WSR 05-19-072

PERMANENT RULES

SUPERINTENDENT OF

PUBLIC INSTRUCTION

[ Filed September 16, 2005, 4:34 p.m. , effective October 17, 2005 ]


Purpose: The 2005 Washington state legislature required OSPI to develop a transition process to move the school bus replacement system to a method using a five year average of school bus prices. Additional changes reflect the implementation of the "menu style" bidding process provided in the 2004 Washington state operating budget and made permanent by the passage in the 2005 legislative session of HB 1485. There are additional changes of a technical nature.

Citation of Existing Rules Affected by this Order: Amending WAC 392-142-185, 392-142-213, 392-142-225, 392-142-240, 392-142-245, 392-142-250, 392-142-255, and 392-142-265.

Statutory Authority for Adoption: RCW 28A.150.290.

Adopted under notice filed as WSR 05-15-128 on July 19, 2005.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 6, Amended 8, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 6, Amended 8, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 6, Amended 8, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: September 12, 2005.

Marty Daybell

for Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-8217.2


NEW SECTION
WAC 392-142-171   Definition -- System price.   The system price of an individual school bus is the price used to calculate the replacement system payment in a given school year.

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NEW SECTION
WAC 392-142-172   Definition -- Average price.   The average price for an individual school bus is calculated by adding the current year state-determined purchase price to the total of the previous four years' state-determined purchase prices and dividing by five. School bus categories no longer available or no longer supported use the historic prices for those categories in years when such bus categories were available or supported.

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NEW SECTION
WAC 392-142-174   Definition -- Weighting factor.   The weighting factor for an individual school bus is calculated by subtracting the 2005 average price from the 2005 state-determined purchase price and dividing by two.

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NEW SECTION
WAC 392-142-176   Definition -- 2005 weighted price.   The 2005 weighted price for an individual school bus is calculated by adding the weighting factor to the 2005 average price.

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NEW SECTION
WAC 392-142-178   Definition -- 2006 weighted price.   The 2006 weighted price for an individual school bus is calculated by adding one half the weighting factor to the 2005 system price.

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AMENDATORY SECTION(Amending WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-185   Definition -- ((Imputed)) Assumed interest earnings.   As used in this chapter, "((imputed)) assumed interest earnings" means the sum of interest which is assumed to be earned on moneys assumed to be available in the transportation vehicle fund from state payments and 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.150.290. 03-13-049, 392-142-185, filed 6/12/03, effective 7/13/03. 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 WSR 03-13-049, filed 6/12/03, effective 7/13/03)

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

(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: RCW 28A.150.290. 03-13-049, 392-142-213, filed 6/12/03, effective 7/13/03. 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 WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-225   Placement of used school buses on state replacement or depreciation schedules.   A used school bus shall be placed on the state replacement or depreciation schedule as if it had been 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:

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

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

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

[Statutory Authority: RCW 28A.150.290. 03-13-049, 392-142-225, filed 6/12/03, effective 7/13/03. 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.]


NEW SECTION
WAC 392-142-231   Calculation of system price.   The system price of a school bus shall be calculated as following:

(1) For the 2005-06 school year, the system price for an individual school bus shall be determined by selecting the first condition that applies, as follows:

(a) If a school bus is in its final year on the replacement system, the system price is the state-determined purchase price.

(b) If the average price for the school bus is greater or equal to the 2004 or the 2005 state-determined purchase price, the system price is the average price.

(c) If the average price for the school bus is less than the 2004 state-determined purchase price, the system price is the 2005 weighted price.

(d) If the 2005 weighted price for the school bus is less than the 2004 actual price, the system price is the 2004 actual price.

(2) For the 2006-07 school year, the system price for an individual school bus shall be determined by selecting the first statement that applies, as follows:

(a) If a school bus is in its final year on the replacement system, the system price is the actual price.

(b) If the 2005 system price for the bus was the 2005 average price, the 2006 system price is the 2006 average price.

(c) If the 2006 average price for the school bus is greater or equal to the 2005 system price, the system price is the 2006 average price.

(d) If the 2006 average price for the school bus is less than the 2005 system price, the system price is the 2006 weighted price.

(3) Effective September 1, 2007, the system price for an individual school bus is the state-determined purchase price if a school bus is in its final year on the replacement system. For a school bus not in its final year on the replacement system, the system price is the average price.

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AMENDATORY SECTION(Amending WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-240   Calculation of annual state replacement payment for district-owned school buses.   The superintendent of public instruction shall calculate each school district's annual state replacement payment for district-owned school buses as follows:

(1) For district-owned school buses issued a school bus operation permit prior to the fifteenth of ((the)) any 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) Divide the ((state determined purchase)) system price by the useful lifetime in months as 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 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) Divide the ((state determined purchase)) system price by the useful lifetime in months determined in (a) of this subsection;

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

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

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

(f) Subtract from the result obtained in (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: RCW 28A.150.290. 03-13-049, 392-142-240, filed 6/12/03, effective 7/13/03. 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 WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-245   Calculation of annual state depreciation payment for contractor-owned school buses.   The superintendent of public instruction shall calculate each school district's state depreciation payment for contractor-owned school buses 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:

(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 in months for the appropriate school bus category set forth in WAC 392-142-155((.));

(c) Calculate the total number of months the bus is eligible for depreciation payment in the current school year; and

(d) Multiply the amount calculated in (b) of this subsection by the number of months calculated in (c) of this subsection.

[Statutory Authority: RCW 28A.150.290. 03-13-049, 392-142-245, filed 6/12/03, effective 7/13/03. 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 WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-250   Allocation of state replacement or depreciation payment.   The superintendent of public instruction shall apportion school bus replacement or depreciation payments each school year calculated as follows:

(1) ((Pursuant to WAC 392-142-240 in:)) For school district-owned vehicles:

(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 392-142-245)) For contractor-owned vehicles: According to the schedule set forth in RCW 28A.510.250.

[Statutory Authority: RCW 28A.150.290. 03-13-049, 392-142-250, filed 6/12/03, effective 7/13/03. 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 WSR 03-13-049, filed 6/12/03, effective 7/13/03)

WAC 392-142-255   Deposit of payments in transportation vehicle fund.   School districts shall deposit proceeds for the rent, sale, or lease of school buses and replacement payments ((allocated pursuant to WAC 392-142-240)) for school district-owned vehicles in the transportation vehicle fund. School districts shall not deposit school bus depreciation payments ((allocated pursuant to WAC 392-142-245)) for contractor-owned vehicles 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.150.290. 03-13-049, 392-142-255, filed 6/12/03, effective 7/13/03. 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 WSR 95-17-011, filed 8/4/95, effective 9/4/95)

WAC 392-142-265   Maintenance and operation.   (1) To the extent possible, school districts shall operate vehicles not less than the number of years of useful lifetime now, or hereafter, assigned to the category of vehicles by the superintendent of public instruction.

(2) A school bus that continues to possess a valid operation permit and operates its useful vehicle life shall be considered to be properly maintained in accordance with general accepted maintenance and operation standards. A school bus which does not operate its useful vehicle life shall be considered as not being properly maintained in accordance with generally accepted maintenance and operation standards unless proven otherwise by the school district. Prima facie evidence of such proof shall include ((required changes in the category of bus, or)) unforeseen ((natural)) events which shorten the useful vehicle life, including but not limited to, fire, flood, explosion, storm, earthquake, or volcanic eruption. ((Generally accepted maintenance and operation standards are outlined in the School Bus Maintenance Guide published by the superintendent of public instruction.))

(3) If a district fails to follow generally accepted standards of maintenance and operation or disposes of a bus prior to the end of its useful life time ((as set forth in WAC 392-142-155)), the superintendent of public instruction shall ((penalize the school district by deducting from any future allocations or state payments authorized under this chapter an amount equal to the original cost of the vehicle multiplied by the fraction of the useful lifetime the vehicle failed to operate)) discontinue reimbursement system payments, including recovering the prorated amount of the current year payment according to the number of months in the current year the bus was not operated.

[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, 392-142-265, filed 8/4/95, effective 9/4/95. Statutory Authority: RCW 28A.41.170 and 28A.41.540. 90-02-077 (Order 21), 392-142-265, filed 1/2/90, effective 2/2/90.]

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