Report Title:

Modernization Program; State Liquid Fuel Tax; State Vehicle Registration; State Vehicle Weight Fee; Rental Motor Vehicle Surcharge Tax; Vehicle Miles Traveled Pilot Program; Highway

 

Description:

Authorize the department of transportation to pursue a comprehensive 6-year modernization program and providing it sufficient resources to implement the plan by amending the state liquid fuel tax, state vehicle registration fee, state vehicle weight fee, and rental motor vehicle surcharge through increases of the various taxes and the flat rate amount in sections 243-4(a), 249-31, 249-33(a), and 251-2(a), Hawaii Revised Statutes, via economic conditions "trigger" mechanism.  Authorize the implementation of a Vehicle Miles Traveled Pilot Program.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

1167

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO HIGHWAYS.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that:  (1) in order to meet the economic needs of the State and preserve the unique quality of life of its residents and visitors to these islands, the department of transportation must provide safe, efficient, and effective land transportation facilities for the movement of people and goods; (2) a modern and efficient land transportation infrastructure system is essential to a healthy and vibrant economic future; (3) congestion on our highway systems has severe detrimental impacts on our economy and quality of life of Hawaii' s people; and (4) the condition on our highway system continues to deteriorate at alarming and unacceptable rates.

     The legislature further finds that the department of transportation' s ability to fulfill its critical infrastructure responsibilities with fixed resources is a challenge that continues to intensify due to programmatic and project needs far exceeding the necessary resources available to properly address them.  The land transportation system is and will continue to deteriorate as demand for travel continues to increase, and as costs to manage, construct, and administer the system increase.

     As an island state, Hawaii has evolved from mostly rural, agriculturally based communities to urban communities.  The land transportation system has also evolved from native trail systems linking historic communities, to a belt road system providing both mobility and access to and between towns and agricultural communities, to a hierarchal multimodal land transportation system that provides high speed travel for the movement of people and goods.  The inherent trade-off between mobility and accessibility continues to be at a challenge in balancing the need to accommodate access to property while minimizing congestion.

     Evolving life styles have also resulted in increasing demands for travel.  Single vehicle occupancy continues to be the predominant trend during highly congested peak commute periods.  Motor vehicle usage has evolved to become a basic component in our social and recreational activities.  Multiple vehicle ownership per household has become the norm.

     Inherently, there are greater challenges in expanding capacity through new or existing corridors as adjoining lands become more urbanized.

     There are also significantly greater complexities due to stricter archaeological, environmental, and legal compliance requirements.

     Nationally, there is much discussion regarding a proposed federal infrastructure stimulus plan to stimulate the economy of the United States of America.  Should this federal initiative come to fruition, the department of transportation must be prepared to actively pursue such funds to the maximum extent practical.  For this reason, the department of transportation seeks authorization to pursue a comprehensive six-year program that accounts for an infusion of federal funds should such federal infrastructure stimulus plan funds become available.

     On average, 140 lives are lost on Hawaii' s roadways each year.  Hawaii ranked twenty-ninth in freeway safety with 1.45 traffic fatalities per million vehicle miles traveled.  Hawaii also ranked highest in the nation in alcohol related fatalities, second highest in the nation in motorcycle related fatalities, and seventh highest in the nation in pedestrian related fatalities.  These statistics are undesirably high, necessitating immediate and directed action to significantly reduce fatalities.  Increased funding and additional resources are needed to expedite the implementation of various recommendations in seven emphasis areas developed through the multi-agency strategic highway safety program.

     The infrastructure gap continues to grow with vehicle miles traveled increasing faster than the State' s ability to construct additional lanes of travel, thereby resulting in greater congestion.  The morning commute on H-1 Freeway from Kapolei into downtown Honolulu has risen to an average of sixty-five minutes and is expected to increase every year.  There is a significant human cost to congestion, with ten minutes of time spent in traffic, equating to approximately $600 per person, per year, and $3,300 per commercial vehicle, per year.

     Traffic congestion also has a significant negative impact on the environment and related deterioration in overall quality of life.

     The cost for materials and thus construction has increased. Significant fluctuations in petroleum prices have also directly impacted construction costs since the raw construction materials rely heavily on petroleum based products to manufacture them.  The liquid fuel tax is assessed on a per gallon basis without adjustments for inflation or other factors.  Motor vehicles manufacturers are also striving for greater fuel efficiency and electric vehicle usage continues to expand, further diminishing gas tax collection that pays for the infrastructure that these vehicle use.

     Funding needed to operate and maintain our existing highway infrastructure is estimated to cost $7,000,000,000.  Of this $7,000,000,000, $1,960,000,000 is needed to address safety program needs, $1,530,000,000 is needed to address preservation program needs, $150,000,000 is needed to address congestion program needs, $3,100,000,000 to address capacity program needs, $160,000,000 to address enhancement program needs, and $100,000,000 billion to address other program needs.  At current funding levels of $250,000,000 per year, it will take over thirty years to address the estimated $7,000,000,000 in current infrastructure and programmatic needs.

     The department of transportation has and continues to accomplish its primary mission by judiciously allocating its limited resources on the most critical needs.

     Due to the imbalance between programmatic needs and available resources, the department of transportation is committed to undertaking a comprehensive transformation, re-evaluating its strategic policies, priorities, and organizational structure to meet the challenges of the twenty-first century.  A major initiative of this comprehensive transformation is the development of clear performance criteria to properly drive investment decisions to ensure that the greatest public benefit will be achieved through the responsible management and expenditure of public funds.

     The department of transportation has developed a $4,000,000,000 comprehensive six-year work plan and financial plan to implement critical programs and projects.  As a part of this effort, the department of transportation seeks a one-time, infusion of $2,000,000,000 in capital to aid in rectifying critical deficiencies by pursuing those programs and projects that have the greatest potential to improve the following performance categories:  safety, congestion, system preservation, and other programs and initiatives.

     The six-year work program is delineated by performance category, by county, and by transportation corridors to better manage, monitor, and inform the public on the progress being made.  By accelerating the implementation of the identified programs and projects, the department of transportation seeks major improvements in identified performance categories. 

     Safety:  Bridge, rockfall and slope stabilization, and shoreline protection programs serve core safety purposes in providing and preserving essential connections to and between communities.  With much of our State served through a belt road system, the statewide highway system serves fundamental and essential functions, as well as serving core emergency response and emergency evacuation functions.

     There are an estimated 760 bridges in the statewide highway system, of which 275 are structurally deficient or unsafe.  In 2006, Hawaii ranked forty-sixth nationally based on the percentage of structurally safe bridges.  Hawaii also had a poor compliance record with respect to federal bridge inspection requirements.

     Due to current resource limitations, the department of transportation can only address the most critical locations that are at greatest risks for failure.  Infusion of additional resources will allow the department to accelerate implementation of corrective measures, and proactively address more locations that are at risk.

     The goals of this modernization effort in the safety performance category are to:  (1) reduce average number of lives lost on our state highways to one hundred or less per year; (2) bring fifty of the most deficient bridges up to current structural design standards, (3) inspect all 760 bridges in the statewide highway system within a two year cycle; (4) pursue the top fifteen sites identified in the rockfall and slope stabilization program that are on the most critical routes where severance of access would have the greatest potential negative impact; and (5) pursue the top ten sites identified in the shoreline protection program that are on the most critical routes where severance of access would have the greatest potential negative impact.

