Adopted by House 4-10-2009
SB373 HFIN AM 4-8
McO

The Committee on Finance moves to amend the bill on page three, following the enacting clause, by striking out the remainder of the bill and inserting in lieu thereof the following:
"That §18C-7-8 of the Code of West Virginia, 1931, as amended, repealed; that said code be amended by adding thereto a new section, designated §18B-1D-9; that §18B-2A-1 of said code be amended and reenacted; that §18C-1-1 and §18C-1-5 of said code be amended and reenacted; and that §18C-7-3, §18C-7-4, §18C-7-5, §18C- 7-6, §18C-7-7 and §18C-7-8 of said code be amended and reenacted, all to read as follows:
CHAPTER 18B. HIGHER EDUCATION.

ARTICLE 1D. HIGHER EDUCATION ACCOUNTABILITY.
§18B-1D-9. Commission, Council and institutional governing board training and development.

(a) The Commission and Council, either jointly or separately, shall coordinate periodic training and development opportunities for members of the Commission, Council and institutional governing boards.
(b) Within six months of beginning service on the Commission, Council or a board, each new member shall complete at least three hours of training and development. The training and development shall address the following topics:
(1) State goals, objectives and priorities for higher education;
(2) The accountability system for higher education set forth in this article;
(3) The general powers and duties of members; and
(4) Ethical considerations arising from board membership.
(c) Within two years of beginning service on a board, and within every two years of service thereafter, each board member shall complete at least six hours of training and development related to his or her duties.
(d) Annually by July 31, the chair of the Commission, Council and each governing board shall certify to the Commission or Council, as appropriate, the number of hours of training and development that each board member received during the preceding fiscal year.
(e) If the certification indicates that a board member has not completed the training and development required by this section, the Commission or Council, as appropriate, shall send a notice to the Governor and the Secretary of State that the board member is disqualified from continued service, and request that the Governor appoint a replacement for that board member.
(f) The Commission and Council shall report annually by September 30, to the Legislative Oversight Commission on Education Accountability on the training and development that members of the Commission and Council and governing boards under their respective jurisdictions have received during the preceding fiscal year.
(g) As used in this section, "board member" includes a member of the Commission, Council or a governing board.

ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.
§18B-2A-1. Composition of boards; terms and qualifications of members; vacancies; eligibility for reappointment. establishment of boards for independent community and technical colleges

(a) A board of governors is continued at each of the following institutions: Bluefield State College, Blue Ridge Community and Technical College, The Community and Technical College at West Virginia University Institute of Technology, Concord University, Eastern West Virginia Community and Technical College, Fairmont State University, Glenville State College, Marshall Community and Technical College, Marshall University, New River Community and Technical College, Pierpont Community and Technical College, Shepherd University, Southern West Virginia Community and Technical College, West Liberty State College, West Virginia Northern Community and Technical College, the West Virginia School of Osteopathic Medicine, West Virginia State Community and Technical College, West Virginia State University and West Virginia University, and West Virginia University at Parkersburg.
(b) Independent community and technical colleges established. --
Effective July 1, 2008, the board of advisors is abolished and A board of governors is established for Marshall Community and Technical College; Pierpont Community and Technical College, formerly a division of Fairmont State University; The Community and Technical College at West Virginia University Institute of Technology; West Virginia State Community and Technical College; and West Virginia University at Parkersburg.
The State of West Virginia will be served best if the membership of each governing board is arranged to include: The academic expertise and institutional experience of faculty members and a student of the institution governed by the board; the technical or professional expertise and institutional experience of a classified employee of the institution governed by the board; awareness and understanding of the issues facing the institution governed by the board; and the diverse perspectives that arise from a governing board that is balanced in terms of gender and varied in terms of race and ethnic heritage.
(c)(A) In making the initial appointments to these boards of governors, the Governor may appoint those persons who are lay members of the boards of advisors by June 30, 2008.
(B) At the end of the initial term, and thereafter An appointment to fill a vacancy on the board or reappointment of a member who is eligible to serve an additional term is made in accordance with the provisions of this section.
(c)(B) The institutional boards of governors for Marshall University and West Virginia University consist of sixteen persons. The boards of governors of the other state institutions of higher education consist of twelve persons.
(d) Each board of governors includes the following members:
(1) A full-time member of the faculty with the rank of instructor or above duly elected by the faculty of the respective institution;
(2) For the governing boards of institutions under the jurisdiction of the Commission, an additional full-time member of the faculty with the rank of instructor or above duly elected by the faculty of the respective institution and representing a center of excellence designated in the institutional compact;
(3) For the governing boards of institutions under the jurisdiction of the Council, an additional full-time member of the faculty in a high-demand technical program consistent with subdivision six, subsection (b), section three, article one-d of this chapter, with the rank of instructor or above duly elected by the faculty of the respective institution;
(4) A member of the student body in good academic standing, enrolled for college credit work and duly elected by the student body of the respective institution;
(3) (5) A member from the institutional classified employees duly elected by the classified employees of the respective institution; and
(4) (6) For the institutional board of governors at Marshall University, thirteen eleven lay members appointed by the Governor, by and with the advice and consent of the Senate, pursuant to this section, and additionally, the dean of the school of medicine or his or her designee;
(5) (7) For the institutional board of governors at West Virginia University, twelve nine lay members appointed by the Governor, by and with the advice and consent of the Senate, pursuant to this section, and additionally:
(A) The chairperson of the board of Visitors of West Virginia University Institute of Technology;
(B) A full-time employee representing the extension service at the institution, selected by the extension service employees; and
(C) The dean of the school of medicine or his or her designee;
(6) (8) For each institutional board of governors of the other state institutions of higher education, nine eight lay members appointed by the Governor, by and with the advice and consent of the Senate, pursuant to this section.
(e) Of the nine eight members appointed by the Governor, no more than five may be of the same political party. Of the thirteen eleven members appointed by the Governor to the governing board of Marshall University, no more than eight six may be of the same political party. Of the twelve nine members appointed by the Governor to the governing board of West Virginia University, no more than seven five may be of the same political party.
(f) Of the nine eight members appointed by the Governor, at least six four shall be residents of the state. Of the thirteen eleven members appointed by the Governor to the governing board of Marshall University, at least eight six shall be residents of the state. Of the twelve nine members appointed by the Governor to the governing board of West Virginia University, at least eight five shall be residents of the state.
(g) In making lay appointments, the Governor shall:
