AN
ACT Relating to the university tract; amending RCW 28B.20.382, 28B.20.394,
28B.20.396, and 28B.20.398; adding new sections to chapter 28B.20 RCW; creating
a new section; repealing RCW 28B.20.390, 28B.20.392, and 43.79.090; and
declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
purpose of this act is to consolidate the statutes authorizing the board of
regents of the University of Washington to control the property of the
university. Nothing in this act may be construed to diminish in any way the
powers of the board of regents to control its property including, but not
limited to, the powers now or previously set forth in RCW 28B.20.392 through
28B.20.398.
NEW
SECTION. Sec. 2. A
new section is added to chapter 28B.20 RCW to read as follows:
For
the purposes of this chapter, "university tract" means the tract of
land in the city of Seattle, consisting of approximately ten acres, originally
known as the "old university grounds," and more recently referred to
as the "metropolitan tract," together with all buildings,
improvements, facilities, and appurtenances thereon.
Sec.
3. RCW
28B.20.382 and 1998 c 245 s 17 are each amended to read as follows:
(1)
Until authorized ((and empowered to do so)) by statute of the legislature,
the board of regents of the university, with respect to ((that certain tract
of land in the city of Seattle originally known as the "old university
grounds" and more recently known as the "metropolitan tract" and
any land contiguous thereto)) the university tract, shall not sell
the land or any part thereof or any improvement thereon, or lease the land or
any part thereof or any improvement thereon or renew or extend any lease
thereof for a term ((ending more than sixty years beyond midnight, December
31, 1980)) of more than eighty years. Any sale of the land or any
part thereof or any improvement thereon, or any lease or renewal or extension
of any lease of the land or any part thereof or any improvement thereon for a
term ((ending more than sixty years after midnight, December 31, 1980,))
of more than eighty years made or attempted to be made by the board of
regents shall be null and void ((unless and)) until the same has been
approved or ratified and confirmed by legislative act.
(2)
The board of regents shall have power from time to time to lease the land, or
any part thereof or any improvement thereon for a term ((ending not more
than sixty years beyond midnight, December 31, 1980: PROVIDED, That)) of
not more than eighty years. Any and all records, books, accounts, and
agreements of any lessee or sublessee under this section, pertaining to
compliance with the terms and conditions of such lease or sublease, shall be
open to inspection by the board of regents, the ways and means committee of the
senate, the appropriations committee of the house of representatives, and the
joint legislative audit and review committee or any successor committees. It
is not intended ((by this proviso)) that unrelated records, books,
accounts, and agreements of lessees, sublessees, or related companies be open
to such inspection. The board of regents shall make a full, detailed report
of all leases and transactions pertaining to the land or any part thereof or
any improvement thereon to the joint legislative audit and review committee,
including one copy to the staff of the committee, during odd-numbered years.
(3)
The net proceeds from the sale or lease of land in the university tract, or any
part thereof or any improvement thereon, shall be deposited into the University
of Washington facilities bond retirement account hereby established outside the
state treasury as a nonappropriated local fund to be used exclusively for the
purpose of erecting, altering, maintaining, equipping, or furnishing buildings
at the University of Washington. The board of regents shall transfer from the
University of Washington facilities bond retirement account to the University
of Washington building account under RCW 43.79.080 any funds in excess of
amounts reasonably necessary for payment of debt service in combination with
other nonappropriated local funds related to capital projects for which debt
service is required under section 4, chapter . . . (Substitute House
Bill No. 1166), Laws of 1999.
Sec.
4. RCW
28B.20.394 and 1973 1st ex.s. c 195 s 10 are each amended to read as follows:
In
addition to the powers conferred upon the board of regents of the University of
Washington by ((RCW 28B.20.392 and 28B.20.380, said)) section 5 of
this act, the board of regents is authorized and shall have the
power to enter into an agreement or agreements with the city of Seattle and the
county of King, Washington, to pay to ((said)) the city and ((said))
the county such sums as shall be mutually agreed upon for governmental
services rendered to ((said)) the university tract, ((as
defined in RCW 28B.20.390)) which sums shall not exceed the amounts that
would be received pursuant to limitations imposed by RCW 84.52.043 by the ((said))
city of Seattle and county of King respectively from real and personal property
taxes paid on the university tract or any leaseholds thereon if such taxes
could lawfully be levied((; and any such sums so agreed upon shall be paid from
the proceeds and other income from said tract as an item of expense of
operation and upkeep thereof: PROVIDED, That in the event that it is
determined by a court of final jurisdiction that the provisions of chapter 43,
Laws of 1971 first ex. sess., insofar as they affect taxes due and payable in
1972 and 1973 by any lessee of the university tract, are held unconstitutional,
the sums paid pursuant to this section in such years shall be refunded in
accordance with the provisions of chapter 84.69 RCW; and any provision of RCW
28B.20.392 in conflict herewith is superseded)).
