A BILL to amend article one-b, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, by adding thereto a new section, designated section ten, relating to higher education reorganization; legislative funding; establishing a special revenue account in the state treasury; purpose of fund; use of funds retained by reorganization; use of funds deposited into special revenue account; legislative findings and intent; personal services and employee benefits reduction; institution conversion; detailed written notice to governor, Senate president and House speaker; disposition of real property and assets; student transfers; reconciling program requirement conflicts; and student financial aid eligibility and continuation.

Be it enacted by the Legislature of West Virginia:
That article one-b, chapter eighteen-b of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended by adding thereto a new section, designated section ten, to read as follows:
ARTICLE 1B. HIGHER EDUCATION POLICY COMMISSION.

§18B-1B-10. Higher education reorganization; use of funds retained.

(a) The Legislature finds that reducing the tax burden in the state is a valuable tool for economic development and very desirable to the citizens and businesses of the state. The Legislature further finds that high quality higher education programs are vital to the achievements of the citizens and the economic viability of the state.
(b) The Legislature intends that the implementation of this section will retain at least twenty million dollars per year in the state treasury and intends to apply those funds to the reduction of the current deficit in the workers' compensation fund.
(c) There is hereby created in the state treasury a special revenue account to be known as the "workers' compensation deficit reduction fund." Money in the fund may not be treated by the auditor and the state treasurer as part of the general revenue of the state. Expenditures from the fund are for the purposes set forth in this section and are not authorized from collections but are to be made only in accordance with appropriation by the Legislature made for fiscal years beginning after the thirtieth day of June, two thousand seven.
(d) Reorganization of staff positions, agency reorganization, the sale of assets and other actions from which savings or revenues are realized may result from the implementation of this section. Upon any action taken which results in such savings, the money, or if general revenue, an amount equal to the money, appropriated for the activity from which the savings are realized, as well as any actual revenues received from the implementation of this section, shall be transferred to and deposited into the fund described in subsection (c) of this section and expended in accordance with the purpose for which the fund is established.

(e) In each fiscal year beginning after the thirtieth day of June, two thousand seven, it is the intent of the Legislature that twenty million dollars of general revenue funds that would have been appropriated to the policy commission in the absence of the enactment of this section will, in lieu thereof, be directly appropriated to the fund described in subsection (c) of this section and expended in accordance with the purpose for which the fund is established, and that in those years, the total of the appropriations for expenditure by the policy commission and any institution under the purview of the policy commission will be reduced by that amount.

(f) In each fiscal year beginning after the thirtieth day of June, two thousand three, five million dollars of general revenue funds that would have been appropriated to the policy commission for personal services and employee benefits in the absence of the enactment of this section, in lieu thereof shall be directly appropriated to the fund described in subsection (c) of this section and expended in accordance with the purpose for which the fund is established, and the total of the appropriations for expenditure by the policy commission for personal services and employee benefits shall be reduced by that amount. This reduction shall result from a decrease in policy commission staff and from economies of scale and administrative efficiencies system-wide.

(g) The policy commission shall privatize, merge or close at least two state institutions of higher education not later than the thirtieth day of June, two thousand seven. If a merger occurs between two state institutions of higher education then the commission shall privatize, merge or close at least one additional state institution. A free-standing community and technical college may not be privatized, merged or closed pursuant to the provisions of this section.
(h) At any time following the commission's decision as to which institutions shall be privatized, merged or closed, the commission shall immediately transition to the privatization, merger or closure if continued operation as an independent state institution of higher education is not economically feasible or viable.
(i) By the first day of December, two thousand three, the commission shall deliver to the governor, president of the Senate and speaker of the House of Delegates, written notice of the institutions to be privatized, merged or closed and the process devised for the implementation. The notice shall provide specific detail for:
(1) Disposition of all property and assets, which may include, but is not limited to lease or sale;
(2) Termination or reassignment of faculty and staff;
(3) Transfer of credit hours received by a student to any state institution of higher education;
(4) Transfer of state-funded student financial aid;
(5) Preservation of the delivery of adult education, workforce development training and education, and adult literacy education in that region of the state, including collaboration with the state board of education to the extent that such delivery and programming exist or are available in that region by the board;
(6) Preservation of funding derived by federal designation as an historically black institution; and
(7) Retirement of any preexisting debt that was approved by the Legislature or the policy commission or its predecessors, the terms of payment thereof extending beyond the thirtieth day of June, two thousand seven.
(j) The plan for disposition of property and assets shall be based on fair market value. Any revenue procured by the disposition shall be transferred and deposited in accordance with the provisions of subsection (c) of this section.
(k) The merger of any institution shall occur without current or additional revenue from state sources, and shall be solely at the expense of the institutions being merged. Any state funds received by an institution to be merged do not transfer with the merger. If state institutions of higher education are merged, it is the state funds previously appropriated to the institution with the smaller general revenue appropriation that shall be retained in the state treasury according to the provisions of this section.
(l) The privatization of any institution shall occur without current or additional revenue from state sources, and shall be solely at the expense of the private party. Any state funds received by an institution to be privatized do not transfer with the privatization. In the case of privatization the policy commission may provide by gift or by lease without sale the property and assets of the institution.
(m) The plan for privatization, merger or closure may include conversion into a federal workforce development center. This conversion shall occur without current or additional revenue from state sources. Any state funds received by an institution to be converted do not transfer with the conversion. In the case of conversion the policy commission may provide by gift or by lease without sale the property and assets of the institution. (n) Where a conflict exists between program requirements at a privatized, merged or closed institution and a state institution of higher education to which a student is transferring, the requirements of the former institution prevail. The credit hours earned by any student enrolled at an institution to be privatized, merged or closed shall transfer to any state institution of higher education. The credits shall be included in the student's program of study at the receiving state institution. A student may not be required to earn additional credits toward the degree pursued, or take additional courses, that were not included in the student's program of study at the time the student declared that major at the former institution. (o) A student transferring from an institution to be privatized, merged or closed to another state institution of higher education shall continue to receive any state-funded student financial aid for which he or she would remain eligible if enrolled in the former institution.
(p) Nothing in this section requires any level of funding or appropriation by the Legislature.

This section is new; therefore, strike-throughs and underscoring have been omitted.