DEPARTMENT OF EDUCATION  
SUPERINTENDENT OF PUBLIC INSTRUCTION  
STATE AID FOR TRANSPORTATION OF SCHOOL CHILDREN  
(By authority conferred on the superintendent of public instruction by sections 1701 and  
1703 of 1976 PA 451, MCL 380.1701 and MCL 380.1703; sections 9 and 69 of 1990 PA  
187, MCL 257.1809 and MCL 257.1869; and Executive Reorganization Order Nos.  
1996-6 and 1996-7, MCL 388.993 and MCL 388.994)  
R 388.371 Definitions.  
Rule 1. As used in these rules:  
(a) "Act" means the state school aid act of 1979, 1979 PA 94, MCL 388.1601 to MCL  
388.1897l.  
(b) “Center” means the center for educational performance and information as defined  
in the act.  
(c) "Department" means the department of education.  
(d) “Eligible pupil” means a pupil enrolled in the intermediate school district, local  
school district, or public school academy.  
(e) “Eligible vehicle” means a type I school bus, a type I premium school bus, a type II  
school bus, or, if the department grants a waiver requested by the intermediate school  
district, local school district, or public school academy, a sedan, a station wagon, or a  
passenger van.  
(f) "Specialized transportation services" means transportation services provided in  
vehicles for the exclusive use of special education pupils.  
(g) “Type I premium school bus” means a school bus with a gross vehicle weight rating  
of more than 10,000 pounds and a capacity of more than 66 passengers.  
(h) “Type I school bus” means a school bus with a gross vehicle weight rating of more  
than 10,000 pounds that is not a type I premium school bus.  
(i) “Type II school bus” means a school bus with a gross vehicle weight rating of 10,000  
pounds or less.  
History: 1987 AACS; 2012 AACS; 2018 AACS.  
R 388.372 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.373 Rescinded.  
History: 1987 AACS; 1995 AACS.  
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R 388.374 Reporting requirements for specialized transportation services.  
Rule 4. (1) For each day during the first full school week in which an intermediate  
school district, local school district, or public school academy counts pupils in  
membership under section 6 of the act, MCL 388.1606, for each vehicle exclusively  
providing special education pupil transportation for which the intermediate school  
district, local school district, or public school academy requests funding, the intermediate  
school district, local school district, or public school academy shall collect all of the  
following information on the specialized transportation log known as “SE-4159-SL”:  
(a) The fleet number and route number of the vehicle.  
(b) The miles the vehicle travels each day transporting special education pupils to  
schools, starting at the bus storage area or beginning of the route and ending at the school  
building where the pupils exit or other storage area.  
(c) The number of special education pupils actually transported to school each day.  
(d) The name of the aide, if any, serving on the special education vehicle.  
(2) The intermediate school district, local school district, or public school academy shall  
retain the forms for 3 years.  
History: 1987 AACS; 2012 AACS; 2018 AACS.  
R 388.375 Rescinded.  
History: 1987 AACS; 1995 AACS.  
R 388.376 Rescinded.  
History: 1987 AACS; 1995 AACS.  
R 388.377 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.378 Reporting costs.  
Rule 8. By October 7 of each year, an intermediate school district, local school district,  
or public school academy shall file with the center the transportation expenditure report  
known as “SE-4094” in the manner prescribed by the center.  
History: 1987 AACS; 2018 AACS.  
R 388.379 Reports of purchase of school buses.  
Rule 9. (1) Subject to subrule (2) of this rule, an intermediate school district, local  
school district, and public school academy shall report all of the following information as  
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to a purchased school transportation vehicle on the school bus inventory system known as  
“SE-4107”:  
(a) The date the completed vehicle was accepted for use.  
(b) The name of the chassis manufacturer.  
(c) The name of the body manufacturer.  
(d) The manufacturer's rated capacity of the vehicle.  
(e) The engine number.  
(f) The bus fleet number.  
(g) The cost to the intermediate school district, local school district, or public school  
academy, including the interest to be paid.  
(h) Use by the intermediate school district, local school district, or public school  
academy as a regular vehicle, as a special education vehicle, or as a combination of the  
two.  
(2) An intermediate school district, local school district, or public school academy shall  
not include a sedan, a station wagon, or a passenger van on “SE-4107.”  
History: 1987 AACS; 2018 AACS.  
R 388.380 Amortization allowances.  
Rule 10. (1) For each eligible vehicle used to transport eligible pupils, an intermediate  
school district, local school district, or public school academy shall determine and include  
in its state aid base additional allowances for vehicle rental and amortization. The  
allowances must not include more vehicles than the number determined to be necessary,  
plus the allowable number of spare vehicles.  
(2) An intermediate school district, local school district, or public school academy shall  
determine the annual amortization allowance as follows:  
(a) For a type I school bus, divide the amortization cost base by 7. An intermediate  
school district, local school district, or public school academy shall include this annual  
allowance each year it uses the bus to transport eligible pupils for a maximum of 7 years.  
(b) For a type I premium school bus, divide the amortization cost base by 10. An  
intermediate school district, local school district, or public school academy shall include  
this annual allowance each year it uses the bus to transport eligible pupils for a maximum  
of 10 years.  
(c) For a type II school bus, a sedan, a station wagon, or a passenger van, divide the  
amortization cost base by 5. An intermediate school district, local school district, or  
public school academy shall include this annual allowance each year it uses the bus or  
vehicle to transport eligible pupils for a maximum of 5 years.  
(d) For a rehabilitated school bus that has been rebuilt by an agency approved by the  
department, divide the amortization cost base by 5.  
(3) Upon approval by the department, for a school bus or pupil transportation vehicle  
that an intermediate school district, local school district, or public school academy  
expects to exceed 100,000 miles within the first 4 years of operation, the intermediate  
school district, local school district, or public school academy may substitute an optional  
4-year amortization schedule as an alternative to subrule (2)(a), (b), and (c) of this rule.  
An intermediate school district, local school district, or public school academy shall  
declare this option the first reporting period after purchase.  
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(4) The amortization cost base for each vehicle is as follows:  
(a) For school buses and other transportation vehicles that an intermediate school  
district, local school district, or public school academy purchases new and uses to  
transport pupils, the amortization cost base is the purchase price of the vehicle and  
attached equipment, including interest, adjusted by any gain or loss on buses or other  
vehicles traded in or sold.  
(b) For a school bus that has been rebuilt, the amortization cost base is 50% of the  
annual amortization allowances that would remain if the bus were continued in use  
without rebuilding, plus the rebuilding charges.  
(c) For a used bus purchased by an intermediate school district, local school district, or  
public school academy, the amortization cost base is the original invoice cost for the bus  
and attached equipment, plus any interest that the purchasing intermediate school district,  
local school district, or public school academy is to pay, adjusted by any gain or loss on a  
bus or buses traded in or sold. If the purchasing intermediate school district, local school  
district, or public school academy cannot determine the original invoice cost, the  
department may provide a substitute invoice cost based on costs of comparable vehicles  
manufactured during the same year.  
(d) If an intermediate school district, local school district, or public school academy  
sells a bus before fully amortizing it, the maximum gain that the intermediate school  
district, local school district, or public school academy shall deduct from the purchase  
price of another vehicle is the total annual amortization allowances granted to the  
intermediate school district, local school district, or public school academy.  
(5) If a type I school bus or a type II school bus that was purchased new by an  
intermediate school district, local school district, or public school academy shows  
evidence of a probable need for repairs that is beyond good economic practice, the  
intermediate school district, local school district, or public school academy may remove  
the bus from service subject to the approval of the department. When an intermediate  
school district, local school district, or public school academy removes a school bus from  
service, it may maintain the bus on its inventory and receive annual allowances for  
amortization the same as if it continued to use the bus. An intermediate school district,  
local school district, or public school academy shall not include a bus removed from  
service in the determination of any other allowance. The intermediate school district,  
local school district, or public school academy may sell the bus but no Michigan  
intermediate school district, local school district, or public school academy shall use it for  
pupil transportation. The intermediate school district, local school district, or public  
school academy shall have used the bus to transport eligible pupils for not less than 4  
years and the bus must have traveled not less than 150,000 miles. The intermediate  
school district, local school district, or public school academy shall make available to the  
department evidence documenting acceptable regular preventive maintenance procedures  
and repair history throughout the life of the vehicle.  
History: 1987 AACS; 2018 AACS.  
R 388.381 Allowance for private contractors or common carriers.  
Rule 11. (1) An intermediate school district, local school district, or public school  
academy providing transportation to and from school by employing private contractors or  
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common carriers and requesting funding for the transportation shall provide the  
information requested in R 388.374 and R 388.379.  
(2) The department shall determine the allocation for amortization under this rule.  
History: 1987 AACS; 2012 AACS; 2018 AACS.  
R 388.382 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.383 Rescinded.  
History: 1987 AACS; 2012 AACS; 2018 AACS.  
R 388.384 Rescinded.  
History: 1987 AACS; 2018 AACS.  
R 388.385 Rescinded.  
History: 1987 AACS; 1995 AACS.  
R 388.386 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.387 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.388 Rescinded.  
History: 1987 AACS; 2012 AACS.  
R 388.389 Rescinded.  
History: 1987 AACS; 1995 AACS.  
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;