Enacts the transportation demand management program requiring public and private employers to institute traffic reduction measures involving employees. Provides a tax credit to employers for amounts paid to employees to take alternative means of transportation to and from work.

A BILL FOR AN ACT

SECTION 1. The legislature finds that traffic gridlock has become endemic in several locales in the State, particularly in the city and county of Honolulu. The traffic congestion is upsetting to drivers and a threat to public safety. With more than 800,000 vehicles registered on Oahu, streets are jammed. But many of the most congested roads, including all of the freeways and major highways, are under state control, so there is little city officials can do to ease the traffic pains. Any highway construction would depend on state action and federal funding. Easing congestion in neighborhoods, urban centers, and highway feeder routes is a city responsibility.

The legislature further finds that solutions to traffic problems must go beyond transportation planning into finding creative alternatives to alleviate congestion. For example, Washington State has enacted a transportation demand management program, which involves public and private employers in making a planned, organized, and concerted effort to alleviate traffic congestion. The law became effective in 1996 and has overcome initial opposition from employers to the point where it is now almost fully implemented. A 1999 Commute Trip Reduction Task Force Report to the Washington State Legislature stated, "The CTR Task Force concludes that the program continues to have positive, quantifiable impacts; it has improved the efficiency of the state's transportation system and reduced air pollution and fuel consumption. ... The Task Force also finds that the program will become more valuable in the future as state population continues to grow...."

The purpose of this Act is to enact a transportation demand management program and to provide a tax credit to employers for amounts paid to employees to take alternative means of transportation to and from work.

SECTION 2. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:

§   -1 Findings and purpose. Increasing automotive traffic is aggravating traffic congestion in Hawaii, particularly in the city and county of Honolulu. This traffic congestion imposes significant costs on Hawaii's businesses, governmental agencies, and individuals in terms of lost working hours and delays in the delivery of goods and services. Traffic congestion worsens automobile-related air pollution, increases the consumption of fuel, and degrades the habitat. The capital and environmental costs of fully accommodating the existing and projected automobile traffic on roads and highways are prohibitive.

The legislature finds that decreasing the demand for vehicle trips is significantly less costly and at least as effective in reducing traffic congestion and its impacts as constructing new transportation facilities such as roads and bridges, to accommodate increased traffic volumes.

The legislature further finds that increasing automotive transportation is a major factor in increasing consumption of gasoline and, thereby, increasing reliance on imported sources of petroleum. Moderating the growth in automotive travel is essential to stabilizing and reducing Hawaii's dependence on imported petroleum.

The legislature further finds that reducing the number of commute trips to work is an effective way of reducing automobile-related air pollution, traffic congestion, and energy use. Major employers have significant opportunities to encourage and facilitate reducing single-occupant vehicle commuting by employees.

In addition, the legislature recognizes the importance of increasing individual citizens' awareness of air quality, energy consumption, and traffic congestion, and the contribution individual actions can make towards addressing these issues.

The intent of this chapter is to require the State, counties, and major employers to develop and implement plans to reduce single-occupant vehicle commute trips.

§   -2 Definitions. As used in this chapter:

"Commute trip" means trips made from a worker's home to a worksite during the peak period of 6:00 a.m. to 9:00 a.m. on non-holiday weekdays.

"Commute trip reduction zones" mean areas, such as census tracts or combinations of census tracts, within a jurisdiction that are characterized by similar employment density, population density, level of transit service, parking availability, access to high occupancy vehicle facilities, and other factors that are determined to affect the level of single occupancy vehicle commuting.

"Commute trip vehicle miles traveled per employee" means the sum of the individual vehicle commute trip lengths in miles over a set period divided by the number of full-time employees during that period.

"Employer" means the State, county, and major employers.

"Flexible commuter ride sharing" means a car pool or van pool arrangement whereby a group of at least two but not more than fifteen persons including the driver is transported in a passenger motor vehicle with a gross vehicle weight not exceeding ten thousand pounds, excluding special rider equipment, between their places of abode or terminals near such places, and their places of employment or educational or other institutions, where the driver is also on the way to or from the driver's place of employment or educational or other institution.

"Major employer" means a private employer that employs fifty or more full-time employees who begin their regular work day between 6:00 a.m. and 9:00 a.m. on weekdays. The term also includes each campus of the University of Hawaii.

"Proportion of single-occupant vehicle commute trips" means the number of commute trips made by single-occupant automobiles divided by the number of full-time employees.

§   -3 Implementation of commute trip reduction plan. (a) The State, each county, and each major employer shall implement a commute trip reduction plan no later than January 1, 2007. The plan shall be designed to achieve reductions in the proportion of single-occupant vehicle commute trips and the commute trip vehicle miles traveled per employee by employees.

(b) A commute trip reduction plan shall include, but is not limited to:

(c) An employer covered by this chapter may offer a financial incentive to employees to take alternative transportation to and from work. The financial incentive may qualify as a tax credit under section 235-   for major employers except the University of Hawaii system.

(d) The goals shall not be less than a thirty per cent reduction for miles traveled per employee from the worksite.

(e) A commute trip reduction plan shall count commute trips eliminated through work-at-home options or alternate work schedules as one and two-tenths vehicle trips eliminated for the purpose of meeting trip reduction goals.

(f) A commute trip reduction plan shall ensure that employees have modified work schedules so that some or all employees are not scheduled to arrive at work between 6:00 a.m. and 9:00 a.m. The chief executive shall make the appropriate determination under section 78-1.6 for purposes of this subsection.

(g) This section shall not apply to construction employers with regard to any particular worksite when the expected duration of the construction project is less than two years.

§   -4 Additional requirements of major employers. (a) A commute trip reduction plan shall consist of, at a minimum:

§   -5 Good faith effort required of major employers. This chapter shall require a good faith effort on the part of major employers to implement the requirements of this chapter. This chapter, as applied to major employers, is intended as a guideline for employers to implement to alleviate the State's traffic congestion.

§   -6 Department of transportation; role. The department of transportation shall serve as an advisor to the State, counties, and major employers for the purpose of this chapter."

SECTION 3. Chapter 235, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§235-   Alternative transportation tax credit. (a) Any taxpayer who files an individual income tax return for a taxable year may claim an income tax credit under this section against the Hawaii state income tax.

(b) The tax credit shall be for financial incentives provided to employees to take alternative transportation to and from work, including ride sharing, public transportation, car sharing, walking, or riding a bicycle, are allowed a credit against taxes payable under this chapter, for amounts paid to or on behalf of employees, not to exceed            dollars per employee per year, up to a total amount of            dollars per year for the taxpayer for all employees.

(c) If the tax credit claimed by the taxpayer under this section exceeds the amount of the income tax payments due from the taxpayer, the excess of credit over payments due shall be refunded to the taxpayer; provided that the tax credit properly claimed by a taxpayer who has no income tax liability shall be paid to the taxpayer; and provided that no refunds or payments on account of the tax credit allowed by this section shall be made for amounts less than $1.

(d) The director of taxation shall prepare such forms as may be necessary to claim a credit under this section, may require proof of the claim for the tax credit, and may adopt rules pursuant to chapter 91.

(e) All of the provisions relating to assessments and refunds under this chapter and under section 231-23(c)(1) shall apply to the tax credit under this section.

(f) Claims for the tax credit under this section, including any amended claims, shall be filed on or before the end of the twelfth month following the taxable year for which the credit may be claimed."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval; provided that section 3 shall apply to taxable years beginning after January 1, 2005.