A district may enter into a contract with a family member to transport their own children.  The contract must be stated in terms of reimbursement for mileage, not hourly, in an amount equal to or less than the current AAA mileage rate for a car to avoid the requirement that anyone paid to transport school children must have a Class E license with S endorsement. If the parent is paid a lump sum amount, an hourly wage, or more than the current AAA rating of the “average cost of operating a car” the parent is considered to be receiving pay for transporting school children.  In this case, the parent must have a Class E license with S endorsement.  The family would also be required to report any payments other than mileage as income to the IRS (Internal Revenue Service).

Parents must agree to be properly licensed and to provide transportation in a safe, inspected, insured, licensed vehicle (5 CSR 30-261.045).