S-1668

AN ACT Relating to undergraduate fellowships for needy and meritorious students; and adding a new chapter to Title 28B RCW.

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

NEW SECTION. Sec. 1. The legislature finds that the rising costs of higher education and the lack of financial assistance for middle-income families has created a crisis of access to the opportunities that higher education provides. The legislature recognizes that quality in the state's public colleges and universities would be strengthened by additional partnerships between citizens and the institutions. The legislature intends to foster these partnerships and provide financial assistance to middle-income students by creating a matching grant program to assist public colleges and universities in creating endowments for funding fellowships for needy and meritorious undergraduate students. "Meritorious students" includes but is not limited to needy students with 3.00 or above grade point average or involvement in community or campus activities.

NEW SECTION. Sec. 2. The Washington undergraduate 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 undergraduate fellowship program shall be deposited in the undergraduate fellowship trust 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 undergraduate fellowship 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Any allocation system shall be superseded by conditions in any legislative act appropriating funds for the program.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 colleges, universities, and public college foundations 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 undergraduate fellowship program, and shall be donated after July 1, 1997.

(2) Upon an application by an institution, the board may designate twenty-five thousand dollars from the trust fund for that institution's pledged undergraduate 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 undergraduate fellowship fund.

(3) Once the private donation is received or documented 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 or the foundation for the undergraduate fellowships.

NEW SECTION. Sec. 6. (1) The undergraduate fellowship provided under this chapter 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) Either the institution or its foundation, or both are 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 or its foundation may augment the endowment fund with additional private donations. The principal of the invested endowment fund shall not be invaded.

(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 money, including all investment income, deposited in the Washington undergraduate 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 colleges and universities, the governor may transfer the administration of this program to another agency that has an appropriate educationally related mission.

(2) By December 1, 1999, 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. Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.