BILL REQ. #:  Z-0378.1 

Read first time 01/26/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to school bus depreciation; amending RCW 28A.160.200; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 28A.160.200 and 1995 1st sp.s. c 10 s 2 are each amended to read as follows:
     (1) The superintendent shall annually develop a reimbursement schedule to pay districts for the cost of ((student transportation vehicles)) school buses purchased ((after September 1, 1982)) by school districts. While it is the responsibility of each district to select and pay for each student transportation vehicle purchased by the district, each district shall be paid ((a sum based on the category of vehicle, anticipated lifetime of vehicles of this category, and state)) the reimbursement rate ((for the category plus inflation as recognized by the reimbursement schedule established in this section as set by the superintendent)) of each at the end of the anticipated lifetime of vehicles of this category, less any reimbursement payments previously paid by the state for the bus. Categories and reimbursement rates of vehicles shall be those established under RCW 28A.160.195. The ((accumulated value of the payments and the potential investment return thereon)) reimbursement rate shall be designed to be equal to the replacement cost of the vehicle less its salvage value at the end of its anticipated lifetime. ((The superintendent shall revise at least annually the reimbursement payments based on the current and anticipated future cost of comparable categories of transportation equipment.)) Reimbursements to school districts for approved transportation equipment shall be placed in a separate transportation vehicle fund established for each school district under RCW 28A.160.130. However, educational service districts providing student transportation services pursuant to RCW 28A.310.180(4) and receiving moneys generated pursuant to this section shall establish and maintain a separate transportation vehicle account in the educational service district's general expense fund for the purposes and subject to the conditions under RCW 28A.160.130 and 28A.320.300.
     (2) To the extent possible, districts shall operate vehicles acquired under this section not less than the number of years or useful lifetime now, or hereafter, assigned to the category of vehicles by the superintendent. School districts shall properly maintain the transportation equipment acquired under the provisions of this section, in accordance with ((rules established by the office of the superintendent of public instruction)) generally accepted industry standards. If a district fails to follow generally accepted standards of maintenance and operation, the superintendent of public instruction shall penalize the district by deducting from future reimbursements under this section an amount equal to the original cost of the vehicle multiplied by the fraction of the useful lifetime or miles the vehicle failed to operate.
     (3) The superintendent shall annually develop a depreciation schedule to recognize the cost of depreciation to districts contracting with private carriers for student transportation. Payments on this schedule shall be a straight line depreciation based on the original cost of the appropriate category of vehicle.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2011.