SB 1638: DOT; Airlines; Air Carriers; Subsidy; Molokai Airport; Appropriations

A BILL FOR AN ACT

RELATING TO AIR CARRIERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that the lack of affordable air travel disproportionately affects Molokai residents, many of whom rely on air transportation for essential services, including healthcare, employment, and education.  The legislature further finds that reliable and cost-effective air service is not merely a convenience but a necessity for residents of remote island communities.  As such, ensuring that Molokai residents have access to affordable air transportation serves a compelling public interest by improving economic opportunities, enhancing access to medical care, and supporting the overall well-being of the community.  The establishment of a subsidy program is intended to encourage competition among air carriers, thereby reducing the cost burden on residents while maintaining reliable service levels.  The legislature declares that this Act serves a valid public purpose and is an appropriate use of state funds under article VII, section 4, of the Hawaii State Constitution.

     Accordingly, the purpose of this Act is to establish within the department of transportation a three-year Molokai air carrier subsidy pilot program to provide subsidies to airlines operating out of Molokai Airport.

     SECTION 2.  (a)  There shall be established within the department a three-year Molokai air carrier subsidy pilot program to provide subsidies to air carriers operating out of Molokai Airport.

     (b)  The Molokai air carrier subsidy program shall provide subsidies to qualified applicants pursuant to the following terms, conditions, and standards:

     (1)  Any subsidy shall be used exclusively for the purposes of the program;

     (2)  The applicant shall indicate the capability to properly use the subsidy for the costs of operation in and out of Molokai Airport;

     (3)  The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  The subsidy shall not be used for purposes of entertainment or perquisites;

     (5)  All activities undertaken with subsidy funds received shall comply with all applicable federal, state, and county statutes and ordinances;

     (6)  The applicant shall:

          (A)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds received from the program; and

          (B)  Obtain sufficient insurance to provide the indemnification under subparagraph (A), if requested to do so by the department;

     (7)  The applicant shall agree to make available to the department all records the applicant may have relating to the subsidy to monitor the applicant's compliance with the requirements of the program;

     (8)  The applicant shall comply with other requirements as the department may prescribe; and

     (9)  The applicant shall demonstrate measurable improvements in air service availability or affordability for Molokai residents.  Such improvements may include but are not limited to:

          (A)  An increase in the number of regularly scheduled flights;

          (B)  A reduction in airfare costs for residents; or

          (C)  The introduction of alternative pricing structures that benefit low-income and frequent travelers.

          The department shall establish guidelines to evaluate the extent of such improvements before awarding or renewing any subsidy.

     (c)  The department shall submit a comprehensive report detailing the impact of the Molokai air carrier subsidy program, including but not limited to:

     (1)  The number of flights subsidized;

     (2)  Changes in air travel costs;

     (3)  The amount of subsidy funds disbursed;

     (4)  A detailed accounting and descriptions of expenditures of subsidy funds; and

     (5)  The overall benefits to Molokai residents,

to the legislature no later than twenty days prior to the convening of the regular sessions of 2026, 2027, and 2028.

     (d)  The department shall conduct an annual audit of all funds disbursed under the Molokai air carrier subsidy program to ensure compliance with program requirements.  Each audit shall assess whether funds were used for their intended purpose and whether the subsidy has contributed to improving air service availability and affordability for Molokai residents.  If an air carrier is found to have misused funds, the carrier shall return the misused amount to the department and shall be ineligible for further subsidies under the program for a period of up to three years.

     (e)  As used in this section:

     "Applicant" means a qualified air carrier operating, or planning to operate, out of Molokai Airport seeking a subsidy.

     "Department" means the department of transportation.

     "Program" means the Molokai air carrier subsidy program.

     "Subsidy" means the sum of money appropriated by the legislature to the department to be disbursed to qualified air carriers operating out of Molokai airport."

