This bill amends and adds multiple provisions in Washington law governing state capital project procedures, budget documents, and financial oversight. It modifies RCW 39.10.300 to expand and clarify use of the design-build procurement procedure (including progressive design-build), allowing design-build for public works over $2,000,000 under specified conditions, permitting design-build regardless of cost for parking garages, preengineered metal buildings, certain portable facilities, and up to ten prefabricated modular buildings per site, and generally limiting procurement of operations and maintenance (O&M) services via design-build to three years unless approved as a utility or demonstration project. It requires state agencies proposing design-build-operate-maintain projects to separate O&M costs from capital budget requests, allows Washington State University to conduct design-build demonstration projects under $2,000,000 with biennial reporting, and subjects alternative works procedures to OFM allotment rules. The bill also amends RCW 43.88.030 and adds new sections to chapter 43.88 RCW to expand capital budget document content and capital planning requirements, impose long‑range facilities planning and multi‑biennium capital plans, require FTE staffing and detailed component and phase cost reporting for major projects, and require strategic plans to reduce maintenance and repair backlogs. It sets definitions and thresholds for major capital projects ($4,000,000 for institutions of higher education and $2,000,000 for others) and for minor works projects, limits uses of minor works appropriations, caps administrative fees, and requires OFM approval of predesigns and OFM approval before allotment for projects with total anticipated cost over $10,000,000. The bill establishes monitoring and reporting duties for OFM and the director of financial management (including twice‑annual progress reports on projects over $10,000,000), tighter transfer rules for surplus capital funds, timelines and limits on reappropriations (contracts not executed within four years or unspent appropriations after six years are generally not intended to be reappropriated), and enhanced OFM oversight, internal audit, and quarterly reporting requirements. The measure also revises financial administration duties and controls: it specifies advance payment and surety requirements, assigns responsibilities for recovery of erroneous payments to agency heads, clarifies state auditor duties and limits on performance audits, requires the director to pursue corrective action on auditor exceptions and report annually on audit resolution, and prescribes treasurer responsibilities for handling public funds. It amends higher education planning duties (RCW 28B.77.070) to require the council to set systemwide budget priorities and timing for capital and operating recommendations and to produce a single prioritized capital project list for four‑year institutions with defined ranking rules. The act repeals RCW 43.88D.010 and lists additional RCW sections to be amended or added beyond the excerpts provided. Some provisions and cross-references are missing or incomplete in the provided text: the identities of certain committees and “the board” referenced for reports and approvals are not specified here, several amended or added RCW sections and the full text of new sections are not included, and portions of the predesign, minor works, and capital budget schedules are cut off or partially quoted, so full legislative detail and some definitional clarity cannot be confirmed from these excerpts alone.

If enacted, the bill makes it easier for public agencies and colleges to use design‑build delivery in more situations (including progressive design‑build for projects over $2 million that meet specified conditions, and for parking garages, preengineered metal buildings, portable facilities, and up to ten prefabricated modular buildings per site regardless of cost), while also limiting long operations-and‑maintenance contracts tied to design‑build to three years unless a special approval applies. Agencies proposing design‑build‑operate‑maintain projects must show construction and O&M costs separately and follow OFM capital budget rules, and Washington State University gets explicit permission to run small design‑build demonstration projects under $2 million and report on outreach and participation efforts. In practice public bodies and higher education institutions will have more procurement options but also new reporting duties and constraints on how long they can bundle operations into capital deals. The bill increases OFM’s control and reporting requirements for capital work: agencies must provide multi‑biennium plans, list staff FTEs on capital projects, submit life‑cycle and predesign work for projects over $10 million before allotment, and OFM must monitor and approve allotments and can transfer leftover capital funds between projects with notice. Major projects face stricter predesign, cost‑breakdown and reporting demands (for projects over $5 million and especially over $10 million), and grant or community capital appropriations risk losing reappropriation if contracts aren’t executed within four years or funds aren’t spent within six years. These changes likely raise upfront planning and compliance costs for agencies, increase the risk that projects are paused if OFM approval or required predesigns are not completed, and create tighter timelines for using capital grants; several cross‑references and committee/board names are not specified in the provided text, so some implementation details remain unclear.