Effective Date of Rule: Thirty-one days after filing.

     Purpose: Reasons why rules on this subject may be needed and what they might accomplish: The office of superintendent of public instruction (OSPI) shall review and revise the guidelines for skill centers to encourage skill center programs. The new rules will define rules for skill center governance, development of new skill centers, satellite and branch campuses and capital projects.

     Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: OSPI will work in cooperation with the workforce training and education coordinating board, skill center directors, and school administrators to review and revise the rules.

     Reasons for Supporting Proposal: Process for developing new rule - negotiated rule making.

     Statutory Authority for Adoption: RCW 28A.245.030.

      Adopted under notice filed as WSR 09-23-048 on January 5, 2010 [November 10, 2009].

     A final cost-benefit analysis is available by contacting Kathleen Lopp, P.O. Box 47200, Olympia, WA 98504-7200, phone (360) 725-6249, fax (360) 586-9321, e-mail Kathleen.lopp@k12.wa.us.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New X [12], Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New X [12], Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 12, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New X [12], Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New X [12], Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

     Date Adopted: January 5, 2010.

Randy Dorn

State Superintendent

OTS-2757.3

     (2) An "interdistrict cooperative agreement" is a joint resolution by the board of directors of all participating school districts designating the host district as the legal applicant.

     (3) The "host district" is a member of the skill center cooperative selected to be responsible for the planning, construction, administration, operation and fiscal services of the skill center. A single district forming a skill center is the host district.

     (4) The "administrative council" serves as the governing body of the interdistrict cooperative and makes policy for the operation of the skill center. The administrative council is comprised of the superintendent of each member school district where skill center facilities are sited and the applicable college president participating in the cooperative agreement. In the case of a single school district forming an autonomous skill center, the school board of directors shall serve as the administrative council.

     (5) The "skill center core campus" is the facility housing a majority of the skill center students enrolled. It is operated by the skill center. The cooperative shall manage and maintain the core campus.

     (6) A "single school district skill center" is a single school district with an annual headcount enrollment at or exceeding twelve thousand students in grades nine through twelve that offers skill center programs.

     (7) An "emerging skill center" is a new core or branch skill center having an approved application still in the development phase, but not yet offering programs.

     (8) A "skill center branch campus" is a common school or higher education facility which provides three or more programs at a location other than the skill center core campus. Each branch campus must be approved by the superintendent of public instruction.

     (9) A "skill center satellite program" is a facility or site which provides less than three programs at a location other than the skill center core campus. Each satellite program must be approved by the superintendent of public instruction and shall only be hosted by a core campus. If the satellite program is housed in another skill center's service area, approval by both skill center administrative councils is required.

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     (1) The administration of the school facility and of the program or services to be offered;

     (2) The estimated number of students to be served from each district;

     (3) The estimated amount of any operating costs of the program that are not funded from state or federal sources and the method of sharing the unfunded costs;

     (4) Financial terms by which each participating district will share in the cost of construction or modernization and operation of school facilities to comply with WAC 392-347-023;

     (5) Terms by which the skill center may be dissolved in accordance with the provisions for dissolution of skill centers as outlined in WAC 392-600-120;

     (6) Duration of the interdistrict cooperative agreement:

     (a) The initial interdistrict cooperative agreement must be a minimum of ten years;

     (b) The minimum period of operation prior to dissolution consideration must be in accordance with the provisions for dissolution of skill centers as outlined in WAC 392-600-120;

     (c) The renewal or amendments to agreements shall be submitted for approval of the superintendent of public instruction, career and technical education.

     (7) Ownership of all capital equipment and skill center facilities;

     (8) Distribution of assets and liabilities or the payments to be made to the participating districts;

     (9) Relationship and governance structure of branch campuses, if applicable;

     (10) Responsibilities for services to be provided by participating school districts directly to the skill center. These shall include, but are not limited to:

     (a) Transportation;

     (b) Special education;

     (c) Other noncore skill center needs of the student.

     (11) Programs eligible for consideration and approval by OSPI shall be:

     (a) Voluntary student enrollment;

     (b) Tuition-free;

     (c) Necessary for the express purpose of:

     (i) Providing educational programs not otherwise available;

     (ii) Avoiding unnecessary duplications of specialized or unusually expensive programs and facilities.

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     (1) Establish policies and procedures;

     (2) Be responsible for equipment replacement, facility maintenance, and ongoing operation of the skill center, including a branch campus/satellite program, to meet current industry and educational standards;

     (3) Offer programs that are approved by the superintendent of public instruction for career and technical education enhancement as defined in WAC 392-121-138, or provide basic support to students enrolled in skill center programs: Programs that are approved by the superintendent of public instruction for vocational enhancement shall provide a minimum of five hundred forty hours of instruction per year;

     (4) Skill center programs may be less than the equivalent of three consecutive fifty-minute periods if offered as an extension of the student's one whole full-time equivalent-funded school year;

     (5) Submit an application to the superintendent of public instruction, career and technical education, requesting approval to operate a satellite program eligible for skill center funding;

     (6) Select an official name to be submitted to the superintendent of public instruction, career and technical education, which will include the phrase "skill center" modified by the specific unique name given locally. The specific name given should be different than the name of any school district participating in the skill center cooperative;

     (7) Have three years from the date of approval to establish a financial plan, including the operation and capital funds which will contribute to the ongoing site, facility, equipment, and maintenance and operation of the skill center to be reviewed annually;

     (8) Serve the majority of student enrollment at its core campus.

     Skill centers that serve or intend to serve less than a majority of students at the core campus must submit a waiver request to the superintendent of public instruction, career and technical education

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     (a) Existing skill center core and branch campuses requesting major capital project funding within the ten year capital budget planning cycle shall submit a capital plan to the superintendent of public instruction, school facilities and organization, for their skill center facilities by December 1st of each odd-numbered year.

     (b) Emerging skill center core or branch campuses in need of new or remodeled permanent housing as identified in the feasibility study or feasibility study waiver request, may initiate through their administrative council and host district a request to the superintendent of public instruction, school facilities and organization, for a capital plan for predesign, design and subsequently for capital construction by May 1st of each year.

     (c) The capital budget plan must identify a local contribution as provided in RCW 28A.245.030(3). The local contribution may be determined based on the total expected value of the project cost to include all phases of construction as proposed in the ten year plan. The local contribution must receive prior approval from the superintendent of public instruction, school facilities and organization, and may include the following:

     (i) Local project funding from cooperating districts;

     (ii) Fair market value of land as determined by a state certified general appraiser;

     (iii) In-kind labor for capital planning, design, construction or capital project management; and

     (iv) Other capital services provided by the cooperating districts.

     (d) All capital plan submissions shall conform to the office of financial management's capital budget guidelines. Activities surrounding program development and operational oversight are not allowable capital expenditures.

     (2) Minor works. A skill center administrative council may request state funding for core, branch or satellite facility minor works projects through the biennial capital budget.

     Project requests shall be received by the superintendent of public instruction, school facilities and organization, by May 1st of each even-numbered year.

     (3) All projects must conform to the office of financial management's capital budget guidelines.

     (4) Ten year plan. The state superintendent or designee, in cooperation with the skill center directors and a representative of each emerging skill center, shall prepare a prioritized list of skill center capital projects to include major construction and minor works funding levels for the ten year plan required by RCW 28A.245.030(3).

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     (1) A skill center must serve a minimum of one hundred fifty full-time equivalent students in a minimum of three different programs. A district must partner with an established skill center as a branch campus until the proposed skill center reaches one hundred fifty full-time equivalent students; exemptions include existing skill centers as of the date of formal adoption of skill center rules;

     (2) No more than seventy percent of full-time equivalent students served by the skill center consortium may be resident students of the host district, except for single school district skill centers;

     (3) The skill center will enter a two year probation period if a skill center is not able to meet enrollment requirements as set forth in this section. During this period, the superintendent of public instruction, career and technical education, will provide guidance and assistance to the skill center to help meet the enrollment requirements. Skill centers unable to meet the enrollment requirements at the end of the two year probation period will begin dissolution procedures as described in WAC 392-600-120;

     (4) Skill center academic courses not approved as skill center career and technical education courses shall only report as basic education enrollment;

     (5) Exemptions may be granted by OSPI career and technical education for start-up and existing skill centers operating prior to the 2010-11 school year.

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     (2) The core or branch campus district hiring the instructional staff and providing skill center programs to the student shall report the monthly student enrollment to the superintendent of public instruction, school apportionment and financial services, for state funding purposes, unless otherwise provided for by the interlocal agreement.

     (3) Satellite programs shall not provide a monthly count of students directly to the superintendent of public instruction, for apportionment purposes and shall not be direct funded.

     (4) Exemptions may be granted by the superintendent of public instruction, career and technical education, for start-up and existing skill centers operating prior to the 2010-11 school year.

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     (2) It shall have an advisory committee comprised of the district superintendent and representatives from business/industry reflective of the proposed programs.

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     (2) In the case of branch campuses, the existing skill center host district and administrative council shall be the applicant or co-applicant.

     (3) In addition:

     (a) Feasibility study funding requests received before May 1st of each year will be submitted in OSPI's capital budget request.

     (b) Two or more school districts, through a joint resolution, may request a waiver to the feasibility study requirement by demonstrating an existing skill center cooperative relationship and addressing the required elements of a feasibility study set forth by the superintendent of public instruction, school facilities and organization. Waivers may be granted by the state superintendent of public instruction.

     (c) After legislative approval to fund the feasibility study, the superintendent of public instruction, school facilities and organization, shall issue a grant notification letter to the lead district for the appropriated funding to complete the feasibility study. The grant notification letter shall include the required elements of the study.

     (d) The lead district shall return a completed feasibility study to the superintendent of public instruction, school facilities and organization, within one year from the grant notification letter.

     (e) Participating school districts wanting to proceed with the creation of a skill center shall submit a written application to the superintendent of public instruction, school facilities and organization which shall include, but not be limited to, the interdistrict cooperative agreement requirements as prescribed in WAC 392-600-020. The application for the interdistrict cooperative shall be received within two school years of submitting the feasibility study.

     (f) The superintendent of public instruction shall have final approval of the interdistrict cooperative agreement and the designation for the interdistrict cooperative to become an emerging skill center. The lead district shall receive a letter from the superintendent of public instruction regarding the outcome of the superintendent of public instruction review.

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     (1) Develop policies and procedures to ensure cooperation and avoid unnecessary duplication of programs within the skill center member districts.

     (2) Follow the superintendent of public instruction, career and technical education, course approval application process.

     (3) All career and technical education course offerings provided by the skill center must be submitted for approval by the skill center and not by the participating districts.

     (4) Apply for a school entity code through the superintendent of public instruction, information technology.

     All existing skill centers must meet the rules herein set forth by June 30, 2014.

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     (2) The branch campus shall:

     (a) Receive interdistrict cooperative approval from the superintendent of public instruction as described in WAC 392-600-020;

     (b) Have programs reviewed and approved by the core campus host district before submitting to the superintendent of public instruction, career and technical education.

     (3) A skill center branch campus may submit a request to the superintendent of public instruction, career and technical education, to be considered as a skill center core campus if it meets the following standards:

     (a) Develops interdistrict agreements that meet the standards in WAC 392-600-020;

     (b) Meets or has a plan to meet the enrollment requirements in WAC 392-600-050;

     (c) Provides a minimum of three approved instructional programs;

     (d) Receives a written release from the core campus.

     (4) A branch campus may not establish a branch campus or a satellite program.

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     (2) A satellite program shall not report the monthly student enrollment directly to the superintendent of public instruction, apportionment financial services. State apportionment funding shall be paid only through the core campus host district.

     (3) Program approvals will be submitted to the superintendent of public instruction, career and technical education, through the core campus.

     (4) Interlocal agreements shall be developed as necessary with:

     (a) School districts;

     (b) Private or other entities.

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     (a) Skill centers receiving state funding for construction or major modernization shall not initiate procedures for the dissolution of the operation of a skill center prior to the end of the useful life of the facility or thirty years after the state funded facility's construction completion date, whichever is less.

     (b) Any skill center facilities which were constructed, or have received major modernization, with state funding shall revert to the school district in which the facility is physically located and shall be counted as instructional space in the district's inventory.

     (c) Request for dissolution outside the terms of the interdistrict cooperative agreement may be approved when, in the judgment of the superintendent of public instruction, there is substantiation of sufficient cause.

     (2) Skill centers unable to meet enrollment requirements during the probationary period as described in WAC 392-600-060 shall enter into the skill center dissolution process. Within thirty days after conclusion of the probationary period the skill center administrative council shall submit in writing, for approval by the superintendent of public instruction, one of the following dissolution options:

     (a) Partner with an existing skill center to become a branch campus or satellite program. The proposed core campus skill center administrative council must submit a resolution proposal for the new branch campus or satellite program.

     (b) Remove skill center status and no longer qualify for enhanced skill center funding as described in WAC 392 121-465.

     (c) Proceed with dissolution as outlined in the skill center interdistrict cooperative agreement.

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