STAND. COM. REP. NO. 901

Honolulu, Hawaii

, 2005

RE: S.B. No. 848

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 848 entitled:

"A BILL FOR AN ACT RELATING TO SECURITY FOR CONCESSION CONTRACTS,"

begs leave to report as follows:

The purpose of this measure is to provide financial flexibility to concessions to give security for contract performance.

Specifically, this bill allows the use of legal tender or financial instruments other than security bonds to secure performance under concession contracts with the State.

Your Committee finds that security bonds have become increasingly expensive and difficult to obtain for airport concessionaires. This measure would provide concessionaires with flexibility, and reduce their costs associated with financial security requirements by providing financial instruments other than security bonds to secure contract performance.

Your Committee has made a technical amendment to conform the text of the bill in section 2 to the printed version of the Hawaii Revised Statutes, and made further technical amendments for the purposes of clarity and style.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 848, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 848, S.D. 1.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair