HOUSE BILL REPORT

                  HB 2334

             As Reported By House Committee On:

                      Higher Education

Title:  An act relating to fellowships for undergraduate fellowships for undergraduate students attending state-supported colleges and universities located in the state of Washington; and adding a new chapter to Title 28B RCW.

Brief Description:  Establishing the Washington undergraduate fellowship fund program.

Sponsors:    Radcliff, Gardner, Keiser, Butler, Carlson, Costa, Anderson, Kenney, Constantine, Conway and Hankins.

Brief History:

  Committee Activity:

Higher Education:  1/16/98, 1/23/98 [DPS].

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by 9 members:  Representatives Carlson, Chairman; Radcliff, Vice Chairman; Mason, Ranking Minority Member; Kenney, Assistant Ranking Minority Member; Butler; Dunn; O'Brien; Sheahan and Van Luven.

Staff:  Marilee Scarbrough (786-7196).

Background:  Since 1985, the Legislature has created four programs designed both to match state funds with private donations and to attract exemplary faculty and graduate students to Washington's public colleges and universities.  Through the Distinguished Professorship and Graduate Student Fellowship programs, state funds are matched with private donations to create endowed positions at the public baccalaureate institutions.

In the Community College Exceptional Faculty Awards Program, state funds and private donations are equally matched either to reward outstanding service by individual faculty members or to fund faculty development activities.  Community college and technical college foundations are permitted to participate in this program.

Through the Warren G. Magnuson Institute for Biomedical Research and Health Professions Training, individuals engaged in research into diabetes, Parkinson's disease, osteoporosis, and other medical disorders receive funding and support.  Funding for the institute is provided through a combination of methods, including the earnings on an endowment created when state funds were doubly matched by private donations or federal funds.

The 1996 Student Financial Aid Policy Advisory Committee to the Higher Education Coordinating Board recommended the creation of an endowed fellowship program for needy and meritorious undergraduate students attending public or independent colleges and universities.  The committee suggested that the board develop and seek funding for a program modeled on the Distinguished Professorship and Graduate Student Fellowship programs.

Summary of Substitute Bill:  The Washington Undergraduate Fellowship Trust Fund Program is created.  Through the program, the Legislature intends to help Washington's state-supported institutions of higher education fund fellowships for needy or meritorious undergraduate students.  At each participating institution the fellowships will be funded from earnings from an endowment created by matching state money with an equal amount from private donors.

The program will be administered by the Higher Education Coordinating Board.  The board will adopt program guidelines and request the release of state matching moneys to qualifying institutions of higher education.  The guidelines may include a system for allocating state matching funds.

The Undergraduate Fellowship Trust Fund is created.  It will be administered by the State Treasurer.  State appropriations for the program will be deposited in the trust fund.  At the request of the Higher Education Coordinating Board, money in the trust fund will be released to the local endowment funds created by participating institutions.  The Higher Education Coordinating Board may request the release of state money when participating institutions receive $25,000 from private donors.

The institution is responsible for soliciting private donations, investing money in the endowment fund, administering the fellowship, and, upon request, reporting on the program to the board.  The proceeds from the endowment may be used to pay the costs associated with the recipient=s education.  The principle of the endowment cannot be spent.  Moneys associated with this program are not subject to collective bargaining.

Substitute Bill Compared to Original Bill:  Language is deleted that restricts foundation fellowships.  Institutions of higher education and foundations are required to include student representatives in the selection process.

Appropriation:  None.

Fiscal Note:  Available.

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

Testimony For:  This program is similar to the graduate fellowship.  It will increase access to higher education and recognize the variety of ways students can excel.  This provides students with aid that may not otherwise be available.  The State Board for Community and Technical Colleges appreciates their inclusion in the bill.  It is important to award meritorious or needy students.

Testimony Against:  None.

Testified for:  Representative Renee Radcliff; Garrett Ferencz, Washington Student Lobby; Melissa Chiechi, Washington Student Lobby; Carolyn Clark, Council of Faculty Representatives; Barbara Alvin, Council of Faculty Representatives; Dale Lindekugel, Council of Faculty Representatives; Rhonda Coates, State Board for Community and Technical Colleges; Kim Merriman, The Evergreen State College; and Martha Lindley, Central Washington University.