AN ACT Relating to higher education; amending RCW 28B.10.870; amending section 12, chapter 8, Laws of 1987 (uncodified); adding a new section to chapter 28B.102 RCW; adding a new section to Title 28B RCW; adding a new chapter to Title 28B RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that G. Robert Ross, immediate past president of Western Washington University, was an exemplary university president who helped lead his school to a position of increasing excellence and national prominence. Dr. Ross was a convincing spokesperson for excellence in all areas of education and was a leader who strongly encouraged the faculty and staff at Western Washington University to be actively involved in the pursuit of scholarly activities.

The legislature wishes to honor the public spirit, dedication, integrity, perseverance, inspiration, and accomplishments of Western Washington University faculty through the creation of the G. Robert Ross Distinguished Faculty Award.

NEW SECTION. Sec. 2. The G. Robert Ross distinguished faculty award is hereby established. The board of trustees at Western Washington University shall establish the guidelines for the selection of the recipients of the G. Robert Ross distinguished faculty award. The board shall establish a local endowment fund for the deposit of all state funds appropriated for this purpose and any private donations. The board shall administer the endowment fund and the award. The principal of the invested endowment fund shall not be invaded and the proceeds from the endowment fund may be used to supplement the salary of the holder of the award, to pay salaries of his or her assistants, and to pay expenses associated with the holder's scholarly work.

Sec. 3. Section 5, chapter 8, Laws of 1987 and RCW 28B.10.870 are each amended to read as follows:

All state four-year institutions of higher education shall be eligible for matching trust funds. An institution may apply to the higher education coordinating board for two hundred fifty thousand dollars from the fund when the institution can match the state funds with an equal amount of pledged or contributed private donations or with funds received through legislative appropriation specifically for the G. Robert Ross distinguished faculty award and designated as being qualified to be matched from trust fund moneys. These donations shall be made specifically to the professorship program, and shall be donated after July 1, 1985.

Upon an application by an institution, the board may designate two hundred fifty thousand dollars from the trust fund for that institution's pledged professorship. If the pledged two hundred fifty thousand dollars is not received within three years, the board shall make the designated funds available for another pledged professorship.

Once the private donation is received by the institution, the higher education coordinating board shall ask the state treasurer to release the state matching funds to a local endowment fund established by the institution for the professorship.

Sec. 4. Section 12, chapter 8, Laws of 1987 (uncodified) is amended to read as follows:

(1) For the biennium ending June 30, 1989, all appropriations to the Washington distinguished professorship trust fund shall be allocated as provided in this section. The state treasurer shall reserve the following amounts in the trust fund for distribution to four-year higher education institutions at such time as qualifying gifts as defined in section 1 of this act for distinguished professorships have been deposited:

(a) ((~~Forty-five percent~~)) Two million two hundred fifty thousand dollars of the appropriation for the University of Washington;

(b) ((~~Thirty percent~~)) One million five hundred thousand dollars of the appropriation for Washington State University;

(c) ((~~Twenty-five percent~~)) One million dollars of the appropriation divided among Eastern Washington University, Central Washington University, Western Washington University, and The Evergreen State College.

(2) Distribution of funds allocated in subsection (1)(c) of this section shall be made in the following manner: Eastern Washington University, Central Washington University, Western Washington University, and The Evergreen State College are guaranteed one professorship. ((The remaining professorship shall be allocated on a first come first served basis to a regional university or The Evergreen State College which has used the professorship guaranteed it, and qualified for an additional professorship under section 5 of this act. If the regional universities and The Evergreen State College have not obligated the unassigned professorship by May 1, 1989, that professorship may be allocated to either the University of Washington or Washington State University in accordance with rules promulgated by the higher education coordinating board.))

(3) As of January 1, 1989, if any funds reserved in subsection (1) (a) or (b) of this section have not been designated as matching funds for qualifying gifts, any four-year institution of higher education, which has already fully utilized the professorships allocated to it by this section, and, in the case of the regional universities and The Evergreen State College, has exhausted the allocation in subsection (1)(c) of this section, may be eligible for such funds under rules promulgated by the higher education coordinating board.

NEW SECTION. Sec. 5. The sum of two hundred fifty thousand dollars is appropriated for the biennium ending June 30, 1989, from the state general fund to the Western Washington University for deposit in the G. Robert Ross distinguished faculty endowment fund. The appropriation in this section shall fulfill the matching requirements in RCW 28B.10.870 for an additional two hundred fifty thousand dollars from the distinguished professorship trust fund. This appropriation along with the matching money from the distinguished professorship trust fund will result in a total amount of five hundred thousand dollars to be deposited into the G. Robert Ross distinguished faculty endowment fund.

NEW SECTION. Sec. 6. Section 2 of this act is added to Title 28B RCW.

NEW SECTION. Sec. 7. A new section is added to chapter 28B.102 RCW to read as follows:

The board may waive grade point requirements for an otherwise eligible individual student under special circumstances.

NEW SECTION. Sec. 8. The legislature finds it essential that this and future generations of children be allowed the fullest opportunity to learn and to develop their intellectual and mental capacities and skills at the postsecondary level. The legislature is greatly concerned about the ever-increasing costs of obtaining higher education. The purpose of this chapter is to assist Washington residents in their quest for higher education and to encourage financial planning to meet higher education costs by creating a college savings bond program.

NEW SECTION. Sec. 9. The following definitions shall apply throughout this chapter, unless the context clearly indicates otherwise:

(1) "College savings bonds" or "bonds" are Washington state general obligation bonds, issued under the authority of and in accordance with this chapter.

(2) "Board" means the higher education coordinating board, or any successor thereto.

NEW SECTION. Sec. 10. For the purpose of providing funds for the acquisition, construction, remodeling, furnishing, and equipping of state buildings and facilities for the state institutions of higher education, including facilities for the state community college system, and to provide for the administrative costs of such projects, including costs of bond issuance and retirement, salaries and related costs of officials and employees of the state, costs of credit enhancement agreements, and other expenses incidental to the administration of capital projects, the state finance committee is authorized to issue college savings bonds of the state of Washington in the sum of fifty million dollars, or so much thereof as may be required, to finance these projects and all costs incidental thereto.

Bonds authorized in this section shall be sold in such a manner, at such time or times, in such amounts, and at such price as the state finance committee shall determine. The bonds shall not be offered for sale without prior legislative appropriation of the net proceeds of the sale of the bonds. The state finance committee may obtain insurance or letters of credit and may authorize the execution and delivery of agreements, promissory notes, and other obligations for the purpose of insuring the payment or enhancing the marketability of college savings bonds authorized in this section. Promissory notes or other obligations issued pursuant to this section shall not constitute a debt or the contracting of indebtedness under any constitutional or statutory indebtedness limitation if their payment is conditioned upon the failure of the state to pay the principal of or interest on the bonds with respect to which the same relate.

If, and to the extent that the state finance committee determines it is economically feasible and in the best interest of the state, the bonds shall be sold at a deep discount from their par value.

College savings bonds authorized under this section shall be sold in accordance with chapter 39.42 RCW.

NEW SECTION. Sec. 11. The proceeds from the sale of the bonds authorized in section 10 of this act shall be deposited in the state building construction account of the general fund in the state treasury, and shall be used exclusively for the purposes specified in section 10 of this act and for the payment of expenses incurred in the issuance and sale of the college savings bonds.

NEW SECTION. Sec. 12. The state higher education bond retirement fund of 1988 is hereby created in the state treasury, and shall be used for the payment of principal and interest on the college savings bonds.

The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount required for principal and interest on such bonds in accordance with the provisions of the bond proceedings. The state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state higher education bond retirement fund of 1988, such amounts and at such times as are required by the bond proceedings. If directed by the state finance committee by resolution, the state higher education bond retirement fund of 1988, or any portion thereof, may be deposited in trust with any qualified public depository.

The owner and holder of each of the college savings bonds or the trustee for the owner and holder of any of the college savings bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 13. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the college savings bonds. Section 12 of this act shall not be deemed to provide an exclusive method for the payment thereof.

NEW SECTION. Sec. 14. The college savings bonds shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 15. The board and the state finance committee shall evaluate the effectiveness of the college savings bond program created by this chapter, and shall submit a report about the program, and recommended changes, to the governor and the appropriate standing committees of the senate and house of representatives on or before December 1, 1990. In the report, the board shall consider the advisability of offering incentives to purchase college savings bonds.

NEW SECTION. Sec. 16. The board and the state finance committee shall create and implement marketing strategies and educational programs designed to publicize the college savings bond program to Washington residents.

NEW SECTION. Sec. 17. Any interest earned on the bonds shall not be income for the purposes of any state income tax.

NEW SECTION. Sec. 18. This chapter may be known and cited as the college savings bond act of 1988.

NEW SECTION. Sec. 19. Sections 8 through 18 of this act shall constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 20. 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.