CHAPTER 59

FORMERLY

SENATE BILL NO. 65

AS AMENDED BY

SENATE AMENDMENT NO. 2

AN ACT TO AMEND CHAPTER 29, TITLE 14 OF THE DELAWARE CODE RELATING TO THE AWARD AND TRANSFER OF SCHOOL TRANSPORTATION CONTRACTS.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend Subsection (c), Section 2908, Title 14 of the Delaware Code by deleting that subsection in its entirety and substituting in its place a new subsection (c) to read as follows:

"(c)(1) A school transportation contract may be transferred from a contractor to another party contingent upon approval of the local board of education. In the event that a transfer is proposed by the current contractor, the advertising requirement contained in Subsection (a) shall not apply.

(2) A local board of education may disapprove the transfer of a transportation contract to another party only for just cause. Just cause shall be limited to the following criteria: Financial stability, insurability, record of service in that or another Delaware school district, and personal and/or business resume including references.

(3) If the school board decides to reject the prospective contractor, it shall notify that contractor of its decision and provide reasons why that contractor is not acceptable to the district. This discussion may be held in a closed session and the results and reasons shall be disclosed only with the approval of the proposed contractor. In the event that the district rejects the proposed contractor, the current contractor shall have the following options:

(i) Continue to operate the bus; or

(ii) Give up the contract at the end of the year or sooner if allowed by the district; or

(iii) Find a new contractor which will meet the criteria.

(4) In the event the contractor cannot reach agreement with another party which meets the criteria and is acceptable to the school district, the district may use the process identified in subsection (a) of this section to find a new contractor. In the event that the bus associated with the transportation contract is less than seven years old and still on the depreciation schedule in the transportation formula, the district shall require that the new contractor make an offer to purchase the bus of the current contractor at least at fair market value as described in a national publication. It shall not be mandatory for the current contractor to accept this offer.

(5) No contract shall be deemed effectively transferred until said transfer is approved by the local board of education and the State Board of Education."

Section 2. Amend Section 2901 Chapter 29, Title 14 of the Delaware Code by designating it as subsection "(a) and by adding a new subsection (b) thereto which shall read as follows:

"(b) The regulations adopted relating to the award of school transportation contracts shall provide as follows:

(1) A school transportation contract may be awarded to a party contingent upon approval of the local board and the State Board of Education. Such award may be made only after notice is provided to all interested persons by means of a notice published in at least 2 Delaware newspapers of general circulation.

(2) A local board of education must approve the awarding of a transportation contract to a party based on the following criteria: financial stability, insurability, record of service in that or another school district, if applicable, and personal and/or business resume including references. A local board may use a lottery system to select from among the qualified applicants.

(2) No contract shall be deemed effectively awarded until said award is approved by the local board of education and the State Board of Education."

Section 3. Amend Subsection (a), Section 2908, Title 14 of the Delaware Code by deleting the last sentence of that subsection in its entirety.

Approved June 12, 1995