S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8019--A
                                                        Cal. No. 327

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2015
                               ___________

Introduced by M. of A. O'DONNELL, COLTON, RAIA, BRONSON -- read once and
  referred to the Committee on Education -- advanced to a third reading,
  amended  and  ordered  reprinted,  retaining its place on the order of
  third reading

AN ACT to amend the education law  and  the  tax  law,  in  relation  to
  contracts for the transportation of school children

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Statement of legislative findings and necessity. The legis-
lature hereby finds that for three decades beginning in 1979,  following
a strike by school bus workers, the school bus contracts of the board of
education   of  the  city  of  New  York  included  employee  protection
provisions requiring transportation contractors, among other things,  to
give  priority  in  hiring to employees who became unemployed because of
their employers' loss of bus contract work for such  board  and  to  pay
such  employees  the  same wages and benefits they had received prior to
becoming unemployed.
  Following the 2011 decision by the New York State Court of Appeals  in
L&M  BUS CORP., ET AL., V. THE NEW YORK CITY DEPARTMENT OF EDUCATION, ET
AL., the board of education of the city of New York did not include  the
employee  protection provisions that had been part of the board's school
bus contracts for over 30 years or any similar provisions in its  solic-
itations  for its school bus contracts.  After the issuance of the first
such Post-L&M solicitation; there was a school bus strike in January and
February of 2013. During this strike, many children were  either  unable
to attend school or were burdened, along with their families, with find-
ing alternative modes of transportation in the heart of winter.
  The  legislature further finds that the board of education of the city
of New York contracts with 62 companies  to  provide  vital  school  bus
transportation to 149,000 school-age children. Pursuant to the education

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10792-03-6
              

A. 8019--A                          2

law, the state reimburses the board of education of the city of New York
for a substantial percentage of its school bus contract expenditures.
  Accordingly,  the  legislature  finds that the education law should be
amended to require the board of education of the city  of  New  York  to
include  important  employee  protections in its procurements for school
bus transportation contracts and to authorize the board of education  to
amend  existing  contracts to include these protections. Including these
protections in such board's  contracts  will  aid  in  avoiding  service
disruptions  and  pension  withdrawal liability claims, while protecting
the experienced school bus contract workforce from significant wage  and
benefit  reductions  and  facilitating  the  retention of an experienced
workforce. Inclusion of such protections will  secure  more  cost-effec-
tive, higher quality and efficient procurement and performance of school
bus transportation services.
  S  2.  Paragraph  a  of subdivision 14 of section 305 of the education
law, as amended by chapter 273 of the laws of 1999, is amended  to  read
as follows:
  a.  (1)  All  contracts for the transportation of school children, all
contracts to maintain school buses owned or leased by a school  district
that  are  used for the transportation of school children, all contracts
for mobile instructional units, and all contracts to  provide,  maintain
and  operate  cafeteria  or restaurant service by a private food service
management company shall be subject to the approval of the commissioner,
who may disapprove a proposed contract if, in his OR  HER  opinion,  the
best  interests  of  the  district  will  be promoted thereby. Except as
provided in paragraph e of this subdivision, all such contracts  involv-
ing an annual expenditure in excess of the amount specified for purchase
contracts in the bidding requirements of the general municipal law shall
be  awarded to the lowest responsible bidder, which responsibility shall
be determined by the board of education or the trustee  of  a  district,
with  power  hereby vested in the commissioner to reject any or all bids
if, in his OR HER opinion, the best interests of the  district  will  be
promoted  thereby and, upon such rejection of all bids, the commissioner
shall order the board of education or trustee of the district  to  seek,
obtain  and  consider  new proposals. All proposals for such transporta-
tion, maintenance, mobile instructional units, or cafeteria and  restau-
rant  service  shall  be in such form as the commissioner may prescribe.
Advertisement for bids shall be published in a newspaper  or  newspapers
designated  by  the board of education or trustee of the district having
general circulation within the district for such  purpose.  Such  adver-
tisement  shall contain a statement of the time when and place where all
bids received pursuant to such advertisement will be publicly opened and
read either by the school authorities or by a person or  persons  desig-
nated  by  them.  All bids received shall be publicly opened and read at
the time and place so specified. At least five days shall elapse between
the first publication of such advertisement and the  date  so  specified
for  the  opening  and  reading of bids. The requirement for competitive
bidding shall not apply to an award of a contract for the transportation
of pupils or a contract for mobile instructional units, if such award is
based on an evaluation  of  proposals  in  response  to  a  request  for
proposals  pursuant  to paragraph e of this subdivision. The requirement
for competitive bidding shall not apply to annual, biennial, or trienni-
al extensions of a contract nor shall the  requirement  for  competitive
bidding  apply  to  quadrennial  or  quinquennial  year  extensions of a
contract involving transportation of pupils, maintenance of school buses
or mobile instructional units secured either through competitive bidding

