STAND. COM. REP. NO.  434-14

Honolulu, Hawaii

                , 2014

RE:   H.B. No. 1894

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Sir:

     Your Committee on Transportation, to which was referred H.B. No. 1894 entitled:

"A BILL FOR AN ACT RELATING TO A CAR-SHARING VEHICLE SURCHARGE TAX,"

begs leave to report as follows:

The purpose of this measure is to enable the operation of car-sharing organizations which represent a green transportation innovation that can significantly reduce miles traveled, oil imports, greenhouse gas emissions, and household transportation costs in the State by creating a car-sharing vehicle surcharge tax.

The City and County of Honolulu Department of Planning and Permitting; City and County of Honolulu Department of Transportation Services; Sierra Club of Hawaii; Blue Planet Foundation; Car2Go; Pacific Resource Partnership; and several individuals testified in support of this measure.  EAN Holdings, LLC; Apollo Kauai; and an individual testified in opposition to this measure.  The Department of Transportation; Office of Planning; Department of Taxation; Hawaii Energy Policy Forum at the University of Hawaii at Manoa; Tax Foundation of Hawaii; and Ulupono Initiative commented on this measure.

     Your Committee has amended this measure by:

     (1)  Removing the requirement that a car-sharing organization conduct at least 60 percent of its business with Hawaii residents; and

     (2)  Specifying that the car-sharing vehicle surcharge tax shall be levied, assessed, and collected on a per-day rate for each vehicle available.

     Should your Committee on Finance deliberate on this measure, your Committee respectfully requests that your Committee on Finance determine the appropriate daily car-sharing vehicle surcharge tax rate amount.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1894, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1894, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

RYAN I. YAMANE, Chair