SENATE BILL REPORT

SSB 5688

BYSenate Committee on Commerce & Labor (originally sponsored by Senators Smitherman, Warnke and Lee)

Establishing a review procedure for commercial activities conducted by institutions of higher education.

Senate Committee on Commerce & Labor

Senate Hearing Date(s):February 19, 1987; March 5, 1987

Majority Report:  That Substitute Senate Bill No. 5688 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Warnke, Chairman; Smitherman, Vice Chairman; Anderson, Cantu, Sellar, Tanner, Vognild, West, Williams, Wojahn.

Senate Staff:Patrick Woods (786-7430)

                  April 8, 1987

AS PASSED SENATE, MARCH 19, 1987

BACKGROUND:

During recent years, the Legislature has received testimony from representatives of for-profit businesses stating that institutions of higher education are competing unfairly with private sector businesses in providing certain goods and services. 

SUMMARY:

The Legislature states its intent to require institutions of higher education to define the legitimate purposes under which commercial activities may be approved, and to establish a mechanism for reviewing commercial activities.

Institutions of higher education in consultation with representatives of small business are required to develop: (1) comprehensive policies that define the legitimate purposes under which institutions may provide goods, services or facilities; (2) a mechanism for reviewing current and proposed commercial activities; and (3) a process for responding to inquiries from private business.

The following criteria is considered in developing policies regarding commercial activities:  the goods and services are related to the institution's educational mission; fees include direct and indirect costs; and goods and services represent a special convenience to the campus community.  An institution's education and residential life programs are not subject to review.  The institutions are required to report to the Legislature by December 1, 1987, outlining their policies regarding commercial activities.

Fiscal Note:      requested

Senate Committee - Testified: Robert Schiffner, Students Block Corp.; Barb Gorham, Association Students of WSU; Michael S. Stewart, Council of Presidents; Steven Olswang, University of Washington; Jay Hartford, Washington State University; Courtney Jones, Central Washington University; Mike Bigelow, State Board of CC Education; Jerry Brockey, S. Seattle CC; Larry Cenotto, AWB; Bob Seeber, Washington State Lodging Association; Keven Krog, Body Magic Fitness; Gary Smith, IBA; Barbara Gorham, WSU; Gary Tombinson, SEA; Brian Christ, SEA Chamber

HOUSE AMENDMENT:

This is a technical amendment clarifying that an institution of higher education's regular education programs are not subject to the provisions of the act.