BILL REQ. #:  H-2286.1 

READ FIRST TIME 03/05/03.   

     AN ACT Relating to performance contracts between the state and institutions of higher education; creating new sections; and providing an expiration date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that ten years have passed since the state attempted to redefine the relationship with its institutions of higher education based on trust, evidence, and a new alignment of responsibilities, as articulated in chapter 363, Laws of 1993.
     (2) However, the legislature also finds that the intent to combine institutional flexibility and authority to make decisions at the local level with accountability for achieving statewide goals and objectives has never been fully achieved, in part because there has not been an operating mechanism through which to implement this relationship.
     (3) Therefore, the legislature intends to explore opportunities to create performance contracts between the state and public institutions of higher education. It is the intent of the legislature that such a contract would constitute a negotiated agreement between the state and an institution, where the state's primary interest would lie not in the management and operations of an institution, but in the institution's contribution to achieving agreed-upon statewide goals and objectives for higher education.

NEW SECTION.  Sec. 2   (1) A task force on higher education performance contracts is established. The task force shall consist of sixteen members, as follows:
     (a) Two members from each major caucus of the senate, appointed by the president of the senate, including members of the higher education and ways and means committees. The president of the senate shall appoint one member to serve as cochair of the task force;
     (b) Two members from each major caucus of the house of representatives, appointed by the speaker of the house of representatives, including members of the higher education, capital budget, and appropriations committees. The speaker of the house of representatives shall appoint one member to serve as cochair of the task force;
     (c) One representative of the higher education coordinating board, appointed by the board;
     (d) One representative of the state board for community and technical colleges, appointed by the state board;
     (e) Two representatives of public four-year institutions of higher education, appointed by the council of presidents;
     (f) Two representatives of the community and technical colleges, appointed by the Washington administrative council; and
     (g) One representative of the governor's office and one representative of the office of financial management, each appointed by the governor.
     (2) The task force may invite input from other interested parties, including but not limited to faculty and student representatives and representatives of the business community. Within available funds, the task force may obtain additional expertise or engage consultants if necessary to carry out its work.
     (3) The task force shall:
     (a) Examine the experience of other states in developing and implementing performance contracts with institutions of higher education;
     (b) Consider the feasibility of implementing performance contracts in Washington;
     (c) Identify whether amendments to current laws may be necessary to implement performance contracts; and
     (d) Develop guidelines and possible models for performance contracts, including:
     (i) The types of indicators and benchmarks that could be included in a contract to measure an institution's progress in meeting the contract's objectives; and
     (ii) The types of flexibility, exemptions, or commitments that could be included in a contract to reflect the state's obligation to an institution.
     (4) The task force shall use legislative facilities and staff from senate committee services and the office of program research. Each nonlegislative member of the task force shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. Travel expenses for the nonlegislative members shall be paid by their respective institutions or agencies. All other expenses of the task force shall be paid jointly by the senate and the house of representatives.
     (5) The task force shall report its findings and recommendations to the higher education and fiscal committees of the legislature by December 15, 2003.

NEW SECTION.  Sec. 3   This act expires June 30, 2004.