HI SB2549

Authorizes the Department of Education to suspend or remove bus routes from contracts when contractors fail to provide service for five or more consecutive instructional days, with governor approval required

Allows DOE to enter interim agreements with multiple qualified carriers for up to 30 months, exempt from standard procurement requirements under Chapter 103D, to maintain service continuity

Imposes financial penalties of 100% of daily contract value or liquidated damages (whichever is greater) on contractors who fail to provide service, with driver shortages not accepted as justification unless a state of emergency is declared

Deposits collected penalties into the School Bus Fare Revolving Fund to offset costs of procuring replacement transportation services

Requires DOE to submit quarterly public reports to the legislature on driver vacancies, hires, separations, canceled/restored routes, retention rates, and recommended legislation, effective July 1, 2026 for new contracts