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AN ACT Relating to the creation of a trust fund to finance the maintenance and efficient operation of state facilities; reenacting and amending RCW 43.79A.040; adding a new section to chapter 43.79 RCW; creating a new section; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. (1) The legislature finds that the capital facilities owned by state agencies represent a significant financial investment by the citizens of the state of Washington and that providing for a responsible and efficient level of facility maintenance is critical to preserving these facilities and protecting the full value of this investment. The legislature finds that ongoing reinvestment in facilities through adequate maintenance funding can delay the need for capital expenditures for replacement facilities, reduce operating costs, and provide higher levels of service. The legislature also finds that facility maintenance is a fundamental responsibility of state government and that a dedicated funding source for maintenance is necessary to ensure that adequate expenditures for facility maintenance are not forced to compete with ongoing personnel and other operating costs of state government.

(2) The purpose of this act is to establish a trust fund to finance maintenance of state facilities. The trust fund is in addition to the current levels of state expenditures for facility maintenance. The money in the trust fund will be invested and the principal and interest will be made available for major maintenance, improvements, and renovations of state-owned facilities that are at least ten years old.

NEW SECTION. Sec. 2. A new section is added to chapter 43.79 RCW to read as follows:

(1) The facility maintenance trust fund is created as a treasurer's trust fund. The state treasurer shall transfer three percent of bond proceeds from all state general obligation bonds issued by the state finance committee into the facility maintenance trust fund, excluding refunding bonds authorized by chapter 39.53 RCW, bonds financed by license fees on motor vehicles, and bonds financed by excise taxes on the sale, distribution, or use of motor vehicle fuel. All interest earnings of the fund shall remain in the fund.

(2) The facility maintenance trust fund is managed by the director of the department of general administration and no appropriation is necessary for disbursements from the fund. The facility maintenance trust fund is subject to the allotment procedures under chapter 43.88 RCW.

(3) The director of general administration shall identify priority major maintenance, improvement, and renovation needs for state facilities including institutions of higher education and make disbursements from the facility maintenance trust fund. The director of general administration shall adopt necessary rules to implement this section. For purposes of this section, major maintenance is work performed on the structural, electrical, mechanical, plumbing, roof, conveyance, interior construction, and exterior systems of a facility to meet code, safety, preservation, and efficiency standards, and does not include routine operating maintenance functions. Money in the trust fund may not be used to purchase land, construct new facilities, expand space in an existing facility, change the aesthetics of a facility, or increase the number of state employees. For purposes of this section a facility is a state-owned building, structure, utility system, parking lot related to a state-owned building, or land that will be used as a future building site.

(4) Before September 1st of each even-numbered year, the director of general administration shall report to the appropriate fiscal committees of the legislature on the amounts and purposes of all disbursements from the facility maintenance trust fund for each of the prior two fiscal years.

Sec. 3. RCW 43.79A.040 and 1993 sp.s. c 8 s 2 and 1993 c 500 s 5 are each reenacted and amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except((:

~~(a)~~)) the following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The American Indian scholarship endowment fund, the energy account, the game farm alternative account, the facility maintenance trust fund, and the self-insurance revolving fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 4. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995.