Bill > SB1659

This bill establishes a comprehensive funding mechanism for the Lahaina Bypass North, a critical infrastructure project in West Maui, Hawaii. The bill introduces a special assessment on rental motor vehicle surcharges for counties with populations between 100,000 and 200,000, with the funds specifically allocated to the state highway fund for the bypass project. Additionally, the bill redirects 50% of transient accommodations tax revenues from West Maui (defined as the area congruent to the Maui County Council West Maui residency area) to the state highway fund. The legislation authorizes the director of finance to issue both general obligation and revenue bonds to fund the construction, maintenance, and repair of the bypass, with revenue bonds to be repaid from specific allocated funds. The bill also requires the Department of Transportation to provide annual reports to the legislature detailing the project's financial progress and implementation. The special assessment on rental vehicles will sunset in 2035, and the overall act is set to take effect on July 1, 2050, with some provisions beginning earlier in January 2026. The bypass is considered crucial for improving traffic flow, supporting emergency response, and accommodating projected population growth in the West Maui region, particularly in the wake of recent wildfires that highlighted transportation network vulnerabilities.

Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1659&year=2026