STAND. COM. REP. NO. 720

Honolulu, Hawaii

RE:    S.B. No. 1611

       S.D. 2

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 1611, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HIGHWAYS,"

begs leave to report as follows:

     The purpose of this measure is to provide revenue for highway modernization projects.

     Specifically, the measure:

(1)  Increases the state liquid fuel tax, state vehicle registration fee, state vehicle weight fee, and rental motor vehicle surcharge tax;

(2)  Creates the land transportation modernization special fund;

(3)  Provides funding for a six-year comprehensive modernization program;

(4)  Authorizes the implementation of one or more pilot programs to test alternatives to current state and county system of motor vehicle fuel taxes; and

(5)  Requires the Department of Transportation to implement the vehicle miles traveled pilot program.

     Your Committee received eight written comments on this measure.  The written comments may be reviewed on the Legislature's website.

     Your Committee finds that this measure will allow the Department of Transportation to fulfill its critical infrastructure responsibilities by providing it with the necessary resources to meet its increasingly challenging program needs.

     Your Committee has amended this measure by:

(1)  Changing all amounts of increases in fees and taxes and all appropriation amounts to unspecified amounts;

(2)  Changing the effective date to July 1, 2050, to facilitate further discussion; and

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

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1611, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1611, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DONNA MERCADO KIM, Chair