I
105TH CONGRESS
1ST SESSION
H. R. 605
To amend the Internal Revenue Code of 1986 to clarify that certain school
bus contractors and drivers are not employees.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 5, 1997
Mr. GILCHREST (for himself and Mr. BARTLETT of Maryland) introduced the
following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to clarify
that certain school bus contractors and drivers are not
employees.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. TREATMENT OF CERTAIN SCHOOL BUS CON-
TRACTORS AND DRIVERS.
(a) IN GENERAL.—Chapter 25 of the Internal Reve-
nue Code of 1986 is amended by adding at the end the
following new section:
‘‘SEC. 3511. TREATMENT OF CERTAIN SCHOOL BUS CON-
TRACTORS AND DRIVERS.
‘‘(a) IN GENERAL.—For purposes of this title, in the
case of services performed as a qualified school bus con-
tractor or as a qualified driver—
‘‘(1) the qualified school bus contractor shall
not be treated as an employee,
‘‘(2) the person for whom services as a qualified
bus contractor are performed shall not be treated as
an employer, and
‘‘(3) the qualified driver shall not be treated as
an employee of any person (except that this para-
graph shall not prevent such qualified driver from
being treated as an employee of the qualified school
bus contractor).
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED SCHOOL BUS CONTRACTOR.—
The term ‘qualified school bus contractor’ means
any individual who—
‘‘(A) owns 1 or more school buses,
‘‘(B) enters into a written agreement with
a public school board or district, or comparable
entity, to provide school bus transportation
services with respect to a public school using
the bus or buses owned by such contractor, and
‘‘(C) is not personally required to drive a
bus as part of such transportation service (but
is permitted to do so if qualified under applica-
ble State and local law to do so).
‘‘(2) QUALIFIED DRIVER.—The term ‘qualified
driver’ means any individual who—
‘‘(A) is qualified under applicable State
and local requirements to drive a public school
bus, and
‘‘(B) is directly engaged by a qualified
school bus contractor to provide school bus
transportation services described in paragraph
(1)(B).
‘‘(3) 
PUBLIC
SCHOOL.—The 
term 
‘public
school’ does not include any school above the second-
ary school level.
‘‘(c) COORDINATION WITH RETIREMENT PLANS FOR
SELF-EMPLOYED.—This section shall not apply for pur-
poses of subtitle A to the extent that the individual is
treated as an employee under section 401(c)(1) (relating
to self-employed individuals).’’
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 25 of such Code is amended by adding at the
end the following new item:
‘‘Sec. 3511. Treatment of certain school bus contractors and driv-
ers.’’
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by
this section shall apply to services performed by in-
dividuals after December 31, 1991, as qualified
school bus contractors and qualified drivers (as de-
fined in section 3511 of such Code, as added by this
section).
(2) SPECIAL RULE.—If refund or credit of any
overpayment of tax resulting from the application of
subsection (a) is prevented at any time before the
close of the 1-year period beginning on the date of
the enactment of this Act by the operation of any
law or rule of law (including res judicata or any
closing agreement between the Internal Revenue
Service and any taxpayer), refund or credit of such
overpayment (to the extent attributable to the appli-
cation of subsection (a)) may, nevertheless, be made
or allowed if claim therefor is filed before the close
of such 1-year period.
Æ