SB 1092: RELATING TO TRANSPORTATION DEMAND MANAGEMENT.

A BILL FOR AN ACT

RELATING TO TRANSPORTATION DEMAND MANAGEMENT.

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, achieved by promoting alternative modes of transportation, including walking, rolling, skating, biking, or using public transit, carpool, vanpool, and ridesharing.

     The legislature further finds that Hawaii state government employees have limited commuter benefits.  In 2024, the house of representatives passed H.R. No. 191, urging 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 authorization for government employees to use pre-tax paycheck dollars to purchase transit passes and parking pursuant to Internal Revenue Service regulations.  The State indirectly subsidizes employee parking stalls in downtown Honolulu as workplace parking in state facilities at far below market rates for dedicated parking, valued between $130 and $238 per month.  However, the State provides no subsidy to employees who use public transit, carpooling, vanpooling, or walking, rolling, and biking.

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

     The legislature notes that state employee focus groups conducted in July and August 2024 by the Oahu metropolitan planning organization revealed that fifty-four per cent of focus group participants would ride public transit to work if transit passes were fully subsidized or discounted and over fifty-three per cent stated they would walk, bike, or ride a scooter to work with a financial incentive.  The focus groups also revealed that over twenty-two per cent of participants were unaware that they could pay for a public transit pass using pre-tax deductions from their paycheck.  Education, outreach, and promotion are integral to effectively promoting active and shared modes of transportation, which can encourage mode shift and lead to cost savings for state employees.

     The legislature also notes that other jurisdictions, including Redmond, Washington, have implemented transportation demand management programs to reduce vehicle miles traveled and improve employee transportation benefits.  As a result, these jurisdictions have reported increased employee retention and decreased tardiness or absences upon participation in the commuter benefits program.  These parking opt-out programs enable and encourage employees to use active and shared modes of transportation to get to work by offering a financial incentive.  Parking opt-out programs have been shown to decrease employee vehicle miles traveled by as much as twelve per cent.

     Accordingly, the purpose of this Act is to require the department of accounting and general services, in collaboration with the department of transportation, to develop a plan for a comprehensive transportation demand management program for all state government employees to reduce vehicle emissions and miles traveled by single-occupancy vehicles.

     SECTION 2.  (a)  The department of accounting and general services and department of transportation shall collaboratively develop a plan for a comprehensive transportation demand management program for all state government employees.  The plan shall be for a comprehensive transportation demand management program that:

     (1)  Encourages the use of healthy, economical, and environmentally sustainable modes of transportation and discourages the use of single-occupancy commuting;

     (2)  Works collaboratively and in coordination with the Oahu metropolitan planning organization to administer and promote the program;

     (3)  Distributes education and outreach materials to state and private sector employees, promoting the benefits of transportation demand management;

     (4)  Requires all state workplaces to appoint a volunteer employee transportation coordinator to assist with the distribution of educational and marketing materials and provide guidance on encouraging employees to shift modes of commuting; and

     (5)  Requires the department of accounting and general services to:

          (A)  In coordination with county transit agencies, offer fully subsidized public transit and bikeshare passes as a benefit option to all state government employees.  The department shall integrate the public transit and bikeshare passes with employee badges in accordance with existing transit pass badging programs; and

          (B)  Authorize and develop a parking opt-out program, providing a financial incentive, as determined by the department, to employees who opt out of offered parking at state parking facilities.

     (b)  One permanent full-time equivalent (1.0 FTE) transportation demand management program co-administrator position shall be established in each of the following:

     (1)  Department of accounting and general services; and

     (2)  Department of transportation;

to oversee the development of the plan for a comprehensive transportation demand management program pursuant to this Act.

     SECTION 3.  The department of accounting and general services, in coordination with the department of transportation, shall submit a report of its findings and recommendations on the plan for a comprehensive transportation demand management program, including any proposed legislation, to the legislature no later than twenty days prior to the convening of the regular session of 2026.

     SECTION 4.  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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the development of a plan for a comprehensive transportation demand management program, including two permanent full-time (2.0 FTE) co-administrator positions, pursuant to this Act.

     The sums appropriated shall be expended, respectively, by the:

     (1)  Department of accounting and general services; and

     (2)  Department of transportation;

for the purposes of this Act.

     SECTION 5.  This Act shall take effect on January 1, 2491.

