STAND. COM. REP. NO. 3235

Honolulu, Hawaii

RE: H.B. No. 2673

H.D. 2

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred H.B. No. 2673, H.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO ROADS,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Permit the counties to use county surcharge revenues for maintenance of public roadways and private roadways that are open to the public; and

(2) Require the counties to use fuel taxes for reconstruction, improvement, repair, and maintenance of private roads that are open to the public.

Your Committee received testimony in support of this measure from one member of the Hawaiʻi County Council.

Your Committee received comments on this measure from the Tax Foundation of Hawaii.

Your Committee finds that while private roads are under the ownership of private persons, the use of the private roads are not exclusive to those private persons. For example, private roads are often heavily used by first responders to respond to emergencies and by school buses for the transportation of students to and from school. This measure will support the maintenance and upkeep of private roads that serve a public purpose by permitting the counties to use county surcharge and fuel tax revenues on these private roads.

Your Committee has amended this measure by:

(1) Clarifying that revenues collected by a county surcharge on state tax ordinance may be used for maintenance of public roadways by counties with a population of less five hundred thousand rather than each county;

(2) Adding language to extend the sunset date of the working group established by Act 200, Session Laws of Hawaii 2022, to June 30, 2025;

(3) Amending section 1 to reflect its amended purpose; and

(4) Making a technical, nonsubstantive amendment for the purposes of clarity and consistency.

Your Committee notes that the House Draft 2 of this measure contains an effective date of July 1, 2050 and respectfully requests that your Committee on Ways and Means verify the expenditure of funds in consideration of the amendments.

As affirmed by the record of votes of the members of your Committee on Transportation and Culture and the Arts that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2673, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2673, H.D. 2, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and Culture and the Arts,

________________________________

CHRIS LEE, Chair