HI SB1198

Changes Department of Education transportation obligation from permissive ("may provide") to mandatory ("shall provide") suitable transportation for kindergarten through twelfth grade students and special education classes.

Designates student transportation as critical infrastructure and a critical service for Hawaii's public education system.

Requires school bus contracts to include detailed annual contingency plans addressing driver shortages, fleet capacity issues, and operational risks, with performance metrics certified by the department no later than 30 days before school year start.

Mandates contractors notify the department of anticipated service disruptions at least 30 days before school year start and provide weekly progress updates, with the department required to communicate service changes to families within five business days.

Requires annual audits and performance reports on contractor service reliability submitted to the legislature no later than 20 days before each regular legislative session, and establishes penalties including payment withholding and contract termination for noncompliance.