Section 7A of chapter 71 of the General Laws, as appearing in the 2022 Official Edition, is hereby amended by adding the following paragraph:-

The department shall establish a pricing structure, including a daily price cap, for contracts between private transportation companies and school committees for the transportation of pupils receiving special education and out-of-district students, and for the transportation of pupils in school districts receiving funds under the federal McKinney-Vento Homeless Assistance Act, based on factors including the number of students transported daily, the number of miles traveled and the schedule of rates and wages furnished by the commissioner of labor and industries pursuant to the second paragraph, if such a schedule is furnished to a particular school committee. A school transportation commission shall be established within the department to promote fairness, equity and cost transparency in public school transportation for students receiving special education and out-of-district students. The commission shall consist of the following 15 members: 4 members from the department; 5 members serving on a school committee, to be appointed by the commissioner; 3 members representing school transportation providers, to be appointed by the governor; and 3 members of advocacy groups specializing in issues related to students in foster care and experiencing homelessness. The commission shall promulgate regulations, pursuant to chapter 30A, which shall include: (i) guidance on how to better serve pupils in the foster care system or experiencing homelessness, or pupils from migrant communities; and (ii) a system for ensuring compliance with the pricing structure and pricing cap developed by the department. Annually, not later than September 30, the commission shall conduct a review of school transportation contract compliance. Contracts exceeding a financial threshold, to be determined by the commission, shall be subject to direct review and approval, while all other contracts shall be subject to compliance audits and reporting requirements as determined by the commission. The commission shall annually assess the impact of the transportation pricing structure on the educational experience and outcomes for students, including special education, homeless and foster care students. The department shall use the results of the commission’s assessment to make necessary adjustments to the pricing structure, policies and guidelines to ensure that the transportation system remains effective and equitable.