AN ACT Relating to
research by state universities; amending RCW 28B.10.022 and 39.94.040; and
adding a new chapter to Title 28B RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. It is the policy of the
state to encourage basic and applied scientific research by the state's
research universities. The creation of knowledge is a core mission of the
state's research universities, and research provides teaching and learning
opportunities for students and faculty. State of the art facilities for
research by research universities serve to attract the most capable students
and faculty to the state and research grants from public and private
institutions throughout the world. The application of such research stimulates
investment and employment within Washington and the strengthening of our tax
base. In order to finance research facilities, the state's research
universities often use federal, state, private, and university resources and
therefore require the authority to enter into financing arrangements that
leverage funding sources and reduce the costs of such complex facilities to the
state.
NEW SECTION. Sec.
2. The University of
Washington and Washington State University each may:
(1) Acquire, construct,
rehabilitate, equip, and operate facilities and equipment to promote basic and
applied research in the sciences;
(2) Borrow money for
such research purposes, including interest during construction and other
incidental costs, issue revenue bonds or other evidences of indebtedness,
refinance the same before or at maturity, and provide for the amortization of
such indebtedness by pledging all or a component of the fees and revenues of
the university available for such purpose derived from the ownership and
operation of any of its facilities or conducting research that are not subject
to appropriation by the legislature and that do not constitute general state
revenues as defined in Article VIII, section 1 of the state
Constitution;
(3) Enter into leases,
with or without an option to purchase, of real and personal property to be used
in basic and applied research in the sciences; and
(4) Lease all or a
portion of such facilities and equipment as is deemed prudent by the university
to provide for research conducted by persons or entities that are not part of
the university but that provide rental income to support university research
facilities or provide opportunities for the interaction of public and private
research and research personnel, including students and faculty.
NEW SECTION. Sec.
3. The governing body of a
university financing facilities and equipment under this chapter shall give due
regard to the costs of maintaining and operating such facilities and equipment
during the useful lives of the facilities and equipment. No state appropriated
funds may be used for (1) the payment of maintenance and operation of the
facilities and equipment financed under this chapter; or (2) the grant or
contract-supported research activities housed in these facilities. If funding
through grants or contracts for research activities housed in these facilities
is reduced, eliminated, or declared insufficient, the funding deficiencies are
not a state obligation to be paid from the state general fund.
NEW SECTION. Sec.
4. The authority granted by
this chapter is supplemental to any existing or future authority granted to the
University of Washington and Washington State University and shall not be
construed to limit the existing or future authority of these universities.
Sec. 5. RCW 28B.10.022 and 1989
c 356 s 6 are each amended to read as follows:
The boards of regents
of the state universities and the boards of trustees of the regional
universities, The Evergreen State College, and the state board for community and
technical colleges ((education)), are severally authorized to
enter into financing contracts as provided in chapter 39.94 RCW. Except as
provided in this section, financing contracts shall be subject to the approval
of the state finance committee. Except for facilities financed under
chapter 28B.--- RCW (sections 1 through 4 and 7 of this act), the board of
regents of a state university may enter into financing contracts which are
payable solely from and secured by all or any component of the fees and
revenues of the university derived from its ownership and operation of its
facilities not subject to appropriation by the legislature and not constituting
"general state revenues," as defined in Article VIII, section 1 of
the state Constitution, without the prior approval of the state finance
committee. The board of regents shall notify the state finance committee at
least sixty days prior to entering into such contract and provide information
relating to such contract as requested by the state finance committee.
Sec. 6. RCW 39.94.040 and 1998 c
291 s 5 are each amended to read as follows:
(1) Except as provided
in RCW 28B.10.022 and chapter 28B.--- RCW (sections 1 through 4 and 7 of
this act), the state may not enter into any financing contract for itself
if the aggregate principal amount payable thereunder is greater than an amount
to be established from time to time by the state finance committee or
participate in a program providing for the issuance of certificates of
participation, including any contract for credit enhancement, without the prior
approval of the state finance committee. Except as provided in RCW 28B.10.022,
the state finance committee shall approve the form of all financing contracts
or a standard format for all financing contracts. The state finance committee
also may:
(a) Consolidate
existing or potential financing contracts into master financing contracts with
respect to property acquired by one or more agencies, departments,
instrumentalities of the state, the state board for community and technical
colleges, or a state institution of higher learning; or to be acquired by an
other agency;
(b) Approve programs
providing for the issuance of certificates of participation in master financing
contracts for the state or for other agencies;
(c) Enter into
agreements with trustees relating to master financing contracts; and
(d) Make appropriate
rules for the performance of its duties under this chapter.
(2) In the performance
of its duties under this chapter, the state finance committee may consult with
representatives from the department of general administration, the office of
financial management, and the department of information services.
(3) With the approval
of the state finance committee, the state also may enter into agreements with
trustees relating to financing contracts and the issuance of certificates of
participation.
(4) The state may not
enter into any financing contract for real property of the state without prior
approval of the legislature.
(5) The state may not
enter into any financing contract on behalf of an other agency without the
approval of such a financing contract by the governing body of the other
agency.
NEW SECTION. Sec.
7. Before January 31st of
each year, the University of Washington and Washington State University must
report to the ways and means committee of the senate and the capital budget
committee of the house of representatives on the financing arrangements entered
into under the authority of this chapter.
NEW
SECTION. Sec. 8. Sections 1 through 4 and
7 of this act constitute a new chapter in Title 28B RCW.
