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F I S C A L I M P A C T R E P O R T





SPONSOR: Rodella DATE TYPED: 03/04/01 HB 108
SHORT TITLE: One-Bus Contractors status change SB
ANALYST: Segura


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02

See Narrative



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



State Department of Education (SDE)



SUMMARY



Synopsis of Bill



House Bill 108 amends Section 22-16-3 NMSA 1978, relating to Public School Transportation.



Significant Issues



The bill would allow an individual school bus owner-operator to exercise an option to convert their contract to a fleet operator contract without being required to submit to a competitive bidding process.



According to SDE, individual owner-operators that change their status to a fleet contractor will no longer be considered an employee of the school district and will not be entitled to school district employee benefits including continuation or retirement contributions.



FISCAL IMPLICATIONS



The bill does not contain an appropriation.



ADMINISTRATIVE IMPLICATIONS



State Board of Education regulation Requirements for School Bus Contracts and Per Capita Feeder Agreements will require an amendment to convert school bus contracts.



OTHER SUBSTANTIVE ISSUES



If House Bill 108 is not enacted, individual owner-operators would be required to bid school bus services when there is a change in contract.



RS/njw:ar