Original Notice.

     Preproposal statement of inquiry was filed as WSR 08-07-053.

     Title of Rule and Other Identifying Information: Chapter 392-142 WAC, Transportation -- Replacement and depreciation allocation, revisions to this chapter need to be made in response to legislative changes regarding the school bus reimbursement process.

     Hearing Location(s): Office of Superintendent of Public Instruction, Brouillet Conference Room, 600 South Washington Street, Olympia, WA 98504, on August 26, 2008, at 9:30 a.m.

     Date of Intended Adoption: August 27, 2008.

     Submit Written Comments to: Allan J. Jones, Director, P.O. Box 47200, Olympia, WA 98504-7200, e-mail ajjones@ospi.wednet.edu, fax (360) 586-6124, by August 25, 2008.

     Assistance for Persons with Disabilities: Contact Penny Coker by August 25, 2008, TTY (360) 664-3631 or (360) 725-6142.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The 2005 Washington state legislature allowed the office of the superintendent of public instruction to use a two-year transition system for migration of the school bus replacement system to a model based on a five-year average of school bus prices. The current WAC language refers to this transition process. As of September 2007, that transition no longer exists. Removing the language referring to the transition process will result in improved clarity.

     Also, clarified the calculation of the final payment of a bus if the school district disposes of the bus prior to the end of its useful life.

     Statutory Authority for Adoption: RCW 28A.150.290.

     Statute Being Implemented: RCW 28A.160.195.

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

     Name of Proponent: [Superintendent of public instruction], governmental.

     Name of Agency Personnel Responsible for Drafting: Charlie Schreck, Office of Superintendent of Public Instruction, (360) 725-6136; Implementation: Martin Mueller, Office of Superintendent of Public Instruction, (360) 725-5175; and Enforcement: Allan J. Jones, Office of Superintendent of Public Instruction, (360) 725-6120.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. These revisions only apply to public school districts.

     A cost-benefit analysis is not required under RCW 34.05.328. These revisions only apply to public school districts.

July 7, 2008

Dr. Terry Bergeson

Superintendent of

Public Instruction

OTS-1729.1

AMENDATORY SECTION(Amending WSR 05-19-072, filed 9/16/05, effective 10/17/05)

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.

[Statutory Authority: RCW 28A.150.290. 05-19-072, § 392-142-231, filed 9/16/05, effective 10/17/05.]

     (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 unforeseen events which shorten the useful vehicle life, including but not limited to, fire, flood, explosion, storm, earthquake, or volcanic eruption.

     (3) If a district fails to follow generally accepted standards of maintenance and operation or, if a district disposes of a bus prior to the end of its useful life time, the superintendent of public instruction shall discontinue reimbursement system payments, including ((recovering)) adjusting the ((prorated)) amount of the current year payment ((according to the number of months in the current year the bus was not operated)) to be the final payment by:

     (a) Determining the total number of months the bus operated;

     (b) Dividing the number of months the bus operated by the "useful life" of the bus, in months. Multiply the result by the "state-determined purchase price" for the current year, than subtract previous "total school bus replacement payments," "assumed interest earnings," and the "salvage value."

[Statutory Authority: RCW 28A.150.290. 05-19-072, § 392-142-265, filed 9/16/05, effective 10/17/05. 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.]

     The following sections of the Washington Administrative Code are repealed:

WAC 392-142-174	Definition -- Weighting factor.
WAC 392-142-176	Definition -- 2005 weighted price.
WAC 392-142-178	Definition -- 2006 weighted price.

© Washington State Code Reviser's Office