SB 6047

S-4730.1
  SUBSTITUTE SENATE BILL 6047
State of Washington  69th Legislature        2026 Regular Session
By Senate Ways & Means (originally sponsored by Senators Trudeau,
Schoesler, and Nobles)
READ FIRST TIME 02/04/26.
1      AN ACT Relating to statutory guidelines for the administration of
2  state capital projects; amending RCW 39.10.300, 43.88.030, 43.88.110,
3  43.88.145, 43.88.160, 43.31.574, and 28B.77.070; adding new sections
4  to chapter 43.88 RCW; and repealing RCW 43.88D.010.
5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
6     Sec. 1.   RCW 39.10.300 and 2021 c 230 s 6 are each amended to
7 read as follows:
8     (1) Subject to the requirements in RCW 39.10.250, 39.10.270, or
9 39.10.280, public bodies may utilize the design-build procedure,
10 including progressive design-build, for public works projects in
11 which the total project cost is over $2,000,000 and where:
12     (a) The construction activities are highly specialized and a
13 design-build approach is critical in developing the construction
14 methodology; or
15     (b) The projects selected provide opportunity for greater
16 innovation or efficiencies between the designer and the builder; or
17     (c) Significant savings in project delivery time would be
18 realized.
19     (2) Subject to the process in RCW 39.10.270 or 39.10.280, public
20 bodies may use the design-build procedure, including progressive
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1 design-build, for parking garages and preengineered metal buildings,
2 regardless of cost.
3     (3) The design-build procedure may be used for the construction
4 or erection of portable facilities as defined in WAC 392-343-018, or
5 not more than 10 prefabricated modular buildings per installation
6 site, regardless of cost and is not subject to approval by the
7 committee.
8     (4) Except for utility projects and approved demonstration
9 projects, the design-build procedure may not be used to procure
10 operations and maintenance services for a period longer than three
11 years. State agency projects that propose to use the design-build-
12 operate-maintain procedure shall submit cost estimates for the
13 construction portion of the project consistent with the office of
14 financial management's capital budget requirements. Operations and
15 maintenance costs must be shown separately and must not be included
16 as part of the capital budget request.
17     (5) Subject to the process in RCW 39.10.280, a public body may
18 seek committee approval for a design-build demonstration project that
19 includes procurement of operations and maintenance services for a
20 period longer than three years.
21     (6)   Washington   State  University   may   perform   design-build
22 demonstration projects with a total project cost under $2,000,000 to
23 develop best practices in encouraging participation of small business
24 entities and of minority, women, and veteran-owned businesses, and in
25 managing   capital   projects  under   $2,000,000.   Washington   State
26 University shall provide reports to the board every other year,
27 starting with two years after May 10, 2021. Such reports shall
28 include information on the type of projects performed, the initial
29 and final project cost and schedule of the projects, participation of
30 small business entities and of minority, women, and veteran-owned
31 businesses, and the best practices derived from the projects. The
32 report shall include outreach measures developed in concert with the
33 office of minority and women's business enterprises.
34     (7) Projects employing alternative works construction procedures
35 under this chapter are subject to the allotment procedures adopted by
36 the office of financial management and in compliance with RCW
37 43.88.110.
38     Sec. 2. RCW 43.88.030 and 2025 c 414 s 8034 are each amended to
39 read as follows:
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1     (1) The director of financial management shall provide all
2 agencies with a complete set of instructions for submitting biennial
3 budget requests to the director at least three months before agency
4 budget documents are due into the office of financial management. The
5 budget document or documents shall consist of the governor's budget
6 message which shall be explanatory of the budget and shall contain an
7 outline of the proposed financial policies of the state for the
8 ensuing fiscal period, as well as an outline of the proposed six-year
9 financial policies where applicable, and shall describe in connection
10 therewith the important features of the budget. The biennial budget
11 document or documents shall also describe performance indicators that
12 demonstrate measurable progress towards priority results. The message
13 shall set forth the reasons for salient changes from the previous
14 fiscal period in expenditure and revenue items and shall explain any
15 major changes in financial policy. Attached to the budget message
16 shall be such supporting schedules, exhibits and other explanatory
17 material in respect to both current operations and capital
18 improvements as the governor shall deem to be useful to the
19 legislature. The budget document or documents shall set forth a
20 proposal for expenditures in the ensuing fiscal period, or six-year
21 period where applicable, based upon the estimated revenues and
22 caseloads as approved by the economic and revenue forecast council
23 and caseload forecast council or upon the estimated revenues and
24 caseloads of the office of financial management for those funds,
25 accounts, sources, and programs for which the forecast councils do
26 not prepare an official forecast. Revenues shall be estimated for
27 such fiscal period from the source and at the rates existing by law
28 at the time of submission of the budget document, including the
29 supplemental budgets submitted in the even-numbered years of a
30 biennium. However, the estimated revenues and caseloads for use in
31 the governor's budget document may be adjusted to reflect budgetary
32 revenue transfers and revenue and caseload estimates dependent upon
33 budgetary assumptions of enrollments, workloads, and caseloads. All
34 adjustments to the approved estimated revenues and caseloads must be
35 set forth in the budget document. The governor may additionally
36 submit, as an appendix to each supplemental, biennial, or six-year
37 agency budget or to the budget document or documents, a proposal for
38 expenditures in the ensuing fiscal period from revenue sources
39 derived from proposed changes in existing statutes.
40     The budget document or documents shall also contain:
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1     (a) Revenues classified by fund and source for the immediately
2 past fiscal period, those received or anticipated for the current
3 fiscal period, and those anticipated for the ensuing biennium;
4     (b) The undesignated fund balance or deficit, by fund;
5     (c) Such additional information dealing with expenditures,
6 revenues, workload, performance, and personnel as the legislature may
7 direct by law or concurrent resolution;
8     (d) Such additional information dealing with revenues and
9 expenditures as the governor shall deem pertinent and useful to the
10 legislature;
11     (e)   Tabulations  showing   expenditures   classified  by  fund,
12 function, and agency;
13     (f) The expenditures that include nonbudgeted, nonappropriated
14 accounts outside the state treasury;
15     (g) Identification of all proposed direct expenditures to
16 implement the Puget Sound water quality plan under chapter 90.71 RCW,
17 shown by agency and in total; and
18     (h) Tabulations showing each postretirement adjustment by
19 retirement system established after fiscal year 1991, to include, but
20 not be limited to, estimated total payments made to the end of the
21 previous biennial period, estimated payments for the present
22 biennium, and estimated payments for the ensuing biennium.
