STAND. COM. REP. NO. 3428

Honolulu, Hawaii

RE: H.B. No. 1688

H.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committees on Transportation and Government Operations, to which was referred H.B. No. 1688, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO REGISTRATION OF VEHICLES,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Subject U-drive motor vehicles to the same motor vehicle registration fees as other motor vehicles; and

(2) Authorize the counties to use certain motor vehicle registration fees to mitigate and address the impacts of tourism-related traffic congestion.

Your Committees received testimony in support of this measure from the County of Kaua‘i Office of the Mayor, County of Kaua‘i Department of Finance, Hawai‘i State Association of Counties, Maui Metropolitan Planning Organization, Hertz Corporation, Enterprise Holdings, one member of the Maui County Council, and one individual. Your Committees received testimony in opposition to this measure from one individual. Your Committees received comments on this measure from the Tax Foundation of Hawaii and the Maui Chamber of Commerce.

Your Committees find that U-drive motor vehicles should be classified in the same way as other vehicles regarding registration fees as they can affect highway usage expenses, be abandoned, and add to traffic congestion to the same degree as other motor vehicles. This measure standardizes the registration fees for motor vehicles including U-drive motor vehicles, and adds the mitigation of tourism-related traffic congestion as another way in which these collected fees may be spent.

As affirmed by the records of votes of the members of your Committees on Transportation and Government Operations that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1688, 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 Government Operations,

________________________________ SHARON MORIWAKI, Chair

________________________________ CHRIS LEE, Chair