STAND. COM. REP. NO. 24

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 686
                                        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 S.B. No. 686 entitled: 

     "A BILL FOR AN ACT RELATING TO VEHICLE HIGHWAY
     BEAUTIFICATION FEE,"

begs leave to report as follows:

     The purpose of this measure is to increase the allowable
motor vehicle certificate of registration fee that is imposed and
used by the counties for highway beautification and abandoned
vehicle disposal from $1 to $2.

     Testimony in support of this measure was received from the
Department of Parks and Recreation of the City and County of
Honolulu, Kauai County Council, and Na Leo Pahi.  The Office of
the Mayor for Kauai County and a Kauai County Council member
submitted testimony in support of the intent of this measure with
suggested amendments.  Oral testimony in support of this measure
was received from the Department of Customer Services of the City
and County of Honolulu.  

     Testimony in opposition to this measure was received from
Catrala-Hawaii.

     Your Committee finds that by increasing the motor vehicle
certificate of registration fee, the respective county agencies
responsible for highway beautification and abandoned vehicle
disposal will be provided with the necessary resources to
maintain highway beautification efforts and defray the increasing

 
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                                   STAND. COM. REP. NO. 24
                                   Page 2


costs associated with abandoned vehicle disposal.  However,
testimony received from Catrala-Hawaii indicated that motor
vehicle rental and leasing businesses would be adversely affected
by this measure because it would increase their costs to do
business.

     Your Committee has amended this measure by increasing the
amended fee increase from $2 to $3 and exempting U-drive motor
vehicles from the fee increase provided in this measure.

     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 S.B. No. 686, as amended herein, and
recommends that it pass Second Reading in the form attached
hereto as S.B. No. 686, 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

 
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