SB2994

SECTION 1. The legislature finds that the use of public transit has social, environmental, and economic benefits. Public transit provides access to education, employment, and community activities. The legislature further finds that public transit is especially critical for individuals without driver's licenses or functional vehicles or for individuals who cannot afford to pay for gas, parking, and insurance. This segment of the population includes residents who are low-income, disabled, or too young to drive. The legislature additionally finds that public transit plays a crucial role in Hawaii's transition away from fossil fuels for transportation as the bus fleet becomes electrified and powered by renewable energy. Furthermore, the legislature finds that the use of public transit reduces traffic congestion and the demand for parking, thereby decreasing costs for many businesses and increasing access for customers.

Moreover, the legislature finds that making bus service free to youth increases equitable access to mobility today while developing habits and knowledge that may dispose youth to continue using public transit as adults. Families traveling with children who previously may have determined that private vehicle travel was more economical than the purchase of multiple transit fares would, under this Act, experience a reduction in total transportation costs, as eligible children would be permitted to use public transit services without charge. Fewer private vehicles on the road will help move the State toward its zero-emissions transportation goals, reduce transit time for all road users, and require less land devoted to parking.

In addition, the legislature finds that there are already various free or discounted fares for children and youth in each county of the State. Free bus service for individuals under the age of twenty-five on Maui and free bus service for all riders on Hawaii island have increased ridership on those islands. The city and county of Honolulu and county of Kauai do not charge riders under six and seven years old, respectively, and offer reduced fares for passengers up to the age of nineteen and eighteen, respectively.

The legislature also finds that the department of education is already spending $1,890,000 this year for 6,208 middle and high school students on Oahu and ninety-nine students on Kauai to use the public bus instead of a school bus due to shortages of school bus drivers. The department of education and the city and county of Honolulu and county of Kauai already have systems in place to distribute and manage bus passes through school administrations and for the counties to charge only for the number of passes actually used. To reduce the administrative burden on the counties, it is proposed that these systems continue to be used. However, for the purposes of this pilot program, the passes would be usable year-round rather than just during the school year. In addition, comparable systems would be established with public charter schools and private schools. Age-eligible youth who do not attend school would also be able to acquire passes directly from public transit offices by providing proof of age and residency.

Therefore, the purpose of this Act is to establish a two-year pilot program to extend fare-free county transit services to all children from birth through eighteen years of age.

SECTION 2. (a) As used in this Act:

"Child" or "children" means an individual:

(1) From birth up to, but not including, nineteen years of age; and

(2) Who is a resident of Hawaii.

"County transit service" means a public bus or rail service, operated by or on behalf of a county in the State.

"Keiki" means child or children.

(b) The department of transportation, in coordination with the counties, shall establish a two-year keiki fare-free transit pilot program to expand fare-free county transit services to children in counties that currently charge these children a fare.

(c) Fare-free access to county transit services for children, as defined in this Act, shall be deemed a privilege and not a right. This privilege may be suspended or revoked for cause if a rider engages in conduct that endangers the safety of others or reasonably causes other passengers or transit personnel to feel unsafe while the rider is using county transit services.

(d) The department of transportation shall coordinate with the counties to evaluate the pilot program's:

(1) Impact on ridership, costs, and transportation equity for disadvantaged and rural communities; and

(2) Alignment with state environmental goals.

(e) If the department of transportation's evaluation justifies continuation of the keiki fare-free transit pilot program and its expansion statewide, the department shall propose a sustainable revenue source to continue the program beyond the end of the pilot program and expand the program statewide.

SECTION 3. No later than twenty days prior to the convening of the regular session of 2029, the department of transportation shall submit a report to the legislature regarding the pilot program's implementation, including data on ridership; costs; administrative issues; and recommendations for continuation or modification of the program, or both, or discontinuation. If the department's recommendation is to continue the keiki fare-free transit pilot program and to expand the program statewide, the report shall also include recommendations for a sustainable funding source to support the program.

SECTION 4. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2026-2027 for the department of transportation, in coordination with the city and county of Honolulu and county of Kauai, to:

(1) Provide fare-free county transit service for all children, as defined in this Act; and

(2) Cover necessary administrative and program evaluation costs associated with the implementation and operation of the keiki fare-free transit pilot program.

The sum appropriated shall be expended by the department of transportation for the purposes of this Act.

SECTION 5. The appropriation made by this Act shall not lapse at the end of the fiscal year for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2028, shall lapse as of that date.

SECTION 6. This Act shall take effect on July 1, 2026; provided that section 2 of this Act shall be repealed on June 30, 2028.

INTRODUCED BY:

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THE SENATE	S.B. NO.	2994
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII