2436-S.E AMS WM S5645.1

 

 

 

ESHB 2436 - S COMM AMD

By Committee on Ways & Means

 

                                                                   

 

    Strike everything after the enacting clause and insert the following:

 

    "Sec. 1.  RCW 39.94.040 and 1989 c 356 s 4 are each amended to read as follows:

    (1) Except as provided in RCW 28B.10.022, the state may not enter into any financing contract if the aggregate principal amount payable thereunder is greater than an amount to be established from time to time by the state finance committee or participate in a program providing for the issuance of certificates of participation, including any contract for credit enhancement, without the prior approval of the state finance committee.  Except as provided in RCW 28B.10.022, the state finance committee shall approve the form of all financing contracts or a standard format for all financing contracts.  The state finance committee also may:

    (a) Consolidate existing or potential financing contracts into master financing contracts with respect to property acquired by one or more agencies, departments, instrumentalities of the state, the state board for community ((college education)) and technical colleges, or a state institution of higher learning;

    (b) Approve programs providing for the issuance of certificates of participation in master financing contracts;

    (c) Enter into agreements with trustees relating to master financing contracts; and

    (d) Make appropriate rules for the performance of its duties under this chapter.

    (2) In the performance of its duties under this chapter, the state finance committee may consult with representatives from the department of general administration, the office of financial management, and the department of information services.

    (3) With the approval of the state finance committee, the state also may enter into agreements with trustees relating to financing contracts and the issuance of certificates of participation.

    (4) The state may not enter into any financing contract for real property without prior approval of the legislature.

    (5) The state may not enter into a financing contract for real property except under section 2 of this act.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 39.94 RCW to read as follows:

    (1) All financing contracts for real property are subject to the following conditions:

    (a) All financing contracts for real property proposed by the governor shall be submitted separate from all other legislation, including the capital budget;

    (b) All financing contracts for real property authorized by the legislature shall be enacted separate from all other legislation, whether codified or uncodified, including the capital budget;

    (c) Prior to state finance committee approval, an entity in RCW 39.94.040(1)(a) shall provide justification for the proposed financing contract for real property to the office of financial management for approval.  Specific criteria and a process for this justification shall be developed jointly by the office of financial management, the state treasurer's office, and the legislature, and be included in the authorizing legislation when appropriate.  The criteria shall include, but not be limited to:  (i) Demonstrating present value savings, including the market value of the asset being acquired, greater than the existing pattern of expenditures for the same purpose; (ii) demonstrating that revenues generated by the project will be sufficient to meet debt-service requirements; or (iii) demonstrating that a dedicated source of revenues, other than specific state appropriations for the same purpose, will be sufficient to meet the debt-service requirements;

    (d) All financing contracts for real property proposed by the governor shall include the total cost of the project, the amount of the project being financed by the contract, future capital and operating costs, and the source of revenues to meet the debt-service requirements and future capital and operating costs; and

    (e) The approval to enter into financing contracts will terminate four years after the effective date of the legislation approving such financing contracts.  The termination shall not be construed as affecting any contract entered into prior to the termination date.

    (2) The state treasurer's office shall report annually to the legislature on the use of financing contracts for real property.

 

    NEW SECTION.  Sec. 3.  (1) The following agencies may enter into financial contracts, paid for from operating revenues, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW.  When securing properties under this section, agencies shall use the most economical financial contract option available, including long-term leases, lease-purchase agreements, lease-development with option to purchase agreements, or financial contracts using certificates of participation.  The director of general administration shall ensure that the clustering of state facilities and the colocation and consolidation of state agencies take place where such configurations are economical and consistent with agency space needs.  Agencies shall assist the department of general administration with facility colocation and consolidation efforts.  Prior to the finalization of a financing contract authorized under this section, the agency shall file with the office of financial management an amortization statement that provides a schedule of contracted payments by source of fund.  In addition, the contracting agency shall provide to the office of financial management a condition statement regarding any existing facility which is acquired, listing the expected renovation or improvement costs that shall be incurred within five years of occupancy.  The office of financial management shall provide annual reports to the appropriate legislative committees summarizing the information regarding the payment schedule and facility condition.

    (a) Department of general administration:

    Enter into a financing contract in the amount of seven million four hundred forty thousand dollars and reserves pursuant to chapter 39.94 RCW, to purchase an existing office building and associated land in Yakima for use by the department of social and health services.

    (b) Community and technical colleges:

    (i) Enter into a financing contract on behalf of Whatcom community college in the amount of eight hundred thousand dollars plus financing expenses and reserves pursuant to chapter 39.94 RCW to develop a new two million two hundred forty thousand dollar, thirteen thousand square foot child care center.  The balance of project cost will be a combination of local capital funds and nonstate funds provided through private gifts or contributions;

    (ii) Enter into a contract on behalf of Centralia college in the amount of two thousand five hundred dollars to purchase approximately one and one-half acres in Morton to establish a permanent east county center site;

    (iii) Enter into a contract on behalf of Centralia college in the amount of seventy thousand dollars to purchase approximately one-quarter acre using local funds.  The lot and older house is between two parcels owned by the college in Centralia and will be used to expand parking for the business resource center and day care;

    (iv) Enter into financial contracts on behalf of Centralia college in the amount of four hundred thousand dollars to purchase older residential homes and lots adjacent to the main campus using local funds or real estate contracts.  Property acquisition will be consistent with the college's master plan and will provide for future expansion of continuing education, community outreach, student services, and parking;

    (v) Enter into a financing contract on behalf of Pierce college in the amount of five hundred twenty-three thousand dollars plus financing expenses and reserves pursuant to chapter 39.94 RCW to develop a new one million five hundred thousand dollar, twelve thousand square foot classroom building on the Lakewood campus.  The balance of project cost will be provided through a combination of local capital funds and existing minor works appropriation to replace two of seven portable classrooms that are at the end of their useful lives;

    (vi) Enter into a contract on behalf of Green River community college in the amount of one hundred thousand dollars to purchase the eight and ninety-seven one-hundredths acre Lea Hill Park, adjoining the main campus, from King county using local funds; and

    (vii) Enter into a contract on behalf of Spokane Falls community college to purchase an existing four thousand six hundred forty square foot structure and thirteen thousand nine hundred square foot lot for one hundred thousand dollars using local funds.  The facility will be used for a comprehensive early head start program administered under a United States department of health and human services grant awarded to the community colleges of Spokane.

    (c) Washington state patrol:

    Enter into a long-term ground lease with a consortium including the Boeing company and the port of Seattle for the purpose of constructing an aircraft rescue and aircraft fire fighting training facility at the fire training academy near North Bend.  The facility will be financed through contributions from consortium members and a grant from the federal aviation administration that requires annual training for all public and private airport fire fighters.  No state appropriations are provided.  The consortium will pay for the cost of the project, estimated to be eight million dollars.  The state's participation involves donating the use of the site for a minimum of twenty years, supervision and approval for site development plans, collecting fees from users and consortium members for maintenance and operations costs, and establishing a reserve for eventual decommissioning of the site.

    (d) Joint center for higher education:

    Enter into a contract using local funds in the amount of six hundred fifty thousand dollars plus financing expenses and reserves to purchase lots and buildings contiguous with the Spokane campus.

    (2) This section shall expire on June 30, 2001.

 

    NEW SECTION.  Sec. 4. Section 802, chapter 16, Laws of 1995 2nd sp. sess. (uncodified), and as amended expires June 30, 2001.

 

    NEW SECTION.  Sec. 5.  This act shall not be construed as affecting any completed project, exempt project authorized before the effective date of this section, existing right acquired, or existing liability or obligation incurred under the sections amended or created in this act or under any rule or order adopted under those sections, nor as affecting any proceeding instituted under those sections.

 

    NEW SECTION.  Sec. 6.  Section 4 of this act takes effect June 30, 1997."

 

 

 

ESHB 2436 - S COMM AMD

By Committee on Ways & Means

 

                                                                   

 

    On page 1, line 1 of the title, after "contracts;" strike the remainder of the title and insert "amending RCW 39.94.040; adding a new section to chapter 39.94 RCW; creating new sections; providing an effective date; and providing expiration dates."

 


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