HI HB1177

Establishes a five-year interisland transportation fee reimbursement pilot program through the Department of Transportation to reimburse carriers for actual transportation costs of essential goods (food, agricultural products, medical supplies, building materials for affordable housing) between Hawaiian islands

Extends the annual $0.50 increase in the rental motor vehicle surcharge from December 31, 2027 to December 31, 2031, with revenues funding the reimbursement pilot program through the state highway fund

Requires the Department of Transportation to establish by October 30, 2025 a standardized application process with online portal, certification process for essential goods, eligibility guidelines, and budget monitoring procedures including quarterly financial reports

Imposes penalties on carriers engaging in fraudulent practices, including full repayment of reimbursed funds, fines up to $50,000 per incident, and potential suspension from the program

Appropriates $336,724 for each of fiscal years 2025-2026 and 2026-2027 for four full-time positions to develop and monitor the pilot program, which takes effect July 1, 2025 and sunsets June 30, 2030