BILL REQ. #:  H-3239.2 

Read first time 04/03/2007.   Referred to Committee on Capital Budget.

     AN ACT Relating to enhancing state school construction assistance; amending RCW 82.02.090; adding a new section to chapter 28A.515 RCW; creating new sections; providing a contingent effective date; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature recognizes that many public school districts have existing facilities in need of repair and renovation in order to meet programmatic needs, improve safety, and meet the needs of an increasing student population. The legislature also recognizes that many school districts are experiencing high student enrollment growth beyond current physical capacity, placing a considerable burden on existing facilities. In addition, there are a number of school districts that have experienced multiple consecutive levy failures, making them ineligible for state school construction assistance. Despite the progress that the legislature has made to increase school construction funding over the past two biennia, the need for funding of additional projects continues to outpace available resources.
     It is the intent of the legislature to continue to address the construction needs in Washington's school districts by projecting school construction needs over a ten-year period; determining the appropriate state share of school construction assistance; evaluating and enhancing the state's distribution formulae for allocating resources to school districts; establishing a goal to increase the minimum state match level from twenty percent to fifty percent; establishing a goal to provide no less than one billion dollars of funding for school construction; creating new revenue sources to support school construction; phasing out and replacing impact fee revenue collected under RCW 82.02.050 through 82.02.100 for school facilities; and creating three new funds to target the state's investment in school construction in key areas.

NEW SECTION.  Sec. 2   (1)(a) A joint legislative task force on school construction funding is established, with members as provided in this subsection.
     (i) The joint legislative task force on school construction funding shall consist of eight members, two members each, one from each major caucus, from the house of representatives committees on capital budget and education, appointed by the speaker of the house of representatives, and two members each, one from each major caucus, from the senate committees on ways and means and early learning and K-12 education, appointed by the president of the senate.
     (ii) The president of the senate and the speaker of the house of representatives jointly shall appoint two members representing school districts.
     (iii) The office of the superintendent of public instruction and the office of financial management must cooperate with the task force and must maintain liaison representatives.
     (iv) The task force may consult with other interested parties, as may be appropriate, for technical advice and assistance.
     (b) The task force must choose a chair from among its legislative membership.
     (2) The task force must examine the following:
     (a) The statutory provisions regarding the funding of school construction projects;
     (b) Eligibility requirements and distribution formulae for the state's school construction assistance grant program including, but not limited to the following:
     (i) The criteria used to determine a school district's eligibility to receive state assistance;
     (ii) The maximum cost per square foot of construction used to calculate the amount of state assistance to school districts for school construction and modernization;
     (iii) The amount of instructional space a school district is eligible to build or remodel with state assistance; and
     (iv) The state matching ratio;
     (c) The nature and costs of school construction needs anticipated for the ten-year period ending June 30, 2017;
     (d) Flexibility needed in the system to address diverse district and geographic needs;
     (e) Potential revenue sources to increase stability of available funding sources and provide for anticipated future construction needs, as well as alternative funding mechanisms for school construction including, but not limited to funding mechanisms that: (i) Phase out and replace revenue collected under RCW 82.02.050 through 82.02.100 for school facilities; and (ii) encourage cooperative partnerships with early learning providers, skill centers, community and technical colleges, or public baccalaureate institutions through the use of a supermatch concept;
     (f) Methods for ensuring that revenue sources examined under this subsection: (i) Provide revenue to better fund future construction needs; and (ii) address construction needs unique to high growth areas, including high growth areas that do not impose impact fees under RCW 82.02.050 through 82.02.100 and that have experienced consecutive school levy failures.
     (3) The office of the superintendent of public instruction shall provide progress updates to the task force on the development of the pilot inventory of school district facility information as provided for in section . . ., chapter . . ., Laws of 2007 (Engrossed Substitute House Bill No. 1092) for review and comment by the task force.
     (4) Staff support for the task force must be provided by the house of representatives office of program research and the senate committee services.
     (5) Legislative members of the task force must be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members, except those representing an employer or organization, are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
     (6) The expenses of the task force must be paid jointly by the senate and the house of representatives. Task force expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.
     (7) The task force must report its findings and recommendations to the governor and the appropriate committees of the senate and the house of representatives by December 1, 2007.
     (8) This section expires December 31, 2007.

NEW SECTION.  Sec. 3   A new section is added to chapter 28A.515 RCW to read as follows:
     (1) The high growth school district assistance account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used solely for new construction, modernization, or replacement of school facilities within high growth districts that do not receive impact fees for school facilities pursuant to RCW 82.02.050 through 82.02.100, and that have experienced three or more consecutive bond levy failures.
     (2) The school district capital equalization account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used solely to fund the impact of future increases to the minimum level of the state matching percentage of project costs that will be paid for by the state.
     (3) The high growth school district transition account is created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account must be used solely for system improvements for school facilities within high growth districts that receive impact fees for school facilities pursuant to RCW 82.02.050 through 82.02.100.
     (4) The definitions in this subsection apply throughout this section.
     (a) "High growth" means actual enrollment, as provided by the office of the superintendent of public instruction, on May 1st of the current school year that is at least ten percent greater than enrollment on May 1st of the school year three years prior to the current school year.
     (b) "Impact fee" means a fee imposed pursuant to RCW 82.02.050 through 82.02.090 for system improvements for school facilities.
     (c) "System improvement" has the same meaning as in RCW 82.02.090.

Sec. 4   RCW 82.02.090 and 1990 1st ex.s. c 17 s 48 are each amended to read as follows:
     Unless the context clearly requires otherwise, the following definitions shall apply in RCW 82.02.050 through 82.02.090:
     (1) "Development activity" means any construction or expansion of a building, structure, or use, any change in use of a building or structure, or any changes in the use of land, that creates additional demand and need for public facilities.
     (2) "Development approval" means any written authorization from a county, city, or town which authorizes the commencement of development activity.
     (3) "Impact fee" means a payment of money imposed upon development as a condition of development approval to pay for public facilities needed to serve new growth and development, and that is reasonably related to the new development that creates additional demand and need for public facilities, that is a proportionate share of the cost of the public facilities, and that is used for facilities that reasonably benefit the new development. "Impact fee" does not include a reasonable permit or application fee.
     (4) "Owner" means the owner of record of real property, although when real property is being purchased under a real estate contract, the purchaser shall be considered the owner of the real property if the contract is recorded.
     (5) "Proportionate share" means that portion of the cost of public facility improvements that are reasonably related to the service demands and needs of new development.
     (6) "Project improvements" mean site improvements and facilities that are planned and designed to provide service for a particular development project and that are necessary for the use and convenience of the occupants or users of the project, and are not system improvements. No improvement or facility included in a capital facilities plan approved by the governing body of the county, city, or town shall be considered a project improvement.
     (7) "Public facilities" means the following capital facilities owned or operated by government entities: (a) Public streets and roads; (b) publicly owned parks, open space, and recreation facilities; and (c) ((school facilities; and (d))) fire protection facilities in jurisdictions that are not part of a fire district.
     (8) "Service area" means a geographic area defined by a county, city, town, or intergovernmental agreement in which a defined set of public facilities provide service to development within the area. Service areas shall be designated on the basis of sound planning or engineering principles.
     (9) "System improvements" mean public facilities that are included in the capital facilities plan and are designed to provide service to service areas within the community at large, in contrast to project improvements.

NEW SECTION.  Sec. 5   Section 4 of this act takes effect July 1, 2009, if specific funding or a funding source, for the purposes of section 4 of this act, referencing section 4 of this act by bill or chapter number and section number, or RCW number, is provided by June 30, 2009, in the omnibus appropriations act, the capital appropriations act, or legislation. If specific funding or a funding source for the purposes of section 4 of this act, referencing section 4 of this act by bill or chapter number and section number, or RCW number, is not provided by June 30, 2009, in the omnibus appropriations act, the capital appropriations act, or legislation, section 4 of this act is null and void.