Permits school districts to utilize on-demand micro transit programs for provision of pupil transportation services; establishes grant program to incentivize use of on-demand micro transit programs for pupil transportation.

A4840

ASSEMBLY, No. 4840

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 4, 2026

Sponsored by:

Assemblyman� KENYATTA STEWART

District 35 (Bergen and Passaic)

Assemblyman� GARY S. SCHAER

District 36 (Bergen and Passaic)

SYNOPSIS

���� Permits school districts to utilize on-demand micro
transit programs for provision of pupil transportation services; establishes
grant program to incentivize use of on-demand micro transit programs for pupil
transportation.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning public school transportation, supplementing
chapter 39 of Title 18A of the New Jersey Statutes, and making an appropriation.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� As used in this act:

���� �On-demand micro transit�
means shared public transportation services provided by means of a motor
vehicle to individuals selecting a pick-up and drop-off location by telephone
or through a software application, and which transportation is provided at a time
selected by the individual or as soon as possible after the individual selects
pick-up and drop-off locations for such transportation.

���� �On-demand micro transit
program,� means any on-demand micro transit program operated in the State by
the New Jersey Transit Corporation, a county transit agency, or any other
entity using public funding to fund the on-demand micro transit program in whole
or in part.

���� �Remote from their school of
attendance� means beyond two miles for students in grades preschool through
eight and beyond two and one-half miles for students in grades nine through
12.�

���� �Software application� means
technology to enable the New Jersey Transit Corporation, a county transit
agency, or any other entity to provide an on-demand micro transit program with
transportation services provided by employees under the conditions and in
compliance with the requirements described in this act.� �Software application�
shall not include a digital network as that term is defined in section 2 of
P.L.2017, c.26 (C.39:5H-2).

���� 2.��� a.� Notwithstanding any
law, rule, or regulation to the contrary, a school district may enter into a
contract with an organization operating an on-demand micro transit program for
the provision of pupil transportation services, approved by the executive county
superintendent, for a term not exceeding four years, except that transportation
provided through an on-demand micro transit program shall only be available to
students 13 years of age or older or, in the case of a student 12 years of age
or younger when a parent or guardian accompanies the student for the duration of
the transportation services provided to or from school.� Notwithstanding the
provisions of this section to the contrary, pupil transportation services shall
not be provided to a student pursuant to this section unless the student�s
parent or guardian provides written consent to receive pupil transportation
services from an on-demand micro transit program.

���� b.��� A school district may
contract with an organization operating an on-demand micro transit program to
provide transportation services to students who live remote from their school
of attendance and students who live less than remote from their school of
attendance.

���� c.���� A contract for pupil transportation
services with an organization operating an on-demand micro transit program
shall comply with the provisions of chapter 39 of Title 18A of the New Jersey
Statutes governing public bidding for pupil transportation contracts.

���� d.��� A driver for an
on-demand micro transit program providing pupil transportation services to a
school district shall comply with, and be subject to provisions of law
governing, the criminal history record check and check for alcohol and
drug-related motor vehicle violations required pursuant to section 6 of
P.L.1989, c.104 (C.18A:39-19.1), as well as training requirements applicable to
school bus drivers pursuant to P.L.2018, c.160 (C.18A:39-19.1a), and any other
applicable provision of law or regulation.

���� e.���� An organization
operating an on-demand micro transit program providing pupil transportation
services to a school district shall ensure all drivers providing pupil
transportation services comply with the provisions of subsection d. of this
section.� An organization that fails to comply with the provisions of this
subsection shall be subject to the applicable penalties enumerated in
N.J.S.18A:39-20.

���� f.���� An on-demand micro
transit driver providing pupil transportation services to a school district shall
not be required to hold or obtain a commercial driver license, passenger
endorsement, or school bus endorsement.

���� g.��� An on-demand micro
transit program vehicle used to provide pupil transportation services shall be
equipped with a global positioning system that provides information about the
location and speed of the vehicle in real time.� The global positioning system
shall transmit trip notifications, including pick-up and drop-off confirmation,
to the parent or guardian of the student receiving the pupil transportation
services.� The global positioning system shall be operational at all times the
vehicle is used to transport a student.� The installation of the global
position system and data collected from the global positioning system shall
conform to rules and regulations promulgated by the State Board of Education,
in consultation with the Chief Administrator of the New Jersey Motor Vehicle
Commission, pursuant to section 6 of this act.

