STAND. COM. REP. NO. 1032

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  H.B. No. 719
                                        H.D. 2
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Transportation and Intergovernmental
Affairs, to which was referred H.B. No. 719, H.D. 2, entitled: 

     "A BILL FOR AN ACT RELATING TO ABANDONED MOTOR VEHICLES,"

begs leave to report as follows:

     The purpose of this measure is to increase the allowable
county surcharge on motor vehicle registrations from $1 to $2.
The amounts collected are used for beautification of highways and
to defray the costs of disposing abandoned motor vehicles. 

     Testimony in support of this measure was received from the
Department of Health.  Testimony in opposition to this measure
was received from Catrala-Hawaii.

     Your Committee finds that increasing the motor vehicle
certificate of registration fee for this purpose will provide the
counties with the necessary resources to maintain highway
beautification and defray the costs associated with abandoned
motor vehicle disposal.  However, testimony received from
Catrala-Hawaii indicated that motor vehicle rental and leasing
businesses would be adversely affected by the surcharge
increases.

     Your Committee has amended this measure by replacing the
contents with language from the Senate version, Senate Bill
No. 686, S.D. 1.  The new language provides that the allowable
county surcharge for registering a U-drive motor vehicle shall

 
a                                                     HB719 SD1
                                   STAND. COM. REP. NO. 1032
                                   Page 2


remain at $1 and shall be increased to $3 for registering all
other motor vehicles.

     As affirmed by the record of votes of the members of your
Committee on Transportation and Intergovernmental Affairs that is
attached to this report, your Committee is in accord with the
intent and purpose of H.B. No. 719, H.D. 2, as amended herein,
and recommends that it pass Second Reading in the form attached
hereto as H.B. No. 719, H.D. 2, 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 Intergovernmental Affairs,



                                   ______________________________
                                   CAL KAWAMOTO, Chair

 
a                                                     HB719 SD1