SENATE BILL REPORT

SB 5303

As Reported By Senate Committee On:

Ways & Means, February 10, 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: Senators West, Brown, Horn, Carlson, Schmidt, Shin, Esser and Kohl-Welles; by request of University of Washington.

Brief History:

Committee Activity: Ways & Means: 2/3/03, 2/10/03 [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, lawmakers 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 this measure were lease purchase agreements to secure facility space and equipment for university research. The drafting intent was to relieve the State Finance Committee of oversight responsibility for these particular financial contracts. The enacted bill failed to accomplish that objective.

Summary of Bill: Wording of the statute is 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.

Appropriation: None.

Fiscal Note: Not requested.

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

Testimony For: This bill finishes a process recommended to policymakers by the Economic Competitiveness Council. This change is important for the business conducted by state research universities.

Testimony Against: None.

Testified: PRO: Dick Thompson and Scott Davies, University of Washington.