SB1117 SD2

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 statute, 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, for those family members who are able.

The legislature also finds that, since its inception, the current electric bicycle and 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 individuals under the age of fifteen from operating certain electric bicycles;

(2) Prohibit individuals under the age of eighteen from operating electric motorcycles or motor-driven vehicles;

(3) Help reduce the cost of transportation and the traffic on Hawaii's roads by improving the existing electric bicycle and moped rebate program, facilitating the purchase and use of adaptive electric bicycles for persons with disabilities, and expanding eligibility and rebates for electric bicycles to more closely mirror similar successful programs;

(4) Rename and clarify the source of funding for the electric bicycle and moped rebate program;

(5) Allow for the registration of class 3 electric bicycles that have wheels smaller than twenty inches and that are intended for adult use;

(6) Require the use of bicycle helmets for persons under eighteen years of age;

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

(8) Prohibit electric motorcycles and mopeds from driving in bicycle lanes;

(9) Align electric motorcycle requirements with motorcycle and motor scooter insurance and licensing requirements;

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

(11) Require electric bicycle operators on public streets to follow certain safety requirements.

PART II

SECTION 2. 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 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, a saddle or seat for the rider, an electric motor not to exceed seven hundred and fifty watts, and that meets the requirements of one of the following three classes:

(1) Class 1 electric bicycle, which is 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 electric bicycle, which is 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 electric bicycle, which is 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.

"Electric micro-mobility device" means any ground transportation device, such as a standing scooter or similar device, that is powered either exclusively by electricity from a battery charged from an external source, or by electricity from a battery charged from an external source in addition to human power, which is designed to transport a single person, with a range not less than fifteen miles and maximum speed of twenty‑eight miles per hour, on which a person may reasonably commute to and from regular destinations.

"Electric motorcycle" means any electric vehicle having a seat or saddle for rider use, designated to travel on not more than three wheels in contact with the ground, with 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 3. Section 291C-1, Hawaii Revised Statutes, is amended by adding two new definitions to be appropriately inserted and to read as follows:

""Electric bicycle" shall have the same meaning as in section 196-2.

"Electric motorcycle" shall have the same meaning as in section 196-2."

SECTION 4. Section 196-7.8, Hawaii Revised Statutes, is amended to read as follows:

"[[]§196-7.8[]] Electric [~~bicycle and electric moped~~] mobility 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, adaptive electric bicycle, or electric micro-mobility device shall receive a rebate of either [~~twenty per cent of the retail cost or $500,~~] fifty per cent of the retail cost or $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 each fiscal year.

(c) The department of transportation shall not issue more than [~~$700,000~~] $2,000,000 in total rebates under this section each fiscal year; provided that the electric [~~bicycle and electric moped~~] mobility 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[.], adaptive electric bicycle, or electric micro-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 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) To be eligible to claim a rebate from the electric mobility 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 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;

(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, adaptive electric bicycle, or electric micro-mobility device, which may be audited by the department of transportation; or

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

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 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 been appropriated by the legislature, transferred from the electric mobility subaccount within the highway development special fund, 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~~] may provide administration, promotion, and reporting of the electric [~~bicycle and electric moped~~] mobility rebate program.

(k) 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 196-2, that is intended for adult use, and that has two tandem wheels that are less than twenty inches in diameter is not 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 for which the fee is paid, in the owner's name, and furnish the owner with a metallic tag or decal for each bicycle, which shall be attached to the bicycle. The decal shall be affixed to a 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 subaccount. The department shall expend moneys in the subaccount for the purposes of funding the electric [~~bicycle and electric moped~~] mobility rebate program established pursuant to section 196-7.8."

SECTION 7. 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 8. 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~~] a class 3 electric bicycle as defined [~~under title 15 United States Code section 2085.~~] in section 196-2.

(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 9. 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; provided that no person shall ride [a] an electric bicycle [~~equipped with a motor~~] on any sidewalk[.] located within a business district; provided further that the electric bicycle shall not exceed a speed of ten miles per hour; provided further that the rider shall use safe yielding behavior. 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 10. 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 11. Section 291C-197, Hawaii Revised Statutes, is amended to read as follows:

"§291C-197 Driving mopeds and electric motorcycles on bicycle lanes and paths[.]; prohibited. [~~(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.~~] 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."

PART III

SECTION 12. The purpose of this part is to require a person operating an electric motorcycle in the State to carry an insurance policy.

SECTION 13. Section 431:10G-101, Hawaii Revised Statutes, is amended by amending its title to read as follows:

"ARTICLE 10G

MOTORCYCLE, ELECTRIC MOTORCYCLE, AND MOTOR SCOOTER INSURANCE"

SECTION 14. Section 431:10G-101, Hawaii Revised Statutes, is amended as follows:

1. By adding two new definitions to be appropriately inserted and to read:

""Electric motorcycle" shall have the same meaning as defined in section 291C-1.

