STAND. COM. REP. NO. 302

Honolulu, Hawaii

RE: S.B. No. 23

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred S.B. No. 23 entitled:

"A BILL FOR AN ACT RELATING TO MOTOR VEHICLE RENTAL INDUSTRY,"

begs leave to report as follows:

The purpose and intent of this measure is to repeal vehicle license recovery fees.

Your Committee received testimony in support of this measure from the Department of Commerce and Consumer Affairs. Your Committee received testimony in opposition to this measure from the Department of Transportation, Avis Budget Group, and Enterprise Holdings.

Your Committee finds that vehicle license recovery fees impose an additional fee to lessees of rental vehicles. Allowing these one-time fees to be passed on to lessees is a departure from the statutory policy in favor of passing on only recurring government taxes and fees. Your Committee also finds that vehicle license recovery fees are an attempt by rental car companies to advertise low base rates but subtly increase the actual per day rental rate by greatly increasing the applicable taxes and fees passed on to lessees, which may be detrimental to the State's tourism industry.

Your Committee has amended this measure by inserting an effective date of January 1, 2050, to encourage further discussion.

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. 23, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 23, S.D. 1, and be referred to your Committees on Commerce and Consumer Protection and Ways and Means.

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

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CHRIS LEE, Chair