Seat belts on school buses.

Establishes the school bus safety equipment grant fund (fund), administered by the department of education, to provide grants to school corporations seeking to purchase or equip school buses and special purpose buses with 3-point lap and shoulder safety belts or, if recommended by the state school bus committee, other proven safety equipment. Provides that a governing body may apply for a grant from the fund in an amount equal to 50% of the cost of purchasing or equipping a school bus or special purpose bus with 3-point lap and shoulder safety belts or other safety equipment. Requires a governing body seeking to purchase a school bus or special purpose bus to request information concerning the cost of purchasing a school bus or special purpose bus equipped with 3-point lap and shoulder safety belts. Requires the governing body to hold a public hearing on the costs and benefits of purchasing a school bus or special purpose bus with 3-point lap and shoulder safety belts before voting on whether to purchase a school bus or special purpose bus equipped with 3-point lap and shoulder safety belts. Allows a school corporation to use a portion of a grant from the safe schools fund or the secured school fund toward purchase or equipping school buses and special purpose buses with safety equipment. Requires each occupant of a school bus or special purpose bus that has a 3-point lap and shoulder safety belt to have the 3-point lap and shoulder safety belt properly fastened about the occupant's body at all times when the bus is in motion. Provides for an exception to the laws concerning other types of passenger restraint systems.