(a) When a transportation contract is due to expire for a reason other than the fact that the bus described in said contract is of such vintage that it can no longer be used to transport pupils, a renewal of said contract shall be first offered to the school bus contractor who is party to the expiring contract. In the event that a contractor does not wish to renew the contract, said contract shall be opened to all other interested persons in that area by means of notice published in at least 2 Delaware newspapers of general circulation.

(b) If no parties can be found to assume the responsibilities of contracts expiring pursuant to this section, the department or agency responsible for the transportation of public school pupils shall furnish the transportation previously afforded under the expiring contract.

(c) (1) A school transportation contract may be transferred from a contractor to another party contingent upon approval of the local board of education. In the event that a transfer is proposed by the current contractor, the advertising requirement contained in subsection (a) of this section shall not apply.

(2) A local board of education may disapprove the transfer of a transportation contract to another party only for just cause. Just cause shall be limited to the following criteria:

(3) If the school board decides to reject the prospective contractor, it shall notify that contractor of its decision and provide reasons why that contractor is not acceptable to the district. This discussion may be held in a closed session and the results and reasons shall be disclosed only with the approval of the proposed contractor. In the event that the district rejects the proposed contractor, the current contractor shall have the following options:

a. Continue to operate the bus; or

b. Give up the contract at the end of the year or sooner if allowed by the district; or

c. Find a new contractor which will meet the criteria.

(4) In the event the contractor cannot reach agreement with another party which meets the criteria and is acceptable to the school district, the district may use the process identified in subsection (a) of this section to find a new contractor. In the event that the bus associated with the transportation contract is less than 7 years old and still on the depreciation schedule in the transportation formula, the district shall require that the new contractor make an offer to purchase the bus of the current contractor at least at fair market value as described in a national publication. It shall not be mandatory for the current contractor to accept this offer.

(5) No contract shall be deemed effectively transferred until said transfer is approved by the local board of education and the Department of Education.

(d) (1) The Department of Education is authorized to obtain from all contractors currently providing pupil transportation a letter of commitment to provide such service for the following school year. Such letters shall be signed by the contractor and shall legally bind the contractor to provide pupil transportation service in the following school year contingent upon the enactment into law of the succeeding fiscal year’s budget appropriation act. A contractor shall not be bound by its letter of commitment should the final budget appropriation act include an inflation factor for the school transportation formula that is less than the inflation factor included in the Governor’s proposed budget presented in January of that year.

(2) Failure to sign a letter of commitment shall be interpreted to mean that the contractor does not wish to continue providing pupil transportation services and that an alternative provider shall be found to assume the responsibilities of the existing contractor for the next school year.

(3) The letter of commitment shall be considered an offer of renewal as referenced in subsection (a) of this section. Subsection (b) of this section shall apply to contracts that expire due to the failure of a contractor to sign a letter of commitment.

(4) The Department of Education is hereby authorized to obtain letters of commitment on or before August 1, 1991, for the school year 1991-1992. In all subsequent years the Department of Education is authorized to obtain letters of commitment on or before May 1.

62 Del. Laws, c. 292, § 1; 63 Del. Laws, c. 184, § 1; 66 Del. Laws, c. 303, § 314; 67 Del. Laws, c. 47, § 293; 68 Del. Laws, c. 74, § 1; 70 Del. Laws, c. 59, §§ 1, 3; 71 Del. Laws, c. 180, § 142.