THE SENATE

S.B. NO.

1117

THIRTY-THIRD LEGISLATURE, 2025

S.D. 2

STATE OF HAWAII

H.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO TRANSPORTATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

PART I

     SECTION 1.  The legislature finds that under existing law, individuals under the age of fifteen are able to legally ride high-speed electric bicycles, which has led to numerous safety and other issues.  Under existing law, low-speed electric bicycles are defined as devices capable of speeds of up to twenty miles per hour, even though modern federal definitions allow for speeds of up to twenty-eight miles per hour, and the vast majority of electric bicycles on the market today are capable of reaching those speeds.  This means a five-year-old is legally able to ride a new electric bicycle and law enforcement can do little about it.

     The legislature further finds that due to increasingly expensive fossil fuels and a lack of cheaper transit options, Hawaii residents already pay among the highest costs in the country to commute.  A 2020 analysis studied all of the direct and indirect costs of car ownership and use in Hawaii and found that local taxpaying families pay about $24,400 per year to own and use a car, but could reduce that cost significantly by switching from three cars per family to two, or two cars to one, and by using an electric bicycle or similar mobility device for short trips.

     The legislature also finds that since its inception, the existing electric bicycle and electric moped rebate program, even with minimal promotion and low subsidy amounts, has helped almost three hundred Hawaii families access electric bikes.  However, the program's reach and effectiveness have been limited by complicated restrictions and a lower rebate amount than other successful programs.

     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.  Participating families replaced many trips by car with trips by electric bicycle, which helped reduce vehicular traffic on crowded roads by over one hundred thousand vehicular miles weekly.  Ninety-six per cent of respondents said that the availability of the rebate made the difference when deciding to buy an electric bicycle.

     The legislature further finds that updates to the law regarding the use of helmets and operation of electric bicycles, mopeds, and electric motorcycles are necessary to enhance road safety for the entire community, and particularly for youths.

     Accordingly, the purpose of this Act is to:

     (1)  Prohibit a person from operating a moped or electric motorcycle in certain areas designated for bicycles;

     (2)  Rename the electric bicycle and electric moped rebate program to the electric mobility device rebate program;

     (3)  Expand eligibility and amends the maximum rebate amounts;

     (4)  Reduce the deadline to submit an application to six months from the date of purchase;

     (5)  Require applicants who are enrolled in a school, community college, or university to demonstrate a financial need to be eligible for an additional assistance rebate;

     (6)  Exempt certain class 3 electric bicycles from registration requirements;

     (7)  Establish a cap for the electric mobility device subaccount and requirements for transferring funds into the subaccount;

     (8)  Amend the age requirement for helmet use from sixteen to eighteen years of age;

     (9)  Prohibit a person under the age of fifteen from operating a class 3 electric bicycle;

    (10)  Establish rules for electric bicycle operation;

    (11)  Allow use of electric bicycles on public sidewalks, subject to certain conditions;

    (12)  Prohibit individuals under eighteen years of age from operating an electric motorcycle or motor-driven cycle;

    (13)  Change the term "motor scooter" to "motor-driven vehicle"; and

    (14)  Appropriate funds.

PART II

     SECTION 2.  Chapter 291C, Hawaii Revised Statutes, is amended by adding a new section to part XVI to be appropriately designated and to read as follows:

     "§291C-     Driving mopeds and electric motorcycles on bicycle lanes and paths; prohibited.  No person shall operate a moped or electric motorcycle on a bicycle path, bicycle lane, or any other path or roadway designated for bicycle use."

     SECTION 3.  Section 196-2, Hawaii Revised Statutes, is amended by adding four new definitions to be appropriately inserted and to read as follows:

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

     "Electric bicycle" means a bicycle equipped with fully operable pedals and an electric motor of no more than seven hundred fifty watts.  "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 as defined in section 291C-1.

     "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."

     SECTION 4.  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 adaptive electric bicycle, electric bicycle, electric micro-mobility device, or [new] electric moped shall receive a rebate of either [twenty] fifty per cent of the retail cost or [$500,] $750, whichever [amount] is lower; provided that no individual shall receive more than [$500] $750 in total rebates each fiscal year[.], unless the individual also qualifies for the additional assistance rebate pursuant to subsection (i), in which case the individual shall not receive more than $1,500 in total rebates within any three consecutive fiscal years.

     (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] an adaptive electric bicycle, new electric bicycle, electric micro-mobility device, or [new] electric moped.

     (e)  This section shall apply to new:

     (1)  Adaptive electric bicycles;

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

     (3)  Electric micro-mobility devices; and

    [(2)] (4)  Electric mopeds,

purchased at a retail store on or after July 1, [2022.] 2023.

     (f)  Applicants shall submit an application to the department of transportation within [twelve] six 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] six months of the date of purchase shall constitute a waiver of the right to claim the rebate[.]; provided that if an individual applies after the six-month period but within twelve months of the purchase date, the administrator may consider granting a rebate under this section, subject to the approval of the director of transportation or the director's designated authority.

     (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)  To be eligible to claim a rebate from the electric mobility device rebate program, the applicant shall be:

     (1)  A resident of the State; and

     (2)  Fifteen years of age or older.

     [(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 $750 or the full retail amount of the purchase, whichever 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 adaptive electric bicycle, electric bicycle, electric micro-mobility device, or electric moped, which [may] shall be audited by the department of transportation; or

     (3)  Are enrolled in school, community college, or university[.] and demonstrate a financial need based on Pell Grant eligibility and other verifiable indicators of financial need; provided that the director of transportation or the director's designated authority may grant exemptions to the financial need requirement;

provided that permission shall be required from the person's parent or guardian if the person is under the age of eighteen.

     [(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" as defined in section 103D-104; provided that all moneys transferred to the third-party administrator shall [have]:

     (1)  Have been appropriated by the legislature;

     (2)  Have been transferred from the electric mobility device subaccount within the highway development special fund; or [shall be]

     (3)  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] may provide administration, promotion, and reporting of the electric [bicycle and electric moped] mobility device rebate program.

     (k)  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 or a designated agency shall establish a process for verification and enforcement, including but not limited to inspections, reporting requirements, and penalties for noncompliance.

     (l)  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, disaggregated by zip code, amount paid, and type of rebate."

     SECTION 5.  Section 249-14, Hawaii Revised Statutes, is amended by amending subsection (c) to read as follows:

     "(c)  An owner of a bicycle [having] or a class 3 electric bicycle, as defined in section 291C-1, that is intended for adult use, and that has two tandem wheels that are less than twenty inches in diameter [is] shall not be required to register that bicycle, but may do so to facilitate the return of recovered stolen bicycles by payment of the registration fee.  The fee collected shall not be refunded or prorated.  Upon receipt of the fee, the director of finance shall number and register each bicycle or class 3 electric bicycle for which the fee is paid, in the owner's name, and furnish the owner with a metallic tag or decal for each bicycle[,] or class 3 electric bicycle, which shall be attached to the bicycle[.] or class 3 electric bicycle.  The decal shall be affixed to a bicycle or class 3 electric bicycle on the upright post attached to the sprocket facing in the forward direction.  Upon initial registration by an owner or transferee, the director of finance shall require proof of ownership and require the owner to furnish verification of the serial number and description contained in the proof of ownership and application for registration.  The metallic tags or decals shall be in a form as the director of finance shall from time to time prescribe.  It shall be the duty of the director of finance of each county to purchase a sufficient number of these tags or decals."

     SECTION 6.  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 electric mobility device subaccount balance shall not exceed $          , and any excess of that amount shall be transferred to the highway development special fund.  The department shall transfer no less than $700,000 but no more than $1,500,000 into the electric mobility device subaccount; provided that if additional funding is required, the lower allocation amount and available funds may be adjusted accordingly.  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 7.  Section 291C-1, Hawaii Revised Statutes, is amended by adding five new definitions to be appropriately inserted and to read as follows:

     ""Class 1 electric bicycle" means 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.

     "Class 2 electric bicycle" means an electric bicycle equipped with a motor that may be used exclusively to propel the bicycle and ceases to provide assistance when the bicycle reaches the speed of twenty miles per hour.

     "Class 3 electric bicycle" means an electric bicycle equipped with a speedometer and 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.

     "Electric bicycle" has the same meaning as in section 196‑2.

     "Electric motorcycle" means any electric vehicle that has a seat or saddle for rider use, is designated to travel on no more than three wheels in contact with the ground, and has a motor capable of speeds exceeding twenty-eight miles per hour or a motor power of seven hundred fifty-one watts or greater, excluding mopeds and motor scooters."

