HOUSE BILL REPORT
HB 1001
BYRepresentatives Ebersole, Heavey, Holland, Jacobsen, Jesernig and Prince
Establishing maintenance match to be provided by state to maintain modern laboratory equipment donated to state universities.
House Committe on Higher Education
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (9)
Signed by Representatives Jacobsen, Chair; Heavey, Vice Chair; Barnes, Basich, Jesernig, Nelson, Prince, K. Wilson and Wineberry.
Minority Report: Do not pass. (4)
Signed by Representatives Allen, Miller, Silver and Unsoeld.
House Staff:Susan Hosch (786-7120)
AS REPORTED BY COMMITTEE ON HIGHER EDUCATION MARCH 4, 1987
BACKGROUND:
Modern laboratory equipment is needed for research and instruction in many academic disciplines, but such equipment is essential in scientific and engineering fields. State universities and colleges have been offered donations of state- of-the-art equipment in recent years, but administrators insist that funds for maintaining and operating this equipment have been lacking. Institutions report that in some cases donated equipment has never been installed because such funds were not available.
Some colleges and universities have explored the possibility of creating a surcharge or special fee on students using laboratory equipment, such as computers, as a way of funding the maintenance and operation of this kind of equipment.
SUMMARY:
SUBSTITUTE BILL: The donation of modern laboratory equipment can help solve a shortage of high-quality laboratory equipment at the research universities.
Modern laboratory equipment is defined as equipment which has at least one-half its useful life left at the time of donation, and is comparable to equipment currently used in private industry, government laboratories or nonprofit organizations. Technology-related fields mean the fields of engineering; the physical, biological, or computer sciences; or other fields established, by rule, by the Higher Education Coordinating Board.
After issuing a needs statement and accepting a donation of modern laboratory equipment useful in one or more technology- related fields, the two research universities shall have the fair market value of the equipment assessed either by consulting a qualified independent expert, or by consulting current catalogs or price lists. The universities will then report the value of the equipment to the Department of Trade and Economic Development, along with any other relevant information deemed necessary by the department.
After receiving a report on donated equipment from a research university, the department may distribute to the university an amount equal to the fair market value of the donated equipment, if appropriated funds are available. The funds may be used for the maintenance and operation of the equipment.
Modern laboratory equipment useful in one or more technology-related fields, each as defined within the bill, donated to the University of Washington or Washington State University, is exempt from use taxes.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The Higher Education Coordinating Board may expand, by rule, the definition of technology-related fields; the research universities must issue a statement of need before donated equipment is eligible for matching funds; the department is given discretion in whether to allocate matching funds; and the matching funds may be used only for maintaining and operating donated equipment. In addition, modern laboratory equipment in technology-related fields donated to the two research universities, is exempt from use taxes.
Fiscal Note: Requested February 20, 1987.
House Committee ‑ Testified For: Reid C. Miller, Washington State University; J. Ray Bowen, University of Washington; Bob Nilan, Washington State University; and Gary Ball, John Fluke Manufacturing.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: Currently, in some areas, the research universities are training students and conducting research with equipment that is at least 20 years old. Consequently, in many teaching and research laboratories, students do not have hands on experience with the modern equipment they will be expected to use when they move into jobs in the scientific or engineering fields. Because resources for maintaining and operating donated equipment are lacking, and because universities must pay the state's use tax on donated equipment, institutions are either turning down donations, or giving the equipment minimal use. This bill will advance economic development, help restore industrial competitiveness, and promote additional partnerships between research universities and businesses.
House Committee - Testimony Against: None Presented.