RELATING TO THE LAHAINA BYPASS.

2025 Regular Session Introduced by Angus McKelvey

SB 1659 funds the Lahaina Bypass to improve traffic flow and safety, benefiting local residents and boosting tourism through various revenue sources.

Carried over to 2026 Regular Session.

#gobonds #lahainabypass #rentalmotorvehiclesurchargetax #revenuebonds($) #statehighwayfund #transientaccommodationstaxes

Purpose and Intent

SB 1659 aims to facilitate the development and funding of the Lahaina Bypass, a critical infrastructure project intended to improve traffic flow and safety in the Lahaina area of Hawaii. The bill seeks to address transportation challenges and enhance access to local attractions and businesses, thereby supporting economic growth and tourism.

Key Provisions

Funding Mechanisms: The bill proposes the use of various funding sources, including:

General Obligation (GO) Bonds: These bonds will be issued to finance the construction and development of the Lahaina Bypass.
Revenue Bonds: Additional revenue bonds may be utilized to support the project financially.
Rental Motor Vehicle Surcharge Tax: A surcharge on rental vehicles will contribute to the funding pool for the bypass.
Transient Accommodations Taxes: A portion of taxes collected from transient accommodations will also be allocated to support the project.

State Highway Fund: The bill outlines provisions for the allocation of funds from the State Highway Fund to ensure the ongoing maintenance and operation of the bypass once completed.

Affected Parties

Local Residents: The Lahaina community will benefit from improved traffic conditions and enhanced access to essential services and attractions.

Tourism Sector: Businesses reliant on tourism may see increased patronage due to improved accessibility.

Government Agencies: State and local transportation agencies will be involved in the planning, execution, and oversight of the bypass project.

Legislative Timeline and Procedural Aspects

Introduced: January 23, 2025

First Reading: January 27, 2025

Committee Referral: Referred to the Transportation and Communications (TCA) and Ways and Means (WAM) committees.

Public Hearing: Scheduled for February 11, 2025, at 3:01 PM in Conference Room 224 and via videoconference.

Committee Recommendations: On February 11, 2025, the TCA committee recommended the bill be passed with amendments. The report was adopted on February 14, 2025, and the bill passed its Second Reading as amended (SD 1) before being referred to WAM.

Conclusion

SB 1659 represents a significant step towards enhancing transportation infrastructure in Lahaina, with a multifaceted funding approach designed to support the project. The bill's passage could lead to improved traffic conditions and economic benefits for the local community and tourism sector. As it moves through the legislative process, stakeholders will continue to monitor its progress and implications.

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