BILL REQ. #:  H-2588.1 

Read first time 03/01/2007.   Referred to Committee on Higher Education.

     AN ACT Relating to performance agreements; amending RCW 28B.50.090 and 28B.76.290; adding a new chapter to Title 28B RCW; creating a new section; and repealing RCW 28B.76.270.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that, since 1997, public institutions of higher education have developed and maintained a system of performance measures to monitor progress in improving graduation efficiency, faculty productivity, student achievement of degrees and certifications, and other topics. However, the current performance measurement system is too limited in scope and scale. Only a few measures reflect the unique role and mission of an institution. There is little dialogue between state policymakers and institution leaders regarding the challenges facing our colleges and universities and the outcomes expected by the public and the state.
     (2) The legislature further finds that procedures for operating budgets, enrollment management, and strategic planning for higher education are not adequately coordinated. The state and institutions must jointly discuss and establish clear priorities and acknowledge potential trade-offs of funding decisions.
     (3) Therefore, the legislature intends to explore a new relationship between the state and public institutions of higher education that includes dialogue and negotiation over goals, priorities, performance, and resources, and also includes explicit commitments made by each party aimed at achieving agreed-upon outcomes. The mechanism to implement this relationship is a performance agreement.

NEW SECTION.  Sec. 2   As used in this chapter, a performance agreement:
     (1) Is an agreement reached between the state and the governing board of an institution of higher education, or in the case of community or technical colleges the state board for community and technical colleges, as provided in section 4 of this act and approved by the legislature as provided in section 7 of this act;
     (2) Addresses statewide goals and priorities of the legislature;
     (3) Specifies enrollment and resource levels;
     (4) Contains goals and commitments from both the institution and the state;
     (5) Includes quantifiable performance measures and benchmarks; and
     (6) Reflects the unique role and mission of the institution within the state's higher education system.

NEW SECTION.  Sec. 3   (1) The higher education coordinating board, in consultation with the governor's office and the office of financial management, shall enter into negotiations with the governing boards of the state universities, the regional universities, and the state college, as defined in RCW 28B.10.016, to create a performance agreement with each institution.
     (2) The governor's office with assistance from the higher education coordinating board and the office of financial management shall enter into negotiations with the state board for community and technical colleges to create a master performance agreement with the system of community and technical colleges created under chapter 28B.50 RCW.
     (3) In developing an agreement, the negotiating team from an institution of higher education must involve student and faculty representatives.
     (4) The term of a performance agreement negotiated under this section is six years, however either party may request that an agreement be renegotiated and updated on a biennial basis if necessary to reflect changed circumstances. All performance agreements must include a process for renegotiation or update.
     (5) The institutions of higher education and state board for community and technical colleges shall report all data necessary to implement, evaluate, and monitor each performance agreement to the office of financial management, the legislature, and the higher education coordinating board.

NEW SECTION.  Sec. 4   (1) Performance agreements shall contain:
     (a) Indicators that measure outcomes concerning cost, quality, timeliness of student progress toward degrees and certifications, and articulation between and within the K-12 and higher education systems;
     (b) Each institution's share of enrollments and degrees needed to meet the state's goals and strategic direction;
     (c) Indicators that measure the efficiency and effectiveness of institutional processes; and
     (d) Strategies, actions, and results committed to by the institution in order to achieve statewide goals.
     (2) Performance agreements shall also identify the level of resources necessary to meet the performance objectives, subject to approval by the legislature under section 7 of this act.
     (3) The governor and institutional negotiating teams shall identify indicators and levels of performance that are clearly linked to the role, mission, and strategic plan of the institution.

NEW SECTION.  Sec. 5   (1) Performance agreements shall include grants to the institution, under the terms of the agreement, of flexibility or waivers from state controls or rules.
     (2) The negotiating teams shall identify areas where statutory change is necessary to grant an institution flexibility or waivers of state agency rules and submit any legislation necessary to implement a performance agreement to the higher education committees of the senate and house of representatives.
     (3) The following areas may not be included in a performance agreement:
     (a) Flexibility or waivers of requirements in a collective bargaining agreement negotiated under chapter 28B.52, 41.56, 41.59, 41.76, or 41.80 RCW;
     (b) Flexibility or waivers of administrative rules or processes governed by chapter 28B.52, 41.56, 41.59, 41.76, or 41.80 RCW;
     (c) Rules, processes, duties, rights, and responsibilities of the academic faculty as contained in the faculty codes of the four-year institution;
     (d) Flexibility or waivers of requirements under chapter 39.12 RCW;
     (e) Flexibility or waivers of administrative rules or other regulations that address health and safety, civil rights, and nondiscrimination laws that apply to institutions of higher education; and
     (f) State laws covering terms and conditions of employment, including but not limited to salaries, job security, and health, retirement, unemployment, or any other employment benefits.

