Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2005

State of Hawaii

Sir:

Your Committee on Transportation and Government Operations, to which was referred S.B. No. 1040 entitled:

begs leave to report as follows:

The purpose of this measure is to allow a lessor of rental vehicles the option of registering a new motor vehicle for two years instead of one, and if the vehicle is transferred by the lessor within two years, to take a credit on the registration against future registrations.

Your Committee received testimony in support of this measure from Catrala. Testimony in opposition was received from the Honolulu Department of Customer Services.

Your Committee recognizes that this measure would ease the burden on the motor vehicle rental industry to re-register a new vehicle at the end of the first year of registration when those vehicles remain in service for about two years. However, testimony of the City and County of Honolulu indicates that this measure would require a major rewrite of their current computer system for motor vehicles. The additional costs of equipment would be about $105,000 and of hiring a consultant would be about $250,000. Therefore, your Committee is not satisfied at this time that this measure is feasible from a practical and financial standpoint.

Your Committee has amended this measure to insert an effective date of July 1, 2050, to continue discussions and consideration on a feasible plan of implementation.

As affirmed by the record of votes of the members of your Committee on Transportation and Government Operations that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1040, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1040, S.D. 1, and be referred to the Committee on Ways and Means.