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SB 1659 Hawaii Senate · 2026 Regular Session

RELATING TO THE LAHAINA BYPASS.

Summary
Adds a special assessment to the Rental Motor Vehicle Surcharge Tax, sunsetting in 10 years, to fund revenue bonds for the Lahaina Bypass North. Includes payment of principal and interest of revenue bonds for the construction, operation, and maintenance costs of the Lahaina Bypass North as a permissible use of the State Highway Fund. Authorizes the issuance of general obligation and revenue bonds to fund the Lahaina Bypass North. Directs transient accommodations taxes collected from West Maui transient accommodations to fund the Lahaina Bypass North. Defines "West Maui". Effective 7/1/2050. (SD1)
Issues: ✓ Budget & TaxesSupports Budget & TaxesBill adds special assessment to rental vehicle tax to fund Lahaina Bypass via revenue bonds, directly increasing tax revenue allocation for infrastructure spending within state budget framework.90% confidence ✓ TransportationSupports TransportationFunds Lahaina Bypass highway construction via revenue bonds and State Highway Fund, directly advancing road infrastructure project.95% confidence
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2025
Committee Review
Feb 2025
Senate Passage
Feb 2025
House Passage
Governor
Introduced Jan 23, 2025 Last action Dec 8, 2025
Maddy AI version diff · 1 comparison

What changed between versions

SB1659 → SB1659_SD1 · 5 edits
MODERATE
This bill revision removes the authorization for public-private partnerships and ghost tolling, replacing them with a mandate for the state to issue general obligation bonds. It also clarifies the definition of 'West Maui' to ensure tax revenues are correctly allocated and adjusts the bill's effective date to July 1, 2050.
Scope change
The bill's scope shifted from allowing private sector involvement in financing and construction to a purely state-funded project using general obligation bonds.
FISCAL

Removed all provisions authorizing public-private partnerships, ghost tolling, and lease-backed financing mechanisms.

Added authorization for the director of finance to issue general obligation bonds to fund the project.

DEFINITION

Added a specific definition for 'West Maui' to clarify which area's transient accommodations tax revenues apply.

TIMELINE

Changed the bill's effective date from July 1, 2025, to July 1, 2050.

REQUIREMENT

Removed requirements for the department to provide reports on public-private partnership lessons learned and proposal evaluations.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).
Full legislative history

Actions timeline

Total actions
8
Key actions
3
Committee
4
Feb 14, 2025
Upper · Passed
Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.
upper
Feb 14, 2025
Committee
Reported from TCA (Stand. Com. Rep. No. 623) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.
upper
Feb 11, 2025
Upper · Passed
The committee(s) on TCA recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in TCA were as follows: 4 Aye(s): Senator(s) Lee, C., Elefante, Kanuha, DeCorte; Aye(s) with reservations: none ; 1 No(es): Senator(s) Inouye; and 0 Excused: none.
upper
Feb 7, 2025
Upper · Passed
The committee(s) on TCA has scheduled a public hearing on 02-11-25 3:01PM; Conference Room 224 & Videoconference.
upper
Jan 27, 2025
Committee
Referred to TCA, WAM.
upper
Jan 23, 2025
Introduced
Introduced.
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Angus McKelvey
Angus McKelvey
DDemocratic
HI
6