"Electric motorcycle accident" means an accident arising out of the operation, maintenance, or use of an electric motorcycle, but not involving a motor vehicle."

2. By amending the definition of "accidental harm" to read:

""Accidental harm" means bodily injury, death, sickness, or disease caused by a motorcycle accident, electric motorcycle accident, or motor scooter accident to a person."

3. By amending the definition of "owner" to read:

""Owner" means a person who holds the legal title to a motorcycle, electric motorcycle, or motor scooter; except that when a motorcycle, electric motorcycle, or motor scooter is the subject of a security agreement or lease with a term of not less than one year, with the debtor or lessee having the right of possession, [~~the term owner~~] "owner" shall mean the debtor or lessee. Whenever transfer of title to a motorcycle or motor scooter occurs, the seller shall be considered the owner until delivery of the executed title to the buyer. Upon delivery of the executed title, the buyer holding the equitable title shall be considered the owner."

SECTION 15. Section 431:10G-102, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-102 Conditions of operation and registration of motorcycles, electric motorcycles, and motor scooters. No person shall drive a motorcycle, electric motorcycle, or motor scooter upon any public street, road, or highway of this State at any time unless [~~such~~] the motorcycle, electric motorcycle, or motor scooter is insured at all times under a liability policy as provided in section 431:10G-301; provided that this article shall not apply to any [~~antique~~] motorcycle or motor scooter that is an antique motor vehicle as defined in section 249-1."

SECTION 16. Section 431:10G-103, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-103 Motorcycle, electric motorcycle, or motor scooter self-insurance. The motorcycle, electric motorcycle, or motor scooter insurance required by section 431:10G-102 may be satisfied by any owner of a motorcycle, electric motorcycle, or motor scooter if:

(1) [~~Such~~] The owner provides proof of qualifications as a self-insurer, and a surety bond or other securities affording security substantially equivalent to that afforded under a policy meeting the requirements of section 431:10G-301 and providing coverage at all times for the entire motorcycle, electric motorcycle, or motor scooter registration period, as determined and approved by the commissioner under rules; and

(2) The commissioner is satisfied that in case of injury, death, or property damage, any claimant would have the same rights against [~~such~~] the owner as the claimant would have had if a policy meeting the requirements of section 431:10G-301 had been applicable to [~~such~~] the motorcycle, electric motorcycle, or motor scooter."

SECTION 17. Section 431:10G-104, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Any person seeking to obtain the liability coverage required by this part after June 7, 1989, shall first:

(1) Have obtained a valid motorcycle, electric motorcycle, or motor scooter license; or

(2) Have obtained a valid motorcycle, electric motorcycle, or motor scooter learner's permit and have taken and passed a motorcycle education course approved by the department of transportation."

SECTION 18. Section 431:10G-105, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-105 Tort liability. (a) With respect to accidental harm incurred in or arising out of a motorcycle accident, electric motorcycle accident, or motor scooter accident, tort liability is not abolished.

(b) Any owner or operator of a motorcycle, electric motorcycle, or motor scooter involved in a motor vehicle accident as defined in section 431:10C-103 and who incurs accidental harm as defined in section 431:10C-103, including such person's representative or legal guardian, shall have a cause of action in tort as provided in section 431:10C-306."

SECTION 19. Section 431:10G-106, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-106 Verification of insurance. Every insurer shall issue to each of its insureds a paper or electronic proof of insurance card for each motorcycle, electric motorcycle, or motor scooter for which a liability policy under this article is written. The electronic proof of insurance card may be accessed directly through the licensed insurer's website, application, or database. The proof of insurance card shall show the following:

(1) Name, make, year, and factory or serial number of the motorcycle, electric motorcycle, or motor scooter; provided that insurers of five or more motorcycles, electric motorcycles, or motor scooters that are under common registered ownership and used in the regular course of business shall not be required to indicate the name, make, year, and the factory or serial number of each motorcycle, electric motorcycle, or motor scooter;

(2) Policy number;

(3) Names of the insured and the insurer; and

(4) Effective dates of coverage including the expiration date.

The proof of insurance card shall be carried on, or accessible on a mobile electronic device, as defined in section 291C-137, by the person operating the insured motorcycle, electric motorcycle, or motor scooter at all times and shall be exhibited to a law enforcement officer upon demand."

SECTION 20. Section 431:10G-108, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-108 Penalties. Any person who violates this article shall be subject to a citation by the police and shall be subject to a nonsuspendable fine of not less than $100 nor more than $1,000, thirty days imprisonment, a one year driver's license suspension, or any combination thereof, for each violation.

Any person cited under this section shall have an opportunity to present a good faith defense, including but not limited to lack of knowledge or proof of insurance. The general penalty provision of this section shall not apply to:

(1) Any operator of a motorcycle, electric motorcycle, or motor scooter owned by another person if the operator's own insurance covers such driving;

(2) Any operator of a motorcycle, electric motorcycle, or motor scooter owned by that person's employer during the normal scope of that person's employment; or

(3) Any operator of a borrowed motorcycle, electric motorcycle, or motor scooter if the operator holds a "reasonable belief that the subject vehicle is insured."

