The bill amends Section 16-21.1-8 of the General Laws to establish a statewide transportation system for all students, allowing school committees to purchase transportation services on a fee-for-service basis. New provisions include the ability for school districts that use their own buses or vendors at a lower cost than the statewide system to submit these costs for reimbursement from state funds. Additionally, the bill mandates that all fees for transportation services be deposited into a restricted receipt account within the Department of Elementary and Secondary Education, which will be used solely for payments to transportation service providers and consultants.

The bill also introduces several stipulations regarding contracts for transportation services. It requires that contracts provide for payments to school bus drivers and aides for at least 180 days or the length of the school year, whichever is longer. Furthermore, it emphasizes a preference for public transportation providers that utilize electric buses and outlines protections for employees covered by collective bargaining agreements, ensuring that no adverse disciplinary actions can be taken without proper investigation. The act will take effect upon passage.