March 2022 by Shelly Jonas

e h T

Operator Volume 52 Issue 3 • March 2022

More Than $3.5 Million for School Bus Stop Arm Cameras to Stop Motorists Risking Students’ Lives Minnesota Department of Public Safety Providing Grants to 32 Schools and Transportation Companies Statewide ST. PAUL — A child should never have to fear boarding a school bus or getting dropped off, but across Minnesota, motorists failing to stop for school buses are risking children’s lives. To change dangerous driving behaviors and keep students safe, the Minnesota Department of Public Safety Office of Traffic Safety is awarding more than $3.5 million in grants to 32 schools and school bus companies to install stop arm camera systems. The project is a joint effort with the Minnesota State Patrol and its school bus safety work. “For a parent, the thought of losing a child to a vehicle blowing past an extended school bus stop arm is unthinkable,” said Mike Hanson, Office of Traffic Safety director. “Yet we see too many drivers who are distracted or place their priorities over the safety of our youngest Minnesotans. The camera grant project is a significant effort to keep kids safe, hold selfish or inattentive drivers accountable, and change dangerous driving choices.” Stop Arm Camera Grant Project The initial grant awards are Phase 1 of a larger stop arm camera grant project. Minnesota state legislators approved funding for this year and 2023, totaling $14.7 million. The funding will be used for purchasing and installing stop arm camera systems and supporting software programs. The Phase 2 grant application process is now open and runs through March 15. Minnesota Drivers Are Endangering Students’ Lives Law enforcement agencies work with schools and transportation companies across Minnesota to cite drivers failing to stop for school buses with flashing lights and stop arms extended. In the past five years, law enforcement cited more than 4,600 drivers for stop arm violations.

See page 10 for a full list of schools/bus companies who have received a grant

2 The Operator

From the President Garrett Regan, Faribault, MN Greetings, All! I hope each of you had a wonderful School Bus Driver Appreciation Day! Those in our industry certainly deserve celebration and ‘thanks’! Thank you to all involved who allowed us to properly recognize our school bus drivers across the State, including Goff Public, the State Patrol, Legislature and many local school districts and jurisdictions across the State! We hope all of you are getting into the swing of things with the Federal ELDT mandates put into effect February 7th, 2022. Hopefully you aren’t finding the need to spend more time, money, or lose potential candidates in this process. With the State Patrol’s curriculum and quiz, along with the federal guidelines for the behind the wheel portion, hopefully many of you are able to handle another mandate within our hiring process without much trouble. There are programs and companies popping up offering services for fees to assist with this process. Many of these may certainly be reputable, but hiring an outside entity is NOT required to meet the mandates, so proceed with caution. Don’t hesitate to reach out if you have questions on the requirements within this new procedure. Thank you for providing your examples of employees being required to ‘retake’ the written tests when adding an endorsement. Unfortunately, there were a lot of examples of lost applicants due to this as members shared with me in February. Fortunately, we’re hoping to have this changed soon, along with other positive changes in the next few months so stay tuned!

MISSION STATEMENT: THE PURPOSE OF THE OPERATOR IS TO PROVIDE THE MEMBERSHIP OF THE MINNESOTA SCHOOL BUS OPERATORS ASSOCIATION WITH INFORMATION REGARDING CURRENT INDUSTRY ISSUES. THE OPERATOR IS PUBLISHED 11 TIMES A YEAR BY THE MSBOA, 10606 Hemlock St. NW • Annandale, MN 55302. FOR MORE INFORMATION CALL 320-274-8313. FAX: 320-274-8027. Website: www.msboa.com SUBSCRIPTIONS ARE FREE WITH MEMBERSHIP. Additional subscriptions are $24.00 a year. COPYRIGHT 2021 MEMBERS MAY MAKE PHOTOCOPIES OR USE ARTICLES AS NECESSARY PROVIDING THE SOURCE IS CITED. Co-Editors: Shelly Jonas: shellyj@msboa.com VIEWS PRESENTED IN THIS NEWSLETTER MAY NOT NECESSARILY REPRESENT THE OPINIONS OF THE ENTIRE MEMBERSHIP OR ITS BOARD OF DIRECTORS.

