H. B. 4037
(By Mr. Speaker, Mr. Kiss, and Delegate Trump)
[By Request of the Executive]
[Introduced January 15, 2002; referred to the
Committee on Education then Finance.]
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 establishment of 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 West Virginia 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.