STAND. COM. REP. NO. 1331-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 2697

S.D. 1

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 S.B. No. 2697, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Prohibit vehicles from driving on the shoulder of a roadway, except in certain circumstances;

(2) Authorize the Department of Transportation and county police departments to impound or cause to tow vehicles with expired registrations of three years or more after verifying the vehicle's registration status, under certain conditions;

(3) Establish procedures for an owner of a vehicle that was impounded to redeem their vehicle;

(4) Require the Department of Transportation to submit an annual report to the Legislature detailing enforcement activity by county;

(5) Increase the fine amount for owners of out-of-state motor vehicles who fail to register the vehicle in the State; and

(6) Establish minimum and maximum statutory penalties for violations relating to the use of high occupancy vehicle lanes.

Your Committee received testimony in support of this measure from the Department of Transportation. Your Committee received comments on this measure from the Department of Customer Services of the City and County of Honolulu and one individual.

Your Committee finds that unsafe roadway practices and weak compliance with vehicle laws can undermine public safety and impede effective traffic enforcement. This measure addresses these concerns by prohibiting the unauthorized use of shoulder lanes, authorizing the impoundment of vehicles with registrations expired for three or more consecutive years under certain conditions, increasing penalties for certain registration-related violations, and establishing clearer fines for high occupancy vehicle lane violations. By strengthening compliance tools and penalties, this measure promotes safer roadways and supports more consistent enforcement of the State's transportation laws.

Your Committee further finds that H.B. No. 2027, H.D. 1 (Regular Session of 2026), a substantially similar measure, was previously passed by your Committee.

Your Committee has amended this measure by:

(1) Deleting its contents and inserting the contents of H.B. No. 2027, H.D. 1, a measure that:

(A) Prohibits vehicles from driving on the shoulder of a roadway, except in certain circumstances;

(B) Authorizes the Department of Transportation, law enforcement officers, and other approved persons to impound vehicles with expired registrations of three years or more, under certain conditions;

(C) Requires an annual report to the Legislature;

(D) Increases the fine amount for owners of out-of-state motor vehicles who fail to register the vehicle in the State; and

(E) Establishes minimum and maximum statutory penalties for violations relating to the use of high occupancy vehicle lanes;

(2) Exempting towing enforcement for expired vehicle registration from the requirement that a tow company release a vehicle if the owner appears while the vehicle is being hooked up;

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

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

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 S.B. No. 2697, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2697, S.D. 1, H.D. 1, and be referred to your Committee on Judiciary & Hawaiian Affairs.

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

____________________________

DARIUS KILA, Chair