| 1 | 1 | | HOUSE OF REPRESENTATIVES H.B. NO. 2494 THIRTY-SECOND LEGISLATURE, 2024 STATE OF HAWAII A BILL FOR AN ACT RELATING TO ROAD USAGE CHARGE PROGRAM. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 3 | 3 | | HOUSE OF REPRESENTATIVES H.B. NO. 2494 |
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| 4 | 4 | | THIRTY-SECOND LEGISLATURE, 2024 |
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| 5 | 5 | | STATE OF HAWAII |
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| 7 | 7 | | HOUSE OF REPRESENTATIVES |
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| 9 | 9 | | H.B. NO. |
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| 11 | 11 | | 2494 |
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| 13 | 13 | | THIRTY-SECOND LEGISLATURE, 2024 |
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| 17 | 17 | | STATE OF HAWAII |
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| 31 | 31 | | A BILL FOR AN ACT |
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| 37 | 37 | | RELATING TO ROAD USAGE CHARGE PROGRAM. |
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| 43 | 43 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII: |
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| 47 | 47 | | SECTION 1. The legislature finds that, as fuel tax revenues decline, the department of transportation supports the adoption of a per-mile road usage charge to provide fair and sustainable funding for the State's road infrastructure. The legislature further finds that with the existing vehicle inspection program the State and counties are well-positioned to transition to a per-mile road usage charge with low administrative costs. In 2023, the legislature enacted a small-scale per-mile road usage charge program for electric vehicles. Beginning on July 1, 2025, drivers of electric vehicles will be provided a choice of paying a state road usage charge at a rate of 0.8 cents per mile traveled or paying a flat fee of $50. The state road usage charge shall be not more than $50 per year. This choice will be permitted until June 30, 2028, at which time all electric vehicles will pay a state road usage charge. The number of miles will be calculated based on an odometer reading recorded during the motor vehicle safety inspection. Finally, the legislature required the Hawaii department of transportation to develop a plan to transition all vehicles in Hawaii to a per-mile road usage charge by 2033. The legislature further finds that, in addition to the state fuel tax, counties rely on their own motor fuel tax to fund the maintenance and repair of county roads and bridges. Like the state fuel tax, the county fuel tax is also declining, leaving counties with less revenue to maintain their roads and bridges. The legislature now finds that counties may wish to begin transitioning to a mileage-based road usage charge as a fair and sustainable replacement for the county motor fuel tax. Furthermore, as the State begins its small-scale state road usage charge program in 2025, the counties should be authorized to enact their own county road usage charge as a replacement for their county fuel tax. The legislature finds that permitting counties to do this will result in lower administrative costs for the state and county agencies tasked with implementing the road usage charge and create more efficiency and simplicity for the traveling public as the State begins transitioning to a fair and sustainable source of transportation funding. The purposes of this Act are to: (1) Authorize the counties to impose a county mileage-based road usage charge to replace the county motor fuel tax for electric vehicles, allowing electric vehicle owners to pay a county registration surcharge or a per-mile county road usage charge until June 30, 2028; (2) Provide a process by which counties adopt a per-mile rate by county or city resolution; (3) Direct moneys from collection of a county road usage charge for use in the county in which the county road usage charge is collected; and (4) Clarify that the moneys collected under the state road usage charge as established in this chapter are directed into the state highway fund. SECTION 2. Chapter 249, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows: "§249-A County mileage-based road usage charge; established. (a) Beginning July 1, 2025, in addition to all other fees and taxes levied by this chapter, vehicles described pursuant to subsection (c) shall be subject to a county mileage-based road usage charge. The county mileage-based road usage charge shall be calculated by the director of finance at the rate established under section 249-B; multiplied by the number of miles traveled; less the estimated amount of paid county motor fuel taxes that correspond with the number of miles traveled, as shall be determined by the administrative rulemaking process. The number of miles traveled shall be calculated as the difference between the vehicle's two most recent odometer readings, as noted on the vehicle's certificate of inspection issued pursuant to section 286-26(e). The county mileage-based road usage charge shall be not less than zero dollars. Until June 30, 2028, the county mileage-based road usage charge shall be not more than $50 per year. If a county enacts a road usage charge pursuant to section 249-B, for the first registration renewal of new motor vehicles for which no certificate of inspection is required, the county mileage-based road usage charge assessed shall be $50, and such amount once paid shall be subtracted from the calculation of the county mileage-based road usage charge upon that vehicle's second registration renewal. (b) The county mileage-based road usage charge shall be paid each year following the vehicle's most recent inspection together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51 to ensure that the county mileage-based road usage charge is due and payable at the same time and shall be collected together with the county registration fee. The county mileage-based road usage charge shall be deemed delinquent if not paid with the county registration fee. The respective county shall collect the county mileage-based road usage charge and shall deposit the moneys collected under this section in the highway fund established under section 249-18. The moneys collected under this section shall be expended in the county in which the fees are collected as provided in section 249-C. (c) Vehicles subject to the county mileage-based road usage charge described in subsection (a) shall include all electric vehicles registered in the State except for any vehicles that qualify for any of the exemptions in sections 249-4, 249-5.5, 249-6, and 249-6.5. For the purposes of this section, "electric vehicle" means a vehicle having three or more wheels, a gross vehicle weight rating less than or equal to ten thousand pounds, and the capability to operate legally at a speed of more than thirty-five miles per hour, and drawing propulsion energy exclusively from a battery that can be recharged from an external source of energy. (d) Until June 30, 2028, owners of electric vehicles shall be offered a choice to pay a $50 registration surcharge in lieu of the county mileage-based road usage charge. (e) Counties may adopt rules pursuant to chapter 91 for establishing and administering the county mileage-based road usage charge. §249-B County mileage-based road usage charge; rate-setting. The amount of the "county of Hawaii mileage-based road usage charge", "city and county of Honolulu mileage-based road usage charge", "county of Maui mileage-based road usage charge", and "county of Kauai mileage-based road usage charge", respectively, shall be determined by resolution of the county or the city council of each county adopted in the manner provided by law relating to resolutions involving the expenditure of public money. The amount fixed by the resolution may be, per mile, one or more cents or a fraction of a cent or both, or it may be zero. No resolution shall be adopted until the county or the city council shall conduct a public hearing on the amount of charge proposed. Public notice of the hearing shall be given in the county at least twice within a period of thirty days immediately preceding the date of hearing. If the resolution is adopted, it shall take effect on the first day of the second month following the date of adoption of the resolution. Until and unless otherwise provided by resolution adopted as provided above, the amount of the "county of Hawaii mileage-based road usage charge" shall be zero, the amount of the "city and county of Honolulu mileage-based road usage charge" shall be zero, the amount of the "county of Maui mileage-based road usage charge" shall be zero, and the amount of the "county of Kauai mileage-based road usage charge" shall be zero. §249-C County mileage-based road usage charge; dispositions. Each of the following road usage charges shall be expended pursuant to section 249-18, for the island for which the road usage charge revenue is specially indicated, or, if none, for the county for which the road usage charge revenue is indicated: (1) The "city and county of Honolulu mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; (2) The "county of Kauai mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; (3) The "county of Hawaii mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; and (4) The "county of Maui mileage-based road usage charge" collected on account of vehicle miles traveled on the island of Lanai, shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18, for expenditure on the island of Lanai. The "county of Maui mileage-based road usage charge" collected on account of vehicle miles traveled on the island of Molokai, shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18, for expenditure on the island of Molokai. The remainder of the "county of Maui mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18." SECTION 3. Section 249-18, Hawaii Revised Statutes, is amended to read as follows: "§249-18 Highway fund. All taxes, fees, or charges collected under this chapter, except those collected pursuant to sections 249-14 and 249-14.5[,] and the state mileage-based road usage charge established under 249-36, shall be deposited in a county fund to be known as the "highway fund" and shall be expended in the county in which the taxes, fees, or charges are collected for the following purposes: (1) For acquisition, designing, construction, improvement, repair, and maintenance of public roads and highways, including without restriction of the foregoing purposes, costs of new land therefor, of permanent storm drains or new bridges, as well as repairs or additions to storm drains or bridges; (2) For installation, maintenance, and repair of street lights and power, and other charges for street lighting purposes, including replacement of old street lights, on county maintained public roads and highways; (3) For purposes and functions connected with traffic control and preservation of safety upon the public highways and streets; (4) For payment of interest on and redemption of bonds issued to finance highway and street construction and improvements; (5) In the case of the city and county of Honolulu, for appropriation for the police department up to the sum