STAND. COM. REP. NO. 2516

Honolulu, Hawaii

RE: S.B. No. 3121

S.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 Human Services and Transportation, to which was referred S.B. No. 3121 entitled:

"A BILL FOR AN ACT RELATING TO FUNDING FOR PARKING FOR DISABLED PERSONS,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish an Accessible Parking Special Account within the Disability and Communication Access Board Special Fund;

(2) Increase the state annual vehicle registration fee by $1 and require the $1 to be deposited into the Accessible Parking Special Account; and

(3) Require all costs associated with the statewide Parking for Persons with Disabilities Program to be appropriated from the Accessible Parking Special Account beginning July 1, 2022.

Your Committees received testimony in support of this measure from the Disability and Communication Access Board 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.

Your Committees find that the Parking for Persons with Disability Program is a federally required program administered by the Disability and Communication Access Board that issues first-time, temporary, and replacement placards to persons with a disability. Your Committees further find that the Parking for Persons with Disability Program is currently funded entirely by general funds. Therefore, its funding was severely impacted by the significant decline in the State's general revenues due to the disruptions caused by the coronavirus disease 2019 pandemic. This measure will allow the Parking for Persons with Disability Program to become self-sufficient and ensure that it is unaffected by future economic conditions.

Your Committees note the testimony of the Disability and Communication Access Board requesting that the date on which all costs associated with the Parking for Persons with Disabilities Program shall begin to be appropriated from the Accessible Parking Special Account to be changed from July 1, 2022, to July 1, 2023.

Accordingly, your Committees have amended this measure by:

(1) Changing the date on which all costs associated with the Parking for Persons with Disabilities Program shall begin to be appropriated from the Accessible Parking Special Account from July 1, 2022, to July 1, 2023; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committees also note the testimony of the Tax Foundation of Hawaii, stating that repeal of special funds enhances transparency and accountability in the budgeting process, and raising concerns that creating a special account within a special fund adds to the complexity of accounting for state funds. Your Committees find that this issue raises concerns that merits further consideration and respectfully request that your Committee on Ways and Means further examine the matter.

As affirmed by the records of votes of the members of your Committees on Human Services and Transportation that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3121, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3121, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Transportation,

________________________________ CHRIS LEE, Chair

________________________________ JOY A. SAN BUENAVENTURA, Chair