FINAL BILL REPORT

2SHB 257

                                  C 147 L 87

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives Jesernig, Jacobsen, Ebersole, Miller, Bristow, Prince, Sprenkle, Grant, Heavey, Nelson, Ballard, Hankins, Unsoeld, Allen, Sayan, Rayburn, Appelwick, Betrozoff and Wang)

Establishing a trust fund program for graduate students.

House Committe on Higher Education

Rereferred House Committee on Ways & Means/Appropriations

Senate Committee on Education

SYNOPSIS AS ENACTED

BACKGROUND:

In 1985, Washington instituted a program to attract and retain outstanding faculty.  The Distinguished Professorship Program was designed to match public and private funds in support of preeminent scholars at the public four-year universities and college.  The early success of this program has encouraged its use in forging partnerships between private individuals and the state to support graduate student fellowships.

SUMMARY:

The Washington Graduate Fellowship Trust Fund Program is created to match public and private funds in support of outstanding graduate students at the public four-year universities and college.  Money in the trust fund will be administered and invested by the state treasurer.

The program will be administered by the Higher Education Coordinating Board, which will adopt program guidelines.  These guidelines may include an allocation system based on a variety of factors.  However, the allocation system will be superseded by conditions in any legislative act appropriating funds for the program.

Institutions may apply for $25,000 from the trust fund when they can match the state funds with an equal amount of pledged or contributed private donations.  These donations must be made specifically to the program and must be donated after July 1, 1987.  The board may then reserve $25,000 for the school's pledged fellowship.  If the pledged amounts are not received within two years, the board must make those reserved funds available for another fellowship.  Once the private donations are received by the institution, the state matching funds will be transferred to the college or university's graduate fellowship local endowment fund.

The institution is responsible for investing and augmenting the endowment fund, administering the fellowship, and reporting on the program to the governor and the legislature upon request.  The proceeds from the fund may be used to provide fellowship stipends for the recipient's tuition, subsistence, research and other educational expenses.

After consulting with the board and eligible institutions, the governor may transfer the administration of this program to another agency with an appropriate educational mission.

Money deposited in the trust fund or in local endowment funds are not subject to collective bargaining.

By December 1, 1989, the board and any agency administering this program will make recommendations on any needed program changes.

VOTES ON FINAL PASSAGE:

      House 97   1

      Senate    49     0

EFFECTIVE:July 26, 1987