COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 373
(By Senators Tomblin (Mr. President) and Caruth,
By Request of the Executive)
____________
[Originating in the Committee on Education;
reported March 27, 2009.]
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A BILL to amend and reenact §18C-1-1 and §18C-1-5 of the Code of
West Virginia, 1931, as amended; to amend and reenact §18C-7-
3, §18C-7-4, §18C-7-5, §18C-7-6, §18C-7-7 and §18C-7-8 of said
code; and to amend and reenact §29-22-18a of said code, all
relating to student financial aid resources and programs;
reconstituting the Higher Education Student Financial Aid
Advisory Board; providing for member appointments; setting
forth member qualifications and terms of office; setting forth
duties of the advisory board; dissolving the PROMISE
Scholarship Board and transferring its powers and duties to
the Higher Education Policy Commission; authorizing investment
of certain funds with the West Virginia Investment Management
Board; raising by two percent the aggregate percentage amount
the Legislature may allocate to the West Virginia Providing
Real Opportunities for Maximizing In-State Student Excellence (PROMISE) scholarship program; setting as the minimum amount
of the PROMISE scholarship annual award the lesser of the cost
of tuition at a state institution of higher education or
$4,750 and authorizing the Higher Education Policy Commission
to provide annual awards greater than $4,750 under certain
circumstances if funds are available; providing conditions
under which PROMISE scholarship annual awards are continued to
certain students under certain circumstances; clarifying that
a PROMISE scholarship may supplement certain tuition and fee
waivers; authorizing the Higher Education Policy Commission to
promulgate rules; and
increasing funding allocated from the
State Excess Lottery Revenue Fund by $2 million.
Be it enacted by the Legislature of West Virginia:
That §18C-1-1 and §18C-1-5 of the Code of West Virginia, 1931,
as amended, be amended and reenacted; that §18C-7-3, §18C-7-4,
§18C-7-5, §18C-7-6, §18C-7-7 and §18C-7-8 of said code be amended
and reenacted; and that §29-22-18a of said code be amended and
reenacted, all to read as follows:
ARTICLE 1. FINANCIAL ASSISTANCE GENERALLY.
§18C-1-1. Legislative findings; purpose; administration generally;
reporting.
(a) The Legislature finds makes the following findings:
(1)
That Although enrollments in institutions of higher
education in this state and throughout the nation continue to
increase at a rapid pace,
there continues to exist an
underdevelopment of West Virginia has not developed sufficiently the state's human talent and resources because
of the inability of
many able, but needy, students
are not able to finance a higher
education program;
(2)
That The state can achieve its full economic and social
potential only when the following elements are in place:
(A) Every individual has the opportunity to contribute to the
full extent of his or her capability; and
(B) The state assists in removing
such financial barriers to
the individual's education goals
as may that remain after he or she
has
utilized used all resources and work opportunities available;
(b) The ultimate state goal in providing student financial aid
is to create a culture that values education, to improve the
quality of the
state's workforce and
thereby to enhance the quality
of life for the citizens of West Virginia.
(c) The Vice Chancellor for Administration
jointly employed by
the commission and the council has a ministerial duty to
administer, oversee
or and monitor all state and federal student
loan, scholarship and state aid programs which are administered at
the state level in accordance with established
guidelines rules
under the direction of the commission and council and in
consultation with the Higher Education Student Financial Aid
Advisory Board.
(d)
Such These programs include, but are not limited to, the
following programs pursuant to the provisions of this chapter:
(1) The Guaranteed Student Loan Program, which may be
administered by a private nonprofit agency;
(2) The Medical Student Loan Program;
(3) The Underwood-Smith Teacher Scholarship Program;
(4) The Engineering, Science and Technology Scholarship
Program;
(5) The West Virginia Higher Education Grant Program;
(6) The Higher Education Adult Part-time Student Grant
Program;
(7)
The West Virginia Providing Real Opportunities for
Maximizing In-State Student Excellence (PROMISE) Scholarship
Program;
(7) (8) The Higher Education Student Assistance Loan Program
under established pursuant to article twenty-two-d, chapter
eighteen of this code;
(8) (9) The West Virginia College Prepaid Tuition and Savings
Program
under established pursuant to article thirty, chapter
eighteen of this code, which is administered by the State
Treasurer;
(9) (10) The state aid programs for students of optometry,
pursuant to article three of this chapter;
(10) (11) The state aid programs for students of veterinary
medicine pursuant to section six-a, article eleven, chapter
eighteen of this code;
(11) (12) Any reciprocal program and contract program for
student aid
under established pursuant to sections three and four,
article four, chapter eighteen-b of this code;
(12) (13) Any other state level student aid
program programs in this code; and
(13) (14) Any federal grant or contract student assistance or
support programs administered at the state level.
(e) Notwithstanding any provision of this chapter to the
contrary, the Vice Chancellor for Administration shall prepare a
single, comprehensive report regarding the implementation of the
financial aid programs identified in subsection (d) of this section
which are administered under his or her supervision. The report
shall be provided to the commission and the council and shall be
presented to the Legislative Oversight Commission on Education
Accountability no later than November 30, 2009 and annually
thereafter. The report shall address all financial aid issues for
which reports are required in this Code, as well as any findings
and recommendations.
§18C-1-5. Higher Education Student Financial Aid Advisory Board.
(a) The Higher Education Student Financial Aid Advisory Board
is established.
(b) The purpose of the board is to provide financial aid
expertise and policy guidance to the commission, the council
the
PROMISE Scholarship Board, and the Vice Chancellor for
Administration
and the Executive Director of the PROMISE
Scholarship Programs on all matters related to federal, state and
private student financial aid resources and programs.
(c) It is the intent of the Legislature that the advisory
board have the following responsibilities:
(1) Recommend methods to balance the needs of state students from all levels of financial need and academic ability
by focusing
attention on multiple financial aid programs which meet a variety
of state objectives;
(2) Recommend methods for achieving a comprehensive system of
student financial aid
: (A) to maximize the return on the state's
investment in
such student financial aid programs by increasing the
skills, qualifications and education achievement of the citizens
receiving the benefits;
and
(B) (3) To establish Recommend methods
for coordinating
administration among to coordinate state-funded student financial
aid programs so that the state achieves the appropriate blend of
student financial aid programs to expand the range of economic
opportunities available to state citizens;
(4) Recommend ways to improve state-level administration of
financial aid programs for the benefit of students and
institutions;
(5) Recommend ways to improve financial aid outreach
activities;
(6) To make recommendations consistent with the nature of the
PROMISE scholarship program as a merit-based student financial aid
program. The Legislature encourages the advisory board to examine
and consider adjusting academic eligibility requirements by raising
the composite ACT standardized test score to at least twenty-three.
(7) Recommend rules that align with the goals, objectives, and
priorities set forth in section one-a, article one, chapter
eighteen-b of this code and article one-d, chapter eighteen-b of this code, and with other state and system public policy goals,
objectives and priorities.
(d) The Advisory Board consists of twelve members as follows:
(1) The chair of the Higher Education Policy Commission or a
designee who is a member of the commission;
(2) The chair of the West Virginia Council for Community and
Technical College Education or a designee who is a member of the
council;
(3) The State Superintendent of Schools or a designee;
(4) The Secretary of Education and the Arts or a designee;
(5) The State Treasurer or a designee;
(6) A member of the PROMISE Scholarship Board selected by that
board;
(7) Three financial aid administrators, excluding the
president of the West Virginia Association of Student Financial Aid
Administrators.
(A) All financial aid administrators are appointed by the Vice
Chancellor for Administration in consultation with the commission
and the council, as appropriate. Of the initial appointments, the
vice chancellor shall appoint one member to a two-year term, one
member to a three-year term and one member to a four-year term.
Thereafter, all terms are for four years.
(B) It is the duty of the Vice Chancellor for Administration
to select financial aid administrators so that the following types
of institutions have representatives serving on the board on a
rotating basis:
(i) State institutions of higher education which are doctoral-
degree granting research universities;
(ii) State institutions of higher education which primarily
grant baccalaureate degrees;
(iii) State institutions of higher education which are
free-standing community and technical colleges;
(iv) State institutions of higher education which are
administratively linked community and technical colleges; and
(v) Private institutions of higher education which are
regionally accredited and located within the state.
(8) Three at-large private sector members who are appointed
jointly by the commission and the council. Of the initial
appointments, the commission and the council jointly shall appoint
one member to a two-year term, one member to a three-year term and
one member to a four-year term. Thereafter, all terms are for four
years.
(A) At-large members shall:
(i) Be representative of the state's business and economic
community;
(ii) Demonstrate knowledge, skill and experience in an
academic, business or financial field; and
(iii) Reside within this state.
(B) An at-large member may not be:
(i) A member of a governing board or institutional board of
advisors of any public or private institution of higher education;
nor
(ii) A publicly elected official or an employee of any state,
county or municipal agency.
(e) No more than two of the at-large members may be from the
same political party and no more than one may reside in any
congressional district.
(1) After the initial appointments, each appointed member
serves a term of four years and may be reappointed upon expiration
of the term.
(2) In the event of a vacancy among appointed members, the
commission and the council shall appoint a person for the remainder
of the unexpired term to represent the same interests as those of
the original appointee. A person appointed to fill a vacancy is
eligible for reappointment. Unless a vacancy occurs due to death
or resignation, an appointed member continues to serve until a
successor has been appointed and qualified as provided in this
section.
(d) Advisory board membership. --
(1) The advisory board consists of seven members selected as
follows:
(A) Three members appointed by the commission;
(B) Two members appointed by the council;
(C) One member appointed by the West Virginia Independent
Colleges and Universities; and
(D) One member appointed by the West Virginia School Counselor
Association.
(2) Members appointed by the commission and the council shall possess a broad knowledge of state and federal higher education
student financial aid programs and have experience in administering
these programs, preferably at the campus or system level.
(3) The initial appointments of members are made as follows:
(A) The commission appoints one member to a one-year term, one
member to a two-year term, and one member to a three-year term;
(B) The council appoints one member to a one-year term and one
member to a three-year term;
(C) The West Virginia Independent Colleges and Universities
appoints one member to a one-year term; and
(D) The West Virginia School Counselor Association appoints
one member to a two-year term.
(4) After the initial terms are completed, appointments are
made as follows:
(A) Members are appointed for three-year terms; and
(B) Members are eligible to succeed themselves for one
additional consecutive term.
(5) The term of each member begins on July 1 of the year in
which the appointment is made and ends on June 30 of the year in
which the appointment expires.
(e) The first meeting of the advisory board shall be called by
the Vice Chancellor for Administration, at which time the members
elect a chairperson for an initial term ending on July 31, 2010.
The chairperson may succeed himself or herself for an additional
one-year term as chairperson. Thereafter, the term of the
chairperson is for one year beginning on August 1 of the year in which elected and ending on July 31 of the following year. No
member may serve more than two consecutive terms as chairperson.
(f) In the event of a vacancy, a successor shall be appointed
by the entity which appointed the vacating appointee for the
unexpired term of the vacating appointee. A person appointed to
fill a vacancy is eligible for reappointment for one additional
consecutive term unless the time remaining in the unexpired term is
less than six months in which case the person filling the vacancy
is eligible for reappointment for two additional terms.
(f) (g) Members of the advisory board serve without
compensation, but are entitled to reimbursement by the commission
for expenses, including travel expenses, which are actually
incurred by the member in the official conduct of the business of
the advisory board. Members are reimbursed in a manner consistent
with rules of the Higher Education Policy Commission.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE
SCHOLARSHIP PROGRAM.
§18C-7-3. Definitions.
(a) General. -- For the purposes of this article, terms have
the meaning ascribed to them in section two, article one of this
chapter, unless the context in which the term is used clearly
requires a different meaning or a specific definition is provided
in this section.
(b) Definitions. --
(a) (1) "Eligible institution" means:
(1) (A) A state institution of higher education as defined in
section two, article one, chapter eighteen-b of this code;
(2) (B) Alderson-Broaddus College, Appalachian Bible College,
Bethany College, Davis and Elkins College, Mountain State
University, Ohio Valley University, the University of Charleston,
West Virginia Wesleyan College and Wheeling Jesuit University, all
in West Virginia. Any institution listed in this subdivision
ceases to be an eligible institution if it meets either of the
following conditions:
(A) (i) Loses regional accreditation; or
(B) (ii) Changes its status as a private, not for profit
institution.
(3) (C) Any other public or private regionally accredited
institution in this state, public or private, approved by the board
commission.
(b) "Board" means the West Virginia PROMISE Scholarship Board
of the West Virginia PROMISE Scholarship Program as provided for in
section four of this article.
(c) (2) "Tuition" means the quarter, semester or term charges
imposed by a an eligible state institution of higher education and,
additionally, all mandatory fees required as a condition of
enrollment by all students. For the purposes of this article, the
following conditions apply:
(A) West Virginia University, Potomac State College, and West
Virginia University Institute of Technology are considered separate
institutions for purposes of determining tuition rates; and
(B) The tuition amount paid by undergraduate health sciences
students at West Virginia University is considered to be the same
as the amount of tuition paid by all other West Virginia University
undergraduate students.
(d) (3) "Enrolled" means either currently enrolled or in the
process of enrolling in an eligible institution.
§18C-7-4.
Dissolution of the PROMISE Scholarship Board; transfer
of funds.
(a) The West Virginia PROMISE Scholarship Board is comprised
of fifteen members. Any member appointed by the Governor prior to
the effective date of this section may continue to serve the term
for which the member has been appointed: Provided, That by the
first day of April, two thousand seven, and thereafter, the
membership of the board is comprised as follows:
(1) The chairperson of the commission or a designee who is a
member of the commission;
(2) The chancellor of the commission or his or her designee;
(3) The State Superintendent of Schools or his or her
designee;
(4) The Secretary of Education and the Arts;
(5) The State Treasurer or his or her designee;
(6) The President of the West Virginia Association of Student
Financial Aid Administrators;
(7) The Executive Director of the Governor's Workforce
Investment Division;
(8) Eight at-large members, appointed by the Governor with the advice and consent of the Senate:
(A) One of the eight at-large members has knowledge, skill and
expertise in state and federal student financial aid policy and
management;
(B) Seven of the eight at-large members represent the state's
business and economic community and have knowledge, skill and
experience in an academic, business or financial field.
(C) The eight at-large members shall be residents of the
state. No more than five of the eight at-large members may be from
the same political party. No more than three of the eight at-large
members may be from the same congressional district.
(b) At-large members serve a term of four years and may be
reappointed at the expiration of their terms. In the event of a
vacancy among at-large members, the Governor shall appoint a person
representing the same interests to fill the unexpired term. A
person appointed to fill a vacancy shall be appointed only for the
remainder of that term and is eligible for reappointment. Unless
a vacancy occurs due to death, resignation or removal pursuant to
subsection (e) of this section, an at-large member of the board
shall continue to serve until a successor has been appointed and
qualified as provided in subsection (a) of this section. All terms
are for four years.
(c) Members of the board shall serve without compensation, but
shall be reimbursed by the Office of the Secretary of Education and
the Arts for expenses, including travel expenses, actually incurred
by a member in the official conduct of the business of the board at the same rate as is paid the employees of the state.
(d) The Secretary of Education and the Arts is the chairperson
and presiding officer of the board. A majority of the members of
the board constitute a quorum for the transaction of business.
(e) The at-large members appointed by the Governor may be
removed by the Governor for official misconduct, incompetence,
neglect of duty or gross immorality and then only in the manner
prescribed by law for the removal by the Governor of the state
elective officers in accordance with section five, article six,
chapter six of this code.
(a) The West Virginia PROMISE Scholarship Board is hereby
dissolved.
(b) All funds administered by the former PROMISE Scholarship
Board are administered by the Higher Education Policy Commission.
§18C-7-5. Powers and duties of the West Virginia Higher Education
Policy Commission regarding the PROMISE Scholarship.
(a) Powers of board commission. -- In addition to the powers
granted by any other provision of this article code, the board
commission has the powers necessary or convenient to carry out the
purposes and provisions of this article including, but not limited
to, the following express powers:
(1) To adopt and amend bylaws;
(2) (1) To propose promulgate legislative rules to the
commission for promulgation in accordance with the provisions of
article three-a, chapter twenty-nine-a of this code to effectuate
the purposes of this article;
(3) (2) To invest any of its funds at the board's discretion,
the funds of the West Virginia PROMISE Scholarship Fund established
in section seven of this article or the PROMISE Scholarship
Supplemental Fund established in section eight of this article with
the West Virginia Investment Management Board in accordance with
the provisions of article six, chapter twelve of this code. Any
investments made under pursuant to this article shall be made with
the care, skill, prudence and diligence under the circumstances
then prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of conducting
an enterprise of a like character and with like aims. Fiduciaries
shall diversify plan investments to the extent permitted by law so
as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so;
(4) (3) To execute contracts and other necessary instruments;
(5) (4) To impose reasonable requirements for residency for
students applying for the PROMISE scholarship. Except as provided
in section four, article one of this chapter, the requirements
shall include that an eligible a student must shall have met the
following requirements to be eligible:
(A) Completed at least one half of the credits required for
high school graduation in a public or private high school in this
state; or
(B) Received instruction in the home or other approved place
pursuant to Exemption B subsection (c), section one, article eight,
chapter eighteen of this code for the two years immediately preceding application.
