HOUSE BILL REPORT

                  HB 1054

                    As Passed Legislature

Title:  An act relating to the state educational trust fund.

Brief Description:  Referencing the prior fiscal period rather than biennia for refunds and recoveries to the state educational trust fund.

Sponsors:  By House Committee on Higher Education (originally sponsored by  Representatives Dunn, Carlson, Mason and Mielke; by request of Higher Education Coordinating Board).

Brief History:

Committee Activity:

Higher Education:  1/30/97, 1/31/97 [DP].

Floor Activity:

Passed House:  2/14/97, 97‑0.

Senate Amended.

House Refused to Concur.

     Conference Committee Report Adopted.

Passed Legislature.

HOUSE COMMITTEE ON HIGHER EDUCATION

Majority Report:  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:  In 1996, the Legislature created the state educational trust fund.  The trust fund  provides college financial assistance to needy or disadvantaged youth.  The students must participate in early awareness and outreach programs, and enter a Washington institution of higher education within two years of graduating from high school.

The Higher Education Coordinating Board deposits grant and loan repayments into the trust.  The existing law requires the Higher Education Coordinating Board to deposit funds to the trust that were expended in the prior biennia.

Summary of Bill:  The board will deposit repayments of students' financial aid expended in the prior fiscal period, rather than the prior biennia.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  Use of the word biennia creates a problem.  Money repaid to the trust during the first year is not transferable unless the language is changed.  The auditor and the treasurer's office recommended that funds be deposited after each fiscal period.

Testimony Against:  None.

Testified:  Representative Jim Dunn, prime sponsor (pro); and Susan Patrick, Higher Education Coordinating Board (pro).