STAND. COM. REP. NO. 2151

Honolulu, Hawaii

RE:    S.B. No. 2916

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Transportation and International Affairs, to which was referred S.B. No. 2916 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this measure is to:

     (1)  Establish a Car Rental Customer Facility Charge Special Fund (Fund) to be used for enhancement, renovation, operation and maintenance of existing rental car customer facilities, and the development of car rental customer facilities at state airports; and

     (2)  Authorize the Department of Transportation to establish, by rule, car rental customer facility charges for deposit in the Fund.

     Testimony in support of this measure was received from Catrala Hawaii, Avis and Budget Rent A Car, and The Hertz Corporation.  Alamo Rent A Car and National Car Rental Hawaii, and Enterprise Rent‑A-Car Company of Hawaii testified in opposition.

     Your Committee finds that while various airport improvement projects are planned statewide, better u-drive facilities are not part of the current planning cycle due to a lack of funding.  The Department of Transportation collects approximately $40,000,000 annually in concession fees from the u-drive industry, and the industry is concerned that if new facilities are not part of the comprehensive plans for airports, once they are included, the most appropriate sites for these facilities may no longer be available.

     Your Committee understands the concerns raised by some members of the u-drive industry, in particular that this measure does not specify locations and project designs, or a financing plan.

     Your Committee finds these points to be well taken, but believes that the Legislature, the Department of Transportation, and the u-drive industry must begin the process of planning for these much-needed facilities, and that the specifics will follow.

     Your Committee has amended this measure by making technical amendments to insert language missing from current statutes and to conform to the preferred drafting style.

     As affirmed by the record of votes of the members of your Committee on Transportation and International Affairs that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2916, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2916, S.D. 1, and be referred to the Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Transportation and International Affairs,

____________________________

J. KALANI ENGLISH, Chair