STAND. COM. REP. NO. 2595

Honolulu, Hawaii

RE: S.B. No. 1011

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 Ways and Means, to which was referred S.B. No. 1011 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE REGISTRATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Increase the state motor vehicle registration fee; and

(2) Make an appropriation for the operations and maintenance of the state highway program.

Your Committees received testimony in support of this measure from the Department of Transportation. Your Committees received testimony in opposition to this measure from Ho‘omanapono Political Action Committee; Ho‘omana Pono, LLC; and one individual. Your Committees received comments on this measure from the Tax Foundation of Hawaii.

Your Committees find that the state motor vehicle registration fee is a major revenue source for the state highway fund, and that the state fuel tax is critical to the support and continued operations and maintenance of the state highway system. However, your Committees find that electric motor vehicles and hybrid motor vehicles have historically paid less than their fair share via the state fuel tax. Your Committees received testimony from the Department of Transportation recommending an increased annual registration fee for electric motor vehicles and hybrid motor vehicles to compensate for the minimal revenue generated from the fuel tax by these vehicles. The Department of Transportation noted that there are over seven thousand electric motor vehicles and hybrid motor vehicles in the State.

Your Committees have amended this measure by:

(1) Establishing an additional annual motor vehicle registration fee of $70 for electric motor vehicles and $35 for hybrid motor vehicles;

(2) Keeping the annual registration fee at $45, instead of increasing the fee to $75;

(3) Making this measure effective upon its approval; provided that the appropriation out of the state highway fund shall take effect on July 1, 2018;

(4) Adding a purpose section to explain the reasoning for the amount of the additional annual motor vehicle registration fee for electric motor vehicles and hybrid motor vehicles; 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 Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1011, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1011, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committees on Transportation and Energy and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ LORRAINE R. INOUYE, Chair