23     (2) The budget document or documents shall include detailed
24 estimates of all anticipated revenues applicable to proposed
25 operating or capital expenditures and shall also include all proposed
26 operating   or   capital   expenditures.  The    total  of   beginning
27 undesignated fund balance and estimated revenues less working capital
28 and other reserves shall equal or exceed the total of proposed
29 applicable expenditures. The budget document or documents shall
30 further include:
31     (a) Interest, amortization and redemption charges on the state
32 debt;
33     (b) Payments of all reliefs, judgments, and claims;
34     (c) Other statutory expenditures;
35     (d) Expenditures incident to the operation for each agency;
36     (e) Revenues derived from agency operations;
37     (f) Expenditures and revenues shall be given in comparative form
38 showing those incurred or received for the immediately past fiscal
39 period and those anticipated for the current biennium and next
40 ensuing biennium;
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1     (g) A showing and explanation of amounts of general fund and
2 other funds obligations for debt service and any transfers of moneys
3 that otherwise would have been available for appropriation;
4     (h) Common school expenditures on a fiscal-year basis;
5     (i) A showing, by agency, of the value and purpose of financing
6 contracts for the lease/purchase or acquisition of personal or real
7 property for the current and ensuing fiscal periods; and
8     (j) A showing and explanation of anticipated amounts of general
9 fund and other funds required to amortize the unfunded actuarial
10 accrued liability of the retirement system specified under chapter
11 41.45 RCW, and the contributions to meet such amortization, stated in
12 total dollars and as a level percentage of total compensation.
13     (3) The governor's operating budget document or documents shall
14 reflect the statewide priorities as required by RCW 43.88.090.
15     (4) The governor's operating budget document or documents shall
16 identify activities that are not addressing the statewide priorities.
17     (5)(a) Beginning in the 2021-2023 fiscal biennium, the governor's
18 operating budget document or documents submitted to the legislature
19 must leave, in total, a positive ending fund balance in the general
20 fund and related funds.
21     (b) Beginning in the 2021-2023 fiscal biennium, the projected
22 maintenance level of the governor's operating budget document or
23 documents submitted to the legislature must not exceed the available
24 fiscal resources for the next ensuing fiscal biennium.
25     (c) For purposes of this subsection:
26     (i) "Available fiscal resources" means the beginning general fund
27 and related funds balances and any fiscal resources estimated for the
28 general fund and related funds, adjusted for proposed revenue
29 legislation, and with forecasted revenues adjusted to the greater of
30 (A) the official general fund and related funds revenue forecast for
31 the ensuing biennium, or (B) the official general fund and related
32 funds forecast for the second fiscal year of the current fiscal
33 biennium, increased by 4.5 percent for each fiscal year of the
34 ensuing biennium.
35     (ii) "Projected maintenance level" means estimated appropriations
36 necessary to maintain the continuing costs of program and service
37 levels either funded in the governor's budget document or documents
38 submitted to the legislature or mandated by other state or federal
39 law, adjusted by the estimated cost of proposed executive branch
40 legislation, and the amount of any general fund moneys projected to
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1 be transferred to the budget stabilization account pursuant to
2 Article VII, section 12 of the state Constitution. Proposed executive
3 branch legislation does not include proposals by institutions of
4 higher education, other separately elected officials, or other
5 boards, commissions, and offices not under the authority of the
6 governor that are not funded or assumed in the governor's budget
7 document or documents submitted to the legislature.
8     (iii) "Related funds" has the meaning defined in RCW 43.88.055.
9     (d) (b) of this subsection (5) does not apply:
10     (i) To any governor-proposed legislation submitted to the
11 legislature that makes net reductions in general fund and related
12 funds appropriations to prevent the governor from making across-the-
13 board reductions in allotments for these particular funds as provided
14 in RCW 43.88.110(((10))) (7); or
15     (ii) In a fiscal biennium for which the governor proposes
16 appropriations from the budget stabilization account pursuant to
17 Article VII, section 12(d)(ii) of the state Constitution.
18     (6) A separate capital budget document or schedule shall be
19 submitted ((that will contain the following:
20     (a) A statement setting forth a long-range facilities plan for
21 the state that identifies and includes the highest priority needs
22 within affordable spending levels;
23     (b) A capital program consisting of proposed capital projects for
24 the next biennium and the two biennia succeeding the next biennium
25 consistent with the long-range facilities plan. Insomuch as is
26 practical, and recognizing emergent needs, the capital program shall
27 reflect the priorities, projects, and spending levels proposed in
28 previously submitted capital budget documents in order to provide a
29 reliable long-range planning tool for the legislature and state
30 agencies;
31     (c) A capital plan consisting of proposed capital spending for at
32 least four biennia succeeding the next biennium;
33     (d) A strategic plan for reducing backlogs of maintenance and
34 repair projects. The plan shall include a prioritized list of
35 specific facility deficiencies and capital projects to address the
36 deficiencies for each agency, cost estimates for each project, a
37 schedule for completing projects over a reasonable period of time,
38 and identification of normal maintenance activities to reduce future
39 backlogs;
40     (e) A statement of the reason or purpose for a project;
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1     (f) Verification that a project is consistent with the provisions
2 set forth in chapter 36.70A RCW;
3     (g) A statement about the proposed site, size, and estimated life
4 of the project, if applicable;
5     (h) Estimated total project cost;
6     (i) For major projects valued over five million dollars,
7 estimated costs for the following project components: Acquisition,
8 consultant services, construction, equipment, project management, and
9 other costs included as part of the project. Project component costs
10 shall be displayed in a standard format defined by the office of
11 financial management to allow comparisons between projects;
12     (j) Estimated total project cost for each phase of the project as
13 defined by the office of financial management;
14     (k) Estimated ensuing biennium costs;
15     (l) Estimated costs beyond the ensuing biennium;
16     (m) Estimated construction start and completion dates;
17     (n) Source and type of funds proposed;
18     (o) Estimated ongoing operating budget costs or savings resulting
19 from the project, including staffing and maintenance costs;
20     (p) For any capital appropriation requested for a state agency
21 for the acquisition of land or the capital improvement of land in
22 which the primary purpose of the acquisition or improvement is
23 recreation or wildlife habitat conservation, the capital budget
24 document, or an omnibus list of recreation and habitat acquisitions
25 provided with the governor's budget document, shall identify the
26 projected costs of operation and maintenance for at least the two
27 biennia succeeding the next biennium. Omnibus lists of habitat and
28 recreation land acquisitions shall include individual project cost
29 estimates for operation and maintenance as well as a total for all
30 state projects included in the list. The document shall identify the
31 source of funds from which the operation and maintenance costs are
32 proposed to be funded;
33     (q) For any capital budget request for funding in the 2025-2027
34 or 2027-2029 fiscal biennia for which the project cost is
35 substantially increased, a statement detailing the amount and reason
36 for the additional cost. If the increased cost is the result of a
37 change in design, the agency must also submit a construction cost
38 estimate for the design as originally submitted. For purposes of this
39 subsection (6)(q), "substantially increased" means total estimated
40 project costs are more than 15 percent above those listed in the
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1 prior agency budget request and for which the legislature relied in
2 making a funding decision for design or construction, adjusted for
3 C-100 inflation factors;
4     (r) Such other information bearing upon capital projects as the
5 governor deems to be useful;
6     (s) Standard terms, including a standard and uniform definition
7 of normal maintenance, for all capital projects; and
8     (t) Such other information as the legislature may direct by law
9 or concurrent resolution.
