STAND. COM. REP. NO. 2607

Honolulu, Hawaii

RE: S.B. No. 3022

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2024

State of Hawaii

Sir:

Your Committees on Transportation and Culture and the Arts and Commerce and Consumer Protection, to which was referred S.B. No. 3022 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish a ridesharing fee; and

(2) Deposit fees collected into the State Highway Fund.

Your Committees received testimony in support of this measure from the Department of Transportation, Oahu Metropolitan Planning Organization, Ulupono Initiative, and one individual.

Your Committees received testimony in opposition of this measure from AllWays Charley's Taxi and one individual.

Your Committees received comments on this measure from the Department of Taxation, Tax Foundation of Hawaii, and Uber Technologies.

Your Committees find that over the past five years, the rideshare industry has experienced substantial growth nationally and in Hawaii, transforming the way people commute and navigate. Your Committees recognize that Hawaii has the potential to create a self-sustaining model where those benefiting the most from rideshare services contribute directly to the maintenance and enhancement of the transportation infrastructure they utilize. This measure outlines an effective approach to address the challenges posed by the proliferation of rideshare services by implementing a fee to be utilized for infrastructure enhancements.

Your Committees have amended this measure by:

(1) Replacing the term "rideshare" with the term "transportation network companies";

(2) Inserting an unspecified fee amount;

(3) Deleting language that would have deposited collected taxes into the State Highway Fund;

(4) Adding language to clarify that collected taxes shall be deposited into the Safe Routes to School Program Special Fund;

(5) Inserting an effective date of January 1, 2050, to encourage further discussion;

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

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

As affirmed by the records of votes of the members of your Committees on Transportation and Culture and the Arts and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3022, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3022, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Transportation and Culture and the Arts and Commerce and Consumer Protection,

________________________________ JARRETT KEOHOKALOLE, Chair

________________________________ CHRIS LEE, Chair