Senate Bill No. 233
(By Senator Harrison)
____________
[Introduced February 18, 2005; referred to the Committee
on Education; and then to the Committee on Finance .]
____________
A BILL to amend and reenact §18C-7-1, §18C-7-2, §18C-7-3, §18C-7-4,
§18C-7-5, §18C-7-6, §18C-7-7, §18C-7-8 and §18C-7-9 of the
Code of West Virginia, 1931, as amended, all relating to
changing the PROMISE Scholarship Program to the PROMISE
Forgivable Student Loan Program; and establishing deferment
and forgiveness conditions.
Be it enacted by the Legislature of West Virginia:
That §18C-7-1, §18C-7-2, §18C-7-3, §18C-7-4, §18C-7-5,
§18C-7-6, §18C-7-7, §18C-7-8 and §18C-7-9
of the Code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE FORGIVABLE
LOAN PROGRAM.
§18C-7-1. Title.
This article shall be known and may be cited as the "West
Virginia providing real opportunities for maximizing in-state
student excellence (PROMISE)
scholarship forgivable loan program."
§18C-7-2. Legislative findings and purpose.
The Legislature hereby finds and declares that:
(a) The state's college-going rate does not compare favorably
with the member states of the Southern Regional Education Board
average, nor with the national average;
(b) West Virginia must have an educated work force in order to
attract and retain the high wage, high skill jobs of the next
century;
(c) 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) The percentage of West Virginia's adult population over
the age of twenty-five with at least a bachelor's degree is only
fourteen percent and does not compare favorably with the member
states of the Southern Regional Education Board average or with the
national average;
(e) Increases in the level of education increases the income
earned by an individual which enhances his or her quality of life;
(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) Students at all levels should have an incentive to perform
at a high academic level;
(h) There is a need to provide parents with all tools possible
to aid them in helping their children understand the importance of
high achievement in high school and college;
(i) There is a financial need for many students who wish to
attend State Institutions of Higher Education within the State;
(j) The West Virginia higher education grant program is a
vitally important source of financial assistance for needy
residents of the State and should continue to receive strong
financial support; and
(k) It is the intent of this article to establish a West
Virginia PROMISE
scholarship forgivable loan 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, Ohio Valley College, 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 regionally
accredited, it shall not be included as an eligible institution; or
(3) Any other regionally accredited institution in this State,
public or private, approved by the board.
(b) "Board" means the West Virginia PROMISE
scholarship
forgivable loan board of control of the West Virginia PROMISE
scholarship forgivable loan 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.
§18C-7-4. Appointment of the PROMISE forgivable loan board of
control; compensation; proceedings generally.
(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
forgivable loan 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.
(b) Appointed members shall 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.
§18C-7-5. Powers of the West Virginia PROMISE forgivable loan
board of control.
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:
(a) To adopt and amend bylaws;
(b) To propose legislative rules for promulgation in
accordance with the provisions of article three-a, chapter
twenty-nine-a of this code to effectuate the purposes of this
article;
(c) To invest any of its funds at the Board's discretion, with
the West Virginia Investment Management Board in accordance with
the provisions of article six, chapter twelve of this code. Any
investments made under this article shall be made with the care,
skill, prudence and diligence under the circumstances then
prevailing that a prudent person acting in a like capacity and
familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims. Fiduciaries
shall diversify plan investments to the extent permitted by law so
as to minimize the risk of large losses, unless under the
circumstances it is clearly prudent not to do so;
(d) To execute contracts and other necessary instruments;
(e) To impose reasonable requirements for residency for
students applying for the PROMISE scholarship forgivable loan which
shall include that an eligible student must have 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 instruction in the home or other approved place under Exemption B,
section one, article eight, chapter eighteen of this code for the
two years immediately preceding application. However, nothing in
this subdivision may be construed to establish residency
requirements for matriculation or fee payment purposes at State
Institutions of Higher Education;
(f) To contract for necessary goods and services, to employ
necessary personnel and to engage the services of private persons
for administrative and technical assistance in carrying out the
responsibilities of the scholarship forgivable loan program;
(g) To solicit and accept gifts, including bequests or other
testamentary gifts made by will, trust or other disposition,
grants, loans and other aids from any source or to participate in
any other way in any federal, state or local governmental programs
in carrying out the purposes of this article;
(h) To define the terms and conditions under which
scholarships forgivable loans shall be awarded with the minimum
requirements being set forth in section six of this article; and
(i) To establish other policies, procedures and criteria
necessary to implement and administer the provisions of this
article.
§18C-7-6. Requirements for rules on PROMISE forgivable loan
program; recommendations by PROMISE forgivable loan
board of control; promulgation by higher education policy commission.
(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 promulgate
a legislative rule in accordance with the provisions of article
three-a, chapter twenty-nine-a of this code which shall include at
least the following provisions:
(1) A requirement that a scholarship forgivable loan will not
pay an amount that exceeds 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
forgivable loan.