A. 8019--A                          3

or through  evaluation  of  proposals  in  response  to  a  request  for
proposals  pursuant to paragraph e of this subdivision, when such exten-
sions [(1)] (I) are made by the board of education or the trustee  of  a
district,  under  rules  and regulations prescribed by the commissioner,
and, [(2)] (II) do not extend the original contract period  beyond  five
years  from  the  date cafeteria and restaurant service commenced there-
under and in the case of contracts for the transportation of pupils, for
the maintenance of school buses or for mobile instructional units,  that
such  contracts  may  be extended, except that power is hereby vested in
the commissioner, in addition to his OR HER existing statutory authority
to approve or disapprove transportation or maintenance contracts,  [(i)]
(A) to reject any extension of a contract beyond the initial term there-
of  if  he  OR  SHE  finds that amount to be paid by the district to the
contractor in any year of such proposed extension fails to  reflect  any
decrease   in   the   regional   consumer  price  index  for  the  N.Y.,
N.Y.-Northeastern, N.J. area, based upon the index for all urban consum-
ers (CPI-U) during  the  preceding  twelve  month  period,  OR  FOR  ALL
CONTRACTS  FOR  SCHOOL BUSES USED FOR THE TRANSPORTATION OF SCHOOL CHIL-
DREN, MAINTENANCE, AND ALL CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS,  IF
THE  AMOUNT  TO BE PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY YEAR OF
SUCH PROPOSED EXTENSION FAILS TO REFLECT ANY PERCENTAGE DECREASE IN  THE
EMPLOYMENT  COST INDEX (ECI) FOR TOTAL COMPENSATION FOR PRIVATE INDUSTRY
WORKERS IN THE NORTHEAST REGION (NOT SEASONALLY ADJUSTED) FOR THE FOURTH
QUARTER OF THE PRECEDING YEAR; [and (ii)] (B) to reject any extension of
a contract after ten years from the date transportation  or  maintenance
service  commenced  thereunder, or mobile instructional units were first
provided, if in his OR HER opinion, the best interests of  the  district
will be promoted thereby. Upon such rejection of any proposed extension,
the  commissioner  may  order  the  board of education or trustee of the
district to seek, obtain and consider bids pursuant to the provisions of
this section; AND (C) TO REJECT ANY EXTENSION OF A CONTRACT  FOR  TRANS-
PORTATION,  OR  NEW  CONTRACT,  IF HE OR SHE FINDS THAT THE AMOUNT TO BE
PAID BY THE DISTRICT TO THE CONTRACTOR IN  ANY  YEAR  OF  SUCH  PROPOSED
CONTRACT  FAILS  TO  REFLECT  THE  SAVINGS  REALIZED  FROM THE SALES TAX
EXEMPTION ON SCHOOL BUSES, PARTS, EQUIPMENT, LUBRICANTS  AND  FUEL  USED
FOR  SCHOOL PURPOSES PURSUANT TO PARAGRAPH FORTY-FOUR OF SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board of education
or the trustee of a school district electing to  extend  a  contract  as
provided  herein, may, in its discretion, increase the amount to be paid
in each year of the contract extension by an amount not  to  exceed  the
regional  consumer price index increase for the N.Y., N.Y.-Northeastern,
N.J. area, based upon the index for all urban consumers (CPI-U),  during
the preceding twelve month period, OR FOR ALL CONTRACTS FOR SCHOOL BUSES
USED  FOR  THE  TRANSPORTATION  OF SCHOOL CHILDREN, MAINTENANCE, AND ALL
CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, IF THE AMOUNT TO  BE  PAID  BY
THE  DISTRICT  TO  THE CONTRACTOR IN ANY YEAR OF SUCH PROPOSED EXTENSION
FAILS TO REFLECT ANY PERCENTAGE DECREASE IN THE  EMPLOYMENT  COST  INDEX
(ECI)  FOR TOTAL COMPENSATION FOR PRIVATE INDUSTRY WORKERS IN THE NORTH-
EAST REGION (NOT SEASONALLY ADJUSTED) FOR  THE  FOURTH  QUARTER  OF  THE
PRECEDING  YEAR,  provided it has been satisfactorily established by the
contractor that there has been at least an equivalent  increase  in  the
amount  of  his  OR  HER  cost  of  operation,  during the period of the
contract.
  (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE
MILLION INHABITANTS SHALL INCLUDE IN CONTRACTS FOR THE TRANSPORTATION OF

A. 8019--A                          4

SCHOOL  CHILDREN  IN  KINDERGARTEN THROUGH GRADE TWELVE, WHETHER AWARDED
THROUGH COMPETITIVE  BIDDING  OR  THROUGH  EVALUATION  OF  PROPOSALS  IN
RESPONSE  TO  A  REQUEST  FOR  PROPOSALS PURSUANT TO PARAGRAPH E OF THIS
SUBDIVISION,  PROVISIONS  FOR  THE  RETENTION OR PREFERENCE IN HIRING OF
SCHOOL BUS WORKERS AND FOR THE PRESERVATION OF  WAGES,  HEALTH,  WELFARE
AND  RETIREMENT  BENEFITS  AND  SENIORITY FOR SCHOOL BUS WORKERS WHO ARE
HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREFERENCE IN HIRING,
IN CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES  OF  THIS  SUBPARAGRAPH,
"SCHOOL  BUS  WORKER"  SHALL  MEAN  AN OPERATOR, MECHANIC, DISPATCHER OR
ATTENDANT WHO:  (I) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO THOUSAND  TEN
OR  AT  ANY  TIME  THEREAFTER  BY (A) A CONTRACTOR THAT WAS A PARTY TO A
CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED  IN  A
CITY  WITH  AT  LEAST  ONE MILLION INHABITANTS FOR THE TRANSPORTATION OF
SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION WITH
SUCH CONTRACT, OR (B) A SUBCONTRACTOR OF A CONTRACTOR THAT WAS  A  PARTY
TO  A  CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED
IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR  THE  TRANSPORTATION
OF  SCHOOL  CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION
WITH SUCH CONTRACT, AND (II) HAS BEEN FURLOUGHED OR BECOME UNEMPLOYED AS
A RESULT OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH CONTRACT, BY SUCH
CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS  A  RESULT  OF  A  REDUCTION  IN
SERVICE  DIRECTED  BY  SUCH  BOARD  OF EDUCATION DURING THE TERM OF SUCH
CONTRACT.
  S 3. Paragraph c of subdivision 14 of section  305  of  the  education
law, as amended by chapter 15 of the laws of 2005, is amended to read as
follows:
  c.  Each  board  of  education,  or the trustees, of a school district
which elected or elects to  extend  one  or  more  pupil  transportation
contracts  may  extend a contract in an amount which is in excess of the
maximum increase allowed by use of the [CPI] ECI referenced in paragraph
a of this subdivision. Such excess amount shall not be greater than  the
sum of the following: (i) the sum of the actual cost of qualifying crim-
inal  history  and driver licensing testing fees attributable to special
requirements for drivers of school buses pursuant to  articles  nineteen
and  nineteen-A  of  the vehicle and traffic law plus the actual cost of
any diagnostic tests and physical performance tests that are  deemed  to
be  necessary  by  an examining physician or the chief school officer to
determine whether an applicant to drive a school bus under the terms  of
the  contract  has  the  physical and mental ability to operate a school
transportation  conveyance  and  to  satisfactorily  perform  the  other
responsibilities  of  a school bus driver pursuant to regulations of the
commissioner; (ii) in a school district located in a city with at  least
one million inhabitants, the actual cost of clean air technology filters
and  Global  Positioning  System  (GPS)  technology;  (iii)  in a school
district located in a city with at least one million  inhabitants,  with
respects  only  to  any  extension beginning in fiscal year two thousand
five--two thousand six, the sum of the actual cost of  providing  school
bus  attendants  including  the  actual  cost of criminal history record
checks for school bus attendant applicants and training and  instruction
for  school  bus  attendants  pursuant to section twelve hundred twenty-
nine-d of the vehicle and traffic law plus up to five  percent  of  such
cost  for necessary administrative services; and (iv) the actual cost of
equipment or vehicle modification, or training required, by any state or
local legislation or regulation promulgated or  effective  on  or  after
June  first,  two  thousand  five.  Such  costs shall be approved by the

