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Introduced Version House Bill 4049 History

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H. B. 4049


(By Delegates Campbell, Williams, Perry, Paxton, Spencer, Crosier, Fragale, Eldridge, Wysong, Leggett and Tansill)


(Originating in the Committee on Education)

[January 18, 2006]




A BILL to repeal §18B-14-9 of the code of West Virginia, 1931, as amended; 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 §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 state funded student financial aid; need-based and merit-based student financial aid programs; PROMISE scholarship program; higher education grant program; abolishing the PROMISE scholarship program board; creating the Higher Education Student Financial Aid Coordinating Board; membership of said Coordinating Board; authorizing member expense reimbursement; powers, duties and responsibilities of said Coordinating Board; transferring powers, duties and responsibilities of PROMISE board to said Coordinating Board; expanding certain legislative findings; establishing certain legislative intent; requiring coordination and consultation among entities for student financial aid administration; creating the "higher education grand fund" special revenue fund; establishing legislative intent regarding legislative appropriation levels to the higher education grant fund and the PROMISE scholarship fund; expanding eligibility for PROMISE scholarship awards to certain students attending high school outside the state; modifying PROMISE scholarship eligibility requirements; limiting tuition and fee increase levels for certain students; 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 legislative rule and emergency rule; 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That §18B-14-9 of the code of West Virginia, 1931, as amended, be repealed; that §18C-7-9 of said code be repealed; that §18C-8-1, §18C-8-2 and §18C-8-3 of said code be repealed; that §18B-10-1 of said code be amended and reenacted; that §18C-1-1, §18C-1-3 and §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 18B. 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 subdivision 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) Subject to the provisions of subdivision (8) of this subsection, 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 and the regional campuses known as West Virginia University Institute of Technology and West Virginia University at Parkersburg.
(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 any other provision of this code to the contrary, a governing board shall use the method established in this subdivision to set tuition and fee rates for resident students receiving any state funded student financial aid administered by the Vice Chancellor for Administration or the Higher Education Student Financial Aid Advisory Council Coordinating Board.
(A) A governing board may propose tuition and fee increase for such students of up to two percent for any fiscal year.
(B) The two 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.
(C) This subsection applies to all state institutions of higher education.
(D) Vice Chancellor for Administration and the Higher Education Student Financial Aid Coordinating Board shall use the tuition and fee rates set pursuant to this subdivision for the purpose of calculating student financial aid award amounts for students enrolled at institutions that are not state institutions of higher education.
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.

ARTICLE 1. FINANCIAL ASSISTANCE GENERALLY.

§18C-1-1. Administration generally.

