STAND. COM. REP. NO. 488-22

Honolulu, Hawaii

, 2022

RE: H.B. No. 1953

H.D. 2

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred H.B. No. 1953, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO CONCESSIONS,"

begs leave to report as follows:

The purpose of this measure is to provide the Department of Transportation with more flexibility and discretion to address substantial hardship situations that impact airport concession contracts.

Your Committee received testimony in support of this measure from the Airport Concessionaires Committee and one individual. Your Committee received testimony in opposition to this measure from the Airlines Committee of Hawaii. Your Committee received comments on this measure from the Department of Transportation.

Your Committee finds that the Department of Transportation lacked the flexibility and discretion it needed to grant relief to airport concessions facing financial hardship during the coronavirus disease 2019 pandemic. This measure will address the inadequacy of options the Department of Transportation has at its disposal in responding to downturns in tourism, air traffic, and corresponding decreases in volume in business generated by travelers at the airport.

Your Committee has amended this measure by:

(1) Changing the maximum number of years of the term of any contract for airport concessions to an unspecified number; and

(2) 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 Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1953, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as H.B. No. 1953, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair