HB 2034: DOT; Public Transit Passes; Department Employees; Pilot Program; Appropriation

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 ground transportation makes up thirty-eight per cent of transportation emissions in the State and light-duty vehicles make up eighty-five per cent of those emissions.  The legislature recognizes that reducing vehicle miles traveled by commuters will be a key component to meeting the State's decarbonization goals and legal requirements outlined in Navahine F. v. Hawaii Department of Transportation (Hawaii Cir. Ct. 2024), which can be achieved by promoting the use of public transit.

     The legislature further finds that state employees have limited commuter benefits.  In 2024, the house of representatives adopted House Resolution No. 191, Regular Session of 2024, which urged the department of accounting and general services and department of human resources development to evaluate subsidizing public transit for public employees.  Currently, the only transportation benefit the State offers is a pre-tax deduction of a state employee's paycheck to purchase a transit pass or pay for parking as allowed by the Internal Revenue Service.  The State indirectly subsidizes employee parking stalls in downtown Honolulu on average between $130 to $238 a month and provides no subsidy for employees using public transit, carpooling, walking, biking, and other modes of transportation that reduce transportation emissions.

     The legislature also finds that opting for public transit and active modes of transportation over private vehicles for commutes can help employees save money on fuel, insurance, parking, and vehicle maintenance costs, which can also help reduce the cost of living.  Additionally, active modes of transportation can enhance quality of life, health, and well-being through physical activity.

     The legislature also finds that state employee focus groups conducted in July and August of 2024 by the Oahu metropolitan planning organization revealed that fifty-four per cent of respondents would ride public transit to work if public transit passes were fully subsidized or discounted and forty-eight per cent of respondents stated they would walk, ride a bike, or scooter to work with a financial incentive.

     The legislature notes that other jurisdictions such as Redmond, Washington and Nashville, Tennessee have successfully implemented free public transportation options for government employees.  These jurisdictions have also reported increased employee retention and decreased tardiness or absences upon participating in the commuter benefits program.

     Accordingly, the purpose of this Act is to require and appropriate funds for the department of transportation to establish a one-year pilot program to offer fully subsidized transit passes for department employees.

     SECTION 2.  (a)  The department of transportation shall, in coordination with each county's transportation agency or department, establish a one-year pilot program to offer fully subsidized public transit passes as a benefit option for all department of transportation employees.  The public transit passes shall be integrated into department employee badges in accordance with existing transit pass badging programs.

     (b)  The department of transportation shall submit a report of its findings and recommendations, including any proposed legislation, related to the implementation of and participation in the pilot program to the legislature no later than twenty days prior to the convening of the regular session of 2027.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $150,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

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

     SECTION 4.  There is appropriated out of the state highway fund established pursuant to section 248-8, Hawaii Revised Statutes, the sum of $150,000 or so much thereof as may be necessary for fiscal year 2026-2027 for the department of transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

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

     SECTION 5.  This Act shall take effect on July 1, 3000.

Report Title:

DOT; Public Transit Passes; Department Employees; Pilot Program; Appropriation

Description:

Requires and appropriates funds for the Department of Transportation to establish a pilot program to offer fully subsidized public transit passes for department employees.  Requires a report to the Legislature.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 ground transportation makes up thirty-eight per cent of transportation emissions in the State and light-duty vehicles make up eighty-five per cent of those emissions.  The legislature recognizes that reducing vehicle miles traveled by commuters will be a key component to meeting the State's decarbonization goals and legal requirements outlined in the Navahine F. v. Hawaii Department of Transportation, which can be achieved by promoting the use of public transit.

     The legislature further finds that state employees have limited commuter benefits.  In 2024, the house of representatives adopted House Resolution No. 191, Regular Session of 2024, which urged the department of accounting and general services and department of human resources development to evaluate subsidizing public transit for public employees.  Currently, the only transportation benefit the State offers is a pre-tax deduction of a state employee's paycheck to purchase a transit pass or pay for parking as allowed by the Internal Revenue Service.  The State indirectly subsidizes employee parking stalls in downtown Honolulu on average between $130 to $238 a month, and provides no subsidy for employees using public transit, carpooling, walking, biking, and other modes of transportation that reduce transportation emissions.

