STAND. COM. REP. NO. 2772

Honolulu, Hawaii

RE: S.B. No. 2549

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 S.B. No. 2549, 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, safety, and accountability of student transportation by:

(1) Authorizing the Department of Education to:

(A) Recommend to the Governor the removal or suspension of provisions of school bus contracts relating to routes if the contractor does not provide services on a contracted route for five or more consecutive instructional days; and

(B) Upon approval by the Governor, enter into one or more interim agreements with multiple qualified carriers and divide transportation routes or service areas into smaller segments, as necessary to maintain continuity of service; and

(2) Requiring the Department to assess a financial penalty against a contractor that fails to provide service on a contracted route without an approved justification.

Your Committee received written comments in support of this measure from one individual.

Your Committee received written comments in opposition to this measure from the Department of Education.

Your Committee received written comments on this measure from the State Procurement Office.

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 S.B. No. 2549, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair