RELATING TO TRANSPORTATION.

SB1117

THE SENATE

S.B. NO.

1117

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:

����
SECTION 1.
�
The legislature finds that under existing
law, individuals under the age of fifteen are able to legally ride high-speed
electric bicycles, which has led to numerous safety and other issues.
�
Under existing statute, electric bicycles are
defined as devices capable of speeds of up to twenty miles per hour, even
though modern federal definitions allow for speeds of up to twenty-eight miles
per hour, and the vast majority of electric bicycles on the market today are
capable of reaching those speeds.
�
This
means a five-year-old is legally able to ride a new electric bicycle and law
enforcement can do little about it.

����
The
legislature further finds that due to
increasingly expensive
fossil fuels and a lack of cheaper transit options, Hawaii residents already pay
among the highest costs to commute in the country.
�
A 2020 analysis studied all of the direct and
indirect costs of car ownership and use in Hawaii and found that local
taxpaying families pay about $24,400 per year, but could reduce that cost
significantly by switching from three cars per family to two, or two cars to
one, and replacing short trips for those family members who are able with
electric bicycles or similar mobility devices.

����
The
legislature also finds that the current
electric bicycle and
moped rebate program, even with minimal promotion and low subsidy, has helped
almost three hundred Hawaii families access electric bikes since its inception.
�
However, its reach and effectiveness has been
limited by complicated restrictions and a lower rebate than other successful programs.

����
In 2022, Denver's electric bike rebate program, which provided
families with up to a $1,200 rebate, led to considerable cost savings for
Denver families, and replaced many trips by car with trips by electric bicycle
which helped reduce vehicular traffic on crowded roads by over one hundred
thousand vehicular miles weekly.
�
Ninety-six
per cent of respondents said the availability of the rebate made the difference
when deciding to buy an electric bike.

����
The legislature further finds that updates to the law regarding
the use of helmets and operation of electric bicycles are necessary to enhance
road safety for the entire community, and particularly for youths.

����
Accordingly,

the purpose of this Act is to:

����
(1)
�
Prohibit individuals under the age of
fifteen from riding electric bicycles;

����
(2)
�
Help reduce the cost of transportation and
traffic on Hawaii's roads by addressing barriers in the existing electric
bicycle and moped rebate program to enable the purchase and use of adaptive electric
bicycles for those with disabilities and expand eligibility and rebates for
electric bicycles to mirror similar proven successful programs more closely;

����
(3)
�
Clarify the source of funding for the
electric mobility rebate program;

����
(4)
�
Allow
for registration of class 3 electric bicycles with wheels smaller than twenty
inches that are intended for adult use;

����
(5)
�
Change
the age for helmet requirements statewide from sixteen to eighteen years of
age;

����
(6)
�
Allow
electric bicycles on public sidewalks, subject to certain conditions;

����
(7)
�
Authorize
rather than require that mopeds use bicycle lanes;

����
(8)
�
Change
the term "motor scooter" to "motor-driven vehicle"; and

����
(9)
�
Require
electric bicycle operators on public streets to follow certain safe riding
behavior.

����
SECTION
2.
�
Section 196-2, Hawaii Revised
Statutes, is amended by adding three new definitions to be appropriately
inserted and to read as follows:

����
"
"Adaptive
electric bicycle" means any bicycle that is modified to fit the needs of
an individual rider who is unable to use a standard electric bicycle.

����
"Electric
bicycle" means a bicycle equipped with fully operable pedals, a saddle or
seat for the rider, and an electric motor not to exceed seven hundred and fifty
watts that meets the requirements of one of the following three classes:

����
(1)
�
Class 1 electric bicycle, which is
an electric bicycle equipped with a motor that provides assistance only when
the rider is pedaling, and that ceases to provide assistance when the bicycle
reaches the speed of twenty miles per hour;

����
(2)
�
Class 2 electric bicycle, which is
an electric bicycle equipped with a motor that may be used exclusively to
propel the bicycle, and that is not capable of providing assistance when the
bicycle reaches the speed of twenty miles per hour; or

����
(3)
�
Class 3 electric bicycle, which is
an electric bicycle equipped with a motor that provides assistance only when
the rider is pedaling, and that ceases to provide assistance when the bicycle
reaches the speed of twenty-eight miles per hour.

����
"Electric
micro-mobility device" means any ground transportation device, such as a
standing scooter or similar device, that is powered either exclusively by
electricity from a battery charged from an external source, or by electricity
from a battery charged from an external source in addition to human power,
which is designed to transport a single person, with a range not less than fifteen
miles and maximum speed of twenty-eight miles per hour, on which a person may
reasonably commute to and from regular destinations.
"

����
SECTION
3.
�
Section 198-7.8, Hawaii Revised
Statutes, is amended to read as follows:

����
"[
[
]�196-7.8[
]
]
�

Electric
[
bicycle and
electric moped
]

mobility

rebate program; third-party administrator; special fund.
�
(a)
�

The department of transportation shall administer a rebate program that
incentivizes the purchase of new electric [
bicycles and new electric mopeds
]

mobility devices
and may contract with a third-party administrator
pursuant to subsection [
(i)
]
(k)
to operate and manage the rebate
program.

����
(b)
�
Each eligible purchase of a new electric
bicycle [
or new
]
,
electric moped
, adaptive electric bicycle,
or electric micro-mobility device
shall receive a rebate of [
either
twenty per cent of the retail cost or $500, whichever amount is lower;
]
either
fifty per cent of the retail cost or $750; whichever is lower;
provided
that no individual shall receive more than [
$500
]
$750
in total
rebates each fiscal year[
.
]
unless also qualifying
for the additional assistance rebate pursuant to subsection (i), in which case no
individual shall receive more than $1,500 in total rebates each fiscal year.

����
(c)
�
The department of transportation shall not
issue more than [
$700,000
]
$2,000,000
in total rebates under this
section each fiscal year; provided that the electric [
bicycle and electric
moped
]
mobility
subaccount within the highway development special
fund pursuant to section
264-122(d)
contains
sufficient funds to pay the rebates.
�
The
department of transportation shall not be liable to pay any refund if
sufficient funds are unavailable.
�
The
department of transportation shall allow valid claims filed by eligible
applicants for whom sufficient funds may not be immediately available to
receive a rebate as funds may be available in a subsequent year.

����
(d)
�
The department of transportation shall:

����
(1)
�
Prepare any forms that may be necessary
for an applicant to claim a rebate pursuant to this section; and

����
(2)
�
Require each applicant to furnish
reasonable information to ascertain the validity of the claim, including but
not limited to [
the signature of the buyer and individual responsible for
the sale on behalf of a retail store at the time of sale,
] a copy of valid
government issued photo identification of the buyer at the time of the sale,
receipt of purchase, name and address of the retail store, verification of
eligibility, and any other documentation necessary to demonstrate the
legitimate purchase of a new electric [
bicycle or new electric moped.
]
bicycle,
adaptive electric bicycle, electric moped, or electric mobility device.

����
(e)
�
This section shall apply to new:

����
(1)
�
Electric bicycles [
capable of speeds
of no more than twenty-eight miles per hour; and
]
;

����
(2)
�
Electric mopeds[
,
]
;

����
(3)
�
Adaptive electric bicycles; and

����
(4)
�
Electric
micro-mobility devices,

purchased at a
retail store after July 1, 2022.

����
(f)
�
Applicants shall submit an application to the
department of transportation within twelve months of the date of purchase to
claim a rebate from the electric [
bicycle and electric moped
]
mobility

rebate program.
�
Failure to apply within
twelve months of the date of purchase shall constitute a waiver of the right to
claim the rebate.

����
(g
)
�
Nothing in this section shall alter taxes due
on the original purchase.
�
Any rebate
received pursuant to this section shall not be considered income for the
purposes of state or county taxes.

����
(h)
�
In administering the
electric mobility rebate program, the department of transportation shall
provide rebates to persons
who are residents of the State and fifteen
years or older, who purchase a new qualifying electric bicycle, electric moped,
adaptive electric bicycle, or electric micro-mobility device.

����
[
(h)
]

(i)
�
In administering the electric
[
bicycle and electric moped
]
mobility
rebate program, the
department of transportation shall provide [
rebates
]
an assistance rebate in addition to the rebate in subsection
(b).
�
The additional assistance rebate
shall be $750 or the full retail amount, whichever amount is lower,

to persons [
eighteen
]
fifteen
years or older who:

����
(1)
�
Are eligible for:

���������
(A)
�
The Supplemental Nutrition Assistance
Program;

���������
(B)
�
The free and reduced price lunch
program;

���������
(C)
�
Section 8 of the United States Housing
Act of 1937, as amended; or

���������
(D)
�
Similar low-income assistance programs
identified by the department of transportation;

����
(2)
�
Do not own a registered motor vehicle
with four or more wheels, as demonstrated by an affidavit signed by the
applicant at the time of sale of the new electric bicycle [
or
]
,

electric moped,
adaptive electric bicycle, or electric micro-mobility
device,
which may be audited by the department of transportation; or

����
(3)
�
Are enrolled in school, community
college, or university;

provided
that parental or guardian permission shall be required if a person is under the
age of eighteen.