NEW
SECTION. Sec. 5. A
new section is added to chapter 28B.20 RCW to read as follows:
In
addition to the powers conferred under the original deeds of conveyance to the
state of Washington and under existing law, and subject to RCW 28B.20.382, the
board of regents has full control of the university tract as provided in this
chapter including, but not limited to:
(1)
With regard to the whole or portions of the land, the authority to manage, to
improve, to alter, to operate, to lease, to contract indebtedness, to borrow
funds, to issue bonds, notes, and warrants, to provide for the amortization of
and to pay the bonds, notes, warrants, and other evidences of indebtedness, at
or prior to maturity, to use and pledge the income derived from operating,
managing, and leasing the university tract for such purpose, and to otherwise
own, operate, and control the university tract to the same extent as any other
property of the university;
(2)
With regard to the whole or portions of any building or buildings or other
improvements thereon or appurtenances thereto, the authority to sell, subject
to the terms of any underlying lease on the land, to manage, to improve, to
alter, to operate, to lease, to grant a deed of trust or a mortgage lien, to
contract indebtedness, to borrow funds, to issue bonds, notes, and warrants, to
provide for the amortization thereof and to pay the bonds, notes, warrants, and
other evidences of indebtedness, at or prior to maturity, to use and pledge the
income derived from operating, managing, and leasing the university tract for
such purpose, and to otherwise own, operate, and control the university tract
to the same extent as any other property of the university consistent with the
purpose of the donors of the metropolitan tract.
Sec.
6. RCW
28B.20.396 and 1983 c 167 s 33 are each amended to read as follows:
Bonds
issued pursuant to the authority granted under ((subdivision (4) of RCW
28B.20.392‑-)) section 5 of this act:
(1)
Shall not constitute (a) an obligation, either general or special, of
the state or (b) a general obligation of the University of Washington or of the
board of regents;
(2)
Shall be((‑-)):
(a)
Either in bearer form or in registered form as provided in RCW
39.46.030, and
(b)
Issued in denominations of not less than one hundred dollars;
(3)
Shall state((‑-)):
(a)
The date of issue, and
(b)
The series of the issue and be consecutively numbered within the series,
and
(c)
That the bond is payable only out of a special fund established for the
purpose, and designate the fund;
(4)
Shall bear interest, payable either annually, or semiannually as the
board of regents may determine;
(5)
Shall be payable solely out of((‑-)):
(a)
Revenue derived from operating, managing and leasing the university
tract, and
(b)
A special fund, created by the board of regents for the purpose,
consisting either of (i) a fixed proportion, or (ii) a fixed amount out of and
not exceeding a fixed proportion, or (iii) a fixed amount without regard to any
fixed proportion, of the revenue so derived;
(6)
May contain covenants by the board of regents in conformity with
the provisions of RCW 28B.20.398(2);
(7)
Shall be payable at such times over a period of not to exceed thirty
years, in such manner and at such place or places as the board of regents
determines;
(8)
Shall be executed in such manner as the board of regents by
resolution determines;
(9)
Shall be sold in such manner as the board of regents deems for
the best interest of the University of Washington;
(10)
May be issued under chapter 39.46 RCW.
Sec.
7. RCW
28B.20.398 and 1983 c 167 s 34 are each amended to read as follows:
(1)
Any resolution of the board of regents pursuant to the provisions of ((subdivision
(4) of RCW 28B.20.392)) section 5 of this act shall provide for the
creation of a special fund, in conformity with the provisions of ((subdivision
(5)(b) of)) RCW 28B.20.396(5)(b).
(2)
Any resolution authorizing the issuance of bonds pursuant to the provisions of section
5 of this act, RCW ((28B.20.390, 28B.20.392,)) 28B.20.396,
and 28B.20.398 may contain covenants of the board of regents to protect
and safeguard the security and rights of the owners of any such bonds such as
are then customary in connection with similar bonds and considered advisable in
order to assure the maximum marketability for said bonds. Without limiting the
generality of the foregoing, any such resolution may contain covenants as to((‑‑)):
(a)
The creation of a special fund into which the proceeds of all bonds
issued pursuant to the provisions of such resolution shall be deposited, the
terms and conditions upon which payments may be made from such special fund,
and for the payment of interest on bonds issued pursuant to such resolution
from the moneys in said fund;
(b)
Maintaining rental and leasehold rates and other charges at a level
sufficient at all times to provide revenue (i) to pay the interest on and
principal of all bonds and other obligations payable from said revenue, (ii) to
make all other payments from said revenues required under the provisions of any
resolution adopted in connection with the issuance of warrants or bonds under section
5 of this act, RCW ((28B.20.390, 28B.20.392,)) 28B.20.396,
and 28B.20.398 and (iii) to pay the operating, management, maintenance, repair
and upkeep costs of the university tract;
(c)
Collection, deposit, custody and disbursement of the revenues from the
university tract or any portions thereof including (i) a specification of the
depositaries to be designated, and (ii) authorization of such depositaries, or
other banks or trust companies, to act as fiscal agent of the board of
regents for the custody of the proceeds of bonds and the moneys held in any
funds created pursuant to section 5 of this act, RCW ((28B.20.390,
28B.20.392,)) 28B.20.396, and 28B.20.398, or any resolution
authorizing such bonds, and to represent bond owners in the event of a default
on such bonds or in the event of a default in the performance of any duty or
obligation of the board of regents in connection therewith, with such
power and duty as such resolution may provide;
(d)
Creation and administration of reserve and other funds for the payment,
at or prior to maturity, of any indebtedness chargeable against the revenues
from the university tract and for creation of working funds, depreciation
funds, replacement funds, reserves for extraordinary repairs and any other fund
deemed necessary or desirable to insure the continued profitable operation of
the said university tract;
(e)
Deposit of collateral security or indemnity bonds to secure the proceeds
(i) of bonds issued pursuant to the provisions of such resolution and (ii) of
all revenues which are pledged to secure the repayment of bonds issued pursuant
to the provisions of such resolution and (iii) of all moneys deposited in any
special fund created under the authority of section 5 of this act, RCW
((28B.20.390, 28B.20.392,)) 28B.20.396, and 28B.20.398 or any
covenant thereunder;
(f)
The obligation of the board of regents to maintain the building
or buildings in good condition and to operate and manage the same in an
economical and efficient manner;
(g)
The amount and kind of insurance to be carried by the board of
regents in connection with the building or buildings, the companies in which
such insurance shall be carried, the term thereof, the application of the
proceeds of any such insurance, and adjustments of losses under any such policy
of insurance;
(h)
Limitations upon the amount of additional bonds, warrants and other
obligations payable out of the revenues from the building or buildings which
may be thereafter issued and the terms and conditions upon which such
additional bonds, warrants or other obligations may be issued;
(i)
Limitations upon the creation of additional liens or encumbrances on the
building or buildings or the personal property used in connection therewith;
(j)
The terms and conditions upon which the building or buildings, or any
part thereof, may be sold, mortgaged, leased or otherwise disposed of, and the
use or other disposition of the proceeds of any such sale, mortgage or lease;
(k)
The methods of operation, management and maintenance of the building or
buildings;
(l)
Accounting and auditing and the keeping of records, reports and audits
with respect to the building or buildings;
(m)
The amendment or modification of any resolution authorizing the issuance
of bonds pursuant to the provisions of section 5 of this act, RCW ((28B.20.390,
28B.20.392,)) 28B.20.396, and 28B.20.398, including the terms and
conditions upon which such amendment or modification may be effected and the
number, amount or percentage of assenting bonds necessary to effectuate the
same;
(n)
Limitations upon the use of space or facilities in the building or
buildings without payment therefor; and
(o)
Such other matters as may be necessary or desirable to insure a
successful and profitable operation of the building or buildings.
(3)
The term "building or buildings" as used in ((subdivision)) subsection
(2) of this section means the building or buildings or improvements upon the
university tract with respect to which the revenues are pledged, under the
terms of the resolution, to secure the payment of bonds issued under such
resolution.
(4)
The provisions of section 5 of this act, RCW ((28B.20.390,
28B.20.392,)) 28B.20.396, and 28B.20.398 and of any resolution
adopted in conformity with the provisions of this section shall constitute a
contract with the owners of warrants or bonds issued pursuant thereto, and the
provisions thereof shall be enforceable in any court of competent jurisdiction
by any owner of such warrants or bonds by mandamus or any other appropriate
suit, action or proceeding at law or in equity.
(5)
Bonds issued pursuant to the provisions of section 5 of this act, RCW ((28B.20.390,
28B.20.392,)) 28B.20.396, and 28B.20.398 may be redeemed, at the
option of the board of regents, at such time or times, upon such terms
and conditions, and at such premiums as the board of regents specifies
in the resolution.
(6)
If the board of regents fails to pay the required amounts into the
special fund, established in conformity with ((subdivision)) subsection
(2) of this section, the owner of any bond or bonds affected thereby may
maintain an action against the board of regents to compel compliance
with the terms of the resolution in this respect.
(7)
Pending the preparation and execution of any bonds the issuance of which is
authorized under the provisions of ((subdivision)) subsection (2)
of this section, temporary bonds may be issued in such form as the board
of regents determines.
NEW
SECTION. Sec. 8. The
following acts or parts of acts are each repealed:
(1) RCW
28B.20.390 (Additional powers of regents as to old university
grounds--Definitions) and 1969 ex.s. c 223 s 28B.20.390;
(2) RCW
28B.20.392 (Additional powers of regents as to old university
grounds--Enumeration of) and 1969 ex.s. c 223 s 28B.20.392; and
(3) RCW
43.79.090 (Rentals to building fund--Use of fund) and 1965 c 8 s
43.79.090.
NEW
SECTION. Sec. 9. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect immediately.
