STAND. COM. REP. NO.  1706-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2365

      S.D. 1

      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 Finance, to which was referred S.B. No. 2365, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this bill is to promote increased use of fuel-efficient hybrid vehicles by Hawaii residents by allowing hybrid vehicles to use a high occupancy vehicle lane; provided that the Director of Transportation, by rule, develops a means to identify hybrid vehicles.

     Your Committee provided a proposed H.D. 1 to the public prior to hearing this bill to receive feedback on the proposed H.D. 1. 

The Hertz Corporation, Dollar Thrifty Automotive Group, Inc., Avis Rent A Car, and Budget Rent A Car supported the proposed H.D. 1.  Enterprise Rent-A-Car Company of Hawaii, National Car Rental Company of Hawaii, and Alamo Rent-A-Car Company of Hawaii opposed the proposed H.D. 1.  The Department of Transportation (DOT), Catrala – Hawaii, and Tax Foundation of Hawaii submitted comments on the proposed H.D. 1.

Your Committee has amended this bill by replacing its contents with those of the proposed S.B. No. 2365, H.D. 1, with additional revisions, to provide a dedicated source of funding to improve car rental facilities at state airports by, among other things:

(1)  Allowing DOT to establish a rental motor vehicle customer facility charge (facility charge);

(2)  Establishing the Rental Motor Vehicle Customer Facility Charge Special Fund (Special Fund) into which all proceeds from the facility charges must be deposited and used for the enhancement, renovation, operation, maintenance, and development of rental motor vehicle customer facilities at state airports;

(3)  Setting the facility charge at $1 per day, or any portion of a day that a rental motor vehicle is rented or leased;

(4)  Providing that the facility charges will continue to be collected only until the sum of $25,000,000 is collected and deposited into the Special Fund;

(5)  Authorizing an appropriation of $7,000,000 out of the Special Fund for improvements, planning, and design of rental motor vehicle customer facilities at state airports;

(6)  Changing the effective date to July 1, 2020, to encourage further discussion; and

(7)  Making technical, nonsubstantive changes for clarity, consistency, 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 S.B. No. 2365, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2365, S.D. 1, H.D. 1, and be placed on the calendar for Third Reading.

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

____________________________

MARCUS R. OSHIRO, Chair