STAND. COM. REP. NO. 913

Honolulu, Hawaii

RE: S.B. No. 1473

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 1473, S.D. 1, 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 address the deduction and transfer of funds for central service expenses from the state highway fund, airport revenue fund, and harbor special fund.

Specifically, this measure:

(1) Limits transfers to five per cent of all receipts and deposits in each fund, or $5,000,000, whichever is less; and

(2) Creates a process to adjust for additional amounts based on the Consumer Price Index.

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

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

Your Committee finds that the purpose of the central services assessment is to defray the cost of central government services. Your Committee further finds that while the concept in this measure attempts to equitably reduce the departmental contribution disparity for central services expenses, the five per cent deduction amount may be too high.

Your Committee has amended this measure by:

(1) Changing the statutory deduction from the state highway fund, airport revenue fund, and harbor special fund to 2.5 per cent; and

(2) Changing the deduction cap from $5,000,000 to an unspecified amount to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1473, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 1473, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair