[atlas:bill]

AN ACT Relating to heritage capital project funding; amending RCW 27.34.330; and creating a new section.

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

Sec. 1. RCW 27.34.330 and 1999 c 295 s 2 are each amended to read as follows:

The Washington state historical society shall establish a competitive process to solicit proposals for and prioritize heritage capital projects for potential funding in the state capital budget. The society shall adopt rules governing project eligibility and evaluation criteria. Rules governing evaluation criteria must specify objective criteria; the method by which applications will be measured against the criteria; and the method by which applications will be ranked against other applications. The society must provide project applicants with an explanation of the criteria that a successful applicant must meet. Application for funding of specific projects may be made to the society by local governments, public development authorities, nonprofit corporations, tribal governments, and other entities, as determined by the society. Applications must include an independent financial statement.

An advisory panel is established to determine project funding guidelines and review project applications. The advisory panel consists of at least five members appointed by each of the following: The Washington museum association; the eastern Washington state historical society; the office of the secretary of state; the office of archaeology and historic preservation; and other members appointed by the director of the Washington state historical society as necessary. Advisory panel members must have relevant, demonstrated interest or expertise in the heritage field, and they must reflect the state's cultural and geographic diversity. The society, with the advice of ((leaders in the heritage field, including but not limited to representatives from the office of the secretary of state, the eastern Washington state historical society, and the state office of archaeology and historic preservation)) the advisory panel, shall establish and submit a prioritized list of heritage capital projects to the governor and the legislature in the society's biennial capital budget request. The list shall include a description of each project, the amount of recommended state funding, and documentation of nonstate funds to be used for the project. The total amount of recommended state funding for projects on a biennial project list shall not exceed four million dollars. The department may provide an additional alternate project list which shall not exceed five hundred thousand dollars. The prioritized list shall be developed through open and public meetings and the amount of state funding shall not exceed thirty-three percent of the total cost of the project. The nonstate portion of the total project cost may include cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions. The department shall not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list of projects. In contracts for grants authorized under this section, the society shall include provisions requiring that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee shall repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant.

NEW SECTION. Sec. 2. By December 15, 2002, the Washington state historical society must report to the ways and means committee of the senate and the capital budget committee of the house of representatives on evaluation criteria and procedures for awarding heritage capital projects.