A. 8019--A                          5

commissioner upon documentation provided  by  the  school  district  and
contractor as required by the commissioner.
  S  4. Subdivision 14 of section 305 of the education law is amended by
adding a new paragraph g to read as follows:
  G. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS A THROUGH  F  OF  THIS
SUBDIVISION  AND  ANY REGULATION PROMULGATED PURSUANT THERETO, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE
MILLION  INHABITANTS  AND A CONTRACTOR PROVIDING TRANSPORTATION SERVICES
TO SUCH DISTRICT FOR  SCHOOL  CHILDREN  IN  KINDERGARTEN  THROUGH  GRADE
TWELVE  MAY  AMEND A CONTRACT FOR SUCH TRANSPORTATION SERVICES, FOR SUCH
CONSIDERATION AS APPROVED BY SUCH BOARD OF EDUCATION, TO INCLUDE IN SUCH
CONTRACT PROVISIONS FOR THE RETENTION OR PREFERENCE IN HIRING OF  SCHOOL
BUS  WORKERS  AND  FOR  THE  PRESERVATION  OF WAGES, HEALTH, WELFARE AND
RETIREMENT BENEFITS AND SENIORITY FOR SCHOOL BUS WORKERS WHO  ARE  HIRED
PURSUANT  TO  SUCH  PROVISIONS FOR RETENTION OR PREFERENCE IN HIRING, IN
CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES OF THIS PARAGRAPH,  "SCHOOL
BUS  WORKER"  SHALL  MEAN AN OPERATOR, MECHANIC, DISPATCHER OR ATTENDANT
WHO: (1) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO THOUSAND TEN OR  AT  ANY
TIME  THEREAFTER BY (I) A CONTRACTOR THAT WAS A PARTY TO A CONTRACT WITH
THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A  CITY  WITH  AT
LEAST  ONE MILLION INHABITANTS FOR THE TRANSPORTATION OF SCHOOL CHILDREN
IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION WITH SUCH  CONTRACT,
OR  (II)  A SUBCONTRACTOR OF A CONTRACTOR THAT WAS A PARTY TO A CONTRACT
WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY  WITH
AT  LEAST ONE MILLION INHABITANTS FOR THE TRANSPORTATION OF SCHOOL CHIL-
DREN IN KINDERGARTEN THROUGH  GRADE  TWELVE,  IN  CONNECTION  WITH  SUCH
CONTRACT,  AND  (2) HAS BEEN FURLOUGHED OR BECOME UNEMPLOYED AS A RESULT
OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH CONTRACT, BY SUCH CONTRAC-
TOR OR SUCH SUBCONTRACTOR, OR AS THE RESULT OF A  REDUCTION  IN  SERVICE
DIRECTED BY SUCH BOARD OF EDUCATION DURING THE TERM OF SUCH CONTRACT.
  S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44) SCHOOL BUSES AS SUCH TERM  IS  DEFINED  IN  SECTION  ONE  HUNDRED
FORTY-TWO  OF  THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
  S 6. Separability.  If  any  item,  clause,  subparagraph,  paragraph,
subdivision  or  section  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation  to this item, clause, subparagraph, paragraph, subdivision or
section thereof that was adjudged to be invalid.
  S 7. This act shall take effect immediately; provided,  however,  that
the  provisions  of  section  five  of this act shall take effect on the
first day of a quarterly sales tax period, as set forth  in  subdivision
(b) of section 1136 of the tax law, next succeeding April 1, 2017.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8019--B
                                                        Cal. No. 327

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2015
                               ___________

Introduced by M. of A. O'DONNELL, COLTON, RAIA, BRONSON -- read once and
  referred to the Committee on Education -- advanced to a third reading,
  amended  and  ordered  reprinted,  retaining its place on the order of
  third reading -- again amended on third  reading,  ordered  reprinted,
  retaining its place on the order of third reading

AN  ACT  to  amend  the  education  law  and the tax law, in relation to
  contracts for the transportation of school children

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Statement of legislative findings and necessity. The legis-
lature  hereby finds that for three decades beginning in 1979, following
a strike by school bus workers, the school bus contracts of the board of
education  of  the  city  of  New  York  included  employee   protection
provisions  requiring transportation contractors, among other things, to
give priority in hiring to employees who became  unemployed  because  of
their  employers'  loss  of  bus contract work for such board and to pay
such employees the same wages and benefits they had  received  prior  to
becoming unemployed.
  Following  the 2011 decision by the New York State Court of Appeals in
L&M BUS CORP., ET AL., V. THE NEW YORK CITY DEPARTMENT OF EDUCATION,  ET
AL.,  the board of education of the city of New York did not include the
employee protection provisions that had been part of the board's  school
bus  contracts for over 30 years or any similar provisions in its solic-
itations for its school bus contracts.  After the issuance of the  first
such Post-L&M solicitation; there was a school bus strike in January and
February  of  2013. During this strike, many children were either unable
to attend school or were burdened, along with their families, with find-
ing alternative modes of transportation in the heart of winter.
  The legislature further finds that the board of education of the  city
of  New  York  contracts  with  62 companies to provide vital school bus
transportation to 149,000 school-age children. Pursuant to the education

