BILL REQ. #:  Z-0617.1 

Read first time 02/19/2003.   Referred to Committee on Ways & Means.

     AN ACT Relating to capital construction of and bonding for facilities for institutions of higher education; and adding a new chapter to Title 28B RCW.

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

NEW SECTION.  Sec. 1   SHORT TITLE. This act shall be known as the building Washington's future act.

NEW SECTION.  Sec. 2   INTENT. The state's institutions of higher education are a vital component of the future economic prosperity of our state. In order to ensure that Washington continues to be able to provide a highly qualified work force that can attract businesses and support the economic vitality of the state, it is the intent of this bond act to provide new money for capital projects to help fulfill higher education needs across the state.
     This new source of funding for the critical capital needs of the state's institutions of higher education furthers the mission of higher education and is intended to enhance the abilities of those institutions, over the next ten years, to fulfill their critical roles in maintaining and stimulating the state's economy.
     It is the intent of the legislature that this new source of funding not displace funding levels for the capital and operating budgets of the institutions of higher education. It is instead intended that the new funding will allow the institutions, over the next five biennia, to use the current level of capital funding to provide for many of those urgent preservation, replacement, and maintenance needs that have been deferred due to lack of capital funding. This approach is designed to maintain or improve the current infrastructure of our institutions of higher education, and simultaneously to provide new instruction and research capacity to serve the increasing number of traditional college-aged students and those adults returning to college to update skills or retrain so that they can meet the demands of Washington's changing work force.

NEW SECTION.  Sec. 3   DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Bonds" means bonds, notes, commercial paper, certificates of indebtedness, or other evidences of indebtedness of the state issued under this chapter.
     (2) "General capital facilities funding" means, in any particular biennium, the sum, exclusive of any Washington's future bonds, of: (a) All appropriations of proceeds of new bonds issued for capital facilities purposes; and (b) all new appropriations for the education construction account within the state's capital budget. Reappropriations shall not be included in this calculation.
     (3) "Higher education capital facilities funding" means, in any particular biennium, the sum of all appropriations of general capital facilities funding as defined in subsection (2) of this section, including bond proceeds and nonbond proceeds, for capital projects or facilities for the institutions of higher education.
     (4) "Washington's future bonds" means all or any portion of the general obligation bonds authorized in section 4 of this act.
     (5) "Community and technical colleges" means the community colleges and technical colleges as defined by RCW 28B.50.030.
     (6) "Governing board" means the board of regents of any state research university, the board of trustees of any regional university, and, for any community college and technical college, the state board for community and technical colleges.
     (7) "Regional universities" means Western Washington University at Bellingham, Central Washington University at Ellensburg, Eastern Washington University at Cheney, and The Evergreen State College.
     (8) "State research universities" means the University of Washington and Washington State University.

NEW SECTION.  Sec. 4   WASHINGTON'S FUTURE BONDS AUTHORIZED. (1) For the purpose of providing needed capital improvements consisting of the predesign, design, acquisition, construction, modification, renovation, expansion, equipping, and other improvement of state buildings and facilities for the institutions of higher education, the state finance committee is authorized, under the conditions in section 6 of this act, to issue general obligation bonds of the state of Washington in the sum of one billion seven hundred seventeen million five hundred thousand dollars, or so much thereof as may be required, to finance all or a part of the cost of these projects and all costs incidental thereto. The bonds issued under the authority of this section shall be known as Washington's future bonds.
     (2) Bonds authorized in this section shall be sold in the manner, at the time or times, in amounts, and at such prices as the state finance committee shall determine.
     (3) No bonds authorized in this section may be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds into one or more of the subaccounts created by this chapter for the fulfillment of capital needs of the institutions of higher education.

NEW SECTION.  Sec. 5   BOND ISSUANCE--INTENT. It is the intent of the legislature that the proceeds of new bonds authorized in this chapter will be appropriated in phases over five biennia, beginning with the 2003-2005 biennium, to provide additional funding for capital projects and facilities of the institutions of higher education above historical levels of funding. The legislature further intends that, in each such biennium, and in addition to the Washington's future bonds, the higher education capital facilities funding will be at least equal to forty-eight percent of the general capital facilities funding, that fifty-one percent of the higher education capital facilities funding will be allocated to the state research universities or the regional universities, and that forty-nine percent will be allocated to the state board for community and technical colleges.
     This chapter is not intended to limit the legislature's ability to appropriate bond proceeds if the full amount authorized in this chapter has not been appropriated after five biennia, and the authorization to issue bonds contained in this chapter does not expire until the full authorization has been appropriated and issued.

