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HB1161
HOUSE OF REPRESENTATIVES
H.B. NO.
1161
THIRTY-THIRD LEGISLATURE, 2025
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO TRANSPORTATION
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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The
legislature finds that, as a means of addressing declining fuel tax revenues,
the department of transportation supports the adoption of a per-mile road usage
charge to provide fair and sustainable funding for the State's road
infrastructure.
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The legislature further
finds that, with the existing vehicle inspection program, the State and
counties are well-positioned to transition to a per-mile road usage charge with
low administrative costs.
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In 2023, the
legislature enacted a small-scale per-mile road usage charge program for electric
vehicles.
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Beginning on July 1, 2025,
drivers of electric vehicles will be provided a choice of paying a state road
usage charge at a rate of 0.8 cents per mile traveled or paying a flat fee of
no more than $50 per year.
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This choice
will be permitted until June 30, 2028, at which time all electric vehicles will
pay a state road usage charge.
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The
number of miles will be calculated based on an odometer reading recorded during
the motor vehicle safety inspection.
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Finally, the legislature required the department of transportation to
develop a plan to transition all vehicles in Hawaii to a per-mile road usage
charge by 2033.
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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.
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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.
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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.
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The purposes of this Act are to:
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(1)
�
Establish
a state mileage-based road usage charge subaccount within the state highway
fund;
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(2)
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Authorize
counties to establish a county mileage-based road usage charge for electric
vehicles beginning July 1, 2028;
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(3)
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Establish a process for the counties
to adopt a per-mile rate by ordinance;
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(4)
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Clarify the use of moneys collected
under the state and county road usage charges; and
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(5)
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Clarify certain procedures when
calculating the state and county road usage charge is not possible due to
incomplete information.
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SECTION 2.
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Chapter 249, Hawaii Revised Statutes, is amended by adding three new
sections to be appropriately designated and to read as follows:
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"
�249-A
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County mileage-based road usage charge;
established.
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(a)
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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.
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(b)
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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 motor
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
two most recent odometer readings, as noted on the electric vehicle's
certificate of inspection issued pursuant to section 286-26(e).
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(c)
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If a county establishes a mileage-based road usage charge pursuant to
section 249-B, for the first registration renewal of new 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 electric
vehicle's second registration renewal.
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(d)
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The county mileage-based road usage charge shall be paid each year
following the 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.
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(e)
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Notwithstanding subsection (a), all 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.
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(f)
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Each county may adopt rules pursuant to chapter 91 for establishing and
administering the county mileage-based road usage charge.
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(g)
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For the purposes of this section, "electric vehicle" has the
same meaning as defined in section 249-36.
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�249-B
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County mileage-based road usage charge;
rate; establishment.
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(a)
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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 ordinances involving the expenditure of public
funds; provided that until such rate is established, the county mileage-based
road usage charge for each county shall be zero.
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(b)
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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.
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Public notice of the hearing shall be given
at least twice within the thirty-day period immediately preceding the date of
the hearing.
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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.
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(c)
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Each county may establish a per mile rate for a county mileage-based
road usage charge that is:
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(1)
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One
or more cents, a fraction of a cent, or both; or
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(2)
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Zero.
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(d)
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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 is subject to a default
county mileage-based road usage charge as established by the county.
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�249-C
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County mileage-based road usage charge;
dispositions.
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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.
"
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SECTION
3.
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Section 248-9,
Hawaii Revised
Statutes, is amended to read as follows:
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"
�248-9
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State highway fund.
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(a)
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Moneys in the state highway fund may be expended for the following
purposes:
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(1)
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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;
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(2)
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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;
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(3)
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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;
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(4)
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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
]
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(5)
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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.
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(b)
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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.
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For purposes of the determination, the
director of transportation shall take into consideration:
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(1)
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The
amount of federal funds and bond funds on deposit in, and budgeted to be
expended from, the state highway fund during the period;
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(2)
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Amounts
on deposit in the state highway fund that are encumbered or otherwise
obligated;
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(3)
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Budgeted
amounts payable from the state highway fund during the period;
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(4)
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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
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(5)
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Any
other factors as the director of transportation shall deem appropriate.
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[
(c)
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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.
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For purposes of this subsection,
"state highway road capacity project" means construction:
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(1)
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Of
a new road;
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(2)
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To
widen or add additional lanes to an existing road; or
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(3)
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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.