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD10792-05-6

A. 8019--B                          2

law, the state reimburses the board of education of the city of New York
for a substantial percentage of its school bus contract expenditures.
  Accordingly,  the  legislature  finds that the education law should be
amended to require the board of education of the city  of  New  York  to
include  important  employee  protections in its procurements for school
bus transportation contracts and to authorize the board of education  to
amend  existing  contracts to include these protections. Including these
protections in such board's  contracts  will  aid  in  avoiding  service
disruptions  and  pension  withdrawal liability claims, while protecting
the experienced school bus contract workforce from significant wage  and
benefit  reductions  and  facilitating  the  retention of an experienced
workforce. Inclusion of such protections will  secure  more  cost-effec-
tive, higher quality and efficient procurement and performance of school
bus transportation services.
  S  2.  Paragraph  a  of subdivision 14 of section 305 of the education
law, as amended by chapter 273 of the laws of 1999, is amended  to  read
as follows:
  a.  (1)  All  contracts for the transportation of school children, all
contracts to maintain school buses owned or leased by a school  district
that  are  used for the transportation of school children, all contracts
for mobile instructional units, and all contracts to  provide,  maintain
and  operate  cafeteria  or restaurant service by a private food service
management company shall be subject to the approval of the commissioner,
who may disapprove a proposed contract if, in his OR  HER  opinion,  the
best  interests  of  the  district  will  be promoted thereby. Except as
provided in paragraph e of this subdivision, all such contracts  involv-
ing an annual expenditure in excess of the amount specified for purchase
contracts in the bidding requirements of the general municipal law shall
be  awarded to the lowest responsible bidder, which responsibility shall
be determined by the board of education or the trustee  of  a  district,
with  power  hereby vested in the commissioner to reject any or all bids
if, in his OR HER opinion, the best interests of the  district  will  be
promoted  thereby and, upon such rejection of all bids, the commissioner
shall order the board of education or trustee of the district  to  seek,
obtain  and  consider  new proposals. All proposals for such transporta-
tion, maintenance, mobile instructional units, or cafeteria and  restau-
rant  service  shall  be in such form as the commissioner may prescribe.
Advertisement for bids shall be published in a newspaper  or  newspapers
designated  by  the board of education or trustee of the district having
general circulation within the district for such  purpose.  Such  adver-
tisement  shall contain a statement of the time when and place where all
bids received pursuant to such advertisement will be publicly opened and
read either by the school authorities or by a person or  persons  desig-
nated  by  them.  All bids received shall be publicly opened and read at
the time and place so specified. At least five days shall elapse between
the first publication of such advertisement and the  date  so  specified
for  the  opening  and  reading of bids. The requirement for competitive
bidding shall not apply to an award of a contract for the transportation
of pupils or a contract for mobile instructional units, if such award is
based on an evaluation  of  proposals  in  response  to  a  request  for
proposals  pursuant  to paragraph e of this subdivision. The requirement
for competitive bidding shall not apply to annual, biennial, or trienni-
al extensions of a contract nor shall the  requirement  for  competitive
bidding  apply  to  quadrennial  or  quinquennial  year  extensions of a
contract involving transportation of pupils, maintenance of school buses
or mobile instructional units secured either through competitive bidding

A. 8019--B                          3

or through  evaluation  of  proposals  in  response  to  a  request  for
proposals  pursuant to paragraph e of this subdivision, when such exten-
sions [(1)] (I) are made by the board of education or the trustee  of  a
district,  under  rules  and regulations prescribed by the commissioner,
and, [(2)] (II) do not extend the original contract period  beyond  five
years  from  the  date cafeteria and restaurant service commenced there-
under and in the case of contracts for the transportation of pupils, for
the maintenance of school buses or for mobile instructional units,  that
such  contracts  may  be extended, except that power is hereby vested in
the commissioner, in addition to his OR HER existing statutory authority
to approve or disapprove transportation or maintenance contracts,  [(i)]
(A) to reject any extension of a contract beyond the initial term there-
of  if  he  OR  SHE  finds that amount to be paid by the district to the
contractor in any year of such proposed extension fails to  reflect  any
decrease   in   the   regional   consumer  price  index  for  the  N.Y.,
N.Y.-Northeastern, N.J. area, based upon the index for all urban consum-
ers (CPI-U) during  the  preceding  twelve  month  period,  OR  FOR  ALL
CONTRACTS  FOR  SCHOOL BUSES USED FOR THE TRANSPORTATION OF SCHOOL CHIL-
DREN, MAINTENANCE, AND ALL CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS,  IF
THE  AMOUNT  TO BE PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY YEAR OF
SUCH PROPOSED EXTENSION FAILS TO REFLECT ANY PERCENTAGE DECREASE IN  THE
EMPLOYMENT  COST INDEX (ECI) FOR TOTAL COMPENSATION FOR PRIVATE INDUSTRY
WORKERS IN THE NORTHEAST REGION (NOT SEASONALLY ADJUSTED) FOR THE FOURTH
QUARTER OF THE PRECEDING YEAR; [and (ii)] (B) to reject any extension of
a contract after ten years from the date transportation  or  maintenance
service  commenced  thereunder, or mobile instructional units were first
provided, if in his OR HER opinion, the best interests of  the  district
will be promoted thereby. Upon such rejection of any proposed extension,
the  commissioner  may  order  the  board of education or trustee of the
district to seek, obtain and consider bids pursuant to the provisions of
this section; AND (C) TO REJECT ANY EXTENSION OF A CONTRACT  FOR  TRANS-
PORTATION,  OR  NEW  CONTRACT,  IF HE OR SHE FINDS THAT THE AMOUNT TO BE
PAID BY THE DISTRICT TO THE CONTRACTOR IN  ANY  YEAR  OF  SUCH  PROPOSED
CONTRACT  FAILS  TO  REFLECT  THE  SAVINGS  REALIZED  FROM THE SALES TAX
EXEMPTION ON SCHOOL BUSES, PARTS, EQUIPMENT, LUBRICANTS  AND  FUEL  USED
FOR  SCHOOL PURPOSES PURSUANT TO PARAGRAPH FORTY-FOUR OF SUBDIVISION (A)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board of education
or the trustee of a school district electing to  extend  a  contract  as
provided  herein, may, in its discretion, increase the amount to be paid
in each year of the contract extension by an amount not  to  exceed  the
regional  consumer price index increase for the N.Y., N.Y.-Northeastern,
N.J. area, based upon the index for all urban consumers (CPI-U),  during
the preceding twelve month period, OR FOR ALL CONTRACTS FOR SCHOOL BUSES
USED  FOR  THE  TRANSPORTATION  OF SCHOOL CHILDREN, MAINTENANCE, AND ALL
CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, IF THE AMOUNT TO  BE  PAID  BY
THE  DISTRICT  TO  THE CONTRACTOR IN ANY YEAR OF SUCH PROPOSED EXTENSION
FAILS TO REFLECT ANY PERCENTAGE DECREASE IN THE  EMPLOYMENT  COST  INDEX
(ECI)  FOR TOTAL COMPENSATION FOR PRIVATE INDUSTRY WORKERS IN THE NORTH-
EAST REGION (NOT SEASONALLY ADJUSTED) FOR  THE  FOURTH  QUARTER  OF  THE
PRECEDING  YEAR,  provided it has been satisfactorily established by the
contractor that there has been at least an equivalent  increase  in  the
amount  of  his  OR  HER  cost  of  operation,  during the period of the
contract.
  (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE
MILLION INHABITANTS SHALL INCLUDE IN CONTRACTS FOR THE TRANSPORTATION OF

A. 8019--B                          4

SCHOOL  CHILDREN  IN  KINDERGARTEN THROUGH GRADE TWELVE, WHETHER AWARDED
THROUGH COMPETITIVE  BIDDING  OR  THROUGH  EVALUATION  OF  PROPOSALS  IN
RESPONSE  TO  A  REQUEST  FOR  PROPOSALS PURSUANT TO PARAGRAPH E OF THIS
SUBDIVISION,  PROVISIONS  FOR  THE  RETENTION OR PREFERENCE IN HIRING OF
SCHOOL BUS WORKERS AND FOR THE PRESERVATION OF  WAGES,  HEALTH,  WELFARE
AND  RETIREMENT  BENEFITS  AND  SENIORITY FOR SCHOOL BUS WORKERS WHO ARE
HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREFERENCE IN HIRING,
IN CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES  OF  THIS  SUBPARAGRAPH,
"SCHOOL  BUS  WORKER"  SHALL  MEAN  AN OPERATOR, MECHANIC, DISPATCHER OR
ATTENDANT WHO:  (I) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO THOUSAND  TEN
OR  AT  ANY  TIME  THEREAFTER  BY (A) A CONTRACTOR THAT WAS A PARTY TO A
CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED  IN  A
CITY  WITH  AT  LEAST  ONE MILLION INHABITANTS FOR THE TRANSPORTATION OF
SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION WITH
SUCH CONTRACT, OR (B) A SUBCONTRACTOR OF A CONTRACTOR THAT WAS  A  PARTY
TO  A  CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED
IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR  THE  TRANSPORTATION
OF  SCHOOL  CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION
WITH SUCH CONTRACT, AND (II) HAS BEEN FURLOUGHED OR BECOME UNEMPLOYED AS
A RESULT OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH CONTRACT, BY SUCH
CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS  A  RESULT  OF  A  REDUCTION  IN
SERVICE  DIRECTED  BY  SUCH  BOARD  OF EDUCATION DURING THE TERM OF SUCH
CONTRACT.
  S 3. Paragraph c of subdivision 14 of section  305  of  the  education
law, as amended by chapter 15 of the laws of 2005, is amended to read as
follows:
  c.  Each  board  of  education,  or the trustees, of a school district
which elected or elects to  extend  one  or  more  pupil  transportation
contracts  may  extend a contract in an amount which is in excess of the
maximum increase allowed by use of the [CPI] ECI referenced in paragraph
a of this subdivision. Such excess amount shall not be greater than  the
sum of the following: (i) the sum of the actual cost of qualifying crim-
inal  history  and driver licensing testing fees attributable to special
requirements for drivers of school buses pursuant to  articles  nineteen
and  nineteen-A  of  the vehicle and traffic law plus the actual cost of
any diagnostic tests and physical performance tests that are  deemed  to
be  necessary  by  an examining physician or the chief school officer to
determine whether an applicant to drive a school bus under the terms  of
the  contract  has  the  physical and mental ability to operate a school
transportation  conveyance  and  to  satisfactorily  perform  the  other
responsibilities  of  a school bus driver pursuant to regulations of the
commissioner; (ii) in a school district located in a city with at  least
one million inhabitants, the actual cost of clean air technology filters
and  Global  Positioning  System  (GPS)  technology;  (iii)  in a school
district located in a city with at least one million  inhabitants,  with
respects  only  to  any  extension beginning in fiscal year two thousand
five--two thousand six, the sum of the actual cost of  providing  school
bus  attendants  including  the  actual  cost of criminal history record
checks for school bus attendant applicants and training and  instruction
for  school  bus  attendants  pursuant to section twelve hundred twenty-
nine-d of the vehicle and traffic law plus up to five  percent  of  such
cost  for necessary administrative services; and (iv) the actual cost of
equipment or vehicle modification, or training required, by any state or
local legislation or regulation promulgated or  effective  on  or  after
June  first,  two  thousand  five.  Such  costs shall be approved by the

A. 8019--B                          5

commissioner upon documentation provided  by  the  school  district  and
contractor as required by the commissioner.
  S  4. Subdivision 14 of section 305 of the education law is amended by
adding a new paragraph g to read as follows:
  G. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS A THROUGH  F  OF  THIS
SUBDIVISION  AND  ANY REGULATION PROMULGATED PURSUANT THERETO, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE
MILLION  INHABITANTS  AND A CONTRACTOR PROVIDING TRANSPORTATION SERVICES
TO SUCH DISTRICT FOR  SCHOOL  CHILDREN  IN  KINDERGARTEN  THROUGH  GRADE
TWELVE  MAY AMEND A CONTRACT WITH MUTUAL CONSENT FOR SUCH TRANSPORTATION
SERVICES, FOR SUCH CONSIDERATION AS APPROVED BY SUCH BOARD OF EDUCATION,
TO INCLUDE IN SUCH CONTRACT PROVISIONS FOR THE RETENTION  OR  PREFERENCE
IN  HIRING  OF  SCHOOL  BUS  WORKERS  AND FOR THE PRESERVATION OF WAGES,
HEALTH, WELFARE AND RETIREMENT BENEFITS AND  SENIORITY  FOR  SCHOOL  BUS
WORKERS WHO ARE HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREF-
ERENCE  IN  HIRING,  IN  CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES OF
THIS PARAGRAPH, "SCHOOL BUS WORKER" SHALL MEAN  AN  OPERATOR,  MECHANIC,
DISPATCHER  OR ATTENDANT WHO: (1) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO
THOUSAND TEN OR AT ANY TIME THEREAFTER BY (I) A CONTRACTOR  THAT  WAS  A
PARTY  TO  A  CONTRACT  WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT
LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR  THE  TRANS-
PORTATION  OF  SCHOOL  CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN
CONNECTION WITH SUCH CONTRACT, OR (II) A SUBCONTRACTOR OF  A  CONTRACTOR
THAT  WAS  A PARTY TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL
DISTRICT LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE
TRANSPORTATION OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE  TWELVE,
IN  CONNECTION WITH SUCH CONTRACT, AND (2) HAS BEEN FURLOUGHED OR BECOME
UNEMPLOYED AS A RESULT OF A LOSS OF SUCH CONTRACT, OR  A  PART  OF  SUCH
CONTRACT,  BY SUCH CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS THE RESULT OF
A REDUCTION IN SERVICE DIRECTED BY SUCH BOARD OF  EDUCATION  DURING  THE
TERM OF SUCH CONTRACT.
  S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44) SCHOOL BUSES AS SUCH TERM  IS  DEFINED  IN  SECTION  ONE  HUNDRED
FORTY-TWO  OF  THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
  S 6. Separability.  If  any  item,  clause,  subparagraph,  paragraph,
subdivision  or  section  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation  to this item, clause, subparagraph, paragraph, subdivision or
section thereof that was adjudged to be invalid.
  S 7. This act shall take effect immediately; provided,  however,  that
the  provisions  of  section  five  of this act shall take effect on the
first day of a quarterly sales tax period, as set forth  in  subdivision
(b) of section 1136 of the tax law, next succeeding April 1, 2017.

