1.1 	A bill for an act
1.2 	relating to student transportation; establishing procedures and standards for 
1.3 	contracting for private student transportation services; proposing coding for new 
1.4 	law in Minnesota Statutes, chapter 123B.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [123B.911] CONTRACTOR PROVIDED STUDENT 
1.7 	TRANSPORTATION SERVICES.
1.8 		Subdivision 1.Definitions. (a) For the purposes of this section, the terms defined in 
1.9 	this subdivision have the meanings given them.
1.10 	(b) "District employee" means a public employee as defined in section 179A.03, 
1.11 	subdivision 14, and applies exclusively to student transportation employees in a 
1.12 	kindergarten through grade 12 school district.
1.13 	(c) "Employee of a private contractor" means an employee of a private contractor as 
1.14 	defined by this subdivision, an employee of a subcontractor or independent contractor that 
1.15 	provides student transportation services to a private contractor, or a former employee of a 
1.16 	private contractor or subcontractor of a former independent contractor.
1.17 	(d) "Private contractor" means an entity that enters into a privatization contract with 
1.18 	a kindergarten through grade 12 public school district.
1.19 	(e) "Privatization contract" means an enforceable agreement or combination or 
1.20 	series of agreements by which a private contractor agrees with a school district to provide 
1.21 	services in place of services previously provided by employees of the school district, or 
1.22 	services that could be provided by employees of the school district.
2.1 	(f) "Services" means all aspects of services provided by a private contractor to a 
2.2 	school district or by a subcontractor to a private contractor to implement a privatization 
2.3 	contract.
2.4 	(g) "Subcontractor" means a subcontractor of a private contractor for work under a 
2.5 	privatization contract or an amendment to a privatization contract.
2.6 		Subd. 2.School district requirements. (a) This section applies to school districts 
2.7 	that contract with private student transportation providers or put out a request for proposal 
2.8 	for privatization contracts in student transportation in an amount of $25,000 or more.
2.9 	(b) A kindergarten through grade 12 school district shall prepare a specific written 
2.10 	statement of the services to be provided under a proposed privatization contract. The 
2.11 	statement must indicate whether the same or substantially similar services are being 
2.12 	provided by district employees. In the case of proposed new services, the statement must 
2.13 	include the district's reasons why it determined that those services could or should not 
2.14 	be provided by current or additional district employees. The district's solicitation of 
2.15 	services under a proposed privatization contract must be based on the statement. The 
2.16 	school district shall notify an exclusive representative of the employees that would be 
2.17 	affected by a proposed privatization contract of its intention to enter into such a contract, 
2.18 	and shall provide the exclusive representative with a copy of the statement prepared 
2.19 	under this paragraph.
2.20 		Subd. 3.Review of contract costs. (a) A district considering whether to enter into 
2.21 	a privatization contract for a service shall prepare a comprehensive written estimate of 
2.22 	having the same service provided in the most cost-effective manner by district employees. 
2.23 	The estimate must include all direct costs of having district employees provide the service, 
2.24 	including the cost of pension, insurance, and other employee benefits. The estimate is 
2.25 	nonpublic data, as defined in section 13.02, subdivision 9, until the day after the deadline 
2.26 	for receipt of responses under paragraph (b), when it becomes public data and must be 
2.27 	published in the State Register. A district may not count onetime revenue from the sale of 
2.28 	buses or bus yards for the purpose of determining cost savings. The district must bargain 
2.29 	in good faith.
2.30 	(b) After soliciting and receiving responses, the school district shall publicly 
2.31 	designate the responder to which it proposes to award the contract. In making its selection, 
2.32 	the district shall consider the responder's past performance and record of compliance with 
2.33 	federal and state law. The district shall prepare a comprehensive written estimate of the 
2.34 	cost of the proposal based on the responder's bid, including the cost of a transition from 
2.35 	public to private provision of the service, any additional unemployment, and retirement 
2.36 	benefits resulting from the transfer, and costs associated with monitoring the proposed 
3.1 	contract. The school district shall include the amount in the cost estimate prepared under 
3.2 	this paragraph.
3.3 	(c) Before awarding a privatization contract, a district must certify in writing that:
3.4 	(1) the board has complied with this section;
3.5 	(2) the quality of the services to be provided by the designated responder will equal 
3.6 	or exceed the quality of services that could be provided by district employees;
3.7 	(3) the cost of the proposed contract, including all costs identified under paragraph 
3.8 	(b), will be at least 15 percent lower than the cost determined under paragraph (a), 
3.9 	taking into account any amendments to a collective bargaining agreement proposed by 
3.10 	an exclusive representative; and
3.11 	(4) the proposed privatization contract is in the public interest.
3.12 		Subd. 4.Data practices. A privatization contract must comply with section 13.05, 
3.13 	subdivision 11. All data relating to a privatization contract are public data. The school 
3.14 	district shall submit copies of all public data associated with the privatization contract 
3.15 	to the state auditor.