Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations and Intergovernmental Affairs, to which was referred H.B. No. 1645, H.D. 1, entitled:

beg leave to report as follows:

The purpose of this measure is to create a mass transit planning account to hold a portion of the fuel taxes to fund the development of a mass transit work plan including a fixed guideway mass transit system.

Your Committees received testimony in support of this measure from the Environmental Center of the University of Hawaii and Leeward Oahu Transportation Management Association. Testimony in opposition was received from the Department of Transportation, Department of Taxation, Attorney General, Institute of Real Estate Management, and one individual. Comments were received from Life of the Land and Tax Foundation of Hawaii.

The intent of your Committees is to provide a means by which counties can begin the process of planning for mass transit systems, including light rail transit. The upfront costs of planning, including environmental impact statements, could be a prohibitive factor for counties to initiate mass transit planning.

Your Committees note the testimony of the Attorney General of legal and constitutional concerns regarding this measure. Your Committees requests the Committee on Ways and Means to follow up on these concerns with the Attorney General.

Your Committees have amended this measure by changing the effective date to July 1, 2020.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1645, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1645, H.D. 1, S.D. 1, and be referred to the Committee on Ways and Means.