STAND. COM. REP. NO.  471-08

Honolulu, Hawaii

                , 2008

RE:   H.B. No. 2952

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Sir:

     Your Committee on Economic Development & Business Concerns, to which was referred H.B. No. 2952 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this bill is to improve the U-drive services available to tourists and residents at Hawaii's airports by giving the Department of Transportation authority to establish and collect a car rental customer facility surcharge, to be used exclusively for the development of car rental customer shuttle systems and facilities at state airports.

     Catrala-Hawaii, Dollar Thrifty Automotive Group, and the Hertz Corporation supported this measure.  Enterprise Rent-A-Car, National Car Rental, and Alamo Rent-A-Car opposed this bill.  The Hawaii Insurers Council offered comments.

     Your Committee recognizes that having a consolidated rental car facility located within an airport would benefit both consumers and rental companies alike.  However, your Committee also recognizes the inherent unfairness of having Neighbor Island and community car rental companies collect a surcharge that will support a facility at the Honolulu International Airport.

     To encourage further discussion and resolution of these, and other issues, your Committee has amended this bill by changing its effective date to July 1, 2034.  Technical, nonsubstantive amendments were also made for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Economic Development & Business Concerns that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2952, as amended herein, and recommends that it be referred to the Committee on Finance in the form attached hereto as H.B. No. 2952, H.D. 1.

Respectfully submitted on behalf of the members of the Committee on Economic Development & Business Concerns,

____________________________

KYLE T. YAMASHITA, Chair