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.
