The bill establishes new annual certification compliance requirements for school bus contractors in New Jersey, mandating that they submit necessary documentation to the county superintendent by August 15 before the applicable school year. This includes the driver's name, social security number, valid school bus driver's license, criminal background check, and a record of alcohol and drug-related motor vehicle violations. The Commissioner of Education is tasked with creating staggered deadlines for multi-district and multi-county contractors to ensure timely compliance verification. Additionally, the bill introduces an automated notification system to alert noncompliant contractors weekly, and if they remain noncompliant after 10 days, the office will notify relevant school districts and county superintendents.

Furthermore, the bill prohibits school districts from entering into or renewing contracts with noncompliant contractors unless a waiver is granted by the commissioner. It also allows the commissioner to impose civil penalties or bar noncompliant contractors from bidding on new contracts until they meet the certification requirements. Each county superintendent is required to maintain and update a master list of contractors with active contracts, and the Office of School Bus Safety will implement an 18-month pilot program to incentivize timely submissions of annual certifications, with a report to be submitted to the Governor and Legislature after the program's conclusion.