     To achieve these goals:  (1) the recommendations of the strategic highway safety program in the seven emphasis areas should be implemented, (2) legislative and statutory changes have been sought as part of the department of transportation' s highway safety initiative that are separate and yet an integral part of this highway modernization plan, (3) the highway safety improvement program that targets locations with high accident rates should be implemented, (4) the planning and design on the most critical bridges identified in the bridge program should be accelerated and federal funding pursued to the maximum extent practicable should the federal infrastructure stimulus plan be implemented, (5) implementation of fifteen sites identified as priority in the rockfall and slope stabilization program should be accelerated, (6) implementation of ten sites identified as priority in the shoreline protection program should be accelerated, and (7) other critical projects identified in the guardrail and shoulder improvement program and motor vehicle safety program should be pursued.

     Congestion:  There are currently unacceptable levels of congestion in every county.  Unacceptable congestion currently occurs on Queen Kaahumanu highway and on Keaau-Pahoa road in the county of Hawaii, on Honoapiilani highway and on Hana highway in the county of Maui, through the H-1 freeway corridor and along Fort Weaver road in the city and county of Honolulu, on Kuhio highway and on Kamualii highway in the county of Kauai, and on other facilities throughout the State.

     The department of transportation pursues capacity and congestion relief projects based on greatest need.  Current resource limitations and rising costs to implement such improvements have resulted in diminishment in the number and locations where such necessary improvement can be pursued.

     Land use development patterns have also contributed to congestion on our regional highway system.  While developers are required to mitigate the direct impacts of their proposed projects, their regional impacts are typically only a portion of the total regional improvements needed to address current and future congestion.

     The goals of this modernization program in the congestion performance category are to:  (1) achieve a minimum of ten percent reduction in congestion along two major corridors, within each county within ten years; (2) achieve a ten percent increase in overall operational efficiency of existing statewide infrastructure system; and (3) achieve a ten percent increase in the use of alternative travel modes.

     The strategies to achieve these goals include the infusion of additional capital that will provide the department of transportation with the necessary resources to expedite the implementation of 35 regional improvement projects located in each county to aid in relieving congestion.  The department of transportation will programmatically address recurring and non-recurring congestion.  The department of transportation' s goal is to reduce recurring congestion by eliminating bottlenecks and non-recurring congestion through the implementation of a freeway management system that will respond to accidents or stalled vehicles that contribute to congestion.  The department of transportation seeks to more efficiently and effectively manage the existing land transportation highway system through the traffic signal optimization program and other transportation system management techniques.  The department of transportation also seeks to expand implementation of intelligent transportation systems including the freeway management system.  The department of transportation is committed to expanding and enhancing multimodal and inter-modal options and facilities to provide greater alternative travel choices.  The department of transportation will enhance its current bicycle and pedestrian programs to better promote, encourage, and proactively pursue bicycle and pedestrian usage.

     System preservation:  Due to resource limitations, the department of transportation has had to make difficult choices and forgo necessary maintenance when possible to divert resources to more critical programs such as safety and congestion.  Forgoing basic preservation and preventative maintenance, however, comes at a higher long-term cost as infrastructure deteriorates prematurely and requires greater capital investment in the long run.

     The significant infusion of additional capital will allow the department of transportation to take appropriate and necessary preventative action to extend the service life of a greater portion of the existing infrastructure.

     Investing in preventative maintenance not only extends the service life of the facilities but can also aid in reducing exposure to liability.  Preserving the infrastructure in better condition improves the overall safety of the facilities and also reduces exposure to liability.

     Pavement conditions, as measured by roughness and thus "ride-ability" have been improving as the department has made system preservation a higher priority and retained a base level of funding committed to this program.  Current statewide average pavement condition index ratings are 75, on Hawaii are 78, on Maui are 80, on Oahu are 70, and on Kauai are 76.

     The goals of this modernization program in the system preservation performance category are to achieve and maintain seventy-five percent of the infrastructure system within nationally accepted guidelines for the infrastructure type within ten years to achieve and maintain a pavement condition index of 80 or higher on all roadways in the statewide highway system.

     The strategies to achieve these goals include performing one hundred miles of pavement preservation every year, and increasing base systems preservation program expenditures to ensure proper system preservation and preventative maintenance.

     Other initiatives:  The department of transportation is committed to the development of appropriate performance criteria and reporting the department of transportation' s progress in achieving performance goals.

     Current practices are to measure regional congestion based on volume-to-capacity ratios or levels-of-service.  While current practices provide a reliable means to prioritize capacity programs and projects, volume-to-capacity does not easily translate into terms the general public values.  It also does not take into account variations in local community tolerances and acceptance regarding levels of congestion.

     Through performance monitoring, the department of transportation will be better able to direct its resources to those programs and activities that provide the greatest public benefit and value.  And through transparency, the department of transportation will be more accountable to the public in how the department of transportation prioritizes and pursues programs and projects to meet core functional needs.

     The department of transportation seeks to gather and disseminate relevant and reliable real time information so that motorists can make better, more informed decisions regarding their personal travel.  By providing reliable real time information, motorist will know the severity of a disruption allowing them the opportunity to adjust their route or planned travel time or both.

     In addition to accelerating projects and programs, the department of transportation is also committed to review alternative policies and initiatives that may affect the demand for travel, to explore alternative travel modes, and ways to better manage the overall transportation system to achieve greatest efficiency.  The department of transportation will also investigate opportunities to partner with other governmental agencies to influence land use development patterns to reduce the overall need for travel and associated transportation impacts.

     Financial plan:  To generate the additional capital required for this modernization program, the department of transportation proposes to increase state liquid fuel taxes, state vehicle registration fees, state vehicle weight taxes, and rental motor vehicle surcharge taxes.  Creation of a new special fund for deposit of these additional revenues is proposed.  The creation of this special fund will allow for accountability and transparency and ensure the public that the increases in revenues are being appropriately used on programs and projects that achieve the improvements in the adopted performance categories.

     The state liquid fuel tax, state vehicle registration fee, state vehicle weight tax, and rental motor vehicle surcharge tax will be increased as follows:

●    Increase the state tax on liquid fuel by ten cents per gallon increase.

●    Increase the state vehicle registration fee by $20.

●    Increase the rental motor vehicle surcharge tax permanently to $5 per day.

     The state liquid fuel tax, state vehicle registration fee, state vehicle weight tax, and rental motor vehicle surcharge tax are the major sources of revenue for the state highway fund. Appropriations from the fund are used for the construction, operation, and maintenance of the state highway system.

     The highways financial plan relies on these revenues to support the continued operations and maintenance of the state highway system.

     These revenues also serve as pledged revenues for highway revenue bonds.  The additional revenues derived from the increased taxes and fees will help to increase the revenue bonding capacity of the state highways program and provide funding for additional capital improvement projects.

     Highway fuel license taxes:  Highway fuel license taxes consist of license taxes on fuel sold to motor vehicle operators pursuant to chapter 243, Hawaii Revised Statutes.  The distributor of motor vehicle fuel pays the fuel license tax for liquid fuel produced or imported by the distributor to be sold or used by the distributor.  Highway fuel license taxes are currently assessed at a rate of $0.17 per gallon of gasoline and diesel oil used for general highway purposes; and $0.02 per gallon of gasoline, diesel oil, and liquid petroleum gas used for non-highway purposes.  The highway fuel license taxes are collected by the department of taxation, which transfers the receipts to the state highway fund. 

     The rate of taxation on fuel increased significantly between 1975 and 1991.  Highway fuel license taxes increased from $0.085 per gallon of gasoline and diesel oil, and $0.060 per gallon of liquid petroleum gas in 1975, to $0.110 per gallon of gasoline and diesel oil, and $0.080 per gallon of liquid petroleum gas in 1985, and to $0.160 per gallon of gasoline and diesel oil and $0.110 per gallon of liquid petroleum gas effective July 1, 1991.  The state fuel tax was increased to $0.17 per gallon for gasoline and diesel oil used for general highway purposes; and $0.02 per gallon for gasoline, diesel oil, and liquid petroleum gas used for non-highway purposes effective July 1, 2007 by Act 209, Session Laws of Hawaii 2007. 

     Vehicle registration fees:  All vehicles, including motor vehicles, must be registered annually with one of the four counties of the State.  The vehicle owner must pay a State registration fee of $25 for each vehicle, pursuant to section 249-31, HRS.  The State vehicle registration fee has been increased from $1 per vehicle in 1979, to $10 per vehicle in 1985, to $20 per vehicle in 1991, and to $25 per vehicle in 2004.  From each annual motor vehicle registration fee collected, $20 is deposited into the state highway fund, and $5 into the emergency medical services special fund.  The four counties each collect the vehicle registration fee along with their respective county registration fees and transfer the State' s portion of the vehicle registration fee into the state highway fund.

     Vehicle weight taxes:  All vehicles, including motor vehicles, are assessed an annual state vehicle weight tax pursuant to section 249-33, Hawaii Revised Statutes.  The tax rate is $0.0075 per pound for vehicles less than 4,000 pounds; $0.01 per pound for vehicles between 4,001 and 7,000 pounds; $0.0125 per pound for vehicles between 7,001 and 10,000 pounds; and $150 per vehicle for vehicles over 10,000 pounds.  Vehicle weight taxes increased from a minimum rate of $0.0045 per pound to $0.0050 per pound to $0.0075 per pound and a maximum charge of $36 per vehicle to $65 per vehicle to $150 per vehicle over the period from 1991 to 2002.  The four counties each collect the vehicle weight tax along with their respective county vehicle taxes, and transfer the State' s portion of the vehicle weight tax into the state highway fund.

     Rental motor vehicle and tour vehicle surcharge taxes:  chapter 251, Hawaii Revised Statutes, imposes a surcharge tax on all rental motor vehicles and tour vehicles.  The rental motor vehicle surcharge tax is imposed on the owner of the rental company when a rental motor vehicle is rented or leased.  Through Act 223, Session Laws of Hawaii 1999, the surcharge tax was increased from $2 per day to $3 per day or any portion of the day effective from September 1, 1999 through August 31, 2007, and was further extended by Act 258, Session Laws of Hawaii 2007, from September 1, 2007, through August 31, 2008, and Act 226, Session Laws of Hawaii 2008, from September 1, 2008, through August 31, 2011.

     Trigger:  The current economic downturn has adversely impacted the State and its residents, and actions that could lead to further reductions in personal income could have a detrimental and undesirable impact the residents of Hawaii.  As such, the liquid fuel tax, state vehicle registration fee, state vehicle weight tax, and rental motor vehicle surcharge tax increases will take effect only when the economy has improved as measured by a one percent growth in Hawaii' s statewide non-agricultural wage and salary job growth for two consecutive quarters as compared with the same quarters in the previous year as published by the state department of business and economic development and tourism. 

     If, however, the tax and fee increases are not triggered by the third year following the effective date of this legislation, the department of transportation will return to current operational and priority status, adjusting its efforts to match and appropriately manage available resources.  These tax and fee increases will not apply to drivers and residents located on the islands of Lanai and Molokai since highway modernization projects are not being proposed for these two islands.

     The department of transportation intends to seek the services of a master consultant to assist with overall program management and support services in the implementation of this highway modernization program.  The master consultant will aid in the development of specific performance criteria to assess overall effectiveness of the programs and projects.  The master consultant will assist in reviewing, evaluating, and recommending structural, organizational, and procedural changes to the department of transportation' s highways division including recommendations on staffing.  The master consultant will also assist with the creation and maintenance of a web based information system with project status and performance indicators.

     Vehicle miles traveled pilot program:  The liquid fuel tax, is the primary means of funding the infrastructure improvements needed to support motor vehicular travel.  As the use of fuel efficient and alternative energy vehicles become more prevalent, less gasoline and diesel fuel will be consumed and liquid fuel tax collections will correspondingly diminish.  The current method of assessing the motor vehicle liquid fuel tax on a per gallon basis will become less effective at generating a stable revenue source to fund the land transportation infrastructure program.

     The number of miles each vehicle travels is a gauge of actual use and associated impact on the land transportation infrastructure.  Evaluation of a vehicle miles traveled user fee is, therefore, proposed as a means of assessing users of the highway system a fee based on their actual use of and impact on the highways.  This approach would correlate usage and fees and would provide a reliable and stable source of funds to administer and manage the land transportation infrastructure system.

     Transfers of highway fund:  Due to the need to invest in the state land transportation infrastructure system and the fact that there exists a significant backlog in maintenance of existing facilities; the transfer of funds from the highway fund and the new land transportation modernization special fund must be strictly prohibited.  The department of transportation requires a secure, stable, and reliable funding source to properly administer and manage the challenges faced by the state land transportation infrastructure system.

     SECTION 2.  Section 243-4, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  Every distributor, in addition to any other taxes provided by law, shall pay a license tax to the department of taxation for each gallon of liquid fuel refined, manufactured, produced, or compounded by the distributor and sold or used by the distributor in the State or imported by the distributor, or acquired by the distributor from persons who are not licensed distributors, and sold or used by the distributor in the State.  Any person who sells or uses any liquid fuel, knowing that the distributor from whom it was originally purchased has not paid and is not paying the tax thereon, shall pay such tax as would have applied to such sale or use by the distributor.  The rates of tax imposed are as follows:

     (1)  For each gallon of diesel oil, 2 cents;

     (2)  For each gallon of gasoline or other aviation fuel sold for use in or used for airplanes, 2 cents;

     (3)  For each gallon of naphtha sold for use in a power-generating facility, 1 cent;

     (4)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the city and county of Honolulu, or sold in any county for ultimate use in the city and county of Honolulu, [17] 27 cents state tax, and in addition thereto an amount, to be known as the "city and county of Honolulu fuel tax", as shall be levied pursuant to section 243-5;

     (5)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Hawaii, or sold in any county for ultimate use in the county of Hawaii, [17] 27 cents state tax, and in addition thereto an amount, to be known as the "county of Hawaii fuel tax", as shall be levied pursuant to section 243-5;

     (6)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Maui, or sold in any county for ultimate use in the county of Maui, 17 cents state tax[,] on any island with a total resident population of less than 20,000, and 27 cents state tax everywhere else, and in addition thereto an amount, to be known as the "county of Maui fuel tax", as shall be levied pursuant to section 243-5; and

     (7)  For each gallon of liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), and other than an alternative fuel, sold or used in the county of Kauai, or sold in any county for ultimate use in the county of Kauai, [17] 27 cents state tax, and in addition thereto an amount, to be known as the "county of Kauai fuel tax", as shall be levied pursuant to section 243-5.

     If it is shown to the satisfaction of the department, based upon proper records and from any other evidence as the department may require, that liquid fuel, other than fuel mentioned in paragraphs (1), (2), and (3), is used for agricultural equipment that does not operate upon the public highways of the State, the user thereof may obtain a refund of all taxes thereon imposed by this section in excess of 1 cent per gallon.  The department shall adopt rules to administer such refunds."

     SECTION 3.  Section 249-31, Hawaii Revised Statutes, is amended to read as follows:

     "§249-31  State registration fee.  (a) All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-4 and 249-6, shall be subject to a $25 annual vehicle registration fee[.] on any island with a total resident population of less than 20,000, and a $45 annual vehicle registration fee everywhere else.  The fee shall become due and payable on January 1, and shall be paid before April 1 in each year together with all other taxes and fees levied by this chapter; provided that should any county elect to renew motor vehicle registrations on a staggered basis as authorized by section 286-51, the state registration for that county shall likewise be staggered so that the state registration fee is due and payable at the same time and shall be collected together with the county fee.  The state registration fee shall be deemed delinquent if not paid with the county registration fee.  The respective counties shall collect this fee together with the vehicle registration tax collected for the county and shall transfer the moneys collected under this section to the State.

     (b)  From each annual motor vehicle registration fee, the director shall deposit $20 into the state highway fund and $5 into the emergency medical services special fund.  The director of transportation shall also deposit $20 into the land transportation modernization special fund from each motor vehicle registration fee, except for those annual motor vehicle registrations on any island with a total resident population of less than 20,000."

     SECTION 4.  Section 249-33, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  All vehicles and motor vehicles in the State as defined in section 249-1, including antique motor vehicles, except as otherwise provided in sections 249-3 to 249-6, in addition to all other fees and taxes levied by this chapter, shall be subject to an annual state vehicle weight tax.  The tax shall be levied by the county director of finance at the rate of .75 cents a pound on any island with a total resident population of less than 20,000, and 2.75 cents a pound everywhere else according to the net weight of each vehicle as the "net weight" is defined in section 249-1 up to and including four thousand pounds net weight; vehicles over four thousand pounds and up to and including seven thousand pounds net weight shall be taxed at the rate of 1.00 cent a pound[;] on any island with a total resident population of less than 20,000, and 3.00 cents a pound everywhere else; vehicles over seven thousand pounds and up to and including ten thousand pounds net weight shall be taxed at the rate of 1.25 cents a pound[;] on any island with a total resident population of less than 20,000, and 3.25 cents a pound everywhere else;  vehicles over ten thousand pounds net weight shall be taxed at a flat rate of $150[.] on any island with a total resident population of less than 20,000, and $450 everywhere else."

     SECTION 5.  Section 251-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  There is levied and shall be assessed and collected each month a rental motor vehicle surcharge tax of [$2] $5 a day, [except that for the period of September 1, 1999, to August 31, 2011, the tax shall be $3 a day,] or any portion of a day that a rental motor vehicle is rented or leased.  The rental motor vehicle surcharge tax shall be levied upon the lessor; provided that the tax shall not be levied on the lessor if:

     (1)  The lessor is renting the vehicle to replace a vehicle of the lessee that is being repaired; and

     (2)  A record of the repair order for the vehicle is retained either by the lessor for two years for verification purposes or by a motor vehicle repair dealer for two years as provided in section 437B-16."

     SECTION 6.  The department of transportation is authorized to issue highway revenue bonds for highway capital improvement projects authorized by the general appropriations act of 2009, and for the purposes of this Act, designated to be financed by revenue bond funds with the debt service to be paid from special funds.

     SECTION 7.  Chapter 248, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§248-   Land transportation modernization special fund.

     (a)  There is established in the state treasury the land transportation modernization special fund, that excludes the taxes and fees collected on any island with a total resident population of less than 20,000, to be administered by the department of transportation, into which shall be deposited:

     (1)  A portion of the tax collected under section 2(a) of this Act equal to 10 cents per gallon of liquid fuel;

     (2)  A portion of the state registration fee collected under section 3 of this Act equal to $20 for each annual motor vehicle registration fee collected;

     (3)  A portion of the annual state vehicle weight tax collected under section 4 of this Act, equal to 2 cents a pound for vehicles up to and including ten thousand pounds net weight, and a rate of $300 per vehicle for vehicles over ten thousand pounds net weight;

     (4)  A portion of the rental vehicle surcharge tax under section 5 of this Act equal to $2 a day;

     (5)  Interest from investment of deposits; and

     (6)  Legislative and county appropriations.

     (b)  Moneys in the land transportation modernization special fund shall be used for the purposes of this Act and shall be authorized for expenditure by the department of transportation for payment of revenue bond debt service, including principal and interest.

     (c)  The land transportation modernization special fund shall be exempt from the requirements of section 36-27, Hawaii Revised Statutes, transfers from special funds for central service expenses, and section 36-30, Hawaii Revised Statutes, special fund reimbursements for departmental administrative expenses."

     SECTION 8.  Section 36-27, Hawaii Revised Statutes, is amended to read as follows:

     "§36-27  Transfers from special funds for central service expenses.  Except as provided in this section, and notwithstanding any other law to the contrary, from time to time, the director of finance, for the purpose of defraying the prorated estimate of central service expenses of government in relation to all special funds, except the:

     (1)  Special out-of-school time instructional program fund under section 302A-1310;

     (2)  School cafeteria special funds of the department of education;

     (3)  Special funds of the University of Hawaii;

     (4)  State educational facilities improvement special fund;

     (5)  Convention center enterprise special fund under section 201B-8;

     (6)  Special funds established by section 206E-6;

     (7)  Housing loan program revenue bond special fund;

     (8)  Housing project bond special fund;

     (9)  Aloha Tower fund created by section 206J-17;

    (10)  Funds of the employees'  retirement system created by section 88-109;

    (11)  Unemployment compensation fund established under section 383-121;

    (12)  Hawaii hurricane relief fund established under chapter 431P;

    (13)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

    (14)  Tourism special fund established under section 201B-11;

    (15)  Universal service fund established under chapter 269;

    (16)  Emergency and budget reserve fund under section 328L-3;

    (17)  Public schools special fees and charges fund under section 302A-1130(f);

    (18)  Sport fish special fund under section 187A-9.5;

    (19)  Neurotrauma special fund under section 321H-4;

    (20)  Deposit beverage container deposit special fund under section 342G-104;

    (21)  Glass advance disposal fee special fund established by section 342G-82;

    (22)  Center for nursing special fund under section 304A-2163;

    (23)  Passenger facility charge special fund established by section 261-5.5;

    (24)  Solicitation of funds for charitable purposes special fund established by section 467B-15;

    (25)  Land conservation fund established by section 173A-5;

    (26)  Court interpreting services revolving fund under section 607-1.5;

    (27)  Trauma system special fund under section 321-22.5;

    (28)  Hawaii cancer research special fund;

    (29)  Community health centers special fund;

    (30)  Emergency medical services special fund; [and]

    (31)  Rental motor vehicle customer facility charge special fund established under section 261-5.6; and

    (32)  Land transportation modernization special fund established under section 248-  ;

shall deduct five per cent of all receipts of all other special funds, which deduction shall be transferred to the general fund of the State and become general realizations of the State.  All officers of the State and other persons having power to allocate or disburse any special funds shall cooperate with the director in effecting these transfers.  To determine the proper revenue base upon which the central service assessment is to be calculated, the director shall adopt rules pursuant to chapter 91 for the purpose of suspending or limiting the application of the central service assessment of any fund.  No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all central service assessments made during the preceding fiscal year."

