AN ACT Relating to the capital incentive program; adding a new section to chapter 28B.10 RCW; adding a new section to chapter 28B.20 RCW; adding a new section to chapter 28B.30 RCW; adding new sections to chapter 28B.35 RCW; adding a new section to chapter 28B.40 RCW; and adding a new section to chapter 28B.50 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 28B.10 RCW to read as follows:

(1) The capital incentive program is hereby created.

(2) The state four-year institutions of higher education and the state board for community college education, on behalf of the community colleges, are authorized to provide vouchers for the payment of tuition fees to private entities, either individual or corporate, that donate moneys to an institution's capital incentive fund. In the 1989-91 biennium, vouchers shall be provided to donors in the amount of one credit hour of undergraduate tuition fees for each five hundred dollars donated to a four-year institution capital incentive fund, and one credit hour of undergraduate tuition fees for each two hundred fifty dollars donated to the community college capital incentive fund. In the 1989-91 biennium, vouchers shall be provided to donors in the amount of one credit hour of graduate level tuition fees for each one thousand dollars donated to a four-year institution's capital incentive fund. Thereafter, the four-year institutions and the state board for community college education shall alter, each biennium, the required amount of donation necessary to achieve a voucher by the same percentage as the change in tuition fees charged at the respective institutions.

(3) Donations to the capital incentive funds, under this section, may be either general donations or designated donations for specific capital facility projects or programs. Donations to the community college capital incentive fund may be designated for a specific project, or for a specific community college.

(4) The state treasurer shall accept redeemed vouchers remitted by the institutions in lieu of the transmission of operating fee moneys and building fee moneys for credit hours purchased with such vouchers.

(5) Individuals designated by a donor may use the vouchers. A voucher may be used only by an individual who qualifies as a resident student under RCW 28B.15.011 through 28B.15.015, and who has been admitted for enrollment at the institution of higher education that dispensed the voucher. A voucher dispensed by the state board for community college education may be used at any community college. The possession or use of a voucher is not a guarantee of admission or continued enrollment at an institution of higher education. The institutions of higher education are not required to make space available for the enrollment of holders or users of such vouchers.

(6) Moneys donated to the capital incentive funds shall be used by the institutions for the purpose of providing needed improvements consisting of the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities, either on campus, at an off-campus center or program, or at a branch campus site. Moneys may be used to supplement funds provided from other sources for such capital projects.

NEW SECTION. Sec. 2. A new section is added to chapter 28B.20 RCW to read as follows:

The capital incentive fund of the University of Washington is established under the full control and authority of the board of regents. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

Moneys donated to the fund for a designated purpose may be used only for that purpose. Expenditures from the fund shall be accounted for in accordance with existing law. Moneys shall not be expended for the lease, acquisition, or construction of off-campus or branch campus facilities without the approval of the higher education coordinating board according to RCW 28B.80.340. Moneys shall not be expended for the acquisition or construction of new facilities until appropriated by the legislature. If the legislature does not appropriate moneys for a project funded, in whole or in part, by a designated donation, the university and the donor may agree to change the designated purpose or remove any designation from the donation.

NEW SECTION. Sec. 3. A new section is added to chapter 28B.30 RCW to read as follows:

The capital incentive fund of Washington State University is established under the full control and authority of the board of regents. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

NEW SECTION. Sec. 4. A new section is added to chapter 28B.35 RCW to read as follows:

The capital incentive fund of Central Washington University is established under the full control and authority of the board of trustees. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

NEW SECTION. Sec. 5. A new section is added to chapter 28B.35 RCW to read as follows:

The capital incentive fund of Eastern Washington University is established under the full control and authority of the board of trustees. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

NEW SECTION. Sec. 6. A new section is added to chapter 28B.35 RCW to read as follows:

The capital incentive fund of Western Washington University is established under the full control and authority of the board of trustees. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

NEW SECTION. Sec. 7. A new section is added to chapter 28B.40 RCW to read as follows:

The capital incentive fund of The Evergreen State College is established under the full control and authority of the board of trustees. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

Moneys donated to the fund for a designated purpose may be used only for that purpose. Expenditures from the fund shall be accounted for in accordance with existing law. Moneys shall not be expended for the lease, acquisition, or construction of off-campus or branch campus facilities without the approval of the higher education coordinating board according to RCW 28B.80.340. Moneys shall not be expended for the acquisition or construction of new facilities until appropriated by the legislature. If the legislature does not appropriate moneys for a project funded, in whole or in part, by a designated donation, the college and the donor may agree to change the designated purpose or remove any designation from the donation.

NEW SECTION. Sec. 8. A new section is added to chapter 28B.50 RCW to read as follows:

The capital incentive fund of the community colleges is established under the full control and authority of the state board for community college education. The fund shall consist of moneys donated through the capital incentive program pursuant to section 1 of this act, and any income from the investment of such moneys. Moneys in the fund may be used for the lease, acquisition, construction, remodeling, furnishing, or equipping of facilities. Moneys may be used to supplement funds provided from other sources for such capital projects.

Moneys donated to the fund for a designated purpose, or for a designated community college may be used only for that purpose or college. Moneys donated to the fund without designation shall be expended for community college capital projects as determined by the state board and, if applicable, appropriated by the legislature. Expenditures from the fund shall be accounted for in accordance with existing law. Moneys shall not be expended for the acquisition or construction of new facilities until appropriated by the legislature. If the legislature does not appropriate moneys for a project funded, in whole or in part, by a designated donation, the state board and the donor may agree to change the designated purpose or remove any designation from the donation.

NEW SECTION. Sec. 9. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.