AN ACT Relating to school district capital expenditures for equipment and furnishings; amending RCW 84.52.053 and 28A.58.441; and declaring an emergency.

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

Sec. 1. Section 3, chapter 325, Laws of 1977 ex. sess. as last amended by section 103, chapter 2, Laws of 1987 1st ex. sess. and RCW 84.52.053 are each amended to read as follows:

(1) The limitations imposed by RCW 84.52.050 through 84.52.056, and RCW 84.52.043 shall not prevent the levy of additional taxes by school districts, when authorized so to do by the electors of such school district in the manner ((~~and for the purposes and number of years allowable under~~)) set forth in Article VII, section 2(a) of the Constitution of this state, as amended by Amendment 79 and as thereafter amended, at a special or general election to be held in the first year in which the levy is made ((or, in the case of a proposition authorizing two-year levies for maintenance and operation support of a school district or authorizing two-year through six-year levies to support the construction, modernization, or remodeling of school facilities, or both, at a special or general election to be held in the year in which the first annual levy is made: PROVIDED, That)).

(2) Additional taxes authorized by this section are limited to:

(a) Levies for a maximum of two years for the purposes of maintenance and operation support of a school district. Tax revenues from such levies shall be deposited in the district's general fund established under RCW 28A.58.441(1). Once an additional tax ((~~levies have~~)) levy has been authorized for maintenance and operation support of a school district ((~~for a two year period~~)), no further additional tax levies for maintenance and operation support of the district for ((~~that period~~)) any year of the levy may be authorized.

(b) Levies for a maximum of six years for construction, modernization, or remodeling of school facilities. Tax revenues from such levies shall be deposited in the district's capital projects fund established under RCW 28A.58.441(2). In the case of levies authorized by the electors after February 2, 1988, such tax revenues may be used for purchases and installation of any computer equipment, whether or not a fixture, and any portable equipment or furnishings, only if:

(i) The purchases are incidental to the construction or modernization of a facility and are to equip such facility;

(ii) In the case of each such facility, other than a vocational-technical institute facility or a facility for a vocational skills center cooperative, the aggregate cost of the purchases and installation does not exceed ten percent of the total cost of the construction or modernization project; and

(iii) In the case of each such vocational-technical institute facility or facility for a vocational skills center cooperative, the aggregate cost of the purchases and installation does not exceed twenty percent of the total cost of the construction or modernization project.

(c) Levies for one year for the purposes enumerated under RCW 28A.58.441(2). Tax revenues from such levies shall be deposited in the district's capital projects fund established under RCW 28A.58.441(2).

(d) Levies for one year for the purchase or major repair of pupil transportation vehicles. Tax revenues from such levies shall be deposited in the district's transportation vehicle fund established under RCW 28A.58.428.

(3) A special election may be called and the time therefor fixed by the board of school directors, by giving notice thereof by publication in the manner provided by law for giving notices of general elections, at which special election the proposition authorizing such excess levy shall be submitted in such form as to enable the voters favoring the proposition to vote "yes" and those opposed thereto to vote "no".

(4) For the purposes of this section:

(a) "Modernization" means major structural changes and may include as incidental thereto minor structural changes in a facility in order to bring it up to a contemporary state and extend its useful life.

(b) "Portable equipment or furnishings" means any furniture, apparatus, supplies, or equipment which is not a fixture.

(d) "Computer equipment" means an electronic computer, and any associated or peripheral software and hardware, excluding wiring, used for administrative or instructional purposes.

(e) "Total cost of the construction or modernization project" means the sum of the costs of construction or modernization of the facility and the costs of the equipment purchases, and installation incidental thereto, but shall not include costs of land acquisition and site preparation.

Sec. 2. Section 2, chapter 250, Laws of 1981 as last amended by section 13, chapter 59, Laws of 1983 and RCW 28A.58.441 are each amended to read as follows:

School districts shall establish the following funds in addition to those provided elsewhere by law:

(1) A general fund for maintenance and operation of the school district to account for all financial operations of the school district except those required to be accounted for in another fund.

(2) A capital projects fund shall be established for major capital purposes. All statutory references to a "building fund" shall mean the capital projects fund so established. Money to be deposited into the capital projects fund shall include, but not be limited to, bond proceeds, proceeds from excess levies authorized by RCW 84.52.053, state apportionment proceeds as authorized by RCW 28A.41.143, and earnings from capital projects fund investments as authorized by RCW 28A.58.435 and 28A.58.440.

Money derived from the sale of bonds, including interest earnings thereof, may only be used for those purposes described in RCW 28A.51.010, except that accrued interest paid for bonds shall be deposited in the debt service fund.

Money to be deposited in the capital projects fund shall include tax revenues derived from multi-year levies for construction, modernization, or remodeling of school facilities, and such revenues may only be used for those purposes described in RCW 84.52.053(2)(b).

Money to be deposited into the capital projects fund shall include but not be limited to rental and lease proceeds as authorized by RCW 28A.58.035, and proceeds from the sale of real property as authorized by RCW 28A.58.0461.

Money legally deposited into the capital projects fund from other sources may be used for the purposes described in RCW 28A.51.010, and for the purposes of:

(a) Major renovation, including the replacement of facilities and systems where periodical repairs are no longer economical. Major renovation and replacement shall include, but shall not be limited to, roofing, heating and ventilating systems, floor covering, and electrical systems.

(b) Renovation and rehabilitation of playfields, athletic fields, and other district real property.

(c) The conduct of preliminary energy audits and energy audits of school district buildings. For the purpose of this section:

(i) "Preliminary energy audits" means a determination of the energy consumption characteristics of a building, including the size, type, rate of energy consumption, and major energy using systems of the building.

(ii) "Energy audit" means a survey of a building or complex which identifies the type, size, energy use level, and major energy using systems; which determines appropriate energy conservation maintenance or operating procedures and assesses any need for the acquisition and installation of energy conservation measures, including solar energy and renewable resource measures.

(iii) "Energy capital improvement" means the installation, or modification of the installation, of energy conservation measures in a building which measures are primarily intended to reduce energy consumption or allow the use of an alternative energy source.

(d) Those energy capital improvements which are identified as being cost-effective in the audits authorized by this section.

(e) Purchase or installation of additional major items of equipment and furniture: PROVIDED, That vehicles shall not be purchased with capital projects fund money.

(3) A debt service fund to provide for tax proceeds, other revenues, and disbursements as authorized in chapter 39.44 RCW.

(4) An associated student body fund as authorized by RCW 28A.58.120.

(5) Advance refunding bond funds and refunded bond funds to provide for the proceeds and disbursements as authorized in chapter 39.53 RCW.

NEW SECTION. Sec. 3. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.