STAND. COM. REP. NO. 360

Honolulu, Hawaii

RE: S.B. No. 739

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 739 entitled:

"A BILL FOR AN ACT RELATING TO PARKING,"

begs leave to report as follows:

The purpose and intent of this measure is to require employers of fifty persons or more who provide a parking subsidy to employees to offer a parking cash-out program.

Your Committee received testimony in support of this measure from the Ulupono Initiative, Bikeshare Hawaii, and one individual. Your Committee received testimony in opposition to this measure from the Department of Health.

Your Committee finds that ground transportation in Hawaii uses roughly a third of the State's imported fossil fuels partly because many employers provide employees with parking subsidies which can encourage employees to drive to work. In order for the State to reduce its dependence on fossil fuels, the State needs to encourage people to drive less and incentivize using alternative forms of transportation. A parking cash-out program similar to the program adopted in California may be a good example for businesses in Hawaii to offer a cash allowance instead of parking subsidies to provide incentives for other, less toxic forms of transportation.

Your Committee notes the concern of mandating private business to offer a cash allowance in place of a parking subsidy and its potential impact on certain businesses. Your Committee encourages further discussion between the State and appropriate stakeholders regarding the potential impact of this measure.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 739 and recommends that it pass Second Reading and be referred to your Committee on Commerce, Consumer Protection, and Health.

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

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LORRAINE R. INOUYE, Chair