of $500,000. No expenditures shall be made out of this fund which will jeopardize federal aid for highway construction; (6) For purposes and functions connected with mass transit; and (7) For the acquisition, design, construction, improvement, repair, and maintenance of bikeways." SECTION 4. Section 249-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: "(a) Beginning July 1, 2025, in addition to all other fees and taxes levied by this chapter, electric vehicles shall be subject to a state mileage-based road usage charge. The state mileage-based road usage charge shall be calculated by the county director of finance at the rate of 0.8 cents per mile traveled, multiplied by the number of miles traveled, less the estimated amount of paid state fuel taxes that correspond with the number of miles traveled. The department shall adopt rules pursuant to chapter 91 to determine the method for calculating the estimated amount of paid state fuel taxes that correspond with the number of miles traveled. The number of miles traveled shall be calculated as the difference between the vehicle's two most recent odometer readings, as noted on the vehicle's certificate of inspection pursuant to section 286-26(e). The state mileage-based road usage charge shall be not less than $0, and, until June 30, 2028, the state mileage based road usage charge shall be not more than $50 per year. For the first registration renewal of new motor vehicles for which no certificate of inspection is required, the state mileage-based road usage charge assessed shall be $50, and such amount once paid shall be subtracted from the calculation of the state mileage-based road usage charge upon that vehicle's second registration renewal." SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating and referring to the new sections in this Act. SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 7. This Act, upon its approval, shall take effect on July 1, 2024. INTRODUCED BY: _____________________________ BY REQUEST |
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| 48 | 48 | | |
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| 49 | 49 | | SECTION 1. The legislature finds that, as fuel tax revenues decline, the department of transportation supports the adoption of a per-mile road usage charge to provide fair and sustainable funding for the State's road infrastructure. The legislature further finds that with the existing vehicle inspection program the State and counties are well-positioned to transition to a per-mile road usage charge with low administrative costs. In 2023, the legislature enacted a small-scale per-mile road usage charge program for electric vehicles. Beginning on July 1, 2025, drivers of electric vehicles will be provided a choice of paying a state road usage charge at a rate of 0.8 cents per mile traveled or paying a flat fee of $50. The state road usage charge shall be not more than $50 per year. This choice will be permitted until June 30, 2028, at which time all electric vehicles will pay a state road usage charge. The number of miles will be calculated based on an odometer reading recorded during the motor vehicle safety inspection. Finally, the legislature required the Hawaii department of transportation to develop a plan to transition all vehicles in Hawaii to a per-mile road usage charge by 2033. The legislature further finds that, in addition to the state fuel tax, counties rely on their own motor fuel tax to fund the maintenance and repair of county roads and bridges. Like the state fuel tax, the county fuel tax is also declining, leaving counties with less revenue to maintain their roads and bridges. The legislature now finds that counties may wish to begin transitioning to a mileage-based road usage charge as a fair and sustainable replacement for the county motor fuel tax. Furthermore, as the State begins its small-scale state road usage charge program in 2025, the counties should be authorized to enact their own county road usage charge as a replacement for their county fuel tax. The legislature finds that permitting counties to do this will result in lower administrative costs for the state and county agencies tasked with implementing the road usage charge and create more efficiency and simplicity for the traveling public as the State begins transitioning to a fair and sustainable source of transportation funding. |
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| 50 | 50 | | |
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| 51 | 51 | | The purposes of this Act are to: |
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| 52 | 52 | | |
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| 53 | 53 | | (1) Authorize the counties to impose a county mileage-based road usage charge to replace the county motor fuel tax for electric vehicles, allowing electric vehicle owners to pay a county registration surcharge or a per-mile county road usage charge until June 30, 2028; |
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| 54 | 54 | | |
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| 55 | 55 | | (2) Provide a process by which counties adopt a per-mile rate by county or city resolution; |
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| 56 | 56 | | |
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| 57 | 57 | | (3) Direct moneys from collection of a county road usage charge for use in the county in which the county road usage charge is collected; and |
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| 58 | 58 | | |
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| 59 | 59 | | (4) Clarify that the moneys collected under the state road usage charge as established in this chapter are directed into the state highway fund. |