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8019--C
                                                        Cal. No. 327

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 4, 2015
                               ___________

Introduced by M. of A. O'DONNELL, COLTON, RAIA, BRONSON -- read once and
  referred to the Committee on Education -- advanced to a third reading,
  amended  and  ordered  reprinted,  retaining its place on the order of
  third reading -- again amended on third  reading,  ordered  reprinted,
  retaining  its place on the order of third reading -- again amended on
  third reading, ordered reprinted, retaining its place on the order  of
  third reading

AN  ACT  to  amend  the  education  law  and the tax law, in relation to
  contracts for the transportation of school children

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Statement of legislative findings and necessity. The legis-
lature  hereby finds that for three decades beginning in 1979, following
a strike by school bus workers, the school bus contracts of the board of
education  of  the  city  of  New  York  included  employee   protection
provisions  requiring transportation contractors, among other things, to
give priority in hiring to employees who became  unemployed  because  of
their  employers'  loss  of  bus contract work for such board and to pay
such employees the same wages and benefits they had  received  prior  to
becoming unemployed.
  Following  the 2011 decision by the New York State Court of Appeals in
L&M BUS CORP., ET AL., V. THE NEW YORK CITY DEPARTMENT OF EDUCATION,  ET
AL.,  the board of education of the city of New York did not include the
employee protection provisions that had been part of the board's  school
bus  contracts for over 30 years or any similar provisions in its solic-
itations for its school bus contracts.  After the issuance of the  first
such Post-L&M solicitation; there was a school bus strike in January and
February  of  2013. During this strike, many children were either unable
to attend school or were burdened, along with their families, with find-
ing alternative modes of transportation in the heart of winter.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10792-07-6
              

A. 8019--C                          2

  The legislature further finds that the board of education of the  city
of  New  York  contracts  with  62 companies to provide vital school bus
transportation to 149,000 school-age children. Pursuant to the education
law, the state reimburses the board of education of the city of New York
for a substantial percentage of its school bus contract expenditures.
  Accordingly,  the  legislature  finds that the education law should be
amended to require the board of education of the city  of  New  York  to
include  important  employee  protections in its procurements for school
bus transportation contracts and to authorize the board of education  to
amend  existing  contracts to include these protections. Including these
protections in such board's  contracts  will  aid  in  avoiding  service
disruptions  and  pension  withdrawal liability claims, while protecting
the experienced school bus contract workforce from significant wage  and
benefit  reductions  and  facilitating  the  retention of an experienced
workforce. Inclusion of such protections will  secure  more  cost-effec-
tive, higher quality and efficient procurement and performance of school
bus transportation services.
  S  2.  Paragraph  a  of subdivision 14 of section 305 of the education
law, as amended by chapter 273 of the laws of 1999, is amended  to  read
as follows:
  a.  (1)  All  contracts for the transportation of school children, all
contracts to maintain school buses owned or leased by a school  district
that  are  used for the transportation of school children, all contracts
for mobile instructional units, and all contracts to  provide,  maintain
and  operate  cafeteria  or restaurant service by a private food service
management company shall be subject to the approval of the commissioner,
who may disapprove a proposed contract if, in his OR  HER  opinion,  the
best  interests  of  the  district  will  be promoted thereby. Except as
provided in paragraph e of this subdivision, all such contracts  involv-
ing an annual expenditure in excess of the amount specified for purchase
contracts in the bidding requirements of the general municipal law shall
be  awarded to the lowest responsible bidder, which responsibility shall
be determined by the board of education or the trustee  of  a  district,
with  power  hereby vested in the commissioner to reject any or all bids
if, in his OR HER opinion, the best interests of the  district  will  be
promoted  thereby and, upon such rejection of all bids, the commissioner
shall order the board of education or trustee of the district  to  seek,
obtain  and  consider  new proposals. All proposals for such transporta-
tion, maintenance, mobile instructional units, or cafeteria and  restau-
rant  service  shall  be in such form as the commissioner may prescribe.
Advertisement for bids shall be published in a newspaper  or  newspapers
designated  by  the board of education or trustee of the district having
general circulation within the district for such  purpose.  Such  adver-
tisement  shall contain a statement of the time when and place where all
bids received pursuant to such advertisement will be publicly opened and
read either by the school authorities or by a person or  persons  desig-
nated  by  them.  All bids received shall be publicly opened and read at
the time and place so specified. At least five days shall elapse between
the first publication of such advertisement and the  date  so  specified
for  the  opening  and  reading of bids. The requirement for competitive
bidding shall not apply to an award of a contract for the transportation
of pupils or a contract for mobile instructional units, if such award is
based on an evaluation  of  proposals  in  response  to  a  request  for
proposals  pursuant  to paragraph e of this subdivision. The requirement
for competitive bidding shall not apply to annual, biennial, or trienni-
al extensions of a contract nor shall the  requirement  for  competitive

