COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 431
(By Senators Jackson, Tomblin (Mr. President), Craigo, Wooton,
Chafin, Plymale, Prezioso, Bailey, Hunter, Minard, Walker,
Snyder, Anderson, Dittmar, Kessler, Edgell, Sharpe, Ross,
Schoonover, Love, Mitchell, Ball, Unger, Redd, McCabe, McKenzie,
Sprouse and Minear)
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[Introduced February 4, 1999; referred to the Committee on
Education; and then to the Committee on Finance.]
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A BILL to amend chapter eighteen-c of the code of West Virginia,
one thousand nine hundred thirty-one, as amended, by adding
thereto a new article, designated article six, relating to
establishing the "West Virginia providing real opportunities
for maximizing in-state student excellence scholarship
program"; setting forth findings and purpose; defining terms;
appointment of board; setting forth the powers of the board;
authorizing the board to promulgate rules; setting forth the
minimum requirements for the scholarship; creating the scholarship fund; creating the scholarship program
supplemental fund; and severability of provisions.
Be it enacted by the Legislature of West Virginia:
That chapter eighteen-c of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, be amended by adding
thereto a new article, designated article six, to read as follows:
ARTICLE 6. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE
SCHOLARSHIP PROGRAM.
§18C-6-1. Title.
This article shall be known and may be cited as the "West
Virginia Providing Real Opportunities for Maximizing In-state
Student Excellence (PROMISE) Scholarship Program".
§18C-6-2. Legislative findings and purpose.
The Legislature hereby finds and declares that:
(a) The state's college going rate does not compare favorably
with the member states of the southern regional education board
average nor with the national average;
(b) West Virginia must have an educated work force in order to
attract and retain the high wage, high skill jobs of the next century;
(c) The percentage of West Virginia's adult population over
the age of twenty-five with at least a bachelor's degree is only
fourteen percent and does not compare favorably with the member
states of the southern regional education board average or with the
national average;
(d) Increases in the level of education increases the income
earned by an individual which enhances his or her quality of life;
(e) During the year one thousand nine hundred ninety-seven, an
individual holding a bachelor's degree had an average earned income
which was one hundred seventy-seven percent of the average income
earned by a high school graduate;
(f) Students at all levels should have an incentive to perform
at a high academic level;
(g) There is a need to provide parents with all tools possible
to aid them in helping their children understand the importance of
high achievement in high school and college;
(h) There is a financial need for many students who wish to
attend state institutions of higher education within the state;
(i) The West Virginia higher education grant program is a
vitally important source of financial assistance for needy
residents of the state and should continue to receive strong financial support; and
(j) It is the intent of this article to establish a West
Virginia PROMISE scholarship program to deal effectively with the
findings set forth above.
§18C-6-3. Definitions.
For the purpose of this article, the following terms have the
meanings ascribed to them, unless the context clearly indicates
otherwise:
(a) "Eligible institution" means
(1) A state institution of higher education as is defined in
section two, article one, chapter eighteen-b of this code;
(2) Alderson-Broaddus College, Appalachian Bible College,
Bethany College, the College of West Virginia, Davis and Elkins
College, Ohio Valley College, Salem-Teikyo University, the
University of Charleston, West Virginia Wesleyan College and
Wheeling Jesuit University, all in West Virginia:
Provided, That if
any institution listed in this subdivision is not regionally
accredited, it shall not be included as an eligible institution; or
(3) Any other regionally accredited institution in this state,
public or private, approved by the board;
(b) "Board" means the board of the West Virginia PROMISE
scholarship program as provided in section four of this article; and
(c) "Tuition" means the quarter, semester or term charges
imposed by a state institution of higher education and all
mandatory fees required as a condition of enrollment by all
students.
§18C-6-4. Appointment of board of the PROMISE scholarship
program; compensation; proceedings generally.
(a) The board of the PROMISE scholarship program consists of
thirteen members and shall include the chancellor of the university
of West Virginia board of trustees; the chancellor of the board of
directors of the state college system; the state superintendent of
schools or his or her designee; the secretary of education and the
arts; the chair of the Senate committee on finance or his or her
designee who is a member of the committee; the chair of the House
of Delegates committee on finance or his or her designee who is a
member of the committee; the chair of the Senate committee on
education or his or her designee who is a member of the committee;
the chair of the House of Delegates committee on education or his
or her designee who is a member of the committee; and five other
appointed members with knowledge, skill and experience in an
academic, business or financial field. The five appointed members
shall be residents of the state. The five appointed members shall be appointed by the governor with the advice and consent of the
Senate. No more than three of the five appointed members may be
from the same party. No more than two of the five appointed
members may be from the same congressional district.
(b) Appointed members shall serve a term of five years and may
be reappointed at the expiration of their terms. In the event of
a vacancy among appointed 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 shall be eligible for reappointment.
Unless a vacancy occurs due to death, resignation or removal
pursuant to subsection (e) of this section, an appointed member of
the board shall continue to serve until a successor has been
appointed and qualified as provided for in subsection (a) of this
section. Of the initial appointments, the governor shall appoint
one member to a one-year term, one member to a two-year term, one
member to a three-year term, one member to a four-year term and one
member to a five-year term. Thereafter, all terms shall be for
five 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 chairman
and presiding officer of the board. A majority of the members of
the board constitute a quorum for the transaction of the board's
business.
(e) The 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.
§18C-6-5. Powers of the board.
In addition to the powers granted by any other provision of
this article, the board has the powers necessary or convenient to
carry out the purposes and provisions of this article and the
powers delegated by any other law of the state or any executive
order of the state including, but not limited to, the following
express powers:
(a) To adopt and amend bylaws;
(b) To propose legislative rules 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:
Provided, That the board shall not promulgate emergency rules;
(c) To invest any of its funds at the board's discretion, with
the West Virginia investment management board in accordance with
the provisions of article six, chapter twelve of this code. Any
investments made under 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 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;
(d) To execute contracts and other necessary instruments;
(e) To impose reasonable requirements for residency for
students applying for the PROMISE scholarship. However, nothing in
this subdivision may be construed to establish residency
requirements for matriculation or fee payment purposes at state
institutions of higher education;
(f) 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;
(g) To solicit and accept gifts, including bequests or other
testamentary gifts made by will, trust or other disposition,
grants, loans and other aids from any source or to participate in
any other way in any federal, state or local governmental programs
in carrying out the purposes of this article;
(h) To define the terms and conditions under which
scholarships shall be awarded with the minimum requirements being
set forth in section six of this article; and
(i) To establish other policies, procedures and criteria
necessary to implement and administer the provisions of this
article.
§18C-6-6. Requirements for rules promulgated by the board.
(a) The board shall propose rules which shall include at least
the following:
(1) A scholarship that will pay an amount that does not exceed
the cost of tuition at state institutions of higher education and
may include an allowance for books and supplies;
(2) A requirement that a scholarship in combination with aid
from all other sources shall not exceed the cost of education at
the institution the recipient is attending;
(3) Minimum requirements for eligibility for the scholarship which include;
(A) A provision that a student is only eligible to apply for
a scholarship within two years of the time he or she graduates from
high school:
Provided, That if a student has entered the United
States armed services within two years after he or she graduates
from high school, the student is eligible to apply for a
scholarship within seven years of the time he or she enters
military service:
Provided however, That once discharged from the
military, the student is only eligible to apply for one year from
the date of discharge;
(B) For individuals with zero to fifteen credits from an
institution of higher education, the individual attain at least a
"B" average at the secondary level as defined by the board;
(C) For individuals with more than fifteen credits from an
institution of higher education, the individual attain and maintain
at least a "B" average at the undergraduate education level as
defined by the board; and
(D) For all individuals, additional objective standards as the
board considers necessary to promote academic excellence and to
maintain the financial stability of the fund;
(4) A provision requiring the student to be enrolled in or in the process of enrolling in an eligible institution as defined in
section three of this article;
(5) Provisions for making the highest and best use of the West
Virginia prepaid tuition trust act set forth in article thirty,
chapter eighteen of this code;
(6) A determination of whether to require scholarship
recipients to repay the amount of their scholarship in whole or in
part if they choose to work outside the state after graduation;
(7) A determination whether to require persons to file federal
financial aid forms before they may receive a PROMISE scholarship;
and
(8) A determination of what other sources of funding for
higher education, if any, should be deducted from the PROMISE
scholarship award.
(b) The board shall use the services of the senior
administrator and any employees of the senior administrator in
drafting the rules. The rules shall be submitted to the
legislative oversight commission on education accountability on or
before the first day of December, one thousand nine hundred ninety- nine.
§18C-6-7. West Virginia PROMISE scholarship fund created.
(a) The board shall create an account entitled the "PROMISE Scholarship Fund" to be administered by the board until and unless
the Legislature determines otherwise.
(b) The location of the fund is the office of the secretary of
education and the arts, and the facilities of the office of the
secretary of education and the arts shall be used and employed in
the administration of the fund including, but without limitation
thereto, the keeping of records, the management of bank accounts
and other investments, the transfer of funds and the safekeeping of
securities evidencing investments.
(c) Amounts received by the board from appropriation by the
Legislature or from any other source, public or private, shall be
placed in the fund.
(d) The fund, through the chairman, is authorized to receive
any gift or transfer of property, real or personal of any nature,
from any source as may be approved by the board, or any terms and
conditions as may be imposed by the board:
Provided, That all
property received by the trust shall be converted into cash within
ninety days of receipt.
(e) In order to fulfill the charitable and public purposes of
this article, neither the income nor the property of the fund is
subject to taxation by the state or any of its political
subdivisions.
§18C-6-8. PROMISE scholarship program supplemental fund.
(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 the PROMISE scholarship supplemental fund which
shall apply only to state institutions of higher education.
(b) The board shall promulgate rules for administering the
fund in accordance with article three-a, chapter twenty-nine-a of
this code:
Provided, That the board shall not promulgate emergency
rules. The rules shall include the following:
(1) Provisions for distributing the moneys from the fund to
state institutions of higher education:
Provided, That the
distribution of the moneys from the fund shall be completely
independent of the distributions in accordance with the resource
allocation model and the resource allocation policies:
Provided,
however, 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 any
appropriation by the Legislature.
(c) The location of the fund is the office of the secretary of
education and the arts, and the facilities of the office of the
secretary of education and the arts shall be used and employed in
the administration of the fund including, but without limitation
thereto, the keeping of records, the management of bank accounts
and other investments, the transfer of funds and the safekeeping of
securities evidencing investments.
§18C-6-9. Severability.
If any provision of this article or the application of the
article shall for any reason be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not invalidate the
remainder of the article, but shall be confined in its operation to
the provision directly involved in the controversy in which such
judgment shall have been rendered, and the applicability of the
provision to other persons or circumstances shall not be affected.
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