(3) The amount of the PROMISE scholarship forgivable loan
awarded in combination with aid from all other sources shall not
exceed the cost of education at the institution the recipient is
attending: Provided, That this restriction 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
forgivable loan which include:
(A) A provision that a student is only eligible to apply for
a scholarship forgivable loan 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 forgivable loan 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, additional objective standards as the
Board considers necessary to promote academic excellence and to
maintain the financial stability of the Fund;
(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) Provisions for making the highest and best use of the
PROMISE scholarship forgivable loan 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
forgivable loan recipients to repay the amount of their scholarship
forgivable loan, 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 forgivable loan Funds for targeted scholarships
forgivable loans 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 forgivable loan;
(10) A determination and clarification of the relationship of PROMISE scholarship awards forgivable loans to all other aid a
student may receive to provide maximum coordination. The
determination shall consider the following:
(A) Methods to maximize student eligibility for federal
student aid dollars;
(B) A requirement that PROMISE scholarship awards forgivable
loans not supplant tuition and fee waivers; and
(C) Clarification of the relationship between the PROMISE
scholarship program forgivable loan, tuition savings plans and
other state student aid and loan programs;
(11) A method for the award of scholarships forgivable loans
within the limits of available appropriations; and
(12) A determination to permit forgivable loan recipients to
defer repayment of the amount of their forgivable loans, in whole
or in part, as long as they are enrolled in and successfully
completing a course of study in an eligible institution or if they
choose to work inside the State after graduation and file a West
Virginia resident personal income tax return. If a graduate lives
and works in this State for four years after graduation, the total
amount of the forgivable loan shall be forgiven; and
(12) (13) A method for applicants to appeal determinations of
eligibility and continuation.
(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 five.
§18C-7-7. West Virginia PROMISE forgivable loan fund created.
(a) There is hereby created a special revenue fund in the
State Treasury which shall be designated and known as the "PROMISE
scholarship forgivable loan fund." The fund shall consist of all
appropriations to the fund from the West Virginia lottery, video
lottery, taxes on amusement devices, and any other legislative
appropriations, and all interest earned from investment of the fund
and any gifts, grants or contributions received by the fund. The
allocations to the fund shall be subject to appropriation by the
Legislature. Nothing in this article shall require any specific
level of funding by the Legislature nor guarantee or entitle any
individual to any benefit or grant of funds.
(b) The Board may expend the moneys in the fund to implement
the provisions of this article.
§18C-7-8. PROMISE forgivable loan supplemental fund recreated, and
promulgation of rules.
(a) The Legislature recognizes that the PROMISE scholarship
forgivable loan program may lead to an increased number of individuals attending the State Institutions of Higher Education,
and therefore, it may contribute to increases in expenses greater
than the additional tuition income generated by increased
enrollment. Therefore, there is hereby created a special revenue
fund in the State Treasury which shall be designated and known as
the "PROMISE scholarship forgivable loan supplemental fund." The
Fund shall consist of all appropriations to the fund and all
interest earned from the investment of the fund and any gifts,
grants or contributions received by the fund. The Board shall
expend the moneys in this fund to implement the provisions of this
article and may only expend the moneys for State Institutions of
Higher Education.
(b) The Board shall promulgate rules for administering the
Fund in accordance with article three-a, chapter twenty-nine-a of
this code. The rules shall include the following:
(1) Provisions for distributing the moneys from the fund to
State Institutions of Higher Education: Provided, That the funds
shall be divided among the State Institutions of Higher Education
in a reasonable manner to reflect the actual distribution of
PROMISE scholarship forgivable loan students among the
institutions; and
(2) A procedure for submitting a budget request to the
Governor: Provided, That nothing in this article shall require any
appropriation by the Legislature.
§18C-7-9. Legislative review and determination of the scope and
breadth of the charge of the statewide task force on
student financial aid; legislative findings.
(a) The Legislature made findings and established goals for
post-secondary education as set forth in section one-a, article
one, chapter eighteen-b of this code which were enacted following
an in-depth study of the needs of the State for a strong system of
post-secondary education at the regular session of the Legislature,
two thousand. For the state to realize its considerable potential
in the twenty-first century, it must have a system for the delivery
of post-secondary education which is competitive in the changing
national and global environment, is affordable within the fiscal
constraints of the State and for the state's residents to
participate and has the capacity to deliver the programs and
services necessary to meet regional and statewide needs. Among the
greatest needs identified were to improve the levels of adult
functional literacy, increase degree production, develop a system
of comprehensive community and technical college education, expand
access to graduate education and increase funding for the system of
higher education generally so it has the needed capacity to pursue
the state's public policy agenda.
(b) The Legislature finds that the many various programs for
student financial aid, state and federal, are vital parts of a
system that will enable the State to meet its objectives to expand and diversify the state's economy, increase the competitiveness of
the state's workforce and the availability of professional
expertise, improve the levels of post-secondary educational
attainment of the state's residents and significantly improve the
level of adult functional literacy in the State. Therefore, the
Legislature hereby directs the statewide task force on student
financial aid pursuant to section nine, article fourteen, chapter
eighteen-b of this code to amend the scope and breadth of its study
to adequately consider issues relevant to implementation of the
PROMISE scholarship forgivable loan program.
NOTE: The purpose of this bill is to change the Promise
Scholarship Program to the PROMISE Forgivable Student Loan Program
and to defer repayment of the loan while the student is enrolled in
a West Virginia institution of higher education or working in West
Virginia after graduation. One year of the loan is forgiven for
each year the graduate files a West Virginia resident personal
income tax return. The loan is forgiven after four such years
following graduation.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
Email
Webmaster | © 2024 West Virginia Legislature **
