Pupil transportation license

Definition

The state permission to carry students at all, held by the company and not by the fleet.

Why It Matters

In states that license this work the rule reaches the contract itself: no one may transport pupils or enter into a contract with a school board without the license. That is the difference between an asset deal that closes on the seller's timetable and one that waits on a state issuance, because a new entity formed to buy the buses cannot take assignment of the district contract until it holds the license in its own name. Establish the issuing body and its lead time before agreeing a closing date.