ENGROSSED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 207
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
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[Originating in the Committee on Finance;
reported February 26, 2002.]
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A BILL to repeal articles twenty-two-a and twenty-two-e, chapter
eighteen of the code of West Virginia, one thousand nine
hundred thirty-one, as amended; and to amend chapter eighteen-
b of said code by adding thereto a new article, designated
article eighteen, relating to creating an eminent scholars
endowment trust fund at each state institution of higher
education; providing for administration of such funds by the
board of governors at each institution; outlining duties of
higher education policy commission, including submission of
annual report to Legislature; providing for solicitation,
acceptance, management and disposition of moneys supporting
the fund; allowing salary supplements to certain faculty;
providing for development of selection criteria for eminent
scholars; and providing for transfer of funds in abolished accounts.
Be it enacted by the Legislature of West Virginia:
That articles twenty-two-a and twenty-two-e, chapter eighteen
of the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be repealed; and that chapter eighteen-b of said code
be amended by adding thereto a new article, designated article
eighteen, to read as follows:
ARTICLE 18. EMINENT SCHOLARS ENDOWMENT TRUST FUND ACT.
§18B-18-1. Legislative findings.
(a) The Legislature hereby finds that the essence of
excellence in education is the attraction and retention of
outstanding faculty; and 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. 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.
(b) The Legislature further finds that the appropriation of
public moneys to attract and retain outstanding faculty and to encourage the commitment of private moneys with a view toward the
accumulation of moneys in trust funds for these purposes is a
proper annual expense of the state. Therefore, the establishment
of an eminent scholars endowment 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.
§18B-18-2. Definition.
Whenever the following term is used in this article, it has
the meaning described below:
"Board of governors" or "board" means the institutional boards
of governors, individually or collectively, created pursuant to
subsection (b), section one, article two-a of this chapter.
§18B-18-3. Establishment of funds.
There is hereby established at each state institution of
higher education an eminent scholars endowment trust fund.
§18B-18-4. Powers and duties of governing boards.
(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. The board may
hold, invest or reinvest such moneys and expend the income from the
moneys as provided in section five of this article.
(b)Each board is exempt from liability for any loss or
decrease in value of the assets or income of the fund, except as
losses or decreases in value are shown to be the result of bad
faith, gross negligence or intentional misconduct.
(c) 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.
(d)A board shall at all times adhere 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 it considers to be
unacceptable.
(e)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.
§18B-18-5. Administration of fund.
(a)Each eminent scholars endowment trust fund established at
a state institution of higher education pursuant to section three
of this article is to be administered by the appropriate 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 earnings accruing in each account during the
previous fiscal year may be expended for the purposes set out in
this article.
(d)The investment earnings accrued and any matching funds
appropriated by the Legislature shall be used solely to supplement
the base salaries of faculty who are appointed as eminent scholars
after the first day of July, two thousand two, and who are 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)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 earnings dedicated
to it reaches an amount considered sufficient by the board to
support the anticipated salary supplement for the chair.
(g)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 earnings
authorized for expenditure by the institutions spending policy, or
the state appropriation to match the eligible investment earnings.
(h) Nothing in this article shall be construed to require any
specific level of funding by the Legislature.
§18B-18-6. Duties of higher education policy commission.
The higher education policy commission shall:
(a) 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
whenever the terms are significantly changed;
(b) Require that each participating institution report on
total gifts received, investment earnings realized and anticipated
expenditures in its annual operating budget request;
(c) Annually develop and submit a consolidated budget request
for the eminent scholars program to the governor for the fiscal
year beginning on the first day of July, two thousand three. The
budget request shall include a request for an appropriation by the
Legislature to each institutional account each fiscal year in an
amount equal to the investment earnings in the previous fiscal year
which are intended for use in the fiscal year to supplement the
salaries of eminent scholars;
(d) Allocate any funds appropriated by the Legislature among
the participating institutions in equal installments at the beginning of each quarter; and
(e) Submit to the Legislature
no later than the first day of
December of each year an annual report
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.
§18B-18-7. Process for preparation of executive budget.
(a) The governor shall consider for inclusion in the
appropriate account the budget request of the policy commission for
the eminent scholars program.
(b) Whether or not the governor includes the budget request of
the policy commission as described in subsection (a) of this
section, the Legislature may include an appropriation in the
appropriate account.
(c) Nothing in this section shall be construed to require any
specific level of funding by the Legislature.
§18B-18-8. Selection of eminent scholars.
(a) Each institution shall establish criteria for the
selection of persons to be appointed as eminent scholars pursuant
to this article. The criteria shall include, but not be limited
to:
(1) The prospective appointees' record of distinguished
academic or professional work in an appropriate field as judged in
national terms and verified by the department or college
benefitting from the salary supplement;
(2) The prospective appointees' record of increasing the quality and reputation of academic programs and economic
development through new research centers; and
(3) The relevance of prospective appointees' academic or
professional work to the economic development goals of the state as
defined by the West Virginia council for community and economic
development.
(b) Appointees shall submit to peer review at the department
or college and any other review procedures that are established by
the institution.
§18B-18-9. Authorization to solicit private moneys; terms of
grants; reports; handling of moneys.
Each institution, and each dean and department chair within
each institution, may solicit moneys for the endowment of eminent
scholars pursuant to this article. All persons and institutions
engaged in soliciting moneys shall apprise 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 immediately to the board for deposit.
§18B-18-10. Other funds.
Effective the first day of July, two thousand two, all funds
existing in accounts established in the eminent scholars endowment
trust fund act and the distinguished professors endowment trust
fund act as previously set out in articles twenty-two-a and article
twenty-two-e respectively of chapter eighteen of this code are
hereby transferred to the institution for which they were
previously designated. Moneys used to fund chairs or professorships established under these two articles shall continue
to be used for the purposes and in the manner previously
designated. Funds accrued under these two articles may not be
transferred to the trust funds established by this article.