FINAL BILL REPORT

2SHB 1909

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Background:

Strategic Technology Plan.

In 2006 and 2007 the State Board for Community and Technical Colleges (SBCTC) analyzed technology application and practices at community and technical colleges. The purpose was to learn how technology could be used to advance student learning, improve student services, and create greater administrative efficiencies. In all three areas, the SBCTC found a need for greater uniformity across the 34 colleges in the system and the P-20 education system.

In 2008 the SBCTC adopted the Strategic Technology Plan (Technology Plan). The SBCTC defines the Technology Plan as a roadmap for how the community and technical college system can leverage 21st century technologies to support student achievement.

Certificates of Participation.

Institutions of higher education may finance the acquisition, construction, and renovation of facilities using state bonds. Bond proceeds for these projects are appropriated in the omnibus capital appropriations act (capital budget). In addition to financing through state bonds, higher education institutions are authorized to enter into financing contracts, such as Certificates of Participation (COPs), which are a type of security sold for a particular purpose and backed by any component of fees and revenues the university derives from its ownership and operation of its facilities. The COPs must be authorized in the capital budget and, once authorized, the institution is allowed to begin the construction or purchase process.

The COPs are not subject to appropriation by the Legislature, do not obligate State General Fund revenues to be used for their completion, and do not count toward the state debt limit.

Summary:

Up to 3 percent of operating fees at community and technical colleges are transferred to the Community and Technical College Innovation Account (Account) to be used to implement the SBCTC's Technology Plan. The SBCTC approves the amount to be transferred each year. The SBCTC must approve projects under the Technology Plan to improve student achievement, student services, and increase system-wide administrative efficiencies. The SBCTC is required to develop a technical and operational business plan and bring large enterprise resource planning projects to the Legislature for approval.

The community and technical colleges are required to engage in substantial business process reengineering and adopt system wide approaches to admission, financial aid, student identification numbers, student transcripts, and other system wide processes. In addition, when pursuing an enterprise resource planning solution, the community and technical colleges must consider: opportunities for coordination and consolidation with other higher education institutions; adopting technology solutions that are already used at other higher education institutions; the short and long term costs of those solutions; and technical flexibility to support cost efficiencies.

The Account is created in the custody of the State Treasurer. Expenditures from the Account must be approved by the Director of the SBCTC or his or her designee. Expenditures from the Account may be used for two purposes: (1) paying off debt from financing contracts, such as certificates of participation authorized by law; or (2) for projects that implement the Technology Plan as approved by the SBCTC. The Account may retain its interest earnings.

The requirement for community and technical colleges to round tuition and fees to the nearest dollar amount is removed.

Votes on Final Passage:

House	63	34
Senate	43	5