WSR 03-09-050

PROPOSED RULES

SUPERINTENDENT OF

PUBLIC INSTRUCTION

[ Filed April 11, 2003, 9:01 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-03-033.

Title of Rule: Chapter 392-142 WAC, Transportation -- Replacement and depreciation allocation.

Purpose: This revision will update the language to reflect the current configuration of the state school bus fleet by eliminating references to previous depreciation schedules. The categories of school buses are being removed from the WAC and will be described in the annual state determined purchase prices for school bus categories bulletin. There is also clarification to reflect practices used to determine reimbursement payments for used buses and salvage recovery for buses entering the system prior to September 1, 1982.

Statutory Authority for Adoption: RCW 28A.150.290.

Statute Being Implemented: RCW 28A.160.195.

Summary: See Purpose above.

Reasons Supporting Proposal: See Purpose above.

Name of Agency Personnel Responsible for Drafting: Charlie Schreck, Office of Superintendent of Public Instruction, (360) 725-6136; Implementation: Marcia Riggers, Office of Superintendent of Public Instruction, (360) 725-6175; and Enforcement: Allan J. Jones, Office of Superintendent of Public Instruction, (360) 725-6120.

Name of Proponent: Office of Superintendent of Public Instruction, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.

Proposal Changes the Following Existing Rules: The description of the school bus funding categories will be removed from the WAC and moved to the annual state determined purchase prices for school bus categories bulletin.

No small business economic impact statement has been prepared under chapter 19.85 RCW.

RCW 34.05.328 does not apply to this rule adoption.

Hearing Location: Educational Service District 113, 601 McPhee Road S.W., Board Room, Olympia, WA 98502-5080, on May 28, 2003, at 10 a.m.

Assistance for Persons with Disabilities: Contact Ben Gravely by May 18, 2003, TDD (360) 664-3631 or (360) 725-6142.

Submit Written Comments to: Legal Services, Office of Superintendent of Public Instruction, P.O. Box 47200, 600 South Washington Street, Olympia, WA 98504-7200, fax (360) 753-4201, by May 27, 2003.

Date of Intended Adoption: May 29, 2003.

April 4, 2003

Tom J. Kelly

for Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-6269.2


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-010   Purpose.   The purpose of this chapter is to implement RCW 28A.160.200 by developing:

(1) Student transportation vehicle categories;

(2) State-determined purchase prices for student transportation vehicle categories;

(3) Standards for operation and maintenance of school buses;

(4) A replacement schedule (referred to in the statute as reimbursement schedule) and allocation process for district-owned school buses;

(5) A depreciation schedule and allocation process for school buses contracted from private carriers; and

(6) ((Provisions for the continuation of depreciation allocations to school districts for school buses purchased prior to September 1, 1982; and

(7))) Competitive specifications for each category of school bus.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-010, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-010, filed 1/2/90, effective 2/2/90. Statutory Authority: RCW 28A.41.170. 83-22-031 (Order 83-16), 392-142-010, filed 10/26/83.]


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-125   Definition -- Student capacity.   As used in this chapter, "student capacity" means the number of students designated by the school bus manufacturer that can be seated on a school bus((. For school buses equipped with a wheelchair lift, student capacity means the number of students that could be seated in a school bus)) if the vehicle ((was not lift equipped and)) had a maximum complement of seats.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-125, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-125, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-145   Definition -- Useful life.   As used in this chapter, "useful life" means the number of years that a school bus is expected to be in use as assigned to the category of school bus by the superintendent of public instruction.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-145, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending WSR 01-17-005, filed 8/1/01, effective 9/1/01)

WAC 392-142-155   Definition -- School bus categories ((for those buses purchased after September 1, 1982)).   As used in this chapter, "school bus categories ((for those buses purchased after September 1, 1982,))" means ((the following:)) those school bus categories determined annually by the superintendent of public instruction, in consultation with the regional transportation coordinators of the educational service districts, including student capacity, fuel type, and useful life. The superintendent, in consultation with the regional transportation coordinators shall determine placement of buses into specific categories and lifetimes for those types of buses no longer available.

((Student

Capacity

Fuel Type Transmission Type Useful Life
Bus Type
(1) 10 to 24 Gas 8 A-1
(2) 10 to 24 Diesel Automatic 8 A-1
(3) 10 to 34 Gas Automatic 8 A-2
(4) 10 to 34 Diesel Automatic 8 A-2
(5) 10 to 34 Gas Automatic 8 B
(6) 10 to 34 Diesel Automatic 8 B
(7) 35 to 48 Diesel Automatic 13 C
(8) 35 to 48 Diesel Automatic 13 D
(9) 49 to 60 Diesel Automatic 13 C
(10) 49 to 60 Diesel Automatic 13 D
(11) 61 to 77 Diesel Automatic 13 C
(12) 61 to 84 Diesel Automatic 13 D
(13) Heavy 78

to 84

Diesel Automatic 18 D
(14) Heavy 85

to 90

Diesel Automatic 18 D))

[Statutory Authority: RCW 28A.150.290. 01-17-005, 392-142-155, filed 8/1/01, effective 9/1/01; 97-17-042 (Order 97-02), 392-142-155, filed 8/14/97, effective 9/15/97. Statutory Authority: 1996 c 283. 96-16-011 (Order 96-10), 392-142-155, filed 7/25/96, effective 8/25/96. Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-155, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 91-23-071 (Order 25), 392-142-155, filed 11/19/91, effective 12/20/91; 90-02-077 (Order 21), 392-142-155, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-165   Definition -- State-determined purchase price.   As used in this chapter, "state-determined purchase price" means the state ((reimbursement rate for school bus)) replacement or depreciation rate for school buses which shall be based upon the lowest competitive price quote received from school bus dealers for each category of school bus((es)), documented in modified vendor bid proposals associated with meeting state-supported competitive specifications.

Included in the lowest competitive price quote are:

(1) Freight to the school district; and

(2) Cost associated with full payment within thirty days of delivery.

Sales tax is not included as a part of establishing the lowest price quote. Sales tax shall be included in the state-determined purchase price at the highest rate in the state as provided annually by the department of revenue.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-165, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 91-23-071 (Order 25), 392-142-165, filed 11/19/91, effective 12/20/91; 90-02-077 (Order 21), 392-142-165, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-180   Definition -- Total school bus ((depreciation)) replacement payments.   As used in this chapter, "total school bus ((depreciation)) replacement payments" means the sum of all state school bus ((deprecation)) replacement payments for prior school years made for an individual school bus.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-180, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-185   Definition -- Imputed interest earnings.   As used in this chapter, "imputed interest earnings" means the sum of interest which is assumed to be earned on moneys assumed to be available in the ((vehicle)) transportation vehicle fund from state payments and ((imputed)) accumulated interest earnings. The rate used shall be the average of the treasury bill rate for ninety-day notes during the previous state fiscal year calculated on the basis of simple interest.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-185, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-190   Definition -- Salvage value.   As used in this chapter, for those school buses purchased after September 1, 1982, "salvage value" means the state-determined ((school bus)) purchase price for the year the school bus was placed on the state ((depreciation)) replacement schedule divided by the useful life and multiplied by twenty-five percent.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-190, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-195   Definition -- SPI Form 1020.   As used in this chapter, "SPI Form 1020" means that form prepared and distributed by the superintendent of public instruction and used by school districts to notify the superintendent of public instruction of the acquisition or disposition of a school bus ((or that the school bus has been taken out of service)).

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-195, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-212   Obtaining competitive price quotes.   The superintendent of public instruction shall annually request competitive price quotations from school bus dealers for state-supported specifications for all school bus categories. The lowest price quote will be determined using only the base quote price as stated for the state-supported base bus without options. The request for price quotes will at least include:

(1) A modified vendor bid proposal for one representative state-supported school bus in each category as defined in WAC 392-142-155.

(a) A list of selected state-supported ((options)) specifications; and

(b) A list of ((school district)) vendor options which may be purchased at the school district's discretion and expense.

(2) A requirement that each school bus dealer submit a statement of assurance that school districts may purchase school buses at the quoted price for a period of one year.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-212, filed 8/4/95, effective 9/4/95.]


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-213   Purchase of school buses by school districts.   (1) School districts may purchase school buses directly from the school bus dealer who has provided the lowest competitive price quote in each school bus category without regard to RCW 28A.335.190 (((competitive bid law))).

(2) School districts that do not purchase school buses in accordance with subsection (1) of this section may conduct their own competitive bid process in accordance with RCW 28A.335.190. School districts that choose to conduct their own bid shall:

(a) Use vendor bid proposal forms provided by the superintendent of public instruction.

(b) Prepare a summary of all bids received for retention in school district files and submission to the superintendent of public instruction.

(3) School buses which have been acquired by school districts or educational service districts, in accordance with subsection (1) or (2) of this section, are entitled to reimbursement payments for school bus replacement in accordance with this chapter.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-213, filed 8/4/95, effective 9/4/95.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-225   Placement of used school buses on state replacement or depreciation schedules.   A used school bus((es)) shall be placed on the state replacement or depreciation schedule ((in effect at the time of the school bus' manufacture as follows:

(1) For those used school buses manufactured after September 1, 1982, state depreciation payments shall be calculated)) as if it had been ((purchased)) issued a school bus operation permit on the first of September in the year of manufacture, including an estimate by the superintendent of public instruction of:

(((a))) (1) Prior school years total state replacement or depreciation payments;

(((b))) (2) Imputed interest earnings (if purchased by a school district); and

(((c))) (3) Salvage value (if purchased by a school district).

(((2) For those used school buses purchased by a school district that were manufactured prior to September 1, 1982, they will be placed on the depreciation schedule with the following eligible purchase price:

(a) A school bus owned by one school district is purchased by another school district. Such a bus shall be placed on the purchasing district's depreciation schedule at its original appreciated price schedule or at the purchase price paid for the used bus, whichever is less.

(b) A school bus purchased from a private party by a school district. Such a bus shall be placed on the purchasing school district's depreciation schedule at the purchase price paid for the used bus or the depreciable value, whichever is less.

The superintendent of public instruction shall establish that the purchase price of the school bus appropriately reflects its depreciable value.))

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-225, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-240   Calculation of annual state ((depreciation)) replacement payment for district-owned school buses ((purchased after September 1, 1982)).   The superintendent of public instruction shall calculate each school district's annual state ((depreciation)) replacement payment for district-owned school buses ((purchased after September 1, 1982,)) as follows:

(1)(((a))) For district-owned school buses issued a school bus operation permit prior to the fifteenth of the month of the current school year:

(a) Place each school bus in the appropriate school bus category set forth in WAC 392-142-155((:));

(b) ((Add the state-determined purchase price for the appropriate school bus category determined in (a) of this subsection to the state-determined specialized equipment price if any;

(c))) Divide the ((result obtained in (b) of this subsection)) state determined purchase price by the useful lifetime in months as determined in (a) of this subsection; and

(((d))) (c) Multiply the result obtained in (((c))) (b) of this subsection by the number of months remaining in the school year.

(2)(((a))) For school buses issued a school bus operation permit prior to the current school year:

(a) Place each school bus in the appropriate school bus category set forth in WAC 392-142-155((:));

(b) ((Add the state-determined purchase price for the appropriate school bus category determined in (a) of this subsection to the state-determined specialized equipment price if any;

(c))) Divide the ((result obtained in (b) of this subsection)) state determined purchase price by the useful lifetime in months determined in (a) of this subsection;

(((d))) (c) Multiply the result obtained in (((c))) (b) of this subsection by the total number of months the school bus has been on the ((depreciation)) replacement schedule including the months for the current school year;

(((e))) (d) Subtract from the result obtained in (((d))) (c) of this subsection the total school bus ((depreciation)) replacement payments made in prior school years;

(((f))) (e) Subtract from the result obtained in (((d))) (c) of this subsection the imputed interest earnings; and

(((g))) (f) Subtract from the result obtained in (((f))) (e) of this subsection the salvage value of the school bus if the current school year is the final year of the vehicle's useful life.

[Statutory Authority: 1995 1st sp.s. c 10, RCW 28A.150.290 and chapter 28A.160 RCW as amended in ESSB 5408, section 1(6). 95-17-011, 392-142-240, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.150.290 and 28A.160-130-200. 93-13-083 (Order 93-10), 392-142-240, filed 6/18/93, effective 7/19/93. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-240, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-245   Calculation of annual state depreciation payment for contractor-owned school buses ((purchased after September 1, 1982)).   The superintendent of public instruction shall calculate each school district's state depreciation payment for contractor-owned school buses ((purchased after September 1, 1982, by)) as follows:

(1) For contractor-owned school buses issued a school bus operation permit prior to the fifteenth of the month of the current school year((, multiply the state-determined purchase price for the appropriate school bus category by the remaining months of the current school year and divide by twelve and further divide by the useful lifetime for the appropriate school bus category; or)):

(a) Place each bus in the appropriate school bus category set forth in WAC 392-142-155;

(b) Divide the state determined purchase price by the useful lifetime in months determined in (a) of this subsection; and

(c) Multiply the result obtained in (b) of this subsection by the number of months remaining in the school year.

(2) For contractor-owned school buses issued a school bus operation permit in a prior school year:

(a) Place each school bus in the appropriate school bus category set forth in WAC 392-142-155; and

(b) Divide the state-determined purchase price at the time the school bus was purchased by the useful lifetime for the appropriate school bus category set forth in WAC 392-142-155.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-245, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 91-12, filed 7/26/91, effective 8/26/91)

WAC 392-142-250   Allocation of state replacement or depreciation payment ((support -- School buses purchased after September 1, 1982)).   The superintendent of public instruction shall apportion school bus replacement or depreciation payments each school year calculated as follows:

(1) Pursuant to WAC ((392-142-235)) 392-142-240 in:

(a) The September apportionment payment for those school buses issued school bus operating permits in prior school years; or

(b) The first apportionment payment after the issuance of the school bus operating permit for school buses purchased in the current school year; or

(2) Pursuant to WAC ((392-142-240)) 392-142-245 according to the schedule set forth in RCW 28A.510.250.

[Statutory Authority: 1990 c 33. 91-16-011 (Order 91-12), 392-142-250, filed 7/26/91, effective 8/26/91. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-250, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-255   Deposit of ((state support)) payments in transportation vehicle fund.   School districts shall deposit proceeds for the rent, sale, or lease of school buses and ((depreciation)) replacement payments allocated pursuant to WAC ((392-142-235 and)) 392-142-240 in the transportation vehicle fund. School districts shall not deposit school bus depreciation payments allocated pursuant to WAC 392-142-245 in the transportation vehicle fund. For school buses placed on the reimbursement system between September 1, 1975, and August 31, 1980, the superintendent of public instruction shall recover ninety percent of the net proceeds of the sale of such vehicles by deduction from the next annual reimbursement allocation. For school buses placed on the reimbursement system between September 1, 1980, and August 31, 1982, the superintendent of public instruction shall recover one hundred percent of the net proceeds of the sale of such vehicles by deduction from the next annual reimbursement allocation.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-255, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 25, filed 11/19/91, effective 12/20/91)

WAC 392-142-260   Allowable uses of transportation vehicle fund.   School districts shall use moneys in the transportation vehicle fund for the following purposes:

(1) The purchase of ((approved transportation vehicles)) school buses;

(2) Performing major repairs of a school bus receiving prior approval by the superintendent of public instruction. Repairs costing less than twenty-five percent of the current state determined purchase price for that type and category of vehicle shall not be considered a major repair.

(3) The transfer of moneys from the transportation vehicle fund to the debt service fund exclusively for the payment of debt and interest incurred by the transportation vehicle fund shall not be considered to be a transfer of moneys from the transportation vehicle fund to any other fund within the meaning of RCW 28A.160.130.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 91-23-071 (Order 25), 392-142-260, filed 11/19/91, effective 12/20/91. Statutory Authority: Chapter 28A.530 and HB 1224. 91-23-042 (Order 21), 392-142-260, filed 11/14/91, effective 12/15/91. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-260, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending Order 21, filed 1/2/90, effective 2/2/90)

WAC 392-142-270   Disposition of school buses.   Each school district shall notify the superintendent of public instruction ((whenever a school bus is taken out of service as)) of the disposition of a school bus on SPI Form 1020 within thirty days of this action.

[Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-270, filed 1/2/90, effective 2/2/90.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 392-142-090 Definition -- Washington state patrol inspection officer.
WAC 392-142-120 Definition -- Seating reference point.
WAC 392-142-140 Definition -- Transmission.
WAC 392-142-150 Definition -- School bus categories for those buses purchased before September 1, 1982, and after September 1, 1975.
WAC 392-142-170 Definition -- State-determined specialized equipment price.
WAC 392-142-200 Definition -- SPI Form 1029.
WAC 392-142-230 Calculation of annual state depreciation payment for buses purchased after September 1, 1975, and before September 1, 1982.
WAC 392-142-235 Allocation of state depreciation payment for school buses purchased after September 1, 1975, and before September 1, 1982.

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