(C) (5) This subdivision subsection may does not be construed
to establish residency requirements for matriculation or fee
payment purposes at state institutions of higher education;
(6) (6) To contract for necessary goods and services, to
employ necessary personnel and to engage the services of private
persons for administrative and technical assistance in carrying out
the responsibilities of the scholarship program. Any services
provided or secured to implement or administer the provisions of
this section remain under the direction and authority of the vice
chancellor for administration.
(A) The board is encouraged to utilize the employees of the
Vice Chancellor for Administration to provide administrative and
technical assistance.
(B) Any services provided for the board by such employees
remain under the direction and authority of the vice chancellor.
(7) To solicit and accept gifts, including bequests or other
testamentary gifts made by will, trust or other disposition,
grants, loans and other aid from any source and to participate in
any federal, state or local governmental programs in carrying out
the purposes of this article;
(8) To define the terms and conditions under which
scholarships are awarded with the minimum requirements being set
forth in section six of this article; and
(9) To establish other policies, procedures and criteria
necessary to implement and administer the provisions of this article.
(b) Duties of board commission. -- In addition to any duty
required by any other provision of this article code, the board
commission has the following responsibilities:
(1) To operate the program in a fiscally responsible manner
and within the limits of available funds;
(2) To operate the PROMISE Scholarship program as a merit-
based program;
(3) To raise adjust academic eligibility requirements before
taking any other steps to limit student awards should projections
indicate that available funds will not be sufficient to cover
future costs; and
(4) To maintain contact with graduates who have received
PROMISE scholarships and to provide a written statement of intent
to recipients who are selected to receive a PROMISE scholarship
after the effective date of this section notifying them that
acceptance of the scholarship entails a responsibility to supply
the following:
(A) information requested by the board commission to determine
the number and percentage of recipients who meet the following
conditions:
(i) (i) Continue to live in West Virginia after graduation;
(ii) (ii) Obtain employment in West Virginia after
graduation; and
(iii) (iii) Enroll in post-graduate education programs. and
(B) For PROMISE scholars who enroll in post-graduate education programs, the name of the state in which each post-graduate
institution is located; and
(B) (C) Such other relevant information as the board
commission may reasonably request to implement the provisions of
this subdivision.
(5) To analyze and use the data collected pursuant to
subdivision (4) of this subsection for the following purposes, and:
(A) Report the findings annually to the Joint Standing
Committee on Education by the tenth day of January, two thousand
seven and annually thereafter Legislative Oversight Commission on
Education Accountability; and
(B) Make annual recommendations annually to the Joint Standing
Committee on Education Legislative Oversight Commission on
Education Accountability regarding any actions the board commission
considers necessary or expedient to encourage PROMISE recipients to
live and work in the state after graduation.
§18C-7-6. Promise scholarship program requirements; legislative
rule.
(a) A PROMISE scholarship annual award meets the following
conditions:
(1) Equals but does not exceed the cost of tuition for a
student enrolled in a state institution of higher education;
(2) Equals an amount determined by the board, but not to
exceed the cost of tuition at state institutions of higher
education, for a student enrolled in an eligible institution that
is not a state institution of higher education;
(1) For a student enrolled in a state institution of higher
education, the annual award is equal to the lesser of the cost of
tuition or $4,750 except as follows:
(A) A student who was awarded and used a PROMISE scholarship
annual award prior to January 1, 2009, continues to receive the
annual award calculated under the same terms and conditions which
applied on the day before the effective date of this article; and
(B) A student who was awarded and used a PROMISE scholarship
annual award for the term beginning after January 1, 2009, but
before the effective date of this article, continues to receive the
annual award calculated under the same terms and conditions which
applied on the day before the effective date of this article.
(2) For a student enrolled in an eligible institution other
than a state institution of higher education, the annual award is
equal to, but may not exceed, the lesser of the cost of tuition or
$4,750, except as follows:
(A) A student who was awarded and used a PROMISE scholarship
annual award prior to January 1, 2009, continues to receive the
annual award calculated under the same terms and conditions which
applied on the day before the effective date of this article; and
(B) A student who was awarded and used a PROMISE scholarship
annual award for the term beginning after January 1, 2009, but
before the effective date of this article, continues to receive the
annual award amount calculated under the same terms and conditions
which applied on the day before the effective date of this article.
(3) The annual award may exceed $4,750 if the commission determines that adequate funds are available, but in any case, may
not be greater than the actual cost of tuition.
(3) Is (4) The annual award shall be used by an eligible
institution to supplement, but may not to supplant, a tuition and
fee waiver for which the individual is eligible pursuant to
sections five, six-a, or seven or seven-b, article ten, chapter
eighteen-b of this code.
(b) The total cost of all scholarships awarded by the board
commission in any year may not exceed the amount of funds available
to the board commission during that fiscal year.
(c) An individual shall meet the following conditions in order
to be eligible to receive a PROMISE scholarship award:
(1) Submit a scholarship award application to the board
commission:
(A) Within two years of graduating from high school or within
two years of acquiring a General Equivalency Degree if provided
instruction in the home or other approved place pursuant to
Exemption B subsection (c), section one, article eight, chapter
eighteen of this code; or
(B) Within seven years of initially entering military service,
and within one year of discharge from such military service, if the
individual has entered the United States armed services within two
years after graduating from high school;
(2) Apply for and submit to the board a Free Application for
Federal Student Aid;
(3) Maintain a grade point average of at least 3.0 on a 4.0 grading scale in the required core and elective course work
necessary to prepare students for success in post-secondary
education at the associate and baccalaureate degree levels as
determined by the board commission, if the individual has completed
not more than one semester or term at an institution of higher
education, excluding credits earned in advanced placement,
international baccalaureate, dual credit and comparable courses
while the student is enrolled in high school;
(4) Maintain appropriate academic progress toward the
completion of a degree at the undergraduate education level as
determined by the board commission if the individual has completed
more than one semester or term at an institution of higher
education, excluding credits earned in advanced placement,
international baccalaureate, dual credit and comparable courses
while the student is enrolled in high school;
(5) Meet additional objective standards as the board
commission considers necessary to promote academic excellence and
to maintain the financial stability of the fund;
(6) Enroll in an eligible institution. Any A student enrolled
at an eligible institution who receives a PROMISE scholarship award
may retain and renew the scholarship to complete his or her
undergraduate education at that institution, or any other eligible
institution under the following circumstances:
(A) If The institution at which the student is enrolled loses
its status as an eligible institution pursuant to the provisions of
subdivision (2), subsection (a), section three subdivision (1), subsection (b) of this article; and
(B) If The student meets all other renewal requirements of
this code and of board commission rules.
