AN ACT Relating to capital improvements for higher education; and adding new sections to chapter 28B.10 RCW.

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

NEW SECTION. Sec. 1. The legislature recognizes that quality in the state's colleges and universities would be strengthened by additional partnerships between citizens, private industry, and the institutions. The legislature intends to foster these partnerships by creating a matching grant program for capital projects at the public institutions of higher education. The intent of the program is to encourage public institutions of higher education to raise money from private sources for capital construction, equipment, renovation and remodeling projects by providing state funds equal to the amounts of private money pledged or contributed for a specific capital project.

NEW SECTION. Sec. 2. The capital challenge program is created. The program shall be administered by the higher education coordinating board. The program shall provide grants to state institutions of higher education to encourage capital improvements which will provide a lasting benefit to the entire state. The grants, equal to the amount of private sources received, shall be awarded to state institutions of higher education by the higher education coordinating board if the capital project meets the criteria established by the board and any new capital construction project is included in a long range capital projects plan.

NEW SECTION. Sec. 3. The Washington capital challenge trust fund is hereby established in the custody of the state treasurer. The higher education coordinating board shall deposit in the fund all moneys received under section 6 of this act and any moneys specifically appropriated to the fund by the legislature. Moneys in the fund may be spent only for the purposes of section 2 of this act. Notwithstanding RCW 43.84.090, all earnings of investments of balances in the fund shall be credited to this fund. Disbursements from the fund shall be made by the treasurer to the institution of higher education's local fund on the authorization of the higher education coordinating board. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

NEW SECTION. Sec. 4. The higher education coordinating board shall have the following powers and duties in administering the program:

(1) To adopt rules necessary to carry out the program. The rules may include establishing an allocation system based on factors including but not limited to: The amount of money available in the trust fund; characteristics of the institution including size of the institution and the role and mission of the institution; the needs of special programs within the institution; the number of previous grants; consistency with state policy; and the length of time necessary to complete the capital project.

(2) To establish an advisory committee to evaluate proposals for grants. The advisory committee shall consist of individuals from the institutions throughout the system capable of assessing whether proposals will have an impact on the quality of education provided in the state and whether the proposal will be consistent with state policy.

(3) To publish criteria for evaluation of proposals for grants.

(4) To solicit grants and provide information to the institutions of higher education about the program.

(5) To report to the legislature at the beginning of each odd-numbered year about the recipients of the grants and the amounts and purpose of the grants.

NEW SECTION. Sec. 5. The higher education coordinating board may decline to approve any grant application. No application need be approved for a grant simply on the basis of moneys being available in the trust fund. Any allocation system may be superseded by conditions in the appropriations act of the legislature.

NEW SECTION. Sec. 6. The higher education coordinating board may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the program and may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

NEW SECTION. Sec. 7. The institution receiving money under this program may deposit such funds in their local fund, but shall only use the funds for the purpose specified in the grant. If the grant is not spent or if the capital project is not completed within the time limit established by the higher education coordinating board the grant moneys shall be returned by the institution to the trust fund.

NEW SECTION. Sec. 8. Sections 1 through 7 of this act are each added to chapter 28B.10 RCW.