Read first time 01/22/2003.   Referred to Committee on Capital Budget.

     AN ACT Relating to financing contracts for research facilities or equipment of state universities; and amending RCW 28B.10.022 and 39.94.040.

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

Sec. 1   RCW 28B.10.022 and 2002 c 151 s 5 are each amended to read as follows:
     (1) The boards of regents of the state universities and the boards of trustees of the regional universities, The Evergreen State College, and the state board for community and technical colleges, are severally authorized to enter into financing contracts as provided in chapter 39.94 RCW. Except as provided in ((this section)) subsection 2 of this section, financing contracts shall be subject to the approval of the state finance committee. ((Except for facilities financed under chapter 28B.140 RCW,))
     (2) The board of regents of a state university may enter into financing contracts which are payable solely from and secured by all or any component of the fees and revenues of the university derived from its ownership and operation of its facilities not subject to appropriation by the legislature and not constituting "general state revenues," as defined in Article VIII, section 1 of the state Constitution, without the prior approval of the state finance committee.
     (3) Except for financing contracts for facilities or equipment described under chapter 28B.140 RCW, the board of regents shall notify the state finance committee at least sixty days prior to entering into such contract and provide information relating to such contract as requested by the state finance committee.

Sec. 2   RCW 39.94.040 and 2002 c 151 s 6 are each amended to read as follows:
     (1) Except as provided in RCW 28B.10.022 ((and chapter 28B.140 RCW)), the state may not enter into any financing contract for itself 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 and technical colleges, or a state institution of higher learning; or to be acquired by an other agency;
     (b) Approve programs providing for the issuance of certificates of participation in master financing contracts for the state or for other agencies;
     (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) Except for financing contracts for real property used for the purposes described under chapter 28B.140 RCW, the state may not enter into any financing contract for real property of the state without prior approval of the legislature.
     (5) The state may not enter into any financing contract on behalf of an other agency without the approval of such a financing contract by the governing body of the other agency.