AN ACT Relating to tuition fees; amending RCW 28B.15.025, 28B.15.067, 28B.15.202, 28B.15.402, and 28B.15.502; reenacting and amending RCW 28B.50.360; and providing an effective date.

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

Sec. 1. Section 12, chapter 390, Laws of 1985 and RCW 28B.15.025 are each amended to read as follows:

The term "building fees" means the building fee((s)), surcharge, and matching funds imposed or authorized under RCW 28B.15.202, 28B.15.402, and 28B.15.502 charged students registering at the state's colleges and universities((~~, which~~)). The building fees are to be used as follows: At the University of Washington, solely for the purposes provided in RCW 28B.15.210; at Washington State University, solely for the purposes provided in RCW 28B.15.310; at each of the regional universities and at The Evergreen State College, solely for the purposes provided in RCW 28B.35.370; and at the community colleges, for the purposes provided in RCW 28B.50.320, 28B.50.360 and 28B.50.370. The community college building fee surcharge and matching funds shall be paid into the state treasury and deposited in the community college capital projects account pursuant to RCW 28B.50.360(2). The term "building fee((s))" is a renaming of the "general tuition fee," and shall not be construed to affect otherwise moneys pledged to, or used for bond retirement purposes.

It is the intent of the legislature that the building fee surcharge authorized under RCW 28B.15.202, 28B.15.402, and 28B.15.502 shall be considered to be a revision in tuition for the purposes of calculating financial aid pursuant to RCW 28B.15.065.

Sec. 2. Section 2, chapter 257, Laws of 1981 as last amended by section 1, chapter 42, Laws of 1986 and RCW 28B.15.067 are each amended to read as follows:

Except for the building fee surcharge authorized by RCW 28B.15.202(8), 28B.15.402(7), and 28B.15.502(6), tuition fees shall be established and adjusted annually under the provisions of this chapter beginning with the 1987-88 academic year. Such fees shall be identical, subject to other provisions of this chapter, for students enrolled at either state university, for students enrolled at the regional universities and The Evergreen State College and for students enrolled at any community college. Tuition fees shall reflect the undergraduate and graduate educational costs of the state universities, the regional universities and the community colleges, respectively, in the amounts prescribed in this chapter. The change from the biennial tuition fee adjustment to an annual tuition fee adjustment shall not reduce the amount of revenue to the state general fund.

Sec. 3. Section 6, chapter 257, Laws of 1981 as last amended by section 19, chapter 390, Laws of 1985 and RCW 28B.15.202 are each amended to read as follows:

Tuition fees and services and activities fees at the University of Washington and at Washington State University for other than summer quarters or semesters shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one-third of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be one hundred and twenty dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(2) For full time resident graduate students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be twenty-three percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be one hundred and twenty dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(3) For full time resident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (2) above: PROVIDED, That ((~~the building fees for each academic year shall be three hundred and forty-two dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(4) For full time nonresident undergraduate students and such other full time nonresident students not in graduate study programs or enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, or doctor of veterinary medicine, the total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be three hundred and fifty-four dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(5) For full time nonresident graduate students not enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be four thousand and seventy-four dollars, and thereafter such fees shall be sixty percent of the per student graduate educational costs at the state universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be three hundred and fifty-four dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(6) For full time nonresident students enrolled in programs leading to the degrees of doctor of medicine, doctor of dental surgery, and doctor of veterinary medicine, the total tuition fees shall be one hundred sixty-seven percent of such fees charged in subsection (5) above: PROVIDED, That ((~~the building fees for each academic year shall be five hundred and fifty-five dollars~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(7) The boards of regents of each of the state universities shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) through (6) hereof a services and activities fee which for each year of the 1981-83 biennium shall not exceed one hundred and thirty-eight dollars. In subsequent biennia the board of regents may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) above: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(8) In addition to the tuition and fees imposed under this section, the boards of regents at each of the state universities may impose a building fee surcharge in the manner provided in this subsection. The building fee surcharge shall be expressed as a percentage of tuition fees as defined in RCW 28B.15.020. The building fee surcharge shall not exceed ten percent of tuition fees and shall not apply to the summer term. For each state fiscal biennium, the board may impose the surcharge by November 10 of the year prior to the beginning of the fiscal biennium. Any subsequent modification of the surcharge shall not take effect until the end of the fiscal biennium for which the surcharge was imposed. Once imposed, the building fee surcharge shall not be reduced by the board if the reduction will result in the inability of the applicable bond retirement fund to pay the principal and interest on bonds for which the building fee surcharge revenue was pledged.

No surcharge under this subsection may be imposed or increased by the board of regents without the consultation of the student services and activities fee committee established under RCW 28B.15.045.

The revenue generated from the building fee surcharge, together with a matching amount of operating fee revenue, shall be deposited in the state treasury as provided in RCW 28B.15.025 and shall be used solely for the capital purposes of the individual university imposing the surcharge.

This subsection is intended to provide additional resources to the state's institutions of higher education to address the institutions' unmet needs for capital improvements. The imposition of a surcharge by an institution of higher education under this subsection shall not be a prerequisite to the receipt by that institution of other appropriations for capital improvements.

Sec. 4. Section 7, chapter 257, Laws of 1981 as last amended by section 1, chapter 245, Laws of 1989 and RCW 28B.15.402 are each amended to read as follows:

Tuition fees and services and activities fees at the regional universities and The Evergreen State College for other than summer quarters or semesters shall be as follows:

(1) For full time resident undergraduate students and all other full time resident students not in graduate study programs, the total tuition fees shall be one-fourth of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be seventy-six dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(2) For full time resident graduate students, the total tuition fees shall be twenty-three percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be seventy-six dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(3) For full time nonresident undergraduate students and all other full time nonresident students not in graduate study programs, the total tuition fees shall be one hundred percent of the per student undergraduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be two hundred and ninety-five dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(4) For full time nonresident graduate students, the total of tuition fees shall be seventy-five percent of the per student graduate educational costs at the regional universities computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be two hundred and ninety-five dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal nine percent of the tuition level established in this subsection.

(5) The boards of trustees of each of the regional universities and The Evergreen State College shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) through (4) hereof a services and activities fee which for each year of the 1981-83 biennium shall not exceed one hundred eighty-four dollars and fifty cents. In subsequent biennia the board of trustees may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) above: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(6) Notwithstanding the provisions of RCW 28B.15.067, for the 1989-91 biennium the undergraduate and graduate cost relationship developed by the 1987 cost study for Central Washington University shall be used to establish tuition fees for the regional universities and The Evergreen State College.

(7) In addition to the tuition and fees imposed under this section, the boards of trustees at each of the regional universities and The Evergreen State College may impose a building fee surcharge in the manner provided in this subsection. The building fee surcharge shall be expressed as a percentage of tuition fees as defined in RCW 28B.15.020. The building fee surcharge shall not exceed ten percent of tuition fees and shall not apply to the summer term. For each state fiscal biennium, the board may impose the surcharge by November 10 of the year prior to the beginning of the fiscal biennium. Any subsequent modification of the surcharge shall not take effect until the end of the fiscal biennium for which the surcharge was imposed. Once imposed, the building fee surcharge shall not be reduced by the board if the reduction will result in the inability of the applicable bond retirement fund to pay the principal and interest on bonds for which the building fee surcharge revenue was pledged.

No surcharge under this subsection may be imposed or increased by the board of trustees without the consultation of the student services and activities fee committee established under RCW 28B.15.045.

Sec. 5. Section 8, chapter 257, Laws of 1981 as last amended by section 25, chapter 390, Laws of 1985 and RCW 28B.15.502 are each amended to read as follows:

Tuition fees and services and activities fees at each community college other than at summer quarters shall be as follows:

(1) For full time resident students, the total tuition fees shall be twenty-three percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be one hundred and twenty-seven dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal twenty percent of the tuition level established in this subsection.

(2) For full time nonresident students, the total tuition fees shall be one hundred percent of the per student educational costs at the community colleges computed as provided in RCW 28B.15.067 and 28B.15.070: PROVIDED, That ((~~the building fees for each academic year shall be four hundred and three dollars and fifty cents~~)) beginning July 1, 1991, the building fee for each academic year shall equal twenty percent of the tuition level established in this subsection.

(3) The boards of trustees of each of the state community colleges shall charge and collect equally from each of the students registering at the particular institution and included in subsections (1) and (2) hereof a services and activities fee which for each year of the 1981-83 biennium shall not exceed sixty-four dollars and fifty cents. In subsequent biennia the board of trustees may increase the existing fee, consistent with budgeting procedures set forth in RCW 28B.15.045, by a percentage not to exceed the percentage increase in tuition fees authorized in subsection (1) above: PROVIDED, That such percentage increase shall not apply to that portion of the services and activities fee previously committed to the repayment of bonded debt. The services and activities fee committee provided for in RCW 28B.15.045 may initiate a request to the governing board for a fee increase.

(4) Tuition and services and activities fees consistent with the above schedule will be fixed by the state board for community colleges for summer school students.

(5) The board of trustees shall charge such fees for ungraded courses, noncredit courses, community services courses, and self-supporting short courses as it, in its discretion, may determine, not inconsistent with the rules and regulations of the state board for community college education.

(6) In addition to the tuition and fees imposed under this section, the boards of trustees at each of the state's community colleges may impose a building fee surcharge in the manner provided in this subsection. The building fee surcharge shall be expressed as a percentage of tuition fees as defined in RCW 28B.15.020. The building fee surcharge shall not exceed ten percent of tuition fees and shall not apply to the summer term. For each state fiscal biennium, the board may impose the surcharge by November 10 of the year prior to the beginning of the fiscal biennium. Any subsequent modification of the surcharge shall not take effect until the end of the fiscal biennium for which the surcharge was imposed. Once imposed, the building fee surcharge shall not be reduced by the board if the reduction will result in the inability of the applicable bond retirement fund to pay the principal and interest on bonds for which the building fee surcharge revenue was pledged.

No surcharge under this subsection may be imposed or increased by the board of trustees without the consultation of the student services and activities fee committee established under RCW 28B.15.045.

If a building fee surcharge is imposed under this section in a community college district with more than one campus, the surcharge shall apply uniformly to all campuses of that district.

This subsection is intended to provide additional resources to the state's institutions of higher education to address the institutions' unmet needs for capital improvements. The imposition of a surcharge by an institution of higher education under this section shall not be a prerequisite to the receipt by that institution of other appropriations for capital improvements.

Sec. 6. Section 20, chapter 15, Laws of 1970 ex. sess. as last amended by section 16, chapter 57, Laws of 1985 and by section 56, chapter 390, Laws of 1985 and RCW 28B.50.360 are each reenacted and amended to read as follows:

There is hereby created in the state treasury a community college bond retirement fund. Except as provided in RCW 28B.15.025, within thirty-five days from the date of start of each quarter all building fees of each such community college shall be paid into the state treasury, and shall be credited as follows:

(1) On or before June 30th of each year the college board if issuing bonds payable out of building fees shall certify to the state treasurer the amounts required in the ensuing twelve-month period to pay and secure the payment of the principal of and interest on such bonds. The state treasurer shall thereupon deposit the amounts so certified in the community college bond retirement fund which fund as required, is hereby created in the state treasury. Such amounts of the funds deposited in the bond retirement fund as are necessary to pay and secure the payment of the principal of and interest on the building bonds issued by the college board as authorized by this chapter shall be exclusively devoted to that purpose. If in any twelve-month period it shall appear that the amount certified by the college board is insufficient to pay and secure the payment of the principal of and interest on the outstanding building bonds, the state treasurer shall notify the college board and such board shall adjust its certificate so that all requirements of moneys to pay and secure the payment of the principal and interest on all such bonds then outstanding shall be fully met at all times.

(2) That portion of the building fees not required for or in excess of the amounts necessary to pay and secure the payment of any of the bonds as provided in subsection (1) above shall be deposited in the community college capital projects account which account is hereby created in the state treasury. The sums deposited in the capital projects account shall be appropriated and expended exclusively for the construction, reconstruction, erection, equipping, maintenance, demolition and major alteration of buildings and other capital assets owned by the state board for community college education in the name of the state of Washington, and the acquisition of sites, rights-of-way, easements, improvements or appurtenances in relation thereto, and for the payment of principal of and interest on any bonds issued for such purposes. All earnings of investments of balances in the community college capital projects account shall be credited to the general fund.

(3) Notwithstanding the provisions of subsections (1) and (2) above, at such time as all outstanding building bonds of the college board payable from the community college bond retirement fund have been paid, redeemed, and retired, or at such time as ample provision has been made by the state for full payment, from some source other than the community college bond retirement fund, of the principal of and the interest on and call premium, if applicable, of such bonds as they mature and/or upon their call prior to their maturity, through refunding or otherwise, that portion of all building fees of the community colleges equal to the amount required to pay yearly debt service on any general obligation bonds issued by the state in accordance with Article VIII, section 1, Washington state Constitution, for community college purposes, shall be paid into the general fund of the state treasury. The state finance committee shall determine whether ample provision has been made for payment of such bonds payable from the said bond retirement fund and shall determine the amount required to pay yearly debt service on such general obligation bonds of the state. This subsection does not apply to the building fee surcharge and matching funds authorized by RCW 28B.15.202(8), 28B.15.402(7), and 28B.15.502(6). Nothing in this subsection shall be construed as obligating the legislature or the state to provide for payment of such community college building bonds from some source other than the community college bond retirement fund or as pledging the general credit of the state to the payment of such bonds.

(4) The revenue from the building fee surcharge and matching funds authorized by RCW 28B.15.202(8), 28B.15.402(7), and 28B.15.502(6) is not obligated to the payment of principal or interest on any bond issued prior to the effective date of this act or any bond for which the building fee surcharge and matching fund revenue was not specifically pledged.

NEW SECTION. Sec. 7. This act shall take effect July 1, 1991. Prior to July 1, 1991, the boards of regents or trustees of the state's institutions of higher education may take such steps as are necessary to implement this act.