STAND. COM. REP. NO. 2786

Honolulu, Hawaii

RE:    S.B. No. 2751

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2751, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS,"

begs leave to report as follows:

     The purpose and intent of this measure is to provide government agencies with flexibility in the negotiation of concession contracts, specifically those that involve evolving media technologies.

     More specifically, this measure exempts from the public concession bidding process the operation of concessions that:

     (1)  Provide wireless and communication services; or

     (2)  Consist solely of advertising.

     Your Committee received written comments in support of this measure from the Department of Transportation and the Airport Concessionaires Committee.

     Your Committee finds that the technologies used in communications and advertising evolve at a rapid pace.  Requiring the operation of concessions that provide electronic communication services or consist solely of advertising to undergo the formal bidding process is often time-consuming and results in the use of obsolete or unsuitable technologies.  Your Committee believes that providing flexibility in the negotiation of these concession contracts will benefit the State by enhancing efficiency and improving the level of services provided to consumers.

     Your Committee has amended this measure by making technical nonsubstantive amendments for the purposes of clarity, consistency, 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. 2751, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2751, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair