Bill Text: HI HB1161 | 2025 | Regular Session | Amended
Bill Title: Relating To Transportation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed) 2025-02-28 - Passed Third Reading with none voting aye with reservations; Representative(s) Alcos, Garcia, Muraoka, Reyes Oda voting no (4) and Representative(s) Cochran, Pierick, Templo, Ward excused (4). Transmitted to Senate. [HB1161 Detail]
Download: Hawaii-2025-HB1161-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1161 |
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THIRTY-THIRD LEGISLATURE, 2025 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO TRANSPORTATION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that in addition to the state fuel tax, counties rely on their own motor fuel tax to fund the maintenance and repair of county roads and bridges. Like the state fuel tax, the county fuel tax is also declining, leaving counties with less revenue to maintain their roads and bridges. The legislature now finds that counties may wish to begin transitioning to a mileage-based road usage charge as a fair and sustainable replacement for the county motor fuel tax. The legislature finds that permitting counties to do this will result in lower administrative costs for the state and county agencies tasked with implementing the road usage charge and create more efficiency and simplicity for the traveling public as the State begins transitioning to a fair and sustainable source of transportation funding.
The
legislature also finds that plug-in hybrid electric vehicles, which operate
with minimal fuel consumption, should be transitioned to the per-mile road
usage charge sooner than 2033.
The purpose of this Act is to:
(1) Authorize a county to impose a mileage-based road usage charge for electric vehicles and plug-in hybrid electric vehicles beginning July 1, 2028;
(2) Repeal the requirement for the department of transportation to establish county subaccounts within the state highway fund;
(3) Clarify the disposition of funds for the state mileage-based road usage charge;
(4) Beginning July 1, 2026, extend the state mileage-based road-usage charge to plug-in hybrid electric vehicles;
(5) Clarify the rate and calculation of the state mileage-based road usage charge;
(6) Specify that rental motor vehicle companies may visibly pass the costs of the mileage-based road usage charges to the consumer; and
(7) Appropriate funds.
SECTION 2. Chapter 249, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows:
"§249-A County mileage-based road usage charge;
established. (a) Beginning July 1, 2028, in
addition to all other fees and taxes levied by this chapter, a county may
impose a county mileage-based road usage charge on electric vehicles and
plug-in hybrid electric vehicles.
(b) The county mileage-based road usage charge
shall be calculated by the director of finance at the rate established under
section 249-B, multiplied by the number of miles traveled, less the estimated
amount of paid county fuel taxes that correspond with the number of miles
traveled, as shall be determined by rule.
The number of miles traveled shall be calculated as the difference
between the electric vehicle's or plug-in hybrid electric vehicle's two most
recent odometer readings, as noted on the vehicle's certificate of inspection
issued pursuant to section 286-26(e).
(c) If a county establishes a mileage-based road
usage charge pursuant to section 249-B, for the first registration renewal of
new electric vehicles or new plug-in hybrid electric vehicles for which no
certificate of inspection is required, the county mileage-based road usage
charge assessed shall be $50, which shall be subtracted from the calculation of
the county mileage-based road usage charge upon that vehicle's second
registration renewal.
(d) The county mileage-based road usage charge
shall be paid each year following the electric vehicle's or plug-in hybrid
electric vehicle's most recent inspection together with all other taxes and
fees levied by this chapter on a staggered basis as established by each county
as authorized by section 286-51 to ensure that the county mileage-based road
usage charge is due and payable at the same time and shall be collected
together with the county registration fee. The county mileage-based road usage charge
shall be deemed delinquent if not paid with the county registration fee.
(e) Notwithstanding subsection (a), all electric
vehicles and plug-in hybrid electric vehicles registered in the State that
qualify for an exemption under sections
249-4, 249-5.5, 249-6, and 249-6.5 shall be exempt from this section.
(f) Each county may adopt rules pursuant to
chapter 91 for establishing and administering the county mileage-based road
usage charge.
(g) For the purposes of this section:
"Electric vehicle" has the
same meaning as in section 249-36.
"Plug-in hybrid electric vehicle"
has the same meaning as in section 249-36.
§249-B County mileage-based road usage charge;
rate; establishment. (a) Each county shall establish the rate to be
used to calculate the amount of that county's mileage-based road usage charge
in the manner provided for by ordinances involving the expenditure of public
funds; provided that until such rate is established, the county mileage-based
road usage charge for that county shall be zero.
(b) No ordinance establishing the rate for a
county mileage-based road usage charge shall be adopted until a public hearing
on the proposed rate for the county mileage-based road usage charge has been
held. Public notice of the hearing shall
be given at least twice within the thirty-day period immediately preceding the
date of the hearing. The rate for the
county mileage-based road usage charge shall take effect on the first day of
the second month following the adoption of an ordinance establishing a county
mileage-based road usage charge.
(c) Each county may establish a per mile rate for
a county mileage-based road usage charge that is:
(1) One or more cents, a fraction of a
cent, or both; or
(2) Zero.
(d)
If a county mileage-based road usage charge cannot be calculated because
of missing, incomplete, or incorrect odometer reading information, a vehicle
subject to the county mileage‑based road usage charge shall be subject to
a default county mileage-based road usage charge as established by the county.
§249-C County mileage-based road usage charge; dispositions. The county mileage-based road usage charge for each county shall be collected by the respective county and deposited into the respective county highway fund established pursuant to section 249-18; provided that amounts collected in the county of Maui on vehicle miles traveled on the island of Lanai shall be used solely for expenditures on the island of Lanai; provided further that the amounts collected in the county of Maui on vehicle miles traveled on the island of Molokai shall be used solely for expenditures on the island of Molokai."
SECTION 3. Section 248-9, Hawaii Revised Statutes, is amended to read as follows:
"§248-9 State highway fund. (a) Moneys in the state highway fund may be expended for the following purposes:
(1) To pay the costs of operation, maintenance, and repair of the state highway system, including without limitation, the cost of equipment and general administrative overhead;
(2) To pay the costs of acquisition, including real property and interests therein; planning; designing; construction; and reconstruction of the state highway system and bikeways, including without limitation, the cost of equipment and general administrative overhead;
(3) To reimburse the general fund for interest on and principal of general obligation bonds issued to finance highway projects where the bonds are designated to be reimbursable out of the state highway fund;
(4) To pay the costs of construction, maintenance, and repair of county roads; provided that none of the funds expended on a county road or program shall be federal funds when expenditure would cause a violation of federal law or a federal grant agreement; and
(5) To pay the costs of establishing and maintaining a drug and alcohol toxicology testing laboratory that is intended to support the prosecution of offenses relating to operation of a motor vehicle while under the influence of an intoxicant.
(b) At any time, the director of transportation may transfer from the state highway fund all or any portion of available moneys determined by the director of transportation to exceed one hundred thirty-five per cent of the requirements for the ensuing twelve months for the state highway fund as permitted by and in accordance with section 37-53. For purposes of the determination, the director of transportation shall take into consideration:
(1) The amount of federal funds and bond funds on deposit in, and budgeted to be expended from, the state highway fund during the period;
(2) Amounts on deposit in the state highway fund that are encumbered or otherwise obligated;
(3) Budgeted amounts payable from the state highway fund during the period;
(4) Revenues anticipated to be received by and expenditures to be made from the state highway fund during the period based on existing agreements and other information for the ensuing twelve months; and
(5) Any other factors as the director of transportation shall deem appropriate.
[(c) The department of transportation shall
establish county subaccounts within the state highway fund. Notwithstanding
subsections (a) and (b), funds in each county subaccount shall be expended for
state highway road capacity projects in the respective county.
For
purposes of this subsection, "state highway road capacity project"
means construction:
(1) Of a new road;
(2) To widen or add additional lanes to
an existing road; or
(3) That increases the number of
vehicles that may be driven on an island and alleviates the level of traffic
congestion on existing roads of that island,
and any planning, design, or right-of-way
acquisition related to the construction.]"
SECTION 4. Section 249-18, Hawaii Revised Statutes, is amended to read as follows:
"§249-18
Highway fund. All taxes, fees, or charges collected
under this chapter, except those collected pursuant to sections 249-14 and
249-14.5[,] and the state mileage-based road usage charge established
under 249-36, shall be deposited in a county fund to be known as the
"highway fund" and shall be expended in the county in which the taxes,
fees, or charges are collected for the following purposes:
(1) For acquisition, designing, construction, improvement, repair, and maintenance of public roads and highways, including without restriction of the foregoing purposes, costs of new land therefor, of permanent storm drains or new bridges, as well as repairs or additions to storm drains or bridges;
(2) For installation, maintenance, and repair of street lights and power, and other charges for street lighting purposes, including replacement of old street lights, on county maintained public roads and highways;
(3) For purposes and functions connected with traffic control and preservation of safety upon the public highways and streets;
(4) For payment of interest on and redemption of bonds issued to finance highway and street construction and improvements;
(5) In the case of the city and county of
Honolulu, for appropriation for the police department up to the sum of
$500,000. No expenditures shall be made
out of this fund [which] that will jeopardize federal aid for
highway construction;
(6) For purposes and functions connected with mass transit; and
(7) For the acquisition, design, construction, improvement, repair, and maintenance of bikeways."
SECTION 5. Section 249-36, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (a) to read:
"(a) [Beginning July 1, 2025, in] In
addition to all other fees and taxes levied by this
chapter, electric vehicles, beginning July 1, 2025, and plug-in hybrid
electric vehicles, beginning July 1, 2026, shall be subject to a state
mileage-based road usage charge. The
state mileage-based road usage charge shall be calculated by the county
director of finance at the rate of 0.8 cents per mile traveled, multiplied by
the number of miles traveled, less the estimated amount of paid state fuel
taxes that correspond with the number of miles traveled. The department shall adopt rules pursuant to
chapter 91 to determine the method for calculating the estimated amount of paid
state fuel taxes that correspond with the number of miles traveled. The number of miles traveled shall be
calculated as the difference between the vehicle's two most recent odometer
readings, as noted on the vehicle's certificate of inspection pursuant to
section 286-26(e). The state mileage-based
road usage charge shall be [not] no less than $0, and, until
June 30, 2028, the state mileage-based road usage charge shall be [not]
no more than $50 per year. For the first
registration renewal of new motor vehicles for which no certificate of
inspection is required, the state mileage-based road usage charge assessed
shall be $50, and [such] the amount once paid shall be subtracted
from the calculation of the state mileage-based road usage charge upon that
vehicle's second registration renewal. If
the state mileage-based road usage charge cannot be calculated because of
missing, incomplete, or incorrect odometer reading information:
(1) Until June 30, 2028, a vehicle
subject to the state mileage-based road usage charge is subject to a default
state mileage-based road usage charge of $50; and
(2) Effective July 1, 2028, a vehicle
subject to the state mileage-based road usage shall be subject to a default
state mileage-based road usage charge of $80."
2.
By amending subsections (c) and (d) to read:
"(c) Vehicles subject to the state mileage-based
road usage charge shall include all electric vehicles or plug-in
hybrid electric vehicles in the State except for vehicles that
qualify for any of the exemptions in sections 249-4, 249-5.5, 249-6, and 249-6.5.
(d)
Until June 30, 2028, owners of electric vehicles and plug-in
hybrid electric vehicles
shall be offered a choice to pay a $50 registration surcharge in lieu of the
state mileage-based road usage charge."
3.
By amending subsection (g) to read:
"(g) For the purposes of this section[,
"electric]:
"Electric
vehicle" means a vehicle, with three or more wheels, a gross vehicle
weight rating less than or equal to ten thousand pounds, and the capability to
operate legally at a speed of more than thirty-five miles per hour, that draws
propulsion energy exclusively from a battery that can be recharged from an
external source of electricity.
"Plug-in
hybrid electric vehicle" means a vehicle that can use batteries to power
an electric motor and use another fuel, such as gasoline or diesel, to power an
internal combustion engine or other propulsion source, and that may use
electricity from the grid to run the vehicle some or all of the time."
SECTION 6. Section 437D-3, Hawaii Revised Statutes, is
amended by amending the definition of "vehicle license recovery fees"
to read as follows:
""Vehicle
license recovery fees" includes motor vehicle weight taxes under section
249-2; fees connected with the registration of specially constructed,
reconstructed, or rebuilt vehicles, special interest vehicles, or imported
vehicles as referenced in section 286-41(c); license plate and emblem fees
under section 249-7(b); state and county mileage-based road usage charges
under sections 249-36 and 249-A; inspection fees as referenced in section
286-26; highway beautification fees as referenced in section 286-51(b)(1); and
any use tax under chapter 238."
SECTION 7. There is appropriated out of the state highway fund the sum of $ or so much thereof as may be necessary for fiscal year 2025-2026 for the implementation of the state mileage-based road usage charge program, to be used with available federal funds; provided that moneys appropriated pursuant to this section shall not lapse at the end of the fiscal year and any unexpended or unencumbered funds as of June 30, 2026, shall lapse into the state highway fund as of that date.
The sum appropriated shall be expended by the department of transportation for the purposes of this Act.
SECTION 8. There is appropriated out of the state
highway fund the sum of
$ or so much
thereof as may be necessary for fiscal year 2025-2026 to be used with $802,400
federal funds and the sum of
$ or so much
thereof as may be necessary for fiscal year 2026-2027 to be used with
$1,542,480 federal funds, for the continued implementation of the state
mileage-based road user charge established pursuant to section 249-36, Hawaii
Revised Statutes; provided that the moneys appropriated for fiscal year
2025-2026 and fiscal year 2026-2027 for the purposes of this Act shall not
lapse at the end of their respective fiscal year and any unexpended or
unencumbered funds as of June 30, 2028, shall lapse into the state highway fund
as of that date.
The sums
appropriated shall be expended by the department of transportation for the
purposes of this Act.
SECTION 9. In codifying the new sections added by section 2 of this Act, the
revisor of statutes shall substitute appropriate section numbers for the
letters used in designating and referring to the new sections in this Act.
SECTION 10. Statutory material to be repealed is
bracketed and stricken. New statutory
material is underscored.
SECTION 11. This Act shall take effect on July 1, 3000.
Report Title:
DOT; Electric Vehicles; Plug-In Hybrid Electric Vehicle; State Mileage-Based Road Usage Charge; County Mileage-Based Road Usage Charge; State Highway Fund; Disposition of Funds; Appropriation
Description:
Beginning
7/1/2028, authorizes a county to impose a mileage-based road usage charge on
electric vehicles and plug-in hybrid electric vehicles. Provides and requires a county to establish
the rate of the road usage charge.
Repeals the requirement for the Department of Transportation to
establish county subaccounts within the State Highway Fund. Clarifies the disposition of funds for state
mileage-based road usage charge.
Beginning 7/1/2026, extends the state mileage-based road usage charge to
plug-in hybrid electric vehicles. Clarifies
the rate and calculation of the state mileage-based road usage charge. Specifies that rental motor vehicle companies
may visibly pass the costs of the mileage-based road usage charges to the
consumer. Appropriates funds. Effective 7/1/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
