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 entities. Effective July 1, 2029, the state will cease to own or acquire additional school buses, with a phased-out approach for the existing fleet beginning in 2026. School districts will be required to either provide their own transportation services or contract with private companies, which will be responsible for supplying the necessary buses and personnel. To support this transition, the bill establishes a "School Transportation Reimbursement Fund," funded by the sale of state-owned buses and maintenance facilities, and mandates that any savings from privatization be allocated to increase teacher salaries.

The bill also introduces new regulations for school buses, effective July 1, 2026, requiring compliance with specific equipment standards set by the General Assembly. Existing buses can remain operational until they reach fifteen years of age or are deemed mechanically unsatisfactory. It outlines liability provisions for both school districts and private contractors, including mandatory liability insurance coverage of at least five million dollars per accident. Additionally, the bill amends Section 59-67-460 of the South Carolina Code to allow school districts to contract with private entities for transportation services while repealing this section effective July 1, 2026. The governing body of each school district will be responsible for executing contracts and ensuring payment for these services, with state aid based on the average per pupil operating cost of state-owned equipment.

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