STAND. COM. REP. NO. 129-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2034

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred H.B. No. 2034 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to require and appropriate funds for the Department of Transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

Your Committee received testimony in support of this measure from the Department of Health; Department of Transportation; Oahu Metropolitan Planning Organization; Department of Transportation Services for the City and County of Honolulu; United Public Workers, AFSCME Local 646, AFL-CIO; Imua Alliance; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; 350Hawaii.org; Greenpeace Hawaii; and Earthjustice. Your Committee received comments on this measure from the Department of the Attorney General.

Your Committee finds that ground transportation accounts for a significant portion of greenhouse gas emissions in the State, with light-duty vehicles contributing the majority of those emissions. Reducing vehicle miles traveled by promoting public transit and active transportation is essential to achieving Hawaii's decarbonization goals. Furthermore, despite this need, state employees currently receive limited commuter benefits, with the State subsidizing parking but offering no equivalent support for transit or active commuting. By establishing a pilot program that offers fully subsidized transit passes for Department of Transportation employees, this measure would reduce emissions and lower employee commuting costs.

Your Committee has amended this measure by:

(1) Clarifying that the pilot program is for one year;

(2) Requiring the Department of Transportation to submit a report regarding the pilot program prior to the Regular Session of 2027;

(3) Inserting an appropriation amount of $150,000 out of general funds for the pilot program;

(4) Adding an appropriation of $150,000 out of the State Highway Fund for the pilot program;

(5) Changing the effective date to July 1, 3000, to encourage further discussion; and

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

Your Committee further requests the Department of Transportation to consider including in its report on the pilot program to the Legislature findings on expanding the subsidized transit passes statewide for public employees, including implementation and cost considerations by county.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2034, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2034, H.D. 1, and be referred to your Committee on Labor.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

DARIUS KILA, Chair