10     For purposes of this subsection (6), the term "capital project"
11 shall be defined subsequent to the analysis, findings, and
12 recommendations of a joint committee comprised of representatives
13 from the house capital appropriations committee, senate ways and
14 means committee, legislative evaluation and accountability program
15 committee, and office of financial management)) consistent with
16 section 3 of this act.
17     (7) No change affecting the comparability of agency or program
18 information relating to expenditures, revenues, workload, performance
19 and personnel shall be made in the format of any budget document or
20 report presented to the legislature under this section or RCW
21 43.88.160(1) relative to the format of the budget document or report
22 which was presented to the previous regular session of the
23 legislature during an odd-numbered year without prior legislative
24 concurrence. Prior legislative concurrence shall consist of (a) a
25 favorable majority vote on the proposal by the standing committees on
26 ways and means of both houses if the legislature is in session or (b)
27 a favorable majority vote on the proposal by members of the
28 legislative evaluation and accountability program committee if the
29 legislature is not in session.
30     NEW SECTION.   Sec. 3.   A new section is added to chapter 43.88
31 RCW to read as follows:
32     (1) Capital budget documents or schedules submitted to the
33 legislature as required by RCW 43.88.030 must contain the following:
34     (a) A statement setting forth a long-range facilities plan for
35 the state that identifies and includes the highest priority needs
36 within affordable spending levels;
37     (b) A statement setting forth the full-time equivalent staff for
38 each agency assigned to capital projects, in a manner comparable to
39 staff reporting for operating expenditures;
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1     (c) A capital program consisting of proposed capital projects for
2 the next biennium and the two biennia succeeding the next biennium
3 consistent with the long-range facilities plan. Insomuch as is
4 practical, and recognizing emergent needs, the capital program must
5 reflect the priorities, projects, and spending levels proposed in
6 previously submitted capital budget documents in order to provide a
7 reliable long-range planning tool for the legislature and state
8 agencies;
9     (d) A capital plan consisting of proposed capital spending for at
10 least four biennia succeeding the next biennium;
11     (e) A strategic plan for reducing backlogs of maintenance and
12 repair projects. The plan must include a prioritized list of specific
13 facility   deficiencies   and   capital  projects   to  address   the
14 deficiencies for each agency, cost estimates for each project, a
15 schedule for completing projects over a reasonable period of time,
16 and identification of normal maintenance activities to reduce future
17 backlogs;
18     (f) For each major capital project request submitted:
19     (i) A statement of the reason or purpose for a project;
20     (ii) Verification that a project is consistent with chapter
21 36.70A RCW;
22     (iii) A statement about the proposed site, size, and estimated
23 life of the project, if applicable;
24     (iv) Estimated total project cost;
25     (v) For major capital projects valued over $5,000,000, estimated
26 costs for the following project components: Acquisition, consultant
27 services, construction, equipment, project management, and other
28 costs included as part of the project. Project component costs must
29 be displayed in a standard format defined by the office of financial
30 management to allow comparisons between projects;
31     (vi) Estimated total project cost for each phase of the project
32 as defined by the office of financial management;
33     (vii) Estimated ensuing biennium costs;
34     (viii) Estimated costs beyond the ensuing biennium;
35     (ix) Estimated construction start and completion dates;
36     (x) Source and type of funds proposed; and
37     (xi) Estimated ongoing operating budget costs or savings
38 resulting from the project, including staffing and maintenance costs;
39     (g) For any capital appropriation requested for a state agency
40 for the acquisition of land or the capital improvement of land in
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1 which the primary purpose of the acquisition or improvement is
2 recreation or wildlife habitat conservation, the capital budget
3 document, or an omnibus list of recreation and habitat acquisitions
4 provided with the governor's budget document, must identify the
5 projected costs of operation and maintenance for at least the two
6 biennia succeeding the next biennium. Omnibus lists of habitat and
7 recreation land acquisitions must include individual project cost
8 estimates for operation and maintenance as well as a total for all
9 state projects included in the list. The document must identify the
10 source of funds from which the operation and maintenance costs are
11 proposed to be funded;
12     (h) For any capital budget request for funding for which the
13 project cost is substantially increased, a statement detailing the
14 amount and reason for the additional cost. If the increased cost is
15 the result of a change in design, the agency must also submit a
16 construction cost estimate for the design as originally submitted.
17 For purposes of this subsection (1)(h), "substantially increased"
18 means total estimated project costs are more than 15 percent above
19 those listed in the prior agency budget request and for which the
20 legislature relied on making a funding decision for design or
21 construction, adjusted for C-100 inflation factors;
22     (i) The amount requested for minor works projects, which can
23 reasonably be spent in the biennium for which it is appropriated.
24 Requests must be accompanied by a list of minor works projects
25 completed or in progress for the current biennium including: Project
26 status, project cost, amount expended, and amount encumbered for
27 projects not yet complete;
28     (j) A list of appropriations for grant programs and community
29 projects that have exceeded the time limits set out in section 5 of
30 this act for reappropriation;
31     (k) Such other information bearing upon capital projects as the
32 governor deems useful;
33     (l) Standard terms, including a standard and uniform definition
34 of normal maintenance, for all capital projects; and
35     (m) Such other information as the legislature may direct by law
36 or concurrent resolution.
37     (2) The following definitions apply throughout this section and
38 section 4 of this act unless the context clearly requires otherwise.
39     (a) "Capital project" means all phases of construction of a new
40 facility, or significant, long-term renewal improvements or repairs
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1 to existing facilities, and may also include land or building
2 acquisition and grants passed through to others for capital projects.
3 "Capital project" does not include routine maintenance or operating
4 expenditures.
5     (b) "Institutions of higher education" has the same meaning as in
6 RCW 28B.77.070.
7     (c) "Major capital project" means any capital project in excess
8 of $4,000,000 for institutions of higher education and $2,000,000 for
9 all other agencies.
10     (d) "Minor works projects" means any capital project that does
11 not meet the threshold for a major capital project and which meets
12 the requirements set out in section 4 of this act.
13    NEW SECTION.   Sec. 4.   A new section is added to chapter 43.88
14 RCW to read as follows:
15     (1) It is the intent of the legislature that amounts appropriated
16 for minor works projects be spent in the biennium for which they are
17 appropriated.
18     (2) For the purpose of this section, "minor works projects" means
19 projects that are valued between $25,000 and $2,000,000, with the
20 exception of higher education minor works projects, which may be
21 valued up to $4,000,000.
22     (3) Administrative fees may not exceed four percent for each
23 project.
24     (4) Unless amounts appropriated by the legislature are designated
25 for a particular purpose, agencies are encouraged to prioritize minor
26 works projects based on:
27     (a) Health and safety of employees or clients served;
28     (b) The amount of use of a given facility or system;
29     (c) The avoidance of future increased costs of repair or
30 maintenance; and
31     (d) The avoidance of increased operating costs.
32     (5) Minor works projects appropriations may not be used for:
33     (a) Projects that are a phase of a larger project, and that if
34 combined over a continuous period of time, would exceed the amounts
35 provided in subsection (2) of this section;
36     (b) Studies, planning, or design, except for technical or
37 engineering reviews or designs that lead directly to and support a
38 minor works project;
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1     (c) Movable, temporary, and traditionally funded operating
2 equipment not in compliance with the equipment criteria established
3 by the office of financial management, including rolling stock and
4 computers;
5     (d) Software not dedicated to control of a specialized system;
6     (e) Moving expenses;
7     (f) Land or facility acquisition; or
8     (g) Funding for projects with funding shortfalls unless expressly
9 authorized by the office of financial management for exigent
10 circumstances with notice to the legislative fiscal committees.
11     (6) If a minor works project appropriation does not specify it is
12 to be used for preservation or program improvements, up to 25 percent
13 of the appropriation may be used for program improvements.
14 Improvements for accessibility in compliance with the Americans with
15 disabilities act qualify as preservation improvements.
16     (7) General minor works projects reappropriations should be spent
17 before newly appropriated amounts.
18     (8) Requests for minor works projects appropriations for the next
19 biennium must take into account minor works projects amounts to be
20 reappropriated and the amount of minor works projects that can
21 reasonably be completed in the next biennium.
22     (9) Nothing in this section prohibits the office of financial
23 management from instituting further procedures before the allotment
24 of funds.
25     (10) The definitions in section 3 of this act apply to this
26 section.
27     NEW SECTION.   Sec. 5.   A new section is added to chapter 43.88
28 RCW to read as follows:
29     (1) The legislature intends that appropriations for grant
30 programs and community projects be spent in a timely manner in order
31 to accomplish the goal for which they were appropriated.
32     (2)(a) The legislature does not intend to reappropriate moneys
33 for projects for which a contract has not been executed within four
34 years from the date of original appropriation or for which
35 appropriations have not been spent within six years of original
36 appropriation:
37     (i) For grant programs and community projects appropriated from
38 the state building construction account; or
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1      (ii)   For   other  programs  for   which  the   capital  budget
2  appropriations act specifies the appropriation is subject to the
3  provisions of this section.
4      (b) Any request to reappropriate moneys for projects outside of
5  the time limits set out in (a) of this subsection must include an
6  explanation as to why additional time is needed to obligate or spend
7  the appropriation.
8      (3) Nothing in this section operates as a guarantee of
9  reappropriation.
10     Sec. 6. RCW 43.88.110 and 2021 c 54 s 2 are each amended to read
11 as follows:
12     This section sets forth the expenditure programs and the
13 allotment and reserve procedures to be followed by the executive
14 branch for public funds.
15     (1) Allotments of an appropriation for any fiscal period shall
16 conform to the terms, limits, or conditions of the appropriation.
17     (2) The director of financial management shall provide all
18 agencies with a complete set of operating and capital instructions
19 for preparing a statement of proposed expenditures at least thirty
20 days before the beginning of a fiscal period. The set of instructions
21 need not include specific appropriation amounts for the agency.
22     (3) Within forty-five days after the beginning of the fiscal
23 period or within forty-five days after the governor signs the omnibus
24 biennial appropriations act, whichever is later, all agencies shall
25 submit to the governor a statement of proposed expenditures at such
26 times and in such form as may be required by the governor.
27     (4) The office of financial management shall develop a method for
28 monitoring capital appropriations and expenditures that will capture
29 at least the following elements:
30     (a)   Appropriations   made   for   capital   projects   including
31 transportation projects;
32     (b) Estimates of total project costs including past, current,
33 ensuing, and future biennial costs;
34     (c) Comparisons of actual costs to estimated costs;
35     (d) Comparisons of estimated construction start and completion
36 dates with actual dates;
37     (e) Documentation of fund shifts between projects.
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1     This data may be incorporated into the existing accounting system
2 or into a separate project management system, as deemed appropriate
3 by the office of financial management.
4     (5) ((Except as provided for under subsection (6) of this
5 section))   Before  approving   allotments  for  any   major  capital
6 construction project with a total anticipated cost in excess of
7 $10,000,000, the office of financial management((, prior to approving
8 allotments for major capital construction projects valued over ten
9 million dollars,)) shall institute procedures for ((reviewing such
10 projects at the predesign stage that will reduce long-term costs and
11 increase facility efficiency. The procedures shall include, but not
12 be limited to, the following elements:
13     (a) Evaluation of facility program requirements and consistency
14 with long-range plans;
15     (b) Utilization of a system of cost, quality, and performance
16 standards to compare major capital construction projects; and
17     (c) A requirement to incorporate value-engineering analysis and
18 constructability review into the project schedule.
19     (6) The office of financial management may make an exception to
20 some or all of the predesign requirements in subsection (5) of this
21 section. The office of financial management shall report any
22 exception to the fiscal committees of the legislature and include:
23 (a) A description of the major capital project for which the
24 predesign waiver is made; (b) an explanation of the reason for the
25 waiver; and (c) a rough order of magnitude cost estimate for the
26 project's design and construction.
27     (7) In deliberations related to submitting an exception under
28 subsection (6) of this section, the office of financial management
29 shall consider the following factors:
30     (a) Whether there is any determination to be made regarding the
31 site of the project;
32     (b) Whether there is any determination to be made regarding
33 whether the project will involve renovation, new construction, or
34 both;
35     (c) Whether, within six years of submitting the request for
36 funding, the agency has completed, or initiated the construction of,
37 a substantially similar project;
38     (d) Whether there is any anticipated change to the project's
39 program or the services to be delivered at the facility;
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1     (e) Whether the requesting agency indicates that the project may
2 not require some or all of the requirements in subsection (5) of this
3 section due to a lack of complexity; and
4     (f) Whether any other factors related to project complexity or
5 risk, as determined by the office of financial management, could
6 reduce the need for, or scope of, a predesign.
7     (8) If under subsection (6) of this section, some or all of the
8 predesign requirements under subsection (5) of this section are
9 waived, the office of financial management may instead propose a
10 professional project cost estimate instead of a request for predesign
11 funding.
12     (9))) review and approval of the agency's predesign consistent
13 with section 7 of this act.
14     (6) No expenditure may be incurred or obligation entered into for
15 ((such)) major capital construction projects with a total anticipated
16 cost in excess of $10,000,000 including, without exception, land
17 acquisition, site development, predesign, design, construction, and
18 equipment acquisition and installation, until the allotment of the
19 funds to be expended has been approved by the office of financial
20 management. This limitation does not prohibit the continuation of
21 expenditures and obligations into the succeeding biennium for
22 projects for which allotments have been approved in the immediate
23 prior biennium.
24     (((10))) (7) If at any time during the fiscal period the governor
25 projects a cash deficit in a particular fund or account as defined by
26 RCW 43.88.050, the governor shall make across-the-board reductions in
27 allotments for that particular fund or account so as to prevent a
28 cash deficit, unless the legislature has directed the liquidation of
29 the cash deficit over one or more fiscal periods. Except for the
30 legislative and judicial branches and other agencies headed by
31 elective officials, the governor shall review the statement of
32 proposed operating expenditures for reasonableness and conformance
33 with legislative intent. The governor may request corrections of
34 proposed allotments submitted by the legislative and judicial
35 branches and agencies headed by elective officials if those proposed
36 allotments contain significant technical errors. Once the governor
37 approves the proposed allotments, further revisions may at the
38 request of the office of financial management or upon the agency's
39 initiative be made on a quarterly basis and must be accompanied by an
40 explanation of the reasons for significant changes. However, changes
  p. 15  SSB 6047
1 in appropriation level authorized by the legislature, changes
2 required by across-the-board reductions mandated by the governor,
3 changes caused by executive increases to spending authority, and
4 changes caused by executive decreases to spending authority for
5 failure to comply with the provisions of chapter 36.70A RCW may
6 require   additional   revisions.   Revisions  shall   not   be   made
7 retroactively. However, the governor may assign to a reserve status
8 any portion of an agency appropriation withheld as part of across-
9 the-board reductions made by the governor and any portion of an
10 agency appropriation conditioned on a contingent event by the
11 appropriations act. The governor may remove these amounts from
12 reserve status if the across-the-board reductions are subsequently
13 modified or if the contingent event occurs. The director of financial
14 management shall enter approved statements of proposed expenditures
15 into the state budgeting, accounting, and reporting system within
16 forty-five days after receipt of the proposed statements from the
17 agencies. If an agency or the director of financial management is
18 unable to meet these requirements, the director of financial
19 management shall provide a timely explanation in writing to the
20 legislative fiscal committees.
21     (((11))) (8) It is expressly provided that all agencies shall be
22 required to maintain accounting records and to report thereon in the
23 manner prescribed in this chapter and under the regulations issued
24 pursuant to this chapter. Within ninety days of the end of the fiscal
25 year, all agencies shall submit to the director of financial
26 management their final adjustments to close their books for the
27 fiscal year. Prior to submitting fiscal data, written or oral, to
28 committees of the legislature, it is the responsibility of the agency
29 submitting the data to reconcile it with the budget and accounting
30 data reported by the agency to the director of financial management.
31     (((12))) (9) The director of financial management may exempt
32 certain public funds from the allotment controls established under
33 this chapter if it is not practical or necessary to allot the funds.
34 Allotment control exemptions expire at the end of the fiscal biennium
35 for which they are granted. The director of financial management
36 shall report any exemptions granted under this subsection to the
37 legislative fiscal committees.
38     (10) For purposes of this section and section 7 of this act,
39 "total anticipated cost" means the sum of the anticipated cost of the
40 predesign, design, and construction phases of the project.
  p. 16  SSB 6047
1     NEW SECTION.   Sec. 7.   A new section is added to chapter 43.88
2 RCW to read as follows:
3     (1) Except as provided in subsection (3) of this section,
4 agencies must complete a predesign for any state construction project
5 with a total anticipated cost in excess of $10,000,000. The predesign
6 must include, but not be limited to, the following elements:
7     (a) Evaluation of facility program requirements and consistency
8 with long-range plans;
9     (b) Exploration of at least three distinct and viable project
10 alternatives, including evaluation of site or location options where
11 applicable, with justification of the chosen alternative as the most
12 reasonable and cost effective solution;
13     (c) An analysis of the life-cycle costs of the alternatives
14 explored, in accordance with RCW 39.35B.050 and the predesign manual
15 adopted by the office of financial management;
16     (d) Utilization of a system of cost, quality, and performance
17 standards to comparable major capital construction projects; and
18     (e) A requirement to incorporate value-engineering analysis and
19 constructability review into the project schedule.
20     (2) Prior to approval, the office of financial management shall
21 provide a copy of the predesign to the fiscal committees of the
22 legislature.
23     (3) The office of financial management may make an exception to
24 some or all of the predesign requirements. The office of financial
25 management shall report any exception to the fiscal committees of the
26 legislature and include: (a) A description of the major capital
27 project for which the predesign waiver is made; (b) an explanation of
28 the reason for the waiver; and (c) a rough order of magnitude cost
29 estimate for the project's design and construction.
30     (4) In deliberations related to submitting an exception under
31 subsection (3) of this section, the office of financial management
32 shall consider the following factors:
33     (a) Whether there is any determination to be made regarding the
34 site of the project;
35     (b) Whether there is any determination to be made regarding
36 whether the project will involve renovation, new construction, or
37 both;
38     (c) Whether, within six years of submitting the request for
39 funding, the agency has completed, or initiated the construction of,
40 a substantially similar project;
  p. 17  SSB 6047
1     (d) Whether there is any anticipated change to the project's
2 program or the services to be delivered at the facility;
3     (e) Whether the requesting agency indicates that the project may
4 not require some or all of the requirements in subsection (1) of this
5 section due to a lack of complexity; and
6     (f) Whether any other factors related to project complexity or
7 risk, as determined by the office of financial management, could
8 reduce the need for, or scope of, a predesign.
9     (5) If under subsection (3) of this section, some or all of the
10 predesign requirements are waived, the office of financial management
11 may instead propose a professional project cost estimate instead of a
12 request for predesign funding.
13     (6) The definitions in RCW 43.88.110 apply throughout this
14 section.
15     Sec. 8.   RCW 43.88.145 and 1994 c 219 s 6 are each amended to
16 read as follows:
17     (1) The ((capital appropriations act may authorize the governor,
18 through the director)) office of financial management((, to)) may
19 authorize a transfer of the appropriation authority for a capital
20 project that is in excess of the amount required for the completion
21 of the project to another capital project for which the appropriation
22 is insufficient.
23     (a) No such transfer may be used to expand the capacity or change
24 the intended use of the project beyond that intended by the
25 legislature in making the appropriation.
26     (b) The transfer may be effected only between capital projects
27 within a specific department, commission, agency, or institution of
28 higher education.
29     (c) The transfer may be effected only if the project from which
30 the transfer of funds is made is substantially complete and there are
31 funds remaining, or bids have been let on the project from which the
32 transfer of funds is made and it appears to a substantial certainty
33 that the project can be completed within the biennium for less than
34 the amount appropriated.
35     (2) For the purposes of this section, the legislature intends
36 that each project be defined as proposed to the legislature in the
37 governor's   budget   document,   unless  the   legislative   history
38 demonstrates that the legislature intended to define the scope of a
39 project in a different way.
  p. 18  SSB 6047
1      (3) The office of financial management shall notify the
2  legislative fiscal committees of the senate and the house of
3  representatives at least thirty days before any transfer is effected
4  under this section except emergency projects or any transfer under
5  two hundred fifty thousand dollars, and shall prepare a report to
6  such committees listing all completed transfers at the close of each
7  fiscal year.
8     Sec. 9.   RCW 43.88.160 and 2024 c 54 s 49 are each amended to
9 read as follows:
10     This   section   sets   forth  the   major   fiscal  duties   and
11 responsibilities of officers and agencies of the executive branch.
12 The regulations issued by the governor pursuant to this chapter shall
13 provide for a comprehensive, orderly basis for fiscal management and
14 control, including efficient accounting and reporting therefor, for
15 the executive branch of the state government and may include, in
16 addition, such requirements as will generally promote more efficient
17 public management in the state.
18     (1) Governor; director of financial management. The governor,
19 through the director of financial management, shall devise and
20 supervise a modern and complete accounting system for each agency to
21 the end that all revenues, expenditures, receipts, disbursements,
22 resources, and obligations of the state shall be properly and
23 systematically accounted for. The accounting system shall include the
24 development of accurate, timely records and reports of all financial
25 affairs of the state. The system shall also provide for central
26 accounts in the office of financial management at the level of detail
27 deemed necessary by the director to perform central financial
28 management. The director of financial management shall adopt and
29 periodically update an accounting procedures manual. Any agency
30 maintaining its own accounting and reporting system shall comply with
31 the updated accounting procedures manual and the rules of the
32 director adopted under this chapter. An agency may receive a waiver
33 from complying with this requirement if the waiver is approved by the
34 director. Waivers expire at the end of the fiscal biennium for which
35 they are granted. The director shall forward notice of waivers
36 granted to the appropriate legislative fiscal committees. The
37 director of financial management may require such financial,
38 statistical, and other reports as the director deems necessary from
39 all agencies covering any period.
  p. 19  SSB 6047
1     (2) Except as provided in chapter 43.88C RCW, the director of
2 financial management is responsible for quarterly reporting of
3 primary operating budget drivers such as applicable workloads,
4 caseload estimates, and appropriate unit cost data. These reports
5 shall be transmitted to the legislative fiscal committees or by
6 electronic means to the legislative evaluation and accountability
7 program committee. Quarterly reports shall include actual monthly
8 data and the variance between actual and estimated data to date. The
9 reports shall also include estimates of these items for the remainder
10 of the budget period.
11     (3) The director of financial management shall submit progress
12 reports at least ((annually)) twice a year to the appropriate
13 legislative committees regarding the status of all appropriated
14 capital projects with a total anticipated cost in excess of
15 $10,000,000, including transportation projects, and showing any
16 significant cost overruns or underruns. If funds are shifted from one
17 project to another, the office of financial management shall also
18 reflect this in the ((annual variance)) report. Once a project is
19 complete, the report shall provide a final summary showing estimated
20 start and completion dates of each project phase compared to actual
21 dates, estimated costs of each project phase compared to actual
22 costs, and whether or not there are any outstanding liabilities or
23 unsettled claims at the time of completion.
24     (4) In addition, the director of financial management, as agent
25 of the governor, shall:
26     (a) Develop and maintain a system of internal controls and
27 internal audits comprising methods and procedures to be adopted by
28 each agency that will safeguard its assets, check the accuracy and
29 reliability of its accounting data, promote operational efficiency,
30 and encourage adherence to prescribed managerial policies for
31 accounting and financial controls. The system developed by the
32 director shall include criteria for determining the scope and
33 comprehensiveness of internal controls required by classes of
34 agencies, depending on the level of resources at risk.
35     (i) For those agencies that the director determines internal
36 audit is required, the agency head or authorized designee shall be
37 assigned the responsibility and authority for establishing and
38 maintaining internal audits following professional audit standards
39 including generally accepted government auditing standards or
40 standards adopted by the institute of internal auditors, or both.
  p. 20  SSB 6047
1     (ii) For those agencies that the director determines internal
2 audit is not required, the agency head or authorized designee may
3 establish and maintain internal audits following professional audit
4 standards including generally accepted government auditing standards
5 or standards adopted by the institute of internal auditors, or both,
6 but at a minimum must comply with policies as established by the
7 director to assess the effectiveness of the agency's systems of
8 internal controls and risk management processes;
9     (b) Make surveys and analyses of agencies with the object of
10 determining better methods and increased effectiveness in the use of
11 manpower and materials; and the director shall authorize expenditures
12 for employee training to the end that the state may benefit from
13 training facilities made available to state employees;
14     (c) Establish policies for allowing the contracting of child care
15 services;
16     (d) Report to the governor with regard to duplication of effort
17 or lack of coordination among agencies;
18     (e) Review any pay and classification plans, and changes
19 thereunder, developed by any agency for their fiscal impact:
20 PROVIDED, That none of the provisions of this subsection shall affect
21 merit systems of personnel management now existing or hereafter
22 established by statute relating to the fixing of qualifications
23 requirements for recruitment, appointment, or promotion of employees
24 of any agency. The director shall advise and confer with agencies
25 including appropriate standing committees of the legislature as may
26 be designated by the speaker of the house and the president of the
27 senate regarding the fiscal impact of such plans and may amend or
28 alter the plans, except that for the following agencies no amendment
29 or alteration of the plans may be made without the approval of the
30 agency concerned: Agencies headed by elective officials;
31     (f) Fix the number and classes of positions or authorized
32 employee years of employment for each agency and during the fiscal
33 period amend the determinations previously fixed by the director
34 except that the director shall not be empowered to fix the number or
35 the classes for the following: Agencies headed by elective officials;
36     (g) Adopt rules to effectuate provisions contained in (a) through
37 (f) of this subsection.
