BILL REQ. #:  H-1216.2 

Read first time 02/19/13.   Referred to Committee on Higher Education.

     AN ACT Relating to meeting industry demand for higher education and training credentials; reenacting and amending RCW 43.79A.040; adding a new section to chapter 82.32 RCW; and adding a new chapter to Title 28B RCW.

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

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Council" means the student achievement council.
     (2) "High employer demand program of study" means an apprenticeship, or an undergraduate or graduate certificate or degree program in which the number of students prepared for employment per year from in-state institutions is substantially less than the number of projected job openings per year in that field, statewide or in a substate region.
     (3) "High-demand occupation" means an occupation with a substantial number of current or projected employment opportunities.

NEW SECTION.  Sec. 2   (1) The meeting industry demand program is established. The program has a dual purpose to:
     (a) Meet the higher education needs of industry by expanding high-cost, high employer demand programs of study and postsecondary programs that prepare students for high demand occupations; and
     (b) Incentivize institutions of higher education to expand high-cost postsecondary programs that meet industry demands.
     (2)(a) Postsecondary programs that qualify for program grants are as follows:
     (i) High employer demand programs of study that are considered high-cost programs relative to other postsecondary programs;
     (ii) Postsecondary programs that prepare individuals for high demand occupations that are considered high-cost programs relative to other postsecondary programs; or
     (iii) Postsecondary program prerequisites or programs that form part of the pathway for programs under (a)(i) or (ii) of this subsection.
     (b) In awarding grants priority must be given to programs that can demonstrate industry support.
     (3) The council must administer the program, including the following duties:
     (a) Manage the solicitation of competitive requests for proposals from the four-year institutions of higher education and the selection process;
     (b) Enter into an interagency agreement with the state board for community and technical colleges who shall manage the solicitation of competitive requests for proposals from the community and technical colleges and manage the selection process; and
     (c) Identify the appropriate programs and course codes that qualify for grants under subsection (2) of this section every two years and based on the most recent assessment of the number and type of higher education and training credentials required to match employer demand for a skilled and educated workforce as in RCW 28B.77.080; and
     (d) By December 1, 2014, and every two years thereafter, and in compliance with RCW 43.01.036, the council must submit a report to the governor and the higher education and appropriation committees of the legislature that details: (i) The grants awarded; and (ii) the level of expansion in high employer demand programs of study and programs that prepare individuals for high demand occupations.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.32 RCW to read as follows:
     (1) By May 1, 2015, and by May 1st of every year thereafter, the department must annually estimate the increase in state revenue for the current fiscal year resulting from the expiration of the research and development tax credit in RCW 82.04.4452 and certify the estimated amount to the state treasurer.
     (2)(a) By July 1, 2015, and by July 1st of every year thereafter, the state treasurer must transfer the amount certified by the department under subsection (1) of this section into the meeting industry demand account hereby created in the custody of the state treasurer.
     (b) Money in the account must be used solely for the purposes specified in section 2 of this act with fifty percent of the moneys solely for meeting industry demand program grants at two-year institutions of higher education and fifty percent of the moneys solely for meeting industry demand program grants at the four-year institutions of higher education.
     (c) Only the director of the council or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. The account may retain all of the interest earnings.

Sec. 4   RCW 43.79A.040 and 2012 c 198 s 8, 2012 c 196 s 6, 2012 c 187 s 13, and 2012 c 114 s 3 are each reenacted and 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, and may be commingled with moneys in the state treasury for cash management and cash balance purposes.
     (2) All income received from investment of the treasurer's trust fund must 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 must occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer must distribute the earnings credited to the investment income account to the state general fund except under (b), (c), and (d) of this subsection.
     (b) The following accounts and funds must 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 Washington advanced college tuition payment program account, the accessible communities account, the community and technical college innovation 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 basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the county enhanced 911 excise tax account, 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 Washington global health technologies and product development account, the grain inspection revolving fund, the industrial insurance rainy day fund, the juvenile accountability incentive account, the law enforcement officers' and firefighters' plan 2 expense fund, the local tourism promotion account, the meeting industry demand account, the multiagency permitting team 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 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, ((and)) the reduced cigarette ignition propensity account, the center for childhood deafness and hearing loss account, ((and)) the school for the blind account, the Millersylvania park trust fund, the public employees' and retirees' insurance reserve fund, and the radiation perpetual maintenance fund.
     (c) The following accounts and funds must 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 federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (d) Any state agency that has independent authority over accounts or funds not statutorily required to be held in the custody of the state treasurer that deposits funds into a fund or account in the custody of the state treasurer pursuant to an agreement with the office of the state treasurer shall receive its proportionate share of earnings based upon each account's or fund's average daily balance for the period.
     (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   Sections 1 and 2 of this act constitute a new chapter in Title 28B RCW.