STAND. COM. REP. NO. 344-04

Honolulu, Hawaii

, 2004

RE: H.B. No. 2523

 

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Transportation, to which was referred H.B. No. 2523 entitled:

"A BILL FOR AN ACT RELATING TO PASSENGER FACILITY CHARGES,"

begs leave to report as follows:

The purpose of this bill is to ensure that the State Passenger Facility Charge (PFC) Law is in compliance with the Federal PFC Law by clarifying that PFCs are exempt from transfers to pay for central service expenses. This bill also renames the "Passenger Facility Charge Revenue Fund" to "Passenger Facility Charge Special Fund".

The Department of Transportation and Airlines Committee of Hawaii testified in support of this bill.

In 2003, the Passenger Facility Charge Revenue Fund was established and the DOT was authorized to collect PFCs from enplaning overseas domestic and international passengers. Federal regulations regarding PFCs require that these funds only be used to finance approved projects. Your Committee finds that payment of central service expenses from this fund would be a violation of federal regulations and could result in the State being found in noncompliance, thus resulting in the termination of the PFC program and a future inability to receive Federal Airport Improvement Program grants.

 

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2523 and recommends that it pass Second Reading and be referred to the Committee on Finance.

 

Respectfully submitted on behalf of the members of the Committee on Transportation,

 

____________________________

JOSEPH M. SOUKI, Chair