ENROLLED
H. B. 4049
(By Delegates Campbell, Williams, Perry, Paxton, Spencer,
Crosier, Fragale, Eldridge, Wysong, Leggett and Tansill)
[Passed March 11, 2006; in effect July 1, 2006.]
AN ACT to repeal §18B-14-9 of the Code of West Virginia, 1931, as
amended; to repeal §18C-5-8 of said code; to repeal §18C-7-9
of said code; to repeal §18C-8-1, §18C-8-2 and §18C-8-3 of
said code; to amend and reenact §18-30-6 of said code; to
amend and reenact §18B-1B-2 of said code; to amend and reenact
§18B-4-1 of said code; to amend and reenact §18B-10-1 of said
code; to amend and reenact §18C-1-1, §18C-1-3 and §18C-1-4 of
said code; to amend said code by adding thereto a new section,
designated §18C-1-5; to amend and reenact §18C-5-1, §18C-5-2,
§18C-5-3, §18C-5-4, §18C-5-5 and §18C-5-6 of said code; and to
amend and reenact §18C-7-2, §18C-7-3, §18C-7-4 §18C-7-5,
§18C-7-6 and §18C-7-7 of said code, all relating to higher
education generally; the Higher Education Policy Commission;
student financial aid programs; need-based and merit-based
student financial aid programs; West Virginia Prepaid Tuition
Trust Program; PROMISE Scholarship Program; Higher Education
Grant Program; increasing amount to be transferred annually to Prepaid Tuition Trust Escrow Fund; establishing additional
eligibility requirements for Higher Education Policy
Commission members; requiring coordination among certain
public education entities; deleting certain requirement
relating to supervision of Higher Education Policy Commission
staff; establishing conditions limiting tuition and fee
increases for certain students at certain state institutions
of higher education; providing exceptions to cap on tuition
and fee increases; requiring state institutions of higher
education to provide certain information; requiring report to
Legislative Oversight Commission on Education Accountability
annually; expanding certain legislative findings; establishing
certain legislative intent; defining purposes of state-
supported financial aid programs; expanding eligibility for
PROMISE scholarship awards to certain students attending high
school outside the state; creating the Student Financial Aid
Advisory Board; providing for membership of advisory board;
specifying powers, duties and responsibilities of advisory
board; providing for reimbursement of member expenses;
continuing Higher Education Grant Program; specifying purposes
of grant program; requiring consultation among entities for
student financial aid administration; creating the "higher
education grant fund" special revenue fund; establishing
legislative intent regarding increased levels of appropriation
to the Higher Education Grant Fund and the PROMISE Scholarship
Fund; modifying PROMISE Scholarship eligibility requirements; clarifying flexibility to change PROMISE eligibility
requirements; expanding membership of PROMISE Scholarship
Board of Control; establishing additional eligibility
requirements for members of PROMISE Board; encouraging PROMISE
Board to use certain staff for administrative and technical
support; specifying additional duties of PROMISE Board;
requiring PROMISE Board to report annually to Joint Standing
Committee on Education; specifying limits on certain grant
awards; defining purposes of PROMISE Scholarship Program;
modifying the calculation for determining student financial
aid award levels for certain higher education grant
recipients; defining terms and clarifying the definitions of
certain terms; requiring promulgation of legislative rules and
emergency rule; limiting authority of PROMISE Board to require
scholarship recipients to repay all or part of scholarship
amount; modifying definition of "eligible institution" for
purpose of participating in PROMISE scholarship program;
making technical corrections; and repealing obsolete
provisions.
Be it enacted by the Legislature of West Virginia:
That §18B-14-9 of the Code of West Virginia, 1931, as amended,
be repealed; that §18C-5-8 of said code be repealed; that §18C-7-9
of said code be repealed; that §18C-8-1, §18C-8-2 and §18C-8-3 of
said code be repealed; that §18-30-6 of said code be amended and
reenacted; that §18B-1B-2 of said code be amended and reenacted;
that §18B-4-1 of said code be amended and reenacted; that §18B-10-1 of said code be amended and reenacted; that §18C-1-1, §18C-1-3,
§18C-1-4 of said code be amended and reenacted; that said code be
amended by adding thereto a new section, designated §18C-1-5; that
§18C-5-1, §18C-5-2, §18C-5-3, §18C-5-4, §18C-5-5 and §18C-5-6 of
said code be amended and reenacted; and that §18C-7-2, §18C-7-3,
§18C-7-4, §18C-7-5, §18C-7-6 and §18C-7-7 of said code be amended
and reenacted, all to read as follows:
CHAPTER 18. EDUCATION.
ARTICLE 30. WEST VIRGINIA COLLEGE PREPAID TUITION AND SAVINGS
PROGRAM ACT.
§18-30-6. West Virginia prepaid tuition trust.
(a) The "Prepaid Tuition Trust Fund" is continued within the
accounts held by the State Treasurer for administration by the
board.
(b) the Prepaid Tuition Trust Fund shall continue to receive
all payments from account owners on behalf of beneficiaries of
prepaid tuition contracts or from any other source, public or
private. Earnings derived from the investment of moneys in the
Prepaid Tuition Trust Fund shall remain in the Prepaid Tuition
Trust Fund held in trust in the same manner as payments, except as
refunded, applied for purposes of the beneficiaries, and applied
for purposes of maintaining and administering the prepaid tuition
plan.
(c) The corpus, assets and earnings of the Prepaid Tuition
Trust Fund do not constitute public funds of the state and are available solely for carrying out the purposes of this article.
Any contract entered into by or any obligation of the board on
behalf of and for the benefit of the prepaid tuition plan does not
constitute a debt of the state, but is solely an obligation of the
Prepaid Tuition Trust Fund. The state has no obligation to any
designated beneficiary or any other person as a result of the
prepaid tuition plan. All amounts payable from the Prepaid Tuition
Trust Fund are limited to amounts available in the Prepaid Tuition
Trust Fund.
(d) Nothing in this article or in any prepaid tuition contract
is a promise or guarantee of admission to, continued enrollment in,
or graduation from an eligible educational institution.
(e) The requirements of the provisions of chapter thirty-two
of this code do not apply to the sale of a prepaid tuition contract
by the board, its employees and agents.
(f) The prepaid tuition plan and the Prepaid Tuition Trust
Fund shall continue in existence until terminated by the
Legislature as it determines or by the board upon determining that
continued operation is infeasible. Upon termination of the plan
and after payment of all fees, charges, expenses and penalties, the
assets of the Prepaid Tuition Trust Fund are paid to current
account owners, to the extent possible, on a pro rata basis as
their interests may appear, and any assets presumed abandoned are
reported and remitted to the unclaimed property administrator in
accordance with the Uniform Unclaimed Property Act in article
eight, chapter thirty-six of this code. Any assets then remaining in the Prepaid Tuition Trust Fund shall revert to the state General
Revenue Fund.
(g) Effective the eighth day of March, two thousand three, the
prepaid tuition plan is closed to new contracts until the
Legislature authorizes the plan to reopen. Closing the plan to new
contracts shall not mean the prepaid tuition plan is closed and
shall not affect any prepaid tuition plan contracts in effect on
the eighth day of March, two thousand three. All contract owners
shall continue to pay any amounts due, including without limitation
monthly installments, penalties and fees. Earnings derived from
the investment of moneys in the Prepaid Tuition Trust Fund shall
continue to accrue to the fund until the fund is closed in
accordance with this article.
(h) The board shall continue to have the actuarial soundness
of the Prepaid Tuition Trust Fund evaluated annually.
(i)(1) On or before the first day of December, two thousand
three, and each year thereafter, the chairman of the board shall
submit to the Governor, the President of the Senate, the Speaker of
the House of Delegates, Joint Committee on Government and Finance
and the unclaimed property administrator a report certified by an
actuary of the actuarial status of the Prepaid Tuition Trust Fund
at the end of the fiscal year immediately preceding the date of the
report. In the event the report for fiscal year two thousand three
states there is a projected unfunded liability in the Prepaid
Tuition Trust Fund, the report shall also state the amount needed
for the next fiscal year to eliminate the projected unfunded liability in equal payments over a period of ten fiscal years,
concluding the thirtieth day of June, two thousand thirteen. In
the event the projected unfunded liability of the Prepaid Tuition
Trust Fund increases in subsequent reports, the actuary shall
calculate the amount needed, less any amount in the prepaid tuition
trust escrow fund, to eliminate the projected unfunded liability
over a period the actuary determines is fiscally responsible.
(2) The Prepaid Tuition Trust Escrow Fund is hereby created in
the State Treasury to guarantee payment of prepaid tuition plan
contracts. The board shall invest the Prepaid Tuition Trust Escrow
Fund in accordance with the provisions of this article in fixed
income securities, and all earnings of the escrow fund shall remain
in the escrow fund.
(3) In the event the actuary determines an unfunded liability
exists in the Prepaid Tuition Trust Fund, the report shall certify
the amount of money needed for the next fiscal year to eliminate
the projected unfunded liability pursuant to the provisions of
subdivision (1) of this subsection. The certified amount may not
exceed one million dollars each year. On or before the fifteenth
day of December in which the chairman submitted a report stating
the amount needed for the next fiscal year to eliminate a projected
unfunded liability, the unclaimed property administrator shall
transfer the amount requested, not to exceed one million dollars
each year, from the Unclaimed Property Trust Fund to the Prepaid
Tuition Trust Escrow Fund.
(4) In the event the money in the Prepaid Tuition Trust Fund is insufficient to cover the amount of money needed to meet the
current obligations of the Prepaid Tuition Trust Fund, the board
may withdraw from the Prepaid Tuition Trust Escrow Fund the amount
of money needed to meet current obligations of the Prepaid Tuition
Trust Fund.
(5) Notwithstanding any provision of this code to the
contrary, the Governor, after consultation with the budget office
of the Department of Revenue, may request an appropriation to the
board in the amount of the deficiency to meet the current
obligations of the Prepaid Tuition Trust Fund, in the budget
presented to the next session of the Legislature for its
consideration. The Legislature is not required to make any
appropriation pursuant to this subsection, and the amount of the
deficiency is not a debt or a liability of the state.
(6) As used in this section, "current obligations of the
Prepaid Tuition Trust Fund" means amounts required for the payment
of contract distributions or other obligations of the Prepaid
Tuition Trust Fund, the maintenance of the fund, and operating
expenses for the current fiscal year.
(7) Nothing in this subsection creates an obligation of state
general revenue funds or requires any level of funding by the
Legislature.
(8) After the Prepaid Tuition Trust Fund has been closed and
all moneys paid in accordance with this section, any moneys
remaining in the prepaid tuition trust escrow fund shall be
transferred to the General Revenue Fund and the account closed.
(j) To fulfill the charitable and public purpose of this
article, neither the earnings nor the corpus of the Prepaid Tuition
Trust Fund is subject to taxation by the state or any of its
political subdivisions.
(k) Notwithstanding any provision of this code to the
contrary, money in the Prepaid Tuition Trust Fund is exempt from
creditor process and not subject to attachment, garnishment or
other process; is not available as security or collateral for any
loan, or otherwise subject to alienation, sale, transfer,
assignment, pledge, encumbrance or charge; and is not subject to
seizure, taking, appropriation or application by any legal or
equitable process or operation of law to pay any debt or liability
of any account owner, beneficiary or successor in interest.
(l) The provisions of this section may not be construed to
interfere with the operation of the savings plan authorized under
this article.
CHAPTER 18B. HIGHER EDUCATION.
ARTICLE 1B. HIGHER EDUCATION POLICY COMMISSION.
