"Sec. 1   RCW 43.63A.750 and 2006 c 371 s 235 are each amended to read as follows:
     (1) A competitive grant program is created to assist the following nonprofit arts and cultural organizations in acquiring, constructing, or rehabilitating the organization's facilities:
     (a) Performing arts organizations, art museums, and cultural ((facilities is created)) organizations; and
     (b) Zoos, aquariums, and technology and science centers. To be eligible, a zoo or aquarium must be an organization accredited by the association of zoos and aquariums and a technology and science center must be an organization that meets the requirements to be a member of the association of science - technology centers.
     (2)(a)(i) In its biennial capital budget request to the governor and legislature, the department shall submit ((a)) two lists of eligible, recommended ((performing arts, art museum projects, and cultural organization)) facilities projects ((eligible for funding to the governor and the legislature in the department's biennial capital budget request beginning with the 2001-2003 biennium and thereafter)), one for projects of organizations listed in subsection (1)(a) of this section and one for projects of organizations listed in subsection (1) (b) of this section. The lists, each in priority order, shall include a description of each project, the amount of recommended state funding, and documentation of nonstate funds to be used for the project. The total amount of recommended state funding for projects on a ((biennial)) project list ((shall)) may not exceed:
     (A) Twelve million dollars for projects of organizations listed in subsection (1)(a) of this section; and
     (B) Four million dollars for projects of organizations listed in subsection (1)(b) of this section.
     (ii) For projects that are a collaboration between organizations listed in subsection (1)(a) and (b) of this section, the collaborating organizations may submit a joint application identifying the respective funding amounts requested under (a)(i)(A) and (B) of this subsection. The requested funding under each list may not exceed any per project funding limit established by the department for each list. If the department includes a joint project in its capital budget request, the department must identify the corresponding parts of the project on each list as a joint project. This subsection does not modify the department's authority to evaluate and rank applications as provided in this section.
     (b) The department shall establish a competitive process to prioritize applications for state assistance as follows:
     (i) The department shall conduct a statewide solicitation of project applications from nonprofit organizations, local governments, and other entities, as determined by the department. The department shall evaluate and rank applications, using objective criteria, in consultation with a citizen advisory committee, ((including)) which must include a representative from the state arts commission((, using objective criteria)) and a representative with expertise in one or more of the subject matters relevant to the organizations listed in subsection (1)(b) of this section. The evaluation and ranking process shall also consider local community support for projects and an examination of existing assets that applicants may apply to projects.
     (ii) The department may establish the amount of state grant assistance for individual project applications but the amount shall not exceed twenty percent of the estimated total capital cost or actual cost of a project, whichever is less. The remaining portions of the project capital cost shall be a match from nonstate sources. The nonstate match may include cash, the value of real property when acquired solely for the purpose of the project, and in-kind contributions. The department is authorized to set matching requirements for individual projects. State assistance may be used to fund separate definable phases of a project if the project demonstrates adequate progress and has secured the necessary match funding.
     (iii) The department ((shall)) may not sign contracts or otherwise financially obligate funds under this section until the legislature has approved a specific list or lists of projects. In contracts for grants authorized under this section, the department ((shall)) must include provisions requiring that capital improvements be held by the grantee for a specified period of time appropriate to the amount of the grant and that facilities be used for the express purpose of the grant. If the grantee is found to be out of compliance with provisions of the contract, the grantee ((shall)) must repay to the state general fund the principal amount of the grant plus interest calculated at the rate of interest on state of Washington general obligation bonds issued most closely to the date of authorization of the grant."