The senior administrator jointly employed by the chancellors of the board of trustees and the board of directors shall, as provided in section two, article four, chapter eighteen-b of this code, have
(a) The Vice Chancellor for Administration 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, in consultation with and under the direction of the governing boards under the direction of the policy commission and council, and in consultation with the Higher Education Student Financial Aid Coordinating Board.
(b) Such programs include, but are not limited to, the following programs pursuant to the provisions of this chapter:
(1) The Guaranteed Student Loan Program, under this article which may be administered by a private nonprofit agency;
(2) The Medical Student Loan Program; under article three of this chapter
(3) The Underwood-Smith Teacher Scholarship Program; under article four of this chapter; the state scholarship program, commonly known as
(4) The Engineering, Science and Technology Scholarship Program;
(5) The West Virginia Higher Education Grant Program; under article twenty-two-b, chapter eighteen of this code
(6) The Higher Education Adult Part-time Student Grant Program;
(7) The PROMISE Scholarship Program;
(8) The Higher Education Student Assistance Loan Program under article twenty-two-d, chapter eighteen of this code;
(9) The West Virginia Higher Education Tuition Trust Act under article thirty, chapter eighteen of this code, which shall be administered by the State Treasurer as provided in said article;
(10) The state aid programs for students of optometry, under pursuant to article three of this chapter;
(11) The state aid programs for students of veterinary medicine under pursuant to section six-a, article eleven, chapter eighteen of this code;
(12) Any reciprocal program and contract program for student aid under sections three and four, article four, chapter eighteen-b of this code;
(13) Any other state level student aid program under in this code; and
(14) Any federal grant or contract student assistance or support programs administered at the state level.
§18C-1-3. Legislative findings.
The Legislature finds that:
(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 students;
(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, improve the quality of the state's workforce, and thereby enhance the quality of life for its citizens;
(5) The state can provide a successful system of student financial aid only if it balances 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;
(8) Access references a student's financial ability to pursue post-secondary education, and affordability references a student's choice regarding where to attend college based on available resources;
(9) The state is committed to providing both access and affordability for its students to pursue higher education opportunities. To this end, it is essential that the state provides multiple financial aid programs which accomplish different goals;
(10) The 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;
(11) 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;
(12) 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 do not qualify for other forms of financial assistance;
(B) Place-bound students who are often parents employed full-time and requiring evening and weekend access to college courses; and
(C) Individuals pursuing workforce training or skill development training necessary to enter the job market quickly;
(13) The Underwood-Smith Teacher Scholarship Program is a merit-based program that encourages students that have demonstrated outstanding academic abilities to pursue teaching careers;
(14) The Underwood-Smith Teacher Scholarship Program serves to meet West Virginia's statewide, geographic and discipline specific need for highly qualified teachers;
(15) 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;
(16) The West Virginia Engineering, Science and Technology Scholarship Program serves to fill a void in the pool of individuals pursuing careers in engineering, science and technology related fields;
(17) The PROMISE scholarship program is a merit-based program that provides affordability to traditional college-age students;
(18) High school students are working harder to attain the necessary grades and test scores to achieve the PROMISE Scholarship;
(19) With an appropriate blend of student financial aid programs, the state will have the necessary tools to educate its citizenry for a broad range of economic opportunities;
(20) Without proper funding, lower income students may not have their potential realized; adults may not obtain the training they need to continue in the current and future workforce; and high achieving students may not pursue rigorous study in high school or stay in the state for college, all of which will likely result in perpetuating the culture of educational underachievement; and
(21) The state must continue to strive to equally support 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 of the higher education policy commission to the contrary, a person who has met all other conditions of eligibility for state funded financial aid, grants, or scholarships shall not be deemed ineligible for state funded financial aid, grants or scholarship based solely upon his or her attendance at a private high school outside the state if: (1) During his or her attendance at the school outside the state, the student was residing 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 in this state and that 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 prior to immediately preceding the student's attendance at the school;
(2) (B) The student commuted during the school term on a daily basis from this state to attend the school; in another state
(3) (C) The student is a dependent of the parent or legal guardian upon which eligibility is based; and
(D) The student has not established domicile outside the state; and
(4) (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 the state of its location that state to the degree acceptable to the State Superintendent of Schools; of this state in his or her discretion and
(5) (ii) The school's curriculum requirements for graduation are the same as 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 of this state in his or her discretion. (b) Nothing in
(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 Coordinating Board.

(a) The Higher Education Student Financial Aid Coordinating Board is established. The purpose of the board is to:
(1) Advise the Vice Chancellor for Administration in all matters related to federal, state and private student financial aid resources and programs;
(2) Monitor all state funded student financial aid sources and programs;
(3) Pursue methods to balance the needs of students from all levels of financial need and academic ability by focusing on coordinating multiple financial aid programs which accomplish different goals;
(4) Recommend to the Vice Chancellor for Administration methods for achieving a comprehensive system of student financial aid for the purpose of:
(A) Maximizing 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) Establishing methods for coordinating administration among all 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 in the state;
(5) Direct the PROMISE Scholarship Program pursuant to the provisions of article seven of this chapter.
(b) The board consists of nineteen members as follows:
(1) The chair of the Higher Education Policy Commission or a designee who is a member of the commission;
(2) The Vice Chancellor for Administration;
(3) The State Superintendent of Schools or designee;
(4) The Secretary of Education and the Arts;
(5) The State Treasurer or designee;
(6) The president of the West Virginia Association of Student Financial Aid Administrators;
(7) One state institution of higher education financial aid coordinator, appointed by the Vice Chancellor for Administration;
(8) Two members of the West Virginia House of Delegates appointed by the Speaker of the House of Delegates, who are ex officio nonvoting members that serve only in an advisory capacity;
(9) Two members of the West Virginia Senate appointed by the President of the Senate, who are ex officio nonvoting members that serve only in an advisory capacity;
(10) Eight at-large private sector members who:
(A) Are representative of the state's business and economic community;
(B) Have knowledge, skill and experience in an academic, business or financial field;
(C) Are residents of the state; and
(D) Are appointed by the Governor with the advice and consent of the Senate.
(c) No more than five members appointed by the Governor may be from the same political party. No more than three such members may be from the same congressional district. No more than three of the legislative members may be from the same political party.
(1) Each member appointed by the Governor or Vice Chancellor for Administration 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 Governor 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, resignation or removal pursuant to subsection (f) of this section, an appointed member continues to serve until a successor has been appointed and qualified as provided in subsection (b) of this section.
(d) Members of the board serve without compensation, but are entitled to reimbursement by the policy commission for expenses, including travel expenses, which are actually incurred by the member in the official conduct of the business of the board. Members are reimbursed in a manner consistent with the guidelines of the Travel Management Office of the Department of Administration.
ARTICLE 5. HIGHER EDUCATION GRANT PROGRAM.

§18C-5-1. Declaration of public need for grant assistance; legislative findings; grant program established.

(a) The Legislature declares finds:
(1) That although enrollments in institutions of higher education in this state and throughout the nation continue to increase at a rapid pace and although the state now provides a limited grant program for students attending an institution of higher education in West Virginia 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 educational education program; the Legislature further declares
(2) That the state can achieve its full economic and social potential only if:
(A) Every individual has the opportunity to contribute to the full extent of the individual's capabilities and only if his or her capability; and
(B) The state assists in removing such financial barriers to the individual's educational goals as may remain after the individual he or she has utilized all resources and work opportunities available; to him
(3) The ultimate state goal in providing student financial aid is to create a culture that values education, improve the quality of the state's workforce, and thereby enhance the quality of life for its citizens;
(4) The Higher Education Grant Program is a vitally important source of financial assistance for needy residents of the state;
(5) The Higher Education Grant Program aids lower income students to realize their full academic potential;
(6) In recent years the state has substantially increased appropriations to need-based student financial aid programs;
(b) It is therefore the policy of the Legislature and the purpose of this article to establish continue, within the limits of appropriations made therefor from time to time for such purpose by the Legislature, a broad-scale state the Higher Education Grant Program which 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.
§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 College University, Salem International University, the University of Charleston, West Virginia Wesleyan College and Wheeling Jesuit College 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 for Administration if the institution has been licensed for a minimum of fifteen years subject to the provisions of section five, article three nine, article two-b, chapter eighteen-b of this code and section four, article one-b 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" means the Vice Chancellor for Administration, as provided in section two, article one 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 and authorized by this article shall be in this article is administered by the senior administrator. Moneys appropriated or otherwise available for this purpose, shall be allocated by line item to an appropriate account 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 monies 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 twelve, 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 monies 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 senior administrator is authorized and empowered to 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) Administer or contract for the administration of such examinations as may be prescribed by the senior administrator;
(4) Select qualified recipients of grants;
(5) (4) Award grants;
(6) (5) Accept grants, gifts, bequests and devises of real and personal property for the purposes of the grant program;
(7) (6) Administer federal and state financial loan programs;
(8) (7) Cooperate with approved institutions of higher education in the state and their governing boards in the administration of the grant program;
(9) (8) Make the final decision pertaining to residency of an applicant for grant or renewal of grant;
(10) (9) Employ, or engage such professional and administrative fix the duties of and compensate such employees as may be necessary to assist the senior administrator Vice Chancellor in the performance of the his or her duties; and responsibilities; who shall serve at the will and pleasure and under the direction and control of the senior administrator
(11) Employ or engage such clerical and other employees as may be necessary to assist the senior administrator in the performance of the duties and responsibilities, who shall be under the direction and control of the senior administrator;
(12) Prescribe the duties and fix the compensation of all such employees; and (13)
(10) Administer the higher education adult part-time student higher education grant program established under in section seven of this article.
§18C-5-5. Eligibility for a grant.

A person shall be 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 or a renewal of a grant;
(3) Meets the admission requirements of and is admitted into the approved institution of higher education to which admission is sought; and or meets the admission requirements of a three-year registered nurse diploma program which is offered by a nonprofit West Virginia hospital and approved by the West Virginia board of examiners for registered professional nurses; and is subsequently admitted
(4) Satisfactorily meets the qualifications of financial need, and academic promise as well as and academic achievement as established by the senior administrator 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 The grant recipient is free to may attend any approved institution of higher education. in this state or any three-year registered nurse diploma program which is approved by the West Virginia board of examiners for registered professional nurses and which is offered at a nonprofit West Virginia hospital. The An institution is not required to accept the a grant recipient for enrollment, but is free to may exact compliance with its own admission requirements, standards and policies.
(b) Grants may only be made awarded to undergraduate students. and to students enrolled in approved three-year registered nurse diploma programs as provided in this article.
(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. These may not necessarily The academic years are not required to be consecutive years, and the grant will be terminated if the student receives a degree in a shorter period of time.
(d) Qualifications for renewal will 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. as determined by the senior administrator. Grant awards shall be made
(e) Grants are awarded:
(1) Without regard to the applicant's race, creed, color, sex, national origin or ancestry; and in making grant awards, the senior administrator
(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. The senior administrator from time to time
(g) The Vice Chancellor periodically shall identify areas of professional, vocational and technical expertise that are, or will be become, of critical need in this state. and To the extent feasible the Vice Chancellor may direct grants to students that are pursuing instruction in those areas.
(h) The senior administrator 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 senior administrator 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 states state must meet all of the eligibility standards set forth in section five of this article.
(I) Grant awards are limited to the lesser of the payment of may not exceed the cost of the tuition and those related compulsory fees charged by an institution to all West Virginia undergraduate students. or an amount equal to the average state general fund support for each full-time equivalent student at state institutions of higher education for the preceding academic year as calculated by the senior administrator
(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 or approved three-year registered nurse diploma program to another, approved institution of higher education or approved three-year registered nurse diploma program the grant is transferable only with the approval of the senior administrator. Should the recipient terminate 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 appropriate governing board in accordance with the governing board's policy commission in accordance with the commission's policy for issuing refunds. for The commission shall transfer such funds to the appropriate account and for allocation for 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 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) (1) West Virginia must have an educated work force in order to attract and retain the high wage, high skill jobs of the next twenty-first century;
(c) (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;
(d) (3) The percentage of West Virginia's adult population over the age of twenty-five with at least a bachelor's degree is only fourteen baccalaureate degree is less than fifteen percent and does not compare favorably with the member states of the southern regional education board average or nor with the national average of twenty-five percent; (e) Increases in the level of education increases the income earned by an individual, which enhances his or her quality of life
(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;
(f) 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;
(g) (6) Students at all education levels should have an incentive to perform at a high academic level;
(h) (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; (I) There is a financial need for many students who wish to attend state institutions of higher education within the state;
(j) (8) The PROMISE scholarship program is highly successful and should be maintained with merit as its strongest component, as the merit component is:
(A) Providing an incentive for students to set high academic standards in high school;
(B) Encouraging students to increase their high school achievement levels;
(C) Encouraging students to enroll in more rigorous courses;
(D) Effecting a culture change in West Virginia towards increased education attainment;
(E) Resulting in improved ACT scores in the state since the inception of the program; and
(F) Influencing increased numbers of students, including those students who are the highest academic achievers, to remain in West Virginia to attend college.
(k) (b) It is the intent purpose of this article to establish a continue the West Virginia PROMISE scholarship program to deal effectively with the findings set forth in this section.
§18C-7-3. Definitions.
(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, Mountain State University, Ohio Valley College University, Salem International 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 an eligible institution if:
(A) It is not
regionally accredited; or it shall not be included as and eligible institution;
(B) It is not 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 control of the West Virginia PROMISE scholarship program as provided for in section four of this article. Higher Education Student Financial Aid Coordinating Board created in section five, article one of this chapter.
(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. Transfer of PROMISE Scholarship Board of control powers and duties.

(a) On the effective date of this section, the board of the PROMISE scholarship program is abolished. As soon as practical after the effective date of this section, the governor shall appoint the West Virginia PROMISE scholarship board of control comprised of fifteen members as follows:
(1) The chairperson of the Higher Education Policy Commission or a designee who is a member of the commission;
(2) The Chancellor of the Higher Education policy 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) Ten at-large private sector members representative of the state's business and economic community; who have knowledge, skill and experience in an academic, business or financial field. 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. The ten appointed members shall be residents of the state. The ten appointed members shall be appointed by the Governor with the advice and consent of the Senate. No more than six of the ten appointed members may be from the same political party. No more than four of the ten appointed members may be from the same congressional district. Appointed members serve a term of four 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 is 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 in subsection (a) of this section. Of the initial appointments, the governor shall appoint three members to a one-year term, two members to a two-year term, three members to a three-year term and two members to a four-year term. Thereafter, all terms shall be 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 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.
The PROMISE Scholarship Board of Control is abolished. All powers and duties of the PROMISE Scholarship Board of Control are transferred to the Higher Education Student Financial Aid Coordinating Board created in section five, article one of this chapter.
§18C-7-5. Powers and duties of the Higher Education Student Financial Aid Coordinating Board regarding the PROMISE Scholarship program.

(a) In addition to the powers granted by any other provision of this article chapter, the board has the powers necessary or convenient to carry out the purposes and provisions of this article regarding the PROMISE Scholarship Program including, but not limited to, the following express powers:
(a) (1) To adopt and amend bylaws;
(b) (2) 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;
(c) (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;
(d) (4) To execute contracts and other necessary instruments;
(e) (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 which shall include that an eligible student must have:
(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 have been provided
(B) Received instruction in the home or other approved place under pursuant to Exemption B, section one, article eight, chapter eighteen of this code for the two years immediately preceding application. However, nothing in
(C) This subdivision may not be construed to establish residency requirements for matriculation or fee payment purposes at state institutions of higher education;
(f) (6) To contract for necessary goods and services.
(A) The board may not hire employees, but may utilize for administrative and technical assistance the employees of the Vice Chancellor for Administration.
(B) Any services provided for the board by such employees remains under the direction and authority of the Vice Chancellor.
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) (7) To solicit and accept gifts, including bequests or other testamentary gifts made by will, trust or other disposition grants, loans and other aids aid from any source, or and to participate in any other way in any federal, state or local governmental programs in carrying out the purposes of this article;
(h) (8) To define the terms and conditions under which scholarships shall be are awarded with the minimum requirements being set forth in section six of this article; and
(I) (9) To establish other policies, procedures and criteria necessary to implement and administer the provisions of this article.
(b) In addition to any duty required by any other provision of this article, the board has the duty to operate the program in a fiscally responsible manner and within the limits of available funds. Each board member has a personal fiduciary responsibility to assure the proper administration of the PROMISE scholarship program pursuant to the provisions of this article.
§18C-7-6. PROMISE scholarship program requirements; legislative rule.

(a) The board shall recommend a legislative rule to the higher education policy commission to implement the provisions of this article. The higher education policy commission shall A PROMISE scholarship annual award:
(1) Shall equal but not exceed the cost of tuition for a student enrolled in a state institution of higher education;
(2) Shall equal 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) May not be used by an eligible institution 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 in any year by the board may not exceed the amount of funds available to the board during that fiscal year.
(c) To be eligible to receive a PROMISE scholarship award an individual shall:
(1) Submit a scholarship award application to the board:
(A) Within two years of graduating from high school;
(B) 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
(C) 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 as determined by the board toward the completion of a degree at the undergraduate education level 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) Achieve 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 and receiving 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 if:
(A) 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) The student meets all other renewal requirements of this code and board rules; and
(7) Perform prior to initial application at least twenty hours of unpaid community service as approved or designated by the board. Such 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) A PROMISE scholarship recipient may not renew an award and forfeits future eligibility to renew if he or she earns a 1.0 or lower grade point average on a 4.0 scale in any semester or term. This section does not apply if the board determines in its discretion that extenuating circumstances substantially contributed to such grade point average.
(e) The board shall promulgate 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 chapter. The rule is subject to prior approval by the Legislative Oversight Commission on Education Accountability.
(1) The rule
which shall include at least the following provisions:
(1) A requirement that a scholarship will not pay an amount that exceeds
(A) The amount of a scholarship award amount may 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 the student shall first submit the application/needs analysis form used to apply for federal student aid programs along with an application for the PROMISE scholarship.
(3) (B) The amount of the a PROMISE scholarship awarded award in combination with aid from all other sources shall may not exceed the cost of education at the institution the recipient is attending. Provided, That this restriction 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;
(4) 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 or, in the case of home school students, passes the GED examination: 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, excluding credits earned in advanced placement, and dual credit courses while the student is enrolled in high school, that the individual:
(I) Maintain at least a 3.0 grade point average in the required core and elective course work necessary to prepare students for success in post-secondary education at the two-year and baccalaureate levels as determined by the board; and
(ii) Meet other criteria as established by the board;
(C) For individuals with more than fifteen credits from an institution of higher education, excluding credits earned in advanced placement, and dual credit courses while the student is enrolled in high school, that the individual attain and maintain appropriate academic progress toward the completion of a degree at the undergraduate education level as defined by the board; and
(D) For all individuals
(C) Additional objective standards as the board considers necessary to:
(I) Promote academic excellence; and to
(ii) Maintain the financial stability of the fund; and
(iii) Operate the program within the limits of available funds.
(5) 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;
(6) (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;
(7) 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;
(8) A determination of whether to set aside a portion of the scholarship funds for targeted scholarships for applicants accepted or enrolled in an engineering program, science program, technology program or other designated programs;
(9) A determination of what other sources of funding for higher education, if any, should be deducted from the PROMISE scholarship award;
(10) A determination and clarification of
(E) A provision defining the relationship of PROMISE scholarship awards to all other sources of student financial aid a student may receive to provide to ensure maximum coordination. The determination shall consider provision shall include the following:
(I) Methods to maximize student eligibility for federal student financial aid; dollars
(ii) A requirement that PROMISE scholarship awards not supplant tuition and fee waivers; and
(C) (iii) Clarification of the relationship between the PROMISE scholarship program, tuition savings plans and other state funded student financial aid and loan programs;
(11) (F) A method for the award of awarding scholarships within the limits of available appropriations, including circumstances when program funds are not sufficient to provide awards to all eligible applicants. The method may not provide for:
(I) 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) Elimination of any current recipient from eligibility;

(G) A provision regarding the community service performance required by this section, including but not limited to:
(I) Designated qualifying community service organizations and activities; and
(ii) A method for evaluating eligibility of service performed with organizations and activities other than those designated by the board;
(H) A provision for determining whether a PROMISE recipient who earns a 1.0 or lower grade point average is eligible or forfeits eligibility to renew the scholarship pursuant to the provisions of subsection (d) of this section.
and (12)
(I) A method for applicants to appeal determinations of eligibility and continuation renewal.
(2) The rule may provide for or require the following at the board's discretion:
(7) (A) A recipient to repay the amount of the scholarship, in whole or in part, if he or she chooses to work outside the state after graduation;
(B) A portion of the scholarship funds to be targeted for applicants enrolled in an engineering, science, technology or other designated program;
(C) Other sources of funding for higher education to be deducted from the PROMISE scholarship award; and
(D) Additional criteria as determined by the board.
(b) The Legislature hereby declares that an emergency situation exists and, therefore, the policy commission may establish by emergency rule, under the procedures of article three-a, chapter twenty-nine-a of this code, a rule to implement the provisions of this section. If established, the rules shall be filed with the legislative oversight commission on education accountability and with the office of the secretary of state on or before the first day of September, two thousand one.
(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) There is hereby created a The special revenue fund in the state treasury which shall be designated and known as the "PROMISE scholarship fund" is continued. The fund shall consist consists of:
(1) All appropriations to the fund from the West Virginia lottery, video lottery and taxes on amusement devices; and any other legislative appropriations, and any gifts, grants or contributions received by the fund
(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 shall be are subject to appropriation by the Legislature. Nothing in this article shall require requires any specific level of funding by the Legislature nor guarantee or entitle 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 monies transferred to the fund pursuant to section eighteen-a, article twenty-two, chapter twenty-nine of this code, and such other amounts of public monies 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 twelve, 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 monies in the fund to implement the provisions of this article.
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