STAND. COM. REP. NO. 2670

Honolulu, Hawaii

RE:    S.B. No. 2946

       S.D. 2

Honorable Shan S. Tsutsui

President of the Senate

Twenty-Sixth State Legislature

Regular Session of 2012

State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred S.B. No. 2946, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Extend the temporary increase in the rental motor vehicle surcharge tax to $7.50 per day, and the deposit of $4.50 per day of the tax revenue into the general fund, until June 30, 2013; and

     (2)  Extend the suspension of rental motor vehicle customer facility charges until June 30, 2013.

     Your Committee received comments on this measure from EAN Holdings, LLC.

     Your Committee finds that although the rental motor vehicle surcharge tax was created to provide a funding source for construction of consolidated car rental facilities at airports throughout the State, a portion of the surcharge revenues needed to be diverted in 2011 to help mitigate the adverse effects of the significant budget shortfall experienced by the State.  While the State's economy is showing signs of recovery, the diversion of surcharge revenues remains necessary in order to, among other things, offset the general fund cost to recapitalize the emergency and budget reserve and hurricane relief funds, because those funds' balances were also used in 2011 to help address the State's budgetary needs.

     Your Committee has amended this measure by:

     (1)  Extending, until June 30, 2015:  the increase in the rental motor vehicle surcharge tax to $7.50 per day, the deposit of $4.50 per day of the tax revenue into the general fund, and the suspension of rental vehicle motor vehicle customer facility charges; and

     (2)  Changing the revenue bond appropriation amount from $50,000,000 to $500,000,000 and making the section authorizing the bond authorization take effect on July 1, 2012.

     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. 2946, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2946, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair