(1) A district may use a passenger vehicle to transport students to or from school-sponsored functions or activities. A district may not use a passenger vehicle for purposes of transporting students to or from school on a regular bus route.
(2) A passenger vehicle that is owned by the district is not eligible to be included in the calculations for the bus depreciation reserve fund under 20-10-147.
(3) For purposes of this section, "passenger vehicle" means a motor vehicle that is:
(a) designed to transport 8 to 15 passengers and is the size and style of vehicle necessary to meet the needs of the district; and
(b) insured in accordance with the minimum coverage requirements established in 20-10-109.