STAND. COM. REP. NO.  61-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2491

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 2491 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this bill is to address new methods of transportation development, while protecting the public interest, by declaring, as state policy, certain best practices to which the Governor and Department of Transportation (DOT) must adhere in any public-private transportation partnership agreement.

     The Hawaii Government Employees Association, Hawaii Transportation Association, and Mililani/Waipio/Melemanu Neighborhood Board No. 25 testified in support of this bill.  DOT supported the intent of this measure.

     Many states, including Hawaii, find themselves facing a growing national trend toward privately financing transportation improvements and the development of new transportation facilities.  While the cost of improving the nation's highway infrastructure has risen over the years, moneys in the Federal Highway Trust Fund, upon which states, including Hawaii, depend to fund numerous road projects, has not kept pace.  This has placed a serious strain on highway maintenance, improvement, and development plans across the country causing many communities to look at other means of financing these projects, including public-private partnerships and the establishment of transportation tolling facilities.

     While the State has made efforts to look at other methods of financing highway infrastructure construction and improvements, including the establishment of toll roads, your Committee finds that the State should examine what this change in public policy would mean for Hawaii should the State decide to commit to this approach.  Accordingly, the establishment and declaration of the State's policy for public-private transportation partnerships including tolling facilities would be a prudent approach and an approach that will protect the public's interest in these matters.

     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 H.B. No. 2491 and recommends that it pass Second Reading and be referred to the Committee on Finance.

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

____________________________

JOSEPH M. SOUKI, Chair