HOUSE BILL REPORT

SSB 6602

BYSenate Committee on Higher Education (originally sponsored by Senators Saling, Gaspard, Zimmerman, McMullen, Bailey, Rinehart, Patterson, Kiskaddon, Bender, Smith, Anderson, Smitherman, Cantu, DeJarnatt and Garrett)

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

House Committe on Higher Education

Majority Report:  Do pass.  (12)

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

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION FEBRUARY 17, 1988

BACKGROUND:

Modern laboratory equipment is essential in many academic disciplines, both for instruction and for conducting research at institutions of higher education.  State universities and colleges have been offered donations of state-of-the-art equipment in recent years.  However, the institutions have reported that the maintenance and operation of this equipment has been restricted by a lack of funds for that purpose.  Institutions report that in some cases donated equipment has never been installed because such funds were not available.  There have even been cases when institutions have had to turn down donations of equipment because funds to maintain, operate or train individuals to operate the equipment have not been available.

Public colleges and universities have explored different means of rectifying this difficulty including the establishment of a surcharge or special fee on students using laboratory equipment.  These institutions also have proposed programs to encourage the donation of equipment by providing for state matching funds to be used to operate and maintain donated 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:

A program is established to encourage the donation of modern equipment to institutions of higher education.  The Higher Education Coordinating Board is authorized to distribute, if funds are available, to public institutions of higher education which accept a donation of modern equipment, an amount up to the fair market value of that donated equipment.  The funds received from the Higher Education Coordinating Board may be used for the initial installation, maintenance, operation, and for training in the use of the equipment.  The funds may also be used to purchase software and new equipment which will optimize the use of the donated equipment.

In order to be eligible to receive such funds, an institution of higher education must accept the donated equipment and submit a needs statement to the Higher Education Coordinating Board.  The institution must also have the fair market value of the equipment assessed either by a qualified independent expert, or by consulting current catalogs or price lists available to the general public.  The institutions must report the value of the donated equipment to the Board along with any other information which the Board deems necessary.  If funding is not available through this program, the institution is granted the authority to cancel and return the donation.

Modern equipment is defined as equipment which is useful in postsecondary and graduate instruction or research and is comparable to state-of-the-art equipment or equipment widely used in private industry, not-for-profit organizations, or government laboratories.  The definition only applies to equipment which retains at least one-half of its useful life at the time of donation.

The Higher Education Coordinating Board shall adopt rules and guidelines for the program in consultation with institutions of higher education.  These rules and guidelines may include an allocation system.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Cliff Webster, Architects and Engineers Legislative Council; Ian MacGowan, American Electronics Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Training students in the use of state-of-the-art equipment is necessary to maintain an economic competitive edge.

House Committee - Testimony Against:      None Presented.