38     (5) The treasurer shall:
39     (a) Receive, keep, and disburse all public funds of the state not
40 expressly required by law to be received, kept, and disbursed by some
  p. 21  SSB 6047
1 other persons: PROVIDED, That this subsection shall not apply to
2 those public funds of the institutions of higher learning which are
3 not subject to appropriation;
4     (b) Receive, disburse, or transfer public funds under the
5 treasurer's supervision or custody;
6     (c) Keep a correct and current account of all moneys received and
7 disbursed by the treasurer, classified by fund or account;
8     (d) Coordinate agencies' acceptance and use of credit cards and
9 other payment methods, if the agencies have received authorization
10 under RCW 43.41.180;
11     (e) Perform such other duties as may be required by law or by
12 regulations issued pursuant to this law.
13     It shall be unlawful for the treasurer to disburse public funds
14 in the treasury except upon forms or by alternative means duly
15 prescribed by the director of financial management. These forms or
16 alternative means shall provide for authentication and certification
17 by the agency head or the agency head's designee that the services
18 have been rendered or the materials have been furnished; or, in the
19 case of loans or grants, that the loans or grants are authorized by
20 law; or, in the case of payments for periodic maintenance services to
21 be performed on state owned equipment, that a written contract for
22 such periodic maintenance services is currently in effect; and the
23 treasurer shall not be liable under the treasurer's surety bond for
24 erroneous or improper payments so made. When services are lawfully
25 paid for in advance of full performance by any private individual or
26 business entity other than equipment maintenance providers or as
27 provided for by RCW 42.24.035, such individual or entity other than
28 central stores rendering such services shall make a cash deposit or
29 furnish surety bond coverage to the state as shall be fixed in an
30 amount by law, or if not fixed by law, then in such amounts as shall
31 be fixed by the director of the department of enterprise services but
32 in no case shall such required cash deposit or surety bond be less
33 than an amount which will fully indemnify the state against any and
34 all losses on account of breach of promise to fully perform such
35 services. No payments shall be made in advance for any equipment
36 maintenance services to be performed more than twelve months after
37 such payment except that institutions of higher education as defined
38 in RCW 28B.10.016 and Washington technology solutions created in RCW
39 43.105.006 may make payments in advance for equipment maintenance
40 services to be performed up to sixty months after such payment. Any
  p. 22  SSB 6047
1 such bond so furnished shall be conditioned that the person, firm or
2 corporation receiving the advance payment will apply it toward
3 performance of the contract. The responsibility for recovery of
4 erroneous or improper payments made under this section shall lie with
5 the agency head or the agency head's designee in accordance with
6 rules issued pursuant to this chapter. Nothing in this section shall
7 be construed to permit a public body to advance funds to a private
8 service provider pursuant to a grant or loan before services have
9 been rendered or material furnished.
10     (6) The state auditor shall:
11     (a) Report to the legislature the results of current post audits
12 that have been made of the financial transactions of each agency; to
13 this end the auditor may, in the auditor's discretion, examine the
14 books and accounts of any agency, official, or employee charged with
15 the receipt, custody, or safekeeping of public funds. Where feasible
16 in conducting examinations, the auditor shall utilize data and
17 findings from the internal control system prescribed by the office of
18 financial management. The current post audit of each agency may
19 include a section on recommendations to the legislature as provided
20 in (c) of this subsection.
21     (b) Give information to the legislature, whenever required, upon
22 any subject relating to the financial affairs of the state.
23     (c) Make the auditor's official report on or before the thirty-
24 first of December which precedes the meeting of the legislature. The
25 report shall be for the last complete fiscal period and shall include
26 determinations as to whether agencies, in making expenditures,
27 complied with the laws of this state. The state auditor is authorized
28 to   perform  or   participate   in  performance   verifications  and
29 performance audits as expressly authorized by the legislature in the
30 omnibus biennial appropriations acts or in the performance audit work
31 plan approved by the joint legislative audit and review committee.
32 The state auditor, upon completing an audit for legal and financial
33 compliance under chapter 43.09 RCW or a performance verification, may
34 report to the joint legislative audit and review committee or other
35 appropriate committees of the legislature, in a manner prescribed by
36 the joint legislative audit and review committee, on facts relating
37 to the management or performance of governmental programs where such
38 facts are discovered incidental to the legal and financial audit or
39 performance verification. The auditor may make such a report to a
40 legislative committee only if the auditor has determined that the
  p. 23  SSB 6047
1 agency has been given an opportunity and has failed to resolve the
2 management or performance issues raised by the auditor. If the
3 auditor makes a report to a legislative committee, the agency may
4 submit to the committee a response to the report. This subsection (6)
5 shall not be construed to authorize the auditor to allocate other
6 than de minimis resources to performance audits except as expressly
7 authorized in the appropriations acts or in the performance audit
8 work plan. The results of a performance audit conducted by the state
9 auditor that has been requested by the joint legislative audit and
10 review committee must only be transmitted to the joint legislative
11 audit and review committee.
12     (d) Be empowered to take exception to specific expenditures that
13 have been incurred by any agency or to take exception to other
14 practices related in any way to the agency's financial transactions
15 and to cause such exceptions to be made a matter of public record,
16 including disclosure to the agency concerned and to the director of
17 financial management. It shall be the duty of the director of
18 financial management to cause corrective action to be taken within
19 six months, such action to include, as appropriate, the withholding
20 of funds as provided in RCW 43.88.110. The director of financial
21 management shall annually report by December 31st the status of audit
22 resolution to the appropriate committees of the legislature, the
23 state auditor, and the attorney general. The director of financial
24 management shall include in the audit resolution report actions taken
25 as a result of an audit including, but not limited to, types of
26 personnel actions, costs and types of litigation, and value of
27 recouped goods or services.
28     (e) Promptly report any irregularities to the attorney general.
29     (f) Investigate improper governmental activity under chapter
30 42.40 RCW.
