SB 2549 Hawaii Senate · 2026 Regular Session

RELATING TO STUDENT TRANSPORTATION.

Summary

Requires the Department of Education to hire a new contractor or contractors with the Governor's approval if a contractor under a student transportation contract fails to provide service on a contracted route for five or more consecutive instructional days. Requires the DOE to assess a penalty if a contractor fails to provide service on a contracted route without an approved justification. Specifies that the assessed penalties be deposited into the School Bus Fare Revolving Fund. Beginning 7/1/2026, requires all requests for proposals issued and contracts executed by the DOE for student transportation services to specifically reference certain new provisions. Authorizes the use of the School Bus Fare Revolving Fund to offset costs associated with procuring replacement services. Requires quarterly reports to the Legislature. (SD1)

Issues: ✓ Education ✓ Transportation

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House Passage

Governor

Introduced Jan 23, 2026 Last action Mar 10, 2026

Maddy AI version diff · 1 comparison

What changed between versions

SB2549 → SB2549_SD1 · 5 edits

MODERATE

This bill significantly strengthens Hawaii's student transportation laws by expanding the Department of Education's authority to remove underperforming bus contractors and requiring the hiring of multiple interim carriers to ensure service continuity. It raises financial penalties for non-performance from 25% to 100% of the daily contract value, while explicitly excluding routine workforce shortages as a valid excuse unless a specific state of emergency is declared. The bill also mandates quarterly public reports on driver vacancies and retention rates, and requires all future contracts to explicitly reference these new accountability measures.

Scope change

The bill expands the scope of enforcement by adding specific exemptions for contractor non-performance (excluding routine labor shortages) and requires future contracts to explicitly cite the new accountability provisions.

REQUIREMENT

Added a requirement for the Department of Education to enter into interim agreements with multiple qualified carriers and divide routes into smaller segments to maintain service continuity.

Mandated quarterly public reports detailing driver vacancies, hires, separations, canceled routes, and retention rates.

ENFORCEMENT

Increased financial penalties for contractor failure to provide service from 25% to 100% of the daily contract value or the cost of replacement services, whichever is greater.

Added a specific exemption stating that a lack of available labor or inability to recruit drivers is not a valid justification for non-performance unless a state of emergency specifically affecting the workforce is declared.

TIMELINE

Established a requirement effective July 1, 2026, for all future student transportation contracts to explicitly reference the new accountability section.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 10, 2026

Committee

Referred to EDN, FIN, referral sheet 16

lower

Mar 6, 2026

Introduced

Received from Senate (Sen. Com. No. 63) in amended form (SD 1).

lower

Mar 6, 2026

Upper · Passed

Report Adopted; Passed Third Reading. Ayes, 24; Aye(s) with reservations: none. Noes, 0 (none). Excused, 1 (Senator(s) Ihara). Transmitted to House.

upper

Mar 2, 2026

Upper · Passed

The committee(s) on WAM recommend(s) that the measure be PASSED, UNAMENDED. The votes in WAM were as follows: 13 Aye(s): Senator(s) Dela Cruz, Moriwaki, DeCoite, Elefante, Hashimoto, Inouye, Kanuha, Kidani, Kim, Lee, C., Richards, Wakai, Fevella; Aye(s) with reservations: none ; 0 No(es): none; and 0 Excused: none.

upper

Feb 23, 2026

Upper · Passed

The committee(s) on WAM will hold a public decision making on 02-25-26 10:55AM; Conference Room 211 & Videoconference.

upper

Feb 18, 2026

Upper · Passed

Report adopted; Passed Second Reading, as amended (SD 1) and referred to WAM.

upper

Feb 18, 2026

Committee

Reported from EDU (Stand. Com. Rep. No. 2331) with recommendation of passage on Second Reading, as amended (SD 1) and referral to WAM.

upper

Feb 13, 2026

Upper · Passed

The committee(s) on EDU recommend(s) that the measure be PASSED, WITH AMENDMENTS. The votes in EDU were as follows: 3 Aye(s): Senator(s) Kim, Kidani, DeCorte; Aye(s) with reservations: none ; 0 No(es): none; and 2 Excused: Senator(s) Fukunaga, Hashimoto.

upper

Feb 10, 2026

Upper · Passed

The committee(s) on EDU has scheduled a public hearing on 02-13-26 1:05PM; CR 229 & Videoconference.

upper

Jan 28, 2026

Committee

Referred to EDU, WAM.

upper

Jan 23, 2026

Introduced

Introduced.

upper

3 primary · 2 co-sponsors