AN ACT RELATING TO EDUCATION -- TRANSPORTATION OF SCHOOL PUPILS BEYOND CITY AND TOWN LIMITS (Provides local agencies with a mechanism to opt-out of statewide transportation upon a showing of a cost-effective alternative to the current fee-for-service model.)

H7460

2026 -- H 7460
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LC003605
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO EDUCATION -- TRANSPORTATION OF SCHOOL PUPILS BEYOND CITY
AND TOWN LIMITS

Introduced By:
Representatives Paplauskas, McNamara, Nardone, Fascia, Place,
Newberry, Read, Chippendale, Roberts, and J. Brien

Date Introduced:
January 30, 2026

Referred To:
House Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Section 16-21.1-8 of the General Laws in Chapter 16-21.1 entitled
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"Transportation of School Pupils Beyond City and Town Limits [See Title 16 Chapter 97 — The
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Rhode Island Board of Education Act]" is hereby amended to read as follows:
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16-21.1-8. Statewide transportation system for all students.
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(a)
(1)
Notwithstanding the regional structure created in this chapter, and upon
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implementation of a statewide school transportation system for all students, each school committee
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shall purchase the transportation services for their own resident students by accessing this
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integrated statewide system of transportation on a fee-for-service basis for each child; provided,
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however, that any school committee that fulfills its transportation obligations predominantly
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through the use of district-owned buses or district employees may apply for a variance from the
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commissioner of education, or the commissioner’s designee, thereby requesting that its
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transportation obligations continue to be achieved through the use of the buses owned by the district
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and staffed by district employees. All fees paid for transportation services provided to students
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under the statewide system shall be paid into a statewide student transportation services restricted
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receipt account within the department of elementary and secondary education. Payments from the
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account shall be limited to payments to the transportation service provider and transportation
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system consultants. This restricted receipt account shall not be subject to the indirect cost recoveries
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provisions set forth in § 35-4-27. The goals of the statewide system of transportation for all students

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shall be the reduction of duplication of cost and routes in transporting children from the various
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cities and towns using different buses within and between each city and town, the improvement of
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services to children through the development of shorter ride times and more efficient routes of
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travel, and the reduction of cost to local school committees through achieving efficiency in
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eliminating the need for each school district to contract for and provide these transportation services
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separately.
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(2) Any and all local education agencies and/or municipalities may contract out of the
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statewide transportation system if they can find a more cost-effective option than the current fee-
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for-service model as set forth in subsection (a)(1) of this section; provided, however, the local
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educational agency and/or municipality shall demonstrate financial savings to the state education
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commissioner in order to opt out of statewide transportation and contract transportation for their
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students. If the education commissioner approves the request of the local education agency and/or
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municipality to opt out of statewide transportation, then said local education agency and/or
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municipality shall not be penalized in any and all state aid appropriations for contracting the service.
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(b) There shall be deducted from the final aid payment to each school district any amounts
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owed to the state at the end of the fiscal year for transportation of the district’s students under the
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statewide transportation system established pursuant to this section. Districts shall receive monthly
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invoices summarizing the basis of the transportation fees charged. Any such deductions in aid shall
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be transferred to the statewide student transportation services restricted receipt account, as set forth
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in § 35-4-27.
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(c) No school committee shall negotiate, extend, or renew any public transportation service
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contract unless the contract provides for payments to school bus drivers, attendants, monitors, and
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aides for one hundred and eighty (180) days or the length of the contracted-for school year,
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whichever is longer.
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(d) With respect to any contract entered into under this section, a school committee or local
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education agency shall give a preference in contract and/or subcontract awards to the public
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transportation provider that uses electric buses to the greatest extent. This preference shall be given
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equal weight to any other preferences available to vendors.
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(e) With respect to any contract entered into under this section, no school committee or
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local education agency (“LEA”) shall take any adverse disciplinary action against any school bus
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driver, attendant, monitor, or aide covered by a collective bargaining agreement prior to any
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investigation or action taken by the contracting entity as provided for in the collective bargaining
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agreement. Nor shall the school committee or LEA impose discipline in excess of what is provided
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for in the governing collective bargaining agreement.

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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO EDUCATION -- TRANSPORTATION OF SCHOOL PUPILS BEYOND CITY
AND TOWN LIMITS
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This act would provide local educational agencies and/or municipalities with a mechanism
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to opt-out of statewide transportation and contract transportation for students, upon a showing of a
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cost-effective alternative to the current fee-for-service model. If approved, the local agency and/or
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municipality shall not be penalized in any and all state aid appropriations for contracting the service.
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This act would take effect upon passage.
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