HOUSE OF REPRESENTATIVES	H.B. NO.	2034
THIRTY-THIRD LEGISLATURE, 2026		H.D. 1
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 ground transportation makes up thirty-eight per cent of transportation emissions in the State and light-duty vehicles make up eighty-five per cent of those emissions. The legislature recognizes that reducing vehicle miles traveled by commuters will be a key component to meeting the State's decarbonization goals and legal requirements outlined in Navahine F. v. Hawaii Department of Transportation (Hawaii Cir. Ct. 2024), which can be achieved by promoting the use of public transit.

The legislature further finds that state employees have limited commuter benefits. In 2024, the house of representatives adopted House Resolution No. 191, Regular Session of 2024, which urged the department of accounting and general services and department of human resources development to evaluate subsidizing public transit for public employees. Currently, the only transportation benefit the State offers is a pre-tax deduction of a state employee's paycheck to purchase a transit pass or pay for parking as allowed by the Internal Revenue Service. The State indirectly subsidizes employee parking stalls in downtown Honolulu on average between $130 to $238 a month and provides no subsidy for employees using public transit, carpooling, walking, biking, and other modes of transportation that reduce transportation emissions.

The legislature also finds that opting for public transit and active modes of transportation over private vehicles for commutes can help employees save money on fuel, insurance, parking, and vehicle maintenance costs, which can also help reduce the cost of living. Additionally, active modes of transportation can enhance quality of life, health, and well-being through physical activity.

The legislature also finds that state employee focus groups conducted in July and August of 2024 by the Oahu metropolitan planning organization revealed that fifty-four per cent of respondents would ride public transit to work if public transit passes were fully subsidized or discounted and forty-eight per cent of respondents stated they would walk, ride a bike, or scooter to work with a financial incentive.

The legislature notes that other jurisdictions such as Redmond, Washington and Nashville, Tennessee have successfully implemented free public transportation options for government employees. These jurisdictions have also reported increased employee retention and decreased tardiness or absences upon participating in the commuter benefits program.

Accordingly, the purpose of this Act is to require and appropriate funds for the department of transportation to establish a one-year pilot program to offer fully subsidized transit passes for department employees.

SECTION 2. (a) The department of transportation shall, in coordination with each county's transportation agency or department, establish a one-year pilot program to offer fully subsidized public transit passes as a benefit option for all department of transportation employees. The public transit passes shall be integrated into department employee badges in accordance with existing transit pass badging programs.

(b) The department of transportation shall submit a report of its findings and recommendations, including any proposed legislation, related to the implementation of and participation in the pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2027.

SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $150,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

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

SECTION 4. There is appropriated out of the state highway fund established pursuant to section 248-8, Hawaii Revised Statutes, the sum of $150,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

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

SECTION 5. This Act shall take effect on July 1, 3000.

Report Title:

DOT; Public Transit Passes; Department Employees; Pilot Program; Appropriation

Description:

Requires and appropriates funds for the Department of Transportation to establish a pilot program to offer fully subsidized public transit passes for department employees. Requires a report to the Legislature. Effective 7/1/3000. (HD1)

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