the Airport Concessionaires Committee, by:

(1) Clarifying the purpose section to include past efforts of the airport vendors to seek rent relief; and

(2) Adding session law provisions to govern the negotiations between the qualifying remaining vendors and the State.

As affirmed by the records of votes of the members of your Committees on Transportation, Military Affairs, and Government Operations and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3080, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3080, 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 Tourism,

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DONNA MERCADO KIM, Chair

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CAL KAWAMOTO, Chair