STAND. COM. REP. NO.  1642-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 2816

      S.D. 1

      H.D. 2

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. 2816, S.D. 1, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INTRA-COUNTY FERRY SERVICE,"

begs leave to report as follows:

     The purpose of this bill is to provide transportation alternatives for the residents of Maui county by:

(1)  Requiring the Department of Land and Natural Resources (DLNR) to assign priority mooring space to intra-county ferries serving Maui county; and

(2)  Exempting fuel sold for use by an intra-county ferry service from the fuel tax.

     The Department of Taxation, DLNR, and the Tax Foundation of Hawaii provided comments. 

     Your Committee has amended this bill by:

(1)  Changing the effective date to upon its approval;

(2)  Providing that the Act shall apply to taxable years beginning after December 31, 2007; and

(3)  Making technical, nonsubstantive amendments for style, clarity, and consistency.

     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. 2816, S.D. 1, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2816, S.D. 1, H.D. 2.

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

____________________________

MARCUS R. OSHIRO, Chair