CONFERENCE COMMITTEE REP. NO. 108-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 1785

H.D. 1

S.D. 1

C.D. 1

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madam and Sir:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1785, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STUDENT TRANSPORTATION,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to authorize the:

(1) Superintendent of Education to suspend portions of a student transportation contract and enter into an interim agreement with another qualified carrier if the 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;

(2) Department of Education to assess a penalty if a contractor fails to provide service on a designated service segment without an approved justification; and

(3) Use of the School Bus Fare Revolving Fund to offset costs associated with procuring replacement transportation services.

Your Committee on Conference has amended this measure by:

(1) Specifying that the interim agreement to hire a new contractor shall be conducted as an emergency procurement, rather than be exempt from the Hawaii Public Procurement Code;

(2) Clarifying that the Department of Education may assess financial penalties pursuant to the remedies for contractor non-performance established in the Hawaii Public Procurement Code and applicable administrative rules; and

(3) Changing the effective date to upon approval.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1785, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1785, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ DONNA MERCADO KIM Chair	____________________________ TRISH LA CHICA Co-Chair
____________________________ TROY N. HASHIMOTO Co-Chair	____________________________ MIKE LEE Co-Chair