§18B-1B-2. Composition of commission; terms and qualifications of
members; vacancies; eligibility for reappointment; oath of
office; removal from office.
(a) The commission is comprised of ten members, all of whom
are entitled to vote. The membership of the commission is as
follows:
(1) The Secretary of Education and the Arts, ex officio.
(2) The State Superintendent of Schools, ex officio;
(3) The chair of the West Virginia Council for Community and
Technical College Education, ex officio..
(4) Seven at large members who are citizens of the state,
appointed by the Governor, by and with the advice and consent of
the Senate:
Provided, That prior to appointment, the Governor
shall interview each candidate to assure that the person selected
understands and is committed to achieving the goals and objectives
as set forth in the institutional compacts and in section one-a,
article one of this chapter. The governor shall invite the
president of the Senate, the speaker of the House of Delegates, the
chairs of the Senate and House of Delegates committees on finance
and education and such other legislative leaders as the governor
may determine to participate in interviewing potential candidates.
(b) Each of the at-large members appointed by the Governor
shall represent the public interest and shall be committed to the
legislative intent and goals set forth in state law and policy.
(c) The Governor may not appoint any person to be a member of
the commission who is an officer, employee or member of the council
or an advisory board of any state college or university; an officer
or member of any political party executive committee; the holder of
any other public office or public employment under the government
of this state or any of its political subdivisions; an appointee or
employee of any governing board; or an immediate family member of
any employee under the jurisdiction of the commission, the council
or any governing board.
(d) Of the seven, at-large members appointed by the Governor:
(1) No more than four may belong to the same political party;
(2) At least two shall be appointed from each congressional
district; and
(3) Effective the first day of July, two thousand eight, no
more than one member may serve from the same county.
(e) The at-large members appointed by the Governor serve
overlapping terms of four years.
(f) The Governor shall appoint a member to fill any vacancy
among the seven at-large members, by and with the advice and
consent of the Senate. Any member appointed to fill a vacancy
serves for the unexpired term of the vacating member. The Governor
shall fill the vacancy within thirty days of the occurrence of the
vacancy.
(g) An at-large member appointed by the Governor may not serve
more than two consecutive terms.
(h) Before exercising any authority or performing any duties
as a member of the commission, each member shall qualify as such by
taking and subscribing to the oath of office prescribed by section
five, article IV of the Constitution of West Virginia and the
certificate thereof shall be filed with the secretary of state.
(i) A member of the commission appointed by the Governor may
not be removed from office by the Governor except for official
misconduct, incompetence, neglect of duty or gross immorality and
then only in the manner prescribed by law for the removal of the
state elective officers by the Governor.
ARTICLE 4. GENERAL ADMINISTRATION.
§18B-4-1. Employment of chancellors; designation of staff;
offices.
(a) The council and commission each shall employ a chancellor
to assist in the performance of their respective duties and
responsibilities subject to the following conditions:
(1) Each chancellor serves at the will and pleasure of the
hiring body.
(2) Neither chancellor may hold or retain any other
administrative position within the system of higher education while
employed as chancellor.
(3) Each chancellor is responsible for carrying out the
directives of the body by whom employed and shall work with that
body in developing policy options.
(4)The commission is responsible to the council and the
Chancellor for Community and Technical College Education for
providing services in areas essential to exercising the powers and
duties assigned to the council by law. The commission may not
charge the council any fee for the provision of these essential
services. The service areas include, but are not limited to, legal
services, research, technology, computing, finance and facilities,
academic affairs, telecommunications, human resources, student
services and any other general areas the council considers to be
essential to the exercise of its legal authority. The services are
provided under the general supervision of the Vice Chancellor for Administration.
(5) For the purpose of developing or evaluating policy
options, the chancellors may request the assistance of the
presidents and staff of the institutions under their respective
jurisdictions.
(b) In addition to the staff positions designated in
subdivision (4), subsection (a) of this section, the Vice
Chancellor for Administration, employed pursuant to section two of
this article, serves the offices of the chancellors to discharge
jointly the duties and responsibilities of the council and
commission.
(c) The Vice Chancellor for Health Sciences shall coordinate
the West Virginia University School of Medicine, the Marshall
University School of Medicine and the West Virginia School of
Osteopathic Medicine.
(d) Suitable offices for the vice chancellor of administration
and other staff shall be provided in Charleston.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS
OF HIGHER EDUCATION.
§18B-10-1. Enrollment, tuition and other fees at education
institutions; refund of fees.
(a) Each governing board shall fix tuition and other fees for
each school term for the different classes or categories of
students enrolling at each state institution of higher education
under its jurisdiction and may include among the tuition and fees any one or more of the following as defined in section one-b of
this article:
(1) Tuition and required educational and general fees;
(2) Auxiliary and auxiliary capital fees; and
(3) Required educational and general capital fees.
(b) An institution may establish a single special revenue
account for each of the following classifications of fees:
(1) All tuition and required educational and general fees
collected;
(2) All auxiliary and auxiliary capital fees collected; and
(3) All required educational and general capital fees
collected to support existing systemwide and institutional debt
service and future systemwide and institutional debt service,
capital projects and campus renewal for educational and general
facilities.
(4) Subject to any covenants or restrictions imposed with
respect to revenue bonds payable from such accounts, an institution
may expend funds from each such special revenue account for any
purpose for which funds were collected within that account
regardless of the original purpose for which the funds were
collected.
(c) The purposes for which tuition and fees may be expended
include, but are not limited to, health services, student
activities, recreational, athletic and extracurricular activities.
Additionally, tuition and fees may be used to finance a student's
attorney to perform legal services for students in civil matters at the institutions: Provided, That the legal services are limited
only to those types of cases, programs or services approved by the
administrative head of the institution where the legal services are
to be performed.
(d) The commission and council jointly shall propose a rule
for legislative approval in accordance with the provisions of
article three-a, chapter twenty-nine-a of this code to govern the
fixing, collection and expenditure of tuition and other fees.