(7) It is the intent of the Legislature that the board
commission shall strongly encourage prospective candidates for the
PROMISE scholarship to perform at least twenty hours of unpaid
community service while in high school to help prepare them for
success in post-graduate post-secondary education. The community
service may include, but is not limited to, participation with
nonprofit, governmental or community-based organizations designed
to with any or all of the following purposes:
(A) Improve Improving the quality of life for community
residents;
(B) Meet Meeting the needs of community residents; or
(C) Foster Fostering civic responsibility.
(d) The board shall recommend a legislative rule to the
commission to implement the provisions of this article. The
commission shall promulgate a legislative rule in accordance with
the provisions of article three-a, chapter twenty-nine-a of this
code.
(1) The rule shall include at least the following provisions:
(A) The amount of a PROMISE scholarship award may not exceed
the cost of tuition at state institutions of higher education;
(B) (A) The amount of a PROMISE scholarship award in
combination with aid from all other sources may not exceed the cost
of education at the institution the recipient is attending. This provision does not apply to members of the West Virginia National
Guard, recipients of an Underwood-Smith teacher scholarship, and
recipients of a West Virginia engineering, science and technology
scholarship;
(C) (B) Additional objective standards as the board commission
considers necessary:
(i) To promote academic excellence;
(ii) To maintain the financial stability of the fund; and
(iii) To operate the program within the limits of available
funds.
(D) (C) Provisions for making the highest and best use of the
PROMISE Scholarship Program in conjunction with the West Virginia
Prepaid Tuition Trust Act West Virginia College Prepaid Tuition and
Savings Program Act set forth in article thirty, chapter eighteen
of this code;
(E) (D) A provision defining the relationship of PROMISE
scholarship awards to all other sources of student financial aid to
ensure maximum coordination. The provision shall include the
following:
(i) Methods to maximize student eligibility for federal
student financial aid;
(ii) A requirement that PROMISE scholarship awards not
supplant tuition and fee waivers; and
(iii) Clarification of the relationship between the PROMISE
Scholarship Program, tuition savings plans and other state funded
student financial aid programs;
(F) (E) A method for awarding scholarships within the limits
of available appropriations, including circumstances when program
funds are not sufficient to provide awards to all eligible
applicants. The board commission may not utilize use any of the
following methods:
(i) Making the Providing for an annual PROMISE scholarship
award for an amount that is less than the cost of full tuition for
a student enrolled in a state institution of higher education
amounts provided for in this section; or
(ii) Eliminating any current recipient from eligibility; and
(G) (F) A method for applicants to appeal determinations of
eligibility and renewal.
(2) The rule may provide for or require the following at the
board's commission's discretion:
(A) Requiring repayment of the amount of the scholarship, in
whole or in part, if a scholarship recipient chooses to work
outside the state after graduation. : Provided, That The rule may
not require a recipient to repay a scholarship, in whole or in
part, unless the prospective recipient has been informed of this
requirement in writing before initial acceptance of the PROMISE
scholarship award;
(B) Targeting a portion of the scholarship funds to be used
for applicants enrolled in an engineering, science, technology or
other designated program;
(C) Determining what other sources of funding for higher
education are to be deducted from the PROMISE scholarship award; and
(D) Providing additional criteria as determined by the board
commission.
(3) The Legislature finds that an emergency exists and,
therefore, the board commission shall file a rule to implement the
provisions of this section as an emergency rule pursuant to the
provisions of article three-a, chapter twenty-nine-a of this code.
The rule is subject to the prior approval of the Legislative
Oversight Commission on Education Accountability.
(4) Any rule promulgated by the commission pursuant to
previous enactments of this article in effect on the effective date
of the amendment and reenactment of this article in the year 2009,
remains in effect until amended, modified, repealed or replaced by
the commission.
§18C-7-7. West Virginia PROMISE Scholarship Fund created.
(a) The special revenue fund in the State Treasury designated
and known as the "PROMISE Scholarship Fund" is continued. The fund
consists of moneys from the following sources:
(1) All appropriations to the fund from the West Virginia
lottery, video lottery and taxes on amusement devices;
(2) All appropriations by the Legislature for the PROMISE
Scholarship Fund;
(3) Any gifts, grants or contributions received for the
PROMISE Scholarship Program; and
(4) All interest or other income earned from investment of the
fund.
(b) The allocations to the fund are subject to appropriation
by the Legislature. Nothing in this article requires any specific
level of funding by the Legislature nor guarantees nor entitles any
individual to any benefit or grant of funds.
(c) For the fiscal year beginning July 1, 2006, it is the
intent of the Legislature that the aggregate of the amount of
moneys transferred to the fund pursuant to section eighteen-a,
article twenty-two, chapter twenty-nine of this code, and such any
other amounts of public moneys that may be transferred to the fund
by appropriation of the Legislature, shall equal, but may not
exceed, $40 million. For each fiscal year thereafter until and
including the fiscal year ending June 30, 2011, it is the intent of
the Legislature that this aggregate be an amount two four percent
greater than the aggregate established by this subsection for the
prior fiscal year. For the fiscal year beginning July 1, 2011, and
in each fiscal year thereafter, it is the intent of the Legislature
that this aggregate not exceed the aggregate established by this
subsection for the fiscal year beginning July 1, 2011.
(d) The board commission may expend the moneys in the fund to
implement the provisions of this article.