Report Title:

DAGS; DOT; Oahu Metropolitan Planning Organization; State Employees; Commuting; Transportation Demand Management Program; Planning; Positions; Report; Appropriations

Description:

Requires the Department of Accounting and General Services and Department of Transportation to develop a plan for a Comprehensive Transportation Demand Management Program to reduce vehicle emissions and miles traveled by single-occupancy vehicles.  Establishes two permanent full-time equivalent (2.0 FTE) co-administrator positions, one in the Department of Accounting and General Services and one in the Department of Transportation.  Requires a report to the Legislature.  Appropriates funds.  Effective 1/1/2491.  (SD1)

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 Demand Management.

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, achieved by promoting alternative modes of transportation, including walking, rolling, skating, biking, or using public transit, carpool, vanpool, and ridesharing.

     The legislature further finds that Hawaii state government employees have limited commuter benefits.  In 2024, the house of representatives passed House Resolution No. 191, urging 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 authorization for government employees to use pre-tax paycheck dollars to purchase transit passes and parking pursuant to Internal Revenue Service regulations.  The State indirectly subsidizes employee parking stalls in downtown Honolulu as workplace parking in state facilities at far below market rates for dedicated parking, valued between $130-$238 per month.  However, the State provides no subsidy to employees who use public transit, carpooling, vanpooling, or walking, rolling, and biking.

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

     The legislature notes that state employee focus groups conducted in July and August 2024 by the Oahu metropolitan planning organization revealed that fifty-four per cent of focus group participants would ride public transit to work if transit passes were fully subsidized or discounted and forty-eight per cent stated they would walk, bike, or ride a scooter to work with a financial incentive.  The focus groups also revealed that almost thirty per cent of participants were unaware that they could pay for a public transit pass using pre-tax deductions from their paycheck.  Education, outreach, and promotion are integral to effectively promoting active and shared modes of transportation, which can encourage mode shift and lead to cost savings for state employees.

     The legislature also notes that other jurisdictions, including Redmond, Washington, have implemented transportation demand management programs to reduce vehicle miles traveled and improve employee transportation benefits.  As a result, these jurisdictions have reported increased employee retention and decreased tardiness or absences upon participation in the commuter benefits program.  These parking opt-out programs enable and encourage employees to use active and shared modes of transportation to get to work by offering a financial incentive.  Parking opt-out programs have been shown to decrease employee vehicle miles traveled by as much as twelve per cent.

     Accordingly, the purpose of this Act is to require the department of accounting and general services, in collaboration with the department of human resources development, and in coordination with the Oahu metropolitan planning organization, to establish and implement a comprehensive transportation demand management program for all state government employees to reduce vehicle emissions and miles traveled by single-occupancy vehicles.

     SECTION 2.  (a)  The departments of accounting and general services and human resources development shall collaboratively establish, develop, and implement a comprehensive transportation demand management program for all state government employees within the department of accounting and general services for administrative purposes.  The program shall encourage the use of healthy, economical, and environmentally sustainable modes of transportation and discourage the use of single-occupancy commuting.

     (b)  One permanent full-time equivalent (1.0 FTE) transportation demand management program co-administrator position shall be established in the:

     (1)  Department of accounting and general services; and

     (2)  Department of human resources development;

to oversee the development and implementation of the comprehensive transportation demand management program pursuant to this Act.

     (c)  The comprehensive transportation demand management program shall work collaboratively and in coordination with the Oahu metropolitan planning organization to administer and promote the program.  The program shall also distribute education and outreach materials to state and private sector employees, promoting the benefits of transportation demand management.

     (d)  All state workplaces shall appoint a volunteer employee transportation coordinator.  The transportation demand management program's co-administrators, pursuant to subsection (b), shall host a meeting with the volunteer transportation coordinators not less than once per month to assist with the distribution of educational and marketing materials and provide guidance on encouraging employees to shift modes of commuting.

     (e)  Pursuant to the requirements in this Act, the department of accounting and general services shall:

     (1)  In coordination with county transit agencies, offer fully subsidized public transit and bikeshare passes as a benefit option to all state government employees.  The department shall integrate the public transit and bikeshare passes with employee badges in accordance with existing transit pass badging programs; and

     (2)  Authorize and develop a parking opt-out program, providing a financial incentive, as determined by the department, to employees who opt out of offered parking at state parking facilities.