     SECTION 3.  In establishing the Molokai air carrier subsidy pilot program pursuant to section 2 of this Act, the department of transportation shall request the assistance of Hawaii's congressional delegation, the Federal Aviation Administration, and other pertinent federal officials.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to the department of transportation's administration division (TRN995) for the Molokai air carrier subsidy program.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 5.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2028.

Report Title:

DOT; Airlines; Air Carriers; Subsidy; Molokai Airport; Appropriations

Description:

Establishes within the Department of Transportation a three-year Molokai Air Carrier Subsidy Pilot Program to provide subsidies to airlines operating out of Molokai Airport.  Appropriates funds.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO AIR CARRIERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that since January 2021, only one passenger airline has provided service to the general public out of Molokai Airport.  While the airline has done its best to accommodate the needs of passengers, including adding additional routes and flight times and ordering larger planes, the cost of plane tickets remains a hindrance to many Molokai residents who need to travel for essential reasons, including work, medical appointments, and family.

     The legislature further finds that alleviating the costs of air travel, primarily for small, rural communities reliant on air travel for essential services and other needs, is a public purpose; and encouraging additional airlines to provide reliable airline services to and from Molokai to assist the residents who need to travel for essential reasons is a public purpose.  The legislature recognizes that providing a subsidy can help airlines offset the cost of passenger tickets while encouraging other airlines to also provide service at Molokai Airport.

     Accordingly, the purpose of this Act is to require the department of transportation to establish a Molokai air carrier subsidy program to provide subsidies to airlines operating out of Molokai Airport.

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

     "§261E-     Molokai air carrier subsidy program.  (a)  There is established within the department of transportation the Molokai air carrier subsidy program to provide subsidies to air carriers operating out of Molokai Airport.

     (b)  The Molokai air carrier subsidy program shall provide state subsidies to qualified applicants pursuant to the following terms, conditions, and standards:

     (1)  Any subsidy shall be used exclusively for the purposes of the program;

     (2)  The applicant shall indicate the capability to properly use the subsidy for the costs of operation in and out of Molokai Airport;

     (3)  The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  The subsidy shall not be used for purposes of entertainment or perquisites;

     (5)  All activities undertaken with subsidy funds received shall comply with all applicable federal, state, and county statutes and ordinances;

     (6)  The applicant shall:

          (A)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds received from the program; and

          (B)  Obtain sufficient insurance to provide the indemnification under subparagraph (A), if requested to do so by the department;

     (7)  The applicant shall agree to make available to the department of transportation all records the applicant may have relating to the subsidy to monitor the applicant's compliance with the requirements of the program; and

     (8)  The applicant shall comply with other requirements as the department may prescribe.

     (c)  The department shall submit an annual report to the legislature regarding the program, including subsidy funds disbursed and detailed accounting and descriptions of expenditures of subsidy funds, no later than twenty days prior to the convening of each regular session.

     (d)  As used in this section:

     "Applicant" means a qualified air carrier operating, or planning to operate, out of Molokai Airport seeking a subsidy.

     "Department" means the department of transportation.

     "Program" means the Molokai air carrier subsidy program.

     "Subsidy" means the sum of money appropriated by the legislature to the department to be disbursed to qualified air carriers operating out of Molokai airport."

     SECTION 3.  In establishing the Molokai air carrier subsidy program pursuant to section 2 of this Act, the department of transportation shall request the assistance of Hawaii's congressional delegation, the Federal Aviation Administration, and other pertinent federal officials.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to the department of transportation's administration division (TRN995) for the Molokai air carrier subsidy program.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.

Report Title:

DOT; Airlines; Air Carriers; Subsidy; Molokai Airport; Appropriations

Description:

Establishes within the Department of Transportation the Molokai Air Carrier Subsidy Program to provide subsidies to airlines operating out of Molokai Airport.  Appropriates moneys.  Effective 7/1/2050.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

RELATING TO AIR CARRIERS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that since January 2021, only one passenger airline has provided service to the general public out of Molokai Airport.  While the airline has done its best to accommodate the needs of passengers, including adding additional routes and flight times and ordering larger planes, the cost of plane tickets remains a hindrance to many Molokai residents who need to travel for essential reasons, including work, medical appointments, and family.

