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 providing the names, social security numbers, valid school bus driver's licenses, criminal background checks, and records of alcohol and drug-related motor vehicle violations for each driver or substitute driver. 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 active contractors quarterly. To encourage compliance, the Office of School Bus Safety will implement a two-year pilot program offering incentives for contractors who submit their certifications by August 1, with a report on the program's effectiveness due six months after its conclusion.