CHAPTER 5. TRANSPORTATION CONTRACTS
IC 20-27-5
Chapter 5. Transportation Contracts
IC 20-27-5-1
Nonpublic school exemption
Sec. 1. This chapter does not apply to a nonpublic school or to a
school bus driver contract executed for a nonpublic school.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-2
Authority to provide transportation
Sec. 2. The governing body of a school corporation may provide
transportation for students to and from school.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-3
Transportation responsibilities
Sec. 3. If a school corporation provides transportation for
students, the governing body of the school corporation is responsible
for obtaining the necessary school buses and school bus drivers.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-4
Employment of school bus driver
Sec. 4. (a) If a school corporation owns the school bus equipment
in its entirety, the school corporation may employ a school bus driver
on a school year basis in the same manner as other noninstructional
employees are employed.
(b) If a school corporation employs a school bus driver under
subsection (a), the employment contract between the school
corporation and the school bus driver must be in writing.
(c) A school corporation that hires a school bus driver under this
section shall purchase and carry public liability and property damage
insurance covering the operation of school bus equipment in
compliance with IC 9-25.
(d) Sections 5 through 32 of this chapter do not apply to the
employment of a school bus driver hired under this section.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-5
Driver furnishing body or chassis of school bus; written
transportation contract; benefits
Sec. 5. (a) If a school bus driver is required to furnish the school
bus body or the school bus chassis, or both, the governing body of
the school corporation shall enter into a written transportation
contract with the school bus driver.
(b) The transportation contract may include a provision allowing
the school bus driver to be eligible for the life and health insurance
benefits and other fringe benefits available to other school personnel.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-6
Fleet contract; written fleet contract; benefits
Sec. 6. (a) When a fleet contractor is required to provide two (2)
or more school buses and school bus drivers, the governing body of
the school corporation shall enter into a written fleet contract with
the fleet contractor.
(b) The fleet contract may include a provision allowing the school
bus drivers to be eligible for the life and health insurance benefits
and other fringe benefits available to other school personnel.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-7
Transportation or fleet contract; negotiation
Sec. 7. Transportation or fleet contracts may either be:
(1) negotiated and let after receiving bids on the basis of
specifications, as provided for in section 10 of this chapter; or
(2) negotiated on the basis of proposals by a bidder in which the
bidder suggests additional or altered specifications.
A school corporation negotiating and executing a transportation
contract shall comply with section 5 and sections 9 through 16 of this
chapter. A school corporation negotiating and executing a fleet
contract shall comply with sections 8 through 16 of this chapter.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-8
Transportation or fleet contract; specifications
Sec. 8. (a) The governing body of a school corporation shall adopt
specifications for transportation and fleet contracts before entering
into a transportation or fleet contract under section 5 or 6 of this
chapter.
(b) The specifications shall be prepared and placed on file in the
office of the governing body at least fifteen (15) days before the
advertised date for beginning negotiations or receiving proposals or
bids. However, if a school corporation is under the jurisdiction of a
county superintendent of schools, the specifications shall be placed
on file in the office of the county superintendent.
(c) All specifications are public records and are open, during
regular office hours, for inspection by the public.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-9
Transportation or fleet contract; required specifications
Sec. 9. The specifications for contracts adopted under section 8 of
this chapter must include the following:
(1) A description of the route for which the contract is to be let.
(2) The approximate number of students to be transported on
the route.
(3) The approximate number of miles to be traveled each school
day on the route.
(4) The type of school bus equipment required to be furnished
by the school bus driver or fleet contractor, including the
seating capacity of the equipment required.
(5) The amount of public liability and property damage
insurance coverage, if any, required to be furnished by the
school bus driver or fleet contractor. If a school corporation
owns either the chassis or the body of the school bus
equipment, the specifications must recite the amount and kind
of insurance coverage required to be furnished by a bidding
school bus driver. In addition to the amount and kind of
insurance set forth in the specifications, the governing body, the
school bus driver, or the fleet contractor may, at their own
election and at their own expense, carry additional insurance,
including health, accident, and medical payments insurance.
(6) The amount of surety bond required to be furnished by the
school bus driver.
(7) The length of the term for which the contract may be let.
However, a township trustee may not enter into a school bus
contract that has a term extending beyond the June 30 following
the expiration date of the trustee's term of office.
(8) Any other relevant information necessary to advise a
prospective bidder of the terms and conditions of the
transportation contract or fleet contract.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-10
Transportation or fleet contract; public notice
Sec. 10. (a) The governing body shall give notice to the public at
least ten (10) days before beginning negotiations or receiving
proposals or bids for transportation or fleet contracts. Notice shall be
given in the manner provided by IC 5-3-1. The notice must include
the following information:
(1) That the governing body will negotiate, receive proposals,
or receive bids for transportation contracts and fleet contracts
on a specified date.