     The legislature further finds that alleviating the costs of air travel, primarily for small, rural communities reliant on air travel for essential services and other needs, is a public purpose; and encouraging additional airlines to provide reliable airline services to and from Molokai to assist the residents who need to travel for essential reasons is a public purpose.  The legislature recognizes that providing a subsidy can help airlines offset the cost of passenger tickets while encouraging other airlines to also provide service at Molokai Airport.

     Accordingly, the purpose of this Act is to require the department of transportation to establish a Molokai air carrier subsidy program to provide subsidies to airlines operating out of Molokai Airport.

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

     "§261E-    Molokai air carrier subsidy program.  (a)  There is established within the department of transportation the Molokai air carrier subsidy program to provide subsidies to air carriers operating out of Molokai Airport.

     (b)  The Molokai air carrier subsidy program shall provide state subsidies to qualified applicants pursuant to the following terms, conditions, and standards:

     (1)  Any subsidy shall be used exclusively for the purposes of the program;

     (2)  The applicant shall indicate the capability to properly use the subsidy for the costs of operation in and out of Molokai Airport;

     (3)  The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  The subsidy shall not be used for purposes of entertainment or perquisites;

     (5)  All activities undertaken with subsidy funds received shall comply with all applicable federal, state, and county statutes and ordinances;

     (6)  The applicant shall:

          (A)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds received from the program; and

          (B)  Obtain sufficient insurance to provide the indemnification under subparagraph (A), if requested to do so by the department;

     (7)  The applicant shall agree to make available to the department of transportation all records the applicant may have relating to the subsidy to monitor the applicant's compliance with the requirements of the program; and

     (8)  The applicant shall comply with other requirements as the department may prescribe.

     (c)  The department shall submit an annual report to the legislature regarding the program, including subsidy funds disbursed and detailed accounting and descriptions of expenditures of subsidy funds, no later than twenty days prior to the convening of each regular session.

     (d)  As used in this section:

     "Applicant" means a qualified air carrier operating, or planning to operate, out of Molokai Airport seeking a subsidy.

     "Department" means the department of transportation.

     "Program" means the Molokai air carrier subsidy program.

     "Subsidy" means the sum of money appropriated by the legislature to the department to be disbursed to qualified air carriers operating out of Molokai airport."

     SECTION 3.  In establishing the Molokai air carrier subsidy program pursuant to section 2 of this Act, the department of transportation shall request the assistance of Hawaii's congressional delegation, the Federal Aviation Administration, and other pertinent federal officials.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Molokai air carrier subsidy program.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2050.

Report Title:

DOT; Airlines; Air Carriers; Subsidy; Molokai Airport; Appropriations

Description:

Establishes within the Department of Transportation the Molokai Air Carrier Subsidy Program to provide subsidies to airlines operating out of Molokai Airport.  Appropriates funds.  Effective 7/1/2050.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

A BILL FOR AN ACT

Relating to Air Carriers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that since January 2021, only one passenger airline has provided service to the general public out of Molokai airport.  While the airline has done its best to accommodate the needs of passengers, including adding additional routes and flight times and ordering larger planes, the cost of plane tickets remains a hindrance to many Molokai residents who need to travel for essential reasons, including work, medical appointments, and family.

     The legislature further finds that alleviating the costs of air travel, primarily for small, rural communities reliant on air travel for essential services and other needs, is a public purpose; and encouraging additional airlines to provide reliable airline services to and from Molokai to assist the residents who need to travel for essential reasons is a public purpose.  The legislature recognizes that providing a subsidy can help airlines offset the cost of passenger tickets while encouraging other airlines to also provide service at Molokai airport.

