STAND. COM. REP. NO. 3131

Honolulu, Hawaii

RE: H.B. No. 2601

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2018

State of Hawaii

Sir:

Your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health, to which was referred H.B. No. 2601, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose and intent of this measure is to relieve traffic congestion in the State by establishing a supplemental daily rental motor vehicle user fee to fund highway capital projects that address capacity issues.

Your Committees received testimony in support of this measure from two Maui County councilmembers, Maui Metropolitan Planning Organization, and Kihei Community Association. Your Committees received testimony in opposition to this measure from the Department of the Attorney General, Hawai‘i Lodging and Tourism Association, Maui Hotel and Lodging Association, Enterprise Holdings, Avis Budget Group, and one individual. Your Committees received comments on this measure from the Department of Transportation and Department of Budget and Finance.

Your Committees find that Hawaii's traffic congestion is among the worst in the nation, worsening the quality of life for residents and visitors alike. Your Committees believe that improving capacity issues on the State's highways is an important component of any strategy to alleviate traffic congestion in the State.

Your Committees have amended this measure by:

(1) Deleting the supplemental rental motor vehicle user fee;

(2) Increasing the rental motor vehicle surcharge by $2 for lessees without a valid Hawaii driver's license, which shall be used for road capacity projects in the county the rental motor vehicle was operated;

(3) Increasing the tour vehicle surcharge by $1 for each category of tour vehicle;

(4) Inserting an effective date of January 1, 2019; and

(5) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

As affirmed by the records of votes of the members of your Committees on Transportation and Energy and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2601, H.D. 1, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2601, H.D. 1, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ LORRAINE R. INOUYE, Chair