(2) That the governing body will execute contracts for the
school bus routes of the school corporation.
(3) That the specifications for the routes and related information
are on file in the office of the governing body or in the office of
the county superintendent.
(b) A transportation or fleet contract may not be negotiated until
notice has been given under this section.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-11
Transportation or fleet contract; time to be let
Sec. 11. (a) Except as provided in subsection (b), if the duration
of a transportation or fleet contract is for more than one (1) full
school year, the contract must be let before the May 1 preceding the
beginning of the first school year covered by the contract.
(b) A contract described in subsection (a) that is let after the May
1 preceding the beginning of the first school year covered by the
contract is valid if the contract was let after May 1 due to an
emergency situation.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-12
Transportation or fleet contract; award
Sec. 12. (a) If a transportation or fleet contract is let under
sections 5 through 11 of this chapter, or let after renegotiation under
section 16 of this chapter, the contract shall be awarded to the lowest
responsible bidder, subject to the limitations in this section and in
sections 14 and 15 of this chapter.
(b) The governing body may refuse to award the bid to the lowest
responsible bidder if the amount of the bid is not satisfactory to the
school corporation.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-13
Prerequisites for bidders for transportation contract
Sec. 13. Before a bidder may be awarded a transportation
contract, the bidder must meet the following conditions:
(1) The bidder must meet the physical requirements prescribed
in IC 20-27-8-1 as evidenced by a certificate signed by an
Indiana physician who has examined the bidder.
(2) The bidder must hold a valid public passenger chauffeur's
license or commercial driver's license issued by the bureau of
motor vehicles.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-14
Transportation or fleet contract; power to reject bid
Sec. 14. A governing body may reject any or all bids. If a bid is
not received for a specified route, the governing body may either
readvertise for bids or negotiate a contract for the route without
further advertising.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-15
Transportation or fleet contract; alteration of route
Sec. 15. The governing body may alter a school bus route at any
time. If the altered route is longer than the route in the original
contract, the school bus driver or fleet contractor shall be paid
additional compensation for each additional mile or fraction of a
mile. The additional compensation shall be based on the average rate
per mile in the original contract.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-16
Transportation or fleet contract; change of equipment
Sec. 16. The governing body may require the school bus driver or
fleet contractor to furnish equipment with greater seating capacity at
any time. When a school bus driver or fleet contractor is required to
furnish different equipment during the term of the contract, the
contracting parties may mutually agree to the cancellation of the
existing contract and renegotiate a new contract for the balance of
the term of the original contract. Action taken by a governing body
under section 15 of this chapter does not preclude simultaneous
action under this section.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-17
Transportation or fleet contract; amendment
Sec. 17. Notwithstanding any other provision in this chapter, the
governing body may, with the consent of the other party or parties to
the contract, amend an existing transportation or fleet contract to
make any necessary adjustments caused by a fluctuation in the cost
of fuel that occurs during the term of the contract.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-18
Transportation or fleet contract; road conditions
Sec. 18. If highway or road conditions require a school bus driver
to drive a greater distance than provided by the contract, additional
compensation shall be paid to the school bus driver or fleet
contractor. The additional compensation shall be computed as if the
governing body had lengthened the route under section 15 of this
chapter.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-19
Transportation or fleet contract; sale or assignment
Sec. 19. A transportation or fleet contract entered into under this
chapter may not be sold or assigned except by written agreement of
both parties to the original contract and by the assignee or purchaser
of the contract.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-20
Transportation contract; substitute driver
Sec. 20. After notice to the governing body or its authorized
agent, a school bus driver may provide a substitute driver for any of
the following reasons:
(1) Illness of the school bus driver.
(2) Illness or death of a member of the school bus driver's
family.
(3) Compulsory absence of a school bus driver because of jury
duty.
(4) Performance of services and duties related to the Indiana
State Association of School Bus Drivers, Inc.
(5) Performance of services and duties required by service in
the general assembly.
(6) Attendance at meetings of the committee.
(7) Management by a school bus driver of the school bus
driver's personal business affairs. However, a school bus driver
may not be absent for management of personal business affairs
for more than ten (10) days in any one (1) school year without
the approval of the governing body.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-21
Transportation contract; substitute driver requirements
Sec. 21. A substitute school bus driver may not operate a school
bus unless the substitute school bus driver meets the standards
required by IC 20-27-8-1 and has been approved by the governing
body or its authorized agent.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-22
Transportation contract; termination; generally
Sec. 22. (a) A school bus driver's transportation contract may be
terminated for:
(1) incompetency;
(2) physical disability;
(3) negligence; or
(4) failure to faithfully perform the school bus driver's duties
under the contract;
only after the school bus driver has received notice and a hearing.
