SENATE BILL REPORT

SB 6602

BYSenators Saling, Gaspard, Zimmerman, McMullen, Bailey, Rinehart, Patterson, Kiskaddon, Bender, Smith, Anderson, Smitherman, Cantu, DeJarnatt and Garrett

Encouraging the donation of modern equipment to institutions of higher education.

Senate Committee on Higher Education

Senate Hearing Date(s):February 2, 1988

Majority Report:  That Substitute Senate Bill No. 6602 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.

      Signed by Senators Saling, Chairman; Patterson, Vice Chairman; Anderson, Hansen, McMullen, Smitherman, von Reichbauer.

Senate Staff:Scott Huntley (786-7421)

                  February 2, 1988

Senate Committee on Ways & Means

Senate Hearing Date(s):February 4, 1988; February 5, 1988

Majority Report:  That Substitute Senate Bill No. 6602 as recommended by Committee on Higher Education be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Cantu, Deccio, Fleming, Gaspard, Hayner, Johnson, Lee, Moore, Newhouse, Saling, Talmadge, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  February 5, 1988

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 5, 1988

BACKGROUND:

Modern laboratory equipment is essential in many academic disciplines, both for instruction and for the conduct of research at institutions of higher education.  State universities and colleges have been offered donations of state-of-the-art equipment in recent years.  However, the institutions have reported that the maintenance and operation of this equipment has been restricted by a lack of funds for that purpose.  Institutions report that in some cases donated equipment has never been installed because such funds were not available.  There have even been cases when institutions have had to turn down donations of equipment because operating funds to maintain, operate or train individuals to operate the equipment have not been available.

Public colleges and universities have explored different means of rectifying this difficulty including the establishment of a surcharge or special fee on students using laboratory equipment.  These institutions also have proposed programs to encourage the donation of equipment by providing for state matching funds to be used to operate and maintain donated equipment.

SUMMARY:

A program is established to encourage the donation of modern equipment to institutions of higher education.  The Higher Education Coordinating Board is authorized to distribute, if funds are available, to public institutions of higher education which accept a donation of modern equipment, an amount equal to the fair market value of that donated equipment.  The funds received from the Higher Education Coordinating Board may be used for the installation, maintenance, operation, and for training in the use of the equipment.  The funds may also be used to purchase new equipment.

In order to be eligible to receive such funds, an institution of higher education must accept the donated equipment and submit a needs statement to the Higher Education Coordinating Board.  The institution must also have the fair market value of the equipment assessed either by a qualified independent expert, or by consulting current catalogs or price lists.  The institutions must report the value of the donated equipment to the Board along with any other information which the Board deems necessary.

Modern equipment is defined as equipment which is useful in postsecondary and graduate instruction or research and is comparable to state-of-the-art equipment or equipment widely used in private industry, not-for-profit organizations, or government laboratories.  The definition only applies to equipment which retains at least one-half of its useful life at the time of donation.

The Higher Education Coordinating Board shall adopt rules and guidelines for the program in consultation with institutions of higher education.  These rules and guidelines may include an allocation system.

EFFECT OF PROPOSED SUBSTITUTE:

The following provisions of the bill are clarified.

The catalogs or price lists used to determine fair market value shall be those available to the general public.  The Higher Education Coordinating Board may provide matching grants up to the fair market value, rather than equal to the fair market value.  The matching funds may be used for initial installation of the equipment, rather than installation.  The purchase of software is added to the list of items for which the funds may be used.  The funds may be used for new equipment only if the new equipment will optimize the use of the donated equipment.  If institutions request funding through this program they must provide the board with a report detailing why the funding is needed.  If funding requested through this program is unavailable, the institution is granted the authority to cancel and return the donation.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: HIGHER EDUCATION:  Reid Miller, Washington State University (for); Barbara Kommer, Hewlett-Packard (for); Cliff Webster, Architects and Engineers Association (for); Fred Romero, State Board for Community College Education (for)

Senate Committee - Testified: WAYS & MEANS:  Bob Smith, WSU (for); Neal Hawkins, UW (for); Ian McGowan, American Electronics Association (for)