Purpose

This bill would update rules about who can run road tests for Minnesota school bus drivers and how service cooperatives (SCs) and districts work with testing programs. It also makes changes to insurance-related activities tied to these cooperatives.

Main Provisions

• Annual planning by service cooperatives
  • Requires each SC to submit a yearly plan identifying programs and services for the next year. The plan can include many areas, such as administrative services, curriculum development, data processing, distance learning, staff development, technology, health and safety services, pupil personnel services, and, importantly, thirdparty testing of school bus drivers.
• Expanded scope of services for SCs
  • The list of potential programs for SCs is broadened to include a wide range of educational, administrative, and support services, plus the ability for SCs to run thirdparty testing of school bus drivers.
• Health and insurance provisions for SCs
  • SCs operating health-related programs may provide coverage to certain nursing and boarding care facilities.
  • SCs must rebid health, dental, or long-term disability coverage contracts at least every four years. Premiums for these coverages can be set for individual employers or on pooled bases, as determined by the SC.

• Oversight

  • When SCs operate a health reinsurance program (stop-loss coverage), they are subject to regulation and oversight by the state’s commissioner of commerce under insurance laws.

• Third-party testing of school bus drivers

  • Road tests (including endorsement tests needed to operate a school bus) can be administered by districts or bus companies that act as thirdparty testing programs and enter into agreements with other districts or companies.
  • Reimbursement: The tested district or company pays the thirdparty tester.
  • Certification: A certified thirdparty tester must be employed by a district or a bus company providing testing services.
  • Inter-district and inter-company testing: Districts and bus companies can form bilateral agreements to test employees of other districts or companies.
  • Commission approval: Testing agreements must be submitted to the commissioner for approval.
  • Service cooperatives as testers: The commissioner may designate a service cooperative (designated under 123A.21) as a thirdparty testing program. A designated SC may administer road tests for employees of a member district that owns or operates school buses.

Changes to Existing Law

• Section 123A.21 Subd. 7
  • Adds “thirdparty testing of school bus drivers” to the list of programs/services SCs may include in their annual plan.
• Section 171.3213
  • Re-defines “road test” to include all necessary endorsement tests to operate a school bus.
  • Allows bilateral testing arrangements between districts and/or bus companies.
  • Establishes rules for reimbursement and certification of thirdparty testers.
  • Enables service cooperatives to be designated as thirdparty testing programs and to administer tests for member districts’ employees.

Implementation and Key Actors

• Who can conduct tests
  • School districts acting as thirdparty testing programs
  • School bus companies acting as thirdparty testing programs
  • Service cooperatives designated as thirdparty testing programs
• How testing works
  • Agreements with other districts or companies
  • Reimbursement arrangements
  • Commissioner approval for testing agreements
  • Requirement for certified testers
• Oversight and regulation
  • Commerce department oversight for health reinsurance/stop-loss programs
  • Insurance-law compliance for SC health-related programs

Potential Implications

• May increase flexibility and efficiency by allowing districts, bus companies, and service cooperatives to share testing duties across districts.
• Could reduce duplicative testing resources and standardize testing practices through SC designation.
• Introduces formal oversight and contracts for testing arrangements and insurance-related activities to ensure compliance.

Relevant terms thirdparty testing, road test, school bus driver, school district, school bus company, service cooperative, bilateral agreements, certification, certified thirdparty tester, reimbursement, commissioner for approval, commissioner of commerce, health reinsurance, stop loss coverage, rebid, premiums, health and safety services, data processing, distance learning, staff development, administrative services, testing program designation, regulatory oversight, insurance laws.