Bill > SB1638

This bill establishes a three-year Molokai Air Carrier Subsidy Pilot Program within Hawaii's Department of Transportation to address the challenges of air travel for Molokai residents, who often struggle with affordable transportation for essential services like healthcare and education. The program will provide financial subsidies to airlines operating out of Molokai Airport, with specific requirements for applicants including exclusive use of funds for operational costs, compliance with non-discrimination laws, and demonstrating measurable improvements in air service availability or affordability. Qualified air carriers must meet several conditions, such as indemnifying the state, maintaining proper insurance, providing records for monitoring, and showing tangible benefits like increased flight frequencies or reduced airfares. The Department of Transportation will conduct annual audits to ensure funds are used appropriately, with potential penalties for misuse including fund repayment and future subsidy ineligibility. The department is also required to submit comprehensive reports to the legislature before the 2026, 2027, and 2028 legislative sessions detailing the program's impact, including flight numbers, travel costs, and benefits to Molokai residents. The bill appropriates an unspecified amount of state general revenue funds for the program and is set to take effect on July 1, 3000, with a planned sunset date of June 30, 2028.

Budget and Finance, Transportation and Infrastructure

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1638&year=2026