     SECTION 8.  Section 291C-139, Hawaii Revised Statutes, is amended by amending subsection (d) to read as follows:

     "(d)  No person under fifteen years of age shall operate an electric foot scooter on a highway, street, roadway, or any other public property in the State.  No person under [sixteen] eighteen years of age shall operate an electric foot scooter unless the person wears a safety helmet securely fastened with a chin strap.  The safety helmet shall meet the specifications of and requirements for a bicycle helmet as set out in section 291C-150."

     SECTION 9.  Section 291C-143.5, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§291C-143.5[]  Low-speed electric] Electric bicycles; operator age[.]; operation.  (a)  No person under the age of fifteen shall operate a [low-speed] class 3 electric bicycle [as defined under title 15 United States Code section 2085].

     (b)  All electric bicycles shall be operated with all wheels on the ground at all times, with the operator facing forward and seated with one leg on each side of the seat; provided that it shall not be a violation of this subsection if the wheels lose contact with the ground briefly due to the condition of the road surface or other circumstances beyond the control of the operator.

     (c)  It shall be unlawful for any person to operate an electric bicycle in an unsafe manner or to engage in exhibition driving on any public street, alley, or other public right-of-way; provided that this subsection shall not apply to a person engaging in exhibition riding as part of a parade, tournament, or other activity permitted by the county.

     (d)  The operator of an electric bicycle shall not:

     (1)  Stand or kneel on the seat, ride on the handlebars, or engage in any other non-standard riding position;

     (2)  Perform a maneuver where one or more wheels intentionally lift from the ground; or

     (3)  Engage in any other maneuver that endangers the operator or any person."

     SECTION 10.  Section 291C-145, Hawaii Revised Statutes, is amended by amending subsection (g) to read as follows:

     "(g)  [No] A person may ride an electric bicycle on a public sidewalk at a speed not exceeding ten miles per hour if the rider yields to the right-of-way of any pedestrian; provided that no person shall ride [a] an electric bicycle [equipped with a motor] on any sidewalk[.] located within a business district.  The counties may, by ordinance, post bicycle lanes and bicycle paths to prevent persons riding a bicycle equipped with a motor from using them."

     SECTION 11.  Section 291C-150, Hawaii Revised Statutes, is amended by amending subsections (a) and (b) to read as follows:

     "(a)  No person under [sixteen] eighteen years of age shall operate a bicycle upon a street, bikeway, or any other public property unless that person is wearing a properly fitted and fastened bicycle helmet that has been tested by a nationally recognized agency such as the National Highway Traffic Safety Administration, the National Safety Council, or the Children's Safety Network, and is designed to fit the user and protect against head trauma.  This requirement also applies to a person who rides upon a bicycle while in a restraining seat that is attached to the bicycle or who rides in a trailer towed by the bicycle.

     (b)  A person who provides bicycles for hire shall not rent a bicycle to any person unless every person who is under age [sixteen] eighteen is wearing a bicycle helmet, as required in subsection (a), while operating the rented bicycle, occupying a restraining seat that is attached to the rented bicycle, or riding in a trailer towed by the rented bicycle."

     SECTION 12.  Section 291C-197, Hawaii Revised Statutes, is repealed.

     ["§291C-197  Driving mopeds on bicycle lanes and paths.  (a)  Wherever bicycle lanes are provided on the roadway, moped drivers shall use such bicycle lanes.

     (b)  The director of transportation by rule and the counties by ordinance may with respect to bicycle paths under their respective jurisdictions restrict or prohibit the use of such bicycle paths by mopeds.  Signs clearly visible to an ordinarily observant person indicating the restriction or prohibition shall be placed along bicycle paths so designated and every moped driver shall obey the directions thereof.

     (c)  This section shall not apply to a three-wheeled moped."]

PART III

     SECTION 13.  Sections 249-1, 249-9.2, 286-2, 286-81, 286‑81.5, 286-102, 286-102.6, 286-108, 286-109, 286-110, 291-11, 291-22, 291-25, 291-31, 291-31.5, 291C-1, 291C-206, 431:10C-103, 431:10C-304, 431:10C-305, 431:10C-408, 431:10G-101, 431:10G-102, 431:10G-103, 431:10G-104, 431:10G-105, 431:10G-106, 431:10G-107, 431:10G-108, 431:10G-201, 431:10G-202, 431:10G-206, 431:10G-301, 437-7, 437B‑1, 481I-2, and 604A-2, Hawaii Revised Statutes, are amended by substituting the term "motor-driven cycle" or similar term, where the term "motor scooter", or similar term, appears, as the context requires.

