STAND. COM. REP. NO. 1329

Honolulu, Hawaii

RE: H.B. No. 394

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs, to which was referred H.B. No. 394, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HIGHWAY BEAUTIFICATION,"

beg leave to report as follows:

The purpose and intent of this measure is to make the motor vehicle registration fee and county ordinances that increase a motor vehicle registration fee for U-drive motor vehicles consistent with the fee for all other motor vehicles.

Your Committees received testimony in support of this measure from the Department of Transportation, City and County of Honolulu Department of Customer Services, Office of the Mayor of the County of Maui, and two members of the Maui County Council. Your Committees received comments on this measure from the Tax Foundation of Hawaii.

Your Committees find that Act 274, Session Laws of Hawaii 1999, first established a lower motor vehicle registration fee and prevented the counties from imposing an increased registration fee for U-drive motor vehicles, or more commonly known as rental cars. Your Committees believe that rental cars share the road alongside all other vehicles in the State and thus should contribute equally to highway beautification. This measure will provide equal requirements for all motor vehicles for purposes of a registration fee. It will also help to defray additional costs for the disposition of abandoned or derelict vehicles in the State.

As affirmed by the records of votes of the members of your Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 394, H.D. 1, and recommend that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Public Safety, Intergovernmental, and Military Affairs,

________________________________ CLARENCE K. NISHIHARA, Chair

________________________________ LORRAINE R. INOUYE, Chair