HOUSE BILL REPORT

HB 1490

BYRepresentatives Heavey, Barnes, Jacobsen, Silver, Unsoeld, Jesernig, Fox, Miller, Prince, K. Wilson, Wineberry, Crane, J. Williams, Basich, P. King, May, Nealey, Rasmussen and Hine

Encouraging the donation of modern equipment to institutions of higher education.

House Committe on Higher Education

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives Jacobsen, Chair; Heavy, Vice Chair; Barnes, Basich, Fox, Jesernig, Miller, Nelson, Prince, Unsoeld and K. Wilson.

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION JANUARY 26, 1988

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.

The 1987-89 biennial budget included more than $74,000,000 in the institutions' current service level budget and $3,012,000 in enhancements for the acquisition and maintenance of equipment.

SUMMARY:

SUBSTITUTE BILL: The donation of modern equipment can help solve a shortage of high quality equipment at the state's colleges and universities.

Modern equipment is defined as equipment that is useful in postsecondary and graduate research or instruction, has at least one-half of its useful life left at the time of donation, and is comparable to state-of-the-art equipment or equipment currently used in private industry, government laboratories, or nonprofit organizations.

After issuing a needs statement and accepting a donation of modern equipment, state colleges and universities shall have the fair market value of the donated equipment assessed either by consulting a qualified independent expert, or by consulting current catalogs or price lists available to the general public.  The institutions will then report the value of the equipment to the Higher Education Coordinating Board, along with any other relevant information deemed necessary by the Board.

After receiving a report on donated equipment from a state college or university, the Board may distribute to the institution an amount up to the fair market value of the donated equipment, if appropriated funds are available.  The funds may be used for initial installation, maintenance, operation, and for training in the use of the equipment.  The funds may also be used to purchase software or new equipment that will optimize the use of the donated equipment.

Any institution requesting these funds must provide a report detailing why the funds are needed to the Board.  If funds are not available, the institution may cancel and return the donation.

The Higher Education Coordinating Board will adopt rules and guidelines for the program.  These may include an allocation system based on factors such as the amount of funding available, and the needs of special programs.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The use tax exemption is removed; funds may be used for the initial installation, training, and the purchase of software or auxiliary new equipment; a report detailing the need for the funds is required from participating institutions; institutions which do not receive these funds may return the donated equipment; and price lists used to verify the value of the donated equipment must be available to the general public.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Barbara Kommer, American Electronics Association; Reid Miller, Washington State University; Ken Spitzer, Washington State University; Mike Beehler, South Puget Sound Community College; Ron Crossland, State Board for Community College Education; Greg Zick, University of Washington.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Maintaining an inventory of modern equipment has been a constant challenge for the state's colleges and universities.  Much of the equipment currently used for instruction is outdated or obsolete. Industry is donating needed modern equipment, but funds for installing and operating that equipment are sometimes lacking.  The matching fund created in this legislation helps the state leverage its education dollars by matching with cash the value of equipment donated to colleges and universities. The fund will make it possible to optimize the use of equipment critical to high quality instruction; equipment that the state could not otherwise afford to purchase and maintain.

House Committee - Testimony Against:      None Presented.