H-1987.1          _______________________________________________

                            SUBSTITUTE HOUSE BILL 1869

                  _______________________________________________

State of Washington              52nd Legislature             1991 Regular Session

By House Committee on Higher Education (originally sponsored by Representatives Bowman, Jacobsen, Brough, Holland, Ballard, May, Betrozoff, Neher, Ferguson, P. Johnson, Casada, Chandler, Brumsickle, Mitchell and Silver).

Read first time February 28, 1991.  Allowing community colleges to have foundations to manage funds for their exceptional faculty awards.

     AN ACT Relating to exceptional faculty awards; amending RCW 28B.50.837 and 28B.50.839; and adding new sections to chapter 28B.50 RCW.

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

     Sec. 1.  RCW 28B.50.837 and 1990 c 29 s 2 are each amended to read as follows:

     (1) The Washington community college exceptional faculty awards program is established.  The program shall be administered by the state board for community college education.  The community college faculty awards trust fund hereby created shall be administered by the state treasurer.

     (2) Funds appropriated by the legislature for the community college exceptional faculty awards program shall be deposited in the community college faculty awards trust fund.  All moneys deposited in the fund shall be invested by the state treasurer.  Notwithstanding RCW 43.84.090, all earnings of investments of balances in the fund shall be credited to the fund.  At the request of the state board for community college education, the treasurer shall release the state matching funds to the ((designated institution's)) local endowment fund of the college or its foundation.  No appropriation is necessary for the expenditure of moneys from the fund.

     Sec. 2.  RCW 28B.50.839 and 1990 c 29 s 3 are each amended to read as follows:

     (1) In consultation with eligible community colleges, the state board for community college education shall set priorities and guidelines for the program.

     (2) Under this section, a community college shall not receive more than four faculty grants in twenty-five thousand dollar increments, with a maximum total of one hundred thousand dollars per campus in any biennium.

     (3) All community colleges and foundations shall be eligible for matching trust funds.  Institutions and foundations may apply to the state board for community college education for grants from the fund in twenty-five thousand dollar increments up to a maximum of one hundred thousand dollars  when they can match the state funds with equal cash donations from private sources, except that in the initial year of the program, no college or foundation may receive more than one grant until every college or its foundation has received one grant.  These donations shall be made specifically to the exceptional faculty awards program and deposited by the institution or foundation in a local endowment fund or a foundation's fund.  Otherwise unrestricted gifts may be deposited in the endowment fund by the institution or foundation.

     (4) Once sufficient private donations are received by the institution or foundation, the institution or foundation shall inform the state board for community college education and request state matching funds.  The state board for community college education shall evaluate the request for state matching funds based on program priorities and guidelines.  The state board for community college education may ask the state treasurer to release the state matching funds to a local endowment fund established by the institution or a foundation's fund established by a foundation for each faculty award created.

NEW SECTION. Sec. 3.  A new section is added to chapter 28B.50 RCW to read as follows:

     For purposes of RCW 28B.50.835 through 28B.50.843 "foundation" means a private nonprofit corporation that:  (1) Is registered under Title 24 RCW and qualified as a tax-exempt entity under section 501(c)(3) of the federal internal revenue code; (2) exists solely for the benefit of one or more community colleges in this state; and (3) is registered with the attorney general's office under the charitable trust act, chapter 11.110 RCW.

NEW SECTION. Sec. 4.  A new section is added to chapter 28B.50 RCW to read as follows:

     A foundation is not eligible to receive matching funds under RCW 28B.50.835 through 28B.50.843 unless the foundation and the board of trustees of the college for whose benefit the foundation exists have entered into a contract, approved by the attorney general, that:  (1) Specifies the services to be provided by the foundation; (2) provides for protection of the community college exceptional awards endowment funds under the foundation's control; and (3) provides for the college's assumption of ownership, management, and control of such funds if the foundation ceases to exist or function properly, or fails to provide the specified services in accordance with the contract.

     The principal of the community college exceptional awards endowment fund managed by the foundation shall not be invaded.  Funds recovered by a college under this section shall be deposited into the college's local endowment fund.  For purposes of this section, community college exceptional awards endowment funds include the private donations, state matching funds, and any accrued interest on such donations and matching funds.