STAND. COM. REP. NO. 672

Honolulu, Hawaii

RE:    S.B. No. 1327

       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 S.B. No. 1327, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO PASSENGER FACILITY CHARGES,"

begs leave to report as follows:

     The purpose and intent of this measure is to allow for the assessment of a passenger facility charge for each overseas or international passenger boarding an aircraft at a state airport, as authorized by federal law.

     Your Committee received comments on this measure from the Tax Foundation of Hawaii.

     Your Committee finds that this measure maintains state law in conformance with federal law by eliminating the need to amend administrative rules each time the Federal Aviation Administration changes the maximum allowable rate of passenger facility charges for Hawaii.

     Your Committee has amended this measure by:

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

     (2)  Making technical, nonsubstantive amendments for the purposes of 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 S.B. No. 1327, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1327, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair