HB 1248 — Concerning pupil transportation.

Sec.

3.

RCW 28A.160.193 and 2018 c 266 s 103 are each amended to read as follows:

(1) Subject to the availability of amounts appropriated for this specific purpose, a transportation alternate funding grant program is created.

(2) As part of the award process for the grants, the superintendent of public instruction must include a review of the school district's efficiency rating, key performance indicators, and local school district characteristics such as unique geographic constraints, low enrollment, geographic density of students, ((the percentage of students served under the McKinney-Vento homeless assistance act from outside the district,)) or whether the district is a nonhigh district.

NEW SECTION.

Sec.

4.

A new section is added to chapter 28A.160 RCW to read as follows:

By January 1, 2025, the office of the superintendent of public instruction will provide an analysis of school district transportation costs and allocations following the 2023-24 school year to the education and fiscal committees of the house of representatives and senate.

This analysis will include the mileage, ridership, and costs for each school district, disaggregated by the following student demographic categories:

(1) Students requiring special transportation due to a properly formed and approved individualized education plan;

(2) students requiring special transportation due to requirements of the McKinney-Vento act or other federal program;

(3) students requiring special transportation due to a foster care placement out of their regular school boundary;

and (4) all other students provided student transportation to and from school.

The legislature intends this data to inform their future p.

4 HB 1248 discussions and reviews of the overall student transportation allocation model to remain transparent and predictable.

NEW SECTION.

Sec.

5.

A new section is added to chapter 28A.320 RCW to read as follows:

Beginning in the 2024-25 school year and each year thereafter, for any district where the reimbursement of costs under RCW 28A.160.180(2)(c) exceeds 105 percent of the state average per special passenger, the state auditor shall include in their regular audits of school districts a review of transportation costs to ensure they are necessary and reasonable costs attributable to special passengers as defined by the superintendent of public instruction and reported under RCW 28A.160.170(2).

NEW SECTION.

Sec.

6.

RCW 28A.160.192 (Student transportation allocation— Distribution formula) and 2011 1st sp.s.

c 27 s 3, 2010 c 236 s 8, & 2009 c 548 s 311 are each repealed.

Sec.

7.

(1)(1)(a) As a condition of entering into a pupil transportation services contract with a private nongovernmental entity, each school p.district shall engage in an open competitive process at least once every five years.

1 ESHB 1248 district shall engage in an open competitive process at least once every five years.

(2)(a)(b) AAny schoolpupil districttransportation mayservices onlycontract enterentered into, renew,renewed, or extendextended aafter pupilSeptember transportation1, services2023, contractmust withrequire athe privatecontractor nongovernmentalto entityprovide ifbenefits thatcomparable entityto provides the followingschool to,employees' orbenefits onboard behalfprogram of,and itsschool employeesemployees' whoretirement choosesystem to optemployees inand forinclude: coverage:

(i) AnSufficient employerfunds healthspecifically benefitsfor contribution equal to the contracting employer paymentto dollarprovide amount in effect for the firstemployees year of the contractcontractor forwith healthan careemployer benefithealth ratesbenefits (cocklecontribution rates),equal publishedto annuallythe bymonthly theschool healthemployer carefunding authority,rate for the school employees' benefits board programprogram, less the retiree remittance for schoolthe employees;public employees' benefits board;

and (ii)p. An amount equivalent to the salaries of the employees of the private nongovernmental entity multiplied by the employer normal cost contribution rate determined under the entry age cost method for the school employees' retirement system, as published in the most recent actuarial valuation report from the office of the state actuary for the first year of the contract.

(b)5 AllHB pupil1248 transportation(ii) serviceAn contractsamount enteredequivalent intoto or modified after the effectiveplans date2 ofand this3 sectionnormal mustcost includeemployer acontribution detailedrate explanation of anythe contractschool costemployees' increaseretirement bysystem, year,multiplied expenditureby type,the andestimated amount,salaries includingof anythe increasesemployees inof cost that result from providing the benefitscontractor. required under this section.

(3)(2) As used in this section:

(((1))) (a) "Employees""Employees means in-state employees of the privatecontractor" nongovernmentalmeans entityemployees working sufficient compensated hours for the contracting employer performing services pursuanton to the contract with the school district to meet the eligibility requirements for the school employees' benefits board program if the employeesemployee werewas directly employed by a school district;

or (((b))) (ii) The competitive solicitation of proposals and their evaluation consistent with the process and criteria recommended or p.required, as the case may be, by the office of financial management for state agency acquisition of personal service contractors;

2 ESHB 1248 required, as the case may be, by the office of financial management for state agency acquisition of personal service contractors;

3.8.

(1) ASubject schoolto districtamounts thatappropriated experiencesfor anthis increasepurpose, inthe costsoffice toof athe pupilsuperintendent transportationof servicespublic contractinstruction asmust comparedprovide toa priorone-time yearsupplemental contracttransportation costsallocation asto aschool resultdistricts ofthat theexperience provisionsan increase in RCWcosts 28A.160.140to ispupil eligibletransportation forservices supplementalcontracts transportationdue allocationsto assection described7 inof this section.act.

(2) BeginningTo Septemberbe 1,eligible 2024,for schoolsupplemental districts that provide pupil transportation throughallocations, a contractschool withdistrict a nongovernmental entity under RCW 28A.160.140 must annuallyreport provideto the office of the superintendent of public instruction with the followingnumber information:of employees under pupil transportation services contracts that worked at least 630 hours in performing p.

(a)6 AHB breakdown1248 ofservices on the total contract costwith increase, including a detailed explanation of the increaseschool bydistrict expenditure type demonstrating dollar equivalency as required in RCWthe 28A.160.140(2)(a)(i)school andyear percentageprior equivalencyto asentering requireda incontract RCWsubject 28A.160.140(2)(a)(ii),to assection defined7 by the office of thethis superintendentact. of public instruction, and amount;

(b)(3) AAmounts breakdownprovided ofunder cost from the contractor that shows the cost to provide health care and pension benefits to employees prior to the effective date of this section andmay theonly costbe toused provideby healthschool caredistricts andas pensionpayments benefitsunder topupil employeestransportation afterservices thecontracts implementationfor ofemployee benefitscompensation. as described in RCW 28A.160.140;

(c)(4) TheA amountsupplemental of funding received through transportation allocationsallocation under RCWthis 28A.160.150section throughmay 28A.160.192not priorexceed to$200 theper implementation of school employee benefitsper undermonth chapterfor 41.05contracted RCWemployees andreported theunder amountsubsection (2) of fundingthis receivedsection. through the same transportation allocations for the period immediately following the implementation p.

3NEW ESHBSECTION. 1248 of school employee benefits under chapter 41.05 RCW, to determine the amount of funding for health care that is already being included in allocations.

(3)Sec. The office of the superintendent of public instruction may suspend the reporting requirements under subsection (2) of this section on or after September 1, 2027, for districts that do not request supplemental transportation allocations under this section.

(4)9. Subject to the availability of amounts appropriated for this specific purpose, the office of the superintendent of public instruction must reimburse a school district for the increased cost that is directly attributable to increased benefits as required under this act, using the following formula:

TheSection total1 contractof costthis increase,act lesstakes anyeffect amountsSeptember not1, attributable2023. to benefits required under RCW 28A.160.140, less the amount the allocation was increased based on the actual cost increase through the transportation funding formula.

NEW SECTION.

Sec.

10.

Sections 2 through 6 of this act take effect September 1, 2024.

47 ESHBHB 1248