STAND. COM. REP. NO. 1236

Honolulu, Hawaii

, 2025

RE: S.B. No. 1117

S.D. 2

H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Madame:

Your Committee on Transportation, to which was referred S.B. No. 1117, S.D. 2, entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Rename the Electric Bicycle and Electric Moped Rebate Program to Electric Mobility Rebate Program and expand eligibility for and increase the maximum rebate amounts under the Rebate Program;

(2) Specify that a class 3 electric bicycle with two tandem wheels that are less than twenty inches in diameter is not required to be registered;

(3) Increase the age for required helmet use to operate an electric foot scooter or a bicycle from sixteen to eighteen years of age;

(4) Prohibit persons under the age of fifteen from operating class 3 electric bicycles;

(5) Require all electric bicycles to be operated only with all wheels on the ground at all times, with certain exceptions;

(6) Prohibit certain actions while operating an electric bicycle;

(7) Authorize the use of electric bicycles on public sidewalks under certain conditions;

(8) Prohibit a person from operating a moped or electric motorcycle on a bicycle path, bicycle lane, or any other path or roadway designated for bicycle use;

(9) Require insurance for electric motorcycles by including electric motorcycles into the insurance laws governing motorcycles and motor scooters;

(10) Substitute the term "motor-driven cycle" with the term "motor scooter"; and

(11) Prohibit an individual under the age of eighteen from operating an electric motorcycle or motor-driven cycle.

Your Committee received testimony in support of this measure from the Department of Transportation; Office of Climate Change Sustainability and Resiliency of the City and County of Honolulu; Department of Transportation Services of the City and County of Honolulu; Oahu Metropolitan Planning Organization; Hawai‘i Bicycling League; Keiki Injury Prevention Coalition; The Kapiolani Medical Center for Women and Children Level III Pediatric Trauma Center; Hawai‘i Appleseed Center for Law & Economic Justice; Ulupono Initiative; Kapiolani Medical Center for Women and Children; and one individual. Your Committee received comments on this measure from two individuals.

Your Committee finds that electric bicycles, electric mopeds, and other electric mobility devices offer a more affordable, environmentally friendly alternative to gas-powered vehicles. Your Committee believes that enhancing the electric mobility device rebate program by increasing the rebate amount and expanding eligibility will further alleviate transportation costs and foster the adoption of more sustainable transportation options for residents.

Your Committee has amended this measure by:

(1) Amending the definition of "electric bicycle" and making "class 1 electric bicycle", "class 2 electric bicycle", and "class 3 electric bicycle" separate definitions;

(2) Amending the definition of "electric micro mobility device";

(3) Defining "high-speed electric device";

(4) Specifying that certain recipients of the rebate shall not receive more than $1,500 in total rebates within any three consecutive fiscal years;

(5) Changing the date when electric bicycles, electric mopeds, adaptive electric bicycles, and electric micro‑mobility devices were purchased to qualify for a rebate from July 1, 2022, to July 1, 2023;

(6) Reducing the deadline to submit an application for a rebate from twelve months to six months after the purchase date;

(7) Authorizing the Rebate Program Administrator to authorize grants, subject to the approval of the Director of Transportation or their designee, if an individual applies after the six-month period but within twelve months of the purchase date;

(8) Requiring, rather than authorizing, the Department of Transportation to audit an affidavit verifying that an eligible applicant does not own a registered motor vehicle with four or more wheels;

(9) Clarifying that an eligible applicant for the additional assistance rebate who is enrolled in school, community college, or university and demonstrates a financial need and authorizing the Director of Transportation to grant exemptions to this requirement;

(10) Specifying that any modification or alteration to an electric bicycle or electric micro-mobility device after purchase will result in the disqualification of the rebate and requiring the recipient to repay the rebate received;

(11) Establishing a cap for the Electric Micromobility Device Subaccount;

(12) Requiring the Department of Transportation to transfer no less than $700,000 but no more than $1,500,000 into the Electric Mobility Device Subaccount;

(13) Deleting language that would have required insurance for electric motorcycles by including electric motorcycles into the insurance laws governing motorcycles and motor scooters; and

(14) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

As affirmed by the record of votes of the members of your Committee on Transportation that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1117, S.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1117, S.D. 2, H.D. 1, and be referred to your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs.

Respectfully submitted on behalf of the members of the Committee on Transportation,

____________________________

DARIUS KILA, Chair