     SECTION 9.  Section 36-30, Hawaii Revised Statutes, is amended to read as follows:

     "§36-30  Special fund reimbursements for departmental administrative expenses.  (a)  Each special fund, except the:

     (1)  Transportation use special fund established by section 261D-1;

     (2)  Special out-of-school time instructional program fund under section 302A-1310;

     (3)  School cafeteria special funds of the department of education;

     (4)  Special funds of the University of Hawaii;

     (5)  State educational facilities improvement special fund;

     (6)  Special funds established by section 206E-6;

     (7)  Aloha Tower fund created by section 206J-17;

     (8)  Funds of the employees'  retirement system created by section 88-109;

     (9)  Unemployment compensation fund established under section 383-121;

    (10)  Hawaii hurricane relief fund established under chapter 431P;

    (11)  Convention center enterprise special fund established under section 201B-8;

    (12)  Hawaii health systems corporation special funds and the subaccounts of its regional system boards;

    (13)  Tourism special fund established under section 201B-11;

    (14)  Universal service fund established under chapter 269;

    (15)  Emergency and budget reserve fund under section 328L-3;

    (16)  Public schools special fees and charges fund under section 302A-1130(f);

    (17)  Sport fish special fund under section 187A-9.5;

    (18)  Neurotrauma special fund under section 321H-4;

    (19)  Center for nursing special fund under section 304A-2163;

    (20)  Passenger facility charge special fund established by section 261-5.5;

    (21)  Court interpreting services revolving fund under section 607-1.5;

    (22)  Trauma system special fund under section 321-22.5;

    (23)  Hawaii cancer research special fund;

    (24)  Community health centers special fund;

    (25)  Emergency medical services special fund; [and]

    (26)  Rental motor vehicle customer facility charge special fund established under section 261-5.6[,]; and

    (27)  Land transportation modernization special fund established under section 248- ,

shall be responsible for its pro rata share of the administrative expenses incurred by the department responsible for the operations supported by the special fund concerned.

     (b)  Administrative expenses shall include:

     (1)  Salaries;

     (2)  Maintenance of buildings and grounds;

     (3)  Utilities; and

     (4)  General office expenses.

     (c)  The pro rata share of each special fund shall be that proportion of the administrative expenses of the department, including those paid from all special funds administered by the department, which the expenditures of the special fund bear to the total expenditures of the department; provided that in determining the amount to be charged to each special fund for its pro rata share:

     (1)  Credit shall be given for any administrative expenses paid from the special fund concerned; and

     (2)  Other adjustments shall be made as necessary to achieve an equitable apportionment.

     (d)  The director of finance may determine the amount to be charged to each special fund and may cause the amounts to be transferred to the general fund as reimbursements.

     (e)  No later than twenty days prior to the convening of each regular session of the legislature, the director shall report all departmental administrative expenses assessments made during the preceding fiscal year."

     SECTION 10.  The department of transportation shall be authorized to expend such funds for the pursuit of the projects and programs listed below.  Accounting of the appropriations by the department of accounting and general services shall be based on the projects as such projects are listed in this section.  Several related or similar projects may be combined into a single project if such combination is advantageous or convenient for implementation; and provided further that the total cost of the projects thus combined shall not exceed the total of the sum specified for the projects separately.  (The amount after each cost element and the total funding for each project listed in this part are in thousands of dollars.)

1.   SAFETY PROGRAM - Strategic highway safety program.

     Seven areas of the strategic highway safety plan are:

     -    Putting the brakes on aggressive driving

          Total funding $10,000

     -    Combating impaired driving

          Total funding $5,000

     -    Protecting vehicle occupants

          Total funding $2,000

     -    Safeguarding pedestrians and bicyclists

          Total funding $6,000

     -    Ensuring motorcycle and moped safety

          Total funding $1,000

     -    Building safer roadways by design

          Total funding $89,000

     -    Improving data and safety management systems

          Total funding $3,000

2.   SAFETY PROGRAM - Highway safety improvement program: Safety improvements statewide in which scope may include, but is not limited to, intersection channelization, installation of milled rumble strips on centerline and shoulders, superelevation assessment along entire segment, pavement markings, and signing.

          Total funding $43,294

3.   SAFETY PROGRAM - Bridge program: Bridge program includes bridge replacement, rehabilitation, widening, repair, lead abatement and inspection; seismic retrofit and tunneling.

     -    Oahu - Kamehameha Highway, Hoolapa Stream (Nanahu) Bridge replacement: design and construct Hoolapa Stream (Nanahu) Bridge replacement on Kamehameha Highway.

          Total funding $10,000

     -    Oahu - Kamehameha Highway, Makaua Stream Bridge rehabilitation: design and construct Makaua Stream Bridge rehabilitation on Kamehameha Highway.

          Total funding $5,000

     -    Oahu - Kamehameha Highway, Waikane Stream Bridge rehabilitation: design and construct Waikane Stream Bridge rehabilitation on Kamehameha Highway.

          Total funding $5,000

     -    Oahu - Kamehameha Highway, Kalauoa Springs Stream Bridge replacement: design and construct Kalauoa Springs Stream Bridge replacement on Kamehameha Highway.

          Total funding $10,000

     -    Oahu - Bridge, rehabilitation, replacement or seismic retrofit includes design, right of way and construction for rehabilitation, replacement and seismic retrofit of bridges at various locations.

          Interstate H-1, H-2, and H-3 structures

          Kalanianaole Highway, Inaole Stream Bridge, Waimanalo
Kamehameha Highway, Waiahole Bridge replacement
Kamehameha Highway, Kaipapau Stream Bridge rehabilitation
Kamehameha Highway, Kawela Stream Bridge replacement/rehabilitation
Kamehameha Highway, Makaha Bridges #3 and #3A replacement
Kamehameha Highway, Kaluanui Stream Bridge replacement

          Total funding $134,355

     -    Hawaii Belt Road, Hilea Stream Bridge replacement: design and construct Hilea Stream Bridge replacement on Hawaii Belt Road.

          Total funding $20,000

     -    Hawaii - Bridge, rehabilitation, replacement or seismic retrofit includes design, right of way and construction for rehabilitation, replacement and seismic retrofit of bridges at various locations.

          Hawaii Belt Road, Pahoehoe Stream Bridge replacement

          Kawaihae Road, Waiaka Stream Bridge replacement and realignment of approaches

          Total funding $6,420

     -    Maui - Kula Highway, Kaipoioi Stream Bridge rehabilitation: design and construction for Kaipoioi Stream Bridge rehabilitation on Kula Highway.

          Total funding $5,000

     -    Maui - Hana Highway, bridge preservation plan: plan for preservation of bridges on Hana Highway.

          Total funding $1,500

     -    Maui - Hana Highway, structural strengthening of various bridges

          Total funding $2,500

     -    Maui - Hana Highway, Mokulehua Stream Bridge rehabilitation/replacement: design and construct for Mokulehua Stream Bridge rehabilitation/replacement on Hana Highway.

          Total funding $7,000

     -    Maui - Hana Highway, Kopiliula Stream Bridge Rehabilitation/Replacement: design and construct for Kopiliula Stream Bridge replacement on Hana Highway.

          Total funding $9,000

     -    Molokai - Kamehameha Highway V, Kamiloloa Stream Bridge rehabilitation: design and construct Kamiloloa Stream Bridge rehabilitation on Kamehameha Highway V.

          Total funding $5,000

     -    Maui - Bridge, rehabilitation, replacement or seismic retrofit includes design, right of way and construction for rehabilitation, replacement and seismic retrofit of bridges at various locations.

Waiehu Beach Road, Iao Stream Bridge rehabilitation

Honoapiilani Highway, Honolua Bridge replacement

Kamehameha V Highway, Kawela Stream Bridge replacement, Molokai

Kamehameha V Highway, Makakupaia Stream Bridge replacement, Molokai

          Total funding $17,520

     -    Kauai - Kuhio Highway, Waioli, Waipa and Waikoko Stream Bridges replacement: design and construct Waioli, Waipa and Waikoko Stream Bridges replacement on Kuhio Highway.

