South Carolina H 3242: SC School Bus Privatization

Bill Text

2025-2026 Bill 3242 Text of Previous Version (Dec. 06, 2024) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 3242

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE South carolina code of laws BY ADDING CHAPTER 
68 TO TITLE 59 SO AS TO ENACT THE "SOUTH CAROLINA SCHOOL BUS PRIVATIZATION ACT 
OF 2025," INCLUDING PROVISIONS TO PROVIDE THAT THE STATE OF SOUTH CAROLINA 
SHALL NOT OWN, PURCHASE, OR ACQUIRE ADDITIONAL SCHOOL BUSES ON OR AFTER JULY 1, 
2029, AND ITS PRESENT FLEET OF SCHOOL BUSES BE SOLD OR DISPOSED OF ON A 
PHASED-IN BASIS BEGINNING IN 2026, TO PROVIDE THAT BEGINNING WITH THE 2026-2027 
SCHOOL YEAR, SCHOOL DISTRICTS ON A PHASED-IN BASIS INDIVIDUALLY OR TOGETHER 
WITH OTHER DISTRICTS SHALL PROVIDE SCHOOL TRANSPORTATION SERVICES OR BY 
CONTRACT MAY ENGAGE A PRIVATE ENTITY TO PROVIDE SCHOOL TRANSPORTATION SERVICES 
WITH THE PRIVATE ENTITY PROVIDING ALL SCHOOL BUSES, PERSONNEL TO OPERATE, AND 
AUXILIARY SERVICES, AND TO PROVIDE FOR TERMS, CONDITIONS, PROCEDURES, AND 
REQUIREMENTS APPLICABLE TO THE PROVISION OF THESE SERVICES, TO PROVIDE THAT 
STATE SCHOOL BUS MAINTENANCE FACILITIES, ON A PHASED-IN BASIS BEGINNING IN 2026, 
SHALL BE LEASED OR SOLD TO SCHOOL DISTRICTS OR PRIVATE SCHOOL TRANSPORTATION 
PROVIDERS OR IN THE ABSENCE OF A SALE OR LEASE CLOSED, TO ESTABLISH A "SCHOOL 
TRANSPORTATION REIMBURSEMENT FUND" CONSISTING OF SPECIFIED FUNDS WHICH MUST BE 
USED TO REIMBURSE SCHOOL DISTRICTS FOR THE COST OF SCHOOL TRANSPORTATION 
SERVICES ON A FORMULA BASIS AND TO INCREASE TEACHER SALARIES FROM SAVINGS 
RESULTING FROM PRIVATIZATION, and TO PROVIDE FOR THE LIABILITY INSURANCE 
REQUIREMENTS APPLICABLE TO PRIVATE ENTITIES PROVIDING SCHOOL TRANSPORTATION 
SERVICES AND FOR SCHOOL BUS, DRIVER, PASSENGER, AND EQUIPMENT REQUIREMENTS IN 
REGARD TO THESE SERVICES; by AMENDing SECTION 59-67-460, RELATING TO CONTRACTS 
BY SCHOOL DISTRICTS FOR TRANSPORTATION SERVICES WITH PRIVATE CONTRACTORS, SO AS 
TO PROVIDE THAT A SCHOOL DISTRICT OR A GROUP OF SCHOOL DISTRICTS IS AUTHORIZED 
BY CONTRACT TO HAVE THEIR SCHOOL TRANSPORTATION SERVICES PROVIDED BY A PRIVATE 
ENTITY WHICH FURNISHES ITS OWN BUSES, PERSONNEL, AND AUXILIARY SERVICES PRIOR 
TO THE REQUIRED IMPLEMENTATION DATE OF THE DISTRICT'S ASSUMPTION OF 
RESPONSIBILITY FOR ALL SCHOOL TRANSPORTATION SERVICES IN THE DISTRICT AS 
REQUIRED BY CHAPTER 68, TITLE 59; AND by REPEALing SECTION 59-67-460 effective 
july 1, 2029, relating to school transportation services WHEN THE 
RESPONSIBILITY TO PROVIDE these services IS TRANSFERRED FULLY TO THE SCHOOL 
DISTRICTS OF THIS STATE.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Title 59 of the S.C. 
Code is amended by adding:

CHAPTER 68

School Bus Privatization

Article 1

General Provisions

 Section 59-68-100. This 
chapter is known and may be cited as the "South Carolina School Bus 
Privatization Act of 2025."

 Section 59-68-110. (A) The 
State of South Carolina, on and after July 1, 2025, shall not own, purchase, or 
acquire additional school buses as defined in Section 59-67-10 and its present 
fleet of school buses must be disposed of as provided in this chapter.

 (B) All 
state school bus maintenance facilities of the Department of Education, 
according to the schedule provided in Section 59-68-120, must be leased or sold 
to private entities providing school transportation services in this State as 
provided in this chapter, leased or sold to a school district or a group of 
school districts in this State providing their own transportation services in 
the manner permitted by this chapter, or in the alternative, closed when no 
longer needed.

 Section 59-68-120. (A)(1) After 
May 1, 2025, those school districts that do not wish to provide school 
transportation services for the students of the district themselves, shall 
prepare and publish requests for proposals soliciting responsive bids from 
private entities to furnish school transportation services for the district 
beginning with the 2026-2027 School Year or thereafter, but beginning no later 
than the 2028-2029 School Year, in the manner provided by this chapter, or 
shall negotiate an agreement for school transportation with a private carrier 
if permitted under state and local procurement provisions. The governing body 
of the district then shall award a contract to a responsive bidder pursuant to 
the bid or negotiated agreement. An integral part of the contract must be the 
requirement for the private carrier to acquire from the Department of Education 
the state-owned school buses and maintenance facilities previously employed in 
the school transportation services contemplated by the contract. The prices 
for these state-owned buses and facilities must be set in advance as set forth 
in this chapter. State school buses and maintenance facilities may