BP BHEAD INT S

AN ACT Relating to the department of education; amending RCW 28A.300.040, 28A.300.060, 28A.300.070, 28A.505.020, 28A.505.090, 28A.505.100, 28A.505.110, 28A.505.120, 28A.505.130, 28A.505.140, 28A.505.170, 28A.505.180, 28A.505.200, 28A.510.250, 28A.510.260, and 84.52.0531; reenacting and amending RCW 43.17.010 and 43.17.020; adding a new section to chapter 41.06 RCW; adding a new section to chapter 28A.150 RCW; adding a new chapter to Title 43 RCW; creating new sections; repealing RCW 28A.300.010, 28A.300.020, and 28A.300.030; making an appropriation; and providing contingent effective dates.

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

NEW SECTION. Sec. 1. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of education.

(2) "Secretary" means the secretary of education.

NEW SECTION. Sec. 2. There is hereby created a department of state government to be known as the department of education. The department shall be vested with all powers and duties transferred to it under this chapter and such other powers and duties as may be authorized by law.

NEW SECTION. Sec. 3. The executive head and appointing authority of the department shall be the secretary. The secretary shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The secretary shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. If a vacancy occurs in the position while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate.

NEW SECTION. Sec. 4. It is the intent of the legislature wherever possible to place the internal affairs of the department under the control of the secretary in order that the secretary may institute therein the flexible, alert, and intelligent management of its business that changing contemporary circumstances require. Therefore, whenever the secretary's authority is not specifically limited by law, the secretary shall have complete charge and supervisory powers over the department. The secretary may create such administrative structures as the secretary considers appropriate, except as otherwise specified by law. The secretary may employ such assistants and personnel as may be necessary for the general administration of the department. This employment shall be in accordance with the state civil service law, chapter 41.06 RCW, except as otherwise provided.

NEW SECTION. Sec. 5. The department of education may be subdivided into divisions. Except as otherwise specified or as federal requirements may differently require, these divisions shall be established and organized in accordance with plans to be prepared by the secretary and approved by the governor. In preparing such plans, the secretary shall endeavor to promote efficient public management, to improve programs, and to take full advantage of the economies, both fiscal and administrative, to be gained from the consolidation of functions and agencies under this chapter.

NEW SECTION. Sec. 6. The secretary shall appoint a deputy secretary, a department personnel director, and such assistant secretaries as may be needed to administer the department. The deputy secretary shall have charge and general supervision of the department in the absence or disability of the secretary and, in case of a vacancy in the office of secretary, shall continue in charge of the department until a successor is appointed and qualified, or until the governor appoints an acting secretary.

NEW SECTION. Sec. 7. Any power or duty vested in or transferred to the secretary by law, or executive order, may be delegated by the secretary to the deputy secretary or to any other assistant or subordinate; but the secretary shall be responsible for the official acts of the officers and employees of the department.

NEW SECTION. Sec. 8. In furtherance of the policy of the state to cooperate with the federal government in all of the programs under the jurisdiction of the department, such rules as may become necessary to entitle the state to participate in federal funds may be adopted, unless expressly prohibited by law. Any internal reorganization carried out under the terms of this chapter shall meet federal requirements that are a necessary condition to state receipt of federal funds. Any section or provision of law dealing with the department that may be susceptible to more than one construction shall be interpreted in favor of the construction most likely to comply with federal laws entitling this state to receive federal funds for the various programs of the department. If any law dealing with the department is ruled to be in conflict with federal requirements which are a prescribed condition of the allocation of federal funds to the state, or to any departments or agencies thereof, the conflicting part is declared to be inoperative solely to the extent of the conflict.

NEW SECTION. Sec. 9. A new section is added to chapter 41.06 RCW to read as follows:

In addition to the exemptions under RCW 41.06.070, the provisions of this chapter shall not apply in the department of education to the secretary, the secretary's personal secretary, the deputy secretary, all division secretaries and assistant secretaries, and one confidential secretary for each of these officers.

NEW SECTION. Sec. 10. Except as provided in section 16 of this act, the powers, duties, and functions of the office of the superintendent of public instruction are hereby transferred to the department of education. All references to the office of the superintendent of public instruction or the superintendent of public instruction shall mean the department of education or secretary of education.

NEW SECTION. Sec. 11. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of the superintendent of public instruction pertaining to the functions transferred in section 10 of this act shall be delivered to the custody of the department of education. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in connection with the powers, duties, and functions transferred shall be made available to the department of education. All funds, credits, or other assets held in connection with the powers, duties, and functions transferred shall be assigned to the department of education.

Any appropriations made in connection with the powers, duties, and functions transferred in section 10 of this act shall, on the effective date of this section, be transferred and credited to the department of education.

Whenever any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred in section 10 of this act, or as to the powers, duties, and functions transferred in section 10 of this act, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 12. All rules and all pending business before any agency of state government pertaining to the powers, duties, and functions transferred in section 10 of this act shall be continued and acted upon by the department of education. All existing contracts and obligations shall remain in full force and shall be performed by the department of education.

NEW SECTION. Sec. 13. The transfer of the powers, duties, and functions in section 10 of this act shall not affect the validity of any act performed by an employee before the effective date of this section.

NEW SECTION. Sec. 14. If apportionments of budgeted funds are required because of the transfers directed by sections 11 through 13 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 15. Nothing contained in sections 11 through 14 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 16. The powers, duties, and functions of the office of the superintendent of public instruction pertaining to budgeting and apportionment of funds are hereby transferred to the office of financial management.

NEW SECTION. Sec. 17. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the office of the superintendent of public instruction pertaining to the functions transferred in section 16 of this act shall be delivered to the custody of the office of financial management. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed in connection with the powers, duties, and functions transferred in section 16 of this act shall be made available to the office of financial management. All funds, credits, or other assets held in connection with the powers, duties, and functions transferred in section 16 of this act shall be assigned to the office of financial management.

Any appropriations made in connection with the powers, duties, and functions transferred in section 16 of this act shall, on the effective date of this section, be transferred and credited to the office of financial management.

Whenever any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred in section 16 of this act, or as to the powers, duties, and functions transferred in section 16 of this act, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 18. All rules and all pending business before any agency of state government pertaining to the powers, duties, and functions transferred in section 16 of this act shall be continued and acted upon by the office of financial management. All existing contracts and obligations shall remain in full force and shall be performed by the office of financial management.

NEW SECTION. Sec. 19. The transfer of the powers, duties, and functions in section 16 of this act shall not affect the validity of any act performed by an employee before the effective date of this section.

NEW SECTION. Sec. 20. If apportionments of budgeted funds are required because of the transfers directed by sections 17 through 19 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 21. Nothing contained in sections 17 through 20 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

Sec. 22. RCW 43.17.010 and 1993 sp.s. c 2 s 16, 1993 c 472 s 17, and 1993 c 280 s 18 are each reenacted and amended to read as follows:

There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fish and wildlife, (6) the department of transportation, (7) the department of licensing, (8) the department of general administration, (9) the department of community, trade, and economic development, (10) the department of veterans affairs, (11) the department of revenue, (12) the department of retirement systems, (13) the department of corrections, ((~~and~~)) (14) the department of health, ((~~and~~)) (15) the department of financial institutions, and (16) the department of education, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.

Sec. 23. RCW 43.17.020 and 1993 sp.s. c 2 s 17, 1993 c 472 s 18, and 1993 c 280 s 19 are each reenacted and amended to read as follows:

There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fish and wildlife, (6) the secretary of transportation, (7) the director of licensing, (8) the director of general administration, (9) the director of community, trade, and economic development, (10) the director of veterans affairs, (11) the director of revenue, (12) the director of retirement systems, (13) the secretary of corrections, ((~~and~~)) (14) the secretary of health, ((~~and~~)) (15) the director of financial institutions, and (16) the secretary of education.

Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.

Sec. 24. RCW 28A.300.040 and 1992 c 198 s 6 are each amended to read as follows:

In addition to any other powers and duties as provided by law, the powers and duties of the ((~~superintendent of public instruction~~)) secretary shall be:

(1) ((~~To have supervision over all matters pertaining to the public schools of the state.~~

~~(2)~~)) To report to the governor and the legislature such information and data as may be required for the management and improvement of the schools.

((~~(3)~~)) (2) To prepare and have printed such forms, registers, courses of study, and rules ((~~and regulations~~)) for the government of the common schools, ((~~questions prepared for the examination of persons as provided for in RCW 28A.305.130(9),~~)) and such other material and books as may be necessary for the discharge of the duties of teachers and officials charged with the administration of the laws relating to the common schools, and to distribute the same to educational service district superintendents.

((~~(4)~~)) (3) To travel, without neglecting his or her other official duties as ((~~superintendent of public instruction~~)) secretary, for the purpose of attending educational meetings or conventions, of visiting schools, of consulting educational service district superintendents or other school officials.

((~~(5)~~)) (4) To prepare and from time to time to revise a manual of the Washington state common school code, copies of which shall be provided in such numbers as determined by the ((~~superintendent of public instruction~~)) secretary at no cost to those public agencies within the common school system and which shall be sold at approximate actual cost of publication and distribution per volume to all other public and nonpublic agencies or individuals, said manual to contain Titles 28A and 28C RCW, rules ((~~and regulations~~)) related to the common schools, and such other matter as the ((~~state superintendent~~)) secretary or the state board of education shall determine. Proceeds of the sale of such code shall be transmitted to the public printer who shall credit the ((~~state superintendent's~~)) secretary's account within the state printing plant revolving fund by a like amount.

((~~(6)~~)) (5) To act as ex officio member and the chief executive officer of the state board of education.

((~~(7)~~)) (6) To file all papers, reports and public documents transmitted to the ((~~superintendent~~)) secretary by the school officials of the several counties or districts of the state, each year separately. Copies of all papers filed in the ((~~superintendent's~~)) secretary's office, and the ((~~superintendent's~~)) secretary's official acts, may, or upon request, shall be certified by the ((~~superintendent~~)) secretary and attested by the ((~~superintendent's~~)) secretary's official seal, and when so certified shall be evidence of the papers or acts so certified to.

(((8) To require annually, on or before the 15th day of August, of the president, manager, or principal of every educational institution in this state, a report as required by the superintendent of public instruction; and it is the duty of every president, manager or principal, to complete and return such forms within such time as the superintendent of public instruction shall direct.

~~(9)~~)) (7) To keep in the ((~~superintendent's~~)) secretary's office a record of all teachers receiving certificates to teach in the common schools of this state.

((~~(10)~~)) (8) To issue certificates as provided by law.

((~~(11)~~)) (9) To keep in the ((~~superintendent's~~)) secretary's office at the capital of the state, all books and papers pertaining to the business of the ((~~superintendent's~~)) secretary's office, and to keep and preserve in the ((~~superintendent's~~)) secretary's office a complete record of statistics((~~, as well as a record of the meetings of the state board of education~~)).

((~~(12)~~)) (10) With the assistance of the office of the attorney general, to decide all points of law which may be submitted to the ((~~superintendent~~)) secretary in writing by any educational service district superintendent, or that may be submitted to the ((~~superintendent~~)) secretary by any other person, upon appeal from the decision of any educational service district superintendent; and the ((~~superintendent~~)) secretary shall publish his or her rulings and decisions from time to time for the information of school officials and teachers; and the ((~~superintendent's~~)) secretary's decision shall be final unless set aside by a court of competent jurisdiction.

((~~(13)~~)) (11) To administer oaths and affirmations in the discharge of the ((~~superintendent's~~)) secretary's official duties.

(((14) To deliver to his or her successor, at the expiration of the superintendent's term of office, all records, books, maps, documents and papers of whatever kind belonging to the superintendent's office or which may have been received by the superintendent's for the use of the superintendent's office.

~~(15)~~)) (12) To administer family services and programs to promote the state's policy as provided in RCW 74.14A.025.

((~~(16)~~)) (13) To perform such other duties as may be required by law.

Sec. 25. RCW 28A.300.060 and 1991 c 116 s 3 are each amended to read as follows:

The ((~~superintendent of public instruction~~)) director of financial management and the state auditor jointly, and in cooperation with the senate and house committees on education, shall conduct appropriate studies and adopt classifications or revised classifications under RCW 28A.505.100, defining what expenditures shall be charged to each budget class including administration. The studies and classifications shall be published in the form of a manual or revised manual, suitable for use by the governing bodies of school districts, by the ((~~superintendent of public instruction~~)) office of financial management, and by the legislature.

Sec. 26. RCW 28A.300.070 and 1969 ex.s. c 223 s 28A.02.100 are each amended to read as follows:

The state of Washington and/or any school district is hereby authorized to receive federal funds made or hereafter made available by acts of congress for the assistance of school districts in providing physical facilities and/or maintenance and operation of schools, or for any other educational purpose, according to provisions of such acts, and the ((~~state superintendent of public instruction~~)) director of financial management shall represent the state in the receipt and administration of such funds.

Sec. 27. RCW 28A.505.020 and 1990 c 33 s 416 are each amended to read as follows:

All school districts must utilize the following methods of revenue and expenditure recognition in budgeting, accounting and financial reporting:

(1) Recognize revenue as defined in RCW 28A.505.010(1) for all funds: PROVIDED, That school districts that elect the cash basis of expenditure recognition under subsection (2) of this section shall recognize revenue on the cash basis.

(2) Recognition of expenditures for all funds shall be on the accrual basis: PROVIDED, That school districts with under one thousand full time equivalent students for the preceding fiscal year may make a uniform election for all funds, except debt service funds, to be on the cash basis of expenditure recognition. Notification of such election shall be given to the ((~~state superintendent of public instruction~~)) director of financial management in the budget of the school district and shall remain in effect for one full fiscal year.

Sec. 28. RCW 28A.505.090 and 1983 c 59 s 6 are each amended to read as follows:

Every school district budget shall be prepared, submitted and adopted in the format prescribed by the office of ((~~the superintendent of public instruction~~)) financial management. The budget classifications contained in said format shall be in accordance with the accounting manual for public school districts, published by the office of ((~~the superintendent of public instruction~~)) financial management and the office of the state auditor. Budgets prepared and adopted in a format other than that prescribed by the office of ((~~the superintendent of public instruction~~)) financial management shall not be official and will have no legal effect.

Sec. 29. RCW 28A.505.100 and 1990 c 33 s 420 are each amended to read as follows:

The budget shall set forth the estimated revenues for the ensuing fiscal year, the estimated revenues for the fiscal year current at the time of budget preparation, the actual revenues for the last completed fiscal year, and the reserved and unreserved fund balances for each year. The estimated revenues from all sources for the ensuing fiscal year shall not include any revenue not anticipated to be available during that fiscal year: PROVIDED, That school districts, pursuant to RCW 28A.505.110 can be granted permission by the ((~~superintendent of public instruction~~)) office of financial management to include as revenues in their budgets, receivables collectible in future fiscal years.

The budget shall set forth by detailed items or classes the estimated expenditures for the ensuing fiscal year, the estimated expenditures for the fiscal year current at the time of budget preparation, and the actual expenditures for the last completed fiscal year. Total salary amounts, full-time equivalents, and the high, low, and average annual salaries, shall be displayed by job classification within each budget classification. If individual salaries within each job classification are not displayed, districts shall provide the individual salaries together with the title or position of the recipient and the total amounts of salary under each budget class upon request. Salary schedules shall be displayed. In districts where negotiations have not been completed, the district may budget the salaries at the current year's rate and restrict fund balance for the amount of anticipated increase in salaries, so long as an explanation shall be attached to the budget on such restriction of fund balance.

Sec. 30. RCW 28A.505.110 and 1990 c 33 s 421 are each amended to read as follows:

When a school district board is unable to prepare a budget or budget extension pursuant to RCW 28A.505.170 or 28A.505.180 in which the estimated revenues for the budgeted fiscal year plus the estimated fund balance at the beginning of the budgeted fiscal year less the ending reserved fund balance for the budgeted fiscal year do not at least equal the estimated expenditures for the budgeted fiscal year, the school district board may deliver a petition in writing, at least twenty days before the budget or budget extension is scheduled for adoption, to the ((~~superintendent of public instruction~~)) office of financial management requesting permission to include receivables collectible in future years, in order to balance the budget. If such permission is granted, it shall be in writing, and it shall contain conditions, binding on the district, designed to improve the district's financial condition. Any budget or appropriation adopted by the board of directors without written permission from the ((~~superintendent of public instruction~~)) office of financial management that contains estimated expenditures in excess of the total of estimated revenue for the budgeted fiscal year plus estimated fund balance at the beginning of the budgeted fiscal year less ending reserve fund balance for the budgeted fiscal year shall be null and void and shall not be considered an appropriation.

Sec. 31. RCW 28A.505.120 and 1975‑'76 2nd ex.s. c 118 s 12 are each amended to read as follows:

If a local school district fails to comply with any binding restrictions issued by the ((~~superintendent of public instruction~~)) secretary or by the director of financial management, the allocation of state funds for support of the local school district may be withheld, pending an investigation of the reason for such noncompliance by the office of ((~~the superintendent of public instruction~~)) financial management. Written notice of the intent to withhold state funds, with reasons stated for this action, shall be made to the school district by the office of ((~~the superintendent of public instruction~~)) financial management before any portion of the state allocation is withheld.