(e) The Legislature finds that an emergency exists and,
therefore, the commission and council jointly shall file the rule
required by subsection (d) of this section as an emergency rule
pursuant to the provisions of article three-a, chapter
twenty-nine-a of this code, subject to the prior approval of the
Legislative Oversight Commission on Education Accountability.
(f) The schedule of all tuition and fees, and any changes
therein, shall be entered in the minutes of the meeting of the
appropriate governing board and the board shall file with the
commission or council, or both, as appropriate, and the Legislative
Auditor a certified copy of such schedule and changes.
(g) The boards shall establish the rates to be charged
full-time students, as defined in section one-b of this article,
who are enrolled during a regular academic term.
(1) Undergraduate students taking fewer than twelve credit
hours in a regular term shall have their fees reduced pro rata
based upon one twelfth of the full-time rate per credit hour and
graduate students taking fewer than nine credit hours in a regular term shall have their fees reduced pro rata based upon one ninth of
the full-time rate per credit hour.
(2) Fees for students enrolled in summer terms or other
nontraditional time periods shall be prorated based upon the number
of credit hours for which the student enrolls in accordance with
the above provisions.
(h) All fees are due and payable by the student upon
enrollment and registration for classes except as provided in this
subsection:
(1) The governing boards shall permit fee payments to be made
in installments over the course of the academic term. All fees
shall be paid prior to the awarding of course credit at the end of
the academic term.
(2) The governing boards also shall authorize the acceptance
of credit cards or other payment methods which may be generally
available to students for the payment of fees. The governing boards
may charge the students for the reasonable and customary charges
incurred in accepting credit cards and other methods of payment.
(3) If a governing board determines that a student's finances
are affected adversely by a legal work stoppage, it may allow the
student an additional six months to pay the fees for any academic
term. The governing board shall determine on a case-by-case basis
if the finances of a student are affected adversely.
(4) The commission and council jointly shall propose a rule in
accordance with the provisions of article three-a, chapter
twenty-nine-a of this code, defining conditions under which an institution may offer tuition and fee deferred payment plans
through the institution or through third parties.
(5) An institution may charge interest or fees for any
deferred or installment payment plans.
(i) In addition to the other fees provided in this section,
each governing board may impose, collect and distribute a fee to be
used to finance a nonprofit, student-controlled public interest
research group if the students at the institution demonstrate
support for the increased fee in a manner and method established by
that institution's elected student government. The fee may not be
used to finance litigation against the institution.
(j) Institutions shall retain tuition and fee revenues not
pledged for bonded indebtedness or other purposes in accordance
with the tuition rule proposed by the commission and council
jointly pursuant to this section. The tuition rule shall:
(1) Provide a basis for establishing nonresident tuition and
fees;
(2) Allow institutions to charge different tuition and fees
for different programs;
(3) Provide that a board of governors may propose to the
commission, council or both, as appropriate, a mandatory auxiliary
fee under the following conditions:
(A) The fee shall be approved by the commission, council or
both, as appropriate, and either the students below the senior
level at the institution or the Legislature before becoming
effective;
(B) Increases may not exceed previous state subsidies by more
than ten percent;
(C) The fee may be used only to replace existing state funds
subsidizing auxiliary services such as athletics or bookstores;
(D) If the fee is approved, the amount of the state subsidy
shall be reduced annually by the amount of money generated for the
institution by the fees. All state subsidies for the auxiliary
services shall cease five years from the date the mandatory
auxiliary fee is implemented;
(E) The commission, council or both, as appropriate, shall
certify to the Legislature by the first day of October in the
fiscal year following implementation of the fee, and annually
thereafter, the amount of fees collected for each of the five
years;
(4) Establish methodology, where applicable, to ensure that,
within the appropriate time period under the compact, community and
technical college tuition rates for community and technical college
students in all independently accredited community and technical
colleges will be commensurate with the tuition and fees charged by
their peer institutions.
(k) A penalty may not be imposed by the commission or council
upon any institution based upon the number of nonresidents who
attend the institution unless the commission or council determines
that admission of nonresidents to any institution or program of
study within the institution is impeding unreasonably the ability
of resident students to attend the institution or participate in the programs of the institution. The institutions shall report
annually to the commission or council on the numbers of
nonresidents and such other enrollment information as the
commission or council may request.
(l) Tuition and fee increases of the governing boards, except
for the governing boards of the state institutions of higher
education known as Marshall University and West Virginia
University, are subject to rules adopted by the commission and
council jointly pursuant to this section and in accordance with the
provisions of article three-a, chapter twenty-nine-a of this code.
(1) Subject to the provisions of subdivisions (4) and (8) of
this subsection, a governing board of an institution under the
jurisdiction of the commission may propose tuition and fee
increases of up to nine and one-half percent for undergraduate
resident students for any fiscal year. The nine and one-half
percent total includes the amount of increase over existing tuition
and fees, combined with the amount of any newly established,
specialized fee which may be proposed by a governing board.
(2) A governing board of an institution under the jurisdiction
of the council may propose tuition and fee increases of up to four
and three quarters percent for undergraduate resident students for
any fiscal year. The four and three-quarters percent total includes
the amount of increase over existing tuition and fees, combined
with the amount of any newly established, specialized fee which may
be proposed by a governing board.
(3) The commission or council, as appropriate, shall examine individually each request from a governing board for an increase.
(4) Subject to the provisions of subdivision (8) of this
subsection, the governing boards of Marshall University and West
Virginia University, as these provisions relate to the state
institutions of higher education known as Marshall University and
West Virginia University, each may annually:
(A) Increase tuition and fees for undergraduate resident
students to the maximum allowed by this section without seeking
approval from the commission; and
(B) Set tuition and fee rates for post-baccalaureate resident
students and for all nonresident students, including establishing
regional tuition and fee rates, reciprocity agreements or both.