���� h.��� Liability insurance
covering the operation of an on-demand micro transit program vehicle
transporting pupils to and from school, and the drivers thereof, shall be
furnished by the organization that operates the on-demand micro transit
program, in such amounts, with such indemnity, with such coverage, and in such
manner, as shall be prescribed by rule of the State Board of Education.

���� i.���� Notwithstanding any
law, rule, or regulation to the contrary, a school district shall incur no
liability as a result of any injury arising from pupil transportation services
provided pursuant to a contract with an organization operating an on-demand
micro transit program.� An organization operating an on-demand micro transit
program pursuant to a contract with a school district shall indemnify and hold
harmless the school district and its employees or agents against any claims
arising from the pupil transportation services.

���� 3.��� a.� The Commissioner of
Education, in consultation with the Chief Administrator of the New Jersey Motor
Vehicle Commission, shall establish a one-year grant program to incentivize school
districts to utilize on-demand micro transit programs for the provision of
school transportation services.�

���� b.��� Grants under the program
shall be awarded on a competitive basis.� School districts that receive a grant
under the program shall use the funds to support the costs of entering into a
contract for pupil transportation services with an organization that operates
an on-demand micro transit program.�

���� c.���� To be eligible for
consideration for a grant award under the program, a school district seeking to
participate in the program shall submit an application to the Commissioner of
Education, in accordance with application procedures to be determined by the
commissioner.

���� d.��� A grant application
submitted by a school district shall include, but not be limited to, the
following information:

���� (1)�� the number of enrolled
students that receive pupil transportation services or aid-in-lieu of
transportation;

���� (2)�� whether pupil
transportation services are provided to students who live less than remote from
school;

���� (3)�� the total amount of
State and local funds spent on pupil transportation services over the past
three years;

���� (4)�� a plan for the use of
on-demand micro transit transportation services; and

���� (5) any other information as
required by the commissioner.

���� e.���� (1)� The commissioner
shall establish selection criteria for the awarding of grants under the
program, including consideration of the information listed in subsection d. of
this section.� Grants shall be awarded based upon review of the applications
and subject to the availability of funds.� The commissioner shall establish the
amount for each grant that is approved.

���� (2)�� Priority for grants
awarded under the program shall be given to school districts that offer or
provide pupil transportation services to students who live less than remote
from their school of attendance.

���� f.���� Within two years after
receiving a grant award under the program, the school district shall submit a
report to the commissioner containing information on the use of grant funds.�
The report shall include, at a minimum:

���� (1)�� the number of students
that received pupil transportation services pursuant to a contract with an
organization operating an on-demand micro transit program, including the number
of students that received transportation that lived less than remote from their
school of attendance;

���� (2)�� the total cost of each
contract entered into with an organization operating an on-demand micro transit
program;

���� (3)�� the impact of using the
services of an on-demand micro transit program on transportation services
overall; and

���� (4)�� any other information as
required by the commissioner.

���� 4.��� The Commissioner of
Education shall submit a report to the Governor, and to the Legislature
pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), no later than three
years after the establishment of the grant program established pursuant to
section 3 of this act.� The report shall include, but not be limited to,
information on:

���� a.���� the number and amount
of grant awards;

���� b.��� data provided by the school
districts in the reports submitted pursuant to subsection f. of section 3 of
this act;

���� c.���� any cost savings
realized through use of on-demand micro-transit programs, including a
comparison of costs per student compared to traditional pupil transportation
services;

���� d.��� safety outcomes,
including accidents that occurred while transporting students;

���� e.���� the service reliability
of the on-demand micro transit program; and

���� f.���� any recommendations
concerning the continuation or expansion of the grant program or the provision
of additional State funds for pupil transportation services through alternative
options, such as on-demand micro transit programs.

���� 5.��� Nothing in this act
shall be construed to require the replacement or reduction of existing pupil
transportation services where those services are available to meet pupil
transportation needs.

���� 6.��� The State Board of
Education, in consultation with the Chief Administrator of the New Jersey Motor
Vehicle Commission, shall promulgate rules and regulations pursuant to the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), necessary
to effectuate the provisions of this act, including rules and regulations
governing liability for incidents occurring during the provision of pupil
transportation services by an on-demand micro transit program vehicle.

���� 7.��� There is appropriated
from the General Fund to the Department of Education such funds as may be
necessary to effectuate the provisions of sections 3 and 4 of this act.

���� 8.��� This act shall take
effect in the first full school year following the date of enactment, except
that the Commissioner of Education and Chief Administrator of the New Jersey
Motor Vehicle Commission may take any anticipatory action in advance of that
date as may be necessary for the timely implementation of this act.