(1) Consider the need for individual skills, knowledge and experience relevant to governing the institution; the need for awareness and understanding of institutional problems and priorities, including those related to research, teaching and outreach; and the value of gender, racial and ethnic diversity;
(2) Seek balance in gender and diversity in the racial and ethnic characteristics of the lay membership of each board; and
(3) Appoint to each governing board the superintendent of a county board of education from the area served by the institution.
(f)(h) The student member serves for a term of one year. Each term begins on the first day of July.
(g) The (i) Each employee and faculty member serves for a term of two years. Each term begins on the first day of July. Employee and faculty members are eligible to succeed themselves for three additional terms, not to exceed a total of eight consecutive years.
(h)(j) The member representing classified employees serves for a term of two years. Each term begins on the first day of July. Members representing classified employees are eligible to succeed themselves for three additional terms, not to exceed a total of eight consecutive years.
(i)(k) The appointed lay citizen members serve terms of up to four years each and are eligible to succeed themselves for no more than one additional term.
(j)(l) A vacancy in an unexpired term of a member shall be filled for the unexpired term within thirty days of the occurrence of the vacancy in the same manner as the original appointment or election. Except in the case of a vacancy, all elections shall be held and all appointments shall be made no later than the thirtieth day of June 30 preceding the commencement of the term. Each board of governors shall elect one of its appointed lay members to be chairperson in June of each year. except for the fiscal year beginning July 1, 2008, only, when the board shall elect the chairperson in July A member may not serve as chairperson for more than four consecutive years.
(k)(m) The appointed members of the institutional boards of governors serve staggered terms of up to four years except that four of the initial appointments to the governing boards of community and technical colleges which become that became independent July 1, 2008, are for terms of two years and five of the initial appointments are for terms of four years.
(l)(n) A person is ineligible for appointment to membership on a board of governors of a state institution of higher education under the following conditions:
(1) For a baccalaureate institution or university, a person is ineligible for appointment who is an officer, employee or member of any other board of governors; an employee of any institution of higher education in West Virginia; an officer or member of any political party executive committee; the holder of any other public office or public employment under the government of this state or any of its political subdivisions; an employee of any affiliated research corporation created pursuant to article twelve of this chapter; an employee of any affiliated foundation organized and operated in support of one or more state institutions of higher education; or a member of the Council or Commission. This subsection does not prevent the representative representatives from the employees, faculty, classified employees, students, or the superintendent of a county board of education serving pursuant to subsection (d) of this section from being members of the governing boards.
(2) For a community and technical college, a person is ineligible for appointment who is an officer, employee or member of any other board of governors; a member of a board of visitors of any public institution of higher education in West Virginia; an employee of any institution of higher education; an officer or member of any political party executive committee; the holder of any other public office, other than an elected county office, or public employment, other than employment by the county board of education, under the government of this state or any of its political subdivisions; an employee of any affiliated research corporation created pursuant to article twelve of this chapter; an employee of any affiliated foundation organized and operated in support of one or more state institutions of higher education; or a member of the Council or Commission. This subsection does not prevent the representative from the faculty, classified employees, students, or chairpersons of the boards of advisors from being members of the governing boards.
(m)(o) Before exercising any authority or performing any duties as a member of a governing board, each member shall qualify as such by taking and subscribing to the oath of office prescribed by Section five, Article IV of the Constitution of West Virginia and the certificate thereof shall be filed with the Secretary of State.
(n)(p) A member of a governing board appointed by the Governor may not be removed from office by the Governor except for official misconduct, incompetence, neglect of duty or gross immorality and then only in the manner prescribed by law for the removal of the state elective officers by the Governor.
(o)(q) The president of the institution shall make available resources of the institution for conducting the business of its board of governors. The members of the board of governors serve without compensation, but are reimbursed for all reasonable and necessary expenses actually incurred in the performance of official duties under this article upon presentation of an itemized sworn statement of expenses. All expenses incurred by the board of governors and the institution under this section are paid from funds allocated to the institution for that purpose.
CHAPTER 18C. STUDENT LOANS; SCHOLARSHIPS AND STATE AID.

