STAND. COM. REP. NO. 2314

Honolulu, Hawaii

RE: S.B. No. 2993

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Labor and Technology, to which was referred S.B. No. 2993 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose and intent of this measure is to require and appropriate funds for the Department of Human Resources Development to offer fully subsidized public transit passes for state employees.

Your Committee received testimony in support of this measure from the Department of Health; Hawaii Climate Change Mitigation and Adaptation Commission; Oahu Metropolitan Planning Organization; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi Appleseed Center for Law and Economic Justice; 350Hawaii.org Hawaii; and two individuals.

Your Committee received comments on this measure from the Department of Human Resources Development.

Your Committee finds that the State currently provides limited transit benefits for its employees. Your Committee also finds that state employee focus groups conducted in 2024 by the Oahu Metropolitan Planning Organization revealed a significant latent demand for expanded transportation benefits, with fifty-four percent of state employees reporting they would ride public transit if passes were fully subsidized. Your Committee further finds that the State needs to explore new and alternative ways to recruit and retain a qualified workforce, especially at a time when government salary alone may not be enough to attract and retain employees. This measure will help reduce traffic, reduce vacancy rates, and increase employee retention.

Your Committee has amended this measure by:

(1) Inserting an effective date of January 1, 2077, to encourage further discussion; and

(2) Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

Your Committee notes that this measure, as amended, contains an appropriation for an unspecified amount. Should your Committee on Ways and Means choose to deliberate on this measure, your Committee notes that according to the data and study by the Oahu Metropolitan Planning Organization, the cost to offer fully subsidized public transit passes including state badge costs would be $16,697,324 per year to cover all state employees, and $8,383,304 per year to cover fifty percent of state employees.

As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2993, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2993, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,

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BRANDON J.C. ELEFANTE, Chair