SECOND ENGROSSMENT
H. B. 3238

(By Delegate Mezzatesta)

(Originating in the Committee on Education)

[April 2, 2001]

A BILL to repeal section four, article seven, chapter eighteen-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended; to amend and reenact section twenty- one, article one-b, chapter fifteen of said code; to amend and reenact sections two, three, five, six, seven and eight, article seven, chapter eighteen-c of said code; and to further amend said article by adding thereto a new section, designated section nine, all relating to the PROMISE scholarship program; providing that the adjutant general may, in lieu of the tuition payment authorized to be paid to a college, university or other approved school, pay an amount equal to the amount of tuition which would have been paid, directly to members of the West Virginia National Guard who are participating in the PROMISE scholarship program; making additional findings with respect to the PROMISE scholarship program; repealing provisions establishing the PROMISE scholarship board and placing administrative responsibilities with the vice chancellor for administration; adding nationally accredited degree granting institutions and post-secondary certificate, industry recognized credential and skill development programs to the definition of eligible institution; changing the definition of tuition to account for other eligible institutions; specifying certain elements for inclusion in residency requirements; adding scholarship limit of not to exceed program costs for certain eligible institutions; including tools of the trade necessary for program participation in the scholarship allowance for books and supplies; requiring rule by vice chancellor for awarding scholarships if annual appropriations are insufficient for full tuition or program costs; requiring submission federal student aid application/needs analysis form and an application for the PROMISE scholarship; requiring the PROMISE scholarship to be considered as a final award in addition to aid from all other sources, except loans; providing that the restriction that the PROMISE scholarship in combination with aid from all other sources does not apply to members of the West Virginia National Guard, and recipients of the Underwood-Smith and engineering, science and technology scholarship programs; clarifying time limit for application for students who pass GED; clarifying that advanced placement and dual credit course work are not included in the credit hour categories for determining eligibility; replacing "B" average with at least a 3.0 grade point average in required core and electives in professional pathways and at least 18 on the ACT or equivalent for secondary students using scholarship at baccalaureate level; replacing "B" average with at least a 2.0 grade point average in required core and electives in skilled pathways for secondary students using scholarship at less than baccalaureate level; replacing "B" average with satisfactory progress toward completion of a degree at the undergraduate level; providing limits for renewal for certificate, credential and skill development programs; providing that PROMISE shall not be reduced due to prepaid tuition savings; requiring rule on method for awarding scholarships at the baccalaureate and less than baccalaureate levels in an equitable manner; requiring rules to be submitted to education oversight commission; appropriations to scholarship fund subject to legislative appropriation; providing that nothing requires specific appropriations or guarantees or entitles individuals to grants; and making additional findings with respect to the scholarship supplemental fund with respect to the state's goals for post-secondary education. "

Be it enacted by the Legislature of West Virginia:
That section four, article seven, chapter eighteen-c of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be repealed; that section twenty-one, article one-b, chapter fifteen of said code be amended and reenacted; that sections two, three, five, six, seven and eight, article seven, chapter eighteen-c of said code be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section nine, all to read as follows:
CHAPTER 15. PUBLIC SAFETY.

ARTICLE 1B. NATIONAL GUARD.

§15-1B-21. Tuition and fees for guard members at institutions of higher education.