NEW SECTION.  Sec. 6   TERMS AND COVENANTS. (1) The state finance committee is authorized to prescribe the form, terms, conditions, and covenants of the bonds provided for in this chapter, the time or times of sale of all or any portion of them, and the conditions and manner of their sale and issuance.
     (2) Bonds issued under this chapter shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

NEW SECTION.  Sec. 7   PROCEEDS. (1) The proceeds from the sale of the bonds authorized in section 4 of this act shall be deposited in the higher education construction account in the state treasury created in RCW 28B.14D.040. Upon future legislative appropriation, the proceeds shall be transferred to four subaccounts hereby created in the higher education construction account, as follows:
     (a) Not to exceed seven hundred seventy-two million seven hundred thousand dollars to the community and technical colleges construction subaccount;
     (b) Not to exceed three hundred nineteen million dollars to the state research university branch campuses construction subaccount;
     (c) Not to exceed two hundred three million dollars to the regional universities construction subaccount; and
     (d) Not to exceed four hundred twenty-two million five hundred thousand dollars to the state research universities construction subaccount.
     (2) Proceeds in excess of any subaccount's total allocation may be transferred to the appropriate subaccount on a project-by-project basis, as long as each subaccount's initial allocation of the total bond authorization is preserved.
     (3) The proceeds shall be used exclusively for the purposes in section 4 of this act and for the payment of the expenses incurred in connection with the sale and issuance of the bonds.

NEW SECTION.  Sec. 8   PROJECTS--DESCRIPTION. (1)(a) The proceeds deposited in the community and technical colleges subaccount shall be applied, subject to legislative appropriation, to community and technical college projects, including but not limited to the predesign, design, acquisition, construction, modification, renovation, expansion, replacement, equipping, or other improvement of any of the following projects in the 2003-2005 biennium. However, the state board for community and technical colleges may recommend future biennium projects to include predesign, design, acquisition, construction, modification, renovation, expansion, replacement, and equipping, or improvements:
     (i) At Bellingham Technical College, a welding and auto collision program facility;
     (ii) At Skagit Valley College, a science facility;
     (iii) At Edmonds Community College, basic skills instructional labs and computer labs;
     (iv) At Edmonds Community College, classroom and office space at Mountlake Terrace Hall;
     (v) At Everett Community College, visual and performing arts facilities;
     (vi) At Everett Community College, an undergraduate educational center that may include classrooms and/or office space;
     (vii) At Grays Harbor College, an instructional facility that may include classrooms, science labs, and/or computer labs;
     (viii) At South Puget Sound Community College, a science facility;
     (ix) At Peninsula Community College, a science and technology facility;
     (x) At Bellevue Community College, a science and technology facility;
     (xi) At Cascadia Community College, a center for the arts, technology, and global interaction;
     (xii) At Cascadia Community College, south access to state route 522;
     (xiii) At Green River Community College, a science facility;
     (xiv) At Highline Community College, an allied health facility;
     (xv) At Lake Washington Technical College, the East and West facilities;
     (xvi) At Renton Technical College, facilities for the auto technology and boilermaker training program;
     (xvii) At Seattle Central Community College, facilities for the consolidation of student services and other administrative offices;
     (xviii) At Seattle Central Community College, a learning resource center;
     (xix) At South Seattle Community College, pastry and baking program facilities;
     (xx) At South Seattle Community College, facilities for basic skills instruction and continuing education;
     (xxi) At Spokane Community College, a science facility;
     (xxii) At Spokane Falls Community College, general classroom facilities;
     (xxiii) At Bates Technical College, a south campus learning resource center and vocational training facility;
     (xxiv) At Pierce Fort Steilacoom Community College, a science and technology facility;
     (xxv) At Pierce Puyallup Community College, an allied health and communications arts facility;
     (xxvi) At Tacoma Community College, a multimedia facility;
     (xxvii) At Tacoma Community College, a science facility;
     (xxviii) At Walla Walla Community College, basic skills instructional labs and computer labs;
     (xxix) At Walla Walla Community College, a health science facility;
     (xxx) At Clark College, the east county satellite, including classrooms, science, and computer labs;
     (xxxi) At Lower Columbia College, an allied health facility;
     (xxxii) At Lower Columbia College, facilities for fine arts instruction; and
     (xxxiii) At Wenatchee Community College, a higher education center.
     (b) The proceeds deposited in the state research university branch campuses construction subaccount shall be applied, subject to legislative appropriation, to state research university branch campus projects, including but not limited to the predesign, design, acquisition, construction, modification, renovation, expansion, replacement, equipping, or other improvement of:
     (i) The University of Washington Bothell branch campus;
     (ii) The University of Washington Tacoma branch campus;
     (iii) Additional University of Washington branch campus expansions at either Bothell or Tacoma;
     (iv) Facilities for nursing at the Washington State University Spokane Riverpoint campus;
     (v) The Washington State University Prosser research facility;
     (vi) A Washington State University Tri-Cities bioproducts and sciences facility;
     (vii) A Washington State University Tri-Cities Columbia Basin College campus classroom facility;
     (viii) A Washington State University Vancouver business and education facility; and
     (ix) A Washington State University Vancouver student services center.
     (c) The proceeds deposited in the regional universities construction subaccount shall be applied, subject to legislative appropriation, to regional university projects, including but not limited to the predesign, design, acquisition, construction, modification, renovation, expansion, replacement, equipping, or other improvement of:
     (i) At Western Washington University, an academic instruction center;
     (ii) At The Evergreen State College, the Daniel J. Evans academic library facility;
     (iii) At Central Washington University, the Des Moines Center at Highline Community College;
     (iv) At Eastern Washington University, Cheney Hall;
     (v) At Eastern Washington University, a senior hall;
     (vi) At Western Washington University, Hargreaves Hall;
     (vii) At Eastern Washington University, Showalter Hall;
     (viii) At Central Washington University, the Wenatchee Center at Wenatchee Valley Community College;
     (ix) At Central Washington University, Dean Hall;
     (x) At Central Washington University, the Hogue technology facility; and
     (xi) At Central Washington University, a music facility.
     (d) The proceeds deposited in the state research universities construction subaccount shall be applied, subject to legislative appropriation, to state research university projects, including but not limited to the predesign, design, acquisition, construction, modification, renovation, expansion, replacement, equipping, or other improvement of:
     (i) At the University of Washington, Gould Hall;
     (ii) At the University of Washington, a life sciences facility;
     (iii) At the University of Washington, three to six facilities that will provide new capacity for instruction and research programs where a portion of the capital costs of the projects will be provided by private or federal funds;
     (iv) At the Washington State University, a biotechnology and life sciences facility;
     (v) At the Washington State University, various infrastructure improvements;
     (vi) At the Washington State University, the Johnson Hall plant biosciences facility; and
     (vii) At the Washington State University, a biomedical sciences facility.
     (2) Each biennium, the governing board of each institution of higher education that desires to receive proceeds of bonds issued under this chapter shall submit to the office of financial management, as part of its capital budget submission, a request for funding consistent with the office of financial management's budget instructions.
     (3)(a) An institution receiving an allocation of bond proceeds may use those funds only for a project for which the institution submitted a funding request under this section and for which the funds have been appropriated. However, if the governing board of an institution of higher education or the state board for community and technical colleges determines that a revision of its project list is necessary in order to meet institutional priorities or to respond to changing circumstances, the board may submit a request for such change or changes to the office of financial management consistent with subsection (2) of this section.
     (b) If supplemental funds from any public or private source become available to pay for a portion of a project described in this section, the governing board of the institution may include in its capital budget a request for bond proceeds for the expansion of the project, if necessary, or for an alternative project or projects. The amount of such a request shall not exceed the amount replaced by supplemental funds.

NEW SECTION.  Sec. 9   PAYMENT PROCEDURES. (1) The debt-limit general fund bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in this chapter.
     (2) The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements on the bonds authorized in this chapter.
     (3) On each date on which any interest or principal and interest payment is due on bonds issued under this chapter, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the debt-limit general fund bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.
     (4) The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION.  Sec. 10   BONDS--LEGAL INVESTMENT FOR PUBLIC FUNDS.
The bonds authorized by this chapter shall constitute a legal investment for all state funds or for funds under state control and all funds of municipal corporations.

NEW SECTION.  Sec. 11   ADDITIONAL METHODS OF PAYING DEBT SERVICE AUTHORIZED. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized under this chapter, and section 9 of this act shall not be deemed to provide an exclusive method for payment.

NEW SECTION.  Sec. 12   CHAPTER SUPPLEMENTAL. This chapter provides a complete, additional, and alternative method for accomplishing the purposes of this chapter and is supplemental and additional to powers conferred by other laws. The issuance of bonds and refunding bonds under this chapter need not comply with the requirements of any other law applicable to the issuance of bonds. The issuance of bonds under this chapter shall not be deemed to be the only method to fund the projects described in section 8 of this act.

NEW SECTION.  Sec. 13   CAPTIONS NOT LAW. Captions used in this act are not any part of the law.

NEW SECTION.  Sec. 14   Sections 1 through 13 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION.  Sec. 15   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.