Z-1464               _______________________________________________

                                                   HOUSE BILL NO. 2357

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Representatives Peery, Betrozoff, G. Fisher and Holland; by request of Superintendent of Public Instruction

Read first time 1/10/90 and referred to Committees on Education/Appropriations.

AN ACT Relating to school district financial responsibility; and adding a new section to Title 28A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to Title 28A RCW to read as follows:

          Each school district that receives federal moneys from or through the superintendent of public instruction shall comply with applicable federal requirements and shall repay expenditures subsequently disallowed by the federal government together with such interest as may be assessed by the federal government.  Once a federal disallowance determination, decision, or order becomes final respecting federal moneys expended by a school district, the superintendent of public instruction may withhold all or a portion of the annual basic education allocation amounts otherwise due and apportionable to the school district as necessary to facilitate payment of the principal and interest to the federal government.  The superintendent of public instruction may pay withheld basic education allocation moneys:

          (1) To the school district before the close of the biennium and following the school district's repayment of moneys due the federal government, or the school district's commitment to an acceptable repayment plan, or both; or

          (2) To the federal government, subject to the reappropriation of the withheld basic education allocation, moneys for the purpose of payment to the federal government.

          No withholding of basic education allocation moneys may occur under this subsection until the superintendent of public instruction has first determined that the withholding should not substantially impair the school district's financial ability to provide the basic education program offerings required by statute.