STAND. COM. REP. NO. 2114

Honolulu, Hawaii

RE:    S.B. No. 2996

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Transportation and Energy, to which was referred S.B. No. 2996 entitled:

"A BILL FOR AN ACT RELATING TO SPECIAL PURPOSE REVENUE BONDS,"

begs leave to report as follows:

     The purpose and intent of this measure is to authorize the issuance of special purpose revenue bonds to assist Bikeshare Hawaii develop a bikeshare system in the State.

     Your Committee received testimony in support of this measure from the Department of Business, Economic Development, and Tourism; Honolulu Department of Transportation Services; Blue Planet; Ulupono Initiative, Bikeshare Hawaii; PATH – Peoples Advocacy for Trails Hawaii; Hawaii Bicycling League; and five individuals.  Your Committee received comments on this measure from the Department of Health, Department of Budget and Finance, and Department of the Attorney General. 

     Your Committee finds that the State suffers from serious traffic congestion, limited road and parking resources, and over-reliance on imported fuel for transportation, and needs flexible and affordable transportation options.  Thus, the development of a bikeshare system in the State is in the public interest.

     In May 2012, the Hawaii Clean Energy Initiative's Transportation Vehicle Miles Traveled Reduction Working Group and the Department of Health identified the development of bikeshare as a key strategy for reducing vehicle miles traveled and achieving healthy outcomes.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for purposes of clarity and consistency.

     Your Committee notes the concerns of the Attorney General regarding whether Bikeshare Hawaii constitutes an industrial enterprise for purposes of eligibility to receive a special purpose revenue bond.  Your Committee defers to the Committee on Ways and Means on this issue.

     As affirmed by the record of votes of the members of your Committee on Transportation and Energy that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2996, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2996, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

LORRAINE R. INOUYE, Chair