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Authorizes the Superintendent to hire a new contractor if a contractor under a student transportation contract fails to provide service on a contracted service capacity or designated service segment for five or more consecutive instructional days. Authorizes the Department of Education to assess a penalty if a contractor fails to provide service on a designated service segment without an approved justification. Authorizes the use of the School Bus Fare Revolving Fund to offset costs associated with procuring replacement services. (CD1)