Sec. 32. RCW 28A.505.130 and 1983 c 59 s 9 are each amended to read as follows:

For each fund contained in the school district budget the estimated expenditures for the budgeted fiscal year must not be greater than the total of the estimated revenues for the budgeted fiscal year, the estimated fund balance at the beginning of the budgeted fiscal year less the estimated reserve fund balance at the end of the budgeted fiscal year, and the projected revenue from receivables collectible on future years as approved by the ((~~superintendent of public instruction~~)) office of financial management for inclusion in the budget.

The proceeds of any interfund loan must not be used to balance the budget of the borrowing fund.

Sec. 33. RCW 28A.505.140 and 1990 c 33 s 422 are each amended to read as follows:

(1) Notwithstanding any other provision of law, the ((~~superintendent of public instruction is hereby directed to promulgate such rules and regulations as will insure~~)) office of financial management shall adopt rules to ensure proper budgetary procedures and practices, including monthly financial statements consistent with the provisions of RCW 43.09.200((,)) and this chapter.

(2) If the ((~~superintendent of public instruction~~)) office of financial management determines upon a review of the budget of any district that said budget does not comply with the budget procedures established by this chapter or by rules ((~~and regulations promulgated by the superintendent of public instruction~~)) adopted by the office of financial management, or the provisions of RCW 43.09.200, the ((~~superintendent~~)) office of financial management shall give written notice of this determination to the board of directors of the local school district.

(3) The local school district, notwithstanding any other provision of law, shall, within thirty days from the date the ((~~superintendent of public instruction~~)) office of financial management issues a notice pursuant to subsection (2) of this section, submit a revised budget which meets the requirements of RCW 43.09.200, this chapter, and the rules ((~~and regulations of the superintendent of public instruction~~)) of the office of financial management: PROVIDED, That if the district fails or refuses to submit a revised budget which in the determination of the ((~~superintendent of public instruction~~)) office of financial management meets the requirements of RCW 43.09.200, this chapter, and the rules ((~~and regulations of the superintendent of public instruction~~)) of the office of financial management, the matter shall be submitted to the state board of education, which board shall meet and adopt a financial plan which shall be in effect until a budget can be adopted and submitted by the district in compliance with this section.

Sec. 34. RCW 28A.505.170 and 1990 c 33 s 424 are each amended to read as follows:

(1) Notwithstanding any other provision of this chapter, upon the happening of any emergency in first class school districts caused by fire, flood, explosion, storm, earthquake, epidemic, riot, insurrection, or for the restoration to a condition of usefulness of any school district property, the usefulness of which has been destroyed by accident, and no provision has been made for such expenditures in the adopted appropriation, the board of directors, upon the adoption by the vote of the majority of all board members of a resolution stating the facts constituting the emergency, may make an appropriation therefor without notice or hearing.

(2) Notwithstanding any other provision of this chapter, if in first class districts it becomes necessary to increase the amount of the appropriation, and if the reason is not one of the emergencies specifically enumerated in subsection (1) of this section, the school district board of directors, before incurring expenditures in excess of the appropriation, shall adopt a resolution stating the facts and the estimated amount of appropriation to meet it.

Such resolution shall be voted on at a public meeting, notice to be given in the manner provided in RCW 28A.505.050. Its introduction and passage shall require the vote of a majority of all members of the school district board of directors.

Any person may appear at the meeting at which the appropriation resolution is to be voted on and be heard for or against the adoption thereof.

Copies of all adopted appropriation resolutions shall be filed with the educational service district who shall forward one copy each to the office of ((~~the superintendent of public instruction~~)) financial management. One copy shall be retained by the educational service district.

Sec. 35. RCW 28A.505.180 and 1990 c 33 s 425 are each amended to read as follows:

Notwithstanding any other provision of this chapter, if a second class school district needs to increase the amount of the appropriation from any fund for any reason, the school district board of directors, before incurring expenditures in excess of appropriation, shall adopt a resolution stating the facts and estimating the amount of additional appropriation needed.

Such resolution shall be voted on at a public meeting, notice to be given in the manner provided by RCW 28A.505.050. Its introduction and passage shall require the vote of a majority of all members of the school district board of directors.