31     In addition to the authority given to the state auditor in this
32 subsection (6), the state auditor is authorized to conduct
33 performance audits identified in RCW 43.09.470. Nothing in this
34 subsection (6) shall limit, impede, or restrict the state auditor
35 from conducting performance audits identified in RCW 43.09.470.
36     (7) The joint legislative audit and review committee may:
37     (a) Make post audits of the financial transactions of any agency
38 and management surveys and program reviews as provided for in chapter
39 44.28 RCW as well as performance audits and program evaluations. To
  p. 24  SSB 6047
1 this end the joint committee may in its discretion examine the books,
2 accounts, and other records of any agency, official, or employee.
3     (b) Give information to the legislature or any legislative
4 committee whenever required upon any subject relating to the
5 performance and management of state agencies.
6     (c) Make a report to the legislature which shall include at least
7 the following:
8     (i) Determinations as to the extent to which agencies in making
9 expenditures have complied with the will of the legislature and in
10 this connection, may take exception to specific expenditures or
11 financial practices of any agencies; and
12     (ii) Such plans as it deems expedient for the support of the
13 state's credit, for lessening expenditures, for promoting frugality
14 and economy in agency affairs, and generally for an improved level of
15 fiscal management.
16     Sec. 10. RCW 43.31.574 and 2025 c 414 s 8045 are each amended to
17 read as follows:
18     For early learning facilities collocated with affordable or
19 supportive housing developments, the department may remit state
20 funding on a reimbursement basis for ((90)) up to 100 percent of
21 eligible project costs, regardless of the project's match amount,
22 once the nonstate share of project costs have been either expended or
23 firmly committed in an amount sufficient to complete the entire
24 project or a distinct phase of the project that is useable to the
25 public as an early learning facility. ((During the 2025-2027 fiscal
26 biennium, the department may remit state funding on a reimbursement
27 basis for 100 percent of eligible project costs.)) Eligible housing
28 developments are projects that have received public funding and have
29 secured enough funding to complete construction of the project that
30 will result in a certificate of occupancy to open the affordable
31 housing development, including the early learning facility.
32    NEW SECTION.   Sec. 11.   RCW 43.88D.010 (Capital budget projects—
33 Objective   analysis   and   scoring—Prioritized    lists—Additional
34 supporting information) and 2025 c 414 s 8033, 2023 c 474 s 8034,
35 2021 c 332 s 7034, 2019 c 413 s 7032, 2018 c 298 s 7013, 2017 c 52 s
36 15, 2012 c 229 s 821, 2010 c 245 s 9, & 2008 c 205 s 2 are each
37 repealed.
  p. 25  SSB 6047
1     Sec. 12. RCW 28B.77.070 and 2021 c 332 s 7044 are each amended
2 to read as follows:
3     (1) The council shall identify budget priorities and levels of
4 funding for higher education, including the two and four-year
5 institutions of higher education and state financial aid programs. It
6 is the intent of the legislature for the council to make budget
7 recommendations   for  allocations   for  major   policy  changes   in
8 accordance with priorities set forth in the ten-year plan, but the
9 legislature does not intend for the council to review and make
10 recommendations on individual institutional budgets. It is the intent
11 of the legislature that recommendations from the council prioritize
12 funding needs for the overall system of higher education in
13 accordance with priorities set forth in the ten-year plan. It is also
14 the intent of the legislature that the council's recommendations take
15 into consideration the total per-student funding at similar public
16 institutions of higher education in the global challenge states.
17     (2) By December of each odd-numbered year, the council shall
18 outline the council's fiscal priorities under the ten-year plan that
19 it must distribute to the institutions, the state board for community
20 and technical colleges, the office of financial management, and the
21 joint higher education committee.
22     (a) Capital budget outlines ((for the two-year institutions))
23 shall be submitted to the office of financial management by August
24 15th of each even-numbered year, and shall include the prioritized
25 ranking of the capital projects being requested, a description of
26 each capital project, and the amount and fund source being requested.
27     (b) ((Capital budget outlines for the four-year institutions must
28 be submitted to the office of financial management by August 15th of
29 each even-numbered year, and must include: The institutions' priority
30 ranking of the project; the capital budget category within which the
31 project will be submitted to the office of financial management in
32 accordance with RCW 43.88D.010; a description of each capital
33 project; and the amount and fund source being requested.
34     (c))) The office of financial management shall reference these
35 reporting requirements in its budget instructions.
36     (3) The council shall submit recommendations on the operating
37 budget priorities to support the ten-year plan to the office of
38 financial management by October 1st each year, and to the legislature
39 by January 1st each year.
  p. 26  SSB 6047
1     (4)(a) The office of financial management shall develop one
2 prioritized list of capital projects for the legislature to consider
3 that includes all of the projects requested by the four-year
4 institutions of higher education that were scored by the office of
5 financial management pursuant to chapter 43.88D RCW, including
6 projects that were previously scored but not funded. The prioritized
7 list of capital projects shall be based on the following priorities
8 in the following order:
9     (i) Office of financial management scores pursuant to chapter
10 43.88D RCW;
11     (ii) Preserving assets;
12     (iii) Degree production; and
13     (iv) Maximizing efficient use of instructional space.
14     (b) The office of financial management shall include all of the
15 capital projects requested by the four-year institutions of higher
16 education, except for the minor works projects, in the prioritized
17 list of capital projects provided to the legislature.
18     (c) The form of the prioritized list for capital projects
19 requested by the four-year institutions of higher education shall be
20 provided as one list, ranked in priority order with the highest
21 priority project ranked number "1" through the lowest priority
22 project numbered last. The ranking for the prioritized list of
23 capital projects may not:
24     (i) Include subpriorities;
25     (ii) Be organized by category;
26     (iii) Assume any state bond or building account biennial funding
27 level to prioritize the list; or
28     (iv) Assume any specific share of projects by institution in the
29 priority list.
30     (5) Institutions and the state board for community and technical
31 colleges shall submit any supplemental capital budget requests and
32 revisions to the office of financial management by November 1st and
33 to the legislature by January 1st.
34     (6) For the 2019-2021 fiscal biennium and the 2021-2023 fiscal
35 biennium, pursuant to subsection (4) of this section, the office of
36 financial management may, but is not obligated to, develop one
37 prioritized list of capital projects for the legislature to consider
38 that includes all of the projects requested by the four-year
39 institutions of higher education that were scored by the office of
  p. 27  SSB 6047
1 financial management pursuant to chapter 43.88D        RCW,   including
2 projects that were previously scored but not funded.
  --- END ---
  p. 28  SSB 6047