STAND. COM. REP. NO. 2483

Honolulu, Hawaii

RE:    S.B. No. 2231

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2010

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred S.B. No. 2231 entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC VEHICLES,"

begs leave to report as follows:

     The purpose of this measure is to encourage the deployment of electric vehicles in the State.

     Specifically, this measure exempts from the general excise tax electric vehicles and electric charging systems purchased or placed in service after July 1, 2010, to before January 1, 2020.

     Your Committee received comments from the Hawaiian Electric Company, Inc. and the Tax Foundation of Hawaii.  Written comments may be viewed on the Legislature's website.

     Your Committee finds that this measure will contribute to reducing the impact on Hawaii of oil price volatility, provide a measure of energy security, provide economic diversification, reduce air pollution, and stimulate Hawaii's economy.

     Upon further consideration, your Committee has amended this measure by delaying the start date of the general excise tax exemption from July 1, 2010, to July 1, 2015, and by changing the effective date of the bill itself to July 1, 2015.  Your Committee also made technical nonsubstantive amendments for the purposes of clarity 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. 2231, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2231, S.D. 1.

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

____________________________

DONNA MERCADO KIM, Chair