STAND. COM. REP. NO. 18

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 37

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

 

Madam:

 

     Your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs, to which was referred S.B. No. 37 entitled:

 

"A BILL FOR AN ACT RELATING TO INTRA-COUNTY FERRY SERVICE,"

 

beg leave to report as follows:

 

     The purpose of this measure is to provide an alternate ferry route from Lana‘i to Ma‘alaea Harbor.

 

     Specifically, this measure provides:

 

     (1)  Priority assignment of mooring space for a ferry route from Ma‘alaea Harbor to Lahaina;

 

     (2)  An exemption from the imposition of the general excise tax for the proceeds from the sale of liquid fuels consumed in the operation of certain intra-county ferry services; and

 

     (3)  An exemption from the fuel tax for fuel purchases for certain intra-county ferry services.

 

     One state agency and one organization provided comments.  Testimony in opposition was submitted by one state agency.

 

     West Maui residents are served by only one two-lane highway and one small airport.  The residents of the island of Lana‘i have only one affordable and frequent means of transport to Maui, which is the intra-county ferry from Lana‘i to Lahaina.  A more convenient route for Lana‘i travelers would be to dock in Ma‘alaea.

 

     Your Committees find that an alternative ferry route from Lana‘i to Ma‘alaea Harbor will also benefit West Maui residents by easing congestion in and around Lahaina and its small boat harbor.  The alternate route to Ma‘alaea will also facilitate emergency ferry operations out of Lahaina if the highway in West Maui is closed for some reason.

 

     Your Committees understand that certain provisions of this measure were adopted in Act 57, Session Laws of Hawaii 2008, however, the exemption of the sale of liquid fuel from the general excise tax provides a critical element for the support of the intra-island ferry operations.

 

     Your Committees have amended this measure by making technical, nonsubstantive changes for the purposes of consistency and style.

 

     As affirmed by the records of votes of the members of your Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 37, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 37, S.D. 1, and be referred to the Committee on Ways and Means.

 

Respectfully submitted on behalf of the members of the Committees on Water, Land, Agriculture, and Hawaiian Affairs and Transportation, International and Intergovernmental Affairs,

 

____________________________

J. KALANI ENGLISH, Chair

 

____________________________

CLAYTON HEE, Chair