     Accordingly, the purpose of this Act is to require the department of transportation to establish a Molokai air carrier subsidy program to provide subsidies to airlines operating out of Molokai airport.

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

     "§261E-     Molokai air carrier subsidy program.  (a)  There is established within the department of transportation the Molokai air carrier subsidy program to provide subsidies to air carriers operating out of Molokai Airport.

     (b)  The Molokai air carrier subsidy program shall provide state subsidies to qualified applicants pursuant to the following terms, conditions, and standards:

     (1)  Any subsidy shall be used exclusively for the purposes of the program;

     (2)  The applicant shall indicate the capability to properly use the subsidy for the costs of operation in and out of Molokai airport;

     (3)  The applicant shall comply with all applicable federal and state laws prohibiting discrimination against any person on the basis of race, color, national origin, religion, creed, sex, age, sexual orientation, disability, or any other characteristic protected under applicable federal or state law;

     (4)  The subsidy shall not be used for purposes of entertainment or perquisites;

     (5)  All activities undertaken with subsidy funds received shall comply with all applicable federal, state, and county statutes and ordinances;

     (6)  The applicant shall:

          (A)  Indemnify and hold harmless the State and its officers, agents, and employees from and against any and all claims arising out of or resulting from activities carried out or projects undertaken with funds received from the program; and

          (B)  Obtain sufficient insurance to provide the indemnification under subparagraph (A), if requested to do so by the department;

     (7)  The applicant shall agree to make available to the department of transportation all records the applicant may have relating to the subsidy to monitor the applicant's compliance with the requirements of the program; and

     (8)  The applicant shall comply with other requirements as the department may prescribe.

     (c)  The department shall submit an annual report to the legislature regarding the program, including subsidy funds disbursed and detailed accounting and descriptions of expenditures of subsidy funds, no later than twenty days prior to the convening of each regular session.

     (d)  As used in this section:

     "Applicant" means a qualified air carrier operating, or planning to operate, out of Molokai airport seeking a subsidy.

     "Department" means the department of transportation.

     "Program" means the Molokai air carrier subsidy program.

     "Subsidy" means the sum of money appropriated by the legislature to the department to be disbursed to qualified air carriers operating out of Molokai airport."

     SECTION 3.  In establishing the Molokai air carrier subsidy program pursuant to section 2 of this Act, the department of transportation shall request the assistance of Hawaii's congressional delegation, the Federal Aviation Administration, and other pertinent federal officials.

     SECTION 4.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the Molokai air carrier subsidy program.

     The sums appropriated shall be expended by the department of transportation for the purposes of this Act.

     SECTION 5.  New statutory material is underscored.

     SECTION 6.  This Act shall take effect on July 1, 2025.

Report Title:

HDOT; Airlines; Air Carriers; Subsidy; Molokai Airport; Appropriation

Description:

Establishes within the Department of Transportation the Molokai air carrier subsidy program to provide subsidies to airlines operating out of Molokai airport.  Appropriates moneys.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  1950

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1638

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Finance, to which was referred S.B. No. 1638, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIR CARRIERS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish within the Department of Transportation a three-year Molokai Air Carrier Subsidy Pilot Program to provide subsidies to air carriers operating out of Molokai Airport; and

     (2)  Appropriate funds for the administration of the Pilot Program.

     Your Committee received testimony in support of this measure from one member of the Maui County Council; Chamber of Commerce Hawaii; Huli Au Ola Maui County Area Health Education Center; Molokai Homestead Farmers Alliance; Kamaka Air LLC; Molokaʻi Drugs, Inc.; and four individuals.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1638, S.D. 2, H.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

STAND. COM. REP. NO.  1384

Honolulu, Hawaii

                , 2025

RE:   S.B. No. 1638

      S.D. 2

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

     Your Committee on Transportation, to which was referred S.B. No. 1638, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO AIR CARRIERS,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish the Molokai Air Carrier Subsidy Program to provide subsidies to airlines operating out of Molokai Airport; and

     (2)  Appropriate funds.

