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SB2549
THE SENATE
S.B. NO.
2549
THIRTY-THIRD LEGISLATURE, 2026
STATE OF HAWAII
A BILL FOR AN ACT
relating
to student transportation
.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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SECTION 1.
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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.
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The
legislature further finds that some school bus contractors enter into contracts
but are later unable to provide transportation for all contracted routes.
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Under existing law, the department of
education cannot simply cancel or reassign the unfulfilled portion of the
contract.
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This leaves students without
access to school transportation.
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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.
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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:
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"
�302A-
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S
tudent transportation contracts; failure to provide service.
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(a)
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Notwithstanding any law to the contrary,
when a contractor under a student transportation contract
fails to provide service on a contracted route for five or more consecutive
instructional days
, the department may recommend to the governor the
suspension or removal of the affected route or routes from the contract.
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(b)
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The governor may specify conditions and
timelines for, and other limitations on, the suspension or removal of a route,
as deemed necessary to protect the public interest.
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(c)
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Upon written approval by the governor, the
department may:
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(1)
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Remove or temporarily suspend the
affected route or routes from the contract; and
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(2)
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Enter into an interim agreement with
another qualified carrier to provide transportation for the affected route or
routes.
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(d)
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An interim agreement executed under this
section shall be exempt from chapter 103D; provided that:
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(1)
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The agreement shall be limited to
the scope of the suspended or removed route or routes;
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(2)
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The agreement shall not exceed
thirty months in duration; and
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(3)
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The department shall ensure
compliance with all applicable student safety standards.
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(e)
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The department shall complete a competitive
procurement under chapter 103D for a permanent replacement service within
thirty months of executing an interim agreement under subsection (d).
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(f)
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The department shall assess a financial
penalty against any contractor that fails to provide service on a contracted
route without an approved justification.
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The penalty shall be twenty-five per cent of the daily contract for each
day the route is unfulfilled.
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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 services.
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(g)
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The removal or suspension of a route 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.
"
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SECTION
3
.
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Section
302A-407.5, Hawaii Revised Statutes, is amended to read as follows:
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[
[
]�302A-407.5[
]
]
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School bus fare revolving fund.
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(a)
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There is established in the state treasury the school bus fare revolving
fund, into which shall be deposited [
all
]
:
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(1)
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All
moneys received from
students and parents or guardians of students by public schools for
state-provided school busing services, as authorized by section 302A-406[
.
]
;
and
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(2)
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Financial penalties assessed under
section 302A-
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.
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(b)
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Except as otherwise provided by the
legislature, moneys in the school bus fare revolving fund shall be used [
for
]
:
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(1)
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For
school busing services, as
authorized by section 302A-406[
.
]
; and
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(2)
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To offset costs associated with procuring
replacement services for a student transportation contact under section
302A-
��
.
"
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SECTION 4.
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This Act does
not affect rights and duties that matured, penalties that were incurred, and
proceedings that were begun before its effective date.
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SECTION
5.
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Statutory material to be repealed is
bracketed and stricken.
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New statutory
material is underscored.
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SECTION
6.
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This Act shall take effect upon its
approval.
INTRODUCED BY:
_____________________________
Report Title:
DOE;
Student Transportation; Governor
Description:
Authorizes
the Department of Education to hire a new contractor if a contractor under a
student transportation contract fails to provide service on a contracted route
for five or more consecutive instructional days.
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Requires the Department to assess a penalty if
a contractor fails to provide service on a contracted route without an approved
justification.
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Specifies that the
assessed penalties be deposited into the school bus fare revolving fund.
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Authorizes the use of the school bus fare
revolving fund to offset costs associated with procuring replacement services.
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.