§18C-7-8. PROMISE Scholarship Supplemental Fund recreated, and
promulgation of rules.
(a) The Legislature recognizes that the PROMISE scholarship
program may lead to an increased number of individuals attending
the state institutions of higher education, and therefore, it may
contribute to increases in expenses greater than the additional tuition income generated by increased enrollment. Therefore, there
is hereby created a special revenue fund in the State Treasury
which shall be designated and known as the "PROMISE Scholarship
Supplemental Fund." The fund shall consist of all appropriations
to the fund and all interest earned from the investment of the fund
and any gifts, grants or contributions received by the fund. The
board commission shall expend the moneys in this fund to implement
the provisions of this article and may only expend the moneys for
state institutions of higher education.
(b) The board commission shall promulgate rules for
administering the fund in accordance with article three-a, chapter
twenty-nine-a of this code. The rules shall include the following:
(1) Provisions for distributing the moneys from the fund to
state institutions of higher education: Provided, That The rule or
rules shall require that the funds shall be divided among the state
institutions of higher education in a reasonable manner to reflect
the actual distribution of PROMISE scholarship students among the
institutions; and
(2) A procedure for submitting a budget request to the
Governor.: Provided, That Nothing in this article shall require
requires any appropriation by the Legislature.
CHAPTER 29. MISCELLANEOUS BOARDS AND OFFICERS.
ARTICLE 22. STATE LOTTERY ACT.
§29-22-18a. State Excess Lottery Revenue Fund.
(a) There is continued a special revenue fund within the State
Lottery Fund in the State Treasury which is designated and known as the State Excess Lottery Revenue Fund. The fund consists of all
appropriations to the fund and all interest earned from investment
of the fund and any gifts, grants or contributions received by the
fund. All revenues received under the provisions of sections ten-b
and ten-c, article twenty-two-a of this chapter and under article
twenty-two-b of this chapter, except the amounts due the commission
under subdivision (1), subsection (a), section one thousand four
hundred eight, article twenty-two-b of this chapter, shall be
deposited in the State Treasury and placed into the State Excess
Lottery Revenue Fund. The revenue shall be disbursed in the manner
provided in this section for the purposes stated in this section
and shall not be treated by the Auditor and the State Treasurer as
part of the general revenue of the state.
(b) For the fiscal year beginning July 1, 2002, the commission
shall deposit: (1)$65 million into the subaccount of the State
Excess Lottery Revenue Fund hereby created in the State Treasury to
be known as the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2) $10 million into the
Education Improvement Fund for appropriation by the Legislature to
the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (d) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $20 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of revenue bonds; (5) $40 million into the West Virginia
Infrastructure Fund created in section nine, article fifteen-a,
chapter thirty-one of this code to be spent in accordance with the
provisions of said article; (6) $10 million into the Higher
Education Improvement Fund for Higher Education; and (7) $5 million
into the State Park Improvement Fund for Park Improvements. For
the fiscal year beginning July 1, 2003, the commission shall
deposit: (1) $65 million into the General Purpose Account to be
expended pursuant to appropriation of the Legislature; (2) $17
million into the Education Improvement Fund for appropriation by
the Legislature to the PROMISE Scholarship Fund created in section
seven, article seven, chapter eighteen-c of this code; (3) $19
million into the Economic Development Project Fund created in
subsection (d) of this section for the issuance of revenue bonds
and to be spent in accordance with the provisions of said
subsection; (4) $20 million into the School Building Debt Service
Fund created in section six, article nine-d, chapter eighteen of
this code for the issuance of revenue bonds; (5) $40 million into
the West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) $10 million
into the Higher Education Improvement Fund for Higher Education;
and (7) $5 million into the State Park Improvement Fund for Park
Improvements.
(c) For the fiscal year beginning July 1, 2004, and subsequent
fiscal years, the commission shall deposit: (1) $65 million into the General Purpose Account to be expended pursuant to
appropriation of the Legislature; (2)
twenty-seven $29 million into
the Education Improvement Fund for appropriation by the Legislature
to the PROMISE Scholarship Fund created in section seven, article
seven, chapter eighteen-c of this code; (3) $19 million into the
Economic Development Project Fund created in subsection (d) of this
section for the issuance of revenue bonds and to be spent in
accordance with the provisions of said subsection; (4) $19 million
into the School Building Debt Service Fund created in section six,
article nine-d, chapter eighteen of this code for the issuance of
revenue bonds:
Provided, That for the fiscal year beginning July
1, 2008, and subsequent fiscal years, no moneys shall be deposited
in the School Building Debt Service Fund pursuant to this
subsection and instead $19 million shall be deposited into the
Excess Lottery School Building Debt Service Fund; (5) $40 million
into the West Virginia Infrastructure Fund created in section nine,
article fifteen-a, chapter thirty-one of this code to be spent in
accordance with the provisions of said article; (6) $10 million
into the Higher Education Improvement Fund for Higher Education;
and (7) $5 million into the State Park Improvement Fund for Park
Improvements. No portion of the distributions made as provided in
this subsection and subsection (b) of this section, except
distributions made in connection with bonds issued under subsection
(d) of this section, may be used to pay debt service on bonded
indebtedness until after the Legislature expressly authorizes
issuance of the bonds and payment of debt service on the bonds through statutory enactment or the adoption of a concurrent
resolution by both houses of the Legislature. Until subsequent
legislative enactment or adoption of a resolution that expressly
authorizes issuance of the bonds and payment of debt service on the
bonds with funds distributed under this subsection and subsection
(b) of this section, except distributions made in connection with
bonds issued under subsection (d) of this section, the
distributions may be used only to fund capital improvements that
are not financed by bonds and only pursuant to appropriation of the
Legislature.
(d) The Legislature finds and declares that in order to
attract new business, commerce and industry to this state, to
retain existing business and industry providing the citizens of
this state with economic security and to advance the business
prosperity of this state and the economic welfare of the citizens
of this state, it is necessary to provide public financial support
for constructing, equipping, improving and maintaining economic
development projects, capital improvement projects and
infrastructure which promote economic development in this state.
