SF 3077

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to student transportation; establishing procedures and standards for
contracting for private student transportation services; proposing coding for new
law in Minnesota Statutes, chapter 123B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [123B.911] CONTRACTOR PROVIDED STUDENT
TRANSPORTATION SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in
this subdivision have the meanings given them.
new text end

new text begin (b) "District employee" means a public employee as defined in section 179A.03,
subdivision 14, and applies exclusively to student transportation employees in a
kindergarten through grade 12 school district.
new text end

new text begin (c) "Employee of a private contractor" means an employee of a private contractor as
defined by this subdivision, an employee of a subcontractor or independent contractor that
provides student transportation services to a private contractor, or a former employee of a
private contractor or subcontractor of a former independent contractor.
new text end

new text begin (d) "Private contractor" means an entity that enters into a privatization contract with
a kindergarten through grade 12 public school district.
new text end

new text begin (e) "Privatization contract" means an enforceable agreement or combination or
series of agreements by which a private contractor agrees with a school district to provide
services in place of services previously provided by employees of the school district, or
services that could be provided by employees of the school district.
new text end

new text begin (f) "Services" means all aspects of services provided by a private contractor to a
school district or by a subcontractor to a private contractor to implement a privatization
contract.
new text end

new text begin (g) "Subcontractor" means a subcontractor of a private contractor for work under a
privatization contract or an amendment to a privatization contract.
new text end

new text begin Subd. 2. new text end

new text begin School district requirements. new text end

new text begin (a) This section applies to school districts
that contract with private student transportation providers or put out a request for proposal
for privatization contracts in student transportation in an amount of $25,000 or more.
new text end

new text begin (b) A kindergarten through grade 12 school district shall prepare a specific written
statement of the services to be provided under a proposed privatization contract. The
statement must indicate whether the same or substantially similar services are being
provided by district employees. In the case of proposed new services, the statement must
include the district's reasons why it determined that those services could or should not
be provided by current or additional district employees. The district's solicitation of
services under a proposed privatization contract must be based on the statement. The
school district shall notify an exclusive representative of the employees that would be
affected by a proposed privatization contract of its intention to enter into such a contract,
and shall provide the exclusive representative with a copy of the statement prepared
under this paragraph.
new text end

new text begin Subd. 3. new text end

new text begin Review of contract costs. new text end

new text begin (a) A district considering whether to enter into
a privatization contract for a service shall prepare a comprehensive written estimate of
having the same service provided in the most cost-effective manner by district employees.
The estimate must include all direct costs of having district employees provide the service,
including the cost of pension, insurance, and other employee benefits. The estimate is
nonpublic data, as defined in section 13.02, subdivision 9, until the day after the deadline
for receipt of responses under paragraph (b), when it becomes public data and must be
published in the State Register. A district may not count onetime revenue from the sale of
buses or bus yards for the purpose of determining cost savings. The district must bargain
in good faith.
new text end

new text begin (b) After soliciting and receiving responses, the school district shall publicly
designate the responder to which it proposes to award the contract. In making its selection,
the district shall consider the responder's past performance and record of compliance with
federal and state law. The district shall prepare a comprehensive written estimate of the
cost of the proposal based on the responder's bid, including the cost of a transition from
public to private provision of the service, any additional unemployment, and retirement
benefits resulting from the transfer, and costs associated with monitoring the proposed
contract. The school district shall include the amount in the cost estimate prepared under
this paragraph.
new text end

new text begin (c) Before awarding a privatization contract, a district must certify in writing that:
new text end

new text begin (1) the board has complied with this section;
new text end

new text begin (2) the quality of the services to be provided by the designated responder will equal
or exceed the quality of services that could be provided by district employees;
new text end

new text begin (3) the cost of the proposed contract, including all costs identified under paragraph
(b), will be at least 15 percent lower than the cost determined under paragraph (a),
taking into account any amendments to a collective bargaining agreement proposed by
an exclusive representative; and
new text end

new text begin (4) the proposed privatization contract is in the public interest.
new text end

new text begin Subd. 4. new text end

new text begin Data practices. new text end

new text begin A privatization contract must comply with section 13.05,
subdivision 11. All data relating to a privatization contract are public data. The school
district shall submit copies of all public data associated with the privatization contract
to the state auditor.
new text end new text begin new text end