N.Y. Education Law § 3625
5. Transportation contract penalties. a. All acts done and proceedings heretofore had and taken, or caused to be had and taken, by school districts and by all its officers or agents relating to or in connection with a transportation contract, to be filed with the department, where such contract was not timely executed and/or filed within one hundred twenty days of the commencement of service under such contract pursuant to subdivision two of this section and/or where the advertisement for bids for such contract did not meet the requirements set forth in paragraph a of subdivision fourteen of section three hundred five of this chapter, and all acts incidental hereto are hereby legalized, validated, ratified and confirmed, notwithstanding any failure to comply with such filing and/or advertising provision or provisions, provided that the conditions in subparagraphs one, two, three, and four of paragraph b of this subdivision are met. b. The department is hereby directed to consider the aforementioned contracts for transportation aid as valid and proper obligations and shall not recover from such school districts any penalty arising from the failure to execute and/or file a transportation contract in a timely manner and/or meet such advertisement requirements, provided that any amounts already so recovered shall be deemed a payment of moneys due for prior years pursuant to paragraph c of subdivision five of section thirty-six hundred four of this article and shall be paid to the school district pursuant to such provision, provided that: