STAND. COM. REP. NO. 360

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 32

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committee on Energy and Environment, to which was referred S.B. No. 32 entitled:

 

"A BILL FOR AN ACT RELATING TO FUEL,"

 

begs leave to report as follows:

 

     The purpose of this measure is to repeal the sunset date of the general excise tax exemption on gross income or proceeds from the sale of alcohol fuels.

 

     Comments were submitted by one private organization.  Testimony in opposition to this measure was submitted by one state department.  Written testimony presented to your Committee may be reviewed on the Legislature's website.

 

     Your Committee finds that Hawaii drivers typically pay high fuel prices and a general excise tax upon alcohol fuels only serves to make those prices higher.  However, while the added cost of the general excise tax would increase the cost of gasoline, it may also help the public to make the shift away from the consumption of fossil fuel to "greener" alternatives.

 

     Your Committee finds that the competing concerns regarding this issue merit further consideration.  Accordingly, your Committee has amended this measure by inserting an effective date of July 1, 2050 to ensure ongoing discussions on this very important issue.

 

     As affirmed by the record of votes of the members of your Committee on Energy and Environment that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 32, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 32, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committee on Energy and Environment,

 

 

 

____________________________

MIKE GABBARD, Chair