RELATING TO PUBLIC TRANSPORTATION.

SB2726

THE SENATE

S.B. NO.

2726

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

Relating
to Public Transportation
.

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

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SECTION 1.
�
The
legislature finds that accessible, affordable, and reliable public
transportation is essential to the well-being of Hawai
ʻ
i's
youth and families.
�
Transportation
barriers can limit access to education, employment, and community
opportunities, particularly for low- and moderate-income households and rural
communities.
�
Furthermore, the State
currently faces a transportation system under strain.
�
Driver and service shortages for school bus
and public transit operations have been documented in Hawai
ʻ
i
and contribute to elevated rates of student absenteeism and lost instructional
time.

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The legislature further finds that a
statewide pilot program providing fare-free youth transit can help mitigate
these burdens by increasing utilization of public transit, easing demands on
limited school bus fleets, reducing pressure on county transit systems, and
supporting consistent access to school and other youth activities.
�
Fare-free transit programs align with the
commitments made by the Hawai
ʻ
i department of transportation
(HDOT) under the settlement of
Navahine F. v. Hawai
ʻ
i
Department of Transportation
, CIV. NO. 1CCV-22-0000631 (Hawai
ʻ
i
Cir.Ct.), in which HDOT agreed to develop and implement a comprehensive
decarbonization and multi
‐
modal
mobility strategy for Hawai
ʻ
i
'
s
transportation system.
�
Specifically,
this program comports with fuel demand reduction strategy HWY-M-12 of the
Hawaii Energy Security and Waste Reduction Plan published by HDOT on October
15, 2025, which calls for the enactment of legislation to incentivize counties
to provide free public bus access to youth under eighteen and improve safety
for youth on buses.

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The legislature additionally finds that
providing fare-free public transit for youth advances both mobility and state
climate goals, including reducing vehicle dependency, vehicle miles traveled,
and greenhouse

gas
emissions.
�
Therefore, the program is in
accord with the principles guiding the implementation of the green fee
established by the legislature as Act 96, Session Laws of Hawaii 2025.
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Creating a fare-free public transit for youth
initiative would strengthen the State
�
s goal of increasing the
resilience of infrastructure to climate-related disasters, which exemplifies
the principles set forth in Act 96, Session Laws of Hawaii 2025, to guide
appropriations made with revenue generated by the green fee.

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Accordingly, the purpose of this Act is to
establish a two
‐
year
statewide pilot program to provide year-round fare-free public transportation
for:

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(1)
�
Residents
eighteen years of age and younger; and

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(2)
�
One
parent, legal custodian, or caregiver accompanying eligible children twelve
years of age and younger.

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SECTION 2.
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(a)
�
There is established within
the department of transportation a two-year youth ride free pilot program to
provide fare-free access to county public transportation systems for residents
of the State who are:

����
(1)
�
Eighteen
years of age and under; or

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(2)
�
A
parent, legal custodian, or caregiver accompanying an eligible child twelve
years of age or younger.

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(b)
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Each county transit agency shall administer the pilot program within its
jurisdiction; provided that the county may use existing fare-free card systems
or other verification methods to issue and manage youth transit passes.

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(c)
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For the purposes of the pilot program, each county shall allow eligible
youth to access county public transit services by presenting:

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(1)
�
A
valid county- or school-issued student identification card;

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(2)
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A
transit-issued youth fare card or pass; or

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(3)
�
Any
other form of identification approved by the county transit agency.

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(d)
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Administrative costs incurred by the counties in implementing and
operating the pilot program shall be eligible for reimbursement from the State,
subject to the availability of funds and approval by the department of
transportation; provided that each county shall be eligible to be reimbursed in
the following amounts:

����
(1)
�
For
fiscal year 2026 to 2027:

���������
(A)
�
$7,560,000
for the city and county of Honolulu;

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(B)
�
$241,000
for the county of Hawaii;

���������
(C)
�
$165,000
for the county of Kauai; and

���������
(D)
�
$560,000
for the county of Maui; and

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(2)
�
For
fiscal year 2027 to 2028:

���������
(A)
�
$11,005,300
for the city and county of Honolulu;

���������
(B)
�
$482,000
for the county of Hawaii;

���������
(C)
�
$210,000
for the county of Kauai; and

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(D)
�
$1,051,200
for the county of Maui.

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(e)
�

The department of transportation, in coordination with the county
transit agencies, shall collect and evaluate data on the youth ride free pilot
program, including:

����
(1)
�
Program
participation and ridership levels;

����
(2)
�
Fiscal
impacts, including administrative and operational costs;

����
(3)
�
Benefits
to families and youth, including access to education, employment, and
recreation;

����
(4)
�
Environmental
and traffic congestion impacts; and

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(5)
�
Other
data to determine the costs and benefits of permanently implementing the
program.

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(f)
�

The department of transportation shall submit a report on the
implementation of the youth ride free pilot program to the legislature no later
than twenty days prior to the convening of the regular session of
2028.
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The report shall include:

����
(1)
�
A
record of pilot program activities and accomplishments;

����
(2)
�
A
recommendation on whether to extend or make permanent the pilot program; and

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(3)
�
Any
additional findings, recommendations, and proposed legislation.

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(g)
�

For the purposes of this section, "caregiver" means any
individual eighteen years of age or older who is not a child's parent or legal
custodian and who has:

����
(1)
�
Undertaken
the temporary or permanent care, custody, physical control, or supervision of a
child; or

����
(2)
�
Who
has a legal or contractual duty to care for the health, safety, and welfare of
a child.

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SECTION 3.
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There is appropriated out of the general revenues of the State of Hawaii
the sum of $22,000,000 or so much thereof as may be necessary for fiscal year 2026-2027
for the implementation of the youth ride free pilot program established
pursuant to this Act, including to reimburse county transit agencies for
administrative and operational expenses related to implementing the pilot
program; provided that any funds not distributed to the county transit agencies
may be expended by the department of transportation to administer and evaluate
the pilot program.

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The sum appropriated shall be expended by
the department of transportation for the purposes of this Act.

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SECTION 4.
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This Act shall take effect on July 1, 2026, and shall be repealed on
June 30, 2028.

INTRODUCED BY:

_____________________________

Report Title:

DOT;
County Transit Agencies; Youth Ride Free Pilot Program; Reimbursement; Public
Transportation; Report; Appropriation

Description:

Establishes
a two-year Youth Ride Free Pilot Program within the Department of
Transportation.
�
Specifies that certain Program
administrative costs incurred by the counties are eligible for reimbursement from
the State.
�
Requires a report to the
Legislature.
�
Appropriates funds.
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Sunsets 6/30/2028.

The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.