HB2301

HOUSE OF REPRESENTATIVES	H.B. NO.	2301
THIRTY-SECOND LEGISLATURE, 2024
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 the northern extension of the Lahaina bypass was envisioned to be funded by the rental car surcharge. This fund, created by the legislature specifically for the Lahaina bypass has since been shifted to other projects, unrelated to the bypass, in direct conflict with the original justification for taxing rental cars.

The legislature further finds that because of the recent wildfires, population growth quickly centered to the areas to be serviced by the Lahaina bypass. Additionally, plans for future development in the area, including projects with the department of Hawaiian homelands and the Hawaii housing finance development corporation, will increase the population by adding thousands of homes north of Lahaina. Given that this segment of the bypass will also service the visitors to the area and will generate most of the rental car traffic on the island, it is appropriate to utilize potential disaster and rental car funds for the construction, maintenance, and repair of the Lahaina bypass north.

SECTION 2. Section 248-9, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(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[.]; and

(6) To pay the costs of construction, maintenance, and repair of the Lahaina bypass north."

SECTION 3. Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of $5 a day, or any portion of a day that a rental motor vehicle is rented or leased[.]; provided that, beginning July 1, 2024, the rental motor vehicle surcharge tax shall increase to $7 a day, and the difference shall be allocated for the Lahaina bypass north. Beginning January 1, 2022, and each subsequent year on January 1 until December 31, 2027, the rental motor vehicle surcharge tax shall increase by $0.50. The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:

(1) The lessor is renting the vehicle to replace a vehicle of the lessee that:

(A) Is being repaired; or

(B) Has been stolen and is unrecovered or will not be repaired due to a total loss of the vehicle; and

(2) A record of the repair order, the stolen vehicle record, or total loss vehicle claim for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16.

In addition to the requirements imposed by section 251-4, a lessor shall disclose, to the department, the portion of the remittance attributed to the county in which the motor vehicle was operated under rental or lease. A peer-to-peer car-sharing program, as defined in chapter 279L, shall be subject to the tax imposed by this subsection and be subject to the other requirements of this chapter."

SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 5. This Act shall take effect on July 1, 2024.

INTRODUCED BY:	_____________________________