����
[
(i)
]

(j)
�
The department of
transportation may contract with a third-party administrator to operate and
manage the electric [
bicycle and electric moped
]
mobility
rebate
program.
�
The third-party administrator
shall not be deemed to be a "governmental body" as defined in section
103D-104; provided that all moneys transferred to the third-party administrator
shall have been appropriated by the legislature or shall be from moneys
provided by the federal government or private funding sources.
�
The third-party administrator [
shall not
expend more than ten per cent of the amounts appropriated for the rebate
program, or any other reasonable percentage determined by the department of
transportation, for
]
may provide
administration
, promotion, and
reporting
of the electric [
bicycle and electric moped
]
mobility

rebate program.

����
(k)
�
The department of transportation may contract
with a third-party administrator to administer the electric mobility rebate
program; provided that the third-party administrator may pay rebates to each
rebate applicant from moneys transferred pursuant to subsection (j) from the
electric mobility subaccount within the highway development special fund.

����
(l)
�
The department of
transportation shall provide an annual report to the legislature no later than
twenty days prior to the convening of each regular session that shall detail
the rebates provided by zip code, amount received, and type of rebate.
"

����
SECTION

4
.
�
Section 249-14,
Hawaii Revised Statutes, is amended by amending subsection (c) to read as
follows:

����
"
(c)
�
An owner of a bicycle
or a class 3
electric bicycle

as defined in section 196-2, intended for adult use,

having two tandem wheels that are less than twenty inches in diameter is not
required to register that bicycle, but may do so to facilitate the return of
recovered stolen bicycles by payment of the registration fee.
�
The fee collected shall not be refunded or
prorated.
�
Upon receipt of the fee, the
director of finance shall number and register each bicycle for which the fee is
paid, in the owner's name, and furnish the owner with a metallic tag or decal
for each bicycle, which shall be attached to the bicycle.
�
The decal shall be affixed to a bicycle on
the upright post attached to the sprocket facing in the forward direction.
�
Upon initial registration by an owner or
transferee, the director of finance shall require proof of ownership and
require the owner to furnish verification of the serial number and description
contained in the proof of ownership and application for registration.
�
The metallic tags or decals shall be in a
form as the director of finance shall from time to time prescribe.
�
It shall be the duty of the director of
finance of each county to purchase a sufficient number of these tags or decals."

����
SECTION 5.
�

Section 264-122, Hawaii Revised Statutes, is amended by amending
subsection (d) to read as follows:

����
"(d)
�
There is established within the highway
development special fund an electric [
bicycle and electric moped
]
mobility

subaccount.
�
The department shall expend
moneys in the subaccount for the purposes of funding the electric [
bicycle
and electric moped
]
mobility
rebate program established pursuant to
section 196-7.8."

����
SECTION

6
.
�
Section
291C-139, Hawaii Revised Statutes, is amended by amending subsection (d) to
read as follows:

����
"
(d)
�
No person under fifteen years of age shall
operate an electric foot scooter on a highway, street, roadway, or any other
public property in the State.
�
No person
under [
sixteen
]
eighteen
years of age shall operate an electric
foot scooter unless the person wears a safety helmet securely fastened with a
chin strap.
�
The safety helmet shall meet
the specifications of and requirements for a bicycle helmet as set out in
section 291C-150."

����
SECTION

7
.
�
Section 291C-143.5,
Hawaii Revised Statutes, is amended to read as follows:

����
"[
[
]
�291C-143.5[
]
�
Low-speed
electric
]
Electric
bicycles; operator age[
.
]
; operation.
�
(a)
�

No person under the age of fifteen shall operate [
a low-speed
]
an

electric bicycle as defined [
under title 15 United States Code section 2085.
]

in section 196-2.

����
(b)
�
All electric bicycles shall be operated only
with all wheels on the ground at all times, facing forward, and with the
operator seated with one leg on each side of the seat; provided that it shall
not be a violation of this subsection if the wheels lose contact with the
ground briefly due to the condition of the road surface or other circumstances
beyond the control of the operator.

����
(c)
�
It shall be unlawful for any person to
operate an electric bicycle in an unsafe manner or engage in exhibition driving
on any public street, alley, or other public right of way provided that this
subsection shall not apply to a person engaging in exhibition riding as part of
a parade, tournament, or other activity permitted by the county.

����
(d)
�
The following actions while operating an
electric bicycle shall be prohibited:

����
(1)
�
Standing or kneeling on any seat,
riding on any handlebars, or engaging in any other non-standard riding position;

����
(2)
�
Performing a maneuver where one or
more wheels are intentionally lifted from the ground; and

����
(3)
�
Engaging in any other maneuver that
endangers the operator or any person.
"

����
SECTION

8
.
�
Section
291C-145, Hawaii Revised Statutes, is amended by amending subsection (g) to
read as follows:

����
"(g)

�
[
No
]
A person may ride an
electric bicycle on public sidewalks; provided that no
person shall ride [
a
]

an electric
bicycle [
equipped with a motor
] on any sidewalk
located
within a business district; provided further that the electric bicycle shall
not exceed a speed of ten miles per hour; provided further that the rider shall
use safe yielding behavior.
�
The
counties may, by ordinance, post bicycle lanes and bicycle paths to prevent
persons riding a bicycle equipped with a motor from using them."

