"NEW SECTION.  Sec. 1   A new section is added to chapter 43.334 RCW to read as follows:
     (1) The historic preservation grant program is established in the department of archaeology and historic preservation.
     (2) Historic preservation grants may be made by the director from the historic preservation account for the purposes of maintaining, preserving, stabilizing, and restoring properties and structures of historic interest, subject to the conditions and limitations of this section.
     (3)(a) The historic preservation grant advisory board must establish eligibility, application, and selection criteria and procedures in consultation with the director.
     (b) Eligible structures include historic courthouses, theaters, schools, other buildings of historic interest, and historic cemeteries. Eligible projects do not include those provided for through other grant programs with the department of archaeology and historic preservation.
     (c) The director, in consultation with the historic preservation grant advisory board, must establish funding categories for the allocation of available funds. Buildings used as private residences are not eligible to receive grants under this section, and a county courthouse is eligible to receive a grant only if the building continues to be used for county purposes.
     (4) In awarding grants priority must be given as follows: First to stabilization of historic projects; and second to preservation of historic character, features, and materials. Other factors to be considered in the grant award process must include:
     (a) The historic and cultural significance of the project;
     (b) The urgency of the need for repair;
     (c) The extent the project preserves historical character and extends the useful life of the structure;
     (d) Plans for long-term preservation and maintenance of the structure;
     (e) The equitable geographic distribution of historic structures across the state; and
     (f) Whether the structure is listed, or is eligible to be listed, on the national register of historic places, the Washington heritage register, or a local historic register, or is an outstanding example of a type of structure.
     (5) Recipients of grants under this section must demonstrate a public benefit from the grant award, including public access to the historic structure. If the structure is privately owned, the grant recipient must demonstrate that the state has received sufficient consideration for the grant. If the recipient of a grant does not maintain the historic nature of the structure for at least ten years, repayment of the grant must be required. Unless otherwise determined by the director, all work performed on the structure must comply with the federal department of interior standards for the treatment of historic properties.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.334 RCW to read as follows:
     (1) The historic preservation grant advisory board is established to advise the director in the administration of the historic preservation grant program under section 1 of this act.
     (2) Except as otherwise provided in this section, the members of the historic preservation grant advisory board must be appointed by the director and shall serve terms of two years. The board must consist of the following members:
     (a) A representative of the national trust for historic preservation;
     (b) Two additional persons representing nonprofit historic preservation organizations or public development authorities targeted to historic preservation;
     (c) One member of the advisory council on historic preservation under RCW 27.34.250;
     (d) Two persons representing private industry;
     (e) Two persons representing state agencies;
     (f) Two persons representing local governments;
     (g) One member from each of the two largest caucuses of the senate, to be appointed by the president of the senate; and
     (h) One member from each of the two largest caucuses of the house of representatives, to be appointed by the speaker of the house of representatives.
     (3) The board may establish bylaws governing the conduct of its business and must select a chair from among its members. Legislative members of the board must be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members of the board must be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.334 RCW to read as follows:
     The historic preservation grant account is created in the custody of the state treasurer. All receipts from legislative appropriations and public and private contributions to the historic preservation grant program must be deposited in the account. Expenditures from the account may be used only for the purposes of section 1 of this act. Only the director or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 4   RCW 43.79A.040 and 2009 c 87 s 4 are each 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)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) 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 Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the toll collection account, the developmental disabilities endowment trust fund, the energy account, the fair fund, the family leave insurance account, the food animal veterinarian conditional scholarship account, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the GET ready for math and science scholarship account, the grain inspection revolving fund, the historic preservation grant account, the juvenile accountability incentive account, the law enforcement officers' and firefighters' plan 2 expense fund, the local tourism promotion account, the pilotage account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund and breeder awards account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, the Washington state heritage center account, the reduced cigarette ignition propensity account, and the reading achievement account. 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.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right-of-way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (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. 5   The sum of . . . . . . dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2011, from the general fund to the historic preservation grant account for the purposes of this act.

NEW SECTION.  Sec. 6   The office of the code reviser may alphabetize the names of the accounts in RCW 43.79A.040 during codification.

NEW SECTION.  Sec. 7   Section 4 of this act takes effect July 1, 2010."