]
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(c)
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The
department of transportation shall establish a state mileage-based road usage
charge subaccount within the state highway fund.
"
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SECTION
4.
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Section 249-18,
Hawaii Revised
Statutes, is amended to read as follows:
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"
�249-18
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Highway fund.
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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:
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(1)
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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;
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(2)
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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;
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(3)
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For
purposes and functions connected with traffic control and preservation of
safety upon the public highways and streets;
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(4)
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For
payment of interest on and redemption of bonds issued to finance highway and
street construction and improvements;
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(5)
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In
the case of the city and county of Honolulu, for appropriation for the police
department up to the sum of $500,000.
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No
expenditures shall be made out of this fund [
which
]
that
will
jeopardize federal aid for highway construction;
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(6)
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For
purposes and functions connected with mass transit; and
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(7)
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For
the acquisition, design, construction, improvement, repair, and maintenance of
bikeways."
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SECTION 5.
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Section 249-36, Hawaii Revised Statutes, is amended by amending
subsection (a) to read as follows:
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"(a)
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Beginning July 1, 2025, in addition to
all other
fees and taxes levied by this chapter
, electric vehicles shall be subject
to a state mileage-based road usage charge.
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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.
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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.
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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).
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The state mileage-based
road usage charge shall be not less than $0, and
, until June 30, 2028,
the state mileage-based road usage charge shall be not more than $50 per
year.
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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.
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If the state mileage-based
road usage charge cannot be calculated because of missing, incomplete, or
incorrect odometer reading information:
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(1)
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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
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(2)
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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.
There is established
within
the state highway fund a state mileage-based road usage charge subaccount.
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All fees, taxes, and charges collected by
this chapter shall be deposited into a state mileage-based road usage
subaccount under the state highway fund to be administered by the department of
transportation; provided that funds can be used to pay for any expenditures in
collaboration with the state mileage-based road usage charge including
disbursements or reimbursements back to the vehicle owners.
"
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SECTION
6.
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Section 431:10C-103, Hawaii Revised
Statutes, is amended by amending the definition of "motor vehicle" to
read as follows:
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""Motor
vehicle" means any vehicle of a type required to be registered under
chapter 286, including a trailer attached to [
such
] a vehicle, but not
including motorcycles [
and motor scooters
]."
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SECTION
7.
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Section 437D-3, Hawaii Revised
Statutes, is amended by amending the definition of "vehicle license
recovery fees" to read as follows:
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""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."
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SECTION
8.
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There is appropriated out of the
state highway fund the sum of $1,700,000 or so much thereof as may be necessary
for fiscal year 2024-2025 to be used with available federal funds, for the
implementation of the state mileage-based road usage charge program; provided
that the moneys appropriated for fiscal year 2024-2025 for the purposes of this
Act shall not lapse at the end of the fiscal year; provided further that all
moneys appropriated for fiscal year 2024-2025 that are unexpended or unemcumbered
as of June 30, 2026, shall lapse into the state highway fund.
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The
sum appropriated shall be expended by the department of transportation for the
purposes of this Act.
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SECTION
9.
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There is appropriated out of the
state highway fund the sum of $200,600 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
$385,620 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; provided further that all
moneys appropriated for fiscal year 2025-2026 and fiscal year 2026-2027 that
are unexpended or unencumbered as of June 30, 2028, shall lapse into the state
highway fund.
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The
sums appropriated shall be expended by the department of transportation for the
purposes of this Act.
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SECTION
10.
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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.
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SECTION
11.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION 12.
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This Act shall take effect upon its approval.
INTRODUCED BY:
_____________________________
BY REQUEST
Report Title:
Department of Transportation; Electric Vehicles; State
Mileage-Based Road Usage Charge; County Mileage-Based Road Usage Charge
Description:
Provides authority for a county to impose a mileage-based road usage
charge.
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Provides for disposition of
funds of county mileage-based road usage charge.
�
Clarifies the disposition of funds of state
mileage-based road usage charge.
�
Repeals
the maximum amount a driver will pay in a state
mileage-based
road usage charge on June 30, 2028.
�
Establishes
a default state mileage-based road usage charge rate when missing, incomplete,
or incorrect odometer reading information that will prevent the state
mileage-based road usage charge from being calculated.
�
Establishes a state mileage-based road usage
charge subaccount to allow for the disbursements or reimbursements back to
vehicle owners.
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not legislation or evidence of legislative intent.