Amends GS 115C-248 to require that school buses owned or operated by a local school administrative unit be inspected at least once every 42 days (was, 30 days) during the school year.

Amends GS 143-300.1 to give the Industrial Commission jurisdiction over tort claims against any county board of education or any city board of education that arise because of alleged mechanical defects or other defects which may affect the safe operation of a public school bus or school transportation service vehicle resulting from an alleged negligent act of maintenance personnel or as a result of any alleged negligent act or omission of the driver, transportation safety assistant, or monitor of a public school bus or school transportation service vehicle when the driver is a paid or unpaid (was, unpaid only) supervised school bus driver trainee. Allows local boards of education to use State funds appropriated to the transportation allotment for local school administrative units each fiscal year to provide pay to prospective school bus driver trainees to increase retention. Effective July 1, 2017.

Appropriates from the General Fund to the Department of Public Instruction $19,170,070 in recurring funds for 2017‑18 to provide additional funds to local school administrative units for the transportation allotment to be used to increase the maximum hourly rate for school bus drivers that can be paid for with State funds by $2 per hour. Effective July 1, 2017.