HOUSE BILL REPORT

                  SB 6174

                 As Passed House - Amended:

                      February 28, 1996

Title:  An act relating to duties of the higher education coordinating board.

Brief Description:  Requiring annual budget review, recommendations, and guidelines for the higher education system.

Sponsors:  Senators Bauer and Kohl; by request of Higher Education Coordinating Board.

Brief History:

  Committee Activity:

Higher Education:  2/20/96 [DP].

  Floor Activity:

     Passed House - Amended:  2/28/96, 96-0.

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  Do pass.  Signed by 12 members:  Representatives Carlson, Chairman; Mulliken, Vice Chairman; Jacobsen, Ranking Minority Member; Mason, Assistant Ranking Minority Member; Basich; Benton; Blanton; Delvin; Goldsmith; Mastin; Scheuerman and Sheahan.

Staff:  Marilee Scarbrough (786-7196).

Background:  Currently, the Higher Education Coordinating Board reviews, evaluates, and makes recommendations on the operating and the capital budget requests from four-year institutions and the community and technical college system. The board recommendations must be made by October 15 of each even-numbered year.  The board does not have statutory authority to review supplemental budget requests.

Summary of Bill:  Current law is amended to provide that the Higher Education Coordinating Board will submit budget recommendations to the Office of Financial Management by November 1 of each even number year instead of October 15.

The Higher Education Coordinating Board is given two additional duties.  First,  the Board is directed to design and implement a pilot project that allows needy resident students to use state need grants in other states.  The project will include Clark County needy students who wish to attend an institution of higher education in the Portland area.  Students who participate in the pilot project shall be eligible for student financial aid.  The student must qualify as a needy student, enroll in an eligible institution, and meet criteria established by the board for the pilot project. The board will adopt rules for implementation of the pilot program.  The board will provide a report to the Governor and the Legislature by December 15, 2002, on the pilot project and make a recommendation on permitting financial aid portability.

Second, the board is directed to identify programs and localities where contracting with private nonprofit educational institutions would be cost effective.  The board is given authority to contract with private institutions for instructional services that will result in a certificate, license, or degree.  The program of study must be in a field other than theology.

Terms of the contract must include, but are not limited to,  providing a cost effective way of satisfying a board-identified need, enrolling only students who meet the state residency requirements, and provisions for accountability of public funds and evaluations of the effectiveness of the contract.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This is a companion bill to HB 2250.  We support the concept and the bill.

Testimony Against:  None.

Testified:  Representative Don Carlson, chair, House Higher Education Committee (pro).