Second Annual Report - Council of Presidents

Washington State

www.councilofpresidents.org

A Report to the Governor and Legislature

in Accordance with HB 1795The Higher Education Opportunity Act

Operational

Efficiency and

Effectiveness

in

Public Four-Year

Higher Education

in Washington

central Washington

university

eastern washington

university

the evergreen state

college

University of

Washington

washington state

university

western washington

university

Chapter 10, Laws of 2011

November 15, 2013

2013

Second Annual Report

Operational Efficiency and Effectiveness in Washington Public Four-Year Higher Education

The Council of Presidents 2 November 2013

The Council of Presidents (COP) is a voluntary association of Washington’s six public baccalaureate degree granting college and universities. Located in Olympia, Washington, COP strives to be a common voice for the public baccalaureate sector and the most respected and trusted resource for decision makers on issues affecting public higher education. COP serves as the coordinating role for a number of initiatives and activities common to the public baccalaureate institutions, fostering coordination and collaboration among the public baccalaure-ates as well as with other educational partners, both in Washington and nationally.

This report is also available on line at http://www.councilofpresidents.org

The Council of Presidents410 11th Avenue SE; Suite 101Olympia, WA 98501



Table of ContentsIntroduction ..........................................................................................................................................5

Central Washington University - Illustrative Examples ..................................................................7

Eastern Washington University - Illustrative Examples ..................................................................9

The Evergreen State College - Illustrative Examples ......................................................................11

University of Washington - Illustrative Examples ..........................................................................13

Washington State University - Illustrative Examples .....................................................................19

Western Washington University - Illustrative Examples ...............................................................23

Orbis Cascade Alliance ......................................................................................................................25

Appendix A - HB 1795 Work Group Participants ..........................................................................27

Appendix B - HB 1736 Work Group Participants ..........................................................................28

Appendix C - Comparison of Building & Vehicle Reporting Requirements to Various State Agencies ..................................................................................................................29

Appendix D - State Authorization Reciprocity Agreement .........................................................34

Appendix E - HB 1795 .......................................................................................................................35



“The campaign for efficiency in our public colleges and universities must be ongoing. The institutions and the legislature are partners in this quest for cost-effectiveness, flexibility, and regulatory relief. It’s about making higher education more affordable and accessible for Washingtonians.”

Representative Hans Zeiger 25th District Prime Sponsor: HB 2259 (2012), HB 1736 (2013)



IntroductionDuring the 2011 legislative session, the Legislature passed Engrossed Second Substitute House Bill 1795–also known as “The Higher Education Opportunity Act.” Among its many provisions, House Bill (HB) 1795 required the following:

“The office of financial management shall work with the appropriate state agencies as determined by the office of financial management, and the council of presidents to convene an interagency work group to develop and implement improved administration and management practices that enhance the efficiency and effectiveness of operations throughout higher education campuses . . . The work group shall report to the legislature by November 15, 2012, and November 15, 2013, on its progress, anticipated outcomes, policy recommendations, and performance measures for demonstrating achievement of improved efficiencies and effectiveness.” (Sec. 27)

Soon thereafter, a work group comprised of representatives from the public institutions, the Office of Financial Management (OFM) and the Council of Presidents (COP) was established to commence higher education’s efficiency efforts (see Appendix A for a detailed list of work group members). Since its inception, the group has been instrumental in identifying areas where efficiencies could be gained in administrative and operational functions.

This collaborative effort led to the development of a package of “regulatory relief ” bills from COP for the 2012 legislative session. With strong support from colleagues at the public community and technical colleges and other higher education partners, the workgroup advanced the following bills:

® HB 2259–Eliminated a duplicative campus safety reporting requirement

® HB 2585–Granted flexibility in the areas of travel, procurement, and payroll

® HB 2735–Increased minor works and pre-design project thresholds

HB 2259 and HB 2585 passed the Legislature with overwhelming bipartisan support and were signed into law by Governor Christine Gregoire, while HB 2735 did not pass. Those bills passed resulted in savings for the state, continuing the institutions’ efficient operations and good stewardship of public resources. These and other institutional initiatives are summarized in COP’s 2012 operational efficiency report available at: http://www.cop.wsu.edu/docs/r_d_docs/COP_EFF_REPORT_11_12.pdf

2013 Legislative SessionAfter the 2012 legislative session, the HB 1795 workgroup oversaw the implementation of the two efficiency bills, HB 2259 and HB 2585, and an additional bill, HB 2452. Another significant contributor to the institutions’ efforts to streamline business practices, HB 2452 centralized the authority and responsibility for the develop-ment, process, and oversight of state procurement of goods and services.

As part of a long-standing process of continuous improvement among the public baccalaureate institutions, the work group also began to identify additional efficiency opportunities beyond those already undertaken. Those efforts led to a second round of regulatory relief legislation in 2013:

http://www.cop.wsu.edu/docs/r_d_docs/COP_EFF_REPORT_11_12.pdf



® HB 1736–Permitted the use of digital signatures for any human resource, benefits, or payroll processes that require a signature. Also permitted the Washington Student Achievement Council (WSAC) to: 1) negotiate and enter into interstate reciprocity agreements with other state or multistate entities regarding the operations of degree-granting institutions in the state; and 2) enter into agreements with degree-granting institutions based in Washington that are otherwise exempt from adhering to the minimum standards for degree-granting institutions set by the agency (see Appendix D for a summary of this provision)

® HB 1769–Increased minor works and pre-design project thresholds

HB 1736 also asked OFM to work with the higher education institutions and other state agencies to review and streamline a myriad of building and vehicle reporting requirements. To that effect, the public baccalaureates estab-lished a work group–including representatives from each institution and COP–to work with OFM on this initiative (A matrix of those requirements and a list HB 1736 work group members are available in Appendix B). As with prior efficiency legislation, HB 1736 passed the Legislature with overwhelming bipartisan support and was signed by Governor Jay Inslee. HB 1769 passed the House by a vote of 97-1, but not the Senate.

Next Steps

The HB 1795 work group continued meeting upon conclusion of the 2013 legislative session. It is likely that a third package of regulatory relief legislation will be introduced in 2014. Given the breadth and depth of policy in HB 1795, some statutory changes may be required to best align with succeeding efforts and initiatives. Other items may involve changes to employee payroll and benefits at public baccalaureates.

ConclusionRegulatory relief provides an opportunity to continually improve operational efforts in nearly every functional area of each public baccalaureate institution in Washington, including information technology, curriculum management, student services, finance, human resources, facility maintenance, utilities, and others. Many of those efforts–some undertaken independent of legislative action or directive–are highlighted throughout this report as examples of longer-term efficiency efforts or in responses to recent reductions in state funding.

While the Legislature prioritized public higher education in the 2013-15 operating budget (3ESSB 5034), it is worth noting that the operating budget assumes some additional budget reductions:

® Section 715 directs OFM to reduce General Fund-State allotments for information technology (IT) expenditures by $5 million for the 2013-15 biennium to “drive efficiency in state procurement, maintenance, and operations of information technology.” This resulted in a GF-S reduction of $914,000 to the six public baccalaureates.

® Section 714 directs OFM to develop and implement a lean practitioner fellowship program to train state agency staff to assist in statewide efforts that streamline and improve processes across agencies. This resulted in a GF-S reduction of $137,848 to the six public baccalaureates.

® Section 714 directs OFM to reduce General-Fund State for affected state agencies by $30 million for fiscal year 2015 to reflect savings resulting from application of lean management and performance management strategies. The impacts to higher education are unknown at this time.

Whether or not the HB 1795 work group remains in statute, COP and the public colleges and universities will continue to collaborate to ameliorate business practices and drive student success while maintaining quality.



Illustrative Efficiency Example A: Central Washington University

Business Services & Contracts

Student Financial Aid Enhanced by Student Payment Plan

® The “Student Payment Plan” was implemented for the fall 2013 quarter to offer enrolled students the option to pay their quarterly balance in three monthly installments. The intent of the Payment Plan is to lessen the financial burden on students and their families by offering the option to pay over time. Students who remain current on installment payments will not be assessed late fees or interest and will be allowed to register for future quarters. As a result of the implementation, CWU projects a decrease in outstanding and uncollectible accounts receivable.

E-Travel

® The successful implementation of on-line travel at CWU produced immediate efficiency and cost savings as a result of processing electronic payments for travel reimbursements and travel advances as opposed to issuing paper checks and is estimated at $25 per reimbursement. Additionally, CWU has experienced a reduction of 20% in the number of paper checks processed, archiving and storage space has been reduced by 50%.

Public Information Requests

® CWU has collaborated with the Secretary of State’s Office to reduce the number of Unique Disposition Authority (DAN) numbers assigned to our agency from 1587 active record retention schedules and reduced the unique schedules to 200. The series are now listed by function, rather than department, simplifying the record management process and reducing duplicate record series and inconsistent retentions. This reduction will decrease required management and risk for both CWU and the Secretary of State’s Office, update Unique numbers and assure consistency across the State of Washington to reduce risk for the State of Washington and CWU. Additionally, we are working with the Secretary of State’s Office and other high education institutions in the State to establish a Higher Education General Schedule to allow higher education institutions in the State to use a schedule that identifies commonly used records.

® Per recommendation of the office of the Attorney General, CWU implemented usage of a redaction key which allows insertion of a bracketed number for each redaction and the key provides the ability to enter a brief description to the requester as required by law. The redaction key reduces the amount of time to complete a redaction log for each public records request.



Contracts and Procurement Efficiencies

® Implementation of the E-Procurement Online requisition system resulted in a more efficient and streamlined purchasing and approval process which has allowed buyers to spend more time on strategic procurement. Utilization of the PeopleSoft FMS contract module allows us to better track dollars spent by contract to meet state mandated reporting and transparency requirements.

® Modifications implemented by HB 2585 which included increasing the bid limit from $5000 to $10,000 generated processing efficiencies which allows buyers to focus on large dollar strategic procurement.

® Procurement Card limit increase from $2000 to $5000 – reduces the number of small dollar PO’s, vouchers and checks resulting in reduced per transaction processing costs.

Human Resources ® CWU only accepts on-line applications for all levels of employment, including student employment.

This has eliminated thousands of pieces of paper being generated and having to be stored, as well as simplifying life for applicants and staff alike. I-9 forms are also being completed on-line by new hires, cutting processing time down to a mere 20 seconds per person necessary to verify documentation.

® CWU has implemented on-line Personnel Action Forms, eliminating creation of multi-part paper forms having to be filled out, routed for multiple signatures, and stored in multiple locations. Routing is handled through on-line work flow processes. Through this same on-line system, Managers can make position changes, reassign individuals, process salary changes, or even delegate responsibility to process these staff changes.

® CWU has established on-line Employee Self Service where employees can change Direct Deposit information and W4 information without generating paper or involving HR or Payroll staff. Employees can also see their “pay stubs” eliminating the need for Payroll to print and send out hundreds of paper copies.

® Beginning in January, CWU will start implementation of an on-line Time & Labor system which, on an annual basis, will eliminate thousands of paper time sheets and move verification signatures into an automated work flow process. This will save storage costs, processing time, reduce errors due to manual calculations, and provide closer to “real time” reporting capability.

® CWU is using direct deposit for employee paychecks and travel payments, almost eliminating the need for paper checks. This saves the time, effort, and expense of printing and distributing paper copies.



Illustrative Efficiency Example B: Eastern Washington University

Use of Technology

® Implementation of Software Products

G Innosoft Fusion—Recreational Facilities and Programs sofware. Software provides real time transactional data for operations and customers, improves efficiency for membership sign ups, provides real time inventory system to reduce loss, and improves security and safety at the facility.

G EWU Bookstore textbook inventory system moved to a hosted solution, increase in IT security, reduction in staff time (50 hours per year) and maintenance costs ($5,000)

G Consolidation of two textbook rental software systems, reduced over processing time for over 600 transactions from 6 minutes to 1 minute for students.

G EWU Enrollment Services implemented customer relationship management solution software enabling EWU to use advanced personalization technology to target and reach key student audiences during the recruitment period. Results in reduced staff time.

G EWU Dining Services implemented a time management system. Decrease in staff labor hours and redundant processes.

G Implementation of new ID Card system resulted in consolidation of software products. New technology provides wider range of reporting and faster services which reduced staff time for redundant processes and cost savings. Card processing time has been reduced from 2 minutes per card to 1 minute per card.

G EWU Dining Services upgraded the inventory control management software program from a PC based version to a web hosted system. The new system allows for multiple users, hand held scanners for accuracy, electronic transfer of data, automatic pricing updates and nutritional data. Dining Services estimates a 20% increase in our efficiencies with this upgrade in the area of increased information and reduction in staff time.

G Installed new technology redundancy equipment for PA and Scoreboards. Reduced down time and labor hours due to equipment failures.



Institutional Equipment Upgrades ® Auditorium equipment upgrades were done to improve operational efficiencies, new equipment

included: new spotlights which are brighter and use less energy which saves the university money through less power consumption. Sound and audio upgrades utilizing current technology which reduced staff training time and improved event efficiencies.

® Purchase and installation of digital locks on day use lockers, improves safety features and reduces labor hours associated with investigations and incidents.

® Upgrade of EWU Parking Services hand held citation devices allows use of improved technology including use of photos and real time connection with the Parking Office. Resulted in improved efficiency for parking enforcement staff and accuracy of citations.

® Upgrade from halogen to florescent lighting in student gyms reduced cost and increase in energy savings.

Business Operation Efficiencies ® Implementation of electronic submission of internal billing charges for events

® Implementation of on line facility reservation requests

® Implementation of electronic work order submissions for the University Apartments

® Increased use of the Procurement Card

® Implementation of electronic records at the recreation facility including ice resurfacing, maintenance, patron tracking and staff scheduling.

® Review of EWU Bookstore cash management processes resulted in a reduction in part time labor hours resulting in a $9,000 annual savings

® Use of electronic storage options for EWU Parking Services appeals, reduces staff time and physical storage.

® Increase usage of mobile technology for staff in trades areas results in improved quicker response times for facility and event issues.

Other Efficiencies ® EWU is now a member of Collaborative Institutional Training Initiative (CITI) making state of the art

on line training available for major research compliance areas of Animal Care and Use, Human Subjects in Research, Privacy/Protected Health Information and Responsible Conduct of Research.

® EWU Custodial Services piloting a new cleaning product which uses ozonized water. Reduced environmental impact and cost savings associated with cleaning products.

Update from 2012 report ® Improved Pricing from Food Distributor: EWU’s collaboration with WSU to obtain better food pricing

from contracted vendors resulted in a savings of over $84,000 in cost of goods.



Illustrative Efficiency Example C: The Evergreen State College

®

®

®

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® Online Records System: Evergreen’s unique student evaluation process has historically been labor intensive and has created large volumes of paper artifacts. Because the evaluation process is iterative between faculty and students, exchanging and completing these documents has been time consuming. Technology staff have recently completed the development and implementation of a new electronic Online Record System that aids students and faculty with the completion of evaluations reducing the time per academic quarter required of faculty and students for the completion and storage of these important academic records.

® Electronic Equipment Monitoring: Evergreen technology staff have networked classroom audio visual equipment improving the monitoring of this equipment. Continuous monitoring allows for better scheduling of maintenance of the equipment improving its performance and reducing the risk of equipment failures. Failures of this equipment during the academic school year can cause significant disruption to classes.

® Ticket Tracking System: To reduce duplication of work, Evergreen has implemented a centralized ticket tracking software system. This system is shared by many technology teams that support technology issues and solutions. The ticket tracking system creates efficiencies by speeding the resolution of technology issues through better collaboration and communication, saving numerous hours per month of technology staff time as well as saving time for faculty and staff.

® Network Equipment Consolidation: The Evergreen campus has consolidated networking equipment on a single vendor and a limited range of hardware to reduce the labor associated with upkeep. We chose a vendor and products that have lifetime warranties to reduce spending on replacement parts and support contracts. This strategy is saving both technical staff time and reducing equipment maintenance costs.

® Paperless Hourly Payroll: Because of implementing Electronic Personnel Action Forms (EPAF), the hourly payroll is now completely paperless. Hiring document, W4, and direct deposit are now done online. This saves paper, file folders and staff filing time for three offices for a population of over 1500 employees over the fiscal year. It is also an efficiency that approvals happen electronically instead of paper being sent from office to office for signatures. Estimated savings time 1-2 hours per EPAF. There are over 1500 EPAFs in a fiscal year.

® Digitial 1098-T tax forms: We implemented a process to identify students who elected to have their 1098-T electronically available to them instead of printed and mailed. 2,983 or 43% of students elected to have their 1098-T available electronically. Total savings: cost of printing and mailing one 1098-T form averages $1.55 resulting in cost savings of $4,623.65 and increasing student satisfaction.

® Consolidate Cash Payment Activities: Using Cashnet, the Student Financial Services office is able to set up very quickly and efficiently upcoming conferences organized by different departments on campus.



The number of departments using our payment site has increased by 50%. Additionally, we are setting up more and more conferences per department. This is a great customer service, and has also saved our office (Cashier’s office) labor time as participants now pay on line (versus thru mail and/or counter). Payments are automatically posted to the department’s budget instead of being manually posted. This has saved more than 5% of processing time enabling the cashier office to maintain 1.5 FTE instated of increasing payroll to meet work needs.

® Utilize Consolidated Mail Services: Last fiscal year the mail room saved $5,642.02 in postage costs by using Consolidated Mail Services process the College’s outbound mail. We have converted the out bound FedEx and UPS from an old manual system to an automated process. Both of these improvements allowed us to reduce a position from 1.0 FTE to .75 FTE.

® Textbook buying: The bookstore set up a system to extract course/program information from the course catalog into an excel spreadsheet instead of manually entering the information like in previous years. This information is needed to order the correct books and number of books for each class. The new system saved over 110 hours of bookstore staff time last year. The time savings enabled the book buyer to establish a book rental program for students.

® Graduation Regalia: Instead of pre-ordering caps and gowns from a vendor which required students to place orders by early May, a deadline many students missed, the bookstore used historical data to purchase caps and gowns and made them available from the start of spring quarter through graduation day. This allowed the students, especially those who missed the early May deadline, more time to place orders and get correctly fitting gowns. This change increased bookstore profits by more than $6,000, freed up staff hours and was received very positively by the students.

® Textbook rental program: The Bookstore implemented an in-house textbook rental program instead of using a third party website. The third party vendor was not optimal because students had to wait for books to be sent from the vendor, sometimes not receiving their books until after classes started. Through the in-house rental program 1206 books were rented by over 550 students resulting in happier students and increased revenue to the bookstore of more than $27,000. The in-house rental program received positive feedback from both students and faculty.

® Resource Conservation Management Program: Since Evergreen has implemented many energy conservation projects over the years, finding projects that have a big impact on utility consumption has become more challenging. Our energy monitoring has had to become more detail oriented – analyzing the programming and scheduling of the HVAC equipment and monitoring and education actions of building users. At the end of FY 13, we found that our gas usage had increased by 7% and electricity usage by 3% over the year prior. Some of the increased usage was attributed to bringing the College Activities Building back to full operation. Since August we have made modifications to our HVAC programming to reduce energy utilization and have been able to bring down our year to date usage for gas and electricity by 7% from where we at this time last year.

® Facilities Work Order System: We implemented a new automated work order system that replaced an outdated access database system. This has improved communications with the campus community 100% and the ability to pull reports by 85%.



Illustrative Efficiency Example D: University of Washington

Payroll ® With the implementation of HB 2585, the University of Washington (UW) experienced a 61% reduction

in paper checks since the bill passed. Over 97% of UW employees are enrolled in direct deposit with less than 10 employees enrolled in pay card. Cost to produce and distribute paper checks is $3.61 per check (labor costs, postage, and check stock). The UW estimates a savings of $190,608 with the implementation of HB 2585.

Travel ® Using the most effective means for booking both individual and group travel has saved significant

staff effort across the University’s three campuses and other locations. There is anecdotal evidence of price differences between state contract airfares and what travelers can arrange using online search and booking tools. And paying less for airfare means those travelers and their departments can use scarce resources for other academic, instructional, research, clinical and program operations. Reduced staff effort has been seen by almost everyone who travels, much more in departments with significant research funding, which compromises approximately 60% of UW travel. Department staff have also realized productivity gains as they are no longer spending time addressing questions related to the prior restrictions on where airfare could be purchased; even 15 minutes saved per traveler/trip is more than 400 hours per month that is now spent on other activities to support faculty and students. For individual travelers, institution-wide savings of up to 300 hours per month can now be directed to more mission-critical efforts. These savings in time are spread throughout the institution, representing a more productive use of our most valuable resource—our faculty and staff—who can use that time saved for better serving students and other users of University programs.

Procurement Services ® Higher bid limits enabled more competitive solicitations to be done without formal, advertised

invitations to bid. This resulted in some time savings since an informal quotation takes significantly less staff time than a formal bid; this time savings has been used to improve customer service and to support development of additional consolidated long term sourcing agreements. As important as making better use of staff time is that completing orders for informal competition also results in faster delivery of goods and services needed for instruction, research, healthcare and other campus operations.

® Maintenance contracts paid up to five years have resulted in discounts in service fees from a number of suppliers. The institution’s central mainframe computer maintenance agreement pricing was reduced by 28% as a result of making advance payment. Other types of equipment across campus, often in research and clinical programs, have benefited from lower maintenance prices ranging from 2% to 10% which across the entire University can save thousand dollars a month, enabling departments to use their several sources of funding most effectively.



® eProcuement efficiency gains continue to reduce transaction processing time and costs, and enable savings through greater use of leveraged sourcing agreements.

® Based upon a campus-wide benchmarking study performed in 2011, UW employees in campus units spend more time on procurement than peer institutions that use more modern and centralized procurement systems. Accordingly, all UW purchases are migrating into more efficient systems (eProcurement) to help ease this burden. The functionality of eProcurement has been expanded to facilitate the migration.

® The eProcurement utilization rate increased from 57% at the time of the Hackett study in 2011 to 80% in FY13. With the increase in the eProcurement utilization rate, we estimate that campus unit procurement cost per dollar spent decreased from 2.99% to 1.69%. Procurement Services campus cost target is 0.50%.

Copy Services ® Managed Print Services (MPS), a lean collaboration between UW Procurement Services and Creative

Communications is lowering the total cost of ownership on office copy and print equipment. The UW spent $12 million last year on direct office printing output costs (hardware purchases, leases, cost per page charges, toner or print cartridges and maintenance). The new MPS program offers cost-per-impression of $.0199 (black and white) including equipment, supplies, and services over the term of the contract. Current savings average over 30% in departments that have placed MPS equipment. Once fully adopted on campus, the savings will be over $3.5 million dollars annually. MPS will also reduce the environmental impact - there are dozens of unique manufacturers, hundreds of different models, and in excess of 1000 different supplies for output equipment on campus; each which causes a negative impact on the environment (landfill, waste, etc.). MPS will also reduce energy consumption through monitoring and a reduction in the number of output devices, and by replacing high energy usage equipment with energy efficient devices. MPS is already streamlining operations, standardizing equipment and increasing efficiency.

2011

2013

University of Washington University of Washington Best in Class-Peer Group

Campus Units

Purchasing Technology

Central Procurement

1.69%

2.99%

0.15% 0.15% 0.16%

0.45%Campus Cost Goal: 50%

Components of Procurement CostsAs a Percentage of Spend



Grant/Contract Accounting ® For Fiscal Year 2013 the University received $1.23 billion in research funding, a 255% growth in research

volume since 1990, while the number of staff increased only 20% during the same time period. The changes Grant and Contract Accounting (GCA) has made since implementing Lean enabled service to meet the growing demands of the research community without degradation in quality, and with marked increase in customer service. Moreover, the changes have also achieved significant reductions in processing backlogs. For example, a backlog of 1,129 account set-ups is now at zero; reporting backlogs have been reduced by 86%; billing backlogs down by over 60%; and the backlog of account closings is down by 92%. In addition, by increasing throughput and eliminating bottlenecks and roadblocks, GCA was able to handle more active accounts than the prior year without a proportional increase in staff.

Facilities Services ® Expanded recyclables program in the UW Medical Center (UWMC) operating room unit. In December

2012, UW Recycling & Solid Waste and UWMC Environmental Services worked together with a group of dedicated UWMC operating room nursing staff to develop a new program to recycle nearly 95% of the packaging material generated during each surgical case. This effort resulted in diversion of nearly 1 ton of recyclable material from the landfill in its first month of implementation.

® SmartGrid. Facilities Services, in collaboration with the College of Engineering, College of the Environment, and Housing and Food Services is a key participant in the Pacific NW Regional Smart Grid Demonstration Project. As part of the project, more than 600 smart meters have been installed that measure, monitor and report electricity usage in over 200 campus buildings. Investments have been made in meters, facility network, and ability to monitor in realtime all building or wing electrical usage. Reductions are already being realized in electricity usage in 22 buildings from adjusting the night setbacks, saving approximately 2 million KwH in two years. This usage data is being used to optimize energy use and drive down utility costs in other buildings, as well as providing data for future research.

® Energy Conservation. In FY 12 and 13, Facilities Services was awarded grant funding of $5.1 million from US Department of Energy and $2.2 million from State of Washington Department of Commerce for four energy conservation projects. These projects will result in a consumption avoidance of 40 million KBTU in energy annually. This is enough energy to power and heat more than 638 average Seattle homes each year.

® Reducing Regional Emissions. Transportation Services has secured grant funds from the US Department of Transportation for more than half of the required funding for improvements to the Burke-Gilman Trail. The goal is to reduce regional vehicle miles traveled by 3.2 million miles per year and greenhouse gas emissions by a total of 23,813 metric tons by 2033.

Facilities Services Customer Service Improvements.Two projects have resulted in benefits for campus customers:

® Materials Management. By streamlining the workflow for purchase of materials, the work of this team reduced logistic costs, enabling a 5.5% reduction in the procurement surcharge for rechargeable maintenance and operations work to campus customers.

® Work Order Billing. Process improvements were implemented in Facilities Services to improve the automated capturing of non-labor expenditures. This improvement freed up about 111 hours per year of staff time for other work and increased confidence in the accuracy and completeness of data for maintenance, operations and alterations costs.



Streamline Workers Return-to Work-Processes ® Research shows that injured workers who return to the workplace quickly have better recoveries

and reduce the impact to employers of lost productivity and insurance costs. A team of staff from across the UW has improved the process for returning injured UW employees to work by enhancing communication and facilitating more light-duty positions for injured employees. Using a Lean process, the team developed a streamlined, easy-to-follow process for those involved in the return-to-work process with a website “portal” containing links to documents, process guides, and reference material. The team partnered with the Washington State Department of Labor and Industries (L&I) on their new “Stay at Work Incentive Program” to collect over $380,000 to date in incentive reimbursements for the University in wages, tools, and equipment for providing light-duty job placements.

® The improved processes, increased number of light-duty job placements, and new incentives are creating a culture of “light duty” awareness at UW. The result is decreases in the number of time-loss days and dollars paid on workers’ compensation claims (a 3.5% reduction in time-loss days and a 7.3% reduction in time-loss dollars in 2012). Workers’ compensation insurance costs are based largely on an employer’s claims experience. Over time, efforts to keep UW workers on the job are expected to continue to drive down the UW’s claims experience and, as a result, insurance costs. The UW experience rating for 2012 was below the 1.0 base level at .92 and dropped to .89 for 2013, resulting in a discount in its rates

Financial Accounting Annual Report ® UW Accounting personnel, in partnership with our external auditors, used LEAN to map out the annual

financial statement process and related audit steps and eliminate inefficiencies. As a result, the report and audit completion date has been improved by 5 weeks over a two year period, without increasing staff or hours. Not only has this allowed us to provide information more timely to our stakeholders such as Moody’s and S&P, but also allowed us to meet OFM’s more aggressive timeline for the audit of the overall State CAFR.

UW Information TechnlologyImproving the student experience

® Canvas, a next-generation learning management system, launched on all three UW campuses in autumn 2012, offering a rich array of integrated features for online teaching, learning and collaboration. Canvas makes it easy to put course materials and activities online, administer quizzes, efficiently grade student work, and communicate with students, providing immediate, personal feedback. In support of UW’s Teaching & Learning in the 21st Century Initiative, Canvas has been adopted as the UW’s unified learning management system, enabling innovation in teaching and providing a consistent experience for faculty and students. Adoption of Canvas has been high, growing at about 20 percent each quarter. The UW also sponsored Canvas as a service for the national 221-member Internet2 higher education community.

® SpaceScout, a Web and mobile app, helps UW students find the perfect study spot. SpaceScout was recognized with a Campus Technology 2013 Innovators Award, an international competition judged by higher education technology leaders. Launched in August 2012, SpaceScout helps students quickly and efficiently locate study areas that have the technology and other tools they need for individual and

http://www.washington.edu/2y2d/teaching-learning/



group use. Created in response to student feedback, it can be accessed from desktops, laptops and mobile devices. SpaceScout currently includes 270 spots at UW Seattle and UW Tacoma, with UW Bothell spaces coming soon.

® The MyPlan online academic planning tool, launched January 2013, enables UW students to easily create and manage multi-year academic plans, in consultation with their advisers, to meet their academic goals. Students can run a degree audit of their entire plan, bookmark courses for future reference and view adviser feedback. Adoption of MyPlan is rising, with more than 12,000 students creating an academic plan. MyPlan also provides valuable data to inform future planning to meet student demand. Funded in part by the Student Technology Fee, MyPlan was created as part of the UW’s participation in the Kuali Student consortium of peer universities developing a next-generation student information system. A recent $1 million grant to UW-IT from the Bill & Melinda Gates Foundation will extend the use of MyPlan. When the project is complete, community and technical college students will be able to use existing features in MyPlan, along with a suite of new features, designed to make it easier for them to plan for a UW degree and transfer from a community and technical college.

® The Tegrity Web-based lecture and presentation recording service enables faculty on all three UW campuses to “flip the classroom”—recording lectures so students can view them any time through a browser or on a mobile phone, with class time reserved for interactive learning and collaboration. Because presentations are available online, Tegrity further supports teaching and learning by minimizing time lost due to illness or campus closures. Tegrity also can be used for non-academic purposes such as creating training videos.

® Notify.UW is a new service that alerts students in real time if a course of interest opens or closes, enabling them to more quickly adjust their courses and register for high-demand classes. Developed in partnership with the Office of the Registrar, and launched in 2013, Notify.UW is a free subscription service that provides up-to-the-minute text and email alerts. Integrated with the Time Schedule and MyUW, the tool also will collect information that can be used to adjust course offerings to meet student demand. Notify.UW addresses needs that were previously being filled by a third-party solution that strained UW’s central systems and charged a fee to students.

Supporting operational improvements and efficiencies

® UW Profiles, a new Web-based set of institutional dashboards, provides a dynamic way for UW decision makers to easily access, explore and understand a common, core set of metrics from the Enterprise Data Warehouse (EDW), UW’s single source of central administrative data. It uses Tableau data visualization software to aggregate data at any level—University, campus, school, college or department. The first release in fall 2013 provides academic data such as major enrollments, degrees awarded, student credit hours and student progress to degree. UW Profiles places the University at the forefront of higher education nationally in using data visualization to provide basic business intelligence and analytics.

® Improved power efficiencies and consolidation of UW’s data centers from five to three resulted in lower rates and significant operating costs savings. The UW Tower Data Center was able to reduce its data storage pricing and attract new co-location customers, and it received an EPA ENERGY STAR ranking of 95 out of 100.



Illustrative Efficiency Example E: Washington State University

Operational Efficiencies Gained with AiM – Facilities Services ® WSU has been using AiM, an Integrated Work Management System (IWMS) in Facilities Services for

nearly 8 years. While much efficiency has been gained by centralizing the management and distribution of critical workflow and associated data, there were several vital business processes that were not included within that framework. To address these shortcomings, we recently invested in several new modules to the IWMS to further centralize information management in the enterprise. A foundational investment was made in the space module to centralize all space inventory data for the university that includes all WSU-owned properties and spaces across the state. In addition, all floor plans for these spaces were converted into a new digital format that integrates directly into the AiM enterprise and allows university personnel to access and view their assigned spaces directly. This new module also provides an online facility for WSU to begin conducting their annual space surveys electronically and directly with the occupants. Collectively, these new functions provide real-time visibility and access to space data that will inform space-related decisions and improve operational efficiency for space managers and consumers dramatically.

® A second investment within AiM was made for the Energy Sustainability Platform (ESP). The ESP is part of the aforementioned IWMS and therefore leverages all of the existing data and functions. The ESP module takes our existing building automation energy systems data and stores them for an indefinite period within a rich framework for performance metrics and analysis. This platform also connects to utility meters across campus and allows for remote collection of usage data thereby removing the need to manually collect data from more than 200 meters as part of the monthly utility billing process. As the system becomes more integrated into our processes, additional efficiencies will be gained when the ESP identifies assets within utility systems that need attention and automatically engages maintenance personnel for response and resolution. Data integration with space floor plans and equipment assets such as air-handlers, utility meters, chilled water systems, etc. allow for a complete picture of the state of our facilities across the university and will serve to provide immeasurable value to its constituents.

College of Agricultural, Human, and Natural Resource Sciences (CAHNRS) Shared Services

® Consecutive year budget reductions within the College of Agricultural, Human, and Natural Resource Sciences left many departments with insufficient staff to provide adequate support in a number of areas. In 2011, the College began the transition to three business centers, a graduate academic center, and a central advising unit for undergraduate students. Centers were placed in strategic locations to provide local support for faculty and students. Business center services include processing financial transactions, coordinating grant support for both pre and post award functions, and the management of



grant accounts. By facilitating a customer-centered approach and streamlining processes, staff members have been able to develop expertise collectively while providing continuity of support. Compliance has improved by adopting a team approach in monitoring and managing accounts. Of special note is the increase in grant proposal submissions and subsequent awards due to unrestricted access to staff support.

® Other colleges and are also pursuing similar models in an effort to maximize resources while improving customer service to faculty and students.

Electronic Form Efficiencies ® WSU’s first full year using an electronic travel expense voucher (eTEV) to process travel reimbursements

has been very successful. Use of the eTEV is not mandatory but already we are receiving more than 57% of our reimbursement requests electronically. Use of the eTEV has substantially reduced the processing time required for these reimbursements. On average, the turnaround time for processing happens four days more quickly. 40% of eTEVs are processed in three days or less.

® Following the success of the electronic travel expense voucher, we are currently developing other electronic forms for deployment this year, and hope to be able to report back on efficiencies gained in the areas of sponsored projects and shipping next year.

Purchasing Services: Efficiencies gained through the passage of HB 2585 ® The passage of HB 2585 has provided the Purchasing Office staff with some much needed relief from

processing low value and low risk procurement activities as a result of the increase in the direct buy limit from $5,000 to $10,000 and the increase in the sealed bid limit from $50,000 to $100,000.

® In this first full year under the new thresholds, we realized a reduction in processing of approximately 700 orders in the range of $5,000 to $10,000 by the Purchasing Office. These are now being purchased directly by our departments. Based on an average all inclusive time spent on these orders of 3 hours, the WSU Purchasing Office has saved approximately 2,100 hours.

® In the past year, WSU Purchasing Services has processed approximately 134 orders in the $50,000 to $100,000 range. Based on previous fiscal note calculations, WSU spends approximately 6 hours less (all inclusive) on an informal bid as it does on a formal bid process. This has saved the Purchasing Office an approximately 800 hours. The change in the bid thresholds has resulted in a total gain of approximately 2,275 hours in the past year -- about 26 hours per employee per month.

® The substantial time savings has allowed WSU Purchasing Office staff to gain considerable ground in the areas of strategic sourcing, business process improvement, and training. Employees have been able to attend training events that would have previously been very difficult, if not, impossible. The additional time has also resulted in more discussion and internal training regarding process improvement and being more strategic with our sourcing efforts. Processes have been developed that help streamline some of the routine payments made and the approvals necessary between the Purchasing and Accounts Payables offices. Policies and guidance documents have been worked on that have been much overdue and that have also helped streamline processes and/or reduce risks for the University.



® Purchasing employees have devoted more time to strategic sourcing best practices. The Spend Compass Tool has been refined and training developed. It has been deployed to various departments across the campus to aid them in analyzing their procurement efforts and providing them guidance on where they can save money on purchases. The end product of these efforts is an increase in master agreements for the goods and services that the University routinely needs to keep its research, education, and extension efforts moving forward in the most cost efficient manner.



Illustrative Efficiency Example F: Western Washington University

Western Efficiencies 2014Western Washington University recently received national recognition for the efficiency with which it operates (U.S. News and World Report). The U.S. News list of most efficient schools includes schools able to produce the highest educational quality, as determined by their place in U.S. News rankings, but spend relatively less money to achieve that high academic quality. According to U.S. News, with tight state budgets across the country, it is important for many universities and colleges to spend their limited resources to produce the highest possible educational quality. Western was the only public university or college from the state of Washington on the new U.S. News list. According to U.S. News, universities and colleges featured on the list are doing a good job of managing their financial resources relative to other schools that may have greater state funding, higher tuition, or larger endowments. Only schools that were numerically ranked in the top half of their ranking category in the Best Colleges 2013 rankings were included in this analysis.

Western continuously strives to improve operational efficiencies through process analysis, systems utilization, and strategic academic development. In addition to completing the Travel and Expense (TEM) and Refunding automation projects as reported in the 2013 Operational Efficiency and Effectiveness report, Western had the following operational projects, which will be underway and/or completed in 2014:

® Implementation of Ellucian’s Campus Receivables Collector (CRC) software within the Loans & Collection department provides Western with the following efficiencies:

G Eliminates an external third party contract bringing Perkins and Institutional loan processing in house as a cost saving measure and value-added improvements to customer service;

G Fully integrated with Western’s ERP system (Ellucian) and provides the ability to accurately track ALL billing, payment and collection data, eliminating shadow systems, confusion and non-value added time in manual compilation of information from numerous sources;

G Automates the generation of collection letters and tracks due diligence;

G CRC is integrated with CashNet (Western’s payment gateway). Debtors can sign in to their account via CRC’s web portal to make payments using a credit card or bank account. Debtors can also set up a monthly automatic deduction from their bank account;

G Automatically provides updates for credit bureau reporting as well as the National Student Clearinghouse updates.;

G Facilitates the placement and rotation of accounts to and from Western’s contracted collection agencies.



® Implementation of a new online system (T2) for Parking:

G Enables customers to purchase daily/weekly/annual permits online and pay citations

G Customers are able to access the system via their computer and mobile device

G Many manual processes are reduced or eliminated

G Moving manual citations to mobile application, implementation will add an estimated 250 productive hours per annual to parking

® Implementation of campus-wide eMarket Tool:

G Standardizes departmental cash handling processes, tightening internal controls on cash and eliminating manual processes

G Provides departments with ability to increase revenue

G Anticipate over $1 million in eMarket activity in 2014

G This is one of the strategies developing at WWU to eliminate all cash handling on campus

® Standardize and integrate Western’s facilities related activities, including capital projects and space management

G Comprehensive project (multi-year); 2014 is discovery phase

® Implementation of E-procurement purchasing

G Business process analysis conducted in 2014

G Focus on streamlining and re-engineering procurement processes

G Key process driver moving from transactional to tactical and strategic purchasing

G Reduction in cycle time for purchasing

G Estimated Savings 2% to 5% when fully implement annually

® Western Card Study

G Study of Consolidation of all cards on campus and Whatcom Transit Authority to One Western Card

Western has instituted many other changes related to expanding student access, fostering student success, and strengthening communities beyond the campus. These include:

® Established a Bachelor of Science in Nursing program to provide area nurses access to a BSN education and to respond to a regional need for highly qualified nurses;

® Increased access to majors designated “high-demand” by the State of Washington by expanding capacity in Computer Sciences, and other areas, and by creating a new minor in Renewable Energy;

® Began the process of transitioning the Engineering Technology degree to three Engineering degrees;



® Dramatically increased enrollment of low-income and historically underserved students. The percentage of PELL Grant-eligible students at Western increased from 16% in 2004 to 23% in 2013; the percentage of enrolled students of color in the first-year class increased from 17% in 2004 to 25% in 2013;

® Initiated new partnerships with Bellingham Technical College, Whatcom Community College, and Olympic College to provide more access to four-year degrees for students in Washington’s CTC system;

® Opened an Office of Veteran Services and increased its enrollment veterans; Western has the distinction as a Veteran Friendly University;

® Initiated a pilot of the Student Success Collaborative (SSC), a data-analytics and advising platform designed to identify pathways to graduation and to permit early identification of students in need of advising and tutoring services. The SSC also provides output performance data for deans and chairs so that they can chart the percentage of their students on track to graduate;

® Initiated mandatory advising of sophomores who have not declared a major by 105 credits. This initiative was informed by assessment data indicating that undeclared sophomores are retained at lower rates than sophomores who have declared majors;

® Increased the number of its first-year students who participate in first-year programs. (404 participants in 2009; 564 participants in 2013.) This expansion was informed by assessment data indicating that participants in academic first-year programs earn more credits, and higher fall grades, than non-participants fall;

® Institutionalized and expanded Compass to Campus, our regional effort to increase access to higher education by providing an opportunity for 5th-12th grade students from traditionally underrepresented and diverse backgrounds in Whatcom and Skagit counties to be mentored by university students;

® Established a new “Academic Integrity” initiative (through the Faculty Senate) to better prepare students for campus and work environments characterized by the digital sharing of information. The initiative includes resources for students, for faculty, and a campus-wide effort to establish a new ethos of academic integrity.



Illustrative Efficiency Example G: Orbis Cascade Alliance

In the early 1990s the COP provosts, library deans, and IT directors launched the Cooperative Library Project (CLP) with the goal of sharing of library resources among the six public baccalaureate institutions in Wash-ington. The Cooperative Library Project is now 18 years old, and a success story of which the Interinstitutional Committee of Academic Officers (ICCL) and Council of Presidents should feel rightfully proud. The CLP dem-onstrates the power of collaboration across our six institutions.

In partnership with the Legislature, the phased CLP was launched with supplemental budget funding in 1995, 1996 and 1998; the State appropriated $7.1 million in non-recurring and $2 million in recurring biennial dol-lars. With this funding the library systems were modernized and an integrated library system called Cascade was implemented that enabled students and faculty at any one of our campuses to electronically check out materials from any of the other libraries and have them delivered. The CLP also enabled the libraries to jointly license large electronic full text journal databases.

In 2003 the ICCL group took a major step in providing cooperative library services on a multi-state level. A partnership was launched with the Oregon library consortium, Orbis, providing ways to leverage resources that led to the merger of the two statewide systems in 2003 to form the Orbis Cascade Alliance.

Through the Orbis Cascade Alliance the libraries offer the Summit catalog and delivery system, combine the purchasing power of 37 academic libraries, support the nation’s first fully functioning distributed print repository, share an eBook collection (also another first), and are now mid-way through a ground-breaking endeavor that will combine the resources of all 37 institutions into a “one-stop” access point for 26,390,313 resources–books, ebooks, journal articles, ephemeral, special collections and much, much more; all there, under one virtual roof, and available with a keystroke.

The Alliance is the nation’s most innovative and successful consortia and can support multi-institutional ap-proaches that are critical for higher education in the region. The success of the Alliance is evident in the fact that its endeavors have been the topic of no less than 30 journal articles and presentations at the national and international level, as the library and IT world has watched the group over the years.

Collaboration at Its FinestThe traditional approach to library management systems was that every library had its own system, which can be hard to integrate with other systems and expensive to run, both in dollars paid to the vendor and in staff time to support them. There is duplication of effort, as the same data and records are loaded into multiple systems and then authority control and other maintenance must be done on those same records in each of the 37 sepa-rate systems.



The Orbis Cascade Alliance completed an RFP process to create a shared library management system and awarded the contract to Ex Libris in November 2012. With the implementation of the new, shared system on the Ex Libris platform, these issues will no longer exist; as all holdings from the 37 libraries in the consortium will reside in one common space. No other group of libraries has ever attempted this at the level that the Orbis Cascade Alliance is pursuing.

A single mission and vision supported by all Alliance libraries ensures the success of this project. On July 2, 2013 six Orbis Cascade libraries made history, again, by going live on the new, highly innovative shared library management system. The Cohort 1 early adopters were Linfield College, Marylhurst University, Pacific Univer-sity, University of Washington, Western Washington University, and Willamette University. Those libraries are now functional in the Ex Libris system. Three more cohorts follow, one every six months, with project comple-tion expected in December 2014.

The merger of systems from 37 libraries into one shared system represents a fundamental shift in the institu-tional relationships the Alliance libraries have with one another. It promotes a deeper level of collaboration: in technical services, in collection building, in shared expertise, in leveraging purchasing power, and in service de-livery. The return on investment from that initial funding in the mid-90s has been multi-fold. The students and faculty at the six Washington institutions (300,000 throughout the consortium) have benefitted exponentially from the collaborative spirit of the Orbis Cascade Alliance through shared expertise, gaining better services and efficiencies for all our campuses.



Appendix AHB 1795 Work Group Participants:

Paula MooreOffice of Financial Management

Cherie BerthonOffice of Financial Management

Marcie MaxwellOffice of the Governor

Paul FrancisCouncil of Presidents

Steve DuPontCentral Washington University

LeeAnn CaseEastern Washington University

Steve TrotterThe Evergreen State College

Ann AndersonUniversity of Washington

Kerry KahlUniversity of Washington

Margaret ShepherdUniversity of Washington

Sarah HallUniversity of Washington

Terry ElyWashington State University

Vicky MurrayWashington State University

Olivia YangWashington State University

Teresa MroczkiewiczWestern Washington University



Appendix BHB 1736 Work Group Participants:

Wayne DotyState Board for Community and Technical Colleges

Paul FrancisCouncil of Presidents

Steve DuPontCentral Washington University

LeeAnn CaseEastern Washington University

Jeanne RynneThe Evergreen State College

Jim AngelosanteUniversity of Washington

Dwight HagiharaWashington State University

Seth VidanaWestern Washington University



Appendix C Comparison of Building and Vehicle Reporting Requirements to Various State Agencies

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Category / Element Lead Agency> Ecology DES DES DES DOT * DES

RCW 70.235.050 19.27A.190 43.19.565 43.41.130 70.94.527 39.35D.030References http://www.ecy.wa.gov/climatechange/WAleadership.htmhttp://des.wa.gov/services/facilities/Energy/EnergyStar/Pages/EnergyStarReport.aspxhttp://des.wa.gov/services/Travel/Fleet/Pages/MPMonthlyMileage.aspx http://www.wsdot.wa.gov/Transit/Library/#CTRhttp://des.wa.gov/services/facilities/Energy/GreenBldg/Pages/default.aspx

Base Years Yes YesBase Year 2005 2010CY 2005 XCY 2008 XCY 2009 X

Ongoing Yes Yes Yes Yes Yes YesMonthly XAnnually X X X XBiennially X

Agency Information Yes Yes Yes YesAgency X X X X# of FTEs X# of Employees X X# of CTR affected Employees X# of Students, Patients, etc. 4Agency Owned Space (sq.ft.) XSpace leased in a DES owned building (Sq. Ft.) XSpace leased from another state agency (Sq. ft.) XSpace leased in a privately owned building (Sq. ft.) XTop Management Position contact information XOnsite Worksite Manager contact information XEmployee Transportation Coordinator (ETC) contact information XState Agencies Commute Trip Reduction Coordinator contact information? X

Building Information Yes Yes Yes YesName of the building X XName of institution XNearest city or town XLEED level XBuilding Type or Campus XOwnership Status (Own or Lease) XBuilding or Campus Address X XBuilding or Campus Owner XBuilding Area

Gross Floor AreaFloor Area by Space Type XPercent of floor area that is air conditioned XPercent of floor area that is heated X

Unique Building Identifier XBuilding Weekly Operating Hours X# of Workers on Main Shift X# of personal computers XApprox. Occupancy Date XDescribe the major uses of the building XDescribe the primary HVAC system XSquare footage of conditioned space X# of lab hoods X# and size of high energy consuming equipment (Volt & Amp or SqFt) XDescribe the renewable energy systems installed on and in the building XAverage # of normal hours of use per week XAverage # of people occupying the building during occupied hours during the fall, winter and spring XAverage # of people occupying the building during occupied hours during the summer XWorksite CTR ID number X

Comparison of Building and Vehicle Reporting Requirements of Washington State Agencies

Underlying Legislation

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Comparison of Building and Vehicle Reporting Requirements to Various State Agencies pg. 2 of 5

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Building Energy Use Yes Yes YesNatural Gas (Therms) X X XNatural Gas ($) XFuel Oil (Gallons) XPropane (Gallons) XWood (short tons) XDiesel used in fixed generators (gallons) XBiodiesel used in fixed generators (gallons) XGasoline used in fixed generators (gallons) XEthanol used in fixed generators (gallons) XAviation gasoline used in fixed equipment (gallons) XJet fuel used in fixed equipment (gallons) XElectricity Use (kWh) X X XElectricity Use ($) XPurchased Steam (Million lbs - Mlbs) XOther usage such as propane, oil, wood, coal, etc. Convert to (KBtu) XOther usage such as propane, oil, wood, coal, etc. ($) XChilled Water used in the facility when served by a central plant (KBtu) XHot Water used in the facility when served by a central plant. (KBtu) XSteam used in the facility when served by a central plant (KBtu) XDomestic HW if provided by a central plant or from another building (KBtu) XDomestic HW if provided by a central plant or from another building (gal) XSolar generated hot water used in the facility (KBtu) XElectricity generated by photovoltaic panels, wind turbines or other renewable energy generating units (KBtu) X

Water Use Yes YesWater used inside the building (ccf) XCaptured water used inside the building (gal) XReclaimed water used inside the building (gal) XReclaimed water used inside the building ($) XWater used for irrigation of the LEED project area (gal) XWater used for irrigation of the LEED project area ($) XCaptured water used outside of the building (gal) XReclaimed water used outside the building (gal) XReclaimed water used outside the building ($) X

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Vehicle Fleet Yes Yes YesFuel Use (gal)

Gasoline XEthanol (E85 Flex-Fuel) XDiesel (retail purchases) XDiesel/Biodiesel blend (WSDOT fueling stations) XGasoline used for Plug-in Gasoline/Electric Hybrids XElectric Only Vehicles X

Number of Vehicles by Type of Fuel UsedGasoline XEthanol (E85 Flex-Fuel) XDiesel (retail purchases) XDiesel/Biodiesel blend (WSDOT fueling stations) XGasoline used for Plug-in Gasoline/Electric Hybrids XElectric Only Vehicles X

Number of Miles Traveled by Type of Fuel UsedGasoline XEthanol (E85 Flex-Fuel) XDiesel (retail purchases) XDiesel/Biodiesel blend (WSDOT fueling stations) XGasoline used for Plug-in Gasoline/Electric Hybrids XElectric Only Vehicles X

Number of Miles TraveledLicense Plate Number XDate of Odometer Reading XOdometer Reading X

Light Duty Passenger Vehicles Purchased in YearVehicle Make XVehicle Model XModel Year XAverage EPA mpg X

Light Duty Passenger Vans and SUVs Purchased in YearVehicle Make XVehicle Model XModel Year XAverage EPA mpg X

All Vehicles in Agency FleetLicense Plate Number XDescription XVehicle Make XVehicle Model XModel Year XAverage EPA mpg X

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Employee Commuting Information Yes YesNumber of miles traveled in employee-owned vehicles XTotal GHG Emissions for Roundtrip Commutes from CTR report (MT CO2e)XPercent of commutes driven alone XHas the worksite moved within last 12 months? XIs a move under consideration within the next 12 months? XHow/where is ETC contact information posted? XHow/where is CTR information distributed? XDid you change how/where is CTR information distributed? XDo you plan to change how/where is CTR information distributed? XDoes your worksite participate in State and Regional CTR promotions or campaigns? XDid your worksite conduct CTR promotions or campaigns? XDoes your worksite plan to conduct CTR promotions or campaigns? XDid your worksite host a Transportation Fair? XDoes your worksite plan to host a Transportation Fair? XWhich site amenities do you have to support CTR? XWhich site amenities did you add to support CTR? XWhich site amenities are you planning to support CTR? XDoes the worksite offer telework opportunities? XDoes the worksite offer compressed work week schedules? XDoes the worksite offer flexible schedules? XWere changes made to telework, compressed work week, or flexible schedule policies? XAre changes planned to telework, compressed work week, or flexible schedule policies? XWhat CTR incentives are offered to worksite employees? XHave there been discussion at the worksite about instituting CTR incentives? XWere changes made to CTR incentives? XAre changes planned to CTR incentives? XWhich site amenities are you planning to support CTR? XDoes the worksite offer a guaranteed/emergency ride home? XHow does the worksite collaborate with other CTR worksites? XHow does worksite management support CTR? XHow is worksite management updated on the worksite's CTR program? XWhat CTR incentives are most likely to resonate with worksite employees? XWhat CTR incentives are most likely to resonate with worksite management? XHow does CTR relate to organization mission? XHow does your organization notify employees about RideShareOnline.com? XHow does your program ensure that all employees know about the State Agency Rider Pass? XHow does your program ensure that employees know about the State Agency Emergency Ride Program? XHow many employees at the worksite have a STAR Pass? XHow many employees at the worksite use the SAFE-Ride program? X

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Parking Information YesDoes the worksite charge for parking? XWhere do employees who drive park? XIs free offsite parking available within 3 blocks? XHow many spaces at the worksite are designated for carpools and vanpools? XAre there adequate carpool and vanpool parking available? XAre carpool and vanpool spaces in a preferred parking location? XWhere changes made to the worksite's parking program? XAre changes planned for the worksite's parking program? X

Business Air Travel YesNumber of Air Miles Traveled

On flights between 0 and 300 miles in length XOn flights between 300 and 700 miles in length. XOn flights greater than 700 miles in length. X

Outputs Yes Yes Yes YesFossil Fuel CO2 (MT CO2e) XCH4 (MT CO2e) X XN2O (MT CO2e) X XHFCs (MT CO2e) XBiomass CO2 (MT CO2e) XTotal CO2 (MT CO2e) X XAvoided Emissions (MT CO2e) XAgency average fuel economy for FY12 XAverage fuel economy of passenger vehicles purchased in FY12 XAverage fuel economy of passenger vans and SUV's purchased in FY12 XValue from Renewables ($/yr): XMelded Electric Rate ($/kWh): XMelded Gas Rate ($/therm): XOther Fuel Rate ($/MMBtu): XWater Use (Gal/Person/Year) XEnergy Use (KBtu/SF/Year) XEnergy Cost ($/SF/Year) XTotal Cost ($/SF/Year) XCalculation Method WaEcy Energy Star Agency DES

* CTR reporting above minimum requirements for state agencies varies by region. These elements are from the Thurston Regional Planning Council survey.

