(a) A board of county school trustees or a school district board of trustees may establish and operate an economical public school transportation system:
(1) in the county or district, as applicable;
(2) outside the county or district, as applicable, if the county or school district enters into an interlocal contract as provided by Chapter 791, Government Code; or
(3) outside the district if students enrolled in the district reside outside the district and the district:
(A) has an active policy adopted by the board that prohibits screening transfer students who reside outside the district based on the student’s academic performance, disciplinary history, or attendance record, regardless of any relevant district or innovation plan adopted by the board or authorization to screen transfer students under any other authority; and
(B) certifies that the district has:
(i) an overall performance rating of C or higher under § 39.054 for the preceding school year or the most recent school year in which a performance rating was assigned;
(ii) an overall accountability score of 70 or higher for the preceding school year or the most recent school year in which a performance rating was assigned as calculated by the agency for purposes of determining the district’s overall performance rating under § 39.054; and
(iii) the same or better overall performance rating under § 39.054 for the preceding school year or the most recent school year in which a performance rating was assigned as the school district from which the district will transport students under this subdivision.
(a-1) A school district shall make publicly available on the district’s Internet website information regarding the district’s compliance with the requirements under Subsection (a)(3).

(b) In establishing and operating the transportation system, the county or school district board shall:
(1) employ school bus drivers certified in accordance with standards and qualifications adopted by the Department of Public Safety; and
(2) on determining eligibility for transportation services, allow a parent to designate one of the following locations instead of the child’s residence as the regular location for purposes of obtaining transportation under the system to and from the child’s school, if the location is an approved stop on an approved route:
(A) a child-care facility, as defined by § 42.002, Human Resources Code; or
(B) the residence of a grandparent of the child.
(c) This section may not be construed to prohibit a board of county school trustees or a school district board of trustees from operating a transportation system in another county or district, as applicable, to ensure the most efficient routes for transporting students who reside in the operating county or district.