Any person may appear at the meeting at which the appropriation resolution is to be voted on and be heard for or against the adoption thereof.

Upon passage of the appropriation resolution the school district shall petition the ((~~superintendent of public instruction~~)) office of financial management for approval to increase the amount of its appropriations in the manner prescribed in rules ((~~and regulations~~)) for such approval by the ((~~superintendent~~)) office of financial management.

Copies of all appropriation resolutions approved by the ((~~superintendent of public instruction~~)) office of financial management shall be filed by the office of ((~~the superintendent of public instruction~~)) financial management with the educational service district.

Sec. 36. RCW 28A.505.200 and 1990 c 103 s 1 are each amended to read as follows:

Each school district that receives federal moneys from or through the ((~~superintendent of public instruction~~)) office of financial management 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~~)) office of financial management 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~~)) office of financial management 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~~)) office of financial management 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.

Sec. 37. RCW 28A.510.250 and 1990 c 33 s 426 are each amended to read as follows:

On or before the last business day of September ((~~1969~~)) 1995 and each month thereafter, the ((~~superintendent of public instruction~~)) office of financial management shall apportion from the state general fund to the several educational service districts of the state the proportional share of the total annual amount due and apportionable to such educational service districts for the school districts thereof as follows:

September ..................................... 9%

October........................................ 9%

November ................................... 5.5%

December ..................................... 9%

January........................................ 9%

February ..................................... 9%

March.......................................... 9%

April.......................................... 9%

May ........................................ 5.5%

June ........................................ 6.0%

July ......................... ............. 10.0%

August .................................. 10.0%

The annual amount due and apportionable shall be the amount apportionable for all apportionment credits estimated to accrue to the schools during the apportionment year beginning September first and continuing through August thirty-first. Appropriations made for school districts for each year of a biennium shall be apportioned according to the schedule set forth in this section for the fiscal year starting September 1st of the then calendar year and ending August 31st of the next calendar year. The apportionment from the state general fund for each month shall be an amount which will equal the amount due and apportionable to the several educational service districts during such month: PROVIDED, That any school district may petition the ((~~superintendent of public instruction~~)) office of financial management for an emergency advance of funds which may become apportionable to it but not to exceed ten percent of the total amount to become due and apportionable during the school districts apportionment year. The ((~~superintendent of public instruction~~)) office of financial management shall determine if the emergency warrants such advance and if the funds are available therefor. If the ((~~superintendent~~)) office of financial management determines in the affirmative, ((~~he or she~~)) the office of financial management may approve such advance and, at the same time, add such an amount to the apportionment for the educational service district in which the school district is located: PROVIDED, That the emergency advance of funds and the interest earned by school districts on the investment of temporary cash surpluses resulting from obtaining such advance of state funds shall be deducted by the ((~~superintendent of public instruction~~)) office of financial management from the remaining amount apportionable to said districts during that apportionment year in which the funds are advanced.

Sec. 38. RCW 28A.510.260 and 1990 c 33 s 427 are each amended to read as follows:

Upon receiving the certificate of apportionment from the ((~~superintendent of public instruction~~)) office of financial management the educational service district superintendent shall promptly apportion to the school districts of his or her educational service district the amounts then due and apportionable to such districts as certified by the ((~~superintendent of public instruction~~)) office of financial management.

Sec. 39. RCW 84.52.0531 and 1993 c 465 s 1 are each amended to read as follows:

The maximum dollar amount which may be levied by or for any school district for maintenance and operation support under the provisions of RCW 84.52.053 shall be determined as follows:

(1) For excess levies for collection in calendar year 1992, the maximum dollar amount shall be calculated pursuant to the laws and rules in effect in November 1991.

(2) For the purpose of this section, the basic education allocation shall be determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350: PROVIDED, That when determining the basic education allocation under subsection (4) of this section, nonresident full time equivalent pupils who are participating in a program provided for in chapter 28A.545 RCW or in any other program pursuant to an interdistrict agreement shall be included in the enrollment of the resident district and excluded from the enrollment of the serving district.

(3) For excess levies for collection in calendar year 1993 and thereafter, the maximum dollar amount shall be the sum of (a) and (b) of this subsection minus (c) of this subsection:

(a) The district's levy base as defined in subsection (4) of this section multiplied by the district's maximum levy percentage as defined in subsection (5) of this section;

(b) In the case of nonhigh school districts only, an amount equal to the total estimated amount due by the nonhigh school district to high school districts pursuant to chapter 28A.545 RCW for the school year during which collection of the levy is to commence, less the increase in the nonhigh school district's basic education allocation as computed pursuant to subsection (1) of this section due to the inclusion of pupils participating in a program provided for in chapter 28A.545 RCW in such computation;

(c) The maximum amount of state matching funds under RCW 28A.500.010 for which the district is eligible in that tax collection year.

(4) For excess levies for collection in calendar year 1993 and thereafter, a district's levy base shall be the sum of allocations in (a) through (c) of this subsection received by the district for the prior school year, including allocations for compensation increases, plus the sum of such allocations multiplied by the percent increase per full time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year and divided by fifty-five percent. A district's levy base shall not include local school district property tax levies or other local revenues, or state and federal allocations not identified in (a) through (c) of this subsection.

(a) The district's basic education allocation as determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350;

(b) State and federal categorical allocations for the following programs:

(i) Pupil transportation;

(ii) Handicapped education;

(iii) Education of highly capable students;

(iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

(v) Food services; and

(vi) State-wide block grant programs; and

(c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

(5) For excess levies for collection in calendar year 1993 and thereafter, a district's maximum levy percentage shall be determined as follows:

(a) Multiply the district's maximum levy percentage for the prior year by the district's levy base as determined in subsection (4) of this section;

(b) Reduce the amount in (a) of this subsection by the total estimated amount of any levy reduction funds as defined in subsection (6) of this section which are to be allocated to the district for the current school year;

(d) The percentage in (c) of this subsection or twenty percent, whichever is greater, shall be the district's maximum levy percentage for levies collected in that calendar year; and

(e) For levies to be collected in calendar years 1994 and 1995 the maximum levy rate shall be the district's maximum levy percentage for 1993 plus four percent reduced by any levy reduction funds. For levies collected in 1996, the prior year shall mean 1993.

(6) "Levy reduction funds" shall mean increases in state funds from the prior school year for programs included under subsection (4) of this section: (a) That are not attributable to enrollment changes, compensation increases, or inflationary adjustments; and (b) that are or were specifically identified as levy reduction funds in the appropriations act. If levy reduction funds are dependent on formula factors which would not be finalized until after the start of the current school year, the ((~~superintendent of public instruction~~)) office of financial management shall estimate the total amount of levy reduction funds by using prior school year data in place of current school year data. Levy reduction funds shall not include moneys received by school districts from cities or counties.

(7) For the purposes of this section, "prior school year" shall mean the most recent school year completed prior to the year in which the levies are to be collected.

(8) For the purposes of this section, "current school year" shall mean the year immediately following the prior school year.

(9) The ((~~superintendent of public instruction~~)) office of financial management shall develop rules ((~~and regulations~~)) and inform school districts of the pertinent data necessary to carry out the provisions of this section.

NEW SECTION. Sec. 40. A new section is added to chapter 28A.150 RCW to read as follows:

Unless the context clearly requires otherwise, as used in this title, "secretary" means the secretary of education.

NEW SECTION. Sec. 41. The following acts or parts of acts are each repealed:

(1) RCW 28A.300.010 and 1990 c 33 s 250 & 1969 ex.s. c 223 s 28A.03.010;

(2) RCW 28A.300.020 and 1969 ex.s. c 223 s 28A.03.020; and

(3) RCW 28A.300.030 and 1975 1st ex.s. c 275 s 46 & 1971 ex.s. c 282 s 29.

NEW SECTION. Sec. 42. It is the intent of this act that the secretary of education be confirmed by March 15, 1995, and that such deputy and assistant secretaries of education as necessary be appointed thereafter to facilitate the orderly establishment of the department of education.

NEW SECTION. Sec. 43. Sections 1 through 8 and 10 of this act shall constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 44. Sections 9, 42, and 46 of this act shall take effect January 1, 1995, if the proposed amendment to Article III of the state Constitution abolishing the office of the superintendent of public instruction is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not so approved and ratified, this act is void in its entirety.

NEW SECTION. Sec. 45. Sections 1 through 8, 10 through 41, and 43 through 45 of this act shall take effect July 1, 1995, if the proposed amendment to Article III of the state Constitution abolishing the office of the superintendent of public instruction is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not so approved and ratified, this act is void in its entirety.

NEW SECTION. Sec. 46. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the general fund to the office of financial management for costs incidental to the secretary of education as provided for in this act.