(a) Any member of the national guard who is enrolled in a course of undergraduate study and is attending any accredited college, university, business or trade school located in West Virginia or is attending any aviation school located in West Virginia for the purpose of taking college-credit courses, may be entitled to payment of tuitions and fees at that college, university, business or trade school or aviation school during the period of his or her service in the national guard: Provided, That the adjutant general may prescribe criteria of eligibility for payment of tuition and fees at the college, university, business or trade school or aviation school: Provided, however, That such payment is contingent upon appropriations being made by the Legislature for this express purpose.
(b) The amount of the payment for members attending a state-supported school shall be determined by the adjutant general and may not exceed the actual amount of tuition and fees at the school. The amount of such payment for members attending a private school shall be determined by the adjutant general, but in no event may exceed the highest amounts payable at any state- supported school.
(c) Any member of the national guard who is enrolled in a course of postgraduate study and is attending any accredited college or university located in West Virginia, and is receiving payments under the army continuing education system, may be entitled to payment of tuition and fees at that college or university during his or her period of service in the national guard: Provided, That the sum of payments received under this subsection and the army continuing education system may not exceed the actual amount of tuition and fees at the school and in no event may exceed the highest amounts payable at any state- supported school. Such payments are contingent upon appropriations being made by the Legislature for this express purpose.
(d) The adjutant general may, in lieu of the tuition payment authorized by this section, pay an amount equal to the amount of tuition which otherwise would have been paid, directly to members of the West Virginia National Guard who are participating in the PROMISE scholarship program provided for in article seven, chapter eighteen-c of this code.
(d) (e) The adjutant general shall administer the tuition and fee payments authorized under this section and shall propose policies to implement the provisions of this section.
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE SCHOLARSHIP
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;
(c) (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;
(d) (e) Increases in the level of education increases the income earned by an individual which enhances his or her quality of life;
(e) (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;
(f) (g) Students at all levels should have an incentive to perform at a high academic level;
(g) (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;
(h) (i) There is a financial need for many students who wish to attend state institutions of higher education within the state;
(i) (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
(j) (k) It is the intent of this article to establish a 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, Ohio Valley College, Salem-Teikyo University, the University of Charleston, West Virginia Wesleyan College and Wheeling Jesuit University, all in West Virginia: Provided, That if any institution listed in this subdivision is not regionally accredited, it shall not be included as an eligible institution; or
(3) Any other regionally accredited institution in this state, public or private, approved by the board vice chancellor for administration;
(4) Any nationally accredited degree granting institution of higher education higher learning permitted pursuant to section five, article three, chapter eighteen-b of this code; and
(5) Any post-secondary certificate, industry recognized credential and other skill development program of study in a demand occupation in this state approved by the higher education policy commission.
(b) "Board" means the 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 or program charges imposed by a state institution of higher education and all mandatory fees required as a condition of enrollment by all students imposed by a state institution of higher education or other eligible institution under the governing authority of the state or its political subdivisions.
§18C-7-5. Powers of the vice chancellor for administration.
In addition to the powers granted by any other provision of this article, the board vice chancellor for administration has the powers necessary or convenient to carry out the purposes and provisions of this article and the powers delegated by any other law of the state or any executive order of the state including, but not limited to, the following express powers:
(a) To adopt and amend bylaws;
(b) To propose legislative rules for promulgation in accordance with the provisions of article three-a, chapter twenty-nine-a of this code to effectuate the purposes of this article: Provided, That the board vice chancellor for administration shall not promulgate emergency rules;
(c) To invest any of its funds at the board's his or her 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 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 provide 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 program;
(g) To solicit and accept gifts, including bequests or other testamentary gifts made by will, trust or other disposition, grants, loans and other aids from any source or to participate in any other way in any federal, state or local governmental programs in carrying out the purposes of this article;
(h) To define the terms and conditions under which scholarships shall be awarded with the minimum requirements being set forth in section six of this article; and
(i) To establish other policies, procedures and criteria necessary to implement and administer the provisions of this article.

§18C-7-6. Requirements for rules promulgated by the vice chancellor for administration.

(a) The board vice chancellor for administration shall propose rules which shall include at least the following:
(1) A requirement that a scholarship will not pay an amount that exceeds the cost of tuition at state institutions of higher education or program costs at other eligible institution under the governing authority of the state or its political subdivisions, and may include an allowance for books, and supplies and tools of the trade necessary for participation in the program.