ARTICLE 1. FINANCIAL ASSISTANCE GENERALLY.
§18C-1-1. Legislative findings; purpose; administration generally; reporting.

(a) The Legislature finds makes the following findings:

(1) That Although enrollments in institutions of higher education in this state and throughout the nation continue to increase at a rapid pace, there continues to exist an underdevelopment of West Virginia has not developed sufficiently the state's human talent and resources because of the inability of many able, but needy, students are not able to finance a higher education program;
(2) That The state can achieve its full economic and social potential only when the following elements are in place:
(A) Every individual has the opportunity to contribute to the full extent of his or her capability; and
(B) The state assists in removing such financial barriers to the individual's education goals as may that remain after he or she has utilized used all resources and work opportunities available;
(b) The ultimate state goal in providing student financial aid is to create a culture that values education, to improve the quality of the state's workforce and thereby to enhance the quality of life for the citizens of West Virginia.
(c) The Vice Chancellor for Administration jointly employed by the Commission and the Council has a ministerial duty to administer, oversee or and monitor all state and federal student loan, scholarship and state student financial aid programs which are administered at the state level in accordance with established guidelines rules under the direction of the Commission and Council and in consultation with the Higher Education Student Financial Aid Advisory Board.
(d) Such These programs include, but are not limited to, the following programs: pursuant to the provisions of this chapter
(1) The Guaranteed Student Loan Program, which may be administered by a private nonprofit agency;
(2) The Medical Student Loan Program;
(3) The Underwood-Smith Teacher Scholarship Program;
(4) The Engineering, Science and Technology Scholarship Program;
(5) The West Virginia Higher Education Grant Program;
(6) The Higher Education Adult Part-Time Student Grant Program;
(7) The West Virginia Providing Real Opportunities for Maximizing In-State Student Excellence (PROMISE) Scholarship Program;
(7) (8) The Higher Education Student Assistance Loan Program under established pursuant to article twenty-two-d, chapter eighteen of this code;
(8) (9) The West Virginia College Prepaid Tuition and Savings Program under established pursuant to article thirty, chapter eighteen of this code, which is administered by the State Treasurer;
(9) (10) The state aid programs for students of optometry, pursuant to article three of this chapter;
(10) (11) The state aid programs for students of veterinary medicine pursuant to section six-a, article eleven, chapter eighteen of this code;
(11) (12) Any reciprocal program and contract program for student aid under established pursuant to sections three and four, article four, chapter eighteen-b of this code;
(12) (13) Any other state-level student aid program programs in this code; and
(13) (14) Any federal grant or contract student assistance or support programs administered at the state level.
(e) Notwithstanding any provision of this chapter to the contrary, the Vice Chancellor for Administration shall prepare a single, comprehensive report regarding the implementation of the financial aid programs identified in subsection (d) of this section which are administered under his or her supervision. The report shall be provided to the Commission and the Council and shall be presented to the Legislative Oversight Commission on Education Accountability no later than November 30, 2009, and annually thereafter. The report shall address all financial aid issues for which reports are required in this code, as well as any findings and recommendations.
§18C-1-4. Eligibility of commuting students and children of military personnel for state funded student financial aid, grants and scholarships.

(a) Notwithstanding any other provision of this code or rule to the contrary, a student who attended a public or private high school outside the state is eligible for state funded student financial aid, grants and scholarships if:
(1) The student meets all other eligibility requirements for the aid, grant or scholarship; and either
(2) The student resided in West Virginia while attending high school in another state, and:
(A) The student resided with his or her parent or legal guardian who:
(i) Was a resident of this state; and
(ii) Had been a resident of this state for at least two years immediately preceding the student's attendance at the school;
(B) The student commuted during the school term on a daily basis from this state to the school;
(C) The student is a dependent of the parent or legal guardian upon which eligibility is based;
(D) The student has not established domicile outside the state; and
(E) At the discretion of the State Superintendent of Schools, as defined in section one, article one, chapter eighteen of this code:
(i) The school is fully accredited in that state to the degree acceptable to the State Superintendent of Schools; and
(ii) The school's curriculum requirements for graduation are equivalent to the curriculum requirements for graduation in this state, or sufficiently similar to those requirements, as determined by the State Superintendent of Schools. or
(b) Notwithstanding any other provision of this code or rule to the contrary, a student who attended a public or private high school outside the state is eligible for state funded student financial aid, grants and scholarships if:
(1) The student meets all other eligibility requirements for the aid, grant or scholarship; and
(2)
The student resided and attended high school in another state or a United States territory, United States possession or foreign country and:
(A) The student resided with his or her parent or legal guardian; and
(B) The student's parent or legal guardian:
(i) Served in the United States armed forces while the student attended high school in such state, territory, possession or country;
(ii) Was stationed for military purposes in such state, territory, possession or country; and
(iii) Maintained legal residence in West Virginia while stationed in such state, territory, possession or country.
(b) This section may not be construed to alter, amend or extend any application deadlines or other requirements established by law or policy.
(c) The provisions of this section expire on the thirtieth day of June, two thousand ten.
§18C-1-5. Higher Education Student Financial Aid Advisory Board.

