The bill updates Section 102-10 of the Hawaii Revised Statutes, allowing for modifications to concession contracts when certain criteria are met, including a reduction in business volume or impending significant hardships. By granting authority to the Department of Transportation to adjust terms, such as contract duration and rental agreements, the legislation seeks to ensure that concessionaires can recover from financial losses without being penalized for circumstances beyond their control. Additionally, it emphasizes the need for fair treatment among different concessionaires, thus avoiding favoritism in relief measures.
House Bill 1094 addresses significant hardships faced by airport concessions in Hawaii, particularly as a result of the COVID-19 pandemic. The bill recognizes the crucial role these concessions play in supporting public airports, as they provide a substantial portion of the necessary operating revenues. In light of the unprecedented downturn in tourism, which is not expected to return to pre-pandemic levels for several years, the bill aims to give the Department of Transportation the discretion and flexibility needed to provide timely assistance to struggling concessionaires. This flexibility is intended to help maintain operations and prepare for the gradual return of passengers to the airports.
Despite the supportive nature of HB 1094, there are potential points of contention regarding the broad discretionary powers it bestows upon the Department of Transportation. Critics may argue that such flexibility might lead to unequal treatment of concessions and could inadvertently prioritize certain businesses over others, particularly if the definitions of significant hardship are applied subjectively. Furthermore, the act does not mandate specific relief actions, leading to concerns about the consistency and transparency of decisions made by the department in times of crisis.