HOUSE OF REPRESENTATIVES

H.B. NO.

670

THIRTY-THIRD LEGISLATURE, 2025

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 the single greatest recent factor contributing to the increasing cost of living in Hawaii is the rising cost of transportation.  Due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents pay among the highest costs to commute in the country.  In January 2022, the United States Bureau of Labor Statistics reported that auto-related costs were an astonishing twenty-three per cent higher than the year before.

     The legislature also finds that electric bicycles are significantly more cost effective for local families, better for the environment than gas-powered motor vehicles, and can effectively get many Hawaii residents to locations as conveniently as gas-powered motor vehicles.  The current electric bicycle and moped rebate program, even with minimal promotion and low subsidy, has helped almost three hundred people access electric bikes since its inception.  However, its reach has been limited by age restrictions and a lower rebate than other similar programs that does not afford access to many lower-income families.

     In 2022, Denver's electric bike rebate program, which provided families with up to a $1,200 rebate, led to considerable cost savings for Denver families, helped reduce vehicular traffic on crowded roads, and ultimately replaced many trips by car with trips by bike.  This meant twenty-two miles a week on average per user, collectively displacing one hundred thousand miles weekly.  Ninety-six per cent of users surveyed said the availability of the rebate made the difference when deciding to buy an electric bike.

     The purpose of this Act is to:

     (1)  Help reduce the cost of transportation, the cost of living, and traffic on Hawaii's roads by improving the existing electric bicycle and moped rebate program to further encourage the purchase and use of adaptive electric bicycles, electric bicycles, electric mopeds, and other electric mobility devices; and

     (2)  Update the definitions of "electric mobility device" and "electric bicycle" to align with federal and state policies and programs.

     SECTION 2.  Section 196-2, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

     ""Adaptive electric bicycle" means any bicycle that is modified to fit the needs of an individual rider who is unable to use a standard electric bicycle.

     "Electric bicycle" means a bicycle equipped with fully operable pedals and an electric motor of no more than seven hundred fifty watts that meets one or more of the following classes:

     (1)  Class 1:  an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling, and that ceases to provide assistance when the bicycle reaches the speed of twenty miles per hour;

     (2)  Class 2:  an electric bicycle equipped with a motor that may be used exclusively to propel the bicycle and that is not capable of providing assistance when the bicycle reaches the speed of twenty miles per hour; or

     (3)  Class 3:  an electric bicycle equipped with a motor that provides assistance only when the rider is pedaling and that ceases to provide assistance when the bicycle reaches the speed of twenty-eight miles per hour and equipped with a speedometer.

"Electric bicycle" does not include a high-speed electric device.

     "Electric micro-mobility device" means a device weighing no more than seventy-five pounds that is fully or partially motorized and used for personal transportation, such as one-wheels and electric skateboards.  "Electric micro mobility device" does not include electric bicycles or electric foot scooters.

     "Electric mobility device" means an adaptive electric bicycle, electric bicycle, electric micro-mobility device, or electric mopeds.

     "High-speed electric device" means a two-wheeled electric device with a motor exceeding seven hundred fifty watts and capable of speeds over twenty-eight miles per hour.  "High-speed electric device" does not include a moped or motorcycle that can legally be operated on a road or street, as provided by law."

     SECTION 3.  Section 196-7.8, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§196-7.8[]]  Electric [bicycle and electric moped] mobility device rebate program; third-party administrator; special fund.  (a)  The department of transportation shall administer a rebate program that incentivizes the purchase of new electric [bicycles and new electric mopeds] mobility devices and may contract with a third-party administrator pursuant to subsection [(i)] (j) to operate and manage the rebate program.

     (b)  Each eligible purchase of a new electric [bicycle or new electric moped] mobility device shall receive a rebate of [either twenty per cent of the retail cost or $500, whichever amount is lower;] $          ; provided that no individual shall receive more than [$500] $           in total rebates each fiscal year[.] unless also qualifying for the additional assistance rebate pursuant to subsection (i), in which case no individual shall receive more than $           in total rebates each fiscal year.  No non-profit organization shall receive more than $           in total rebates each fiscal year.

     (c)  The department of transportation shall not issue more than [$700,000] $           in total rebates under this section each fiscal year; provided that the electric [bicycle and electric moped] mobility device subaccount within the highway development special fund pursuant to section 264-122(d) contains sufficient funds to pay the rebates.  The department of transportation shall not be liable to pay any refund if sufficient funds are unavailable.  The department of transportation shall allow valid claims filed by eligible applicants for whom sufficient funds may not be immediately available to receive a rebate as funds may be available in a subsequent year.

