1.1 	A bill for an act
1.2 	relating to pupil transportation; modifying pupil transportation provisions; 
1.3 	clarifying Department of Education's role in maintaining training programs; 
1.4 	including use of certain lift buses in the category of revenue authorized for 
1.5 	reimbursement; including actual contracted transportation costs as a method 
1.6 	for allocating pupil transportation costs;amending Minnesota Statutes 2008, 
1.7 	sections 123B.88, subdivision 13; 123B.90, subdivision 3; 123B.92, subdivision 
1.8 	5; Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1.
1.9 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.10 	Section 1. Minnesota Statutes 2008, section 123B.88, subdivision 13, is amended to 
1.11 	read:
1.12 		Subd. 13.Area learning center pupils between buildings. Districts may provide 
1.13 	between-building bus transportation along school bus routes when space is available, for 
1.14 	pupils attending programs at an area learning center. The transportation is only permitted 
1.15 	between schools and if it does not increase the district's expenditures for transportation. 
1.16 	The cost of these services shall be considered part of the authorized cost for nonregular 
1.17 	transportation for the purpose of section 123B.92. 

1.18 	Sec. 2. Minnesota Statutes 2008, section 123B.90, subdivision 3, is amended to read:
1.19 		Subd. 3.Model training program. The commissioner shall develop and maintain a 
1.20 	comprehensive model list of school bus safety training program instructional materials 
1.21 	 for pupils who ride the bus that includes bus safety curriculum for both classroom and 
1.22 	practical instruction and age-appropriate instructional materials.

