STAND. COM. REP. NO. 3637

Honolulu, Hawaii

RE: H.B. No. 1785

H.D. 1

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 1785, H.D. 1, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to strengthen the reliability, flexibility, and accountability of student transportation.

More specifically, this measure:

(1) 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;

(2) 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; and

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

Your Committee received written comments in support of this measure from the Pearl City Neighborhood Board and one individual.

Your Committee received written comments on this measure from the Department of Education, State Procurement Office, and Roberts Hawaii.

Your Committee finds that the Department of Education continues to experience a shortage of school bus drivers despite efforts to increase the number of drivers. Your Committee further finds that when school bus contractors lose the ability to provide transportation services for all contracted routes, the Department of Education is currently prohibited from canceling or reassigning the unfulfilled part of the contract. Accordingly, your Committee finds that this measure will improve access to education by providing the Department of Education with the means to limit disruptions to school transportation.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1785, H.D. 1, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

________________________________

DONOVAN M. DELA CRUZ, Chair