(C) The provisions of this subdivision do not apply to tuition
and fee rates of the administratively linked institution known as
Marshall Community and Technical College, the administratively
linked institution known as the Community and Technical College at
West Virginia University Institute of Technology, the regional
campus known as West Virginia University at Parkersburg and, until
the first day of July, two thousand seven, the regional campus
known as West Virginia University Institute of Technology.
(5) Any proposed tuition and fee increase for state
institutions of higher education other than the state institutions
of higher education known as Marshall University and West Virginia
University requires the approval of the commission or council, as
appropriate. In determining whether to approve or deny the
governing board's request, the commission or council shall determine the progress the institution has made toward meeting the
conditions outlined in this subdivision and shall make this
determination the predominate factor in its decision. The
commission or council shall consider the degree to which each
institution has met the following conditions:
(A) Has maximized resources available through nonresident
tuition and fee charges to the satisfaction of the commission or
council;
(B) Is consistently achieving the benchmarks established in
the compact of the institution pursuant to the provisions of
article one-a of this chapter;
(C) Is continuously pursuing the statewide goals for
post-secondary education and the statewide compact established in
articles one and one-a of this chapter;
(D) Has demonstrated to the satisfaction of the commission or
council that an increase will be used to maintain high-quality
programs at the institution;
(E) Has demonstrated to the satisfaction of the commission or
council that the institution is making adequate progress toward
achieving the goals for education established by the southern
regional education board; and
(F) To the extent authorized, will increase by up to five
percent the available tuition and fee waivers provided by the
institution. The increased waivers may not be used for athletics.
(6) This section does not require equal increases among
institutions or require any level of increase at an institution.
(7) The commission and council shall report to the Legislative
Oversight Commission on Education Accountability regarding the
basis for each approval or denial as determined using the criteria
established in subdivision (5) of this subsection.
(8) Notwithstanding the provisions of subdivisions (1) and (4)
of this subsection, tuition and fee increases at state institutions
of higher education which are under the jurisdiction of the
commission, including the state institutions of higher education
known as Marshall University and West Virginia University, are
subject to the following conditions:
(A) Institutions may increase tuition and fees for resident,
undergraduate students by no more than an average of seven and
one-half percent per year during any period covering four
consecutive fiscal years, with the first fiscal year of the first
four-fiscal year cycle beginning on the first day of July, two
thousand seven;
(B) The seven and one-half percent average cap does not apply
to an institution for any fiscal year in which the total state base
operating budget appropriations to that institution are less than
the total state base operating budget appropriations in the fiscal
year immediately preceding;
(C) A new capital fee or an increase in an existing capital
fee is excluded from the tuition and fee increase calculation in
this subdivision:
(i) If the new fee or fee increase is approved by an
institutional governing board or by a referendum of an institution's undergraduate students, or both, on or before the
first day of February, two thousand six; or
(ii) If the following conditions are met:
(I) The new fee or fee increase was approved by an
institutional governing board or by a referendum of an
institution's undergraduate students, or both, on or before the
first day of July, two thousand six;
(II) The institution for which the capital fee is approved has
been designated a university pursuant to the provisions of section
six, article two-a of this chapter by the effective date of this
section; and
(III) The institutional board of governors previously oversaw
a community and technical college that achieved independent
accreditation and consequently acquired its own board of governors;
(D) Institutions shall provide, in a timely manner, any data
on tuition and fee increases requested by the staff of the
commission. The commission has the power and the duty to:
(i) Collect such data from any institution under its
jurisdiction; and
(ii) Annually by the first day of July, provide a detailed
analysis of the institutions' compliance with the provisions of
this subdivision to the Legislative Oversight Commission on
Education Accountability.
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.
ARTICLE 1. FINANCIAL ASSISTANCE GENERALLY.
§18C-1-1. Legislative findings; purpose; administration generally.
(a) The Legislature finds:
(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 the state's human talent and resources because
of the inability of many able, but needy, students 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 remain after he or she has
utilized 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 monitor all state and federal student loan,
scholarship and state aid programs which are administered at the
state level in accordance with established guidelines under the
direction of the commission and council and in consultation with
the Higher Education Student Financial Aid Advisory Board.
(d) Such 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 Higher Education Student Assistance Loan Program under
article twenty-two-d, chapter eighteen of this code;
(8) The West Virginia College Prepaid Tuition and Savings
Program under article thirty, chapter eighteen of this code, which
is administered by the State Treasurer;
(9) The state aid programs for students of optometry, pursuant
to article three of this chapter;
(10) The state aid programs for students of veterinary
medicine pursuant to section six-a, article eleven, chapter
eighteen of this code;
(11) Any reciprocal program and contract program for student
aid under sections three and four, article four, chapter eighteen-b
of this code;
(12) Any other state level student aid program in this code;
and
(13) Any federal grant or contract student assistance or
support programs administered at the state level.
§18C-1-3. Additional legislative findings; purpose of financial
aid programs.
(a)
Legislative findings:
(1) Education attainment is inextricably linked to economic
development, and, in the current global economy, the state is
competing not only with other states, but also with other
countries;
(2) The federal government no longer funds student financial
aid as generously as it has in the past. Therefore, the state must
commit to increase both access and affordability to higher
education opportunities for its citizens;
(3) In recent years the state has substantially increased
appropriations to both merit-based and need-based student financial
aid programs;
(4) The ultimate state goal in providing student financial aid
is to create a culture that values education and improves the
quality of the state's workforce, thereby enhancing the quality of
life for its citizens;
(5) The state can provide a successful system of student
financial aid only by balancing the needs of students from all
levels of financial need and academic ability;
(6) A comprehensive system of student financial aid will yield
the maximum return on the state's investment by increasing the skills, qualifications and education achievement of citizens from
all backgrounds; and
(7) Sources of student financial aid can be distinguished as
providing either access or affordability to higher education
opportunities;
(8) Access refers to a student's financial ability to pursue
post-secondary education. Affordability refers a student's freedom
to choose where to attend college based on available resources;
(9) West Virginia is committed to making post-secondary
education both accessible and affordable for its citizens. To this
end, it is essential that the state provide multiple financial aid
programs which accomplish different goals;
(b)
Purposes of financial aid programs:
(1) The West Virginia Higher Education Grant Program is a
need-based program that provides funding primarily to traditional
college-age students who do not have sufficient financial resources
to attempt post-secondary education. This grant program is a
vitally important source of financial assistance for needy
residents of the state and should continue to receive strong
financial support.