     (d)  The department of transportation shall:

     (1)  Prepare any forms that may be necessary for an applicant to claim a rebate pursuant to this section; and

     (2)  Require each applicant to furnish reasonable information to ascertain the validity of the claim, including but not limited to [the signature of the buyer and individual responsible for the sale on behalf of a retail store at the time of sale,] a copy of valid government issued photo identification of the buyer at the time of the sale, receipt of purchase, name and address of the retail store, verification of eligibility, and any other documentation necessary to demonstrate the legitimate purchase of a new electric [bicycle or new electric moped.] mobility device.

     (e)  This section shall apply to new:

     (1)  Electric bicycles [capable of speeds of no more than twenty-eight miles per hour; and];

     (2)  Electric mopeds[,];

     (3)  Adaptive electric bicycles; and

     (4)  Electric micro-mobility devices,

purchased at a retail store after July 1, 2022.

     (f)  Applicants shall submit an application to the department of transportation within twelve months of the date of purchase to claim a rebate from the electric [bicycle and electric moped] mobility device rebate program.  Failure to apply within twelve months of the date of purchase shall constitute a waiver of the right to claim the rebate.

     (g)  Nothing in this section shall alter taxes due on the original purchase.  Any rebate received pursuant to this section shall not be considered income for the purposes of state or county taxes.

     (h)  In administering the electric mobility device rebate program, the department of transportation shall provide rebates to:

     (1)  Persons who are residents of the State and fifteen years or older, who purchase a new electric mobility device; and

     (2)  Non-profit organizations who are registered in the State who purchase one or more new electric mobility devices.

     [(h)] (i)  In administering the electric [bicycle and electric moped] mobility device rebate program, the department of transportation shall provide [rebates] an assistance rebate in addition to the rebate in subsection (b).  The additional assistance rebate shall be $           or the full retail amount, whichever amount is lower, to persons [eighteen] fifteen years or older who:

     (1)  Are eligible for:

          (A)  The Supplemental Nutrition Assistance Program;

          (B)  The free and reduced price lunch program;

          (C)  Section 8 of the United States Housing Act of 1937, as amended; or

          (D)  Similar low-income assistance programs identified by the department of transportation;

     (2)  Do not own a registered motor vehicle with four or more wheels, as demonstrated by an affidavit signed by the applicant at the time of sale of the new electric [bicycle or electric moped,] mobility device, which may be audited by the department of transportation; or

     (3)  Are enrolled in school, community college, or university.

     [(i)] (j)  The department of transportation may contract with a third-party administrator to operate and manage the electric [bicycle and electric moped] mobility device rebate program.  The third-party administrator shall not be deemed to be a ["governmental body"] government body as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall have been appropriated by the legislature or shall be from moneys provided by the federal government or private funding sources.  [The third-party administrator shall not expend more than ten per cent of the amounts appropriated for the rebate program, or any other reasonable percentage determined by the department of transportation, for administration of the electric bicycle and electric moped rebate program.]

     (k)  The third-party administrator may pay rebates to each rebate applicant from moneys transferred pursuant to subsection (j) from the electric mobility device subaccount within the highway development special fund.

     (l)  Any modification or alteration to an electric bicycle or electric micro-mobility device after purchase from the manufacturer that affects its classification, performance, or compliance with the specifications shall result in the disqualification of the rebate and the recipient shall repay the full rebate amount to the department of transportation.  The department of transportation shall establish a process for verification and enforcement, including but not limited to inspections, reporting requirements, and penalties for noncompliance.

     (m)  The department of transportation shall provide an annual report to the legislature no later than twenty days prior to the convening of each regular session that shall detail the rebates provided by zip code, amount received, and type of rebate."

     SECTION 4.  Section 264-122, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  There is established within the highway development special fund an electric [bicycle and electric moped] mobility device subaccount.  The department shall expend moneys in the subaccount for the purposes of funding the electric [bicycle and electric moped] mobility device rebate program established pursuant to section 196-7.8."

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the electric mobility device subaccount in the highway development special fund.

     SECTION 6.  There is appropriated out of the electric mobility device subaccount in the highway development special fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the electric mobility device rebate program.

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

     SECTION 7.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 8.  This Act shall take effect on July 1, 3000.

 


 

Report Title:

Department of Transportation; Electric Mobility Device Rebate Program; Electric Mobility Subaccount; Appropriation

 

Description:

Renames the Electric Bicycle and Electric Moped Rebate Program to the Electric Mobility Device Rebate Program.  Expands eligibility and amends the maximum rebate amount.  Appropriates funds.  Effective 7/1/3000.  (HD1)

 

 

 

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