AN ACT Relating to fellowships for graduate students; adding new sections to chapter 28B.10 RCW; and making an appropriation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that quality in the state's public four-year institutions of higher education would be strengthened by additional partnerships between citizens and the institutions. The legislature intends to foster these partnerships by creating a matching grant program to assist public four-year institutions of higher education in creating endowments for funding fellowships for distinguished graduate students.

NEW SECTION. Sec. 2. The Washington graduate fellowship trust fund program is established. The program shall be administered by the higher education coordinating board. The trust fund shall be administered by the state treasurer.

NEW SECTION. Sec. 3. Funds appropriated by the legislature for the graduate fellowship program shall be deposited in the graduate fellowship trust fund. All moneys deposited in the fund shall be invested by the state treasurer. Notwithstanding RCW 43.84.090, all earnings of investments of balances in the fund shall be credited to the fund. At the request of the higher education coordinating board under section 5 of this act, the treasurer shall release the state matching funds to the designated institution's local endowment fund. No appropriation is required for expenditures from the fund.

NEW SECTION. Sec. 4. In consultation with eligible institutions of higher education, the higher education coordinating board shall set guidelines for the program. These guidelines may include an allocation system based on factors which include but are not limited to: The amount of money available in the trust fund; characteristics of the institutions including the size of the faculty and student body; and the number of fellowships previously received.

Any allocation system shall be superseded by conditions in any legislative act appropriating funds for the program.

NEW SECTION. Sec. 5. (1) All state four-year institutions of higher education shall be eligible for matching trust funds. Institutions may apply to the higher education coordinating board for twenty-five thousand dollars from the fund when they can match the state funds with equal pledged or contributed private donations. These donations shall be made specifically to the graduate fellowship program, and shall be donated after July 1, 1987.

(2) Upon an application by an institution, the board may designate twenty-five thousand dollars from the trust fund for that institution's pledged graduate fellowship fund. If the pledged twenty-five thousand dollars is not received within two years, the board shall make the designated funds available for another pledged graduate fellowship fund.

(3) Once the private donation is received by the institution, the higher education coordinating board shall ask the state treasurer to release the state matching funds to a local endowment fund established by the institution for the graduate fellowships.

NEW SECTION. Sec. 6. (1) The fellowship is the property of the institution and may be named in honor of a donor, benefactor, or honoree of the institution, at the option of the institution.

(2) The institution is responsible for soliciting private donations, investing and maintaining all endowment funds, administering the fellowship, and reporting on the program to the governor and the legislature upon request. The institution may augment the endowment fund with additional private donations.

(3) The proceeds from the endowment fund may be used to provide fellowship stipends to be used by the recipient for such things as tuition and fees, subsistence, research expenses, and other educationally related costs.

NEW SECTION. Sec. 7. Any private or public moneys including interest deposited in the Washington graduate fellowship trust fund or any local endowment for fellowship programs shall not be subject to collective bargaining.

NEW SECTION. Sec. 8. (1) After consulting with the higher education coordinating board and the state four-year institutions of higher education, the governor may transfer the administration of this program to another agency which has an appropriate educationally related mission.

(2) By December 1, 1989, the higher education coordinating board and any agency administering this program, if applicable, shall make recommendations to the governor and the legislature on any needed changes in the program.

NEW SECTION. Sec. 9. (1) There is hereby appropriated by August 1,1987, the sum of two hundred thousand dollars from the general fund to the Washington graduate fellowship trust fund. The state treasurer shall reserve the following amounts in the trust fund for distribution to four-year institutions of higher education institutions at such time as gifts qualifying under sections 5 and 6 of this act for graduate fellowships have been deposited:

(a) One hundred thousand dollars for the University of Washington;

(b) Fifty thousand dollars for Washington State University; and

(c) Fifty thousand dollars divided among Eastern Washington University, Central Washington University, Western Washington University, and The Evergreen State College.

(2) As of January 1, 1989, if any funds reserved in subsection (1)(a), (b), or (c) of this section have not been designated as matching funds for qualifying gifts, any four-year institution of higher education, which has already fully utilized the fellowships allocated to it by this section, may be eligible for such funds under rules adopted by the higher education coordinating board.

NEW SECTION. Sec. 10. Sections 1 through 8 of this act are added to chapter 28B.10 RCW.