S.B. NO.



















     SECTION 1.  The legislature finds that counties need revenue to operate and maintain bus systems and other mass transit systems.  The legislature notes the counties have attempted to meet revenue needs by increasing rider fares.  However, these increases often place a financial burden on riders.  The legislature therefore believes that mass transit fare increases should be a last resort.

     Accordingly, the purpose of this Act is to establish that before any county imposes any new mass transit fare or fare increase, the county shall first seek revenue from alternative sources, including advertising.

     SECTION 2.  Chapter 51, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

     "§51-     Fares; revenue; transit-based advertisements.  (a)  Revenues from fares for mass transit systems and revenues from transit-based advertisements described in subsection (c) shall be reserved only for a county's mass transit system purposes, including operation and maintenance.

     (b)  Before a county establishes any new fare or increase in any existing fare intended to take effect after July 1, 2021, for a mass transit system authorized by this chapter, the county shall first determine whether the additional revenue sought from the proposed fare establishment or increase may be obtained through other means, including transit-based advertisements.

     (c)  A county subject to subsection (a) shall seek fair market compensation from governmental and nongovernmental entities, as applicable, for the display of paid advertisements displayed:

     (1)  On the interior of the vehicles in the mass transit system;

     (2)  On the exterior of the vehicles in the mass transit system; provided that the county shall not be required to authorize advertisements on the front exterior of the vehicles; and

     (3)  At stopping points for the vehicles in the mass transit system.

     (d)  Notwithstanding subsection (b), a county may:

     (1)  Establish reasonable restrictions on the placement, format, size, and material of transit-based advertisements to ensure the health and safety of passengers, operators, and the general public; and

     (2)  Prohibit any advertisement that:

          (A)  Bears the name, signature, picture or likeness of any elected federal, state, or city official or of any candidate for federal, state, or city elective office;

          (B)  By reason of design, format or subject matter, promotes or appeals to racial, religious, or ethnic prejudice or violence;

          (C)  Contains pictures, words, or symbols of an obscene, lewd, lascivious, or indecent character;

          (D)  Promotes any illegal, indecent, or immoral purpose; or

          (E)  Promotes any product or service that is prohibited by law to be sold or offered for sale to minors or an age-based subgroup of minors.

     (e)  A county that determines that a fare establishment or increase as described in subsection (a) is necessary shall submit a justification report to the department of transportation.  The report shall include, at a minimum:

     (1)  The proposed new fare or fare increase; and

     (2)  A description of the attempts the county made to raise revenues through alternative means.

     (f)  The department of transportation shall have thirty days from the date of receipt of a county's justification report to make a decision on the report.  If the department of transportation rejects the proposed new fare or fare increase, the county shall not establish or increase the fare.  If the department of transportation does not submit a decision to the county within thirty days, the proposed new fare or fare increase shall be deemed approved.  If the department of transportation approves the new fare or fare increase, the county may establish the new fare or fare increase as provided by county ordinance."

     SECTION 3.  New statutory material is underscored.

     SECTION 4.  This Act shall take effect upon its approval.








Report Title:

Counties; Mass Transit; Buses; Rail; Fares; Advertisements; DOT



Requires a county to first seek revenue from alternative sources, including advertising, before imposing any new mass transit fare or fare increase.  Requires prior approval of a new fare or fare increase from the department of transportation.




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.