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| 60 | 60 | | |
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| 61 | 61 | | SECTION 2. Chapter 249, Hawaii Revised Statutes, is amended by adding three new sections to be appropriately designated and to read as follows: |
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| 62 | 62 | | |
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| 63 | 63 | | "§249-A County mileage-based road usage charge; established. (a) Beginning July 1, 2025, in addition to all other fees and taxes levied by this chapter, vehicles described pursuant to subsection (c) shall be subject to a county mileage-based road usage charge. The county mileage-based road usage charge shall be calculated by the director of finance at the rate established under section 249-B; multiplied by the number of miles traveled; less the estimated amount of paid county motor fuel taxes that correspond with the number of miles traveled, as shall be determined by the administrative rulemaking process. The number of miles traveled shall be calculated as the difference between the vehicle's two most recent odometer readings, as noted on the vehicle's certificate of inspection issued pursuant to section 286-26(e). The county mileage-based road usage charge shall be not less than zero dollars. Until June 30, 2028, the county mileage-based road usage charge shall be not more than $50 per year. If a county enacts a road usage charge pursuant to section 249-B, for the first registration renewal of new motor vehicles for which no certificate of inspection is required, the county mileage-based road usage charge assessed shall be $50, and such amount once paid shall be subtracted from the calculation of the county mileage-based road usage charge upon that vehicle's second registration renewal. |
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| 64 | 64 | | |
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| 65 | 65 | | (b) The county mileage-based road usage charge shall be paid each year following the vehicle's most recent inspection together with all other taxes and fees levied by this chapter on a staggered basis as established by each county as authorized by section 286-51 to ensure that the county mileage-based road usage charge is due and payable at the same time and shall be collected together with the county registration fee. The county mileage-based road usage charge shall be deemed delinquent if not paid with the county registration fee. The respective county shall collect the county mileage-based road usage charge and shall deposit the moneys collected under this section in the highway fund established under section 249-18. The moneys collected under this section shall be expended in the county in which the fees are collected as provided in section 249-C. |
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| 66 | 66 | | |
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| 67 | 67 | | (c) Vehicles subject to the county mileage-based road usage charge described in subsection (a) shall include all electric vehicles registered in the State except for any vehicles that qualify for any of the exemptions in sections 249-4, 249-5.5, 249-6, and 249-6.5. For the purposes of this section, "electric vehicle" means a vehicle having three or more wheels, a gross vehicle weight rating less than or equal to ten thousand pounds, and the capability to operate legally at a speed of more than thirty-five miles per hour, and drawing propulsion energy exclusively from a battery that can be recharged from an external source of energy. |
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| 68 | 68 | | |
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| 69 | 69 | | (d) Until June 30, 2028, owners of electric vehicles shall be offered a choice to pay a $50 registration surcharge in lieu of the county mileage-based road usage charge. |
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| 70 | 70 | | |
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| 71 | 71 | | (e) Counties may adopt rules pursuant to chapter 91 for establishing and administering the county mileage-based road usage charge. |
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| 72 | 72 | | |
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| 73 | 73 | | §249-B County mileage-based road usage charge; rate-setting. The amount of the "county of Hawaii mileage-based road usage charge", "city and county of Honolulu mileage-based road usage charge", "county of Maui mileage-based road usage charge", and "county of Kauai mileage-based road usage charge", respectively, shall be determined by resolution of the county or the city council of each county adopted in the manner provided by law relating to resolutions involving the expenditure of public money. The amount fixed by the resolution may be, per mile, one or more cents or a fraction of a cent or both, or it may be zero. No resolution shall be adopted until the county or the city council shall conduct a public hearing on the amount of charge proposed. Public notice of the hearing shall be given in the county at least twice within a period of thirty days immediately preceding the date of hearing. If the resolution is adopted, it shall take effect on the first day of the second month following the date of adoption of the resolution. |
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| 74 | 74 | | |
