STAND. COM. REP. NO. 1144

Honolulu, Hawaii

RE:    H.B. No. 865

       H.D. 2

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B. No. 865, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO INSPECTION FEES,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the fee assessed for the inspection, quarantine, and eradication of invasive species contained in any freight.

     Specifically, the measure increases the fee on the net weight of imported freight from 50 cents to 75 cents for every one thousand pounds of freight, or part thereof, brought into the State.

     Your Committee received written comments in support of this measure from William J. Aila, Jr., Chairperson, Board of Land and Natural Resources; Hawaii Farm Bureau Federation; and The Nature Conservancy of Hawaii.

     Your Committee received comments in opposition to the measure from Mihoko E. Ito, on behalf of Air Transport Association.

     Your Committee received comments on this measure from Russell S. Kokubun, Chairperson, Board of Agriculture; Tax Foundation of Hawaii; and Paul Oshiro, Manager, Government Relations, Alexander & Baldwin, Inc.

     Your Committee finds that, currently, there are insufficient moneys in the general fund to cover the inspection requirements at Hawaii's air and sea ports necessary to prevent the importation of invasive species.  This measure provides an alternative source of funding to help prevent the spread of invasive species in the State.

     Your Committee has amended this measure by:

     (1)  Changing the effective date to take effect on approval; and

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

     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 H.B. No. 865, H.D. 2, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 865, H.D. 2, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair