SENATE BILL REPORT

HB 1280

As Reported By Senate Committee On:

Ways & Means, February 27, 2003

Title: An act relating to financing contracts for research facilities or equipment of state universities.

Brief Description: Changing provisions for financing contracts for state university research facilities or equipment.

Sponsors: Representatives Murray, Alexander and Dunshee; by request of University of Washington.

Brief History:

Committee Activity: Ways & Means: 2/27/03 [DP].

SENATE COMMITTEE ON WAYS & MEANS

Majority Report: Do pass.

      Signed by Senators Rossi, Chair; Hewitt, Vice Chair; Zarelli, Vice Chair; Brown, Doumit, Fairley, Fraser, Hale, Honeyford, Johnson, Parlette, Poulsen, Regala, Sheahan, B. Sheldon and Winsley.

Staff: Karen Barrett (786-7711)

Background: With the enactment of Substitute House Bill 2736 during 2002, the Legislature delegated authority to the regents of Washington State University and the University of Washington to borrow or pledge research funds to finance research property. Among transactions contemplated by legislation were lease-purchase agreements to secure facility space and equipment for university research.

Before 2002, both universities had standing authority to execute a financing contract supported by non-state fees and revenue without prior approval from the State Finance Committee. A reference added with the 2002 legislation to make the new financing authority for research consistent with current law excluded the new financing authority, rather than including it, leaving ambiguity as to said universities' authority to independently execute such contracts.

Summary of Bill: Wording of the statute and internal references are corrected. Financial contracts for research facilities or equipment contemplated by either the University of Washington or Washington State University do not require prior approval of the State Finance Committee to execute. It is also clarified that these two universities may acquire real property for these research facilities using non-state, research-related funds without prior legislative approval.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: None.

Testimony Against: None.

Testified: No one.