          Total funding $30,000

     -    Kauai - Bridge, rehabilitation, replacement or seismic retrofit includes design, right of way and construction for rehabilitation, replacement and seismic retrofit of bridges at various locations.

Kuhio Highway, Kapaia Bridge replacement

Kaumualii Highway, Omao Bridge rehabilitation

          Total funding $19,528

     -    Statewide - Bridge inspection and appraisal: bridge inspection and appraisal at various bridges statewide.

          Total funding $18,000

4.   SAFETY PROGRAM - Rockfall and slope stabilization program

     -    Oahu - Rockfall protection (Haleiwa, Kahuku, Pali Highway): design and construct rockfall protection for Haleiwa, Kahuku and the Pali Highway areas.

          Total funding $16,760

     -    Oahu - Interstate Route H-1, School Street on-ramp retaining wall replacement: construct School Street on-ramp retaining wall replacement.

          Total funding $8,000

     -    Oahu - Kamehameha Highway, rockfall protection, vicinity of Wahiawa Town: design and construct rockfall protection on Kamehameha Highway in the vicinity of Wahiawa Town.

          Total funding $5,000

     -    Oahu - Kamehameha Highway, rockfall protection, vicinity of North Shore: design and construct rockfall protection on Kamehameha Highway in the vicinity of North Shore.

          Total funding $5,000

     -    Hawaii - Hawaii Belt Road, rockfall protection phases I and II: construct rockfall protection on Hawaii Belt Road.

          Total funding $16,000

     -    Hawaii - Hawaii Belt Road, rockfall protection at various locations: design and construct rockfall protection on Hawaii Belt Road at various locations.

          Total funding $20,000

     -    Maui - Hana Highway slope stabilization and Honoapiilani Highway rockfall protection: plans for Hana Highway slope stabilization and Honoapiilani Highway rockfall protection.

          Total funding $500

     -    Kauai - Kuhio Highway, slope protection, vicinity of Wainiha Bay: design and construct Kuhio Highway slope protection in the vicinity of Wainiha Bay.

          Total funding $950

     -    Kauai - Kuhio Highway slope stabilization, vicinity of Hanalei Bridge: construct Kuhio Highway slope stabilization in the vicinity of Hanalei Bridge.

          Total funding $6,955

     -    Kauai - Kuhio Highway retaining walls at Lumahai and Wainiha: plan, design and construct retaining walls at Lumahai and Wainiha.

          Total funding $4,740

     -    Statewide - Rockfall and slope stabilization inspection: rockfall and slope stabilization inspection at various locations statewide.

          Total funding $9,000

5.   SAFETY PROGRAM - Shoreline protection program

     -    Oahu - Kamehameha Highway, shoreline protection, vicinity of Punaluu: design and construct shoreline protection for Punaluu area.

          Total funding $5,300

     -    Oahu - Kamehameha Highway realignment, Haleiwa to Waimea Bay: design Kamehameha Highway realignment from Haleiwa to Waimea Bay.

          Total funding $3,100

     -    Oahu - Kamehameha Highway, shoreline protection, vicinity of Hauula: design and construct Kamehameha Highway shoreline protection in the vicinity of Hauula.

          Total funding $5,700

     -    Oahu - Kamehameha Highway, shoreline protection, vicinity of Kaaawa: design and construct Kamehameha Highway shoreline protection in the vicinity of Kaaawa.

          Total funding $10,840

     -    Oahu - Kamehameha Highway, shoreline protection, vicinity of Kawailoa Beach: design Kamehameha Highway shoreline protection in the vicinity of Kawailoa Beach.

          Total funding $1,700

     -    Hawaii - Hilo Bayfront Highway, shoreline protection: construct shoreline protection along Hilo Bayfront Highway.

          Total funding $2,260

     -    Hawaii - East Hawaii, shoreline protection: design and construct shoreline protection along East Hawaii.

          Total funding $10,000

     -    Maui - Shoreline Protection (Launiupoko, Olowalu, Niaupala Fishpond, Wailua-Kumimi, Kealia Pond): design and construct shoreline protection in Launiupoko, Olowalu, Niaupala Fishpond, Wailua-Kumimi and Kealia Pond areas.

          Total funding $14,110

     -    Maui - Honoapiilani Highway, shoreline protection: design and construct shoreline protection along Honoapiilani Highway.

          Total funding $10,000

     -    Maui - Kahului Beach Road, shoreline protection: design and construct shoreline protection along Kahului Beach Road.

          Total funding $5,000

     -    Maui - North Kihei Road, shoreline protection: design and construct shoreline protection along North Kihei Road.

          Total funding $10,000

     -    Kauai - Kuhio Highway, shoreline protection, vicinity of Hanalei Bay: construct shoreline protection in the Hanalei Bay area.

          Total funding $2,300

     -    Kauai - East Kauai, shoreline protection: design and construct shoreline protection in East Kauai.

          Total funding $10,000

     -    Statewide - Shoreline inspection: shoreline inspection at various locations statewide.

          Total funding $6,000

6.   SAFETY PROGRAM - Guardrail and shoulder improvement program

     -    Oahu - Guardrail and shoulder improvements: guardrail and shoulder improvements at various locations.

          Total funding $16,132

     -    Hawaii - Guardrail and shoulder improvements: guardrail and shoulder improvements at various locations.

          Total funding $7,329

     -    Maui - Guardrail and shoulder improvements: guardrail and shoulder improvements at various locations.

          Total funding $1,000

     -    Kauai - Guardrail and shoulder improvements: guardrail and shoulder improvements at various locations.

          Total funding $1,259

7.   SAFETY PROGRAM - Motor vehicle safety program: motor carrier and highway safety and sign and traffic signal management.

     -    Statewide - Other facility improvements: plans, designs, construction and equipment for facility improvements.

          Total funding $11,891

8.   CONGESTION PROGRAM - Capacity program

     -    Oahu - Kalanianaole Highway improvements, Olomana Golf Course to Waimanalo Beach Park, phases I and II
Construct improvements on Kalanianaole Highway from Olomana Golf Course to Waimanalo Beach Park.

          Total funding $24,480

     -    Oahu - PM Contraflow from Paiwa Interchange to Waiawa Interchange, phase I: design and construct phase I of the PM Contraflow lane from Paiwa Interchange to Waiawa Interchange.

          Total funding $23,600

     -    Oahu - Intersection operational improvements to reduce congestion: design and construct various intersection operational improvements aimed to reduce congestion at various locations.

          Total funding $7,800

     -    Oahu - Interstate Route H-1 corridor improvements: plans for various H-1 corridor improvements.

          Total funding $520

     -    Oahu - Interstate Route H-1, Lunalilo Street off-/on-ramp: design for Lunalilo Street on-ramp and off-ramp improvements.

          Total funding $1,080

     -    Oahu - Interstate Route H-1, Kunia Interchange improvements: plans for Kunia Interchange improvements.

          Total funding $780

     -    Oahu - Fort Barrette Road widening, Farrington Highway to Barbers Point Gate: construction for Fort Barrette Road widening from Farrington Highway to Barbers Point Gate

          Total funding $22,450

     -    Oahu - Interstate Route H-1, Kapolei Interchange, phase 2: construct phase 2 of Kapolei Interchange on H-1.

          Total funding $26,000

     -    Oahu - Interstate Route H-1, eastbound, Ward Avenue on-ramp to University Interchange: design H-1 eastbound improvements from Ward Avenue on-Ramp to University Interchange.