(a) The Higher Education Student Financial Aid Advisory Board is established.
(b) The purpose of the board is to provide financial aid expertise and policy guidance to the Commission, the Council the PROMISE Scholarship Board, and the Vice Chancellor for Administration and the Executive Director of the PROMISE Scholarship Programs on all matters related to federal, state and private student financial aid resources and programs.
(c) It is the intent of the Legislature that the advisory board have the following responsibilities:
(1) Recommend methods to balance the needs of state students from all levels of financial need and academic ability by focusing attention on multiple financial aid programs which meet a variety of state objectives;
(2) Recommend methods for achieving a comprehensive system of student financial aid: (A) to maximize the return on the state's investment in such student financial aid programs by increasing the skills, qualifications and education achievement of the citizens receiving the benefits; and
(B) (3) To establish Recommend methods for coordinating administration among to coordinate state-funded student financial aid programs so that the state achieves the appropriate blend of student financial aid programs to expand the range of economic opportunities available to state citizens;
(4) Recommend ways to improve state-level administration of financial aid programs for the benefit of students and institutions;
(5) Recommend ways to improve financial aid outreach activities;
(6) Make recommendations, consistent with the nature of the PROMISE scholarship program as a merit-based student financial aid program.
(7) Recommend rules that align with the goals, objectives and priorities set forth in section one-a, article one, chapter eighteen-b of this code and article one-d of said chapter and with other state and system public policy goals, objectives and priorities.
(d) The Advisory Board consists of twelve members as follows:
(1) The chair of the Higher Education Policy Commission or a designee who is a member of the Commission;
(2) The chair of the West Virginia Council for Community and Technical College Education or a designee who is a member of the Council;
(3) The State Superintendent of Schools or a designee;
(4) The Secretary of Education and the Arts or a designee;
(5) The State Treasurer or a designee;
(6) A member of the PROMISE Scholarship Board selected by that board;
(7) Three financial aid administrators, excluding the president of the West Virginia Association of Student Financial Aid Administrators.
(A) All financial aid administrators are appointed by the Vice Chancellor for Administration in consultation with the Commission and the Council, as appropriate. Of the initial appointments, the vice chancellor shall appoint one member to a two-year term, one member to a three-year term and one member to a four-year term. Thereafter, all terms are for four years.
(B) It is the duty of the Vice Chancellor for Administration to select financial aid administrators so that the following types of institutions have representatives serving on the board on a rotating basis:
(i) State institutions of higher education which are doctoral- degree granting research universities;
(ii) State institutions of higher education which primarily grant baccalaureate degrees;
(iii) State institutions of higher education which are free-standing community and technical colleges;
(iv) State institutions of higher education which are administratively linked community and technical colleges; and
(v) Private institutions of higher education which are regionally accredited and located within the state.
(8) Three at-large private sector members who are appointed jointly by the Commission and the Council. Of the initial appointments, the Commission and the Council jointly shall appoint one member to a two-year term, one member to a three-year term and one member to a four-year term. Thereafter, all terms are for four years.
(A) At-large members shall:
(i) Be representative of the state's business and economic community;
(ii) Demonstrate knowledge, skill and experience in an academic, business or financial field; and
(iii) Reside within this state.
(B) An at-large member may not be:
(i) A member of a governing board or institutional board of advisors of any public or private institution of higher education; nor
(ii) A publicly elected official or an employee of any state, county or municipal agency.
(e) No more than two of the at-large members may be from the same political party and no more than one may reside in any congressional district.
(1) After the initial appointments, each appointed member serves a term of four years and may be reappointed upon expiration of the term.
(2) In the event of a vacancy among appointed members, the Commission and the Council shall appoint a person for the remainder of the unexpired term to represent the same interests as those of the original appointee. A person appointed to fill a vacancy is eligible for reappointment. Unless a vacancy occurs due to death or resignation, an appointed member continues to serve until a successor has been appointed and qualified as provided in this section.
(d) Advisory board membership. --
(1) The advisory board shall consist of seven members selected as follows:
(A) Three members appointed by the Commission;
(B) Two members appointed by the Council;
(C) One member appointed by the West Virginia Independent Colleges and Universities; and
(D) One member appointed by the West Virginia School Counselor Association.
(2) Members appointed by the Commission and the Council shall possess a broad knowledge of state and federal higher education student financial aid programs and have experience in administering these programs, preferably at the campus or system level.
(3) The initial appointments of members shall be made as follows:
(A) The Commission shall appoint one member to a one-year term, one member to a two-year term and one member to a three-year term;
(B) The Council shall appoint one member to a one-year term and one member to a three-year term;
(C) The West Virginia Independent Colleges and Universities shall appoint one member to a one-year term; and
(D) The West Virginia School Counselor Association shall appoint one member to a two-year term.
(4) After the initial terms are completed, appointments shall be made as follows:
(A) Members shall be appointed for three-year terms; and
(B) Members are eligible to succeed themselves for one additional consecutive term.
(5) The term of each member begins on July 1 of the year in which the appointment is made and ends on June 30 of the year in which the appointment expires.
(e) The first meeting of the advisory board shall be called by the Vice Chancellor for Administration, at which time the members shall elect a chairperson for an initial term ending on July 31, 2010. The chairperson may succeed himself or herself for an additional one-year term as chairperson. Thereafter, the term of the chairperson is for one year beginning on August 1 of the year in which elected and ending on July 31 of the following year. A member may not serve more than two consecutive terms as chairperson.
(f) In the event of a vacancy, a successor shall be appointed by the entity which appointed the vacating member for the unexpired term of the vacating member. A person appointed to fill a vacancy is eligible for reappointment for one additional consecutive term unless the time remaining in the unexpired term is less than six months in which case the person filling the vacancy is eligible for reappointment for two additional terms.
(f) (g) Members of the advisory board serve without compensation, but are entitled to reimbursement by the Commission for expenses, including travel expenses, which are actually incurred by the member in the official conduct of the business of the advisory board. Members are reimbursed in a manner consistent with rules of the Higher Education Policy Commission.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR MAXIMIZING IN-STATE STUDENT EXCELLENCE SCHOLARSHIP PROGRAM.

