[Filed August 19, 2019, 4:02 p.m.]

Preproposal statement of inquiry was filed as WSR 19-11-112.

Title of Rule and Other Identifying Information: Chapter 392-141 WAC, Transportation—State allocation for operations.

Hearing Location(s): On October 1, 2019, at 10:00 a.m., at the Wanamaker Meeting Room, Office of Superintendent of Public Instruction (OSPI), 600 South Washington Street, Olympia, WA 98501. Individuals planning to comment should arrive to [at] OSPI by 10:00 a.m.

Date of Intended Adoption: October 4, 2019.

Submit Written Comments to: Patti Enbody, Director, OSPI, Student Transportation, P.O. Box 47200, Olympia, WA 98504-7200, email patti.enbody@k12.wa.us, by October 1, 2019.

Assistance for Persons with Disabilities: Contact Kristin Murphy, phone 360-725-6133, fax 360-754-4201, TTY 360-664-3631, email Kristin.murphy@k12.wa.us, by September 24, 2019.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Districts received a one time legislative salary and benefit increase included in the transportation operations allocation for the 2018-19 school year to reflect the compensation increase with the passage of E2SSB 6362. Districts may not have time to utilize the increase in funds and may face recovery of transportation funds not expended. OSPI is therefore proposing to amend WAC 392-141-410 to allow a one year only carryover of unspent funds for the 2019-20 school year to prevent the recovery of 2018-19 allocation.

Reasons Supporting Proposal: Based upon the passage of E2SSB 6362, this new section will allow districts a one year only carryover of unspent funds for the 201-19 [2018-19] school year to prevent the recovery of 2018-19 allocation.

Statutory Authority for Adoption: RCW 28A.150.290.

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

Name of Agency Personnel Responsible for Drafting and Implementation: Patti Enbody, OSPI, Student Transportation, 360-725-6122; and Enforcement: T. J. Kelly, OSPI, Chief Financial Officer, 360-725-6301.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.030.

Explanation of exemptions: No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed amendment does not have an impact on small business and therefore does not meet the requirements for a statement under RCW 19.85.030 (1) or (2).

State Superintendent

of Public Instruction

AMENDATORY SECTION(Amending WSR 13-17-110, filed 8/21/13, effective 9/21/13)

WAC 392-141-410Recovery of transportation funds.

The superintendent of public instruction shall recover (take back) state pupil transportation allocations that are not expended for the allowable student transportation program costs under the accounting guidance provided by the superintendent. The amount of the recovery shall be calculated as follows:

(1) Determine the district's state allocation for student transportation operations for the school year.

(2) Determine the district's allowable student transportation costs as follows:

(a) Sum the following amounts:

(i) The district's direct expenditures for general fund program 99 pupil transportation, and for educational service district student transportation operations expenditures in program 70 transportation excluding expenditures associated with the regional coordinator and bus driver training grants;

(ii) Allowable indirect charges equal to the expenditures as calculated pursuant to (a)(i) of this subsection times the state recovery rate as calculated in the district annual financial report;

(b) Subtract the district's revenues for the school year for revenue account 7199 (transportation revenues from other districts).

(3) If the allowable program costs are less than the state allocation, OSPI shall recover the difference.

(4) Special rule for the 2019-20 school year only. School districts may carry over state pupil transportation allocations that were not expended for allowable student transportation program costs from the 2018-19 school year to the 2019-20 school year.

Funds transferred into the transportation vehicle fund shall not be included as allowable transportation program costs for recovery calculations.