HOUSE BILL REPORT

HB 2443

BYRepresentatives O'Brien, Jacobsen, Prince, Anderson, Heavey, Crane, Valle, Winsley, Moyer, P. King, Todd, Day, Rector, Wood, Wineberry and R. King 

Establishing the Warren G. Magnuson institute for biomedical research and health professions training.

House Committe on Higher Education

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (11)

      Signed by Representatives Jacobsen, Chair; Spanel, Vice Chair; Van Luven, Ranking Republican Member; Basich, Doty, Fraser, Heavey, Miller, Prince, Rector and Wood.

House Staff:Susan Hosch (786-7120)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (23)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; H. Sommers, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Belcher, Bowman, Brekke, Dorn, Doty, Ebersole, Ferguson, Hine, May, McLean, Nealey, Peery, Rust, Spanel, Sprenkle, Valle, Wang and Wineberry.

House Staff:      Sherie Story (786-7142)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 5, 1990

BACKGROUND:

Warren Grant Magnuson served the citizens of Washington in the United States Congress for over 44 years.  During that time, he was instrumental in the passage of legislation that established the National Cancer Institute, the National Institute of Health, the National Health Service Corps, the Fred Hutchinson Cancer Center in Seattle, and the Veterinary Medicine Center at Washington State University.  Senator Magnuson was also instrumental in securing substantial amounts of funding for research in the health sciences.

In 1973, Warren Magnuson received the prestigious Albert Lasker Public Service and Health Award for his efforts to improve this country's system of health care. He was awarded the Washington State Medal of Merit in 1987.  In recognition of his many accomplishments, and in gratitude for his many years of assistance, the Health Sciences Center at the University of Washington is named in honor of Senator Magnuson.

SUMMARY:

SUBSTITUTE BILL: The Warren G. Magnuson Institute for Biomedical Research and Health Professions Training is established.  The institute will be located within the Warren G. Magnuson Health Center at the University of Washington.  The institute will be administered by the university. Funding for the institute may be provided through a combination of federal, state, and private funds, including the earnings on the university's endowment fund.

The purposes of the institute are described.  The primary purpose is providing support to one or more individuals engaged in diabetes research. The secondary purpose of the institute is providing assistance to graduate and postgraduate students in the health professions.  Other purposes of the institute include supporting biomedical research in Parkinson's disease, osteoporosis, or any disorder in which achieving a significant result in the near term is promising.

The Warren G. Magnuson Institute Trust Fund is created.  The fund will be administered by the State Treasurer.  $500,000 from the state general fund will be deposited in the trust fund and invested by the treasurer. The treasurer will release those funds to the University of Washington when the university can match the funds with an equal amount of private cash donations. Private cash donations are defined as moneys from nonstate sources, including federal funds and assessments by commodity commissions.  No appropriation is necessary for expenditures from the trust fund.

Once the private donations and state matching grants are received by the university, they will be deposited in the university's local endowment fund.  The university will invest moneys in the endowment fund, and may augment them with additional private donations.  The principal of the endowment fund must not be expended.

The earnings on the endowment fund must be used to support the institute.  Earnings on the first $750,000 must be used to support one or more individuals engaged in diabetes research.  Earnings on the next $250,000 must be used to provide financial assistance to University of Washington students in graduate and postgraduate programs in the health professions.  Earnings on additional funds can be used for any purpose of the institute.

$500,000 is appropriated to the treasurer for the Warren G. Magnuson Trust Fund.

SUBSTITUTE BILL COMPARED TO ORIGINAL: The original bill created the institute as a vehicle for receiving money to be deposited into the University of Washington's endowment fund.  The bill determined how earnings on the first $1,500,000 in the endowment fund would be expended.

Under the substitute bill, the institute will be funded through a variety of sources, including earnings on the university's endowment fund.  The Warren G. Magnuson Trust Fund is created.  The trust fund will be administered by the state treasurer.  $500,000 from the state general fund will deposited into the trust fund.  When the university receives $500,000 in private donations, the state matching funds in the trust will be released to the university's endowment fund.  The method of spending earnings on the first $1,000,000 in the endowment fund is determined.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS (SECOND SUBSTITUTE BILL): The appropriation is deleted and the act is made null and void if no appropriation is made.  The matching requirement from non-state sources is changed from an even match to one requiring the university to have twice the amount in non-state donations before the state matching amount is released.

Appropriation:    (Higher Education Committee) $500,000 to the treasurer for deposit in the Warren G. Magnuson Institute Trust Fund.

(Appropriations Committee) None.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    (Higher Education) Rep. John O'Brien; Mrs. Warren Magnuson; and Dr. Loren Winterscheid, University of Washington.

(Appropriations) No one.

House Committee - Testified Against:      (Higher Education) No one.

(Appropriations) No one.

House Committee - Testimony For:    (Higher Education) Senator Magnuson had a personal and private interest in the health care of this country's citizens.  One of his last projects was planning a way to collect enough private donations to fund an endowed chair in diabetes research at the University of Washington.  One of the best ways to honor one of Washington's greatest statesmen would be the creation of an institute devoted to the research and training needed to cure diseases such as diabetes, osteoporosis, and Parkinson's disease.

(Appropriations) None.

House Committee - Testimony Against:      (Higher Education) None.

(Appropriations) None.