HOUSE BILL ANALYSIS

                 HB  2332

Title: An act relating to associated student body fund‑raising activities.

Brief Description: Authorizing student groups to conduct charitable fund‑raising.

Sponsors: Representatives Schual‑Berke, Edmonds, Dickerson, Keiser, Carlson, Hurst, Lantz and Stensen.

HOUSE COMMITTEE ON EDUCATION

Meeting Date: January 20, 2000.

Bill Analysis Prepared by: Charlie Gavigan (786-7340)

Background:   An Aassociated student body@ is a formal organization of students formed with the approval of and regulation by the school district.  Associated student bodies, among other things, provide optional non-credit extracurricular activities of a cultural, social, recreational, or athletic nature.  Associated student body activities generally are funded by fees or student fundraisers.

Article 8, section 7 of the state constitutions prohibits local public agencies, such as school districts, from making gifts of public funds except to aid the poor or infirm.  Donations may be used by the associated student body for scholarship, student exchange, charitable, and other purposes.  Donations typically mean gifts made without receiving any compensation.  However, many student fundraisers, such as car washes and bake sales, provide a service or product to the person making the Adonation.@

Students may raise private funds, called nonassociated student body program funds, for private purposes that can be held in trust in an associated student body program fund.  The school district must be compensated for the cost of administering the separate private account or accounts. 

Summary of Bill: Authorization for the associated student body program fund to use donations for scholarship, student exchange, charitable, and other purposes is removed.

Subject to school board policy, student groups are authorized to conduct fund-raising activities as a private group to generate nonassociated student body funds.  As in current law, these nonassociated student body funds may be used for scholarship, student exchange, charitable, and other purposes.  The student group raising the funds determines how the funds are used. These nonassociated student body funds must be held in trust in an associated student body program fund in separate accounts, and the school district reimbursed for the direct expenses of maintaining these separate accounts.

Appropriation:  None.

Fiscal Note: Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.