FINAL BILL REPORT

                   SB 6025

                          C 195 L 99

                      Synopsis as Enacted

Brief Description:  Allowing purchases for resale by institutions of higher education without using the competitive bid process.

Sponsors:  Senators Bauer, Horn and Patterson; by request of State Board for Community and Technical Colleges.

Senate Committee on Higher Education

House Committee on Higher Education

Background:  Colleges purchase resale goods to support a variety of instructional programs and college enterprise activities.  In instructional programs, these goods are used to provide hands on training for students as well as service to the public.  In some programs the purchasing process is a part of the learning process.

For a number of years, higher education institutions have operated as though exempt from compliance with the competitive bid requirements applied to purchases of goods for resale.

A question from the State Auditor=s Office prompted a review of the statutes.  As a result of that review, these purchases are not currently exempt from competitive bid requirements.  A change in statute is required to establish an exemption for the purchase of goods for resale by institutions of higher education.

Summary:  Purchases by institutions of higher education for resale to other than public agencies are exempt from the competitive bid process.  Direct purchases for resale are limited to purchases expressly supporting instructional programs.

Votes on Final Passage:

Senate 47 0

House     90 0 (House amended)

Senate    46 0 (Senate concurred)

Effective:  July 25, 1999