Original Notice.

     Preproposal statement of inquiry was filed as WSR 11-23-095.

     Title of Rule and Other Identifying Information: WAC 392-121-570 and 392-121-578, Finance--Vocational indirect cost limit.

     Hearing Location(s): Old Capitol Building, 600 South Washington Street, P.O. Box 47200, Wanamaker Conference Room, Olympia, WA, on February 5, 2012 [2013], at 10:00 a.m.

     Date of Intended Adoption: February 6, 2013.

     Submit Written Comments to: Steve Shish, P.O. Box 47200, Olympia, WA 98504-7200, e-mail steve.shish@k12.wa.us, fax (360) 664-3683, by February 5, 2013.

     Assistance for Persons with Disabilities: Contact Wanda Griffin by February 1, 2013, TTY (360) 664-3631 or (360) 725-6133.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The rule revisions add middle school career and technical education programs to the indirect cost limit. The rule revisions also limit middle school and secondary carry over to the ensuing year to no more than the vocational enhancement allocation less recovery.

     Reasons Supporting Proposal: Revisions are needed to implement legislative changes that add middle school career and technical programs to the vocational indirect cost limit.

     Statutory Authority for Adoption: RCW 28A.150.290.

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

     Name of Proponent: [Office of superintendent of public instruction], governmental.

     Name of Agency Personnel Responsible for Drafting: Steve Shish, Office of Superintendent of Public Instruction, (360) 6307 [725-6307]; Implementation: T. J. Kelly, Office of Superintendent of Public Instruction, (360) 6301 [725-6301]; and Enforcement: JoLynn Berge, Office of Superintendent of Public Instruction, (360) 6292 [725-6292].

     No small business economic impact statement has been prepared under chapter 19.85 RCW. Not applicable - no small business impact.

     A cost-benefit analysis is not required under RCW 34.05.328. The superintendent of public instruction is not subject to RCW 34.05.328 per subsection (5)(a)(1)[(i)]. Additionally, this rule is not a significant legislative rule per subsection (5)(c)(iii).

December 19, 2012

Randy Dorn

State Superintendent

of Public Instruction

OTS-5212.1

AMENDATORY SECTION(Amending WSR 04-01-058, filed 12/11/03, effective 1/11/04)

WAC 392-121-570   Vocational indirect cost limit -- Applicable code provisions -- Purpose -- Effective date.   (1) WAC 392-121-570 through 392-121-578 define the fifteen percent limit on indirect cost charges to school district state-funded vocational-secondary programs as required by the Biennial Operating Appropriations Act. These rules do not apply to federal vocational funding which is governed by federal policies.

     (2) The purpose of these sections is to assure that state allocations for vocational education are expended by school districts to support state vocational programs. The minimum levels defined here are not to be construed as recommended expenditure levels.

     (3) These sections are effective for the 2002-03 school year and thereafter.

     (4) WAC 392-121-570 through 392-121-578 also apply to program 34, with program 34 substituted wherever program 31 appears. Running start does not apply to program 34.

[Statutory Authority: 2002 c 371 § 502(2) and RCW 28A.150.290. 04-01-058, § 392-121-570, filed 12/11/03, effective 1/11/04.]

     (2) If the district's program 31 expenditures are below the minimum program 31 expenditure amount, the district shall be allowed to carry over into the ensuing school year an amount equal to up to ten percent of the minimum expenditure amount excluding any carryover from the prior school year. The actual amount carried over to the ensuing year shall be no more than the vocational enhancement less the recovery.

     (3) The superintendent of public instruction shall recover from the district's general apportionment allocation as a prior year adjustment an amount equal to the lesser of the district's enhancement allocation for vocational students or the following amount:

     (a) The district's minimum program 31 expenditures; minus

     (b) The district's program 31 expenditures plus any allowable carryover.

     (((2))) (4) Recoveries made pursuant to this section shall be adjusted after the January apportionment calculation if revised enrollment, staff mix, or expenditure data submitted by the district and accepted by the superintendent of public instruction materially affects the district's recovery amount.

[Statutory Authority: 2002 c 371 § 502(2) and RCW 28A.150.290. 04-01-058, § 392-121-578, filed 12/11/03, effective 1/11/04.]