NEW SECTION.  Sec. 6   (1) The higher education coordinating board and the governor's office shall submit completed performance agreements to the legislature by January 15, 2008, and every six years thereafter. Following public hearings, the legislature shall have the opportunity, by concurrent resolution, to approve or reject each performance agreement as a whole.
     (2) If the legislature rejects or fails to act on a submission, the performance agreement shall be returned to the parties for renegotiation.
     (3) All cost items contained within a performance agreement are subject to legislative appropriation.

NEW SECTION.  Sec. 7   (1) Beginning December 2008, the higher education coordinating board and the state board for community and technical colleges shall provide annual progress reports to the higher education committees of the senate and house of representatives on implementation of the performance agreements and any short-term outcomes. The overall purpose of the progress reports is to focus attention on key measures of institutional performance and gain an improved understanding of the causes of success or lack of success in making progress in achieving the goals in the agreements.
     (2) The joint legislative audit and review committee shall conduct an evaluation and make recommendations regarding changes to the substance or process of performance agreeing. The evaluation shall be submitted to the governor and higher education committees of the senate and house of representatives by January 15, 2014.

Sec. 8   RCW 28B.50.090 and 2004 c 275 s 57 are each amended to read as follows:
     The college board shall have general supervision and control over the state system of community and technical colleges. In addition to the other powers and duties imposed upon the college board by this chapter, the college board shall be charged with the following powers, duties and responsibilities:
     (1) Review the budgets prepared by the boards of trustees, prepare a single budget for the support of the state system of community and technical colleges and adult education, and submit this budget to the governor as provided in RCW 43.88.090;
     (2) Establish guidelines for the disbursement of funds; and receive and disburse such funds for adult education and maintenance and operation and capital support of the college districts in conformance with the state and district budgets, and in conformance with chapter 43.88 RCW;
     (3) Ensure, through the full use of its authority:
     (a) That each college district shall offer thoroughly comprehensive educational, training and service programs to meet the needs of both the communities and students served by combining high standards of excellence in academic transfer courses; realistic and practical courses in occupational education, both graded and ungraded; and community services of an educational, cultural, and recreational nature; and adult education, including basic skills and general, family, and workforce literacy programs and services. However, technical colleges, and college districts containing only technical colleges, shall maintain programs solely for occupational education, basic skills, and literacy purposes. For as long as a need exists, technical colleges may continue those programs, activities, and services they offered during the twelve-month period preceding May 17, 1991;
     (b) That each college district shall maintain an open-door policy, to the end that no student will be denied admission because of the location of the student's residence or because of the student's educational background or ability; that, insofar as is practical in the judgment of the college board, curriculum offerings will be provided to meet the educational and training needs of the community generally and the students thereof; and that all students, regardless of their differing courses of study, will be considered, known and recognized equally as members of the student body: PROVIDED, That the administrative officers of a community or technical college may deny admission to a prospective student or attendance to an enrolled student if, in their judgment, the student would not be competent to profit from the curriculum offerings of the college, or would, by his or her presence or conduct, create a disruptive atmosphere within the college not consistent with the purposes of the institution. This subsection (3)(b) shall not apply to competency, conduct, or presence associated with a disability in a person twenty-one years of age or younger attending a technical college;
     (4) Prepare a comprehensive master plan for the development of community and technical college education and training in the state; and assist the office of financial management in the preparation of enrollment projections to support plans for providing adequate college facilities in all areas of the state. The master plan shall include implementation of the vision, goals, priorities, and strategies in the statewide strategic master plan for higher education under RCW 28B.76.200 based on the community and technical college system's role and mission. The master plan shall also contain measurable performance indicators and benchmarks for gauging progress toward achieving the goals and priorities;
     (5) Define and administer criteria and guidelines for the establishment of new community and technical colleges or campuses within the existing districts;
     (6) Establish criteria and procedures for modifying district boundary lines consistent with the purposes set forth in RCW 28B.50.020 as now or hereafter amended and in accordance therewith make such changes as it deems advisable;
     (7) Establish minimum standards to govern the operation of the community and technical colleges with respect to:
     (a) Qualifications and credentials of instructional and key administrative personnel, except as otherwise provided in the state plan for vocational education,
     (b) Internal budgeting, accounting, auditing, and financial procedures as necessary to supplement the general requirements prescribed pursuant to chapter 43.88 RCW,
     (c) The content of the curriculums and other educational and training programs, and the requirement for degrees and certificates awarded by the colleges,
     (d) Standard admission policies,
     (e) Eligibility of courses to receive state fund support;
     (8) Establish and administer criteria and procedures for all capital construction including the establishment, installation, and expansion of facilities within the various college districts;
     (9) Encourage innovation in the development of new educational and training programs and instructional methods; coordinate research efforts to this end; and disseminate the findings thereof;
     (10) Exercise any other powers, duties and responsibilities necessary to carry out the purposes of this chapter;
     (11) Authorize the various community and technical colleges to offer programs and courses in other districts when it determines that such action is consistent with the purposes set forth in RCW 28B.50.020 as now or hereafter amended;
     (12) Notwithstanding any other law or statute regarding the sale of state property, sell or exchange and convey any or all interest in any community and technical college real and personal property, except such property as is received by a college district in accordance with RCW 28B.50.140(8), when it determines that such property is surplus or that such a sale or exchange is in the best interests of the community and technical college system;
     (13) In order that the treasurer for the state board for community and technical colleges appointed in accordance with RCW 28B.50.085 may make vendor payments, the state treasurer will honor warrants drawn by the state board providing for an initial advance on July 1, 1982, of the current biennium and on July 1 of each succeeding biennium from the state general fund in an amount equal to twenty-four percent of the average monthly allotment for such budgeted biennium expenditures for the state board for community and technical colleges as certified by the office of financial management; and at the conclusion of such initial month and for each succeeding month of any biennium, the state treasurer will reimburse expenditures incurred and reported monthly by the state board treasurer in accordance with chapter 43.88 RCW: PROVIDED, That the reimbursement to the state board for actual expenditures incurred in the final month of each biennium shall be less the initial advance made in such biennium;
     (14) Notwithstanding the provisions of subsection (12) of this section, may receive such gifts, grants, conveyances, devises, and bequests of real or personal property from private sources as may be made from time to time, in trust or otherwise, whenever the terms and conditions thereof will aid in carrying out the community and technical college programs and may sell, lease or exchange, invest or expend the same or the proceeds, rents, profits and income thereof according to the terms and conditions thereof; and adopt regulations to govern the receipt and expenditure of the proceeds, rents, profits and income thereof;
     (15) The college board shall have the power of eminent domain;
     (16) Provide general supervision over the state's technical colleges. The president of each technical college shall report directly to the director of the state board for community and technical colleges, or the director's designee, until local control is assumed by a new or existing board of trustees as appropriate, except that a college president shall have authority over program decisions of his or her college until the establishment of a board of trustees for that college. The directors of the vocational-technical institutes on March 1, 1991, shall be designated as the presidents of the new technical colleges; and
     (17) Enter into negotiations to create a master performance agreement for the system of community and technical colleges as provided in chapter 28B.-- RCW (sections 1 through 7 of this act).

Sec. 9   RCW 28B.76.290 and 1993 c 77 s 2 are each amended to read as follows:
     The board shall coordinate educational activities among all segments of higher education taking into account the educational programs, facilities, and other resources of both public and independent two and four-year colleges and universities. The four-year institutions and the state board for community and technical colleges shall coordinate information and activities with the board. The board shall have the following additional responsibilities:
     (1) Promote interinstitutional cooperation;
     (2) Establish minimum admission standards for four-year institutions, including a requirement that coursework in American sign language or an American Indian language shall satisfy any requirement for instruction in a language other than English that the board or the institutions may establish as a general undergraduate admissions requirement;
     (3) Establish transfer policies;
     (4) Adopt rules implementing statutory residency requirements;
     (5) Develop and administer reciprocity agreements with bordering states and the province of British Columbia;
     (6) Review and recommend compensation practices and levels for administrative employees, exempt under chapter ((28B.16)) 41.06 RCW, and faculty using comparative data from peer institutions;
     (7) Monitor higher education activities for compliance with all relevant state policies for higher education;
     (8) Arbitrate disputes between and among four-year institutions or between and among four-year institutions and community colleges at the request of one or more of the institutions involved, or at the request of the governor, or from a resolution adopted by the legislature. The decision of the board shall be binding on the participants in the dispute;
     (9) Establish and implement a state system for collecting, analyzing, and distributing information;
     (10) Recommend to the governor and the legislature ways to remove any economic incentives to use off-campus program funds for on-campus activities; ((and))
     (11) Make recommendations to increase minority participation, and monitor and report on the progress of minority participation in higher education; and
     (12) Enter into negotiations to create performance agreements with the governing boards of the public four-year institutions as provided in chapter 28B.-- RCW (sections 1 through 7 of this act).

NEW SECTION.  Sec. 10   RCW 28B.76.270 (Accountability monitoring and reporting system -- Institution biennial plans and performance targets -- Biennial reports to the legislature) and 2004 c 275 s 11 are each repealed.

NEW SECTION.  Sec. 11   Part headings used in this act are not any part of the law.

NEW SECTION.  Sec. 12   Sections 1 through 7 of this act constitute a new chapter in Title 28B RCW.