HOUSE BILL REPORT

HB 2551

BYRepresentatives Jacobsen, Prince, Rector, Van Luven, Nelson, Wineberry, R. King, Silver, Kremen, Wood, Rayburn, K. Wilson, Spanel, Basich, Pruitt, Dellwo, P. King, Valle, Miller, Doty, Locke, Inslee and Brekke

Granting a greater voice to students in recommending budgets for services and activities fees.

House Committe on Higher Education

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (12)

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

House Staff:Susan Hosch (786-7120)

AS REPORTED BY COMMITTEE ON HIGHER EDUCATION JANUARY 29, 1990

BACKGROUND:

Services and activities fees are statutorily defined to mean fees that are charged to all students and are used to fund student activities and programs. These fees are also dedicated to repaying bonds and other indebtedness for facilities such as dormitories, hospitals, infirmaries, dining halls, parking facilities; and student, faculty, and employee housing.

In 1980, through legislation, students were assured a role in proposing budgetary recommendations for expending services and activities fees.  Their proposals were made to their college or university administration.  The legislation also required the creation of a services and activities fee committee, with the majority of members to be students chosen by the school's student government.

In 1986 the Legislature revised the services and activities fee budget process so that the students were given the responsibility for proposing initial budget recommendations to both the school administration and the governing board.  Under these revised procedures, the services and activities fee committee submits its budget recommendations to the administration with informational copies provided to the governing board. If the administration responds with different recommendations, that response, together with supporting documentation, must be given to the committee and the board.

If the committee and the administration do not agree, they must make a good faith effort to resolve disputes before submitting final recommendations to the governing board.  The governing board then makes the final decision on the adoption of the budget for services and activities fees.

SUMMARY:

SUBSTITUTE BILL:  The Legislature recognizes the responsibility that governing boards have in protecting lawful agreements and the stability of programs affecting students.  The Legislature also recognizes that services and activities fees are paid by students for the express purpose of funding student services and programs.

The Legislature intends to ensure that students have a strong voice in recommending budgets for services and activities fees. Members of governing boards are directed to adhere to the principle that the desires of the services and activities committee must be given priority in areas that governing boards are not required to protect.

The statutory procedure for adopting services and activities budgets is revised.

Students on the services and activities fee committee and representatives of the institution's administration will each have an opportunity to address the governing board before the board makes a final budget decision. The student membership of the committee must represent a broad spectrum of student interests and organizations.

The services and activities fee committee has the responsibility for proposing program priorities and budget levels directly to the administration and the governing board, rather than through the college administration to the governing board.  During its consideration of the proposed budget, the committee must provide an opportunity for all viewpoints to be heard at a public meeting.

If the administration and the committee are unable to agree on the budget, and are unable to resolve disputed budget items within 14 days, a dispute resolution committee will be convened by the chair of the committee.  This dispute resolution committee must be convened within the following two weeks.

The dispute resolution committee will include two nonvoting members representing the institution's administration.  It will include six voting members: three appointed by the governing board, and three student members of the services and activities fee committee.  One student who represents the services and activities fee committee will chair the dispute resolution committee.  The chair will vote only if his or her vote is necessary to break a tie and settle the dispute.

The governing board may take action on those portions of the budget not in dispute under the customary budget approval timelines established by the board.  The board will also consider the results of the dispute resolution committee, and take final action on all items to be funded through the budget.

Once the budget is approved, funds must not be shifted from certain budget categories or from the reserve fund, without providing the services and activities fee committee and the governing board with notification and justification.  If a dispute about either transfer arises, the dispute will be resolved using the same dispute resolution process described above.  This process will replace and expand a process that permitted the governing board or the recognized student governing organization to give its express approval for fund transfers.

Any collected services and activities fees that exceed initially budgeted amounts are subject to all statutory budget process requirements except the requirement to provide information to all interested parties. Language is removed that conflicts with the new process requirements.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Language describing the purposes of services and activities fees and the responsibilities of governing boards is modified. The composition of the dispute resolution committee is revised.  The process for proposing initial budgets and for handling fund transfers is modified.  Timelines for resolving disputes are included.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Lisa Surber, Washington Student Lobby; and Sherry Burkey, University of Washington.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    (Substitute bill):  Services and activities fees are fees paid by students for student purposes.  This legislation will provide a way for students to negotiate directly with representatives of the governing board when students have a dispute with the administration over the use of these fees.  The bill will still leave the final decision in the hands of the entire governing board.  Students and administrators have worked hard to reach a compromise that both groups can live with.  Most institutions prefer the current statute, but no four-year institution is opposed to this compromise bill.

House Committee - Testimony Against:      None.