STAND. COM. REP. NO. 741

Honolulu, Hawaii

RE: S.B. No. 409

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 409, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO ELECTRIC VEHICLES,"

begs leave to report as follows:

The purpose and intent of this measure is to establish an annual vehicle registration surcharge fee for electric vehicles, plug-in hybrid electric vehicles, alternative fuel vehicles, and hybrid vehicles manufactured after 2018.

Your Committee received written comments in support of this measure from four individuals.

Your Committee received written comments in opposition to this measure from the Alliance of Automobile Manufacturers, Big Island EV Association, Ulupono Initiative, and three individuals.

Your Committee received written comments on this measure from the Tax Foundation of Hawaii; Hawaiian Electric Company, Inc.; and three individuals.

Your Committee finds that the surcharge imposed under this measure reflects a balanced approach to promoting the public's use of electric vehicles and other alternative fuel vehicles while ensuring an adequate source of revenue for highway maintenance.

Your Committee has amended this measure by:

(1) Deleting the restriction that the surcharge fee shall apply to vehicles manufactured after 2018; and

(2) Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 409, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 409, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair