A. Upon the receipt of approval of the permit application from the department of transportation, the state transportation director may grant a permit to operate school buses for general public transportation to a school district that operates its own school buses or to the independent school bus operator who operates school buses under contract with a school district if the director determines that:

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(1)     school bus service to students will not be adversely affected by issuance of the permit;

(2)     the operation of school buses for general public transportation service by the school district or the independent operator will not provide unnecessary duplication of a general public transportation service by school buses of another school district or independent school bus operator contracting with another school district; and

(3)     there has been compliance with the rules and regulations of the state transportation director issued pursuant to the Emergency Transportation Act.

B. The state transportation director subject to the approval of the secretary shall by regulation provide for application fees, forms and permit procedures pursuant to the Emergency Transportation Act.

C. A permit issued under this section shall be valid for one year and shall be annually renewed upon payment of a reasonable application fee to the state transportation division and certification by the department of transportation of the permittee’s compliance with all applicable laws. Notice of renewal of the permit shall be delivered by the state transportation division to the department of transportation and the local school board concerned.