STAND. COM. REP. NO.  1165-08

Honolulu, Hawaii

                , 2008

RE:   S.B. No. 3119

      S.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 Transportation, to which was referred S.B. No. 3119, S.D. 2, entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF TRANSPORTATION FOR THE STATE HIGHWAY SYSTEM,"

begs leave to report as follows:

     The purpose of this bill is to make an emergency appropriation of $21,253,032 in additional State Highway Fund (Fund) moneys for fiscal year 2007-2008 for the Department of Transportation (DOT) to use for the state highway system.

     DOT, the General Contractors Association of Hawaii, Hawaii Transportation Association, and Hawaii Building and Construction Trades Council, AFL-CIO, testified in support of this measure.

     Pursuant to the requirements set forth in Article VII, Section 9, of the Hawaii Constitution, the Governor, in her Governor's Message No. 243 to the Legislature, requested immediate consideration and passage of this bill by the Legislature citing an existing critical funding shortage.

     Your Committee finds that by extending the rental motor vehicle surcharge tax and increasing the fuel tax on gasoline and diesel oil by $0.01 per gallon during the Regular Session of 2007, approximately $21,200,000 in additional revenues was deposited into the Fund.  However, DOT was not authorized to spend these additional revenues.  The expenditure of these revenues is necessary to ensure continued maintenance and operation of the state highway system, a key factor in the standard of living of all of Hawaii's residents.

     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 S.B. No. 3119, S.D. 2, 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