(2) The HEAPS Grant Program is a need-based program that
provides funding primarily to non-traditional college students,
including:
(A) Adult students who desire to pursue post-secondary
education on a part-time basis and who do not qualify for other
forms of financial assistance;
(B) Place-bound students, often parents employed full-time,
who require evening and weekend access to college courses; and
(C) Individuals pursuing workforce training or skill
development training necessary to enter the job market quickly.
(3) The Underwood-Smith Teacher Scholarship Program is a
merit-based program that encourages students who have demonstrated
outstanding academic abilities to pursue teaching careers. This
program serves to meet West Virginia's statewide, geographic and
discipline-specific needs for highly qualified teachers.
(4) The West Virginia Engineering, Science and Technology
Scholarship Program is a merit-based program that encourages
talented students to pursue baccalaureate degrees in engineering,
science and technology-related disciplines. This program serves to
increase the size and quality of the pool of individuals pursuing
careers in engineering, science and technology-related fields.
(5) The PROMISE Scholarship Program is a merit-based program
that enhances student achievement by encouraging high school
students to work harder to attain the necessary grades and test
scores to qualify for a PROMISE scholarship and provides an
incentive for the most capable students to attend college in the
state. PROMISE provides affordability to traditional college-age
students.
(c) An appropriate blend of student financial aid programs
provides the state with the necessary tools to educate its
citizenry for a broad range of economic opportunities:
(1) Without proper funding for need-based programs, lower income students may not be able to realize their full potential;
(2) Adults may not obtain the training they need to compete in
the current and future job market;
(3) High-achieving students may not pursue rigorous courses in
high school or attend college in West Virginia, all of which
contribute to devaluing post-secondary education and perpetuating
the culture of educational underachievement; and
(4) The state must continue to strive to support equally the
need-based and merit-based student financial aid programs.
§18C-1-4. Eligibility of commuting students and children of
military personnel for state funded student financial aid,
grants and scholarships.
(a) Notwithstanding any other provision of this code or rule
to the contrary, a student who attended a public or private high
school outside the state is eligible for state funded student
financial aid, grants and scholarships if:
(1) The student meets all other eligibility requirements for
the aid, grant or scholarship; and either
(2) The student resided in West Virginia while attending high
school in another state, and:
(A) The student resided with his or her parent or legal
guardian who:
(i) Was a resident of this state; and
(ii) Had been a resident of this state for at least two years
immediately preceding the student's attendance at the school;
(B) The student commuted during the school term on a daily
basis from this state to the school;
(C) The student is a dependent of the parent or legal guardian
upon which eligibility is based;
(D) The student has not established domicile outside the
state; and
(E) At the discretion of the State Superintendent of Schools,
as defined in section one, article one, chapter eighteen of this
code:
(i) The school is fully accredited in that state to the degree
acceptable to the State Superintendent of Schools; and
(ii) The school's curriculum requirements for graduation are
equivalent to the curriculum requirements for graduation in this
state, or sufficiently similar to those requirements, as determined
by the State Superintendent of Schools; or
(3) The student resided and attended high school in another
state or a United States territory, United States possession or
foreign country and:
(A) The student resided with his or her parent or legal
guardian; and
(B) The student's parent or legal guardian:
(i) Served in the United States armed forces while the student
attended high school in such state, territory, possession or
country;
(ii) Was stationed for military purposes in such state,
territory, possession or country; and
(iii) Maintained legal residence in West Virginia while
stationed in such state, territory, possession or country.
(b) This section may not be construed to alter, amend or
extend any application deadlines or other requirements established
by law or policy.
(c) The provisions of this section expire on the thirtieth day
of June, two thousand ten.
§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, the Vice Chancellor for Administration
and the Executive Director of the PROMISE Scholarship Program 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
programs by increasing the skills, qualifications and education achievement of the citizens receiving the benefits; and
(B) To establish methods for coordinating administration among
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;
(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.
(f) 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 5. HIGHER EDUCATION GRANT PROGRAM.
§18C-5-1. Grant program established; legislative purpose and
intent; rule required.
(a) The Higher Education Grant Program is continued.
(b) It is the policy of the Legislature and the purpose of
this article to continue the Higher Education Grant Program within
the limits of appropriations made therefor from time to time for
such purpose by the Legislature.
(1) The Grant Program is designed to guarantee that the most
able and needy students from all sectors of the state are given the
opportunity to continue their program of self-improvement in an
approved institution of higher education of their choice located in
this state.
(2) The Grant Program is a vitally important source of
financial assistance for needy residents of the state; and
(3) The Grant Program aids lower income students to realize
their full academic potential;
(c) Therefore, in recent years the state has substantially
increased appropriations to need-based student financial aid
programs.
(d) The commission, in consultation with the council and the
advisory board, shall propose a legislative rule in accordance with
the provisions of article three-a, chapter twenty-nine-a of this
code, to implement the provisions of this article. The commission
shall file the rule with the Legislative Oversight Commission on Education Accountability no later than the first day of September,
two thousand six. The rule shall address administration of the
grant program, including, but not limited to, the following:
(1) Eligibility criteria for awards;
(2) Coordination with other student financial aid programs;
and
(3) Appeal procedures.
§18C-5-2. Definitions.
(a) "Approved institution of higher education" means:
(1) A state institution of higher education as defined in
section two, article one, chapter eighteen-b of this code;
Alderson-Broaddus College, Appalachian Bible College, Bethany
College, Mountain State University, Davis and Elkins College, Ohio
Valley University, Salem International University, the University
of Charleston, West Virginia Wesleyan College and Wheeling Jesuit
University, all in West Virginia; and
(2) Any other regionally or nationally accredited institution
of higher education in this state, public or private, approved by
the vice chancellor if the institution has been licensed for a
minimum of fifteen years subject to the provisions of section nine,
article two-b, chapter eighteen-b of this code and section six,
article two-b of said chapter.
(b) "Grant" or "grant program" means a higher education grant
or the higher education grant program authorized and established by
the provisions of this article.
(c) "Senior administrator" and "vice chancellor" mean the Vice Chancellor for Administration, as provided in section two, article
four, chapter eighteen-b of this code.
§18C-5-3. Grant program administered by Vice Chancellor for
Administration; Higher Education Grant Fund created.
(a) The grant program established in this article is
administered by the Vice Chancellor for Administration.
(b) There is hereby created a special revenue fund in the
state treasury which is designated and known as the "Higher
Education Grant Fund".
(1) The fund consists of:
(A) All appropriations by the Legislature for the higher
education grant program;
(B) Any gifts, grants or contributions received for the higher
education grant program; and
(C) All interest or other income earned from investment of the
fund.
(2) The fund does not consist of federal funds received nor
higher education resource assessment funds received pursuant to
section two, article ten, chapter eighteen-b of this code.
(3) Any moneys remaining in the fund at the close of the
fiscal year are carried forward for use in the next fiscal year.
(4) The allocations to the fund are subject to appropriation
by the Legislature.
(5) 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 the first day of July, two
thousand six, it is the intent of the Legislature to appropriate
twenty-five million dollars for the grant program. For each fiscal
year thereafter until and including the fiscal year ending the
thirtieth day of June, two thousand eleven, it is the intent of the
Legislature to appropriate two percent more than each prior year's
appropriation for the grant program. For the fiscal year beginning
the first day of July, two thousand eleven, and in each fiscal year
thereafter, it is the intent of the Legislature to appropriate an
amount for the grant program equal to the amount appropriated for
the fiscal year beginning the first day of July, two thousand
eleven.
(d) The vice chancellor may expend the moneys in the fund to
implement the provisions of this article.
§18C-5-4. Powers and duties of Vice Chancellor for Administration.
Subject to the provisions of this article and within the
limits of appropriations made by the Legislature, the vice
chancellor may:
(1) Prepare and supervise the issuance of public information
concerning the grant program;
(2) Prescribe the form and regulate the submission of
applications for grants;
(3)
Select qualified recipients of grants;
(4) Award grants;
(5) Accept grants, gifts, bequests and devises of real and personal property for the purposes of the grant program;
(6) Administer federal and state financial loan programs;
(7) Cooperate with approved institutions of higher education
in the state and their governing boards in the administration of
the grant program;
(8) Make the final decision pertaining to residency of an
applicant for grant or renewal of grant;
(9) Employ, fix the duties of and compensate such employees as
may be necessary to assist the vice chancellor in the performance
of his or her duties; and
(10) Administer the higher education adult part-time student
grant program established in section seven of this article.
§18C-5-5. Eligibility for a grant.
A person is eligible for consideration for a grant if the
person:
(1) Is a citizen of the United States;
(2) Has been a resident of the state for one year immediately
preceding the date of application for a grant;
(3) Meets the admission requirements of, and is admitted into,
the approved institution of higher education to which admission is
sought; and
(4) Satisfactorily meets the qualifications of financial need,
academic promise and academic achievement established by the vice
chancellor.
§18C-5-6. Recipients, awards and distribution of grant awards; authority of vice chancellor to enter into reciprocal
agreements with other states concerning grants.
(a) A grant recipient may attend any approved institution of
higher education. An institution is not required to accept a grant
recipient for enrollment, but may exact compliance with its own
admission requirements, standards and policies.
(b) Grants may only be awarded to undergraduate students.
(c) Each grant is renewable until the course of study is
completed, but not to exceed an additional three academic years
beyond the first year of the award. The academic years are not
required to be consecutive years, and the grant will be terminated
if the student receives a bachelor's degree in a shorter period of
time.
(d) Qualifications for renewal include the following, as
determined by the vice chancellor:
(1) Maintaining satisfactory academic standing;
(2) Making normal progress toward completion of the course of
study; and
(3) Continued eligibility.
(e) Grants are awarded:
(1) Without regard to the applicant's race, creed, color, sex,
national origin or ancestry; and
(2) In accordance with the provisions of this article.
(f) The vice chancellor shall treat all approved institutions
of higher education in a fair and equitable manner when awarding
grants.
(g) The vice chancellor periodically shall identify areas of
professional, vocational and technical expertise that are, or will
become, of critical need in this state. To the extent feasible the
vice chancellor may direct grants to students who are pursuing
instruction in those areas.
(h) The vice chancellor may enter into reciprocal agreements
with state grant and grant program agencies in other states which
provide financial assistance to their residents attending
institutions of higher education located in West Virginia. In
connection therewith, the vice chancellor may authorize residents
of West Virginia to use financial assistance under this article to
attend institutions of higher education in such other states.
Residents of West Virginia requesting financial assistance to
attend institutions of higher education located in any such state
must meet all of the eligibility standards set forth in section
five of this article.
(I) Grant awards may not exceed the cost of the tuition and
those related compulsory fees charged by an institution to all West
Virginia undergraduate students.
(j) Grant payments are made directly to the institution.
(k) In the event that a grant recipient transfers from one
approved institution of higher education to another, the grant is
transferable only with the approval of the vice chancellor.
(l) If a recipient terminates enrollment for any reason during
the academic year, the unused portion of the grant shall be
returned by the institution to the commission in accordance with the commission's policy for issuing refunds. The commission shall
transfer such funds to the appropriate account for allocation and
expenditure pursuant to the provisions of this article.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE SCHOLARSHIP PROGRAM.
§18C-7-2. Legislative findings and purpose.
(a) The Legislature finds and declares that:
(1) West Virginia must have an educated work force in order to
attract and retain the high wage, high skill jobs of the
twenty-first century;
(2) A large percentage of West Virginia residents who graduate
from the state's colleges and universities do not work in the state
following graduation;
(3) The percentage of West Virginia's adult population over
the age of twenty-five with at least a baccalaureate degree is less
than fifteen percent and does not compare favorably with the member
states of the Southern Regional Education Board average nor with
the national average of twenty-five percent;
(4) Higher levels of education attainment result in higher
levels of personal income over a lifetime;
(5) Students who acquire a baccalaureate degree will earn an
estimated one million dollars more over their lifetimes than those
who attain only a high school diploma. This translates into an
increased tax base and economic development for West Virginia and
more discretionary income for its citizens;
(6) Students at all education levels should have an incentive
to perform at a high academic level;
(7) There is a need to provide parents with all tools possible
to aid them in helping their children understand the importance of
high academic achievement in high school and college;
(8) The PROMISE Scholarship Program is highly successful and
should be maintained with merit as its strongest component. The
merit component:
(A) Provides an incentive for students to set high academic
standards in high school;
(B) Encourages students to increase their high school
achievement levels;
(C) Encourages students to enroll in more rigorous courses;
(D) Effects a culture change in West Virginia towards
increased education attainment;
(E) Results in improved ACT scores in the state since the
inception of the program; and
(F) Influences increased numbers of students, including those
students who are the highest academic achievers, to remain in West
Virginia to attend college.
(b) It is the purpose of this article to continue the West
Virginia PROMISE Scholarship Program to deal effectively with the
findings set forth in this section.
(c) Nothing in this article guarantees:
(1) A PROMISE scholarship award or any specific amount of a
PROMISE scholarship award to any student; or
(2) That the requirements necessary for a student to qualify
for a PROMISE scholarship will not be changed by legislation or
rule before the student is eligible to receive an award.
§18C-7-3. Definitions.
(a) "Eligible institution" means:
(1) A state institution of higher education as defined in
section two, article one, chapter eighteen-b of this code;
(2) 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:
(A) Loses regional accreditation; or
(B) Changes its status as a private, not for profit
institution.
(3) Any other regionally accredited institution in this state,
public or private, approved by the board.
(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) "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.
(d) "Enrolled" means either currently enrolled or in the process of enrolling in an eligible institution.
§18C-7-4. Appointment of the PROMISE Scholarship Board;
compensation; proceedings generally.
(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.
§18C-7-5. Powers and duties of the West Virginia PROMISE
Scholarship Board.
(a) Powers of 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 including,
but not limited to, the following express powers:
(1) To adopt and amend bylaws;
(2) To propose 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) 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;
(4) To execute contracts and other necessary instruments;
(5) 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 student must have met the following
requirements:
(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, section one, article eight, chapter
eighteen of this code for the two years immediately preceding
application.
(C) This subdivision may not be construed to establish
residency requirements for matriculation or fee payment purposes at
state institutions of higher education;
(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;
(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 --
In addition to any duty required by any other provision of
this article, the board 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 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:
(A) Information requested by the board to determine the number
and percentage of recipients who:
(i) Continue to live in West Virginia after graduation;
(ii) Obtain employment in West Virginia after graduation; and
(iii) Enroll in post-graduate education programs and the name
of the state in which each post-graduate institution is located;
and
(B) Such other relevant information as the board may
reasonably request to implement the provisions of this subdivision.
(5) To analyze the data collected pursuant to subdivision (4)
of this subsection, and:
(A) Report the findings to the Joint Standing Committee on
Education by the tenth day of January, two thousand seven, and
annually thereafter; and
(B) Make recommendations annually to the Joint Standing
Committee on Education regarding any actions the board 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; and
(3) Is used by an eligible institution to supplement, but not
to supplant, a tuition and fee waiver for which the individual is
eligible pursuant to sections five, six-a or seven, article ten,
chapter eighteen-b of this code.
(b) The total cost of all scholarships awarded by the board in
any year may not exceed the amount of funds available to the board
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:
(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, 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, 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 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 considers
necessary to promote academic excellence and to maintain the
financial stability of the fund;
(6) Enroll in an eligible institution. Any 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:
(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 of this article; and
(B) If the student meets all other renewal requirements of
this code and of board rules.
(7) It is the intent of the Legislature that the board 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 education. The community service may include, but is
not limited to, participation with nonprofit, governmental or
community-based organizations designed to:
(A) Improve the quality of life for community residents;
(B) Meet the needs of community residents; or
(C) Foster 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) 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) Additional objective standards as the board 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) Provisions for making the highest and best use of the
PROMISE Scholarship Program in conjunction with the West Virginia
Prepaid Tuition Trust Act set forth in article thirty, chapter
eighteen of this code;
(E) 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) 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 may not utilize any of the following
methods:
(i) Making a scholarship award for an amount less than the
cost of full tuition for a student enrolled in a state institution
of higher education; or
(ii) Eliminating any current recipient from eligibility;
(G) 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 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, 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.
(3) The Legislature finds that an emergency exists and,
therefore, the board 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.
§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:
(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 the first day of July, two
thousand six, 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 other amounts of public moneys that may be
transferred to the fund by appropriation of the Legislature, shall
equal but may not exceed forty million dollars. For each fiscal
year thereafter until and including the fiscal year ending the
thirtieth day of June, two thousand eleven, it is the intent of the
Legislature that this aggregate be an amount two percent greater
than the aggregate established by this subsection for the prior
fiscal year. For the fiscal year beginning the first day of July,
two thousand eleven, 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 the first day of July, two thousand eleven.
(d) The board may expend the moneys in the fund to implement
the provisions of this article.
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