AN ACT Relating to school construction; amending RCW 28A.47.060; adding new sections to chapter 28A.47 RCW; adding a new chapter to Title 28A RCW; creating a new section; making an appropriation; providing a contingent effective date; and declaring an emergency.

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

PART I

SCHOOL PLANT FACILITIES

NEW SECTION. Sec. 1. The legislature hereby authorizes the issuance and sale of three hundred million dollars in general obligation bonds of the state of Washington for the construction and modernization of common school plant facilities which provide for the reimbursement of the state treasury for principal and interest payments and which therefore are not subject to the limitations on indebtedness under RCW 39.42.060.

NEW SECTION. Sec. 2. The proceeds from the sale of the bonds authorized by section 1 of this act shall be deposited in the common school construction fund and shall be used exclusively for the purposes specified in section 1 of this act and for payment of expenses incurred in the issuance and sale of such bonds. Proceeds deposited under this section in the common school construction fund shall be administered by the state board of education.

NEW SECTION. Sec. 3. The state general obligation bond retirement fund shall be used for the payment of the principal of and interest on the bonds authorized in section 1 of this act. The state finance committee may provide that a special account be created in such fund to facilitate payment of such principal and interest.

The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. Not less than thirty days prior to the date on which any interest or principal and interest payment is due, the state treasurer shall withdraw from any general state revenues received in the state treasury and deposit in the state general obligation bond retirement fund or a special account in such fund, such amounts and at such times as are required by the bond proceedings. On each date on which any interest or principal and interest is due, the state treasurer shall cause an identical amount to be transferred to the general fund of the state treasury from the common school construction fund. Any deficiency in such transfer shall be made up as soon as moneys are available for transfer and shall constitute a continuing obligation of the common school construction fund until all deficiencies are fully paid.

Bonds issued under this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due.

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

NEW SECTION. Sec. 4. The legislature may provide additional means for raising funds for the payment of interest and principal of the bonds authorized by section 1 of this act, and sections 1 through 5 of this act shall not be deemed to provide an exclusive method of payment.

NEW SECTION. Sec. 5. The bonds authorized by section 1 of this act shall be a legal investment for all state funds or for funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 6. There is appropriated to the state board of education three hundred million dollars from the common school construction fund or as much thereof as may be necessary for the purpose of carrying out the provisions of sections 1 through 5 of this act. The appropriation in this section is subject to the following conditions and limitations:

(1) One hundred fifty million dollars is provided solely for construction of facilities for unhoused students due to enrollment growth or condemnation of facilities: PROVIDED, That the state board of education may not allot any proceeds of the bonds authorized under section 1 of this act for projects which have not received state board approval prior to January 31, 1989.

(2) One hundred fifty million dollars is provided solely for construction of grandfathered projects and modernization of existing facilities: PROVIDED, That the state board of education may not allot any proceeds of the bonds authorized under section 1 of this act to projects which have not received state board approval prior to January 31, 1989.

In accordance with RCW 28A.47.798, the state board of education is authorized to allocate for the purposes of carrying out the provisions of sections 1 through 5 of this act the entire amount of such appropriation as provided in this section which is not already allocated for that purpose: PROVIDED, That expenditures against such allocation shall not exceed the amount appropriated in this section.

NEW SECTION. Sec. 7. Sections 1 through 5 of this act are each added to chapter 28A.47 RCW.

NEW SECTION. Sec. 8. Sections 1 through 6 of this act shall take effect December 14, 1989, if the proposed amendments to Article IX, section 3 of the state Constitution providing for common school construction (Senate Joint Resolution No. ___ (S-1808/89)) are validly submitted to and are approved and ratified by the voters at a general election held in November 1989. If the proposed amendments are not so approved and ratified, sections 1 through 6 of this act shall be void in their entirety.

PART II

COMMON SCHOOL CONSTRUCTION FINANCIAL COORDINATING BOARD

NEW SECTION. Sec. 9. The common school construction financial coordinating board is created to provide assistance to the state board of education in the planning and implementation of a long-range plan for financing common school facility construction and modernization.

