HOUSE OF REPRESENTATIVES

H.B. NO.

1785

THIRTY-THIRD LEGISLATURE, 2026

H.D. 1

STATE OF HAWAII

S.D. 1

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO STUDENT TRANSPORTATION.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  The legislature finds that, while the number of school bus drivers has increased since the governor's August 2, 2024, emergency proclamation relating to school bus services, the department of education continues to experience a school bus driver shortage.

     The legislature further finds that some school bus contractors enter into contracts but are later unable to provide transportation for all contracted routes.  Under existing law, the department of education cannot simply cancel or reassign the unfulfilled portion of the contract.  This leaves students without access to school transportation.

     The purpose of this Act is to provide the department of education with flexibility to remove or suspend portions of school bus contracts if the contractor does not provide services for five or more instructional days, subject to approval by the superintendent.

     SECTION 2.  Chapter 302A, Hawaii Revised Statutes, is amended by adding a new section to part II, subpart C, to be appropriately designated and to read as follows:

     "§302A-     Student transportation contracts; failure to provide service.  (a)  Notwithstanding any law to the contrary, when a contractor under a student transportation contract with the department fails to provide service on a contracted service capacity or designated service segment for five or more consecutive instructional days, the superintendent may temporarily suspend or remove the designated service segment or segments from the contract.

     (b)  The superintendent may specify conditions and timelines for, and other limitations on, the suspension or removal of a contracted service capacity or designated service segment, as deemed necessary to protect the public interest.

     (c)  In addition to subsection (a), the superintendent may enter into an interim agreement with another qualified carrier to provide transportation for the contracted service capacity or capacities, or designated service segment or segments.

     (d)  An interim agreement executed pursuant to this section shall be exempt from chapter 103D; provided that:

     (1)  The agreement shall be limited to the scope of the suspended or removed contracted service capacity or capacities, or designated service segment or segments;

     (2)  The agreement shall not exceed twelve months in duration or the remainder of the school year, whichever is less; and

     (3)  The department shall ensure compliance with all applicable student safety standards.

     (e)  The department shall complete a competitive procurement under chapter 103D for a permanent replacement service within twelve months of executing an interim agreement under subsection (d).

     (f)  The department may assess a financial penalty against any contractor that fails to provide service on a contracted service capacity or designated service segment without an approved justification.  The penalty may be up to one hundred per cent of the daily contract rate or liquidated damages equal to the reasonable cost of replacement transportation services, whichever is greater, for each day the service is unfulfilled.  Collected penalties shall be deposited into the school bus fare revolving fund under section 302A-407.5 and may be expended to offset costs associated with procuring replacement transportation services.

     (g)  The suspension or removal of a contracted service capacity or designated service segment under this section shall be deemed a termination for default in part pursuant to chapter 103D and applicable administrative rules.

     (h)  The removal or suspension of a contracted service capacity or designated service segment under this section, and the execution of an interim agreement, shall not otherwise affect the validity or enforceability of the remaining portions of the contract."

     SECTION 3.  Section 302A-407.5, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  Except as otherwise provided by the legislature, moneys in the school bus fare revolving fund shall be used [for]:

     (1)  For school busing services, as authorized by section 302A-406[.]; and

     (2)  To offset costs associated with procuring replacement services for a student transportation contract under section 302A-   ."

     SECTION 4.  All requests for proposals issued by the department of education for student transportation services, and all contracts executed by the department of education for student transportation services, after the effective date of this Act, shall specifically reference section 302A-   , Hawaii Revised Statutes.

     SECTION 5.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 31, 2055.

 

 

Report Title:

DOE; Superintendent; Student Transportation; Penalty; School Bus Fare Revolving Fund

 

Description:

Authorizes the Superintendent to hire a new contractor if a contractor under a student transportation contract fails to provide service on a contracted service capacity or designated service segment for five or more consecutive instructional days.  Authorizes the Department of Education to assess a penalty if a contractor fails to provide service on a designated service segment without an approved justification.  Authorizes the use of the School Bus Fare Revolving Fund to offset costs associated with procuring replacement services.  Effective 7/31/2055.  (SD1)

 

 

 

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