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Appendix D: State Authorization Reciprocity AgreementAmending RCW 28B.85.020 allows the WSAC to enter into reciprocity agreements.

A 2013 amendment to RCW 28B.85.020 authorizes the Student Achievement Council to enter into reciproc-ity agreements with other states and regional compacts under the Degree Authorization Act. This change will lower the cost to Washington institutions of developing and deploying robust distance education programs, and will expand the opportunities for Washington students to access quality distance learning opportunities from other states.

The federal government has made it clear that all institutions offering distance education in states other than their home states should be in compliance with the law in each state where they serve students. In the past, most institutions had not sought and received authorization to serve students in each of those other states. This federal clarification, therefore, had significant potential costs for institutions. Widely varying fees are currently required to secure and maintain approvals to operate in different states and substantial human resources are needed to understand the regulations in each state and apply for authorizations. Some institutions are deciding not to incur the cost of complying in certain states and are turning away students who live in those states. States also face substantial new expectations, with the potential of thousands of institutions requesting approval from all states, well exceeding the management capacity of current state authorization agencies.

The four existing regional higher education interstate compacts are collaborating on this issue. In addition to the Western Interstate Compact for Higher Education (WICHE), the compacts include the Midwestern Higher Ed-ucation Compact (MHEC), the New England Board of Higher Education (NEBHE), and the Southern Regional Educational Board (SREB). States within a region, working together and agreeing on terms of engagement and collaboration, will work cooperatively toward reciprocally accepting each other’s authorization of institutions to operate. Interstate recognition within a region would then extend to cover all participating states regardless of region.

States will benefit by focusing their limited resources on the oversight of institutions within their own state, regardless of where that institution serves students. As the number of institutions serving students in multiple states continues to increase, state regulatory offices would find it difficult to conduct meaningful reviews and on-going oversight of the hundreds, if not thousands, of out-of-state institutions operating in their states. Since regulators will focus their reviews on their “home state” institutions, they will have more confidence in the re-view process and that complaints will be handled and resolved.

State authorization reciprocity will improve institutional efficiency by reducing the staff time devoted to ap-plying for authorization from multiple states, as well as eventually eliminating most of the fees associated with obtaining authorization in each state.



Appendix E: HB 1795

CERTIFICATION OF ENROLLMENTENGROSSED SECOND SUBSTITUTE HOUSE BILL 1795

Chapter 10, Laws of 2011(partial veto)

62nd Legislature2011 1st Special Session

HIGHER EDUCATION OPPORTUNITY ACT

EFFECTIVE DATE: 08/24/11 - Except section 26, which becomeseffective 06/06/11.

Passed by the House May 9, 2011 Yeas 79 Nays 17

FRANK CHOPPSpeaker of the House of Representatives

Passed by the Senate May 10, 2011 Yeas 32 Nays 13

BRAD OWENPresident of the Senate

CERTIFICATEI, Barbara Baker, Chief Clerk ofthe House of Representatives ofthe State of Washington, do herebycertify that the attached isENGROSSED SECOND SUBSTITUTE HOUSEBILL 1795 as passed by the House ofRepresentatives and the Senate onthe dates hereon set forth.

BARBARA BAKERChief Clerk

Approved June 6, 2011, 12:00 p.m., withthe exception of Sections 13, 14, 15,16, 17, 18, 19, 20, 21, 22, 23, 24, and25 which are vetoed.

CHRISTINE GREGOIREGovernor of the State of Washington

FILEDJune 7, 2011

Secretary of StateState of Washington

_____________________________________________ENGROSSED SECOND SUBSTITUTE HOUSE BILL 1795

_____________________________________________Passed Legislature - 2011 1st Special Session

State of Washington 62nd Legislature 2011 1st Special SessionBy House Ways & Means (originally sponsored by RepresentativesCarlyle, Seaquist, Haler, Reykdal, Rolfes, Probst, Morris, Sells,Pedersen, Jacks, Hudgins, Maxwell, and Frockt)READ FIRST TIME 04/19/11.

1 AN ACT Relating to the higher education opportunity act; amending 2 RCW 28B.15.031, 28B.15.067, 28B.15.0681, 28B.15.068, 28B.76.270, 3 28B.92.060, 28A.600.310, 39.29.011, 43.19.1906, 43.88.160, 43.03.220, 4 43.03.230, 43.03.240, 43.03.250, and 43.03.265; amending 2010 c 3 ss 5 602, 603, and 604 (uncodified); amending 2010 1st sp.s. c 37 s 901 6 (uncodified); amending 2010 c 1 s 8 (uncodified); adding new sections 7 to chapter 28B.15 RCW; adding a new section to chapter 28B.10 RCW; 8 adding a new section to chapter 28B.50 RCW; adding a new section to 9 chapter 28B.76 RCW; adding a new section to chapter 44.28 RCW; creating10 new sections; repealing RCW 28B.10.920, 28B.10.921, and 28B.10.922;11 providing expiration dates; and declaring an emergency.

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

13 NEW SECTION. Sec. 1. (1) The legislature finds that in the14 knowledge-based, globally interdependent economy of the twenty-first15 century, postsecondary education is the most indispensable form of16 currency. Public institutions of higher education are drivers of17 economic growth and job creation and incubators for innovation. An18 educated citizenry is a critical component of our democracy, and a19 commitment to provide public funding for public higher education

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1 institutions is imperative. At the same time, the legislature finds 2 that Washington state is experiencing a profound structural shift in 3 the funding of higher education. State support has declined 4 dramatically over the past twenty years, thereby necessitating 5 increases in tuition to supplant the support of higher education from 6 general taxpayers. The problem faced by all stakeholders - students 7 and their families, institutions, and policymakers - is a growing 8 reliance on tuition dollars and a reduced reliance on state support. 9 At the same time, there is insufficient visibility into the use of10 locally retained tuition dollars. There is little transparency11 regarding whether increasing tuition dollars gives students, their12 families, and Washington taxpayers a high-value return on investment.13 Responding to those concerns, and recognizing that tuition-setting14 authority is interrelated to a wide variety of factors including state15 funding, student aid, admissions, dual credit, educational16 effectiveness, regulatory and reporting requirements, and other17 policies and practices, this higher education opportunity act directs18 a number of higher education system reforms.19 (2) It is the intent of the legislature to:20 (a) Ensure that tuition dollars are spent to improve student21 access, affordability, and the quality of education;22 (b) Establish a clear nexus between tuition dollars and improved23 productivity and greater accountability of public institutions of24 higher education;25 (c) Create a modern and robust higher education financial system26 that funds outcomes and results rather than input and process; and27 (d) Continue a commitment to public funding of higher education28 through state appropriations that are essential for providing access,29 affordability, and quality in higher education for all students across30 the state.31 (3)(a) It is the intent of the legislature to set goals for four-32 year institutions of higher education to increase the number of33 students who earn baccalaureate degrees, while maintaining quality, and34 achieve the following initial degree completion targets by 2018:35 (i) Increasing the number of bachelor's degrees earned by36 Washington's resident students from the 2009-10 academic year levels by37 at least six thousand degrees completed or by twenty-seven percent;

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1 (ii) Consistent with the priority for expanding the number of 2 enrollments and degrees in the fields of engineering, technology, 3 biotechnology, sciences, computer sciences, and mathematics, at least 4 two thousand of the additional degrees under this subsection (3)(a) 5 would be awarded in the areas of science, which includes agriculture 6 and natural resources, biology and biomedical sciences, computer and 7 information sciences, engineering and engineering technologies, health 8 professions and clinical sciences, mathematics and statistics, and 9 physical sciences and science technologies; and10 (iii) Attaining parity in degree attainment for students from11 underrepresented groups, which would mean that at least nineteen12 percent of the degrees awarded would include students who are low-13 income or are the first in their families to attend college.14 (b) It is the intent of the legislature that the bachelor degree15 completion targets in (a) of this subsection be updated every two years16 based upon the state's changing population and economic needs and that17 targets be set for five-year periods following the 2018 target.18 (c) It is the intent of the legislature to urge four-year19 institutions of higher education to place the highest priority on20 achieving the degree completion targets under (a) of this subsection.21 The legislature intends to examine the strategies used and progress22 made by institutions of higher education to meet the targets in23 addition to evidence of increased cost-effectiveness and efficiency.24 The legislature recognizes that individual institutions develop their25 campus goals recognizing the role of their campus as part of the system26 of public higher education and may implement a variety of innovative27 methods to achieve these goals.

28 Sec. 2. RCW 28B.15.031 and 2003 c 232 s 2 are each amended to read29 as follows:30 The term "operating fees" as used in this chapter shall include the31 fees, other than building fees, charged all students registering at the32 state's colleges and universities but shall not include fees for short33 courses, self-supporting degree credit programs and courses, marine34 station work, experimental station work, correspondence or extension35 courses, and individual instruction and student deposits or rentals,36 disciplinary and library fines, which colleges and universities shall37 have the right to impose, laboratory, gymnasium, health, technology and

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1 student activity fees, or fees, charges, rentals, and other income 2 derived from any or all revenue producing lands, buildings and 3 facilities of the colleges or universities heretofore or hereafter 4 acquired, constructed or installed, including but not limited to income 5 from rooms, dormitories, dining rooms, hospitals, infirmaries, housing 6 or student activity buildings, vehicular parking facilities, land, or 7 the appurtenances thereon, or such other special fees as may be 8 established by any college or university board of trustees or regents 9 from time to time. All moneys received as operating fees at any10 institution of higher education shall be deposited in a local account11 containing only operating fees revenue and related interest: PROVIDED,12 That a minimum of ((three and one-half)) five percent of operating fees13 shall be retained by the four-year institutions of higher education14 that increase tuition for resident undergraduate students above assumed15 tuition increases in the omnibus appropriations act, a minimum of four16 percent of operating fees shall be retained by four-year institutions17 of higher education that do not increase tuition for resident18 undergraduates above assumed increases in the omnibus appropriations19 act, and a minimum of three and one-half percent of operating fees20 shall be retained by the community and technical colleges for the21 purposes of RCW 28B.15.820. At least thirty percent of operating fees22 required to be retained by the four-year institutions for purposes of23 RCW 28B.15.820 shall be used only for the purposes of RCW24 28B.15.820(10). Local operating fee accounts shall not be subject to25 appropriation by the legislature or allotment procedures under chapter26 43.88 RCW.

27 Sec. 3. RCW 28B.15.067 and 2010 c 20 s 7 are each amended to read28 as follows:29 (1) Tuition fees shall be established under the provisions of this30 chapter.31 (2) ((Beginning with the 2003-04 academic year and ending with the32 2012-13 academic year, reductions or increases in full-time tuition33 fees for resident undergraduates shall be as provided in the omnibus34 appropriations act)) Beginning in the 2011-12 academic year, reductions35 or increases in full-time tuition fees shall be as provided in the36 omnibus appropriations act for resident undergraduate students at37 community and technical colleges. The governing boards of the state

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1 universities, regional universities, and The Evergreen State College; 2 and the state board for community and technical colleges may reduce or 3 increase full-time tuition fees for all students other than resident 4 undergraduates, including nonresident students, summer school students, 5 and students in other self-supporting degree programs. Percentage 6 increases in full-time tuition may exceed the fiscal growth factor. 7 The state board for community and technical colleges may pilot or 8 institute differential tuition models. The board may define scale, 9 scope, and rationale for the models.10 (3)(a) Beginning with the ((2003-04)) 2011-12 academic year and11 ((ending with the 2012-13)) through the end of the 2014-15 academic12 year, the governing boards of the state universities, the regional13 universities, and The Evergreen State College((, and the state board14 for community and technical colleges)) may reduce or increase full-time15 tuition fees for all students ((other than resident undergraduates)),16 including summer school students and students in other self-supporting17 degree programs. Percentage increases in full-time tuition fees may18 exceed the fiscal growth factor. Reductions or increases may be made19 for all or portions of an institution's programs, campuses, courses, or20 students.21 (b) Prior to reducing or increasing tuition for each academic year,22 the governing boards of the state universities, the regional23 universities, and The Evergreen State College shall consult with24 existing student associations or organizations with student25 undergraduate and graduate representatives regarding the impacts of26 potential tuition increases. Governing boards shall be required to27 provide data regarding the percentage of students receiving financial28 aid, the sources of aid, and the percentage of total costs of29 attendance paid for by aid.30 (c) Prior to reducing or increasing tuition for each academic year,31 ((each college in)) the state board for community and technical college32 system shall consult with existing student associations or33 organizations with undergraduate student representation regarding the34 impacts of potential tuition increases. The state board for community35 and technical colleges shall provide data regarding the percentage of36 students receiving financial aid, the sources of aid, and the37 percentage of total costs of attendance paid for by aid.

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1 (4) ((Academic year tuition for full-time students at the state's 2 institutions of higher education beginning with 2015-16, other than 3 summer term, shall be as charged during the 2014-15 academic year 4 unless different rates are adopted by the legislature)) Beginning with 5 the 2015-16 academic year through the 2018-19 academic year, the 6 governing boards of the state universities, regional universities, and 7 The Evergreen State College may set tuition for resident undergraduates 8 as follows: 9 (a) If state funding for a college or university falls below the10 state funding provided in the operating budget for fiscal year 2011,11 the governing board may increase tuition up to the limits set in (d) of12 this subsection, reduce enrollments, or both;13 (b) If state funding for a college or university is at least at the14 level of state funding provided in the operating budget for fiscal year15 2011, the governing board may increase tuition up to the limits set in16 (d) of this subsection and shall continue to at least maintain the17 actual enrollment levels for fiscal year 2011 or increase enrollments18 as required in the omnibus appropriations act; and19 (c) If state funding is increased so that combined with resident20 undergraduate tuition the sixtieth percentile of the total per-student21 funding at similar public institutions of higher education in the22 global challenge states under RCW 28B.15.068 is exceeded, the governing23 board shall decrease tuition by the amount needed for the total per-24 student funding to be at the sixtieth percentile under RCW 28B.15.068.25 (d) The amount of tuition set by the governing board for an26 institution under this subsection (4) may not exceed the sixtieth27 percentile of the resident undergraduate tuition of similar public28 institutions of higher education in the global challenge states.29 (5) The tuition fees established under this chapter shall not apply30 to high school students enrolling in participating institutions of31 higher education under RCW 28A.600.300 through 28A.600.400.32 (6) The tuition fees established under this chapter shall not apply33 to eligible students enrolling in a dropout reengagement program34 through an interlocal agreement between a school district and a35 community or technical college under RCW 28A.175.100 through36 28A.175.110.37 (7) The tuition fees established under this chapter shall not apply

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1 to eligible students enrolling in a community or technical college 2 participating in the pilot program under RCW 28B.50.534 for the purpose 3 of obtaining a high school diploma. 4 (8) ((For the academic years 2003-04 through 2008-09, the 5 University of Washington shall use an amount equivalent to ten percent 6 of all revenues received as a result of law school tuition increases 7 beginning in academic year 2000-01 through academic year 2008-09 to 8 assist needy low and middle-income resident law students. 9 (9) For the academic years 2003-04 through 2008-09, institutions of10 higher education shall use an amount equivalent to ten percent of all11 revenues received as a result of graduate academic school tuition12 increases beginning in academic year 2003-04 through academic year13 2008-09 to assist needy low and middle-income resident graduate14 academic students.15 (10) Any tuition increases above seven percent shall fund costs of16 instruction, library and student services, utilities and maintenance,17 other costs related to instruction as well as institutional financial18 aid. Through 2010-11, any funding reductions to instruction, library19 and student services, utilities and maintenance and other costs related20 to instruction shall be proportionally less than other program areas21 including administration)) Beginning in the 2019-20 academic year,22 reductions or increases in full-time tuition fees for resident23 undergraduates at four-year institutions of higher education shall be24 as provided in the omnibus appropriations act.

25 Sec. 4. RCW 28B.15.0681 and 2009 c 215 s 6 are each amended to26 read as follows:27 (1) In addition to the requirement in RCW 28B.76.300(4),28 institutions of higher education shall disclose to their undergraduate29 resident students on the tuition billing statement, in dollar figures30 for a full-time equivalent student:31 (a) The full cost of instruction;32 (b) The amount collected from student tuition and fees; and33 (c) The difference between the amounts for the full cost of34 instruction and the student tuition and fees.35 (2) The tuition billing statement shall note that the difference36 between the cost and tuition under subsection (1)(c) of this section37 was paid by state tax funds and other moneys.

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1 (3) Beginning in the 2010-11 academic year, the amount determined 2 in subsection (1)(c) of this section shall be labeled an "opportunity 3 pathway" on the tuition billing statement. 4 (4) Beginning in the 2010-11 academic year, institutions of higher 5 education shall label financial aid awarded to resident undergraduate 6 students as an "opportunity pathway" on the tuition billing statement 7 or financial aid award notification. Aid granted to students outside 8 of the financial aid package provided through the institution of higher 9 education and loans provided by the federal government are not subject10 to the labeling provisions in this subsection. All other aid from all11 sources including federal, state, and local governments, local12 communities, nonprofit and for-profit organizations, and institutions13 of higher education must be included. The disclosure requirements14 specified in this section do not change the source, award amount,15 student eligibility, or student obligations associated with each award.16 Institutions of higher education retain the ability to customize their17 tuition billing statements to inform students of the assistance source,18 amount, and type so long as provisions of this section are also19 fulfilled.20 (5) Institutions of higher education shall provide the following21 information to all undergraduate resident students either on the22 tuition billing statement or via a link to a web site detailing the23 following information:24 (a) The sources of all institutional revenue received during the25 prior academic or fiscal year, including but not limited to state,26 federal, local, and private sources;27 (b) The uses of tuition revenue collected during the prior academic28 or fiscal year by program category as determined by the office of29 financial management; and30 (c) The accountability and performance data under RCW 28B.76.270.31 (6) The tuition billing statement disclosures shall be in twelve-32 point type and boldface type where appropriate.33 (((6))) (7) All tuition billing statements or financial aid award34 notifications at institutions of higher education must notify resident35 undergraduate students of federal tax credits related to higher36 education for which they may be eligible.