     The legislature also finds that opting for public transit and active modes of transportation over private vehicles for commutes can help employees save money on fuel, insurance, parking, and vehicle maintenance costs, which can also help reduce the cost of living.  Additionally, active modes of transportation can enhance quality of life, health, and wellbeing through physical activity.

     The legislature also finds that state employee focus groups conducted in July and August of 2024 by the Oahu metropolitan planning organization revealed that fifty-four per cent of respondents would ride public transit to work if public transit passes were fully subsidized or discounted and forty-eight per cent of respondents stated they would walk, ride a bike, or scooter to work with a financial incentive.

     The legislature notes that other jurisdictions such as Redmond, Washington and Nashville, Tennessee have successfully implemented free public transportation options for government employees.  These jurisdictions have also reported increased employee retention and decreased tardiness or absences upon participating in the commuter benefits program.

     Accordingly, the purpose of this Act is to require and appropriate funds for the department of transportation to establish a pilot program to offer fully subsidized transit passes for department employees.

     SECTION 2.  The department of transportation shall, in coordination with each county's transportation agency or department, establish a pilot program to offer fully subsidized public transit passes as a benefit option for all department of transportation employees.  The public transit passes shall be integrated into department employee badges in accordance with existing transit pass badging programs.

     SECTION 3.  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 2026-2027 for the department of transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

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

     SECTION 4.  This Act shall take effect on July 1, 2026.

Report Title:

DOT; Public Transit Passes; Department Employees; Pilot Program; Appropriation

Description:

Requires and appropriates funds for the Department of Transportation to establish a pilot program to offer fully subsidized public transit passes for department employees.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO.  129-26

Honolulu, Hawaii

                , 2026

RE:   H.B. No. 2034

      H.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

     Your Committee on Transportation, to which was referred H.B. No. 2034 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose of this measure is to require and appropriate funds for the Department of Transportation to establish a pilot program to offer fully subsidized public transit passes as a benefit option for department employees.

     Your Committee received testimony in support of this measure from the Department of Health; Department of Transportation; Oahu Metropolitan Planning Organization; Department of Transportation Services for the City and County of Honolulu; United Public Workers, AFSCME Local 646, AFL-CIO; Imua Alliance; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; 350Hawaii.org; Greenpeace Hawaii; and Earthjustice.  Your Committee received comments on this measure from the Department of the Attorney General.

     Your Committee finds that ground transportation accounts for a significant portion of greenhouse gas emissions in the State, with light-duty vehicles contributing the majority of those emissions.  Reducing vehicle miles traveled by promoting public transit and active transportation is essential to achieving Hawaii's decarbonization goals.  Furthermore, despite this need, state employees currently receive limited commuter benefits, with the State subsidizing parking but offering no equivalent support for transit or active commuting.  By establishing a pilot program that offers fully subsidized transit passes for Department of Transportation employees, this measure would reduce emissions and lower employee commuting costs.

     Your Committee has amended this measure by:

     (1)  Clarifying that the pilot program is for one year;

     (2)  Requiring the Department of Transportation to submit a report regarding the pilot program prior to the Regular Session of 2027;

     (3)  Inserting an appropriation amount of $150,000 out of general funds for the pilot program;

     (4)  Adding an appropriation of $150,000 out of the State Highway Fund for the pilot program;

     (5)  Changing the effective date to July 1, 3000, to encourage further discussion; and

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

     Your Committee further requests the Department of Transportation to consider including in its report on the pilot program to the Legislature findings on expanding the subsidized transit passes statewide for public employees, including implementation and cost considerations by county.

     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 H.B. No. 2034, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2034, H.D. 1, and be referred to your Committee on Labor.

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