Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Interisland Air Service topic
No spam. Unsubscribe anytime.
Committee advances interisland air-service bill despite AG warning about federal preemption
Summary
SB 3313, a bill to support an interisland air-service program, was advanced with amendments after the attorney general warned the Airline Deregulation Act could preempt aspects of the bill and DOTAX recommended delaying the taxable year to allow implementation.
The Committee on Transportation voted to advance SB 33-13, a bill proposing a Hawaii interisland air-service stability and transformation program administered by the Department of Taxation, after receiving legal and administrative cautions from the attorney general and DOTAX.
An attorney general representative told the committee that the federal Airline Deregulation Act (cited in testimony as U.S.C. section 41713) may preempt much of the bill's regulatory design, particularly any provisions that would seek to regulate routes or prices. That witness said parts of the bill could also face challenges under the Commerce Clause and privileges-and-immunities arguments if the state adopted in-state preferences.
Robert Abila of DOTAX reiterated written comments that the proposed program would be complicated to administer and recommended third-party certification and amending the effective/taxable year to allow more time for implementation. The chair recommended passing the bill with DOTAX's recommended amendment to delay the taxable year, and the committee adopted the recommendation.
Committee members said the bill will proceed to Ways and Means and Judiciary for additional review given the AG's legal concerns.