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1 NEW SECTION. Sec. 5. A new section is added to chapter 28B.15 RCW 2 to read as follows: 3 (1) To ensure institutional quality, promote access, and advance 4 the public mission of the state universities, the regional 5 universities, and The Evergreen State College, the authority to 6 increase or decrease tuition rates shall be considered within the 7 context of performance-based measures and goals for each state 8 university, regional university, and The Evergreen State College. By 9 September 1, 2011, and September 1st every two years thereafter, the10 state universities, the regional universities, and The Evergreen State11 College shall each negotiate an institutional performance plan with the12 office of financial management that includes expected outcomes that13 must be achieved by each institution in the subsequent biennium.14 (2) At a minimum, an individual institutional performance plan must15 include but is not limited to the following expected outcomes:16 (a) Time and credits to degree;17 (b) Retention and success of students from low-income, diverse, or18 underrepresented communities;19 (c) Baccalaureate degree production for resident students; and20 (d) Degree production in high-employer demand programs of study and21 critical state need areas.

22 NEW SECTION. Sec. 6. A new section is added to chapter 28B.15 RCW23 to read as follows:24 (1) Beginning with the 2011-12 academic year, any four-year25 institution of higher education that increases tuition beyond levels26 assumed in the omnibus appropriations act is subject to the financial27 aid requirements included in this section and shall remain subject to28 these requirements through the 2018-19 academic year.29 (2) Beginning July 1, 2011, each four-year institution of higher30 education that raises tuition beyond levels assumed in the omnibus31 appropriations act shall, in a manner consistent with the goal of32 enhancing the quality of and access to their institutions, provide33 financial aid to offset full-time tuition fees for resident34 undergraduate students as follows:35 (a) Subtract from the full-time tuition fees an amount that is36 equal to the maximum amount of a state need grant award that would be

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1 given to an eligible student with a family income at or below fifty 2 percent of the state's median family income as determined by the higher 3 education coordinating board; and 4 (b) Offset the remainder as follows: 5 (i) Students with demonstrated need whose family incomes are at or 6 below fifty percent of the state's median family income shall receive 7 financial aid equal to one hundred percent of the remainder if an 8 institution's full-time tuition fees for resident undergraduate 9 students is five percent or greater of the state's median family income10 for a family of four as provided by the higher education coordinating11 board;12 (ii) Students with demonstrated need whose family incomes are13 greater than fifty percent and no more than seventy percent of the14 state's median family income shall receive financial aid equal to15 seventy-five percent of the remainder if an institution's full-time16 tuition fees for resident undergraduate students is ten percent or17 greater of the state's median family income for a family of four as18 provided by the higher education coordinating board;19 (iii) Students with demonstrated need whose family incomes exceed20 seventy percent and are less than one hundred percent of the state's21 median family income shall receive financial aid equal to fifty percent22 of the remainder if an institution's full-time tuition fees for23 resident undergraduate students is fifteen percent or greater of the24 state's median family income for a family of four as provided by the25 higher education coordinating board; and26 (iv) Students with demonstrated need whose family incomes are at or27 exceed one hundred percent and are no more than one hundred twenty-five28 percent of the state's median family income shall receive financial aid29 equal to twenty-five percent of the remainder if an institution's30 full-time tuition fees for resident undergraduate students is twenty31 percent or greater of the state's median family income for a family of32 four as provided by the higher education coordinating board.33 (3) The financial aid required in subsection (2) of this section34 shall:35 (a) Be reduced by the amount of other financial aid awards, not36 including the state need grant;37 (b) Be prorated based on credit load; and38 (c) Only be provided to students up to demonstrated need.

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1 (4) Financial aid sources and methods may be: 2 (a) Tuition revenue or locally held funds; 3 (b) Tuition waivers created by a four-year institution of higher 4 education for the specific purpose of serving low and middle-income 5 students; or 6 (c) Local financial aid programs. 7 (5) Use of tuition waivers as specified in subsection (4)(b) of 8 this section shall not be included in determining total state tuition 9 waiver authority as defined in RCW 28B.15.910.10 (6) By August 15, 2012, and August 15th every year thereafter,11 four-year institutions of higher education shall report to the governor12 and relevant committees of the legislature on the effectiveness of the13 various sources and methods of financial aid in mitigating tuition14 increases. A key purpose of these reports is to provide information15 regarding the results of the decision to grant tuition-setting16 authority to the four-year institutions of higher education and whether17 tuition setting authority should continue to be granted to the18 institutions or revert back to the legislature after consideration of19 the impacts on students, including educational access, affordability,20 and quality. These reports shall include:21 (a) The amount of additional financial aid provided to middle-22 income and low-income students with demonstrated need in the aggregate23 and per student;24 (b) An itemization of the sources and methods of financial aid25 provided by the four-year institution of higher education in the26 aggregate and per student;27 (c) An analysis of the combined impact of federal tuition tax28 credits and financial aid provided by the institution of higher29 education on the net cost to students and their families resulting from30 tuition increases;31 (d) In cases where tuition increases are greater than those assumed32 in the omnibus appropriations act at any four-year institution of33 higher education, the institution must include an explanation in its34 report of why this increase was necessary and how the institution will35 mitigate the effects of the increase. The institution must include in36 this section of its report a plan and specific timelines; and37 (e) An analysis of changes in resident student enrollment patterns,38 participation rates, graduation rates, and debt load, by race and

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1 ethnicity, gender, state and county of origin, age, and socioeconomic 2 status, and a plan to mitigate effects of reduced diversity due to 3 tuition increases. This analysis shall include disaggregated data for 4 resident students in the following income brackets: 5 (i) Up to seventy percent of the median family income; 6 (ii) Between seventy-one percent and one hundred twenty-five 7 percent of the median family income; and 8 (iii) Above one hundred twenty-five percent of the median family 9 income.10 (7) Beginning in the 2012-13 academic year, the University of11 Washington shall enroll during each academic year at least the same12 number of resident freshman undergraduate students at the Seattle13 campus, as defined in RCW 28B.15.012, as enrolled during the 2009-1014 academic year. This requirement shall not apply to nonresident15 undergraduate and graduate and professional students.

16 Sec. 7. RCW 28B.15.068 and 2009 c 540 s 1 are each amended to read17 as follows:18 (1) ((Beginning with the 2007-08 academic year and ending with the19 2016-17 academic year, tuition fees charged to full-time resident20 undergraduate students, except in academic years 2009-10 and 2010-11,21 may increase no greater than seven percent over the previous academic22 year in any institution of higher education. Annual reductions or23 increases in full-time tuition fees for resident undergraduate students24 shall be as provided in the omnibus appropriations act, within the25 seven percent increase limit established in this section. For academic26 years 2009-10 and 2010-11 the omnibus appropriations act may provide27 tuition increases greater than seven percent. To the extent that state28 appropriations combined with tuition and fee revenues are insufficient29 to achieve the total per-student funding goals established in30 subsection (2) of this section, the legislature may revisit state31 appropriations, authorized enrollment levels, and changes in tuition32 fees for any given fiscal year.33 (2) The state shall adopt as its goal total per-student funding34 levels, from state appropriations plus tuition and fees, of at least35 the sixtieth percentile of total per-student funding at similar public36 institutions of higher education in the global challenge states. In37 defining comparable per-student funding levels, the office of financial

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1 management shall adjust for regional cost-of-living differences; for 2 differences in program offerings and in the relative mix of lower 3 division, upper division, and graduate students; and for accounting and 4 reporting differences among the comparison institutions. The office of 5 financial management shall develop a funding trajectory for each four- 6 year institution of higher education and for the community and 7 technical college system as a whole that when combined with tuition and 8 fees revenue allows the state to achieve its funding goal for each 9 four-year institution and the community and technical college system as10 a whole no later than fiscal year 2017. The state shall not reduce11 enrollment levels below fiscal year 2007 budgeted levels in order to12 improve or alter the per-student funding amount at any four-year13 institution of higher education or the community and technical college14 system as a whole. The state recognizes that each four-year15 institution of higher education and the community and technical college16 system as a whole have different funding requirements to achieve17 desired performance levels, and that increases to the total per-student18 funding amount may need to exceed the minimum funding goal.19 (3))) By September 1st of each year beginning in ((2008)) 2011, the20 office of financial management shall report to the governor, the higher21 education coordinating board, and appropriate committees of the22 legislature with updated estimates of:23 (a) The total per-student funding level that represents the24 sixtieth percentile of funding for ((comparable)) similar institutions25 of higher education in the global challenge states((, and the progress26 toward that goal that was made for each of the public institutions of27 higher education)); and28 (b) The tuition that represents the sixtieth percentile of resident29 undergraduate tuition for similar institutions of higher education in30 the global challenge states.31 (((4))) (2) As used in this section, "global challenge states" are32 the top performing states on the new economy index published by the33 progressive policy institute as of July 22, 2007. The new economy34 index ranks states on indicators of their potential to compete in the35 new economy. At least once every five years, the office of financial36 management shall determine if changes to the list of global challenge37 states are appropriate. The office of financial management shall38 report its findings to the governor and the legislature.

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1 (((5) During the 2009-10 and the 2010-11 academic years, 2 institutions of higher education shall include information on their 3 billing statements notifying students of tax credits available through 4 the American opportunity tax credit provided in the American recovery 5 and reinvestment act of 2009.)) (3) Institutions of higher education, 6 in collaboration with relevant student associations, shall aim to have 7 all students who can benefit from available tax credits that mitigate 8 the costs of higher education take advantage of these opportunities. 9 These tax credits include the American opportunity tax credit provided10 in the American recovery and reinvestment act of 2009, the lifetime11 learning credit, and other relevant tax credits for as long as they are12 available.13 (4)(a) Institutions shall make every effort to communicate to14 students and their families the benefits of such tax credits and15 provide assistance to students and their families on how to apply.16 (b) Information about relevant tax credits shall, to the greatest17 extent possible, be incorporated into financial aid counseling,18 admission information, and individual billing statements.19 (c) Institutions shall, to the greatest extent possible, use all20 means of communication, including but not limited to web sites, online21 catalogues, admission and registration forms, mass email messaging,22 social media, and outside marketing to ensure information about23 relevant tax credits is visible and compelling, and reaches the maximum24 amount of student and families that can benefit.25 (5) In the event that the economic value of the American26 opportunity tax credit is reduced or expires at any time before27 December 31, 2012, institutions of higher education shall:28 (a) Develop an updated tuition mitigation plan established under29 section 6 of this act for the purpose of minimizing, to the greatest30 extent possible, the increase in net cost of tuition or total cost of31 attendance for students resulting from any such change. This plan32 shall include the methods specified by the four-year institution of33 higher education to avoid adding additional loan debt burdens to34 students regardless of the source of such loans;35 (b) Report to the governor and the relevant committees of the36 legislature on their plans to adjust their tuition mitigation plans no37 later than ninety days after any such change to the American38 opportunity tax credit.

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1 Sec. 8. RCW 28B.76.270 and 2004 c 275 s 11 are each amended to 2 read as follows: 3 (1) The board shall establish an accountability monitoring and 4 reporting system as part of a continuing effort to make meaningful and 5 substantial progress towards the achievement of long-term performance 6 goals in higher education. 7 (2) To provide consistent, easily understood data among the public 8 four-year institutions of higher education within Washington and in 9 other states, the following data must be reported annually by December10 1st, and at a minimum include data recommended by a national11 organization representing state chief executives. The board may change12 the data requirements to be consistent with best practices across the13 country. This data must, to the maximum extent possible, be14 disaggregated by race and ethnicity, gender, state and county of15 origin, age, and socioeconomic status, and include the following for16 the four-year institutions of higher education:17 (a) Bachelor's degrees awarded;18 (b) Graduate and professional degrees awarded;19 (c) Graduation rates: The number and percentage of students who20 graduate within four years for bachelor's degrees and within the21 extended time, which is six years for bachelor's degrees;22 (d) Transfer rates: The annual number and percentage of students23 who transfer from a two-year to a four-year institution of higher24 education;25 (e) Time and credits to degree: The average length of time in26 years and average number of credits that graduating students took to27 earn a bachelor's degree;28 (f) Enrollment in remedial education: The number and percentage of29 entering first-time undergraduate students who place into and enroll in30 remedial mathematics, English, or both;31 (g) Success beyond remedial education: The number and percentage32 of entering first-time undergraduate students who complete entry33 college-level math and English courses within the first two consecutive34 academic years;35 (h) Credit accumulation: The number and percentage of first-time36 undergraduate students completing two quarters or one semester worth of37 credit during their first academic year;

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1 (i) Retention rates: The number and percentage of entering 2 undergraduate students who enroll consecutively from fall-to-spring and 3 fall-to-fall at an institution of higher education; 4 (j) Course completion: The percentage of credit hours completed 5 out of those attempted during an academic year; 6 (k) Program participation and degree completion rates in bachelor 7 and advanced degree programs in the sciences, which includes 8 agriculture and natural resources, biology and biomedical sciences, 9 computer and information sciences, engineering and engineering10 technologies, health professions and clinical sciences, mathematics and11 statistics, and physical sciences and science technologies, including12 participation and degree completion rates for students from13 traditionally underrepresented populations;14 (l) Annual enrollment: Annual unduplicated number of students15 enrolled over a twelve-month period at institutions of higher education16 including by student level;17 (m) Annual first-time enrollment: Total first-time students18 enrolled in a four-year institution of higher education;19 (n) Completion ratio: Annual ratio of undergraduate and graduate20 degrees and certificates, of at least one year in expected length,21 awarded per one hundred full-time equivalent undergraduate students at22 the state level;23 (o) Market penetration: Annual ratio of undergraduate and graduate24 degrees and certificates, of at least one year in program length,25 awarded relative to the state's population age eighteen to twenty-four26 years old with a high school diploma;27 (p) Student debt load: Median three-year distribution of debt28 load, excluding private loans or debts incurred before coming to the29 institution;30 (q) Data related to enrollment, completion rates, participation31 rates, and debt load shall be disaggregated for students in the32 following income brackets to the maximum extent possible:33 (i) Up to seventy percent of the median family income;34 (ii) Between seventy-one percent and one hundred twenty-five35 percent of the median family income; and36 (iii) Above one hundred twenty-five percent of the median family37 income; and

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1 (r) Yearly percentage increases in the average cost of 2 undergraduate instruction. 3 (3) Four-year institutions of higher education must count all 4 students when collecting data, not only first-time, full-time freshmen. 5 (4) Based on guidelines prepared by the board, each four-year 6 institution and the state board for community and technical colleges 7 shall submit a biennial plan to achieve measurable and specific 8 improvements each academic year on statewide and institution-specific 9 performance measures. Plans shall be submitted to the board along with10 the biennial budget requests from the institutions and the state board11 for community and technical colleges. Performance measures established12 for the community and technical colleges shall reflect the role and13 mission of the colleges.14 (((3))) (5) The board shall approve biennial performance targets15 for each four-year institution and for the community and technical16 college system and shall review actual achievements annually. The17 state board for community and technical colleges shall set biennial18 performance targets for each college or district, where appropriate.19 (((4))) (6) The board shall submit a report on progress towards the20 statewide goals, with recommendations for the ensuing biennium, to the21 fiscal and higher education committees of the legislature along with22 the board's biennial budget recommendations.23 (((5))) (7) The board, in collaboration with the four-year24 institutions and the state board for community and technical colleges,25 shall periodically review and update the accountability monitoring and26 reporting system.27 (((6))) (8) The board shall develop measurable indicators and28 benchmarks for its own performance regarding cost, quantity, quality,29 and timeliness and including the performance of committees and advisory30 groups convened under this chapter to accomplish such tasks as31 improving transfer and articulation, improving articulation with the K-32 12 education system, measuring educational costs, or developing data33 protocols. The board shall submit its accountability plan to the34 legislature concurrently with the biennial report on institution35 progress.36 (9) In conjunction with the office of financial management, all37 four-year institutions of higher education must display the data38 described in subsection (2) of this section in a uniform dashboard

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1 format on the office of financial management's web site no later than 2 December 1, 2011, and updated thereafter annually by December 1st. To 3 the maximum extent possible, the information must be viewable by race 4 and ethnicity, gender, state and county of origin, age, and 5 socioeconomic status. The information may be tailored to meet the 6 needs of various target audiences such as students, researchers, and 7 the general public.

8 Sec. 9. RCW 28B.92.060 and 2009 c 215 s 4 are each amended to read 9 as follows:10 In awarding need grants, the board shall proceed substantially as11 follows: PROVIDED, That nothing contained herein shall be construed to12 prevent the board, in the exercise of its sound discretion, from13 following another procedure when the best interest of the program so14 dictates:15 (1) The board shall annually select the financial aid award16 recipients from among Washington residents applying for student17 financial aid who have been ranked according to:18 (a) Financial need as determined by the amount of the family19 contribution; and20 (b) Other considerations, such as whether the student is a former21 foster youth, or is a placebound student who has completed an associate22 of arts or associate of science degree or its equivalent.23 (2) The financial need of the highest ranked students shall be met24 by grants depending upon the evaluation of financial need until the25 total allocation has been disbursed. Funds from grants which are26 declined, forfeited or otherwise unused shall be reawarded until27 disbursed, except that eligible former foster youth shall be assured28 receipt of a grant. The board, in consultation with four-year29 institutions of higher education, and the state board for community and30 technical colleges, shall develop award criteria and methods of31 disbursement based on level of need, and not solely rely on a first-32 come, first-served basis.33 (3) A student shall be eligible to receive a state need grant for34 up to five years, or the credit or clock hour equivalent of five years,35 or up to one hundred twenty-five percent of the published length of36 time of the student's program. A student may not start a new associate37 degree program as a state need grant recipient until at least five

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1 years have elapsed since earning an associate degree as a need grant 2 recipient, except that a student may earn two associate degrees 3 concurrently. Qualifications for renewal will include maintaining 4 satisfactory academic progress toward completion of an eligible program 5 as determined by the board. Should the recipient terminate his or her 6 enrollment for any reason during the academic year, the unused portion 7 of the grant shall be returned to the state educational grant fund by 8 the institution according to the institution's own policy for issuing 9 refunds, except as provided in RCW 28B.92.070.10 (4) In computing financial need, the board shall determine a11 maximum student expense budget allowance, not to exceed an amount equal12 to the total maximum student expense budget at the public institutions13 plus the current average state appropriation per student for operating14 expense in the public institutions. Any child support payments15 received by students who are parents attending less than half-time16 shall not be used in computing financial need.17 (5)(a) A student who is enrolled in three to six credit-bearing18 quarter credits, or the equivalent semester credits, may receive a19 grant for up to one academic year before beginning a program that leads20 to a degree or certificate.21 (b) An eligible student enrolled on a less-than-full-time basis22 shall receive a prorated portion of his or her state need grant for any23 academic period in which he or she is enrolled on a less-than-full-time24 basis, as long as funds are available.25 (c) An institution of higher education may award a state need grant26 to an eligible student enrolled in three to six credit-bearing quarter27 credits, or the semester equivalent, on a provisional basis if:28 (i) The student has not previously received a state need grant from29 that institution;30 (ii) The student completes the required free application for31 federal student aid;32 (iii) The institution has reviewed the student's financial33 condition, and the financial condition of the student's family if the34 student is a dependent student, and has determined that the student is35 likely eligible for a state need grant; and36 (iv) The student has signed a document attesting to the fact that37 the financial information provided on the free application for federal38 student aid and any additional financial information provided directly

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1 to the institution is accurate and complete, and that the student 2 agrees to repay the institution for the grant amount if the student 3 submitted false or incomplete information. 4 (6) As used in this section, "former foster youth" means a person 5 who is at least eighteen years of age, but not more than twenty-four 6 years of age, who was a dependent of the department of social and 7 health services at the time he or she attained the age of eighteen.

8 Sec. 10. RCW 28A.600.310 and 2009 c 450 s 8 are each amended to 9 read as follows:10 (1) Eleventh and twelfth grade students or students who have not11 yet received the credits required for the award of a high school12 diploma and are eligible to be in the eleventh or twelfth grades may13 apply to a participating institution of higher education to enroll in14 courses or programs offered by the institution of higher education. A15 student receiving home-based instruction enrolling in a public high16 school for the sole purpose of participating in courses or programs17 offered by institutions of higher education shall not be counted by the18 school district in any required state or federal accountability19 reporting if the student's parents or guardians filed a declaration of20 intent to provide home-based instruction and the student received home-21 based instruction during the school year before the school year in22 which the student intends to participate in courses or programs offered23 by the institution of higher education. Students receiving home-based24 instruction under chapter 28A.200 RCW and students attending private25 schools approved under chapter 28A.195 RCW shall not be required to26 meet the student learning goals, obtain a certificate of academic27 achievement or a certificate of individual achievement to graduate from28 high school, or to master the essential academic learning requirements.29 However, students are eligible to enroll in courses or programs in30 participating universities only if the board of directors of the31 student's school district has decided to participate in the program.32 Participating institutions of higher education, in consultation with33 school districts, may establish admission standards for these students.34 If the institution of higher education accepts a secondary school pupil35 for enrollment under this section, the institution of higher education36 shall send written notice to the pupil and the pupil's school district

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1 within ten days of acceptance. The notice shall indicate the course 2 and hours of enrollment for that pupil. 3 (2)(a) In lieu of tuition and fees, as defined in RCW 28B.15.020 4 and 28B.15.041((,)): 5 (i) Running start students shall pay to the community or technical 6 college all other mandatory fees as established by each community or 7 technical college and, in addition, the state board for community and 8 technical colleges may authorize a fee of up to ten percent of tuition 9 and fees as defined in RCW 28B.15.020 and 28B.15.041; and10 (ii) All other institutions of higher education operating a running11 start program may charge running start students a fee of up to ten12 percent of tuition and fees as defined in RCW 28B.15.020 and 28B.15.04113 in addition to technology fees.14 (b) The fees charged under this subsection (2) shall be prorated15 based on credit load.16 (3)(a) The institutions of higher education must make available fee17 waivers for low-income running start students. Each institution must18 establish a written policy for the determination of low-income students19 before offering the fee waiver. A student shall be considered low20 income and eligible for a fee waiver upon proof that the student is21 currently qualified to receive free or reduced-price lunch. Acceptable22 documentation of low-income status may also include, but is not limited23 to, documentation that a student has been deemed eligible for free or24 reduced-price lunches in the last five years, or other criteria25 established in the institution's policy.26 (b) Institutions of higher education, in collaboration with27 relevant student associations, shall aim to have students who can28 benefit from fee waivers take advantage of these waivers. Institutions29 shall make every effort to communicate to students and their families30 the benefits of the waivers and provide assistance to students and31 their families on how to apply. Information about waivers shall, to32 the greatest extent possible, be incorporated into financial aid33 counseling, admission information, and individual billing statements.34 Institutions also shall, to the greatest extent possible, use all means35 of communication, including but not limited to web sites, online36 catalogues, admission and registration forms, mass e-mail messaging,37 social media, and outside marketing to ensure that information about

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1 waivers is visible, compelling, and reaches the maximum number of 2 students and families that can benefit. 3 (4) The pupil's school district shall transmit to the institution 4 of higher education an amount per each full-time equivalent college 5 student at statewide uniform rates for vocational and nonvocational 6 students. The superintendent of public instruction shall separately 7 calculate and allocate moneys appropriated for basic education under 8 RCW 28A.150.260 to school districts for purposes of making such 9 payments and for granting school districts seven percent thereof to10 offset program related costs. The calculations and allocations shall11 be based upon the estimated statewide annual average per full-time12 equivalent high school student allocations under RCW 28A.150.260,13 excluding small high school enhancements, and applicable rules adopted14 under chapter 34.05 RCW. The superintendent of public instruction, the15 higher education coordinating board, and the state board for community16 and technical colleges shall consult on the calculation and17 distribution of the funds. The funds received by the institution of18 higher education from the school district shall not be deemed tuition19 or operating fees and may be retained by the institution of higher20 education. A student enrolled under this subsection shall be counted21 for the purpose of meeting enrollment targets in accordance with terms22 and conditions specified in the omnibus appropriations act.23 (5) The state board for community and technical colleges, in24 collaboration with the other institutions of higher education that25 participate in the running start program and the office of the26 superintendent of public instruction, shall identify, assess, and27 report on alternatives for providing ongoing and adequate financial28 support for the program. Such alternatives shall include but are not29 limited to student tuition, increased support from local school30 districts, and reallocation of existing state financial support among31 the community and technical college system to account for differential32 running start enrollment levels and impacts. The state board for33 community and technical colleges shall report the assessment of34 alternatives to the governor and to the appropriate fiscal and policy35 committees of the legislature by September 1, 2010.

36 NEW SECTION. Sec. 11. A new section is added to chapter 28B.1037 RCW to read as follows:

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1 (1) A graduate of a community or technical college in this state 2 who has earned a transferable associate of arts or sciences degree when 3 admitted to a four-year institution of higher education shall have 4 junior standing. A graduate who has earned the direct transfer 5 associate of arts degree will be deemed to have met the lower division 6 general education requirements of the receiving four-year institution 7 of higher education. A graduate who has earned the associate of 8 science transfer degree will be deemed to have met most requirements 9 that prepare the graduate for baccalaureate degree majors in science,10 technology, engineering, and math and will be required to complete only11 such additional lower division, general education courses at the12 receiving four-year institutions of higher education as would have been13 required to complete the direct transfer associate of arts degree.14 (2) A student who has earned the equivalent of ninety quarter15 credit hours and has completed the general education requirements at16 that four-year institution of higher education in Washington when17 admitted to another four-year institution of higher education shall18 have junior standing and shall be deemed to have met the lower division19 general education requirements of the institution to which the student20 transfers.21 (3) The community and technical colleges, jointly with the four-22 year institutions of higher education, must develop a list of academic23 courses that are equivalent to one-year's worth of general education24 credit and that would transfer for that purpose to any other two or25 four-year institution of higher education. If a student completes one-26 year's worth of general education credits, the student may be issued a27 one-year academic completion certificate. This certificate shall be28 accepted at any transferring two or four-year institution of higher29 education.30 (4) Each institution of higher education must develop a minimum of31 one degree within the arts and sciences disciplines that can be32 completed within the equivalent of ninety quarter upper division33 credits by any student who enters an institution of higher education34 with junior status and lower division general education requirements35 completed.36 (5) Each four-year institution of higher education must publish a37 list of recommended courses for each academic major designed to help

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1 students who are planning to transfer design their course of study. 2 Publication of the list of courses must be easily identified and 3 accessible on the institution's web site. 4 (6) The requirements to publish a list of recommended courses for 5 each academic major under this section does not apply if an institution 6 does not require courses or majors to meet specific requirements but 7 generally applies credits earned towards degree requirements.

8 NEW SECTION. Sec. 12. A new section is added to chapter 28B.50 9 RCW to read as follows:10 (1)(a) Community and technical colleges must identify and publish11 in their admissions materials the college level courses that are12 recognized by all four-year institutions of higher education as13 transferable to the four-year institutions of higher education.14 Publication of the list of courses must be easily identified and15 accessible on the college's web site.16 (b) If a four-year institution of higher education does not require17 courses of majors for transfer, the community and technical colleges18 must identify and publish the transfer policy of the institution in19 their admissions materials and make the transfer policy of the20 institution easily identifiable on the college's web site.21 (2) Community and technical colleges must create a list of courses22 that satisfy the basic requirements, distribution requirements, and23 approved electives for:24 (a) A one-year academic completion certificate as provided for25 under section 11 of this act; and26 (b) A transferrable associate of arts or sciences degree as27 provided for under section 11 of this act.28 (3) To the extent possible, each community and technical college29 must develop links between the lists in subsections (1) and (2) of this30 section and its list of courses, and develop methods to encourage31 students to check the lists in subsections (1) and (2) of this section32 when the students are registering for courses.

33 *Sec. 13. RCW 39.29.011 and 2009 c 486 s 7 are each amended to read34 as follows:35 All personal service contracts shall be entered into pursuant to36 competitive solicitation, except for:

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1 (1) Emergency contracts; 2 (2) Sole source contracts; 3 (3) Contract amendments; 4 (4) Contracts between a consultant and an agency of less than 5 twenty thousand dollars. However, contracts of five thousand dollars 6 or greater but less than twenty thousand dollars shall have documented 7 evidence of competition, which must include agency posting of the 8 contract opportunity on the state's common vendor registration and bid 9 notification system. Agencies shall not structure contracts to evade10 these requirements; ((and))11 (5) Contracts between a consultant and an institution of higher12 education of less than one hundred thousand dollars. However,13 contracts of ten thousand dollars or greater but less than one hundred14 thousand dollars shall have documented evidence of competition, which15 must include an institution of higher education's posting of the16 contract opportunity on the state's common vendor registration and bid17 notification system. Institutions of higher education may not18 structure contracts to evade these requirements; and19 (6) Other specific contracts or classes or groups of contracts20 exempted from the competitive solicitation process by the director of21 the office of financial management when it has been determined that a22 competitive solicitation process is not appropriate or cost-effective.

*Sec. 13 was vetoed. See message at end of chapter.

23 *Sec. 14. RCW 43.19.1906 and 2008 c 215 s 5 are each amended to24 read as follows:25 Insofar as practicable, all purchases and sales shall be based on26 competitive bids, and a formal sealed, electronic, or web-based bid27 procedure, subject to RCW 43.19.1911, shall be used as standard28 procedure for all purchases and contracts for purchases and sales29 executed by the state purchasing and material control director and30 under the powers granted by RCW 43.19.190 through 43.19.1939. This31 requirement also applies to purchases and contracts for purchases and32 sales executed by agencies, including educational institutions, under33 delegated authority granted in accordance with provisions of RCW34 43.19.190 or under RCW 28B.10.029. However, formal sealed, electronic,35 or web-based competitive bidding is not necessary for:36 (1) Emergency purchases made pursuant to RCW 43.19.200 if the

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1 sealed bidding procedure would prevent or hinder the emergency from 2 being met appropriately; 3 (2) Purchases not exceeding thirty-five thousand dollars, or 4 subsequent limits as calculated by the office of financial management: 5 PROVIDED, That the state director of general administration shall 6 establish procedures to assure that purchases made by or on behalf of 7 the various state agencies shall not be made so as to avoid the thirty- 8 five thousand dollar bid limitation, or subsequent bid limitations as 9 calculated by the office of financial management: PROVIDED FURTHER,10 That the state purchasing and material control director is authorized11 to reduce the formal sealed bid limits of thirty-five thousand dollars,12 or subsequent limits as calculated by the office of financial13 management, to a lower dollar amount for purchases by individual state14 agencies if considered necessary to maintain full disclosure of15 competitive procurement or otherwise to achieve overall state16 efficiency and economy in purchasing and material control. Quotations17 from three thousand dollars to thirty-five thousand dollars, or18 subsequent limits as calculated by the office of financial management,19 shall be secured from at least three vendors to assure establishment of20 a competitive price and may be obtained by telephone or written21 quotations, or both. The agency shall invite at least one quotation22 each from a certified minority and a certified women-owned vendor who23 shall otherwise qualify to perform such work. Immediately after the24 award is made, the bid quotations obtained shall be recorded and open25 to public inspection and shall be available by telephone inquiry. A26 record of competition for all such purchases from three thousand27 dollars to thirty-five thousand dollars, or subsequent limits as28 calculated by the office of financial management, shall be documented29 for audit purposes. Purchases up to three thousand dollars may be made30 without competitive bids based on buyer experience and knowledge of the31 market in achieving maximum quality at minimum cost;32 (3) Purchases which are clearly and legitimately limited to a33 single source of supply and purchases involving special facilities,34 services, or market conditions, in which instances the purchase price35 may be best established by direct negotiation;36 (4) Purchases of insurance and bonds by the risk management37 division under RCW 43.41.310;

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1 (5) Purchases and contracts for vocational rehabilitation clients 2 of the department of social and health services: PROVIDED, That this 3 exemption is effective only when the state purchasing and material 4 control director, after consultation with the director of the division 5 of vocational rehabilitation and appropriate department of social and 6 health services procurement personnel, declares that such purchases may 7 be best executed through direct negotiation with one or more suppliers 8 in order to expeditiously meet the special needs of the state's 9 vocational rehabilitation clients;10 (6) Purchases by universities for hospital operation or biomedical11 teaching or research purposes and by the state purchasing and material12 control director, as the agent for state hospitals as defined in RCW13 72.23.010, and for health care programs provided in state correctional14 institutions as defined in RCW 72.65.010(3) and veterans' institutions15 as defined in RCW 72.36.010 and 72.36.070, made by participating in16 contracts for materials, supplies, and equipment entered into by17 nonprofit cooperative hospital group purchasing organizations;18 (7) Purchases for resale by institutions of higher education to19 other than public agencies when such purchases are for the express20 purpose of supporting instructional programs and may best be executed21 through direct negotiation with one or more suppliers in order to meet22 the special needs of the institution;23 (8) Purchases by institutions of higher education not exceeding24 ((thirty-five)) one hundred thousand dollars: PROVIDED, That for25 purchases between ((three)) ten thousand dollars and ((thirty-five))26 one hundred thousand dollars quotations shall be secured from at least27 three vendors to assure establishment of a competitive price and may be28 obtained by telephone or written quotations, or both. For purchases29 between ((three)) ten thousand dollars and ((thirty-five)) one hundred30 thousand dollars, each institution of higher education shall invite at31 least one quotation each from a certified minority and a certified32 women-owned vendor who shall otherwise qualify to perform such work.33 A record of competition for all such purchases made from ((three)) ten34 thousand to ((thirty-five)) one hundred thousand dollars shall be35 documented for audit purposes;36 (9) Off-contract purchases of Washington grown food when such food37 is not available from Washington sources through an existing contract.38 However, Washington grown food purchased under this subsection must be

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1 of an equivalent or better quality than similar food available through 2 the contract and be able to be paid from the agency's existing budget. 3 This requirement also applies to purchases and contracts for purchases 4 executed by state agencies, including institutions of higher education, 5 under delegated authority granted in accordance with RCW 43.19.190 or 6 under RCW 28B.10.029; and 7 (10) Negotiation of a contract by the department of transportation, 8 valid until June 30, 2001, with registered tow truck operators to 9 provide roving service patrols in one or more Washington state patrol10 tow zones whereby those registered tow truck operators wishing to11 participate would cooperatively, with the department of transportation,12 develop a demonstration project upon terms and conditions negotiated by13 the parties.14 Beginning on July 1, 1995, and on July 1st of each succeeding odd-15 numbered year, the dollar limits specified in this section shall be16 adjusted as follows: The office of financial management shall17 calculate such limits by adjusting the previous biennium's limits by18 the appropriate federal inflationary index reflecting the rate of19 inflation for the previous biennium. Such amounts shall be rounded to20 the nearest one hundred dollars. However, the three thousand dollar21 figure in subsection((s)) (2) ((and (8))) of this section may not be22 adjusted to exceed five thousand dollars.23 As used in this section, "Washington grown" has the definition in24 RCW 15.64.060.


25 *Sec. 15. RCW 43.88.160 and 2006 c 1 s 6 are each amended to read26 as follows:27 This section sets forth the major fiscal duties and28 responsibilities of officers and agencies of the executive branch. The29 regulations issued by the governor pursuant to this chapter shall30 provide for a comprehensive, orderly basis for fiscal management and31 control, including efficient accounting and reporting therefor, for the32 executive branch of the state government and may include, in addition,33 such requirements as will generally promote more efficient public34 management in the state.35 (1) Governor; director of financial management. The governor,36 through the director of financial management, shall devise and37 supervise a modern and complete accounting system for each agency to

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1 the end that all revenues, expenditures, receipts, disbursements, 2 resources, and obligations of the state shall be properly and 3 systematically accounted for. The accounting system shall include the 4 development of accurate, timely records and reports of all financial 5 affairs of the state. The system shall also provide for central 6 accounts in the office of financial management at the level of detail 7 deemed necessary by the director to perform central financial 8 management. The director of financial management shall adopt and 9 periodically update an accounting procedures manual. Any agency10 maintaining its own accounting and reporting system shall comply with11 the updated accounting procedures manual and the rules of the director12 adopted under this chapter. An agency may receive a waiver from13 complying with this requirement if the waiver is approved by the14 director. Waivers expire at the end of the fiscal biennium for which15 they are granted. The director shall forward notice of waivers granted16 to the appropriate legislative fiscal committees. The director of17 financial management may require such financial, statistical, and other18 reports as the director deems necessary from all agencies covering any19 period.20 (2) Except as provided in chapter 43.88C RCW, the director of21 financial management is responsible for quarterly reporting of primary22 operating budget drivers such as applicable workloads, caseload23 estimates, and appropriate unit cost data. These reports shall be24 transmitted to the legislative fiscal committees or by electronic means25 to the legislative evaluation and accountability program committee.26 Quarterly reports shall include actual monthly data and the variance27 between actual and estimated data to date. The reports shall also28 include estimates of these items for the remainder of the budget29 period.30 (3) The director of financial management shall report at least31 annually to the appropriate legislative committees regarding the status32 of all appropriated capital projects, including transportation33 projects, showing significant cost overruns or underruns. If funds are34 shifted from one project to another, the office of financial management35 shall also reflect this in the annual variance report. Once a project36 is complete, the report shall provide a final summary showing estimated37 start and completion dates of each project phase compared to actual

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1 dates, estimated costs of each project phase compared to actual costs, 2 and whether or not there are any outstanding liabilities or unsettled 3 claims at the time of completion. 4 (4) In addition, the director of financial management, as agent of 5 the governor, shall: 6 (a) Develop and maintain a system of internal controls and internal 7 audits comprising methods and procedures to be adopted by each agency 8 that will safeguard its assets, check the accuracy and reliability of 9 its accounting data, promote operational efficiency, and encourage10 adherence to prescribed managerial policies for accounting and11 financial controls. The system developed by the director shall include12 criteria for determining the scope and comprehensiveness of internal13 controls required by classes of agencies, depending on the level of14 resources at risk.15 Each agency head or authorized designee shall be assigned the16 responsibility and authority for establishing and maintaining internal17 audits following the standards of internal auditing of the institute of18 internal auditors;19 (b) Make surveys and analyses of agencies with the object of20 determining better methods and increased effectiveness in the use of21 manpower and materials; and the director shall authorize expenditures22 for employee training to the end that the state may benefit from23 training facilities made available to state employees;24 (c) Establish policies for allowing the contracting of child care25 services;26 (d) Report to the governor with regard to duplication of effort or27 lack of coordination among agencies;28 (e) Review any pay and classification plans, and changes29 thereunder, developed by any agency for their fiscal impact: PROVIDED,30 That none of the provisions of this subsection shall affect merit31 systems of personnel management now existing or hereafter established32 by statute relating to the fixing of qualifications requirements for33 recruitment, appointment, or promotion of employees of any agency. The34 director shall advise and confer with agencies including appropriate35 standing committees of the legislature as may be designated by the36 speaker of the house and the president of the senate regarding the37 fiscal impact of such plans and may amend or alter the plans, except

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1 that for the following agencies no amendment or alteration of the plans 2 may be made without the approval of the agency concerned: Agencies 3 headed by elective officials; 4 (f) Fix the number and classes of positions or authorized employee 5 years of employment for each agency and during the fiscal period amend 6 the determinations previously fixed by the director except that the 7 director shall not be empowered to fix the number or the classes for 8 the following: Agencies headed by elective officials; 9 (g) Adopt rules to effectuate provisions contained in (a) through10 (f) of this subsection.11 (5) The treasurer shall:12 (a) Receive, keep, and disburse all public funds of the state not13 expressly required by law to be received, kept, and disbursed by some14 other persons: PROVIDED, That this subsection shall not apply to those15 public funds of the institutions of higher learning which are not16 subject to appropriation;17 (b) Receive, disburse, or transfer public funds under the18 treasurer's supervision or custody;19 (c) Keep a correct and current account of all moneys received and20 disbursed by the treasurer, classified by fund or account;21 (d) Coordinate agencies' acceptance and use of credit cards and22 other payment methods, if the agencies have received authorization23 under RCW 43.41.180;24 (e) Perform such other duties as may be required by law or by25 regulations issued pursuant to this law.26 It shall be unlawful for the treasurer to disburse public funds in27 the treasury except upon forms or by alternative means duly prescribed28 by the director of financial management. These forms or alternative29 means shall provide for authentication and certification by the agency30 head or the agency head's designee that the services have been rendered31 or the materials have been furnished; or, in the case of loans or32 grants, that the loans or grants are authorized by law; or, in the case33 of payments for periodic maintenance services to be performed on state34 owned equipment, that a written contract for such periodic maintenance35 services is currently in effect; and the treasurer shall not be liable36 under the treasurer's surety bond for erroneous or improper payments so37 made. When services are lawfully paid for in advance of full38 performance by any private individual or business entity other than

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1 equipment maintenance providers or as provided for by RCW 42.24.035, 2 such individual or entity other than central stores rendering such 3 services shall make a cash deposit or furnish surety bond coverage to 4 the state as shall be fixed in an amount by law, or if not fixed by 5 law, then in such amounts as shall be fixed by the director of the 6 department of general administration but in no case shall such required 7 cash deposit or surety bond be less than an amount which will fully 8 indemnify the state against any and all losses on account of breach of 9 promise to fully perform such services. Except for institutions of10 higher education, no payments shall be made in advance for any11 equipment maintenance services to be performed more than twelve months12 after such payment. Any such bond so furnished shall be conditioned13 that the person, firm or corporation receiving the advance payment will14 apply it toward performance of the contract. The responsibility for15 recovery of erroneous or improper payments made under this section16 shall lie with the agency head or the agency head's designee in17 accordance with regulations issued pursuant to this chapter. Nothing18 in this section shall be construed to permit a public body to advance19 funds to a private service provider pursuant to a grant or loan before20 services have been rendered or material furnished.21 (6) The state auditor shall:22 (a) Report to the legislature the results of current post audits23 that have been made of the financial transactions of each agency; to24 this end the auditor may, in the auditor's discretion, examine the25 books and accounts of any agency, official, or employee charged with26 the receipt, custody, or safekeeping of public funds. Where feasible27 in conducting examinations, the auditor shall utilize data and findings28 from the internal control system prescribed by the office of financial29 management. The current post audit of each agency may include a30 section on recommendations to the legislature as provided in (c) of31 this subsection.32 (b) Give information to the legislature, whenever required, upon33 any subject relating to the financial affairs of the state.34 (c) Make the auditor's official report on or before the thirty-35 first of December which precedes the meeting of the legislature. The36 report shall be for the last complete fiscal period and shall include37 determinations as to whether agencies, in making expenditures, complied38 with the laws of this state. The state auditor is authorized to

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1 perform or participate in performance verifications and performance 2 audits as expressly authorized by the legislature in the omnibus 3 biennial appropriations acts or in the performance audit work plan 4 approved by the joint legislative audit and review committee. The 5 state auditor, upon completing an audit for legal and financial 6 compliance under chapter 43.09 RCW or a performance verification, may 7 report to the joint legislative audit and review committee or other 8 appropriate committees of the legislature, in a manner prescribed by 9 the joint legislative audit and review committee, on facts relating to10 the management or performance of governmental programs where such facts11 are discovered incidental to the legal and financial audit or12 performance verification. The auditor may make such a report to a13 legislative committee only if the auditor has determined that the14 agency has been given an opportunity and has failed to resolve the15 management or performance issues raised by the auditor. If the auditor16 makes a report to a legislative committee, the agency may submit to the17 committee a response to the report. This subsection (6) shall not be18 construed to authorize the auditor to allocate other than de minimis19 resources to performance audits except as expressly authorized in the20 appropriations acts or in the performance audit work plan. The results21 of a performance audit conducted by the state auditor that has been22 requested by the joint legislative audit and review committee must only23 be transmitted to the joint legislative audit and review committee.24 (d) Be empowered to take exception to specific expenditures that25 have been incurred by any agency or to take exception to other26 practices related in any way to the agency's financial transactions and27 to cause such exceptions to be made a matter of public record,28 including disclosure to the agency concerned and to the director of29 financial management. It shall be the duty of the director of30 financial management to cause corrective action to be taken within six31 months, such action to include, as appropriate, the withholding of32 funds as provided in RCW 43.88.110. The director of financial33 management shall annually report by December 31st the status of audit34 resolution to the appropriate committees of the legislature, the state35 auditor, and the attorney general. The director of financial36 management shall include in the audit resolution report actions taken37 as a result of an audit including, but not limited to, types of

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1 personnel actions, costs and types of litigation, and value of recouped 2 goods or services. 3 (e) Promptly report any irregularities to the attorney general. 4 (f) Investigate improper governmental activity under chapter 42.40 5 RCW. 6 (((g))) In addition to the authority given to the state auditor in 7 this subsection (6), the state auditor is authorized to conduct 8 performance audits identified in RCW 43.09.470. Nothing in this 9 subsection (6) shall limit, impede, or restrict the state auditor from10 conducting performance audits identified in RCW 43.09.470.11 (7) The joint legislative audit and review committee may:12 (a) Make post audits of the financial transactions of any agency13 and management surveys and program reviews as provided for in chapter14 44.28 RCW as well as performance audits and program evaluations. To15 this end the joint committee may in its discretion examine the books,16 accounts, and other records of any agency, official, or employee.17 (b) Give information to the legislature or any legislative18 committee whenever required upon any subject relating to the19 performance and management of state agencies.20 (c) Make a report to the legislature which shall include at least21 the following:22 (i) Determinations as to the extent to which agencies in making23 expenditures have complied with the will of the legislature and in this24 connection, may take exception to specific expenditures or financial25 practices of any agencies; and26 (ii) Such plans as it deems expedient for the support of the27 state's credit, for lessening expenditures, for promoting frugality and28 economy in agency affairs, and generally for an improved level of29 fiscal management.


30 *Sec. 16. RCW 43.03.220 and 2011 c 5 s 902 are each amended to read31 as follows:32 (1) Any part-time board, commission, council, committee, or other33 similar group which is established by the executive, legislative, or34 judicial branch to participate in state government and which functions35 primarily in an advisory, coordinating, or planning capacity shall be36 identified as a class one group.

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1 (2) Absent any other provision of law to the contrary, no money 2 beyond the customary reimbursement or allowance for expenses may be 3 paid by or through the state to members of class one groups for 4 attendance at meetings of such groups. 5 (3) Beginning July 1, 2010, through June 30, 2011, no person 6 designated as a member of a class one board, commission, council, 7 committee, or similar group may receive an allowance for subsistence, 8 lodging, or travel expenses if the allowance cost is funded by the 9 state general fund. Exceptions may be granted under section 605,10 chapter 3, Laws of 2010. Class one groups, when feasible, shall use an11 alternative means of conducting a meeting that does not require travel12 while still maximizing member and public participation and may use a13 meeting format that requires members to be physically present at one14 location only when necessary or required by law. Meetings that require15 a member's physical presence at one location must be held in state16 facilities whenever possible. Meetings conducted using private17 facilities must be approved by the director of the office of financial18 management, except for facilities provided free of charge. Meetings of19 class one groups affiliated with institutions of higher education do20 not require such approval.21 (4) Beginning July 1, 2010, through June 30, 2011, class one groups22 that are funded by sources other than the state general fund are23 encouraged to reduce travel, lodging, and other costs associated with24 conducting the business of the group including use of other meeting25 formats that do not require travel.


26 *Sec. 17. RCW 43.03.230 and 2011 c 5 s 903 are each amended to read27 as follows:28 (1) Any agricultural commodity board or commission established29 pursuant to Title 15 or 16 RCW shall be identified as a class two group30 for purposes of compensation.31 (2) Except as otherwise provided in this section, each member of a32 class two group is eligible to receive compensation in an amount not to33 exceed one hundred dollars for each day during which the member attends34 an official meeting of the group or performs statutorily prescribed35 duties approved by the chairperson of the group. A person shall not36 receive compensation for a day of service under this section if the37 person (a) occupies a position, normally regarded as full-time in

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1 nature, in any agency of the federal government, Washington state 2 government, or Washington state local government; and (b) receives any 3 compensation from such government for working that day. 4 (3) Compensation may be paid a member under this section only if it 5 is authorized under the law dealing in particular with the specific 6 group to which the member belongs or dealing in particular with the 7 members of that specific group. 8 (4) Beginning July 1, 2010, through June 30, 2011, no person 9 designated as a member of a class two board, commission, council,10 committee, or similar group may receive an allowance for subsistence,11 lodging, or travel expenses if the allowance cost is funded by the12 state general fund. Exceptions may be granted under section 605,13 chapter 3, Laws of 2010. Class two groups, when feasible, shall use an14 alternative means of conducting a meeting that does not require travel15 while still maximizing member and public participation and may use a16 meeting format that requires members to be physically present at one17 location only when necessary or required by law. Meetings that require18 a member's physical presence at one location must be held in state19 facilities whenever possible. Meetings conducted using private20 facilities must be approved by the director of the office of financial21 management, except for facilities provided free of charge. Meetings of22 class two groups affiliated with institutions of higher education do23 not require such approval.24 (5) Beginning July 1, 2010, through June 30, 2011, class two groups25 that are funded by sources other than the state general fund are26 encouraged to reduce travel, lodging, and other costs associated with27 conducting the business of the group including use of other meeting28 formats that do not require travel.


29 *Sec. 18. RCW 43.03.240 and 2011 c 5 s 904 are each amended to read30 as follows:31 (1) Any part-time, statutory board, commission, council, committee,32 or other similar group which has rule-making authority, performs quasi33 judicial functions, has responsibility for the administration or policy34 direction of a state agency or program, or performs regulatory or35 licensing functions with respect to a specific profession, occupation,36 business, or industry shall be identified as a class three group for37 purposes of compensation.

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1 (2) Except as otherwise provided in this section, each member of a 2 class three group is eligible to receive compensation in an amount not 3 to exceed fifty dollars for each day during which the member attends an 4 official meeting of the group or performs statutorily prescribed duties 5 approved by the chairperson of the group. A person shall not receive 6 compensation for a day of service under this section if the person (a) 7 occupies a position, normally regarded as full-time in nature, in any 8 agency of the federal government, Washington state government, or 9 Washington state local government; and (b) receives any compensation10 from such government for working that day.11 (3) Compensation may be paid a member under this section only if it12 is authorized under the law dealing in particular with the specific13 group to which the member belongs or dealing in particular with the14 members of that specific group.15 (4) Beginning July 1, 2010, through June 30, 2011, no person16 designated as a member of a class three board, commission, council,17 committee, or similar group may receive an allowance for subsistence,18 lodging, or travel expenses if the allowance cost is funded by the19 state general fund. Exceptions may be granted under section 605,20 chapter 3, Laws of 2010. Class three groups, when feasible, shall use21 an alternative means of conducting a meeting that does not require22 travel while still maximizing member and public participation and may23 use a meeting format that requires members to be physically present at24 one location only when necessary or required by law. Meetings that25 require a member's physical presence at one location must be held in26 state facilities whenever possible. Meetings conducted using private27 facilities must be approved by the director of the office of financial28 management, except for facilities provided free of charge. Meetings of29 class three groups affiliated with institutions of higher education do30 not require such approval.31 (5) Beginning July 1, 2010, through June 30, 2011, class three32 groups that are funded by sources other than the state general fund are33 encouraged to reduce travel, lodging, and other costs associated with34 conducting the business of the group including use of other meeting35 formats that do not require travel.


36 *Sec. 19. RCW 43.03.250 and 2011 c 5 s 905 are each amended to read37 as follows:

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1 (1) A part-time, statutory board, commission, council, committee, 2 or other similar group shall be identified as a class four group for 3 purposes of compensation if the group: 4 (a) Has rule-making authority, performs quasi-judicial functions, 5 or has responsibility for the administration or policy direction of a 6 state agency or program; 7 (b) Has duties that are deemed by the legislature to be of 8 overriding sensitivity and importance to the public welfare and the 9 operation of state government; and10 (c) Requires service from its members representing a significant11 demand on their time that is normally in excess of one hundred hours of12 meeting time per year.13 (2) Each member of a class four group is eligible to receive14 compensation in an amount not to exceed one hundred dollars for each15 day during which the member attends an official meeting of the group or16 performs statutorily prescribed duties approved by the chairperson of17 the group. A person shall not receive compensation for a day of18 service under this section if the person (a) occupies a position,19 normally regarded as full-time in nature, in any agency of the federal20 government, Washington state government, or Washington state local21 government; and (b) receives any compensation from such government for22 working that day.23 (3) Compensation may be paid a member under this section only if it24 is authorized under the law dealing in particular with the specific25 group to which the member belongs or dealing in particular with the26 members of that specific group.27 (4) Beginning July 1, 2010, through June 30, 2011, class four28 groups, when feasible, shall use an alternative means of conducting a29 meeting that does not require travel while still maximizing member and30 public participation and may use a meeting format that requires members31 to be physically present at one location only when necessary or32 required by law. Meetings that require a member's physical presence at33 one location must be held in state facilities whenever possible.34 Meetings conducted using private facilities must be approved by the35 director of the office of financial management, except for facilities36 provided free of charge. Meetings of class four groups affiliated with37 institutions of higher education do not require such approval.


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1 *Sec. 20. RCW 43.03.265 and 2011 c 5 s 906 are each amended to read 2 as follows: 3 (1) Any part-time commission that has rule-making authority, 4 performs quasi-judicial functions, has responsibility for the policy 5 direction of a health profession credentialing program, and performs 6 regulatory and licensing functions with respect to a health care 7 profession licensed under Title 18 RCW shall be identified as a class 8 five group for purposes of compensation. 9 (2) Except as otherwise provided in this section, each member of a10 class five group is eligible to receive compensation in an amount not11 to exceed two hundred fifty dollars for each day during which the12 member attends an official meeting of the group or performs statutorily13 prescribed duties approved by the chairperson of the group. A person14 shall not receive compensation for a day of service under this section15 if the person (a) occupies a position, normally regarded as full-time16 in nature, in any agency of the federal government, Washington state17 government, or Washington state local government; and (b) receives any18 compensation from such government for working that day.19 (3) Compensation may be paid a member under this section only if it20 is necessarily incurred in the course of authorized business consistent21 with the responsibilities of the commission established by law.22 (4) Beginning July 1, 2010, through June 30, 2011, no person23 designated as a member of a class five board, commission, council,24 committee, or similar group may receive an allowance for subsistence,25 lodging, or travel expenses if the allowance cost is funded by the26 state general fund. Exceptions may be granted under section 605,27 chapter 3, Laws of 2010. Class five groups, when feasible, shall use28 an alternative means of conducting a meeting that does not require29 travel while still maximizing member and public participation and may30 use a meeting format that requires members to be physically present at31 one location only when necessary or required by law. Meetings that32 require a member's physical presence at one location must be held in33 state facilities whenever possible. Meetings conducted using private34 facilities must be approved by the director of the office of financial35 management, except for facilities provided free of charge. Meetings of36 class five groups affiliated with institutions of higher education do37 not require such approval.

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1 (5) Beginning July 1, 2010, through June 30, 2011, class five 2 groups that are funded by sources other than the state general fund are 3 encouraged to reduce travel, lodging, and other costs associated with 4 conducting the business of the group including use of other meeting 5 formats that do not require travel.


6 *Sec. 21. 2010 c 3 s 602 (uncodified) is amended to read as 7 follows: 8 (1) From March 17, 2010, until July 1, 2011, state agencies of the 9 legislative, executive, and judicial branches shall not enter into any10 contracts or other agreements entered into for the acquisition of11 personal services not related to an emergency or other catastrophic12 event that requires government action to protect life or public safety.13 (2) This section does not apply to personal services contracts or14 other agreements for the acquisition of personal services where the15 costs are funded exclusively from private or federal grants, where the16 costs are for tax and fee collection, where the costs are for revenue17 generation and auditing activities, where the costs are for the review18 and research conducted by the joint transportation committee pursuant19 to RCW 44.04.300, where the costs are necessary to receive or maintain20 federal funds by the state, or((, in)) to institutions of higher21 education((, where the costs are not funded from state funds or22 tuition)). This section also does not apply where costs are related to23 hearing officers, where costs are related to real estate appraisals or24 habitat assessments, where costs are related to carrying out a court25 order, or where costs are related to information technology contracts26 related to an information services board approved information27 technology project, or where costs are related to judicial information28 system technology projects.29 (3) Exceptions to this section may be granted under section 605,30 chapter 3, Laws of 2010.


31 *Sec. 22. 2010 c 3 s 603 (uncodified) is amended to read as32 follows:33 (1) From March 17, 2010, until July 1, 2011, state agencies of the34 legislative, executive, and judicial branches shall not enter into any35 contracts or other agreements for the acquisition of any item of

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1 equipment the cost of which exceeds five thousand dollars and is not 2 related to an emergency or other catastrophic event that requires 3 government action to protect life or public safety. 4 (2) This section does not apply to the unemployment insurance 5 program of the employment security department, to costs that are for 6 tax and fee collection, for revenue generation and audit activities, or 7 for receiving or maintaining federal funds by the state, or((, in)) to 8 institutions of higher education((, to costs not funded from state 9 funds or tuition)). This section also does not apply to costs that are10 funded exclusively from private or federal grants, or for equipment11 necessary to complete a project funded in the omnibus capital or12 transportation appropriation acts, or the operational divisions of the13 department of information services, or cost related to the14 continuation, renewal, or establishment of maintenance for existing15 computer software licensing and existing computer hardware, or for16 costs related to the judicial information system.17 (3) Exceptions to this section may be granted under section 605,18 chapter 3, Laws of 2010.


19 *Sec. 23. 2010 c 3 s 604 (uncodified) is amended to read as20 follows:21 (1) State agencies of the legislative, executive, and judicial22 branches shall not make expenditures for the cost or reimbursement of23 out-of-state travel or out-of-state training by state employees where24 the travel or training is not related to an emergency or other25 catastrophic event that requires government action to protect life or26 public safety, or direct service delivery, and the travel or training27 occurs after March 17, 2010, and before July 1, 2011.28 (2) This section does not apply to travel expenditures when the29 costs are funded exclusively from private or federal grants. This30 section does not apply to the unemployment insurance program of the31 employment security department, to costs that are for tax and fee32 collection, for revenue generation and audit activities, or for33 receiving or maintaining federal funds by the state, or((, in)) to34 institutions of higher education((, to costs not funded from state35 funds or tuition)). This section also does not apply to costs related36 to carrying out a court order or to costs to travel by air into37 Washington state from any airport located in a contiguous state of

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1 which the largest city is part of a metropolitan statistical area with 2 a city located in Washington state, or to motor vehicle and parking 3 costs for single day travel to a contiguous state or British Columbia, 4 Canada. 5 (3) Exceptions to this section may be granted under section 605, 6 chapter 3, Laws of 2010.


7 *Sec. 24. 2010 1st sp.s. c 37 s 901 (uncodified) is amended to read 8 as follows: 9 (1) From May 4, 2010, until July 1, 2011, state agencies of the10 legislative, executive, and judicial branches shall not establish new11 staff positions or fill vacant existing staff positions except as12 specifically authorized by this section.13 (2) The following activities of state agencies are exempt from14 subsection (1) of this section:15 (a) Direct custody, supervision, and patient care in corrections,16 juvenile rehabilitation, institutional care of veterans, the mentally17 ill, developmentally disabled, state hospitals, the special commitment18 center, and the schools for the blind and the deaf;19 (b) Direct protective services to children and other vulnerable20 populations in the department of social and health services;21 (c) Washington state patrol investigative services and field22 enforcement;23 (d) Hazardous materials response and emergency cleanup;24 (e) Emergency public health and patient safety response and the25 public health laboratory;26 (f) Military operations and emergency management within the27 military department;28 (g) Firefighting;29 (h) Enforcement officers in the department of fish and wildlife,30 the liquor control board, the gambling commission, and the department31 of natural resources;32 (i) Park rangers at the parks and recreation commission;33 (j) Seasonal employment by natural resources agencies to the extent34 that employment levels do not exceed the prior fiscal year;35 (k) Seasonal employment in the department of transportation36 maintenance programs to the extent that employment levels do not exceed37 the prior fiscal year;

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1 (l) Employees hired on a seasonal basis by the department of 2 agriculture for inspection and certification of agricultural products 3 and for insect detection; 4 (m) Activities directly related to tax and fee collection, revenue 5 generation, auditing, and recovery; 6 (n) In institutions of higher education, ((any positions directly 7 related to academic programs, as well as positions not funded from 8 state funds or tuition, positions that are filled by enrolled students 9 at their own institution as student workers, positions in campus police10 and security, positions related to emergency management and response,11 and positions related to student health care and counseling)) all12 positions;13 (o) Operations of the state lottery and liquor control board14 business enterprises;15 (p) The unemployment insurance program of the employment security16 department; and17 (q) Activities that are necessary to receive or maintain federal18 funds by the state.19 (3) The exemptions specified in subsection (2) of this section do20 not require the establishment of new staff positions or the filling of21 vacant staff positions in the activities specified.22 (4) Exceptions to this section may be granted under section 60523 ((of this act)), chapter 3, Laws of 2010.24 (5) Also exempted from this section are positions related to25 facility realignments in the department of corrections, positions26 related to the transfer of programs between state agencies assumed in27 ((this act)) chapter 3, Laws of 2010, and disability determination28 staff funded solely by federal funds.


29 *Sec. 25. 2010 c 1 s 8 (uncodified) is amended to read as follows:30 (1) Notwithstanding sections 1 through 5, chapter 1, Laws of 2010,31 institutions of higher education may grant a wage or salary increase32 for additional academic responsibilities during the summer quarter if33 the following conditions are met:34 (a) The salary increase can be paid within existing resources; and35 (b) The salary increase will not adversely impact the provision of36 client services.

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1 (2) Notwithstanding sections 1 through 5, chapter 1, Laws of 2010, 2 and provided that any increase is not funded from state funds, 3 institutions of higher education may grant a wage or salary increase to 4 critical academic personnel as needed for retention purposes where the 5 loss of such personnel would be likely to result in a loss of grant or 6 other funding. 7 (3) Any institution granting a wage or salary increase under this 8 section from February 15, 2010, through June 30, 2011, shall submit a 9 report to the fiscal committees of the legislature no later than July10 31, 2011, detailing the positions for which salary increases were11 granted, the size of the increases, and the reasons for giving the12 increases.


13 NEW SECTION. Sec. 26. The following acts or parts of acts are14 each repealed:15 (1) RCW 28B.10.920 (Performance agreements--Generally) and 2008 c16 160 s 2;17 (2) RCW 28B.10.921 (Performance agreements--Contents) and 2008 c18 160 s 3; and19 (3) RCW 28B.10.922 (Performance agreements--State committee--20 Development of final proposals--Implementation--Updates) and 2008 c 16021 s 4.

22 NEW SECTION. Sec. 27. The office of financial management shall23 work with the appropriate state agencies as determined by the office of24 financial management, and the council of presidents to convene an25 interagency work group to develop and implement improved administration26 and management practices that enhance the efficiency and effectiveness27 of operations throughout higher education campuses. The council of28 presidents shall appoint a lead higher education institution to provide29 administrative support to the work group within that institution's30 current resources. The work group shall report to the legislature by31 November 15, 2012, and November 15, 2013, on its progress, anticipated32 outcomes, policy recommendations, and performance measures for33 demonstrating achievement of improved efficiencies and effectiveness.

34 NEW SECTION. Sec. 28. A new section is added to chapter 28B.7635 RCW to read as follows:

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1 (1) The board, the state board for community and technical 2 colleges, the council of presidents, the four-year institutions of 3 higher education, the private independent higher education 4 institutions, and the private career schools shall collaborate to carry 5 out the following goals: 6 (a) Increase the number of students who receive academic credit for 7 prior learning and the number of students who receive credit for prior 8 learning that counts towards their major or towards earning their 9 degree, certificate, or credential, while ensuring that credit is10 awarded only for high quality, course-level competencies;11 (b) Increase the number and type of academic credits accepted for12 prior learning in institutions of higher education, while ensuring that13 credit is awarded only for high quality, course-level competencies;14 (c) Develop transparent policies and practices in awarding academic15 credit for prior learning;16 (d) Improve prior learning assessment practices across the17 institutions of higher education;18 (e) Create tools to develop faculty and staff knowledge and19 expertise in awarding credit for prior learning and to share exemplary20 policies and practices among institutions of higher education;21 (f) Develop articulation agreements when patterns of credit for22 prior learning are identified for particular programs and pathways; and23 (g) Develop outcome measures to track progress on the goals24 outlined in this section.25 (2) The board shall convene the academic credit for prior learning26 work group.27 (a) The work group must include the following members:28 (i) One representative from the higher education coordinating29 board;30 (ii) One representative from the state board for community and31 technical colleges;32 (iii) One representative from the council of presidents;33 (iv) Two representatives each from faculty from two and four-year34 institutions of higher education;35 (v) Two representatives from private career schools;36 (vi) Two representatives from business; and37 (vii) Two representatives from labor.

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1 (b) The purpose of the work group is to coordinate and implement 2 the goals in subsection (1) of this section. 3 (3) The board shall report progress on the goals and outcome 4 measures annually by December 31st. 5 (4) For the purposes of this section, "prior learning" means the 6 knowledge and skills gained through work and life experience; through 7 military training and experience; and through formal and informal 8 education and training from in-state and out-of-state institutions 9 including foreign institutions.

10 NEW SECTION. Sec. 29. (1) The legislature finds that the methods11 of providing funds to four-year public institutions of higher education12 are based upon factors such as prior years' budget provisos and13 inaccurate assumptions about the number of full-time equivalent14 enrollments. The bases for these funding assumptions have grown15 disconnected to legislative expectations and lack transparency and16 accountability.17 (2) A joint select legislative task force on the baccalaureate18 funding formula is established. The task force shall consist of the19 following members:20 (a) Two members from each caucus of the senate appointed by the21 president of the senate, two of the members must be members of the ways22 and means committee and two must be members of the higher education and23 workforce development committee; and24 (b) Two members from each caucus of the house of representatives25 appointed by the speaker of the house of representatives, two of the26 members must be members of the ways and means committee and two must be27 members of the higher education committee.28 (3) The task force shall:29 (a) Review statutes and budget provisos which govern public30 institutions offering baccalaureate degrees;31 (b) Specify the range of public interests and outcomes which are32 served by public expenditures for higher education services;33 (c) Review the basis for the state funding of public institutions34 offering baccalaureate degrees; and35 (d) Prepare and approve a recommended state operating budget method36 which offers greater efficacy, transparency, and accountability for37 baccalaureate institutions which receive public funds.

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1 (4) The task force shall use legislative facilities, and staff 2 support shall be provided by senate committee services and the house 3 office of program research. The meetings of the task force shall be 4 planned for times which coincide with regular meetings of legislative 5 committees to the maximum extent possible. 6 (5) Members of the task force shall not be reimbursed for travel 7 expenses. 8 (6) The task force shall report its findings and recommendations to 9 the governor and appropriate committees of the legislature by January10 16, 2012.11 (7) This section expires June 30, 2012.

12 NEW SECTION. Sec. 30. This act may be known and cited as the13 higher education opportunity act.

14 NEW SECTION. Sec. 31. A new section is added to chapter 44.28 RCW15 to read as follows:16 (1) During calendar year 2018, the joint committee shall complete17 a systemic performance audit of the tuition-setting authority in RCW18 28B.15.067 granted to the governing boards of the state universities,19 regional universities, and The Evergreen State College. The audit must20 include a separate analysis of both the authority granted in RCW21 28B.15.067(3) and the authority in RCW 28B.15.067(4). The purpose of22 the audit is to evaluate the impact of institutional tuition-setting23 authority on student access, affordability, and institutional quality.24 (2) The audit must include an evaluation of the following outcomes25 for each four-year institution of higher education:26 (a) Changes in undergraduate enrollment, retention, and graduation27 by race and ethnicity, gender, state and county of origin, age, and28 socioeconomic status;29 (b) The impact on student transferability, particularly from30 Washington community and technical colleges;31 (c) Changes in time and credits to degree;32 (d) Changes in the number and availability of online programs and33 undergraduate enrollments in the programs;34 (e) Changes in enrollments in the running start and other dual35 enrollment programs;

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1 (f) Impacts on funding levels for state student financial aid 2 programs; 3 (g) Any changes in the percent of students who apply for student 4 financial aid using the free application for federal student aid 5 (FAFSA); 6 (h) Any changes in the percent of students who apply for available 7 tax credits; 8 (i) Information on the use of building fee revenue by fiscal or 9 academic year; and10 (j) Undergraduate tuition and fee rates compared to undergraduate11 tuition and fee rates at similar institutions in the global challenge12 states.13 (3) The audit must include recommendations on whether to continue14 tuition-setting authority beyond the 2018-19 academic year.15 (4) In conducting the audit, the auditor shall solicit input from16 key higher education stakeholders, including but not limited to17 students and their families, faculty, and staff. To the maximum extent18 possible, data for the University of Washington and Washington State19 University shall be disaggregated by branch campus.20 (5) The auditor shall report findings and recommendations to the21 appropriate committees of the legislature by December 15, 2018.22 (6) This section expires December 31, 2018.

23 NEW SECTION. Sec. 32. Sections 21 through 26 of this act are24 necessary for the immediate preservation of the public peace, health,25 or safety, or support of the state government and its existing public26 institutions, and take effect immediately.

27 NEW SECTION. Sec. 33. The higher education coordinating board,28 the state board for community and technical colleges, and the council29 of presidents shall convene a work group, with representatives from30 higher education institutions, including faculty representatives, to31 develop a plan for creating common course numbering for all common32 lower division courses at all institutions of higher education. The33 plan shall include, but not be limited to the following: (1)34 Identification of key issues and barriers to implementing common course35 numbering; (2) cost estimates related to implementation of common36 course numbering; (3) faculty and staff time required for development

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1 and maintenance of common course numbering; (4) a definition of common 2 courses; and (5) an implementation timeline. The plan shall be 3 delivered to the higher education committees of the legislature and the 4 governor by December 1, 2011.

Passed by the House May 9, 2011.Passed by the Senate May 10, 2011.Approved by the Governor June 6, 2011, with the exception of

certain items that were vetoed.Filed in Office of Secretary of State June 7, 2011.Note: Governor's explanation of partial veto is as follows:

"I am returning herewith, without my approval as to Sections 13through 25, Engrossed Second Substitute House Bill 1795 entitled:

"AN ACT Relating to the higher education opportunity act."Sections 13 and 14 exempt higher education from the requirements ofcompetitive solicitation for personal services contracts and otherpurchases that are less than $100,000. Current law requirescompetitive solicitation for personal service contract greater than$20,000 and for other purchases greater than $35,000. Section 15exempts higher education from the requirement that no payments may bemade in advance for equipment maintenance services to be performed inexcess of one year. Other legislation requires a study and theestablishment of a policy regarding these practices for all of stategovernment, including higher education institutions.Sections 16 through 24 exempt higher education from various spendingfreezes, such as hiring, personal service contracts, equipment, out ofstate travel and training, and board member travel allowances thatwere imposed during the 2009-2011 biennium. These freezes expire onJune 30, 2011. Due to the length of the regular legislative sessionand special session, sections 15, 16, 17, 18, 19 and 20 have nooperative effect because the restrictions expire before the law takeseffect.Section 25 would exempt, through June 30, 2011, higher educationinstitutions from prohibitions on wage and salary increases grantedwith non-state funds. These prohibitions on wage and salaryincreases are reinstated for the 2011-13 biennium in SB 5860 for allof state government. In addition, the underlying statute alreadyprovides an exemption for higher education to the wage and salaryfreeze if increases are needed for recruitment and retention purposes.For these reason, I am vetoing Sections 13, 14, 15, 16, 17, 18, 19,20, 21, 22, 23, 24 and 25 of Engrossed Second Substitute House Bill1795. Higher education institutions are still prohibited fromgranting wage and salary increases using tuition funding for the 2011-13 biennium, unless increases are necessary for recruitment andretention.For these reasons, I have vetoed Sections 13 through 25 of EngrossedSecond Substitute House Bill 1795.With the exception of Sections 13 through 25, Engrossed SecondSubstitute House Bill 1795 is approved."

p. 49 E2SHB 1795.SL

Second Annual Report - Council of Presidents

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Transcript of Second Annual Report - Council of Presidents