(b) Notice under subsection (a) must:
(1) be in writing; and
(2) allow a reasonable time before the hearing.
(c) The school bus driver may appear at a hearing under
subsection (a) either in person or by counsel.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-23
Transportation contract; termination; alcoholic beverage
Sec. 23. A school bus driver may not consume an alcoholic
beverage during school hours or while operating a school bus. A
transportation contract may be terminated without hearing upon
presentation of reliable evidence that a school bus driver has
consumed an alcoholic beverage:
(1) during school hours;
(2) while operating a school bus; or
(3) while performing the school bus driver's duties.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-24
Transportation contract; physically unfit driver; duty
Sec. 24. When a physical examination reveals that a school bus
driver is physically unfit to perform the transportation contract, the
school bus driver shall:
(1) furnish a substitute school bus driver who is qualified under
section 21 of this chapter; or
(2) assign the school bus driver's transportation contract, if the
governing body approves, to a person qualified under this
chapter.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-25
Transportation contract; physically unfit driver; termination
Sec. 25. (a) If a school bus driver is found physically unfit and
fails to perform the duty required by section 24 of this chapter, the
governing body may terminate the school bus driver's contract after
the school bus driver has been given notice and an opportunity for a
hearing.
(b) Notice under subsection (a) must:
(1) be in writing; and
(2) allow a reasonable time before the hearing.
(c) The school bus driver may appear at a hearing under
subsection (a) either in person or by counsel.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-26
Fleet contract; school bus driver provisions
Sec. 26. A fleet contract entered into under this chapter must
provide the following:
(1) The fleet contractor is responsible for the employment,
physical condition, and conduct of every school bus driver
employed by the fleet contractor.
(2) The fleet contractor shall submit to the governing body a list
of the names, addresses, telephone numbers, and route
assignments of all regular and substitute school bus drivers
employed by the fleet contractor.
(3) All school bus drivers employed by the fleet contractor must
meet the physical, moral, and license standards prescribed in
IC 20-27-8.
(4) School bus drivers employed by a fleet contractor shall
attend the annual safety meeting for school bus drivers
sponsored by the committee and the state police department in
accordance with IC 20-27-8-9.
(5) Failure to employ school bus drivers who meet and maintain
the physical, moral, and license standards of IC 20-27-8, or
failure to compel attendance of a school bus driver at the annual
safety meeting, is a breach of contract and may result in
termination of the fleet contract and in forfeiture of the surety
bond.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-27
Transportation or fleet contract; cancellation; purchase of
equipment
Sec. 27. If a transportation or fleet contract is canceled by a
governing body under this chapter, the governing body may purchase
the school bus equipment owned by the school bus driver or fleet
contractor and used under the transportation contract. The purchase
price is the fair market value of the equipment as determined by
agreement of the governing body and the school bus driver or fleet
contractor.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-28
Transportation or fleet contract; bond
Sec. 28. A school bus driver or fleet contractor operating a
transportation or fleet contract shall furnish a surety bond
conditioned on faithful performance of the contract. The governing
body shall specify the amount of bond required.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-29
Common carrier contract; generally
Sec. 29. A governing body may enter into a contract for student
transportation with a regular route common carrier that operates
under the jurisdiction of the department of state revenue.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-30
Common carrier contract; provisions
Sec. 30. Each common carrier contract made under section 29 of
this chapter must provide the following:
(1) The common carrier is solely responsible for the
employment, physical condition, and conduct of every school
bus driver employed by the carrier.
(2) The carrier must submit a certificate to the governing body
showing that any school bus driver used in performing the
contract meets the physical standards required by
IC 20-27-8-1(a)(7).
As added by P.L.1-2005, SEC.11. Amended by P.L.1-2009, SEC.123.
IC 20-27-5-31
Common carrier contract; exemption from physical examination
Sec. 31. When a school bus driver is employed by a common
carrier to assist in performing a common carrier contract made under
section 29 of this chapter, the school bus driver is exempt from
mandatory physical examinations required under this article, except
to the extent that examination may be necessary for a common
carrier to comply with section 30(2) of this chapter.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-32
Common carrier contract; exemption from requirements
Sec. 32. A bus operated under a common carrier contract is not
required to be constructed, equipped, or painted as specified under
this article or the rules of the committee unless the bus:
(1) is operated exclusively for the transportation of students to
and from school; or
(2) must be operated more than three (3) miles outside the
corporation limit of a city or town in order to perform the
contract.
As added by P.L.1-2005, SEC.11.
IC 20-27-5-33
Violation
Sec. 33. A person who knowingly, intentionally, or recklessly
violates this chapter commits a Class C misdemeanor.
As added by P.L.1-2005, SEC.11. Amended by P.L.231-2005,
SEC.36.