Bill Text: NJ A4840 | 2026-2027 | Regular Session | Introduced
Bill Title: 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.
Sponsorship: Partisan Bill (Democrat 2)
Status: (Introduced) 2026-05-04 - Introduced, Referred to Assembly Education Committee [A4840 Detail]
Download: New_Jersey-2026-A4840-Introduced.html
Sponsored by:
Assemblyman KENYATTA STEWART
District 35 (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.