SECTION 21. Section 431:10G-201, Hawaii Revised Statutes, is amended by amending it title and subsection (a) to read as follows:

"§431:10G-201 Making of motorcycle, electric motorcycle, and motor scooter insurance rates. (a) All premium rates for motorcycle, electric motorcycle, and motor scooter insurance shall be made in accordance with the following provisions:

(1) Rates shall not be excessive, inadequate, or unfairly discriminatory;

(2) Due consideration shall be given to:

(A) Past and prospective loss experience within and outside this State, catastrophe hazards, if any, reasonable margin for profit, and contingencies, dividends, savings, or unabsorbed premium deposits allowed or returned by insurers to their policyholders, members, or subscribers;

(B) Past and prospective expenses both country-wide and those specially applicable to this State in the sale and administration of [~~motorcycles~~] motorcycle, electric motorcycle, and motor [~~scooters~~] scooter insurance; and

(C) Investment income from reserves, unearned insurance premiums, and other unearned proceeds received on account of motorcycle, electric motorcycle, and motor scooter insurance sold, and all other factors that may be deemed relevant, if they are established to have a probable effect upon losses, expense, or rates, [~~such as~~] including but not limited to types of vehicles, occupations, and involvement in past accidents;

(3) The systems of expense provisions included in the rates for use by any insurer or group of insurers may differ from those of other insurers or groups of insurers to reflect the requirements of the operating methods of any insurer or group with respect to any class of insurance, or with respect to any subdivision or combination thereof for which subdivision or combination separate expense provisions are applicable; and

(4) Risks may be grouped by classifications for the establishing of rates and minimum premiums. Classification rates may be modified to produce rates for individual risks in accordance with rating plans which establish standards for measuring variations in hazards or expense provisions, or both. The standards may measure any differences among risks that can be demonstrated to have a probable effect upon losses or expenses."

SECTION 22. Section 431:10G-202, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

"(a) Every insurer shall file with the commissioner every manual of classification, rule, rate, rating plan, designation of rating territories, or standard for motorcycle, electric motorcycle, or motor scooter insurance which it proposes to use. Every filing shall state the proposed effective date of the filing and the character and extent of the coverage contemplated."

SECTION 23. Section 431:10G-206, Hawaii Revised Statutes, is amended to read as follows:

"§431:10G-206 Rate administration. Except as otherwise provided in this article, the commissioner shall implement and evaluate motorcycle, electric motorcycle, and motor scooter insurance rates in compliance with article 14."

SECTION 24. Section 431:10G-301, Hawaii Revised Statutes, is amended as follows:

1. By amending its title and subsection (a) to read:

"§431:10G-301 Required motorcycle, electric motorcycle, and motor scooter policy coverage. (a) An insurance policy covering a motorcycle, electric motorcycle, or motor scooter shall provide insurance in the following amounts to pay, on behalf of the owner or any operator of the insured motorcycle, electric motorcycle, or motor scooter, sums that the owner or any operator may legally be obligated to pay for injury, death, or damage to the property of others, except property owned by, being transported by, or in charge of the insured that arise out of the ownership, operation, maintenance, or use of the motorcycle, electric motorcycle, or motor scooter:

(1) Liability coverage of not less than $20,000 per person, with an aggregate limit of $40,000 per accident, for all damages arising out of accidental harm sustained as a result of any one accident; and

(2) Liability coverage of not less than $10,000 for all damages arising out of injury to or destruction of property, including motorcycles, electric motorcycles, or motor scooters and including the loss of use thereof, but not including property owned by, being transported by, or in the charge of the insured, as a result of any one accident."

2. By amending subsection (c) to read:

"(c) Any operator or passenger of a motorcycle, electric motorcycle, or motor scooter as defined in section 286-2 who receives injuries or dies in a motor vehicle accident may not claim personal injury protection benefits under a motor vehicle insurance policy, unless expressly provided for in the motor vehicle policy."

PART IV

SECTION 25. Sections 249-1, 249-9.2, 286-2, 286-81, 286‑81.5, 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-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 V

SECTION 26. 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 it 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 it, 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 27. 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:

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

SECTION 28. 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:

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

PART VI

SECTION 29. 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 VII

SECTION 30. 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 subaccount.

SECTION 31. There is appropriated out of the highway development special fund electric mobility 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 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 year 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 VIII

SECTION 32. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

SECTION 33. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 34. This Act shall take effect on July 1, 2050; provided that sections 26 and 27 shall take effect on July 1, 2025.

THE SENATE	S.B. NO.	1117
THIRTY-THIRD LEGISLATURE, 2025		S.D. 2
STATE OF HAWAII