          Total funding $850

     -    Oahu - Interstate Route H-1, Waiawa Interchange, Westbound, Waipahu off-ramp improvements: design Waipahu off-ramp improvements at the Waiawa Interchange westbound.

          Total funding $3,120

     -    Oahu - Interstate Route H-1 widening, eastbound, Waiau Interchange to Halawa Interchange, phase I: design H-1 widening eastbound from Waiau Interchange to Halawa Interchange, phase I.

          Total funding $4,160

     -    Oahu - PM Contraflow from Keehi Interchange to Waiawa Interchange, phase II; design and construct phase II of the PM Contraflow lane from Keehi Interchange to Waiawa Interchange.

          Total funding $50,000

     -    Oahu - Interstate Route H-1, eastbound improvements, vicinity of Ola Lane to vicinity of Vineyard off-ramp: construct H-1 eastbound improvements in the vicinity of Ola Lane to Vineyard off-ramp.

          Total funding $100,000

     -    Oahu - Nimitz Viaduct, Keehi Interchange to Pacific Street: planning, design, right of way and construction for Nimitz Viaduct from Keehi Interchange to Pacific Street.

          Total funding $600,000

     -    Hawaii - Intersection operational improvements to reduce congestion: construct various intersection operational improvements aimed to reduce congestion at various locations.

          Total funding $11,085

     -    Hawaii - Queen Kaahumanu Highway, Keahole Airport to Kawaihae Harbor

          Total funding $780

     -    Hawaii - Hawaii Belt Road, Mud Lane to the Kamuela Race Track (Waimea Bypass): right-of-way and construction for the Hawaii Belt Road from Mud Lane to the Kamuela Race Track.

          Total funding $48,000

     -    Hawaii - Puainako Street Widening, Kanoelehua Avenue to Komohana Street, phase I and II; design phases I and II of Puainako Street widening from Kanoelehua Avenue to Komohana Street.

          Total funding $1,500

     -    Hawaii - Kealakehe Parkway Extension, Keanalehu Drive to Kealakaa Street: design and right of way for Kealakehe Parkway Extension from Keanalehu Drive to Kealakaa Street.

          Total funding $1,808

     -    Hawaii - Keaau-Pahoa Road shoulder lane conversion, Keaau Bypass Road to Shower Drive; construct the Keaau-Pahoa Road shoulder lane conversion from Keaau Bypass Road to Shower Drive.

          Total funding $15,900

     -    Hawaii - Keaau-Pahoa Road improvements, Keaau to Pahoa, phases 1 and 2; design phases 1 and 2 improvements of Keaau-Pahoa Road from Keaau to Pahoa.

          Total funding $3,000

     -    Hawaii - Kuakini Highway Widening, Henry Street to Kamehameha III Road: design, right of way and construction for Kuakini Highway widening from Henry Street to Kamehameha III Road.

          Total funding $84,000

     -    Hawaii - Kawaihae Road Bypass, Waimea to Kawaihae, phases 1 and 2: design, right of way and construction for phases 1 and 2 of the Kawaihae Road Bypass from Waimea to Kawaihae.

          Total funding $122,200

     -    Maui - Intersection operational improvements to reduce congestion: construct various intersection operational improvements aimed to reduce congestion at various locations.

          Total funding $10,600

     -    Maui - Kahului Airport Access Road: construct Kahului Airport Access Road.

          Total funding $21,100

     -    Maui - Paia Bypass Road
Design Paia Bypass Road.

          Total funding $3,120

     -    Maui - Honoapiilani Highway widening, Maalaea to Launiupoko: design Honoapiilani Highway widening from Maalaea to Launiupoko.

          Total funding $4,000

     -    Maui - Lahaina Bypass, phase 1B1, 1B2 and 1C: planning, design, right of way and construction for various phases of the Lahaina Bypass.

          Total funding $175,000

     -    Maui - Puunene Avenue widening, Wakea Avenue to Kuihelani Highway: design, right of way and construction for Puunene Avenue widening, from Wakea Avenue to Kuihelani Highway.

          Total funding $5,525

     -    Maui - Hana Highway widening, Kaahumanu Ave to vicinity of Airport Access Road: design, right of way and construction for Hana Highway widening, from Kaahumanu Avenue to the vicinity of Airport Access Road.

          Total funding $8,500

     -    Maui - Kihei-Upcountry Road, phases 1 and 2: right-of-way and construction for phases 1 and 2 of the Kihei-Upcountry Road.

          Total funding 136,500

     -    Kauai - Intersection operational improvements to reduce congestion: design, right of way and construction for various intersection operational improvements aimed to reduce congestion at various locations.

          Total funding $19.178

     -    Kauai - Kapule Highway Widening, Kuhio Highway to Rice Street: plan Kapule Highway widening from Kuhio Highway to Rice Street.

          Total funding $2,000

     -    Kauai - Puhi-Hanamaulu, alternate route: plan Puhi-Hanamaulu alternate route.

          Total funding $4,000

     -    Kauai - Kuhio Highway improvements, Hanamaulu to Kapaa, phase I: design Kuhio Highway improvements from Hanamaulu to Kapaa, phase I.

          Total funding $2,000

     -    Kauai - Kuhio Highway, short term improvements, Kuamoo Road to Temporary Bypass Road: construct short term improvements on Kuhio Highway from Kuamoo Road to the Temporary Bypass Road.

          Total funding $25,000

     -    Kauai - Kaumualii Highway widening, phase 1: design, right of way and construction for Kaumualii Highway widening, phase 1.

          Total funding $62,800

9.   CONGESTION PROGRAM - Freeway Management System (FMS) Program, phases 1 through 4, system manager, operation/maintenance and freeway service patrol, Oahu: design and construction for Oahu' s freeway management system, which include traveler information and incident management.

Total funding $110,900

10.  CONGESTION PROGRAM - Traffic signal optimization program, various locations, Oahu: synchronized traffic signal programming at various locations.

          Total funding $15,405


11.  CONGESTION PROGRAM - Bicycle program

     -    Oahu - Leeward Bikeway, phases I and II, Waipio Point Access Road to Lualualei Naval Road: design, right of way and construction for Leeward Bikeway, phases I and II.

          Total funding $9,000

     -    Oahu - Kalanianaole Highway bicycle improvements, Waimanalo Beach Park to Makapuu Lookout: construct bicycle improvements on Kalanianaole Highway from Waimanalo Beach Park to Makapuu Lookout.

          Total funding $2,200

     -    Maui - Other bikeway improvements: construct improvements such as signage, bike pullouts and improved shoulders.

          Total funding $3,224

     -    Statewide - Bicycle improvements that are incorporated in safety, congestion and system preservation projects statewide

          Total funding $17,000

12.  CONGESTION PROGRAM - Pedestrian program

     -    Pedestrian work is incorporated in safety, congestion and system preservation projects statewide.

          Total funding $17,000

     -    ADA compliance projects

          Total funding $2,000

     -    Pedestrian countdown timers, phase 2

          Total funding $3,500

13.  SYSTEM PRESERVATION PROGRAM - Pavement preservation

     -    Oahu - Pavement preservation

          Total funding $58,000

     -    Hawaii - Pavement preservation

          Total funding $40,000

     -    Maui - Pavement preservation

          Total funding $10,000

     -    Kauai - Pavement preservation

          Total funding $12,000

14.  SYSTEM PRESERVATION PROGRAM - Rehabilitation program

     -    Oahu - Interstate Route H-1, Pearl City and Waimalu Viaduct improvements, phases 1, 2, 3 and 4: design and construction for various phases of H-1 Pearl City and Waimalu Viaduct improvements.