     Your Committee received testimony in support of this measure from one member of the Maui County Council and Chamber of Commerce Hawaii.  Your Committee received comments on this measure from the Department of Transportation.

     Your Committee finds that residents of Molokai face significant challenges in accessing reliable and affordable air travel, which is essential for medical care, employment, and maintaining connections with other islands.  With limited airline options, frequent flight cancellations, and high ticket prices, many residents experience financial hardship and delays in receiving critical services.  Your Committee believes that supporting air carriers operating out of Molokai Airport will ensure more consistent and accessible transportation options for the Molokai community.

     Your Committee has amended this measure by:

     (1)  Amending the purpose section;

     (2)  Changing the Molokai Air Carrier Subsidy Program to a three-year pilot program and placing the language in session law rather than codifying it in the Hawaii Revised Statutes;

     (3)  Requiring an applicant to demonstrate measurable improvements in air service availability or affordability and requiring the Department of Transportation to establish guidelines to evaluate the extent of these improvements before awarding or renewing any subsidy;

     (4)  Clarifying and expanding the reporting requirements on the Molokai Air Carrier Subsidy Pilot Program;

     (5)  Requiring the Department of Transportation to conduct an annual audit of funds disbursed under the Molokai Air Carrier Subsidy Program and specifying that if an air carrier misuses funds, the carrier shall return the misused amount and is ineligible for further subsidies for a period of up to three years;

     (6)  Inserting a sunset date of June 30, 2028;

     (7)  Changing the effective date to July 1, 3000, to encourage further discussion; and

     (8)  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 Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1638, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1638, S.D. 2, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Transportation,

STAND. COM. REP. NO. 915

Honolulu, Hawaii

RE:    S.B. No. 1638

       S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 1638, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO AIR CARRIERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to facilitate the provision of air carrier services for the island of Molokai.

     Specifically, the measure:

     (1)  Establishes within the Department of Transportation the Molokai Air Carrier Subsidy Program to subsidize air carriers operating out of Molokai Airport; and

     (2)  Appropriates moneys for the program.

     Your Committee received written comments in support of this measure from a member of the Maui County Council; P & S Refrigeration, LLC; and numerous individuals.

     Your Committee received written comments on this measure from the Department of Transportation.

     Your Committee finds that for more than four years, only one passenger airline has provided service to the general public at Molokai Airport.  Your Committee believes that this measure will help offset the costs of providing air carrier services for the airport, which will also encourage other airlines to offer services for the island.

     Your Committee has amended this measure by designating the measure's appropriation to the Department of Transportation's administration division (TRN995) for the Molokai air carrier subsidy program.

     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. 1638, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1638, S.D. 2.

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

STAND. COM. REP. NO. 487

Honolulu, Hawaii

RE:    S.B. No. 1638

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1638 entitled:

"A BILL FOR AN ACT RELATING TO AIR CARRIERS,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish within the Department of Transportation the Molokai Air Carrier Subsidy Program to provide subsidies to airlines operating out of Molokai airport; and

     (2)  Appropriate funds.

     Your Committee received testimony in support of this measure from one member of the Maui County Council and three individuals.

     Your Committee received comments on this measure from the Department of Transportation.

     Your Committee finds that since January 2021, only one passenger airline has provided service to the general public out of Molokai Airport.  The cost of plane tickets remains a significant obstacle for many Molokai residents who need to travel to neighbor islands for essential reasons such as visiting family, attending medical appointments, and work obligations.  This measure will alleviate the burden on residents residing in rural communities who rely on air travel by incentivizing airlines to offset the cost of passenger tickets and encouraging other airlines to commence services at Molokai Airport. 

Accordingly, your Committee has amended this measure by:

     (1)  Inserting an effective date of July 1, 2050, to encourage further discussion; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1638, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1638, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,