Senate Bill No. 207
(By Senators Tomblin (Mr. President) and Sprouse
By Request of the Executive)
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[Introduced January 15, 2002; referred to the Committee
on Education; and then to the Committee on Finance.]
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A BILL to amend and reenact article twenty-two-a, chapter
eighteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to the abolition
of the distinguished professors endowment fund and the
eminent scholars endowment trust fund acts; the eminent
scholars trust fund at each state institution of higher
education; providing for administration of such funds by
the board of governors at such institutions; providing for
solicitation, acceptance, management and disposition of
moneys supporting the fund; allowing salary supplements to
certain faculty; setting forth selection criteria for
eminent scholars; and providing for annual report to the
Legislature.
Be it enacted by the Legislature of West Virginia:
That article twenty-two-a, chapter eighteen of the code of
West Virginia, one thousand nine hundred thirty-one, as amended,
be amended and reenacted to read as follows:
ARTICLE 22A. EMINENT SCHOLARS ENDOWMENT TRUST FUND ACT.
§18-22A-1. Legislative findings.
The Legislature hereby finds that the essence of excellence
in higher education is the attraction and retention of
outstanding faculty; that however necessary modern facilities
and efficient and effective administration may be, the faculty
provides the catalyst by which all the elements of higher
education combine to offer a quality education. The Legislature
further finds that the attraction and retention of outstanding
faculty at all state colleges and universities, particularly
those who have attained distinction as scholars, teachers and
researchers, requires a long-term and permanent commitment from
both public and private sources, that private support will help
strengthen the commitment of citizens and organizations to the
promotion of excellence in higher education and will provide
moneys for salaries competitive with those paid to faculty of
similar eminence working for this country's leading colleges and
universities.
The Legislature further finds that the appropriations of
public moneys to attract and retain outstanding faculty and to encourage the commitment of private moneys with a view toward
the accumulation of such moneys in trust funds for such purposes
is a proper annual expense of the state, and that the
establishment of an eminent scholars trust fund at each state
institution of higher education is a proper means of providing
for the advancement of public higher education in this state.
§18-22A-2. Definition.
Whenever the following term is used in this article, it
shall have the meaning described below:
"Board of governors" or "board" means the members of the
board of governors at each state institution of higher
education.
§18-22A-3. Establishment of funds.
There is hereby established at each state institution of
higher education an eminent scholars endowment fund.
§18-22A-4. Powers.
(a)Each board of governors is hereby expressly authorized
to receive private or public grants, gifts or bequests
restricted by the donor to the programs set out in this article.
It may hold, invest or reinvest such moneys and expend the
income therefrom as hereinafter provided.
(b)Each board shall be exempt from liability for any loss
or decrease in value of the assets or income of the fund, except as such losses or decreases in value are shown to be the result
of bad faith, gross negligence or intentional misconduct.
For the purpose of valuing assets, a board may use any
commonly accepted techniques of appraisal or commonly accepted
principles of accounting. No agency of government nor any
person, natural or corporate, may charge or collect any fee or
receive any part of the principal or income from any
appropriation, grant, gift or bequest as a fee for the
acquisition or administration of the appropriation, grant, gift
or bequest.
(c)A board shall adhere at all times to the terms and
limitations of any appropriation, grant, gift or bequest
received. However, a board may refuse to receive any grant,
gift or bequest which incorporates terms and limitations which
they deem to be unacceptable.
(d)A board may in its sole discretion borrow money when
necessary in order to avoid the untimely sale of assets. At no
time, however, may the board incur any debt obligation for such
purpose which exceeds twelve months in duration.
§18-22A-5. Administration of fund.
(a)There is hereby established an eminent scholars faculty
endowment fund at each state institution of higher education to
be administered by its board of governors. The fund at each institution shall consist of new gifts or bequests of private
moneys specifically restricted and designated for the uses set
out in this article.
(b)Gifts and bequests received after the first day of
July, two thousand two, and restricted by the donor for use
consistent with the purposes of this article constitute the
principal in these accounts. The principal in each account may
not be expended for any purpose. Each board of governors shall
adopt a spending policy to protect the principal and the
purchasing power of the original gift.