          Total funding $57,250

     -    Hawaii - Akoni Pule Highway realignment and widening at Aamakao Gulch: right of way and construction of Akoni Pule Highway realignment and widening at Aamakao Gulch.

          Total funding $7,020

     -    Kauai - Waimea Canyon Drive/Kokee Road improvements: design improvements at Waimea Canyon Drive and Kokee Road.

          Total funding $600

15.  SYSTEM PRESERVATION PROGRAM - Drainage improvement program

     -    Oahu - Drainage improvements
Right of way and construction for drainage improvements at various locations.

          Total funding $10,850

     -    Hawaii - Drainage improvements: design, right of way and construction for drainage improvements at various locations.

          Total funding $15,000

     -    Maui - Drainage improvements: design, right of way and construction for drainage improvements at various locations.

          Total funding $3,585

     -    Kauai - Drainage improvements; design, right of way and construction for drainage improvements at various locations.

          Total funding $2,000

     -    Statewide - Drainage improvements: design, right of way and construction for drainage improvements at various locations.

          Total funding $5,000

16.  SYSTEM PRESERVATION PROGRAM - Street light pole replacement program

     -    Oahu - Highway lighting improvements
Lighting improvements on Interstate Route H-1, Kamehameha Highway and Moanalua Freeway.

          Total funding $30,000

17.  SYSTEM PRESERVATION PROGRAM - Destination sign replacement program

     -    Interstate Route H-1, H-2, H-3 and Moanalua Freeway, Destination sign upgrade/replacement, Phase I and II

          Total funding $60,500

18.  SYSTEM PRESERVATION PROGRAM - Special maintenance program: asphalt overlays, asphalt cold planing and paving (in-kind) and re-striping.

     -    Oahu - Special maintenance

          Total funding $124,800

     -    Hawaii - Special maintenance

          Total funding $63,200

     -    Maui - Special maintenance

          Total funding $74,000

     -    Kauai - Special maintenance

          Total funding $39,000

19.  SYSTEM PRESERVATION PROGRAM - Operations and maintenance program: pavement sealing, pothole patching and crack filling.

     -    Oahu - Operations and maintenance

          Total funding $297,300

     -    Hawaii - Operations and maintenance

          Total funding $21,000

     -    Maui - Operations and maintenance

          Total funding $30,180

     -    Kauai - Operations and maintenance

          Total funding $19,100


20.  SYSTEM PRESERVATION PROGRAM - Landscaping program

     -    Oahu - Landscaping improvements, various locations
Right of way and construction for landscaping improvements at various locations.

          Total funding $2,507

     -    Maui - Hana Highway/Kaahumanu Avenue beautification, Dairy Road to Naniloa Overpass

          Total funding $1,066

21.  OTHER PROGRAMS - Highway modernization plan

     -    Statewide - Highway modernization plan and program management

          Total funding $60,000

22.  OTHER PROGRAMS - Traffic counting stations

     -    Statewide - Traffic counting stations, various locations, phase II

          Total funding $3,875

23.  OTHER PROGRAMS - Facility improvements

     -    Hawaii - District baseyard improvements

          Total funding $2,910

     -    Maui - District baseyard improvements
Baseyard improvements for West Maui, Lanai and Molokai.

          Total funding $510

24.  OTHER PROGRAMS - Staff labor

     -    Statewide - Highways Division staff labor costs

          Total funding $159,180

25.  OTHER PROGRAMS - Environmental program

     -    Oahu - Kamehameha Highway wetland enhancement, vicinity of Ukoa Pond

          Total funding $5,500

     -    Statewide - Work to comply with EPA

          Total funding $10,848

26.  OTHER PROGRAMS - Highway planning program

     -    Statewide - Highway planning program

          Total funding $8,825

     SECTION 11.  The department of transportation shall develop one or more pilot programs to test alternatives to the current state and county system of motor vehicle fuel taxes.  Such pilot programs may include but are not limited to programs to test the reliability, ease of use, cost, and public acceptance of technology and methods for:

     (1)  Identifying vehicles;

     (2)  Collecting and reporting the number of miles traveled by particular vehicles; and

     (3)  Collecting payments from or making payments to participants in pilot programs.

     SECTION 12.  The department of taxation may refund motor vehicle fuel taxes paid by participants in pilot programs under this Act, or may otherwise compensate participants in pilot programs under this Act.  The department of transportation may terminate a pilot program at any time and may terminate participation by any person at any time, and shall notify the department of taxation.  Termination from a pilot program under this Act shall not entitle any person to additional compensation.

     SECTION 13.  The increase in taxes and fees in sections 2, 3, 4, and 5 shall not take effect until such time that the state economy has improved with a resultant one percent growth in Hawaii' s statewide non-agricultural wage and salary job growth for two consecutive quarters as compared with the same quarters in the previous year as published by the state department of business and economic development and tourism.

     SECTION 14.  The increases in sections 2, 3, 4, and 5 shall take effect six months following the occurrence of the economic condition under section 11.

     SECTION 15.  If, however, the tax and fee increases in sections 2, 3, 4, and 5 are not triggered by the third year following the effective date of this legislation, the department of transportation shall return to current operational and priority status.

     SECTION 16.  The department of transportation shall provide staff and administrative services necessary for purposes of this Act.  Without regard to chapters 76 and 77, Hawaii Revised Statutes, the department may employ, fix compensation, and at pleasure dismiss such persons as it finds necessary for purposes of this Act.  Such services shall include authorization to execute a master agreement with a consultant to serve as the program manager to facilitate the implementation of the highways modernization plan.

     SECTION 17.  In addition to other moneys appropriated by the general appropriations act of 2009 in fiscal year 2009-2010 for highway administration (TRN 595), highway planning, statewide, item no. C-  , there is appropriated an additional sum of $20,000,000 of highway revenue bonds, and the sum of $1 of federal funds, of which $6,000,000 may be designated for the execution of a master agreement with a consultant under section 16, and the additional sum of $2,500,000 of highway revenue bonds, and the sum of $1 of federal funds for the vehicle miles tax pilot program under sections 11 and 12, or so much thereof as may be necessary to carry out the purposes of this Act, including any necessary expenditures for expenses, staff, or consultants.  The sums appropriated shall be expended by the department of transportation.  This project is deemed necessary to qualify for federal aid financing and/or reimbursement.

     SECTION 18.  Should additional federal funds become available for land transportation infrastructure improvements under the federal economic stimulus plan or similar program, the department of transportation is hereby authorized to pursue, apply, and/or expend such federal funds on any of the programs or projects identified in section 10 notwithstanding any other law to the contrary.

     SECTION 19.  Notwithstanding any other law to the contrary, the appropriations authorized under this Act shall not lapse for a period of six years from the date of execution, and shall not be subject to transfer out of the land transportation modernization special fund into another state fund, including the general fund.

     SECTION 20.  The department of transportation shall submit an interim progress report on the status of the land transportation modernization program to the legislature not later than twenty days prior to the convening of the regular session of 2011, yearly progress reports to the legislature not later than twenty days prior to the convening of each regular session thereafter, and a final report to the legislature not later than twenty days prior to the convening of the regular session of 2016.  The department of transportation shall submit a final report on the vehicle miles traveled pilot program to the legislature not later than twenty days prior to the convening of the regular session of 2012 with findings and recommendations from the pilot program under this Act.

     SECTION 21.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 22.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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BY REQUEST