1. The board of trustees of a school district may, except as otherwise provided in subsections 5 and 6, authorize the school district to enter into a written agreement to lease school buses or vehicles belonging to the school district for special events that take place within the county in which the school district is located, provided that such an agreement will not interfere with or prevent the school district from furnishing transportation for pupils for the purposes described in NRS 386.790 and 386.815.

2. If a school district enters into an agreement pursuant to this section, the agreement must include, without limitation, a provision requiring the lessee to:

(a) Provide a security deposit in an amount which is not less than 20 percent of the estimated total amount of the fee set forth in the agreement;

(b) Pay a fee in an amount which is not less than the total cost per mile for the use of a school bus or vehicle to the school district, as determined by the transportation department of the school district, if the school district has such a department, or by the board of trustees, if the school district does not have such a department, and any additional costs or expenses related to the use of the school bus or vehicle, including, without limitation, fuel, wear and tear, maintenance, appropriate staffing, administrative costs and an additional rental service fee;

(c) Indemnify and hold the school district harmless against any claim, demand, judgment or legal action, whatsoever, including, without limitation, any losses, damages, legal costs or expenses incident thereto;

(d) Indemnify and hold the driver of a school bus or vehicle harmless against any claim, demand, judgment or legal action, whatsoever, including, without limitation, any losses, damages, legal costs or expenses incident thereto incurred when acting in the scope of his or her employment;

(e) Accept responsibility for any damage to the school bus or vehicle while leased as determined by the transportation department of the school district, if the school district has such a department, or by the board of trustees, if the school district does not have such a department;

(f) Provide proof that the school bus or vehicle leased will be operated by a person licensed under the laws of this State to operate the particular type of bus or vehicle leased;

(g) Provide proof of insurance which covers the school bus or vehicle while operated by the lessee up to an amount determined by the transportation department of the school district, if the school district has such a department, or by the board of trustees, if the school district does not have such a department;

(h) Provide proof of a permit or other approval for the special event, if required by a governmental entity;

(i) Give preference to a driver of a school bus or vehicle who is employed by the school district before hiring another driver who is not employed by the school district; and

(j) Acknowledge that by entering into such an agreement, the lessee does not become an agent or employee of the school district and is not entitled to the limitation on damages set forth in NRS 41.032 to 41.038, inclusive, for any act or failure to act by the lessee or an agent or employee of the lessee.

3. Except as otherwise provided in this subsection, whenever any school bus or vehicle belonging to a school district is leased, any lettering on the school bus or vehicle designating the vehicle as a school bus or vehicle must be covered and concealed, no signs or wording may be affixed to the school bus or vehicle and any system of flashing red lights or a mechanical device attached to the front of the school bus or vehicle must not be used in the operation of the school bus or vehicle by the lessee except in the case of an emergency. A system of flashing red lights or a mechanical device attached to the front of the school bus or vehicle may be used in the operation of a school bus or vehicle only during an emergency.

4. A school district shall separately account for any money collected as a result of an agreement to lease a school bus or vehicle which exceeds the actual cost to the school district and, except as otherwise provided in this subsection, such money may be used at the discretion of the school district. A school district may not use any money collected as a result of an agreement to lease a school bus or vehicle to:

(a) Settle or arbitrate disputes between a recognized organization representing employees of the school district and the school district, or to settle any negotiations; or

(b) Adjust the district-wide schedules of salaries and benefits of the employees of the school district.

5. A school district may not enter into an agreement pursuant to this section:

(a) For special events that take place outside the county in which the school district is located.

(b) If the school district determines that transportation by a commercial bus is reasonably available for a special event.

6. A school district may not lease during any period of time more than 8.5 percent of the total number of school buses and vehicles belonging to the school district.

7. For the purposes of this section, “special event” means an event or series of events that does not take place during the regular school day and is not an interscholastic contest, school festival or other activity properly a part of a school program.

(Added to NRS by 2017, 1560, 2178)