H.B. NO.














relating to transportation.





SECTION 1. The legislature finds that it has continually recognized the importance of tourism to Hawaii's economy and that the first and last impression visitors to Hawaii have of our island state occurs when they arrive and depart through our public airports. In keeping with such recognition, the legislature has passed measures in support of the modernization and improvement of public airports in Hawaii's airport system.

As recently as 2014, the legislature enacted Act 126, Session Laws of Hawaii 2014, to further support the modernization of Hawaii's airports by extending, for an additional year, the authority of the department of transportation to extend the term of the concession of an airport concessionaire, or modify and amend terms of any existing concession contract, lease, or permit, in exchange for revenue-enhancing improvements that are made and paid for by the concessionaire. This was seen as a win-win situation for all parties because concessionaires would be allowed to continue operations and make necessary improvements to enhance business, the department of transportation would continue to receive revenues from airport concessionaires, and Hawaii's airports would receive much needed improvements to airport concession facilities to meet the needs and demands of airport passengers at no cost to the State.

While mindful of the importance of improvements to airport concessions, the legislature also recognizes that airport concessionaires will only be able to maximize their payments to Hawaii's public airports if the operating costs for doing business at airports remain reasonable. However, operational costs for airport concessionaires continue to rise due in part to theft and misuse of inventory maintained at the airports. One airport concessionaire has reported that, despite airport security being in place, theft and misuse of inventory experienced by the concessionaire has resulted in operational costs being double that of the national average. The legislature finds that controlling the theft and misuse of the inventory of airport concessionaires would assist in reducing their operational costs and be in the best interest of the State.

The purpose of this Act is to assist airport concessionaires in controlling theft of supplies or inventory to reduce operational costs associated with doing business at Hawaii's airports by establishing penalties for theft committed against airport concessionaires.

SECTION 2. Chapter 261, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"261-   Theft or damage of airport concession supplies or inventory; civil liability. (a) Any person who takes possession of any supplies or inventory displayed or offered for sale or use by any airport concession without the written consent of the owner of the airport concession for a period longer than thirty-six hours and with the intention of converting the supplies or inventory to the person's own use without having paid the purchase price thereof, by causing damage to the supplies or inventory in excess of $50, by altering the price indicia of the supplies or inventory, or by taking any other action that constitutes theft under section 708-308, shall be civilly liable to the owner of the airport concession for the value or aggregate value of the supplies or inventory stolen, or the value or aggregate value of the supplies or inventory stolen or damaged, and a minimum fine of       times the value or aggregate value involved."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.








Report Title:

Airport Concessions; Theft; Damage; Penalties



Establishes penalties for theft or damage of airport concession supplies or inventory.




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