An Act concerning bidding on public school district transportation contracts and supplementing chapter 39 of Title 18A of the New Jersey Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. The State Board of Education shall establish a process for the prequalification of contractors who desire to bid on public school district transportation contracts. A contractor shall not be permitted to bid on a public school district transportation contract unless the contractor has been prequalified pursuant to the process established by the State board.

b. The prequalification process shall include a requirement that a contractor proposing to bid on a public school district transportation contract submit to the Department of Education a form designated by the State board which includes the following information:

(1) a certified, audited financial statement or compilation of financial statements or other documentation of financial status acceptable to the State board;

(2) a statement as to organization of the prospective bidder which shall demonstrate the adequacy of the prospective bidder to provide school district transportation services;

(3) a statement as to prior experience, which shall indicate the number of years the prospective bidder has been engaged in the school transportation business;

(4) a statement as to past performance, which shall provide an accurate and complete record of any school transportation work previously performed by the prospective bidder;

(5) a statement that all school transportation equipment meets the specifications of federal and State laws, rules and regulations and that the prospective bidder complies with applicable laws, rules and regulations governing pupil transportation. The prospective bidder shall include such information as deemed appropriate by the State board to demonstrate the safety of the school buses operated by the prospective bidder. The information shall include, but not be limited to, the number of out-of-service safety violations imposed by the New Jersey Motor Vehicle Commission pursuant to section 6 of P.L.1999, c.5 (C.39:3B-23);

(6) a certificate of liability insurance;

(7) a statement that the prospective bidder has adopted or will comply with an Affirmative Action Program for Equal Opportunity in accordance with applicable federal and State laws, rules and regulations;

(8) an affidavit of noncollusion;

(9) a statement as to bonding capacity;

(10) a statement setting forth the names and addresses of all stockholders, partners or members who own a 10% or greater interest in the prospective bidder. If any of the stockholders, partners or members are a corporation, partnership or limited liability company owning a 10% or greater interest in the prospective bidder, the statement shall also set forth the names and addresses of all stockholders, partners or members owning a 10% or greater interest in that corporation, partnership or limited liability company; and

(11) any other information required by the State board.

c. The Commissioner of Education shall maintain a registry of all contractors prequalified to bid on public school district transportation contracts. The registry shall include information on the prequalification status of pupil transportation contractors, bonding capacity, insurance coverage, stockholder disclosure statement, if appropriate, the number of out-of-service safety violations imposed by the New Jersey Motor Vehicle Commission pursuant to section 6 of P.L.1999, c.5 (C.39:3B-23), and any other information on contractors which a board of education may require to evaluate bids on school district transportation contracts. The commissioner shall ensure that each school district has access to the registry.

d. A contractor who has been prequalified as a bidder on public school district transportation contracts in accordance with the process established by the State board shall not be required to undergo any other prequalification process to bid on a public school district transportation contract.

2. A contractor who willfully makes, or causes to be made, a false, deceptive, or fraudulent statement in the prequalification form submitted to the Department of Education pursuant to section 1 of P.L. , c. (C. )(pending before the Legislature as this bill), shall be guilty of a crime of the fourth degree and may be permanently disqualified from bidding on any public school district transportation contract; and, in the case of an individual or the officer or employee charged with the duty of making the submission for a contractor, he shall be guilty of a disorderly persons offense.

3. This act shall take effect immediately.

STATEMENT

This bill requires the State Board of Education to establish a process for the prequalification of contractors who desire to bid on public school district transportation contracts. A contractor will not be permitted to bid on a public school district transportation contract unless the contractor has been prequalified.

According to the provisions of the bill, the prequalification process will require the submission by the prospective bidder to the Department of Education of a form designated by the State board which will include the following information:

(1) a certified, audited financial statement;

(2) a statement as to the organization of the prospective bidder;

(3) a statement as to prior experience;

(4) a statement as to past performance;

(5) a statement that all school transportation equipment meets the specifications of governmental laws and regulations. The prospective bidder must also include such information as deemed appropriate by the State board to demonstrate the safety of the school buses operated by the prospective bidder. The information must include the number of out-of-service safety violations imposed by the New Jersey Motor Vehicle Commission;

(6) a certificate of liability insurance;

(7) a statement that the prospective bidder has adopted or will comply with an Affirmative Action Program for Equal Opportunity;

(8) an affidavit of noncollusion;

(9) a statement as to bonding capacity;

(10) a statement setting forth the names and addresses of all stockholders, partners or members who own a 10% or greater interest in the prospective bidder; and

(11) any other information required by the State board.

The Commissioner of Education will maintain a registry of all contractors prequalified to bid on pupil transportation contracts and will ensure that every school district has access to the registry.

The bill includes a provision that makes it a crime of the fourth degree for a contractor to willfully make, or cause to be made, a false, deceptive, or fraudulent statement in the form submitted to the Department of Education for prequalification. In addition, the contractor may be permanently disqualified from bidding on any public school district transportation contract for this activity. In the case of an individual or the officer or employee charged with the duty of making the submission for a contractor, he would be guilty of a disorderly persons offense.