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| 75 | 75 | | Until and unless otherwise provided by resolution adopted as provided above, the amount of the "county of Hawaii mileage-based road usage charge" shall be zero, the amount of the "city and county of Honolulu mileage-based road usage charge" shall be zero, the amount of the "county of Maui mileage-based road usage charge" shall be zero, and the amount of the "county of Kauai mileage-based road usage charge" shall be zero. |
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| 76 | 76 | | |
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| 77 | 77 | | §249-C County mileage-based road usage charge; dispositions. Each of the following road usage charges shall be expended pursuant to section 249-18, for the island for which the road usage charge revenue is specially indicated, or, if none, for the county for which the road usage charge revenue is indicated: |
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| 78 | 78 | | |
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| 79 | 79 | | (1) The "city and county of Honolulu mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; |
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| 80 | 80 | | |
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| 81 | 81 | | (2) The "county of Kauai mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; |
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| 82 | 82 | | |
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| 83 | 83 | | (3) The "county of Hawaii mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18; and |
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| 84 | 84 | | |
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| 85 | 85 | | (4) The "county of Maui mileage-based road usage charge" collected on account of vehicle miles traveled on the island of Lanai, shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18, for expenditure on the island of Lanai. The "county of Maui mileage-based road usage charge" collected on account of vehicle miles traveled on the island of Molokai, shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18, for expenditure on the island of Molokai. The remainder of the "county of Maui mileage-based road usage charge" shall be collected by the respective county and deposited into the fund known as the "highway fund" created by section 249-18." |
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| 86 | 86 | | |
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| 87 | 87 | | SECTION 3. Section 249-18, Hawaii Revised Statutes, is amended to read as follows: |
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| 88 | 88 | | |
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| 89 | 89 | | "§249-18 Highway fund. All taxes, fees, or charges collected under this chapter, except those collected pursuant to sections 249-14 and 249-14.5[,] and the state mileage-based road usage charge established under 249-36, shall be deposited in a county fund to be known as the "highway fund" and shall be expended in the county in which the taxes, fees, or charges are collected for the following purposes: |
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| 90 | 90 | | |
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| 91 | 91 | | (1) For acquisition, designing, construction, improvement, repair, and maintenance of public roads and highways, including without restriction of the foregoing purposes, costs of new land therefor, of permanent storm drains or new bridges, as well as repairs or additions to storm drains or bridges; |
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| 92 | 92 | | |
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| 93 | 93 | | (2) For installation, maintenance, and repair of street lights and power, and other charges for street lighting purposes, including replacement of old street lights, on county maintained public roads and highways; |
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| 94 | 94 | | |
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| 95 | 95 | | (3) For purposes and functions connected with traffic control and preservation of safety upon the public highways and streets; |
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| 96 | 96 | | |
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| 97 | 97 | | (4) For payment of interest on and redemption of bonds issued to finance highway and street construction and improvements; |
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| 98 | 98 | | |
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| 99 | 99 | | (5) In the case of the city and county of Honolulu, for appropriation for the police department up to the sum of $500,000. No expenditures shall be made out of this fund which will jeopardize federal aid for highway construction; |
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| 100 | 100 | | |
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| 101 | 101 | | (6) For purposes and functions connected with mass transit; and |
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| 102 | 102 | | |
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| 103 | 103 | | (7) For the acquisition, design, construction, improvement, repair, and maintenance of bikeways." |
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| 104 | 104 | | |
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| 105 | 105 | | SECTION 4. Section 249-36, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows: |
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| 106 | 106 | | |