A. 8019--C                          3

bidding  apply  to  quadrennial  or  quinquennial  year  extensions of a
contract involving transportation of pupils, maintenance of school buses
or mobile instructional units secured either through competitive bidding
or  through  evaluation  of  proposals  in  response  to  a  request for
proposals pursuant to paragraph e of this subdivision, when such  exten-
sions  [(1)]  (I) are made by the board of education or the trustee of a
district, under rules and regulations prescribed  by  the  commissioner,
and,  [(2)]  (II) do not extend the original contract period beyond five
years from the date cafeteria and restaurant  service  commenced  there-
under and in the case of contracts for the transportation of pupils, for
the  maintenance of school buses or for mobile instructional units, that
such contracts may be extended, except that power is  hereby  vested  in
the commissioner, in addition to his OR HER existing statutory authority
to  approve or disapprove transportation or maintenance contracts, [(i)]
(A) to reject any extension of a contract beyond the initial term there-
of if he OR SHE finds that amount to be paid  by  the  district  to  the
contractor  in  any year of such proposed extension fails to reflect any
decrease  in  the  regional  consumer  price   index   for   the   N.Y.,
N.Y.-Northeastern, N.J. area, based upon the index for all urban consum-
ers  (CPI-U)  during  the  preceding  twelve  month  period,  OR FOR ALL
CONTRACTS FOR SCHOOL BUSES USED FOR THE TRANSPORTATION OF  SCHOOL  CHIL-
DREN,  MAINTENANCE, AND ALL CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, IF
THE AMOUNT TO BE PAID BY THE DISTRICT TO THE CONTRACTOR IN ANY  YEAR  OF
SUCH  PROPOSED EXTENSION FAILS TO REFLECT ANY PERCENTAGE DECREASE IN THE
EMPLOYMENT COST INDEX (ECI) FOR TOTAL COMPENSATION FOR PRIVATE  INDUSTRY
WORKERS IN THE NORTHEAST REGION (NOT SEASONALLY ADJUSTED) FOR THE FOURTH
QUARTER OF THE PRECEDING YEAR; [and (ii)] (B) to reject any extension of
a  contract  after ten years from the date transportation or maintenance
service commenced thereunder, or mobile instructional units  were  first
provided,  if  in his OR HER opinion, the best interests of the district
will be promoted thereby. Upon such rejection of any proposed extension,
the commissioner may order the board of  education  or  trustee  of  the
district to seek, obtain and consider bids pursuant to the provisions of
this  section;  AND (C) TO REJECT ANY EXTENSION OF A CONTRACT FOR TRANS-
PORTATION, OR NEW CONTRACT, IF HE OR SHE FINDS THAT  THE  AMOUNT  TO  BE
PAID  BY  THE  DISTRICT  TO  THE CONTRACTOR IN ANY YEAR OF SUCH PROPOSED
CONTRACT FAILS TO REFLECT  THE  SAVINGS  REALIZED  FROM  THE  SALES  TAX
EXEMPTION  ON  SCHOOL  BUSES, PARTS, EQUIPMENT, LUBRICANTS AND FUEL USED
FOR SCHOOL PURPOSES PURSUANT TO PARAGRAPH FORTY-FOUR OF SUBDIVISION  (A)
OF SECTION ELEVEN HUNDRED FIFTEEN OF THE TAX LAW. The board of education
or  the  trustee  of  a school district electing to extend a contract as
provided herein, may, in its discretion, increase the amount to be  paid
in  each  year  of the contract extension by an amount not to exceed the
regional consumer price index increase for the N.Y.,  N.Y.-Northeastern,
N.J.  area, based upon the index for all urban consumers (CPI-U), during
the preceding twelve month period, OR FOR ALL CONTRACTS FOR SCHOOL BUSES
USED FOR THE TRANSPORTATION OF SCHOOL  CHILDREN,  MAINTENANCE,  AND  ALL
CONTRACTS FOR MOBILE INSTRUCTIONAL UNITS, BY AN AMOUNT NOT TO EXCEED THE
PERCENTAGE  INCREASE  IN  THE  EMPLOYMENT COST INDEX (ECI) TOTAL COMPEN-
SATION FOR  PRIVATE  INDUSTRY  WORKERS  IN  THE  NORTHEAST  REGION  (NOT
SEASONALLY  ADJUSTED)  FOR  THE  FOURTH  QUARTER  OF THE PRECEDING YEAR,
provided it has been satisfactorily established by the  contractor  that
there  has  been at least an equivalent increase in the amount of his OR
HER cost of operation, during the period of the contract.
  (2) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE

A. 8019--C                          4

MILLION INHABITANTS SHALL INCLUDE IN CONTRACTS FOR THE TRANSPORTATION OF
SCHOOL  CHILDREN  IN  KINDERGARTEN THROUGH GRADE TWELVE, WHETHER AWARDED
THROUGH COMPETITIVE  BIDDING  OR  THROUGH  EVALUATION  OF  PROPOSALS  IN
RESPONSE  TO  A  REQUEST  FOR  PROPOSALS PURSUANT TO PARAGRAPH E OF THIS
SUBDIVISION, PROVISIONS FOR THE RETENTION OR  PREFERENCE  IN  HIRING  OF
SCHOOL  BUS  WORKERS  AND FOR THE PRESERVATION OF WAGES, HEALTH, WELFARE
AND RETIREMENT BENEFITS AND SENIORITY FOR SCHOOL  BUS  WORKERS  WHO  ARE
HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREFERENCE IN HIRING,
IN  CONNECTION  WITH  SUCH CONTRACTS. FOR PURPOSES OF THIS SUBPARAGRAPH,
"SCHOOL BUS WORKER" SHALL MEAN  AN  OPERATOR,  MECHANIC,  DISPATCHER  OR
ATTENDANT  WHO:  (I) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO THOUSAND TEN
OR AT ANY TIME THEREAFTER BY (A) A CONTRACTOR THAT  WAS  A  PARTY  TO  A
CONTRACT  WITH  THE BOARD OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A
CITY WITH AT LEAST ONE MILLION INHABITANTS  FOR  THE  TRANSPORTATION  OF
SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN CONNECTION WITH
SUCH  CONTRACT,  OR (B) A SUBCONTRACTOR OF A CONTRACTOR THAT WAS A PARTY
TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL  DISTRICT  LOCATED
IN  A  CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE TRANSPORTATION
OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE,  IN  CONNECTION
WITH SUCH CONTRACT, AND (II) HAS BEEN FURLOUGHED OR BECOME UNEMPLOYED AS
A RESULT OF A LOSS OF SUCH CONTRACT, OR A PART OF SUCH CONTRACT, BY SUCH
CONTRACTOR  OR  SUCH  SUBCONTRACTOR,  OR  AS  A RESULT OF A REDUCTION IN
SERVICE DIRECTED BY SUCH BOARD OF EDUCATION  DURING  THE  TERM  OF  SUCH
CONTRACT.
  S  3.  Paragraph  c  of subdivision 14 of section 305 of the education
law, as amended by chapter 15 of the laws of 2005, is amended to read as
follows:
  c. Each board of education, or the  trustees,  of  a  school  district
which  elected  or  elects  to  extend  one or more pupil transportation
contracts may extend a contract in an amount which is in excess  of  the
maximum increase allowed by use of the [CPI] ECI referenced in paragraph
a  of this subdivision. Such excess amount shall not be greater than the
sum of the following: (i) the sum of the actual cost of qualifying crim-
inal history and driver licensing testing fees attributable  to  special
requirements  for  drivers of school buses pursuant to articles nineteen
and nineteen-A of the vehicle and traffic law plus the  actual  cost  of
any  diagnostic  tests and physical performance tests that are deemed to
be necessary by an examining physician or the chief  school  officer  to
determine  whether an applicant to drive a school bus under the terms of
the contract has the physical and mental ability  to  operate  a  school
transportation  conveyance  and  to  satisfactorily  perform  the  other
responsibilities of a school bus driver pursuant to regulations  of  the
commissioner;  (ii) in a school district located in a city with at least
one million inhabitants, the actual cost of clean air technology filters
and Global Positioning  System  (GPS)  technology;  (iii)  in  a  school
district  located  in a city with at least one million inhabitants, with
respects only to any extension beginning in  fiscal  year  two  thousand
five--two  thousand  six, the sum of the actual cost of providing school
bus attendants including the actual  cost  of  criminal  history  record
checks  for school bus attendant applicants and training and instruction
for school bus attendants pursuant to  section  twelve  hundred  twenty-
nine-d  of  the  vehicle and traffic law plus up to five percent of such
cost for necessary administrative services; and (iv) the actual cost  of
equipment or vehicle modification, or training required, by any state or
local  legislation  or  regulation  promulgated or effective on or after
June first, two thousand five. Such  costs  shall  be  approved  by  the