     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 2025-2026 and the same sum or so much thereof as may be necessary for fiscal year 2026-2027 for the transportation demand management program, including:

     (1)  Two permanent full-time (2.0 FTE) co-administrator positions, pursuant to this Act;

     (2)  Full subsidization of public transit and bikeshare passes for all state employees; and

     (3)  A financial incentive for employees who opt out of parking, as determined by the department of accounting and general services.

     The sums appropriated shall be expended, respectively, by the:

     (1)  Department of accounting and general services; and

     (2)  Department of human resources development;

for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2025.

Report Title:

DAGS; DHRD; Oahu Metropolitan Planning Organization; State Employees; Commuting; Transportation Demand Management Program; Benefits; Parking Opt-Out; Bikeshare; Appropriation

Description:

Establishes a transportation demand management program to reduce vehicle emissions and miles traveled by single-occupancy vehicles.  Establishes 2 permanent full-time equivalent (2.0 FTE) co-administrator positions, 1 in the department accounting and general services and 1 in the Department of Human Resources Development.  Subsidizes public transit and bikeshare passes for state employees.  Authorizes incentives for parking opt-out.  Appropriates moneys.

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. 668

Honolulu, Hawaii

RE:    S.B. No. 1092

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

     Your Committees on Government Operations and Transportation and Culture and the Arts, to which was referred S.B. No. 1092 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION DEMAND MANAGEMENT,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Require the Department of Accounting and General Services, in collaboration with the Department of Human Resources Development, and in coordination with the Oahu Metropolitan Planning Organization, to establish, develop, and implement a Comprehensive Transportation Demand Management Program for all state government employees to reduce vehicle emissions and miles traveled by single-occupancy vehicles;

     (2)  Establish two permanent full-time equivalent (2.0 FTE) Co-Administrator positions, one in the Department of Accounting and General Services and one in the Department of Human Resources Development;

     (3)  Subsidize public transit and bikeshare passes for state employees;

     (4)  Authorize incentives for parking opt-out; and

     (5)  Appropriate funds.

     Your Committees received testimony in support of this measure from the Hawaii State Energy Office; Office of Planning and Sustainable Development; Hawaiʻi Climate Change Mitigation and Adaptation Commission; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi Appleseed Center for Law and Economic Justice; Ulupono Initiative; Hawaiʻi Bicycling League; Oahu Metropolitan Planning Organization; and six individuals.

     Your Committees received comments on this measure from the Department of Human Resources Development, Department of Accounting and General Services, Department of the Attorney General, and one individual.

     Your Committees find that the State aims to reduce vehicle emissions but does not currently offer any compelling incentives to state employees to reduce their reliance on ground transportation, a significant pollutant.  By only subsidizing onsite parking, the State implicitly supports the continued use of single-occupancy vehicles.  Surveys demonstrate that state employees are open to alternative, cleaner, healthier forms of transportation if offered incentives such as subsidized public transit passes.  This measure establishes such incentives through a Comprehensive Transportation Demand Management Program.

     Your Committees have amended this measure by:

     (1)  Requiring the Department of Transportation, rather than the Department of Human Resources Development, to collaborate with the Department of Accounting and General Services to develop a plan for a Comprehensive Transportation Demand Management Program;

     (2)  Deleting language that would have required the implementation of a Comprehensive Transportation Demand Management Program;

     (3)  Inserting language that requires the Department of Accounting and General Services, in coordination with the Department of Transportation, to submit a report to the Legislature before the Regular Session of 2026;

     (4)  Establishing one permanent full-time equivalent (1.0 FTE) Transportation Demand Management Program Co-Administrator position in the Department of Transportation, rather than the Department of Human Resources Development;

     (5)  Deleting language that would have required the Departments of Accounting and General Services to offer to all state government employees and that would have appropriated funds for:

          (A)  A full subsidization of public transit and bikeshare passes; and

          (B)  A financial incentive for employees who opt out of parking;

     (6)  Replacing the Department of Human Resources Development with the Department of Transportation, as one of the expending agencies of the appropriated funds;

     (7)  Amending section 1 to reflect its amended purpose;

     (8)  Inserting an effective date of January 1, 2491, to encourage further discussion; and

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

     As affirmed by the records of votes of the members of your Committees on Government Operations and Transportation and Culture and the Arts that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1092, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 1092, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Government Operations and Transportation and Culture and the Arts,