1.23 	EFFECTIVE DATE. This section is effective July 1, 2010.

2.1 	Sec. 3. Minnesota Statutes 2009 Supplement, section 123B.92, subdivision 1, is 
2.2 	amended to read:
2.3 		Subdivision 1.Definitions. For purposes of this section and section 125A.76, the 
2.4 	terms defined in this subdivision have the meanings given to them.
2.5 	(a) "Actual expenditure per pupil transported in the regular and excess transportation 
2.6 	categories" means the quotient obtained by dividing:
2.7 	(1) the sum of:
2.8 	(i) all expenditures for transportation in the regular category, as defined in paragraph 
2.9 	(b), clause (1), and the excess category, as defined in paragraph (b), clause (2), plus
2.10 	(ii) an amount equal to one year's depreciation on the district's school bus fleet 
2.11 	and mobile units computed on a straight line basis at the rate of 15 percent per year for 
2.12 	districts operating a program under section 124D.128 for grades 1 to 12 for all students in 
2.13 	the district and 12-1/2 percent per year for other districts of the cost of the fleet, plus
2.14 	(iii) an amount equal to one year's depreciation on the district's type III vehicles, as 
2.15 	defined in section 169.011, subdivision 71, which must be used a majority of the time for 
2.16 	pupil transportation purposes, computed on a straight line basis at the rate of 20 percent 
2.17 	per year of the cost of the type three school buses by:
2.18 	(2) the number of pupils eligible for transportation in the regular category, as defined 
2.19 	in paragraph (b), clause (1), and the excess category, as defined in paragraph (b), clause (2).
2.20 	(b) "Transportation category" means a category of transportation service provided to 
2.21 	pupils as follows:
2.22 	(1) Regular transportation is:
2.23 	(i) transportation to and from school during the regular school year for resident 
2.24 	elementary pupils residing one mile or more from the public or nonpublic school they 
2.25 	attend, and resident secondary pupils residing two miles or more from the public 
2.26 	or nonpublic school they attend, excluding desegregation transportation and noon 
2.27 	kindergarten transportation; but with respect to transportation of pupils to and from 
2.28 	nonpublic schools, only to the extent permitted by sections 123B.84 to 123B.87;
2.29 	(ii) transportation of resident pupils to and from language immersion programs;
2.30 	(iii) transportation of a pupil who is a custodial parent and that pupil's child between 
2.31 	the pupil's home and the child care provider and between the provider and the school, if 
2.32 	the home and provider are within the attendance area of the school;
2.33 	(iv) transportation to and from or board and lodging in another district, of resident 
2.34 	pupils of a district without a secondary school; and
2.35 	(v) transportation to and from school during the regular school year required under 
2.36 	subdivision 3 for nonresident elementary pupils when the distance from the attendance 
3.1 	area border to the public school is one mile or more, and for nonresident secondary pupils 
3.2 	when the distance from the attendance area border to the public school is two miles or 
3.3 	more, excluding desegregation transportation and noon kindergarten transportation.
3.4 	For the purposes of this paragraph, a district may designate a licensed day care 
3.5 	facility, school day care facility, respite care facility, the residence of a relative, or the 
3.6 	residence of a person chosen by the pupil's parent or guardian as the home of a pupil for 
3.7 	part or all of the day, if requested by the pupil's parent or guardian, and if that facility or 
3.8 	residence is within the attendance area of the school the pupil attends.
3.9 	(2) Excess transportation is:
3.10 	(i) transportation to and from school during the regular school year for resident 
3.11 	secondary pupils residing at least one mile but less than two miles from the public or 
3.12 	nonpublic school they attend, and transportation to and from school for resident pupils 
3.13 	residing less than one mile from school who are transported because of extraordinary 
3.14 	traffic, drug, or crime hazards; and
3.15 	(ii) transportation to and from school during the regular school year required under 
3.16 	subdivision 3 for nonresident secondary pupils when the distance from the attendance area 
3.17 	border to the school is at least one mile but less than two miles from the public school 
3.18 	they attend, and for nonresident pupils when the distance from the attendance area border 
3.19 	to the school is less than one mile from the school and who are transported because of 
3.20 	extraordinary traffic, drug, or crime hazards.
3.21 	(3) Desegregation transportation is transportation within and outside of the district 
3.22 	during the regular school year of pupils to and from schools located outside their normal 
3.23 	attendance areas under a plan for desegregation mandated by the commissioner or under 
3.24 	court order.
3.25 	(4) "Transportation services for pupils with disabilities" is:
3.26 	(i) transportation of pupils with disabilities who cannot be transported on a regular 
3.27 	school bus between home or a respite care facility and school;
3.28 	(ii) necessary transportation of pupils with disabilities from home or from school to 
3.29 	other buildings, including centers such as developmental achievement centers, hospitals, 
3.30 	and treatment centers where special instruction or services required by sections 125A.03 
3.31 	to 125A.24, 125A.26 to 125A.48, and 125A.65 are provided, within or outside the district 
3.32 	where services are provided;
3.33 	(iii) necessary transportation for resident pupils with disabilities required by sections 
3.34 	125A.12, and 125A.26 to 125A.48;
3.35 	(iv) board and lodging for pupils with disabilities in a district maintaining special 
3.36 	classes;
4.1 	(v) transportation from one educational facility to another within the district for 
4.2 	resident pupils enrolled on a shared-time basis in educational programs, and necessary 
4.3 	transportation required by sections 125A.18, and 125A.26 to 125A.48, for resident pupils 
4.4 	with disabilities who are provided special instruction and services on a shared-time basis 
4.5 	or if resident pupils are not transported, the costs of necessary travel between public 
4.6 	and private schools or neutral instructional sites by essential personnel employed by the 
4.7 	district's program for children with a disability;
4.8 	(vi) transportation for resident pupils with disabilities to and from board and lodging 
4.9 	facilities when the pupil is boarded and lodged for educational purposes; and
4.10 	(vii) transportation of pupils for a curricular field trip activity on a school bus 
4.11 	equipped with a power lift when the power lift is required by a student's disability or 
4.12 	section 504 plan; and
4.13 	(viii)  services described in clauses (i) to (vi) (vii), when provided for pupils with 
4.14 	disabilities in conjunction with a summer instructional program that relates to the pupil's 
4.15 	individual education plan or in conjunction with a learning year program established 
4.16 	under section 124D.128.
4.17 	For purposes of computing special education initial aid under section 125A.76, 
4.18 	subdivision 2, the cost of providing transportation for children with disabilities includes 
4.19 	(A) the additional cost of transporting a homeless student from a temporary nonshelter 
4.20 	home in another district to the school of origin, or a formerly homeless student from a 
4.21 	permanent home in another district to the school of origin but only through the end of the 
4.22 	academic year; and (B) depreciation on district-owned school buses purchased after July 1, 
4.23 	2005, and used primarily for transportation of pupils with disabilities, calculated according 
4.24 	to paragraph (a), clauses (ii) and (iii). Depreciation costs included in the disabled 
4.25 	transportation category must be excluded in calculating the actual expenditure per pupil 
4.26 	transported in the regular and excess transportation categories according to paragraph (a).
4.27 	(5) "Nonpublic nonregular transportation" is:
4.28 	(i) transportation from one educational facility to another within the district for 
4.29 	resident pupils enrolled on a shared-time basis in educational programs, excluding 
4.30 	transportation for nonpublic pupils with disabilities under clause (4);
4.31 	(ii) transportation within district boundaries between a nonpublic school and a 
4.32 	public school or a neutral site for nonpublic school pupils who are provided pupil support 
4.33 	services pursuant to section 123B.44; and
4.34 	(iii) late transportation home from school or between schools within a district for 
4.35 	nonpublic school pupils involved in after-school activities.
5.1 	(c) "Mobile unit" means a vehicle or trailer designed to provide facilities for 
5.2 	educational programs and services, including diagnostic testing, guidance and counseling 
5.3 	services, and health services. A mobile unit located off nonpublic school premises is a 
5.4 	neutral site as defined in section 123B.41, subdivision 13.

5.5 	EFFECTIVE DATE. This section is effective for revenue for fiscal year 2011 
5.6 	and later.

5.7 	Sec. 4. Minnesota Statutes 2008, section 123B.92, subdivision 5, is amended to read:
5.8 		Subd. 5.District reports. (a) Each district must report data to the department as 
5.9 	required by the department to account for transportation expenditures.
5.10 	(b) Salaries and fringe benefits of district employees whose primary duties are 
5.11 	other than transportation, including central office administrators and staff, building 
5.12 	administrators and staff, teachers, social workers, school nurses, and instructional aides, 
5.13 	must not be included in a district's transportation expenditures, except that a district may 
5.14 	include salaries and benefits according to paragraph (c) for (1) an employee designated 
5.15 	as the district transportation director, (2) an employee providing direct support to the 
5.16 	transportation director, or (3) an employee providing direct transportation services such as 
5.17 	a bus driver or bus aide.
5.18 	(c) Salaries and fringe benefits of the district employees listed in paragraph (b), 
5.19 	clauses (1), (2), and (3), who work part time in transportation and part time in other areas 
5.20 	must not be included in a district's transportation expenditures unless the district maintains 
5.21 	documentation of the employee's time spent on pupil transportation matters in the form 
5.22 	and manner prescribed by the department.
5.23 	(d) Pupil transportation expenditures, excluding expenditures for capital outlay, 
5.24 	leased buses, student board and lodging, crossing guards, and aides on buses, must 
5.25 	be allocated among transportation categories based on cost-per-mile, cost-per-student, 
5.26 	cost-per-hour, or cost-per-route, regardless of whether the transportation services are 
5.27 	provided on district-owned or contractor-owned school buses. Expenditures for school 
5.28 	bus driver salaries and fringe benefits may either be directly charged to the appropriate 
5.29 	transportation category or may be allocated among transportation categories based 
5.30 	on cost-per-mile, cost-per-student, cost-per-hour, or cost-per-route. Expenditures 
5.31 	by private contractors or individuals who provide transportation exclusively in one 
5.32 	transportation category must be charged directly to the appropriate transportation category. 
5.33 	Transportation services provided by contractor-owned school bus companies incorporated 
5.34 	under different names but owned by the same individual or group of individuals must be 
5.35 	treated as the same company for cost allocation purposes.
6.1 	(e) Notwithstanding paragraph (d), districts contracting for transportation services 
6.2 	are exempt from the standard cost allocation method for authorized and nonauthorized 
6.3 	transportation categories if the district: (1) bids its contracts separately for authorized 
6.4 	and nonauthorized transportation categories and for special transportation separate from 
6.5 	regular and excess transportation; (2) receives bids or quotes from more than one vendor 
6.6 	for these transportation categories; and (3) the district's cost-per-mile, cost-per-hour, or 
6.7 	cost-per-route does not vary more than ten percent among categories, excluding salaries 
6.8 	and fringe benefits of bus aides. If the costs reported by the district for contractor-owned 
6.9 	operations vary by more than ten percent among categories, the department shall require 
6.10 	the district to reallocate its transportation costs, excluding salaries and fringe benefits of 
6.11 	bus aides, among all categories.

6.12 	EFFECTIVE DATE. This section is effective for revenue for fiscal years 2011 
6.13 	and later.