HOUSE OF REPRESENTATIVES |
H.B. NO. |
670 |
THIRTY-THIRD LEGISLATURE, 2025 |
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STATE OF HAWAII |
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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 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,
and an electric motor of seven hundred fifty watts or less 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, skateboard, board riding on a single or double wheels, 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 no less than twelve miles and maximum speed of
twenty-eight miles per hour, on which a person may reasonably commute to and
from regular destinations.
"Electric mobility device"
means an adaptive electric bicycle, electric bicycle, electric micro-mobility
device, or electric mopeds."
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)] (k) 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, whichever amount is
lower;] $750; provided that no individual shall receive more than [$500]
$750 in total rebates each fiscal year[.] unless also qualifying
for the additional assistance rebate pursuant to subsection (j), in which case no
individual shall receive more than $1,500 in total rebates each fiscal
year. No non-profit organization shall
receive more than $10,000 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 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)
The department of transportation may establish a retailer application
and portal to provide rebates directly at the point of sale to expedite the
rebate process.
[(e)]
(f) 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)]
(g) 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)]
(h) 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.
(i)
In administering the
electric mobility device rebate program, the department of transportation shall
provide rebates to:
(2) Non-profit
organizations who are registered in the State who purchase one or more new
qualifying electric bicycles, electric mopeds, or electric micro-mobility
devices.
[(h)]
(j) 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, 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, 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.
[(i)]
(k) 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 may pay rebates to each rebate applicant from moneys transferred
pursuant to subsection (k) from the electric mobility device subaccount within
the highway development special fund.
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 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,
promotion, and reporting of the electric [bicycle and electric moped]
mobility device rebate program.
(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 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. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 6. This Act shall take effect on July 1, 2025.
INTRODUCED BY: |
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Report Title:
Department of Transportation; Rebate; Electric Mobility Subaccount; Electric Mobility Device Rebate Program
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.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.