����
SECTION

9
.
�
Section 291C-150,
Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read
as follows:

����
"(a)
�
No person under [
sixteen
]
eighteen

years of age shall operate a bicycle upon a street, bikeway, or any other
public property unless that person is wearing a properly fitted and fastened
bicycle helmet that has been tested by a nationally recognized agency such as
the National Highway Traffic Safety Administration, the National Safety
Council, or the Children's Safety Network, and is designed to fit the user and
protect against head trauma.
�
This
requirement also applies to a person who rides upon a bicycle while in a
restraining seat that is attached to the bicycle or who rides in a trailer
towed by the bicycle.

����
(b)
�
A person who provides bicycles for hire shall
not rent a bicycle to any person unless every person who is under age [
sixteen
]

eighteen
is wearing a bicycle helmet, as required in subsection (a),
while operating the rented bicycle, occupying a restraining seat that is
attached to the rented bicycle, or riding in a trailer towed by the rented
bicycle."

����
SECTION

10
.
�
Section 291C-197,
Hawaii Revised Statutes, is amended by amending subsection (a) to read as
follows:

����
"(a)
�
Wherever bicycle lanes are provided on the
roadway, moped drivers [
shall
]
may
use [
such
]
the

bicycle lanes."

����
SECTION 11.
�

Sections 249-1, 249-9.2, 286-2, 286-81, 286‑81.5, 286-102.6,
286-108, 286-109, 286-110, 291-11, 291-22, 291-25, 291-31, 291-31.5, 219C-1,
291C-206, 431:10C-304, 431:10C-305, 431:10C-408, 431-19G-101, 431:10G-102,
431:10G-103, 431:10G-104, 431:10G-105, 431:10G-106, 431:10G-107, 431:10G-108,
431:10G-201, 431:10G-202, 431:10G-206, 431:10G-301, 437-7, 437B‑1,
481I-2, and 604A-2, Hawaii Revised Statutes, are amended by substituting the
term "motor-driven cycle" or similar term, where the term "motor
scooter", or similar term, appears, as the context requires.

����
SECTION
12.
�
There is
appropriated out of the state highway fund the sum of $700,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to be deposited into
the
highway development special fund electric mobility subaccount
.

����
SECTION
13.
�
There is
appropriated out of the
highway development special fund electric
mobility subaccount
the sum of $700,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 for the operations
of the electric mobility rebate program including the payment of rebates and
costs of the administrator; provided that the funds appropriated shall not
lapse at the end of the fiscal year for which it was appropriated; provided
further that any unencumbered funds remaining shall lapse on June 30, 2028.

����
The
sums appropriated shall be expended by the department of transportation for the
purposes of this Act.

����
SECTION
14.
�
There is
appropriated out of the state highway fund the sum of $700,000 or so much
thereof as may be necessary for fiscal year 2025-2026 and the same sum or so
much thereof as may be necessary for fiscal year 2026-2027 to be deposited into
the highway development special fund electric mobility subaccount.

����
SECTION
15.
�
There is
appropriated out of the highway development special fund electric mobility
subaccount the sum of $700,000 or so much thereof as may be necessary for
fiscal year 2025-2026 and the same sum or so much thereof as may be necessary
for fiscal year 2026-2027 for the operations of the electric mobility rebate
program, including the payment of rebates and costs of the administrator;
provided that the funds appropriated shall not lapse at the end of the fiscal
year for which it was appropriated; provided further that any unencumbered
funds remaining shall lapse on June 30, 2028.

����
The
sums appropriated shall be expended by the department of transportation for the
purposes of this Act.

����
SECTION
16.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION
17.
�
This Act shall take effect upon its
approval; provided that sections 12, 13, 14, and 15 shall take effect on July
1, 2025.

INTRODUCED BY:

_____________________________

Report Title:

Department of Transportation; Rebate; Electric Mobility
Subaccount; Electric Mobility Rebate Program; Emergency Appropriations

Description:

Renames the Electric Bicycle and Electric Moped Rebate
Program to the Electric Mobility Rebate Program.
�
Expands eligibility and amends the maximum
rebate amounts.
�
Prohibits individuals under fifteen years of
age from riding electric bicycles.
�
Amends
the age requirement for helmet use from sixteen to eighteen years of age.
�
Allows use of electric bicycles on public
sidewalks, subject to certain conditions.
�

Authorizes rather than requires that mopeds use bicycle lanes.
�
Establishes rules for electric bicycle
operation.
�
Changes the term "motor
scooter" to "motor-driven vehicle".
�
Appropriates funds.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.