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| 107 | 107 | | "(a) Beginning July 1, 2025, in addition to all other fees and taxes levied by this chapter, electric vehicles shall be subject to a state mileage-based road usage charge. The state mileage-based road usage charge shall be calculated by the county director of finance at the rate of 0.8 cents per mile traveled, multiplied by the number of miles traveled, less the estimated amount of paid state fuel taxes that correspond with the number of miles traveled. The department shall adopt rules pursuant to chapter 91 to determine the method for calculating the estimated amount of paid state fuel taxes that correspond with the number of miles traveled. The number of miles traveled shall be calculated as the difference between the vehicle's two most recent odometer readings, as noted on the vehicle's certificate of inspection pursuant to section 286-26(e). The state mileage-based road usage charge shall be not less than $0, and, until June 30, 2028, the state mileage based road usage charge shall be not more than $50 per year. For the first registration renewal of new motor vehicles for which no certificate of inspection is required, the state mileage-based road usage charge assessed shall be $50, and such amount once paid shall be subtracted from the calculation of the state mileage-based road usage charge upon that vehicle's second registration renewal." |
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| 108 | 108 | | |
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| 109 | 109 | | SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating and referring to the new sections in this Act. |
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| 110 | 110 | | |
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| 111 | 111 | | SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. |
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| 112 | 112 | | |
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| 113 | 113 | | SECTION 7. This Act, upon its approval, shall take effect on July 1, 2024. |
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| 114 | 114 | | |
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| 115 | 115 | | |
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| 116 | 116 | | |
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| 117 | 117 | | INTRODUCED BY: _____________________________ |
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| 118 | 118 | | BY REQUEST |
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| 119 | 119 | | |
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| 120 | 120 | | INTRODUCED BY: |
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| 121 | 121 | | |
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| 122 | 122 | | _____________________________ |
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| 123 | 123 | | |
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| 124 | 124 | | |
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| 125 | 125 | | |
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| 126 | 126 | | BY REQUEST |
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| 127 | 127 | | |
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| 128 | 128 | | Report Title: Department of Transportation; Electric Vehicles; State Mileage-Based Road User Fee; County Mileage-Based Road User Fee Description: Provides authority for a county to impose a mileage-based road usage charge. Provides for disposition of funds of county mileage-based road usage charge. Clarifies the disposition of funds of state mileage-based road usage charge. Repeals the maximum amount a driver will pay in a mileage-based road usage charge on June 30, 2028. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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| 129 | 129 | | |
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| 130 | 130 | | |
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| 131 | 131 | | |
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| 132 | 132 | | |
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| 133 | 133 | | |
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| 134 | 134 | | Report Title: |
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| 135 | 135 | | |
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| 136 | 136 | | Department of Transportation; Electric Vehicles; State Mileage-Based Road User Fee; County Mileage-Based Road User Fee |
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| 137 | 137 | | |
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| 138 | 138 | | |
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| 139 | 139 | | |
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| 140 | 140 | | Description: |
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| 141 | 141 | | |
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| 142 | 142 | | Provides authority for a county to impose a mileage-based road usage charge. Provides for disposition of funds of county mileage-based road usage charge. Clarifies the disposition of funds of state mileage-based road usage charge. Repeals the maximum amount a driver will pay in a mileage-based road usage charge on June 30, 2028. |
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| 144 | 144 | | |
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| 145 | 145 | | |
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| 146 | 146 | | |
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| 147 | 147 | | |
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| 148 | 148 | | |
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| 149 | 149 | | |
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| 150 | 150 | | The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent. |
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