BP BHEAD INT H

AN ACT Relating to the joint center for higher education; amending RCW 28B.25.020, 28B.25.030, and 28B.10.060; adding new sections to chapter 28B.25 RCW; and repealing RCW 28B.25.080.

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

Sec. 1. RCW 28B.25.020 and 1991 c 205 s 3 are each amended to read as follows:

(1) The joint center shall have authority over ((~~all~~)) fiscal activities related to the land and facilities known as the ((~~Spokane~~)) Riverpoint higher education park subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.330 through 28B.80.350.

(2) The joint center for higher education shall coordinate ((all baccalaureate and graduate degree programs, and all other courses and programs offered in the Spokane area by Washington State University and by Eastern Washington University outside of its Cheney campus. The joint center for higher education shall not coordinate the intercollegiate center for nursing)) new degree programs proposed for the Spokane area by Washington State University and by Eastern Washington University outside of the Cheney campus, and may mediate disagreements among institutions about degree programs or courses.

(3) The joint center for higher education shall coordinate the following higher education activities in the Spokane area outside of the Eastern Washington University Cheney campus:

(a) ((~~Articulation between lower division and upper division programs;~~

~~(b)~~)) The participation of Washington State University and Eastern Washington University in joint academic degree programs with Gonzaga University and Whitworth College and in joint academic degree programs with each other;

((~~(c)~~)) (b) All contractual negotiations between public and independent colleges and universities; and

((~~(d)~~)) (c) Programs offered through the intercollegiate research and technology institute created by RCW 28B.10.060.

(4) The joint center for higher education shall not coordinate the intercollegiate center for nursing.

((~~(4)~~)) (5) The participating institutions in the joint center for higher education shall maintain jurisdiction over the content of the course offerings and the entitlement to degrees. However, before any new degree is authorized under this section it shall be subject to review and approval of the higher education coordinating board.

((~~(5)~~)) (6) The joint center shall develop a master plan for the ((~~Spokane~~)) Riverpoint higher education park. The plan shall be developed in cooperation with the participating institutions and submitted to the higher education coordinating board, legislature, and office of financial management by December 31st of the second year of each biennium.

((~~(6)~~)) (7) The joint center shall adopt rules as necessary to implement this chapter.

((~~(7)~~)) (8) Title to or all interest in real estate and other assets, including but not limited to assignable contracts, cash, equipment, buildings, facilities, and appurtenances thereto held as of July 1, 1991, shall vest in the joint center for higher education.

Sec. 2. RCW 28B.25.030 and 1991 c 205 s 4 are each amended to read as follows:

(1) The joint center for higher education shall be governed by a board consisting of the following twelve voting members:

(a) One member of the Eastern Washington University board of trustees;

(b) One member of the Washington State University board of regents;

(d) Six citizens residing in Spokane county. Of the six citizen members, no more than two may be regents or trustees of Eastern Washington University, Washington State University, or the Spokane community college district; and

(e) The presidents of Washington State University and Eastern Washington University, and the chief executive officer of the Spokane community college district shall serve as ex officio members of the board.

(2) The executive director of the higher education coordinating board, the president or chancellor of Gonzaga University, as designated by the board of trustees of the university, and the president of Whitworth College shall serve as nonvoting ex officio members of the board.

(3) Each of the twelve voting members shall have one vote. The voting members shall select a chairperson from among the nine appointed members. A majority of the twelve voting members shall constitute a quorum for conducting business.

NEW SECTION. Sec. 3. (1) The board may purchase services customarily and historically provided by employees in classified service under chapter 41.06 RCW by contracting with individuals or business entities, without the necessity of showing that classified employees could not provide these services, if the purchase would not result in either increased expenditures of public funds for the contracted service or the termination of state-funded permanent classified employees employed at the joint center for higher education. A contract to purchase services shall provide that the contractor will pay to its employees performing the contract work, wages that are similar to those generally paid for such work in Spokane county and will make available health benefits that are similar to, but in any case no less than, the benefits provided for basic health care services under chapter 70.47 RCW.

(2) This section does not apply to and does not in any manner limit the purchase of services or any contracting for services that was authorized by law before the effective date of this section.

NEW SECTION. Sec. 4. The board may receive and expend funds derived from rents of properties located on land owned by the joint center for higher education that has been designated for future expansion of the Riverpoint higher education park.

NEW SECTION. Sec. 5. The board may provide for the construction, completion, reconstruction, remodeling, rehabilitation, and improvement of buildings and facilities authorized by the legislature for the use of the Riverpoint higher education park and finance the payment thereof by bonds payable out of special funds derived from income received from the payment of building fees, gifts, bequests or grants, and such additional funds as the legislature may provide.

NEW SECTION. Sec. 6. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 4 through 12 of this act.

(1) "Board" means the board of the joint center for higher education.

(2) "Building fees" means charges, rentals, and other income derived from any or all revenue-producing lands, buildings, and facilities of the joint center for higher education heretofore or hereafter acquired, constructed, or installed, including but not limited to income from rooms, student activity buildings, vehicular parking facilities, or land or the appurtenances thereon.

(3) "Bond retirement fund" means the fund created in section 9 of this act for the retirement of the bonds authorized in sections 4 through 12 of this act.

(4) "Bonds" means the bonds payable out of the bond retirement fund.

(5) "Projects" means the construction, completion, reconstruction, remodeling, rehabilitation, or improvement of any building or other facility of the joint center for higher education authorized by the legislature at any time and financed by the issuance and sale of bonds.

NEW SECTION. Sec. 7. In addition to the powers conferred under existing law, the board may:

(1) Contract for the construction, completion, reconstruction, remodeling, rehabilitation, and improvement of such buildings or other facilities of the Riverpoint higher education park as are authorized by the legislature to be financed by the issuance and sale of bonds;

(2) Finance the construction, completion, reconstruction, remodeling, rehabilitation, and improvement of buildings or other facilities of the Riverpoint higher education park by the issuance of bonds secured by the pledge of any or all of the building fees; and

(3) Without limitation of the foregoing, accept grants from the United States government, or any federal or state agency or instrumentality, or private corporation, association, or person to aid in defraying the costs of any such projects.

NEW SECTION. Sec. 8. For the purpose of financing the cost of any projects, the board may adopt the resolution or resolutions and prepare all other documents necessary for the issuance, sale, and delivery of the bonds or any part thereof at such time or times as it shall deem necessary and advisable. The bonds:

(1) Shall not constitute:

(a) An obligation, either general or special, of the state; or

(b) A general obligation of the joint center board;

(2) Shall be:

(a) Either registered or in coupon form;

(b) Issued in denominations of not less than one hundred dollars;

(d) Signed on behalf of the board by the chairperson of the board, attested by the secretary of the board, have the seal of the joint center for higher education impressed thereon or a facsimile of such seal printed or lithographed in the bottom border thereof, and the coupons attached thereto shall be signed with the facsimile signatures of such chairperson and the secretary;

(3) Shall state:

(a) The date of issue;

(b) The series of the issue and be consecutively numbered within the series; and

(4) In each series shall bear interest, payable either annually or semiannually, as the board may determine;

(5) Shall be payable both principal and interest out of a bond retirement fund;

(6) Shall be payable at such times over a period of not to exceed forty years from date of issuance, at such place or places, and with such reserved rights of prior redemption, as the board may prescribe;

(7) Shall be sold in such manner and at such price as the board may prescribe;

(8) Shall be issued under and subject to such terms, conditions, and covenants providing for the payment of the principal thereof and interest thereon and such other terms, conditions, covenants, and protective provisions safeguarding such payment as found to be necessary by the board for the most advantageous sale thereof, which may include but not be limited to:

(a) A covenant that the building fees shall be established, maintained, and collected in such amounts that will provide money sufficient to pay the principal of and interest on all bonds payable out of the bond retirement fund, to set aside and maintain the reserves required to secure the payment of such principal and interest, and to maintain any coverage that may be required over such principal and interest;

(b) A covenant that a reserve account shall be created in the bond retirement fund to secure the payment of the principal of and interest on all bonds issued and a provision made that certain amounts be set aside and maintained therein;

(c) A covenant that sufficient moneys may be transferred from the capital projects account of the joint center for higher education to the bond retirement fund when ordered by the board in the event there is ever an insufficient amount of money in the bond retirement fund to pay any installment of interest or principal and interest coming due on the bonds or any of them;

(d) A covenant fixing conditions under which bonds on a parity with any bonds outstanding may be issued.

The proceeds of the sale of all bonds, exclusive of accrued interest that shall be deposited in the bond retirement fund, shall be deposited in the state treasury to the credit of the capital projects account of the joint center for higher education and shall be used solely for paying the costs of the projects.

NEW SECTION. Sec. 9. For the purpose of paying and securing the payment of the principal of and interest on the bonds as the same shall become due, there shall be paid into the state treasury and credited to the bond retirement fund of the joint center for higher education hereby created, the following:

(1) Amounts derived from building fees as the board certifies as necessary to prevent default in the payments required to be paid into such bond retirement fund;

(2) Any grants that may be made, or may become available, for the purpose of furthering the construction of any authorized projects, or for the repayment of the costs thereof; and

(3) Such additional funds as the legislature may provide.

The bond retirement fund shall be kept segregated from all moneys in the state treasury and shall, while any of such bonds or any interest thereon remains unpaid, be available solely for the payment thereof. As a part of the contract of sale of such bonds, the board shall undertake to charge and collect building fees and to deposit the portion of such fees in the bond retirement fund in amounts that will be sufficient to pay and secure the payment of the principal of, and interest on all such bonds outstanding.

NEW SECTION. Sec. 10. The board may:

(1) Reserve the right to issue bonds later on a parity with any bonds being issued;

(2) Authorize the investing of moneys in the bond retirement fund and any reserve account therein;

(3) Authorize the transfer of money from the joint center for higher education's capital projects account to the bond retirement fund when necessary to prevent a default in the payments required to be made out of such fund;

(4) Create a reserve account or accounts in the bond retirement fund to secure the payment of the principal of and interest on any bonds.

NEW SECTION. Sec. 11. The board may issue refunding bonds to provide funds to refund any or all outstanding bonds payable from the bond retirement fund and to pay any redemption premium payable on such outstanding bonds being refunded. Such refunding bonds may be issued in the manner and on terms and conditions and with the covenants permitted by section 8 of this act for the issuance of bonds. The refunding bonds shall be payable out of the bond retirement fund and shall not constitute an obligation either general or special, of the state or a general obligation of the joint center for higher education or its board. The board may exchange the refunding bonds at par for the bonds that are being refunded or may sell them in such manner, at such price, and at such rate or rates of interest as it deems for the best interest of the joint center.

NEW SECTION. Sec. 12. The bonds authorized to be issued under this chapter shall not be general obligations of the state of Washington, but shall be limited obligation bonds payable only from the special funds created for their payment. The legislature may provide additional means for raising money for the payment of interest and principal of said bonds. Sections 4 through 12 of this act shall not be deemed to provide an exclusive method for such payment. The power given to the legislature by this section to provide for additional means for raising money is permissive, and shall not in any way be construed as a pledge of the general credit of the state of Washington.

Sec. 13. RCW 28B.10.060 and 1991 c 205 s 1 are each amended to read as follows:

(1) The Spokane intercollegiate research and technology institute is hereby ((~~created~~)) established.

(2) The institute shall be operated and administered as a multi-institutional education and research center, housing appropriate programs conducted in Spokane under the authority of Washington State University, Eastern Washington University, and the community colleges of Spokane. Gonzaga University and Whitworth College may participate as full partners in any academic and research activities of the institute.

(3) The institute shall house education and research programs specifically designed to meet the needs of the greater Spokane area.

(4) The coordination of programs and activities at the institute shall be subject to the authority of the joint center for higher education under ((~~RCW 28B.25.020. The institute shall be administered by the joint center~~)) this chapter.

(5) The establishment of any education or research programs at the institute and the lease, purchase, or construction of any site or facility for the institute shall be subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340.

(((6) All cabinets, furniture, office equipment, other tangible property acquired by Washington State University for the institute, all funds, credits, or other assets held by Washington State University for the institute shall be assigned to the joint center for higher education.))

NEW SECTION. Sec. 14. The board of the joint center for higher education shall hire a director of the institute who may hire other staff under chapter 41.06 RCW as necessary to carry out the institute's duties. The director shall exercise such additional powers, other than rule making, as may be delegated by the board by resolution.

NEW SECTION. Sec. 15. The joint center for higher education established under this chapter shall provide central administration services for the institute, including, but not limited to, accounting, budgeting, financial reporting, facilities management, personnel, and purchasing services.

NEW SECTION. Sec. 16. RCW 28B.25.080 and 1991 c 205 s 10 are each repealed.

NEW SECTION. Sec. 17. Sections 3 through 12, 14, and 15 of this act are each added to chapter 28B.25 RCW.