Have a great rest of the month as we prepare for the busy spring season!

Board of Directors PRESIDENT

Garrett Regan FIRST VICE PRESIDENT

Bethany Schubert SECOND VICE PRESIDENT

Jason Anderson TREASURER

Tom Hey Ex-Officio

Josh Schiffler

Jason Anderson, Big Lake

Tom Hey, Marshall

Garrett Regan, Faribault

Rayme Bernick, Delano

Shelly Jonas, Annandale

Josh Schiffler, Crosby

Eric Burrill, Jordan

Scott Kennedy, Zumbrota - Mazeppa Bethany Schubert, Saint Stephen

763.263.7900/Cell 612.251.8364 jason.anderson@visionmidwest.com

763.972.3991/Cell 612.702.8954 rayme@stahlkebus.com

952.492-2410/Cell eburrill@benjaminbus.com

Ann Casey, St. Louis Park

952.426.7114/Cell 952.797.4936 acasey@adamsvs.net

Connie Grisim, Stewartville 507.533.8775/Cell 507.254.3828 Connie.grisimbus@gmail.com

Doug Grisim, Lake City

651.345.4112/CELL 651.380.9063 douggrisim@gmail.com

507.532.4043 /CELL 507.829.7365 thomashey@iw.net

320.274.8313 / CELL 612.599.0431 shellyj@msboa.com

507.334.5121/ CELL 651.470.7948 gregan@minnesotacoaches.com

218.546.6156 / CELL 612.245.6579 jschiffler@citransportation.com

507.273.2819 skennedy379@aol.com

320.251.1202 / CELL 218.851.2061 bethany@trobecsbus.com

Steve Latour, St. Paul

Kathryn Forbord, Lakeville

651.251.8080 / CELL 651.587.6292 slatour@minnesotacoaches.com

Paul Meyer, Hutchinson

320.234-0888 / CELL 612.281.7375 paulm@hutchbus.com

Michael Putzke, Paynesville 320.243.4455 / FAX 243.4450 putmic@hotmail.com

952.985.7540/ CELL 952.484.6879 kforbord@schmittyandsons.com

Nathan Olander, Detroit Lakes 218.847.7533 njolander@gmail.com

Legislative Update By Scott MacMahon, Flaherty Hood Phone: 651-259-1908 • Email: shmcmahon@flaherty-hood.com

Thank you for those who were able to join the MSBOA in St. Cloud for the winter conference. I always appreciate the times we can come together. While I often share information with the membership, I always come home from the gathering getting more information than I share, knowing more about our industry, and being better positioned to represent you with our policymakers. Thank you for these opportunities. I want to provide a few updates on topics we covered at the conference. First, DPS is currently in the second grant application period for the Stop Arm Camera Grant program. Grants are available to cover the cost of the purchase and installation of stop arm cameras on your buses, as well as funding for upgrades to your system if needed to accommodate the new cameras. If you want cameras on your buses, I highly recommend that you apply. There is significant funding available, and the state wants to have as many buses as possible outfitted with the technology. If you have questions about the grant or need help navigating the application process, please contact Rahya Geisler at rahya.geisler@state. mn.us. She was hired to administer the grant program, but more importantly to help each of you with the process. She’s a great resource and excited to help each operator individually. A second issue we talked about was the status of licensing and the availability of the knowledge test throughout the state. We were joined by the leadership team from DPS that oversees the state’s testing process, and learned that all testing sites are again open, which is great news following the pandemic. Little did any of us know know that the very next week FMCSA would update their regulatory guidance permitting third party testers to administer both the skills and the knowledge test. A welcome change, but one that none of us expected thus month. Since that guidance was released on February 3, we have been working closely with DPS on how this may impact third party testing in Minnesota. I am pleased to report that DPS is moving forward on a number of fronts on this issue. First and foremost, they are reviewing all state statutes and agency rules and regulations to see what legal structures may need to be changed to allow third party testers to begin administering the knowledge test. And just as I am writing this article, I received word from DPS that they have applied for a grant from the FMCSA to assist in making any system changes necessary to expand third party testing in the state. We will continue to work closely with DPS on this issue and provide sector advice as things move forward. On the legislative front, we have just wrapped up the first month of session. 2022 is an election year. Just this month the courts announced new legislative district for all 201 legislators that resulted from population changes captured in the 2020 Census. The state has a $7.7 billion deficit, which will likely grow larger when the updated forecast is announced on February 28. Because of all of these issues colliding during a single, short legislative session, I am not optimistic that much legislative work will get done this session. Fortunately, it appears that at tis time, a lot of our priorities are moving through the agencies rather than the legislature. If you have issues or concerns, you an always reach me at shmcmahon@falherty-hood.com or 651259-1908.

TRANSPORTATION INDUSTRY TAX SAVINGS TO REMEMBER Smith Schafer & Associates HERE ARE 4 TAX CREDITS IMPORTANT TO THE TRANSPORTATION INDUSTRY: 1. Work Opportunity Tax Credit (WOTC) The WOTC is a Federal tax credit available to employers for hiring individuals from certain target groups who have historically faced barriers to employment and discrimination in the workplace. WOTC can reduce your federal tax liability by up to $9,600 per individual employed. The credit is nonrefundable. To start, you must ask for and be issued a certification for each employee from the state workforce agency (SWA) within the state your transportation business is located. The certification proves the employee is a member of a targeted group. To do so, you must either: • Receive the certificate by the day the individual begins work; or • Complete IRS Form 8850, Pre-Screening Notice and Certification Request for the WOTC, on or before the individual’s start date and receive the certification before you claim the credit. This form is used to make a written request to the state workforce agency to certify an individual as a targeted group member. Generally, employers have 28 days after an individual begins work to submit the proper paperwork with the designated local agency to qualify for the credit. Target groups are as follows: • Designated Community Resident • Ex-Felon • Long-Term Family Assistance Recipient • Summer Youth Employee • Supplemental Nutrition Assistance Program Recipient • Supplemental Security Income Recipient • Qualified IV-A Recipient • Qualified Long-Term Unemployment Recipient • Qualified Veteran o Note: Our transportation clients have had great success with hiring returning veterans who already know how to operate vehicles and heavy equipment from their experiences serving our country. The WOTC provides a greater incentive to hire these individuals. • Vocational Rehabilitation Referral 2. Research & Development (R&D) Tax Credit The R&D Tax Credit is an incentive for transportation businesses to invest in research and development activities to increase growth and competitiveness. Companies may be able to take credit up to 13 percent of eligible spending for new and improved products and processes. Qualified research must meet the following four criteria: • Qualified purpose - to develop new or improved products or processes resulting in increased performance, function, reliability, or quality. • Technological in nature - relies on the principles of hard science, such as engineering. • Development of a new or improved component - may include processes, software, techniques, formulas, or inventions. • Substantially all constitute experimentation - testing and evaluation. Eligible costs include employee wages, cost of supplies, cost of testing, contract research expenses, and costs associated with developing a patent. Continued on next page

Continued from previous page

Often there is confusion surrounding the R&D Tax Credit of who is eligible to receive the credit. Research and development can occur anywhere, not just in laboratories. The credit is available to those researching new ideas or improving existing ones to make a job, function, or process more efficient. 3. Fuel Tax Credits One of the most used Federal tax credits in the transportation industry is the fuel tax credit. The credit is for fuel usage and not only for a registered highway vehicle (defined as “off-highway”). The credit also applies to non-propulsion motors such as auxiliary power units, pumps, and refrigeration units. Gasoline and diesel fuel used in school buses and qualified local buses also qualify. Fuel tax credits can be claimed on Form 4136 with your company’s year-end corporate tax return, independent from the corporate tax return, or filed quarterly with Form 720. Fuel credits are retroactive and refundable. The credits are mainly utilized at the federal level, but some states also allow a credit. For record-keeping purposes, you should keep the number of gallons used, the dates the fuel was purchased, the number of gallons used for each purpose, and the names and addresses of suppliers. 4. 2021 Employee Retention Credit A federal payroll tax credit is available for businesses that were impacted by COVID-19. The credit is up to $7,000 per employee, per quarter for the first three quarters of 2021. A maximum credit of $21,000 per employee for 2021 is available for businesses that qualify. In order to qualify the business must have been impacted by COVID-19 in either of the following ways. 1. The business was impacted by a governmental order that either completely or partially shut down their operations. Businesses that were subjected to capacity restrictions may qualify under certain circumstances. In Minnesota, many businesses were subject to capacity restrictions through May 28, 2021. 2. The business saw a quarter-over-quarter drop in revenue in 2021 of 20% compared to the same quarter in 2019. Under this analysis, each quarter stands alone for comparison. Businesses that are not down 20% for the year may still qualify if the quarterly revenue is down. Additionally, businesses qualifying under this provision receive the credit until the END of the quarter that no longer qualifies. Meaning, if a business qualifies in 1st quarter, the business automatically qualifies for 2nd quarter. This credit was also available in 2020, with slightly different rules. Businesses can still amend 2020 payroll tax returns if they qualify under the 2020 rules. Businesses that received the second round PPP cannot use the exact same wages for both ERC and PPP, so it is important to run the analysis to maximize both of these provisions.

Entry Level Driver Training Article By Shelly Jonas We have been hearing from members that there is some confusion of the order of the process for Entry Level Driver Training even among the DMV testing stations. I have included FMCSA’s comments regarding the confusion below: Effective February 7, 2022, there are three (3) distinctive steps to obtain a Commercial Drivers’ License (CDL) Step #1: Knowledge Testing Study the Minnesota Commercial Driver’s License Requirements manual Upon successful completion of Knowledge Testing: A driver will have obtained the Commercial Learners Permit (CLP) A DOT Pre-Employment Drug test can be completed once the driver has a CLP. Prior to this step, you must do a non-DOT Drug test. Step #2: Entry-Level Driver Training (ELDT) – “NEW” Federally Mandated Requirement Effective February 7, 2022 Complete ELDT Training (two primary sections – Classroom Theory Training, and Behind-the Wheel (BTW) training. Once ELDT is successfully completed: Move onto Step #3 Step #3: Skills Test •

Upon successful completion of the ELDT program, which includes theory and behind-the-wheel training, a driver must successfully pass a skills test examination Your Fleet Solutions Partner • The Skills Test Examination – is broken www.hoglundbus.com into three phases: 1. The pre-trip inspection; 2. The basic control skills, and 3. The road test.

CONTACT US TODAY... STOCK UNITS ARE READY FOR IMMEDIATE DELIVERY! We are dedicated to stocking a large inventory of both new and used buses. Our knowledgeable and supportive sales staff will work with you to find a solution to your fleet needs. We have a variety of financing options that fit every budget.

Sales: 800.866.3105 • Parts: 800.866.3104 Service: 866.286.1320

You must take all three (3) tests in a representative vehicle for which you wish to be licensed Upon successful completion a driver will be able to apply for a Commercial Drivers’ License (CDL) Everything related to ELDT (quizzes, regulation, handbook, etc.) is conveniently located on the MSBOA website at MSBOA.COM

2022 MSBOA Winter Conference

President Garrett Regan awarded Senator Scott Newman a friend of transportation award in appreciation for his efforts for school bus safety in Minnesota. Thank you Senator Newman for recognizing the importance of stopping for school bus stop arms by introducing legislation to put stop arm cameras on all school buses in Minnesota.

DPS- Pong Xiong

FMCSA- Matt Marrin

Terry Nebelsick

Find Us on Facebook! Minnesota School Bus Operator’s Assosication

State Patrol Stop Arm Data Collection Article by Shelly Jonas

Reminder: Please continue to use the Stop Arm Violation Report from the State Patrol. The State Patrol is trying to understand the discrepancies in between the numbers that have been reported and those that are charged out. EVEN IF YOU DO NOT HAVE ALL OF THE INFORMATION or the License plate – please fill out the report that it happened. Some members have expressed an issue that you have to report twice; once to law enforcement and once to the State Patrol. Yes, that is true BUT – this data is important! And you can always click “send me a copy of my responses” and perhaps you can utilize that or your local law enforcement report. A link to the State Patrol form can be found on the home page of our website www.msboa.com or on the State Patrol website under Commercial Vehicles and School Bus Safety.

Mask Guidance Changes

Article by Shelly Jonas

Effective February 25, 2022, CDC does not require wearing of masks on buses or vans operated by public or private school systems, including early care and education/child care programs. CDC has said masks are no longer necessary on school buses as long as COVID transmissibility is low in your area. You will recall there has been an overlap between the CDC and TSA on this issue as the TSA Security Directive covers airports, airplanes, buses, bus terminals, train stations, trains, and other forms of transportation. That overlap is no longer our concern. We should be following the CDC for school bus transportation and not the TSA. The updated CDC guidance: https://www.cdc.gov/quarantine/masks/mask-travel-guidance.html.

US DOT issues Proposed Rulemaking on Oral Fluid Testing Article by Shelly Jonas

The U.S. Department of Transportation is proposing to amend the transportation industry drug testing program procedures regulation to include oral fluid testing. This will give employers a choice that will help combat employee cheating on urine drug tests and provide a more economical, less intrusive means of achieving the safety goals of the program. In proposing oral fluid testing, the Department is not requiring employers to use oral fluid testing instead of urine testing, or for every test reason (e.g., preemployment, random, etc.). Instead, we are proposing to offer employers the flexibility in the type of specimen they collect. That flexibility will provide several benefits. For example, when an employer determines that a DOT post-accident or a reasonable cause/ suspicion test is needed, oral fluid collections could be done at the scene of the accident or the incident. If an employer is looking to detect recent drug use, (i.e., reasonable cause/ suspicion, post-accident), an employer may find that the more immediate window of detection associated with oral fluid is acceptable. However, if an employer is looking to detect a pattern of intermittent drug use through preemployment, random, return-to-duty, follow-up testing, the delayed windows of detection in urine may be preferable. The DOT seeks comment on whether oral fluid or urine should be mandated, or prohibited, for certain test reasons, based on windows of detection. Should an employer and its service agent be allowed to opt for a different methodology if the first test cannot be completed because of an insufficient specimen or other reason?

The USDOT is accepting comments on the proposed rulemaking through March 30, 2022. Comments may be submitted via the Federal eRulemaking Portal: Go to http://www.regulations.gov and follow the online instructions for submitting comments. To ensure proper docketing of your comment, please include the agency name and docket number DOT–OST–2021–0093 or the Regulatory Identification Number (RIN), 2105–AE94.

Schools/Bus Companies Receiving Grants

Counties Served

Grant Award

Camera Systems/Buses

Aitkin Public Schools

Aitkin

$6,050.00

Becker Public Schools

Sherburne

$16,500.00

Benson Public Schools

Swift

$9,990.00

Bloomington Public Schools

Hennepin

$154,194.00

Cloquet Transit Company

Carlton

$16,400.00

Faribault Transportation Services, Inc.

Rice

$77,392.95

Fillmore Central Schools

Fillmore

$30,486.54

Forest Lake Area Schools

Washington, Anoka, Chisago

$270,575.62

109

Greenway Public Schools

Itasca

$49,300.00

Grisim School Bus, Inc.

Olmsted

$29,325.00

Held Bus Service

Goodhue, Rice, Dodge, Steele

$35,424.00

Hoglund Transportation

Wright

$20,384.00

Kasson Mantorville School

Dodge, Mower, Olmsted

$9,784.00

M & M Bus Service

Wright

$49,383.31

McGregor Independent School Dist.

Aitkin

$28,680.00

Minnesota Coaches, Inc.

Dakota, Ramsey, Hennepin, Houston, St. Louis

$1,273,136.00

557

New Prague Area Schools

Scott, LeSueur, Rice

$119,836.00

New Ulm Bus Lines

Brown, Nicollet

$7,350.00

Ottertail Coaches, Inc.

Otter Tail

$78,312.77

Palmer Bus Financial Management, Inc

25 Minnesota school districts

$902,491.70

396

Rehbein Transit Company

Anoka

$46,465.59

Richfield Public Schools

Hennepin

$7,804.83

Rock Ridge Public Schools

St. Louis

$17,770.00

Rustad School Bus, Inc.

Swift, Kandiyohi

$3,202.20

Schmitty & Sons

Dakota, Scott

$58,902.80

South Washington County Schools

Washington

$94,264.00

Spanier Bus Service Inc

Stearns

$50,775.00

Strack's Bus Service, Inc.

Morrison

$8,203.44

Triton ISD 2125

Dodge, Goodhue, Steele

$9,654.66

Underwood School District 550

Otter Tail

$5,500.00

Vision of Big Lake Inc.

Sherburne

$16,744.09

Willow River Area School ISD 577

Pine, Aitkin

$26,993.50

$3,531,276.00

1,754

Preliminary total award amount

Gun Violence in Minnesota Schools

Article By Shelly Jonas On February 1, 2022 a shooter at Richfield South Education Center killed one student and critically injured another. On February 9th, a school bus driver was hit by gunfire in North Minneapolis with children on board. The school bus driver is expected to recover from his injuries. While both events are active investigations, school transportation teams are wondering if there are any lessons that can be extracted from the senseless, tragic events. At a recent Safety Committee meeting, Kelsey Mester from Metropolitan Transportation Network said that their dispatch staff was very well equipped to respond to the driver who was able to call in his injury. They said that the police responded quickly, and the driver was able to get medical attention. However, they have since discussed what they would have done if the driver was not able to call in. They have discussed GPS tracking to watch for idling in one place and their response if a driver doesn’t respond to a call from dispatch. Many committee members talked about student training curriculum to include using the radio or applying the air brake. Frank Zeman, Operations Administrator at Minneapolis Public Schools, stated he felt communication with law enforcement was critical. He suggested finding out who will be in charge of the crime scene and open a dialog. He also said it was important to realize that the school or bus will be considered a crime scene so no one will be allowed to be there. Make sure your staff can have alternate access to anything you might need on the bus such as student lists or driver emergency contacts. He said it is critical to talk to everyone about safety. It is a big concern for everyone right now, but specifically moving forward. How will drivers, parents and students feel about riding the bus again, driving the route again and returning to the school or location of a tragedy? He said that emergency plans should be up to date and saved to where everyone can access them quickly. Amy Tiedens, District 287 Transportation Manager, said that emergency plans should have “back ups to the back up”. At the Richfield South Education Center, their planned evacuation site was nixed by the crime scene commander because there was no room for all the school buses to come in due to emergency responders, law enforcement and media. An alternative site was chosen, and they brought in Metro Transit buses in to hold the students until they were picked up. However, Tiedens shared they did not understand the need for wheelchair buses and the student population that is served by District 287. Tiedens also shared that many of their designated key people were not in the school district that day so all those key people should have replacements if they are gone on a day when the emergency plan needs to be enacted. Jennifer Christianson, from Koch School Bus, had two drivers on site at the Richfield South Education Center and heard the gunshots as they were fired. She said there was a lot of confusion and that her drivers and staff didn’t fully comprehend what was happening. She suggested management should keep checking in with drivers after an event occurs and to encourage the use of counselors. It often takes time to fully comprehend the trauma that they have witnessed. Christianson stated one of the drivers did not have insurance and did not want to take advantage of the counseling offered by the school district. But finally over a weekend, he ended up finding assistance online. She noted that it is often difficult to get in to see a mental health therapist and she appreciated the creative approach as her driver was able to find something he was comfortable with. Zeman and Tiedens both stressed the importance of bringing in counselors to debrief with for staff as well as students and parents. The Safety Committee discussed holding a future discussion on these events later this summer.

MSBOA LEGAL HOTLINE (952) 921-4622 Tom Revnew at

Peters, Revnew, Kappenman & Anderson, P.A.

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