STAND. COM. REP. NO. 248

Honolulu, Hawaii

RE: S.B. No. 1473

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Transportation and Culture and the Arts, to which was referred S.B. No. 1473 entitled:

"A BILL FOR AN ACT RELATING TO CENTRAL SERVICES ASSESSMENT,"

begs leave to report as follows:

The purpose and intent of this measure is to amend the transfer of funds for central service expenses from the State Highway Fund, Airport Revenue Fund, and Harbor Special Fund by:

(1) Limiting the deduction to five percent of all receipts and deposits in the fund, or $5 million, whichever is less; and

(2) Creating a process to deduct additional amounts based on the Consumer Price Index.

Your Committee received testimony in support of this measure from the Department of Transportation.

Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that the contributions made by the Department of Transportation (Department) to the Central Services Assessment (CSA) are larger than those made by other state departments. Your Committee further finds that limiting the base deductions to the CSA from each of the Department's modal programs would reduce the disparity between the Department's contributions to the CSA and those made by other state departments. Accordingly, this measure limits the deduction of all receipts and deposits in the fund.

Your Committee has amended this measure by:

(1) Inserting an effective date of July 1, 2050, to encourage further discussion; and

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

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 S.B. No. 1473, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1473, 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