(2) A requirement that a scholarship in combination with 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. The award of a PROMISE scholarship shall be considered as a final award in addition to aid from all other sources, except that it may be used to reduce the amount of funds that a student is required to borrow. The amount of the PROMISE scholarship 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;
(3) Minimum requirements for eligibility for the scholarship which include:
(A) A provision that a student is only eligible to apply for a scholarship within two years of the time he or she graduates from high school or 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 attain at least a "B" average maintain at least a

(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 at least a "B" average satisfactory progress toward the completion of a degree at the undergraduate education level as defined by the board vice chancellor; and
(D) For individuals enrolled in a post-secondary certificate, industry recognized credential and other skill development program of study in a demand occupation in this state approved by the higher education policy commission, that the scholarship shall be awarded one time only and not available for renewal for programs of comparable duration of fifteen college credit hours of less, and for programs of comparable duration of more than fifteen college credit hours shall be subject to renewal only upon satisfactory progress toward completion of the program as determined by the vice chancellor; and
(D) (E) For all individuals, additional objective standards as the board considers necessary to promote academic excellence and to maintain the financial stability of the fund;
(4) A provision requiring the student to be enrolled in or in the process of enrolling in an eligible institution as defined in section three of this article;
(5) Provisions for making the highest and best use of the PROMISE scholarship program in conjunction with a separate and additional award which shall not be reduced by virtue of individual savings pursuant to the West Virginia prepaid tuition trust act set forth in article thirty, chapter eighteen of this code;
(6) A determination of whether to require scholarship recipients to repay the amount of their scholarship, in whole or in part, if they choose to work outside the state after graduation;
(7) A determination 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;
(8) A determination whether to require persons to file federal financial aid forms before they may receive a PROMISE scholarship; and
(9) (8) A determination of what other sources of funding for higher education, if any, should be deducted from the PROMISE scholarship award; and
(9) A method for awarding scholarships within the limits of funds available to qualified applicants

.
(b) The board shall use the services of the senior administrator and any employees of the senior administrator in drafting the rules. The rules shall be submitted to the legislative oversight commission on education accountability on or before the first day of December, one thousand nine hundred ninety-nine two thousand one.
§18C-7-7. West Virginia PROMISE scholarship 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 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 appropriations to the fund shall

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 vice chancellor for administration may expend the moneys in the fund to implement the provisions of this article.
§18C-7-8. PROMISE scholarship supplemental fund recreated, and promulgation of rules.
(a) The Legislature recognizes that the PROMISE scholarship program may lead to an increased number of individuals attending the state institutions of higher education, and therefore, it may contribute to increases in expenses greater than the additional tuition income generated by increased enrollment. The Legislature further recognizes that it has made findings and recommendations with respect to goals for post-secondary education and compacts with higher education which include funding priorities to help achieve improvements necessary for attainment of the state public policy agenda for post-secondary education. Therefore, there is hereby created a special revenue fund in the state treasury which shall be designated and known as the "PROMISE scholarship supplemental fund". The fund shall consist of all appropriations to the fund and all interest earned from the investment of the fund and any gifts, grants or contributions received by the fund. The board 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: Provided, That the board shall not promulgate emergency rules. The rules shall include the following:
(1) Provisions for distributing the moneys from the fund to state institutions of higher education: Provided, That the distribution of the moneys from the fund shall be completely independent of the distributions in accordance with the resource allocation model and the resource allocation policies: Provided, however, That the funds shall be divided among the state institutions of higher education in a reasonable manner to reflect the actual distribution of PROMISE scholarship students among the institutions; and
(2) A procedure for submitting a budget request to the governor: Provided, That nothing in this article shall require any appropriation by the Legislature.

§18C-7-9. Comprehensive study of student financial aid precedent to implementation of PROMISE scholarship program; report to legislative oversight commission on education accountability at December, 2001, interim meetings.

(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 that a comprehensive study of student financial aid be conducted with the objective of maximizing the effectiveness of student financial aid in assisting the state to address its findings and achieve its goals for post-secondary education. There is hereby created a student financial aid study commission comprised of fifteen persons, five of whom shall be appointed by the Governor, five of whom shall be appointed by the President of the Senate, and five of whom shall be appointed by the Speaker of the House. The commission shall utilize the expertise of the higher education policy commission, the office community and economic development, the department of education and others at its discretion. The commission shall submit a report on the findings, conclusions and recommendations of the study, along with any necessary legislation, to the legislative oversight commission on education accountability at it December, two thousand one, interim meeting. The PROMISE scholarship program pursuant to this article may not be implemented until the report is submitted to legislative oversight commission on education accountability.