STATEMENT

���� This bill permits a school
district to enter into a contract with an organization operating an on-demand
micro transit program for the provision of pupil transportation services for a
term not exceeding four years.� The bill provides that transportation through
an on-demand micro transit program would only be available to students 13 years
of age or older or, in the case of a student 12 years of age or younger when a
parent or guardian accompanies the student for the duration of the
transportation services provided to or from school, provided that a parent or
guardian provides written consent to receive pupil transportation services from
an on-demand micro transit program.� Under the bill, transportation by an
on-demand micro transit program may be provided to students who live remote
from their school of attendance (meaning they live beyond two miles for
students in grades preschool through eight and beyond two and one-half miles
for students in grades nine through 12) and students who live less than remote
from their school of attendance.

���� The bill requires a contract
for pupil transportation services with an organization operating an on-demand
micro transit program to comply with the provisions of law governing public
bidding for pupil transportation contracts.

���� Under the bill, a driver for
an on-demand micro transit program providing pupil transportation services to a
school district is required to comply with, and is subject to the provisions of
law governing, the criminal history record check, check for alcohol and
drug-related motor vehicle violations, and training requirements currently
applicable to school bus drivers.� The bill requires an organization operating
an on-demand micro transit program providing pupil transportation services to a
school district to ensure that all drivers providing pupil transportation
services comply with these record check and training requirements.� Failure to
do so would subject the organization to certain penalties under current law.

���� The bill provides that an
on-demand micro transit driver providing pupil transportation services is not
required to hold or obtain a commercial driver�s license, passenger
endorsement, or school bus endorsement.

���� The bill requires on-demand
micro transit program vehicles used to provide pupil transportation services to
be equipped with global positioning systems (GPS) that provide real time
information about the location and speed of the vehicle.� The GPS is required
to transmit trip notifications, including pick-up and drop-off confirmation, to
the parent or guardian of the student receiving pupil transportation services.�
The GPS would be operational at all times the vehicle is used to transport
students.�

���� Under the bill, liability
insurance covering the operation of an on-demand micro transit program vehicle
transporting pupils to and from school, and the drivers thereof, is required to
be furnished by the organization that operates the on-demand micro transit
program in such amounts, with such indemnity, with such coverage, and in such
manner, as prescribed by rule of the State Board of Education.�

���� The bill provides that a
school district would incur no liability as a result of an injury arising from
pupil transportation services provided pursuant to a contract with an
organization operating an on-demand micro transit program.� The bill also
requires an on-demand micro transit program pursuant to a contract with a
school district to indemnify and hold harmless the school district and its
employees or agents against any claims arising from the pupil transportation
services.

���� The bill also directs the
Commissioner of Education, in consultation with the Chief Administrator of the
New Jersey Motor Vehicle Commission, to establish a one-year grant program to
incentivize school districts to utilize on-demand micro transit programs for
the provision of pupil transportation services.� Grants under the program would
be awarded on a competitive basis and school districts that receive a grant are
required to use the funds to support the costs of entering into a contract for
pupil transportation services with an organization that operates an on-demand
micro transit program.

���� To be eligible for
consideration for a grant award, a school district seeking to participate in
the program is required to submit an application to the Commissioner of
Education, in accordance with application procedures determined by the
commissioner.

���� A grant application is
required to include: (1) the number of enrolled students that receive pupil
transportation services or aid-in-lieu of transportation; (2) whether pupil
transportation services are provided to students who live less than remote from
school; (3) the total amount of State and local funds spent on pupil
transportation services over the past three years; (4) a plan for the use of
on-demand micro transit transportation services; and (5) any other information
as required by the commissioner.� The bill directs the commissioner to
establish selection criteria for the awarding of grants under the program and
requires priority for grants to be given to school districts that offer or
provide pupil transportation services to students who live less than remote
from their school of attendance.

���� Under the bill, within two
years after receiving a grant award under the program, the school district is
required to submit a report to the commissioner containing information on the
use of grant funds.� The commissioner is then required to submit a report on
the program to the Governor and Legislature no later than three years after the
establishment of the grant program.� The report from the commissioner is required
to include, in addition to other listed information, any recommendations
concerning the continuation or expansion of the grant program or the provision
of additional State funds for pupil transportation services through alternative
options, such as on-demand micro transit programs.

���� Nothing in the bill is to be
construed to require the replacement or reduction of existing pupil
transportation services where those services are available to meet pupil
transportation needs.

���� Finally, the bill appropriates
from the General Fund to the Department of Education such funds as may be
necessary to effectuate the provisions of the bill governing the grant program.