STAND. COM. REP. NO.  661

Honolulu, Hawaii

                , 2011

RE:   H.B. No. 1626

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Sixth State Legislature

Regular Session of 2011

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 1626 entitled:

"A BILL FOR AN ACT RELATING TO FUEL TAXES,"

begs leave to report as follows:

     The purpose of this bill is to ensure the proper improvement and maintenance of roadways by permitting the County of Hawaii to appropriate the County's share of fuel tax revenue for a grant-in-aid program for the maintenance of private roads maintained by nonprofit maintenance corporations.

     The Board of Directors of the Hawaiian Paradise Park Owners Association, Volcano Community Association, Friends of Puna's Future, Council Chair and two Councilmembers of the Hawaii County Council, and several concerned individuals supported this bill.  A concerned individual opposed this measure.  The Tax Foundation of Hawaii and Hawaiian Shores Community Association & Pakaka Road Association provided comments.

     Your Committee has amended this bill by:

     (1)  Removing language authorizing the County of Hawaii to establish a grant-in-aid program, in favor of language that authorizes the County to expend the County's share of fuel tax revenue for the maintenance of substandard private subdivision roads used by the public;

     (2)  Inserting a sunset date of June 30, 2016;

     (3)  Changing its effective date to July 1, 2030, to encourage further discussion; and

     (4)  Making technical, nonsubstantive amendments for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1626, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1626, H.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Finance,

____________________________

MARCUS R. OSHIRO, Chair