(1) The West Virginia Economic Development Authority created
and provided
for in article fifteen, chapter thirty-one of this
code shall, by resolution, in accordance with the provisions of
this article and article fifteen, chapter thirty-one of this code,
and upon direction of the Governor, issue revenue bonds of the
Economic Development Authority in no more than two series to pay
for all or a portion of the cost of constructing, equipping, improving or maintaining projects under this section or to refund
the bonds at the discretion of the authority. Any revenue bonds
issued on or after July 1, 2002, which are secured by state excess
lottery revenue proceeds shall mature at a time or times not
exceeding thirty years from their respective dates. The principal
of and the interest and redemption premium, if any, on the bonds
shall be payable solely from the special fund provided in this
section for the payment.
(2) There is continued in the State Treasury a special revenue
fund named the Economic Development Project Fund into which shall
be deposited on and after July 1, 2002, the amounts to be deposited
in said fund as specified in subsections (b) and (c) of this
section. The Economic Development Project Fund shall consist of
all such moneys, all appropriations to the fund, all interest
earned from investment of the fund and any gifts, grants or
contributions received by the fund. All amounts deposited in the
fund shall be pledged to the repayment of the principal, interest
and redemption premium, if any, on any revenue bonds or refunding
revenue bonds authorized by this section, including any and all
commercially customary and reasonable costs and expenses which may
be incurred in connection with the issuance, refunding, redemption
or defeasance thereof. The West Virginia Economic Development
Authority may further provide in the resolution and in the trust
agreement for priorities on the revenues paid into the Economic
Development Project Fund as may be necessary for the protection of
the prior rights of the holders of bonds issued at different times under the provisions of this section. The bonds issued pursuant to
this subsection shall be separate from all other bonds which may be
or have been issued, from time to time, under the provisions of
this article.
(3) After the West Virginia Economic Development Authority has
issued bonds authorized by this section and after the requirements
of all funds have been satisfied, including any coverage and
reserve funds established in connection with the bonds issued
pursuant to this subsection, any balance remaining in the Economic
Development Project Fund may be used for the redemption of any of
the outstanding bonds issued under this subsection which, by their
terms, are then redeemable or for the purchase of the outstanding
bonds at the market price, but not to exceed the price, if any, at
which redeemable, and all bonds redeemed or purchased shall be
immediately canceled and shall not again be issued.
(4) Bonds issued under this subsection shall state on their
face that the bonds do not constitute a debt of the State of West
Virginia; that payment of the bonds, interest and charges thereon
cannot become an obligation of the State of West Virginia; and that
the bondholders' remedies are limited in all respects to the
Special Revenue Fund established in this subsection for the
liquidation of the bonds.
(5) The West Virginia Economic Development Authority shall
expend the bond proceeds from the revenue bond issues authorized
and directed by this section for such projects as may be certified
under the provision of this subsection:
Provided, That the bond proceeds shall be expended in accordance with the requirements and
provisions of article five-a, chapter twenty-one of this code and
either article twenty-two or twenty-two-a, chapter five of this
code, as the case may be:
Provided, however, That if such bond
proceeds are expended pursuant to article twenty-two-a, chapter
five of this code and if the Design-Build Board created under said
article determines that the execution of a design-build contract in
connection with a project is appropriate pursuant to the criteria
set forth in said article and that a competitive bidding process
was used in selecting the design builder and awarding such
contract, such determination shall be conclusive for all purposes
and shall be deemed to satisfy all the requirements of said
article.
(6) For the purpose of certifying the projects that will
receive funds from the bond proceeds, a committee is hereby
established and comprised of the Governor, or his or her designee,
the Secretary of the Department of Revenue, the Executive Director
of the West Virginia Development Office and six persons appointed
by the Governor:
Provided, That at least one citizen member must
be from each of the state's three congressional districts. The
committee shall meet as often as necessary and make certifications
from bond proceeds in accordance with this subsection. The
committee shall meet within thirty days of the effective date of
this section.
(7) Applications for grants submitted on or before July 1,
2002, shall be considered refiled with the committee. Within ten days from the effective date of this section as amended in the year
2003, the lead applicant shall file with the committee any
amendments to the original application that may be necessary to
properly reflect changes in facts and circumstances since the
application was originally filed with the committee.
(8) When determining whether or not to certify a project, the
committee shall take into consideration the following:
(A) The ability of the project to leverage other sources of
funding;
(B) Whether funding for the amount requested in the grant
application is or reasonably should be available from commercial
sources;
(C) The ability of the project to create or retain jobs,
considering the number of jobs, the type of jobs, whether benefits
are or will be paid, the type of benefits involved and the
compensation reasonably anticipated to be paid persons filling new
jobs or the compensation currently paid to persons whose jobs would
be retained;
(D) Whether the project will promote economic development in
the region and the type of economic development that will be
promoted;
(E) The type of capital investments to be made with bond
proceeds and the useful life of the capital investments; and
(F) Whether the project is in the best interest of the public.
(9) No grant may be awarded to an individual or other private
person or entity. Grants may be awarded only to an agency, instrumentality or political subdivision of this state or to an
agency or instrumentality of a political subdivision of this state.
The project of an individual or private person or entity may
be certified to receive a low-interest loan paid from bond
proceeds. The terms and conditions of the loan, including, but not
limited to, the rate of interest to be paid and the period of the
repayment, shall be determined by the Economic Development
Authority after considering all applicable facts and circumstances.
(10) Prior to making each certification, the committee shall
conduct at least one public hearing, which may be held outside of
Kanawha County. Notice of the time, place, date and purpose of the
hearing shall be published in at least one newspaper in each of the
three congressional districts at least fourteen days prior to the
date of the public hearing.
(11) The committee may not certify a project unless the
committee finds that the project is in the public interest and the
grant will be used for a public purpose. For purposes of this
subsection, projects in the public interest and for a public
purpose include, but are not limited to:
(A) Sports arenas, fields, parks, stadiums and other sports
and sports-related facilities;
(B) Health clinics and other health facilities;
(C) Traditional infrastructure, such as water and wastewater
treatment facilities, pumping facilities and transmission lines;
(D) State-of-the-art telecommunications infrastructure;
(E) Biotechnical incubators, development centers and facilities;
(F) Industrial parks, including construction of roads, sewer,
water, lighting and other facilities;
(G) Improvements at state parks, such as construction,
expansion or extensive renovation of lodges, cabins, conference
facilities and restaurants;
(H) Railroad bridges, switches and track extension or spurs on
public or private land necessary to retain existing businesses or
attract new businesses;
(I) Recreational facilities, such as amphitheaters, walking
and hiking trails, bike trails, picnic facilities, restrooms, boat
docking and fishing piers, basketball and tennis courts, and
baseball, football and soccer fields;
(J) State-owned buildings that are registered on the National
Register of Historic Places;
(K) Retail facilities, including related service, parking and
transportation facilities, appropriate lighting, landscaping and
security systems to revitalize decaying downtown areas; and
(L) Other facilities that promote or enhance economic
development, educational opportunities or tourism opportunities
thereby promoting the general welfare of this state and its
residents.
(12) Prior to the issuance of bonds under this subsection, the
committee shall certify to the Economic Development Authority a
list of those certified projects that will receive funds from the
proceeds of the bonds. Once certified, the list may not thereafter be altered or amended other than by legislative enactment.
(13) If any proceeds from sale of bonds remain after paying
costs and making grants and loans as provided in this subsection,
the surplus may be deposited in an account created in the State
Treasury to be known as the Economic Development Project Bridge
Loan Fund to be administered by the Economic Development Authority
created in article fifteen, chapter thirty-one of this code.
Expenditures from the fund are not authorized from collections but
are to be made only in accordance with appropriation by the
Legislature and in accordance with the provisions of article three,
chapter twelve of this code and upon fulfillment of the provisions
of article two, chapter five-a of this code. Loan repayment
amounts, including the portion attributable to interest, shall be
paid into the fund created in this subdivision.
(e) If the commission receives revenues in an amount that is
not sufficient to fully comply with the requirements of subsections
(b), (c) and (h) of this section, the commission shall first make
the distribution to the Economic Development Project Fund; second,
make the distribution or distributions to the other funds from
which debt service is to be paid; third, make the distribution to
the Education Improvement Fund for appropriation by the Legislature
to the PROMISE Scholarship Fund; and fourth, make the distribution
to the General Purpose Account:
Provided, That, subject to the
provisions of this subsection, to the extent such revenues are not
pledged in support of revenue bonds which are or may be issued,
from time to time, under this section, the revenues shall be distributed on a pro rata basis.
(f) For the fiscal year beginning July 1, 2002, and each
fiscal year thereafter, the commission shall, after meeting the
requirements of subsections (b), (c) and (h) of this section and
after transferring to the State Lottery Fund created under section
eighteen of this article an amount equal to any transfer from the
State Lottery Fund to the Excess Lottery Fund pursuant to
subsection (f), section eighteen of this article, deposit fifty
percent of the amount by which annual gross revenue deposited in
the State Excess Lottery Revenue Fund exceeds $250 million in a
fiscal year in a separate account in the State Lottery Fund to be
available for appropriation by the Legislature.
(g) When bonds are issued for projects under subsection (d) of
this section or for the School Building Authority, infrastructure,
higher education or park improvement purposes described in this
section that are secured by profits from lotteries deposited in the
State Excess Lottery Revenue Fund, the Lottery Director shall
allocate first to the Economic Development Project Fund an amount
equal to one tenth of the projected annual principal, interest and
coverage requirements on any and all revenue bonds issued, or to be
issued, on or after July 1, 2002, as certified to the Lottery
Director; and second, to the fund or funds from which debt service
is paid on bonds issued under this section for the School Building
Authority, infrastructure, higher education and park improvements
an amount equal to one tenth of the projected annual principal,
interest and coverage requirements on any and all revenue bonds issued, or to be issued, on or after April 1, 2002, as certified to
the Lottery Director. In the event there are insufficient funds
available in any month to transfer the amounts required pursuant to
this subsection, the deficiency shall be added to the amount
transferred in the next succeeding month in which revenues are
available to transfer the deficiency.
(h) In fiscal year two thousand four and thereafter, prior to
the distributions provided in subsection (c) of this section, the
Lottery Commission shall deposit into the General Revenue Fund
amounts necessary to provide reimbursement for the refundable
credit allowable under section twenty-one, article twenty-one,
chapter eleven of this code.
(i) (1) The Legislature considers the following as priorities
in the expenditure of any surplus revenue funds:
(A) Providing salary and/or increment increases for
professional educators and public employees;
(B) Providing adequate funding for the Public Employees
Insurance Agency; and
(C) Providing funding to help address the shortage of
qualified teachers and substitutes in areas of need, both in number
of teachers and in subject matter areas.
(2) The provisions of this subsection may not be construed by
any court to require any appropriation or any specific
appropriation or level of funding for the purposes set forth in
this subsection.
(j) The Legislature further directs the Governor to focus resources on the creation of a prescription drug program for senior
citizens by pursuing a Medicaid waiver to offer prescription drug
services to senior citizens; by investigating the establishment of
purchasing agreements with other entities to reduce costs; by
providing discount prices or rebate programs for seniors; by
coordinating programs offered by pharmaceutical manufacturers that
provide reduced cost or free drugs; by coordinating a collaborative
effort among all state agencies to ensure the most efficient and
cost-effective program possible for the senior citizens of this
state; and by working closely with the state's congressional
delegation to ensure that a national program is implemented. The
Legislature further directs that the Governor report his progress
back to the Joint Committee on Government and Finance on an annual
basis beginning in November,
of the year 2001
one until a
comprehensive program has been fully implemented.