H-1397              _______________________________________________

                                                    HOUSE BILL NO. 781

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Jacobsen, Prince, Niemi, Allen, D. Nelson, Appelwick, J. Williams, Sommers, Tanner, P. King and Wineberry

Read first time 2/8/85 and referred to Committee on Higher Education.

AN ACT Relating to higher education; adding new sections to chapter 28B.10 RCW; and making an appropriation.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 28B.10 RCW to read as follows:

          The legislature recognizes that the state four-year institutions of higher education would be strengthened by the establishment of a Washington distinguished professorship program.  It is therefore the intent of the legislature to establish the Washington distinguished professorship trust fund to provide the opportunity to the state four-year institutions of higher education to receive and match challenge grants to create endowments for selected distinguished scholars to occupy chairs within those institutions.  Those institutions shall solicit and receive gifts from private sources to be matched by funds from the Washington distinguished professorship trust fund.  When fifty percent of the funds necessary to establish a professorship have been contributed from private sources, the institution may apply for a transfer of the balance from the Washington distinguished professorship trust fund to establish a professorship.  The institutions shall have the responsibility for maintaining and investing the endowment and expending the income to support the professorship.

NEW SECTION. Sec. 2.  A new section is added to chapter 28B.10 RCW to read as follows:

          There is established the Washington distinguished professorship trust fund for professorship challenge grants to be administered by the state treasurer.  The legislature shall transfer to the trust fund a sum of ten million dollars from the general fund.  All funds deposited into the trust fund shall be invested by the state treasurer.  Interest income accruing to that portion of the trust fund not matched shall increase the total funds available for challenge grants.

NEW SECTION. Sec. 3.  A new section is added to chapter 28B.10 RCW to read as follows:

          All state four-year institutions of higher education shall be eligible for matching trust funds.  The amount transferred to the trust shall be allocated by the state treasurer to each institution on the basis of one two hundred fifty thousand dollar grant for each two hundred fifty thousand dollars raised from private sources.  Matching funds shall come from contributions made after July 1, 1985, and pledged for the purpose of sections 1 through 5 of this act.  To be eligible, the contributions must be in excess of the total average annual level of contributions made to the institution in the three fiscal years before July 1, 1985.  Each institution shall establish an endowment for each professorship created.  When private funds have been contributed or pledged in the amount of two hundred fifty thousand dollars, the institution may apply for matching funds from the Washington distinguished professorship trust fund.  Pledged donations must be in writing with the full balance of two hundred fifty thousand dollars to be deposited in the endowment within five years.  No funds from the Washington distinguished professorship trust fund may be transferred until the full two hundred fifty thousand dollars has been deposited in the endowment.

NEW SECTION. Sec. 4.  A new section is added to chapter 28B.10 RCW to read as follows:

          The governing board or its designees shall be responsible for soliciting and receiving gifts to be used as matching funds.  Each state four-year institution of higher education shall have the responsibility for the maintenance and investment of the endowed funds and for the administration of the program.  Each institution shall include in a biennial report to the legislature information concerning collection and investment of matching gifts and the establishment of professorships.

NEW SECTION. Sec. 5.  A new section is added to chapter 28B.10 RCW to read as follows:

          When the sum of the challenge grant and matching funds reaches five hundred thousand dollars, the president of the state four-year institution of higher education may recommend to the board of regents or board of trustees, for its approval, the establishment of a  professorship to supplement the salary of existing faculty positions.  The professorship, which is then the property of the institution, may be named in honor of a donor, benefactor, or honoree of the institution, at the option of the institution.  The proceeds of the endowment may be used to supplement the salary and benefits of the holders of the professorship and of those individuals directly associated with the holder's scholarly work and for other expenses directly related to the holder's scholarly work.

NEW SECTION. Sec. 6.     The sum of ten million dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1987, from the general fund to the Washington distinguished professorship trust fund for the purposes of section 2 of this act.