NEW SECTION. Sec. 10. The common school construction financial coordinating board in consultation with the state board of education shall perform the following duties:

(1) Assess current and forecast future needs for state financial assistance under chapter 28A.47 RCW;

(2) Project available resources in the common school construction fund;

(3) Prepare a six-year financial plan for the employment of available resources among the needs;

(4) Recommend the plan to the state board of education for adoption and presentation annually to the legislature;

(5) Update the plan annually, accounting for changes in projected revenues and forecasted needs;

(6) Recommend to the state board of education any changes in financial policies and practices that can most effectively utilize projected available resources for common school construction;

(7) Recommend to the state board of education any changes to policies and rules governing the allotment of moneys from the common school construction fund that may ensure the most equitable and cost-effective utilization of such funds in support of the state-wide common school construction program; and

(8) Review, evaluate, and make recommendations to the state board of education on all aspects of planning and managing the common school construction fund, including but not limited to:

(a) Square foot allowances for the various grade levels;

(b) Project cost allowances for state assistance;

(c) The employment of criteria used to rank all construction and modernization project applications as a whole, not within separate categories, including using criteria such as cost-effectiveness and cost-avoidance;

(d) Determining a "standard" building plan or plans as the basis of state matching assistance, with enhancements requiring a larger local cost share;

(e) The existence of economic disincentives to attaining cost-effective school facilities, particularly disincentives to modernizing facilities instead of condemning and constructing new replacement facilities; and

(e) The need and justification for additional fiscal resources to enable the common school construction fund to adequately meet the forecasted demands for state assistance to common school construction.

NEW SECTION. Sec. 11. The common school construction financial coordinating board shall consist of one member appointed by the superintendent of public instruction, one member appointed by the commissioner of public lands, one member appointed by the state treasurer, and two public members, each having expertise in at least one of the following four areas: Finance, architecture, engineering, or land development. The two public members shall be appointed by the collective decision of the state elected officials serving on the board and shall serve for terms of two years.

NEW SECTION. Sec. 12. Any vacancies among the public board members shall be filled by the collective decision of the state elected officials and such appointments shall be only for such terms as remain unexpired.

NEW SECTION. Sec. 13. The public members of the board shall be compensated in accordance with RCW 43.03.240 and shall receive travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 14. The board shall have authority to adopt rules as necessary to implement sections 9 through 13 of this act.

Sec. 15. Section 28A.47.060, chapter 223, Laws of 1969 ex. sess. and RCW 28A.47.060 are each amended to read as follows:

The state board of education shall have the power and it shall be its duty (1) to prescribe rules and regulations governing the administration, control, terms, conditions, and disbursements of allotments to school districts to assist them in providing school plant facilities, but such rules shall be consistent with the rules of the common school construction coordinating board and shall be subject to ratification under section 16 of this 1989 act; (2) to approve allotments to districts that apply for state assistance in conformance with this chapter whenever the board deems such action advisable and in so doing to give due consideration to the findings, reports, and recommendations of the superintendent of public instruction pertaining thereto; (3) to authorize the payment of approved allotments by warrant of the state treasurer; and (4) in the event that the amount of state assistance applied for exceeds the funds available for such assistance during any biennium, to make allotments on the basis of the urgency of need for school facilities in the districts that apply for assistance and/or to prorate allotments among such districts in conformity with procedures and regulations applicable thereto which shall be established by the state board.

NEW SECTION. Sec. 16. A new section is added to chapter 28A.47 RCW to read as follows:

No rule adopted after January 1, 1990, by the state board of education which impacts on the state funding of common school construction or modernization projects shall be effective until such rule has been expressly ratified by the legislature. This section shall apply only to new or revised rules which increase or may potentially increase the number of projects eligible for state assistance or the amount of state assistance for which a district is eligible.

NEW SECTION. Sec. 17. Sections 9 through 14 of this act shall constitute a new chapter in Title 28A RCW.

NEW SECTION. Sec. 18. Sections 9 through 16 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.