PART IV

     SECTION 14.  Section 249-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Motor-driven cycle" means:

     (1)  Every motor vehicle that has a handlebar and seating that requires the operator to straddle or sit astride on the motor vehicle and is designed to travel on no more than three wheels in contact with the ground, but excludes a farm tractor; or

     (2)  Every motor vehicle that has a steering wheel and seating that does not require the operator to straddle or sit astride on the motor vehicle, and is designed to travel on three wheels in contact with the ground, called an autocycle, which is certified by the manufacturer to comply with all applicable Federal Motor Vehicle Safety Standards as of the date of manufacture,

with a motor that produces no more than five horsepower, but excludes a moped."

     SECTION 15.  Section 291-1, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Motor-driven cycle" means:

     (1)  Every motor vehicle that has a handlebar and seating that requires the operator to straddle or sit astride on the motor vehicle and is designed to travel on no more than three wheels in contact with the ground, but excludes a farm tractor; or

     (2)  Every motor vehicle that has a steering wheel and seating that does not require the operator to straddle or sit astride on the motor vehicle, and is designed to travel on three wheels in contact with the ground, called an autocycle, which is certified by the manufacturer to comply with all applicable Federal Motor Vehicle Safety Standards as of the date of manufacture,

with a motor that produces no more than five horsepower, but excludes a moped."

     SECTION 16.  Section 291-21.3, Hawaii Revised Statutes, is amended by adding a new definition to be appropriately inserted and to read as follows:

     ""Motor-driven cycle" means:

     (1)  Every motor vehicle that has a handlebar and seating that requires the operator to straddle or sit astride on the motor vehicle and is designed to travel on no more than three wheels in contact with the ground, but excludes a farm tractor; or

     (2)  Every motor vehicle that has a steering wheel and seating that does not require the operator to straddle or sit astride on the motor vehicle, and is designed to travel on three wheels in contact with the ground, called an autocycle, which is certified by the manufacturer to comply with all applicable Federal Motor Vehicle Safety Standards as of the date of manufacture,

with a motor that produces no more than five horsepower, but excludes a moped."

PART V

     SECTION 17.  Chapter 291C, Hawaii Revised Statutes, is amended by adding a new section to part XII to be appropriately designated and to read as follows:

     "§291C-     Electric motorcycles and motor-driven cycles; operator age.  It shall be unlawful for an individual under the age of eighteen to operate an electric motorcycle or motor‑driven cycle."

PART VI

     SECTION 18.  There is appropriated out of the state highway fund the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the highway development special fund electric mobility device subaccount.

     SECTION 19.  There is appropriated out of the highway development special fund electric mobility device subaccount the sum of $           or so much thereof as may be necessary for fiscal year 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the operations of the electric mobility device rebate program, including the payment of rebates and costs of the administrator; provided that the funds appropriated shall not lapse at the end of the fiscal years for which they were appropriated; provided further that any unencumbered funds remaining shall lapse on June 30, 2028.

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

PART VII

     SECTION 20.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 21.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 22.  This Act shall take effect on July 1, 3000; provided that sections 18 and 19 shall take effect on July 1, 2025.

 

Report Title:

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

 

Description:

Prohibits a person from operating a moped or electric motorcycle in certain areas designated for bicycles.  Renames the Electric Bicycle and Electric Moped Rebate Program to the Electric Mobility Device Rebate Program.  Expands eligibility for the rebate program and amends the maximum rebate amounts.  Reduces the deadline to submit an application to six months from the date of purchase.  Requires applicants who are enrolled in a school, community college, or university to demonstrate a financial need to be eligible for an additional assistance rebate.  Exempts certain class 3 electric bicycles from registration requirements.  Establishes a cap for the Electric Mobility Device subaccount and requirements for transferring funds into the subaccount.  Amends the age requirement for required helmet use from 16 to 18 years of age.  Prohibits a person under the age of fifteen from operating a class 3 electric bicycle.  Establishes rules for electric bicycle operation.  Allows use of electric bicycles on public sidewalks, subject to certain conditions.  Prohibits individuals under 18 years of age from operating an electric motorcycle or motor-driven cycle.  Changes the term "motor scooter" to "motor-driven vehicle".  Requires reports to the Legislature.  Appropriates funds.  Effective 7/1/3000.  (HD2)

 

 

 

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