(c)Investment yield accruing in each account during the
previous fiscal year may be expended for the purposes set out in
this article. The Legislature will attempt to appropriate to
each account each fiscal year an amount equal to the investment
earnings in the previous fiscal year under this article. The
first such appropriations shall be made for the fiscal year
beginning the first day of July, two thousand three, and shall
be allocated to the institutions in equal quarterly installments
at the beginning of each quarter.
(d)The investment yield accrued and the matching funds
appropriated by the Legislature shall be used solely to
supplement the base salaries of faculty appointed as eminent
scholars after the first day of July, two thousand two, and selected as set out in this article.
(e)Gifts and bequests constituting the principal in these
accounts may not consist of institutional funds or funds or
assets received from the institution's affiliated foundation.
(f)The higher education policy commission will establish
documentation standards and review procedures to determine the
eligibility of donor gifts to participate in the eminent
scholars program when the gift is initially received or if the
terms are significantly changed. Each participating institution
will report on total gifts received, investment yield realized
and anticipated expenditures in its annual operating budget
request. The higher education policy commission will present a
consolidated budget request for the program and allocate
appropriated funds among the participating institutions.
(g)For the purpose of encouraging the donation of private
moneys to the fund, each board may designate specific chairs or
specific areas of academic study or research as subjects of
challenge grants. A specific chair, or a chair in a designated
academic or research area, shall be established whenever the
total amount of principal and accumulated investment yield
dedicated to it reaches an amount deemed sufficient by the board
to support the anticipated salary supplement for the chair.
(h)Salary supplements awarded under this article shall be in addition to the base contract salary of the faculty member.
The base contract salary of the faculty member shall be
consistent with that of other similarly situated faculty at the
institution with the same rank, experience, and field of study
and shall be paid from funds other than those constituting the
endowment accounts established pursuant to this article,
investment yields authorized for expenditure by the institutions
spending policy, or the state appropriation to match the
eligible investment yield.
§18-22A-6. Selection of eminent scholars.
Each institution shall establish criteria for the selection
of persons to be appointed as eminent scholars pursuant to this
article. Appointees shall have a record of distinguished
academic or professional work in an appropriate field such to be
judged in national terms and verified by the department or
college benefiting from such salary supplement and shall be
recruited for the purposes of increasing the quality and
reputation of academic programs and economic development through
new research centers. Appointees shall submit to peer review at
such department or college and such other review procedures as
may be established by the institution.
§18-22A-7. Authorization to solicit private moneys; terms of
grants; reports; handling of moneys.
Each institution, and each dean and department chair within
each institution, is hereby authorized to solicit moneys for the
endowment of eminent scholars pursuant to this article. All
persons and institutions engaged in soliciting moneys shall
apprize the board of their actions and provide periodic reports,
at least once each fiscal year, regarding the amounts secured
and, upon receipt of any moneys, shall forward them forthwith to
the board for deposit.
§18-22A-8. Other funds.
The eminent scholars endowment trust fund act established
previously by this article and the distinguished professors
endowment trust fund act set out in article twenty-two-e,
chapter eighteen of this code are abolished effective the first
day of July, two thousand two. All funds existing in accounts
established in the above two acts are hereby transferred to the
institution for which they were previously designated. Funds
utilized to fund chairs or professorships established under the
above two acts shall continue to be utilized for the purposes
and in the manner previously designated. Funds accrued under
these two acts may not be transferred to the trust funds
established by this article.
§18-22A-9. Annual report.
The higher education policy board shall make an annual report to the West Virginia Legislature on the status of the
programs, the qualifications and accomplishments of the eminent
scholars, the value of endowment holdings, the investment
earnings realized and salary supplements paid.
NOTE: The purpose of this bill is to abolish the previously
established distinguished professors endowment fund and the
eminent scholars endowment trust acts, replacing them with the
eminent scholars endowment trust fund as established and managed
at each state institution of higher education through their
respective boards of governors. Provisions relating to the
solicitation, acceptance and management of moneys deposited
pursuant to this bill are set forth. Each institution shall
establish selection criteria to select eminent scholars. Salary
supplements are provided for certain faculty members.
This article has been completely rewritten; therefore,
strike-throughs and underscoring have been omitted.