STAND. COM. REP. NO. 954

Honolulu, Hawaii

, 2005

RE: H.B. No. 1645

H.D. 1

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Finance, to which was referred H.B. No. 1645 entitled:

"A BILL FOR AN ACT RELATING TO MASS TRANSIT,"

begs leave to report as follows:

The purpose of this bill is to begin the process of alleviating traffic congestion on Oahu through a mass transit system. Among other things, this bill:

(1) Establishes a Mass Transit Planning Account (Account) with a cap of $3,600,000 to be funded by a portion of the state gasoline tax;

(2) Requires the Director of Finance (Director) to transfer $600,000 from the Account to a highway fund account established for each county with a population greater than 500,000; and

(3) Requires the county to use, upon receipt from the Director, the $600,000 to develop and finalize a mass transit work plan that includes the use of a fixed guideway mass transit system; and

(4) Requires the Director to transfer the remaining $3,000,000 from the Account to the county to execute an environmental impact study and financial work plan, if the county council approves the mass transit work plan.

The Leeward Oahu Transportation Management Association testified in support of this bill. The City and County of Honolulu Department of Transportation Services and University of Hawaii Environmental Center supported the intent of this measure. The Department of Transportation opposed this bill. The Attorney General (AG), Department of Taxation, Tax Foundation of Hawaii, and Life of the Land provided comments.

Your Committee notes that the AG raised concerns regarding this bill. In particular, the bill references a "special account within the general fund," although moneys in the general fund are commingled and are not segregated, and suggested that a special fund be established instead. Additionally, the AG stated that an appropriation is needed to expend public moneys. Currently, this bill does not appropriate funds.

Accordingly, your Committee has amended this bill by:

(1) Changing the effective date to July 1, 2010, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for clarity and style.

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 H.B. No. 1645, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 1645, H.D. 1.

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

 

____________________________

DWIGHT TAKAMINE, Chair