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Senate transportation committee defers bill to create youth 'fare-free' transit fund over funding questions
Summary
The committee deferred SB 2,699, a proposal to create a DOT-administered "fare-free youth" transit program and special fund, after the attorney general and Taxation office raised legal and implementation concerns and the chair said more work on funding mechanisms is needed.
Chair Inouye opened the Committee on Transportation hearing on SB 2,699, describing the bill as an effort to establish a fare-free youth transit program administered by the Department of Transportation and financed through a special fund.
The chair said multiple agencies submitted comments and that the attorney general "strongly recommended" clarifying whether the account meets statutory standards for a special fund. DOTAX recommended moving the bill's effective date to July 1, 2026, to allow time for implementation. The chair said the gas tax and other existing revenue streams are already committed and that the bill would draw from the general fund, creating a significant long-term fiscal commitment.
Because the measure raises complex funding and statutory questions, the chair recommended deferral and said the committee and DOT would work with DLNR, health and other agencies during the interim to find a workable funding mechanism. The chair framed the deferred status as an opportunity to resolve legal and budget issues before the bill advances.
The committee did not take further action on SB 2,699 at the hearing; the chair closed that item and moved on to other agenda items.
