STAND. COM. REP. NO. 636

Honolulu, Hawaii

RE:    S.B. No. 1328

       S.D. 1

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. 1328 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE REGISTRATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to better construct, operate, and maintain the state highway system by increasing the annual motor vehicle registration fee from $25 to $45 and increasing the amount of the fee to be deposited into the State Highway Fund.

     Your Committee received comments in opposition to this measure from Gareth Sakakida, Managing Director, Hawaii Transportation Association; and Douglas Meller.

     Your Committee received comments on this measure from Gail Y. Haraguchi, Director, Department of Consumer Services, City and County of Honolulu; and the Tax Foundation of Hawaii.

     Your Committee finds that while the State has increased the number of lane miles of the state highway system, the budget has not been increased concurrently to cover the associated costs.  This measure is necessary to properly maintain the State highway system.

     Your Committee has amended this measure by:

     (1)  Changing the annual vehicle registration fee and the amount of the fee deposited into the State Highway Fund to unspecified amounts;

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

     (3)  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. 1328, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1328, S.D. 1.

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

____________________________

DAVID Y. IGE, Chair