SB 2993: DHRD; Public Transit Passes; State Employees

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 settlement agreement for 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 H.R. No. 191 (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 human resources development to offer fully subsidized transit passes for all state employees.

     SECTION 2.  Chapter 76, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§76-     Subsidized public transit passes; state employees.  The department of human resources development shall, in coordination with each county's transportation agency or department, offer fully subsidized public transit passes as a benefit option for all state employees.  The public transit passes shall be integrated into 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 to offer fully subsidized public transit passes as a benefit option for all state employees.

     The sum appropriated shall be expended by the department of human resources development for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on January 1, 2077.

Report Title:

DHRD; Public Transit Passes; State Employees

Description:

Requires and appropriates funds for the Department of Human Resources Development to offer fully subsidized public transit passes for state employees.  Effective 1/1/2077.  (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.

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 human resources development to offer fully subsidized transit passes for all state employees.

     SECTION 2.  Chapter 76, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§76-     Subsidized public transit passes; state employees.  The department of human resources development shall, in coordination with each county's transportation agency or department, offer fully subsidized public transit passes as a benefit option for all state employees.  The public transit passes shall be integrated into 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 to offer fully subsidized public transit passes as a benefit option for all state employees.

     The sum appropriated shall be expended by the department of human resources development for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2026.

Report Title:

DHRD; Public Transit Passes; State Employees

Description:

Requires and appropriates funds for the Department of Human Resources Development to offer fully subsidized public transit passes for state 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. 2314

Honolulu, Hawaii

RE:     S.B. No. 2993

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committee on Labor and Technology, to which was referred S.B. No. 2993 entitled:

"A BILL FOR AN ACT RELATING TO TRANSPORTATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to require and appropriate funds for the Department of Human Resources Development to offer fully subsidized public transit passes for state employees.

     Your Committee received testimony in support of this measure from the Department of Health; Hawaii Climate Change Mitigation and Adaptation Commission; Oahu Metropolitan Planning Organization; United Public Workers, AFSCME Local 646, AFL-CIO; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; Hawaiʻi Appleseed Center for Law and Economic Justice; 350Hawaii.org Hawaii; and two individuals.

     Your Committee received comments on this measure from the Department of Human Resources Development.

     Your Committee finds that the State currently provides limited transit benefits for its employees.  Your Committee also finds that state employee focus groups conducted in 2024 by the Oahu Metropolitan Planning Organization revealed a significant latent demand for expanded transportation benefits, with fifty-four percent of state employees reporting they would ride public transit if passes were fully subsidized.  Your Committee further finds that the State needs to explore new and alternative ways to recruit and retain a qualified workforce, especially at a time when government salary alone may not be enough to attract and retain employees.  This measure will help reduce traffic, reduce vacancy rates, and increase employee retention.

     Your Committee has amended this measure by:

     (1)  Inserting an effective date of January 1, 2077, to encourage further discussion; and

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

     Your Committee notes that this measure, as amended, contains an appropriation for an unspecified amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committee notes that according to the data and study by the Oahu Metropolitan Planning Organization, the cost to offer fully subsidized public transit passes including state badge costs would be $16,697,324 per year to cover all state employees, and $8,383,304 per year to cover fifty percent of state employees.

     As affirmed by the record of votes of the members of your Committee on Labor and Technology that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2993, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 2993, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Labor and Technology,