A. 8019--C                          5

commissioner  upon  documentation  provided  by  the school district and
contractor as required by the commissioner.
  S  4. Subdivision 14 of section 305 of the education law is amended by
adding a new paragraph g to read as follows:
  G. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPHS A THROUGH  F  OF  THIS
SUBDIVISION  AND  ANY REGULATION PROMULGATED PURSUANT THERETO, THE BOARD
OF EDUCATION OF A SCHOOL DISTRICT LOCATED IN A CITY WITH  AT  LEAST  ONE
MILLION  INHABITANTS  AND A CONTRACTOR PROVIDING TRANSPORTATION SERVICES
TO SUCH DISTRICT FOR  SCHOOL  CHILDREN  IN  KINDERGARTEN  THROUGH  GRADE
TWELVE  MAY AMEND A CONTRACT WITH MUTUAL CONSENT FOR SUCH TRANSPORTATION
SERVICES, FOR SUCH CONSIDERATION AS APPROVED BY SUCH BOARD OF EDUCATION,
TO INCLUDE IN SUCH CONTRACT PROVISIONS FOR THE RETENTION  OR  PREFERENCE
IN  HIRING  OF  SCHOOL  BUS  WORKERS  AND FOR THE PRESERVATION OF WAGES,
HEALTH, WELFARE AND RETIREMENT BENEFITS AND  SENIORITY  FOR  SCHOOL  BUS
WORKERS WHO ARE HIRED PURSUANT TO SUCH PROVISIONS FOR RETENTION OR PREF-
ERENCE  IN  HIRING,  IN  CONNECTION WITH SUCH CONTRACTS. FOR PURPOSES OF
THIS PARAGRAPH, "SCHOOL BUS WORKER" SHALL MEAN  AN  OPERATOR,  MECHANIC,
DISPATCHER  OR ATTENDANT WHO: (1) WAS EMPLOYED AS OF JUNE THIRTIETH, TWO
THOUSAND TEN OR AT ANY TIME THEREAFTER BY (I) A CONTRACTOR  THAT  WAS  A
PARTY  TO  A  CONTRACT  WITH THE BOARD OF EDUCATION OF A SCHOOL DISTRICT
LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR  THE  TRANS-
PORTATION  OF  SCHOOL  CHILDREN IN KINDERGARTEN THROUGH GRADE TWELVE, IN
CONNECTION WITH SUCH CONTRACT, OR (II) A SUBCONTRACTOR OF  A  CONTRACTOR
THAT  WAS  A PARTY TO A CONTRACT WITH THE BOARD OF EDUCATION OF A SCHOOL
DISTRICT LOCATED IN A CITY WITH AT LEAST ONE MILLION INHABITANTS FOR THE
TRANSPORTATION OF SCHOOL CHILDREN IN KINDERGARTEN THROUGH GRADE  TWELVE,
IN  CONNECTION WITH SUCH CONTRACT, AND (2) HAS BEEN FURLOUGHED OR BECOME
UNEMPLOYED AS A RESULT OF A LOSS OF SUCH CONTRACT, OR  A  PART  OF  SUCH
CONTRACT,  BY SUCH CONTRACTOR OR SUCH SUBCONTRACTOR, OR AS THE RESULT OF
A REDUCTION IN SERVICE DIRECTED BY SUCH BOARD OF  EDUCATION  DURING  THE
TERM OF SUCH CONTRACT.
  S  5.  Subdivision  (a)  of  section 1115 of the tax law is amended by
adding a new paragraph 44 to read as follows:
  (44) SCHOOL BUSES AS SUCH TERM  IS  DEFINED  IN  SECTION  ONE  HUNDRED
FORTY-TWO  OF  THE VEHICLE AND TRAFFIC LAW, AND PARTS, EQUIPMENT, LUBRI-
CANTS AND FUEL PURCHASED AND USED IN THEIR OPERATION.
  S 6. Separability.  If  any  item,  clause,  subparagraph,  paragraph,
subdivision  or  section  of  this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment  shall  not  affect,
impair or invalidate the remainder thereof, but shall be confined in its
operation  to this item, clause, subparagraph, paragraph, subdivision or
section thereof that was adjudged to be invalid.
  S 7. This act shall take effect immediately; provided,  however,  that
the  provisions  of  section  five  of this act shall take effect on the
first day of a quarterly sales tax period, as set forth  in  subdivision
(b) of section 1136 of the tax law, next succeeding April 1, 2017.