The "South Carolina School Bus Privatization Act of 2025" proposes a significant shift in the management of school transportation services, transferring responsibility from the state to local school districts and private companies. Effective July 1, 2029, the state will cease to own or acquire school buses, with a phased-out approach beginning in 2026 for the existing fleet. School districts will have the flexibility to either manage transportation services directly or contract with private entities, which will be responsible for providing all necessary resources. The bill also introduces a "School Transportation Reimbursement Fund" to assist districts with transportation costs, with potential savings from privatization earmarked for teacher salary increases.

In addition to the privatization framework, the bill amends existing laws to facilitate early contracting with private entities for transportation services. It includes provisions for the sale or lease of state maintenance facilities and ensures that current school bus drivers and maintenance staff are considered for employment by new contractors or school districts. The legislation sets forth specific requirements for school buses, drivers, and insurance, mandating compliance with state regulations. Notably, it amends Section 59-67-460 to allow school districts to contract for transportation services while designating the governing body of the district as responsible for contract payments, although this section will be repealed effective July 1, 2026. The act will take effect upon the Governor's approval.

Statutes affected:
12/05/2024: 59-67-460
Latest Version: 59-67-460
12/06/2024: 59-67-460