§18C-7-3. Definitions.

(a) General. -- For the purposes of this article, terms have the meaning ascribed to them in section two, article one of this chapter, unless the context in which the term is used clearly requires a different meaning or a specific definition is provided in this section.
(b)
Definitions. -- (a) (1) "Eligible institution" means:
(1) (A) A state institution of higher education as defined in section two, article one, chapter eighteen-b of this code;
(2) (B) Alderson-Broaddus College, Appalachian Bible College, Bethany College, Davis and Elkins College, Mountain State University, Ohio Valley University, the University of Charleston, West Virginia Wesleyan College and Wheeling Jesuit University, all in West Virginia. Any institution listed in this subdivision ceases to be an eligible institution if it meets either of the following conditions:
(A) (i) Loses It loses regional accreditation; or
(B) (ii) Changes It changes its status as a private, not-for- profit institution;
(3) (C) Any for-profit institution that meets the following criteria:
(i) Is regionally accredited through the Higher Learning Commission of the North Central Association of Colleges and Schools; and
(ii) Has a physical campus in West Virginia at which the eligible student attends classes;
(D)
Any other public or private regionally accredited institution in this state public or private, approved by the board commission.
(b) "Board" means the West Virginia PROMISE Scholarship Board of the West Virginia PROMISE Scholarship Program as provided for in section four of this article.
(c) (2) "Tuition" means the quarter, semester or term charges imposed by a an eligible state institution of higher education and, additionally, all mandatory fees required as a condition of enrollment by all students. For the purposes of this article, the following conditions apply:
(A) West Virginia University, Potomac State College and West Virginia University Institute of Technology are considered separate institutions for purposes of determining tuition rates; and
(B) The tuition amount paid by undergraduate health sciences students at West Virginia University is considered to be the same as the amount of tuition paid by all other West Virginia University undergraduate students.
(d) (3) "Enrolled" means either currently enrolled or in the process of enrolling in an eligible institution.
§18C-7-4. Dissolution of the PROMISE Scholarship Board; transfer of funds.

(a) The West Virginia PROMISE Scholarship Board is hereby dissolved.
(b) All funds administered by the former PROMISE Scholarship Board shall be administered by the Higher Education Policy Commission.
§18C-7-5. Powers and duties of the West Virginia Higher Education Policy Commission regarding the PROMISE Scholarship.

(a) Powers of board Commission. -- In addition to the powers granted by any other provision of this article code, the board Commission has the powers necessary or convenient to carry out the purposes and provisions of this article including, but not limited to, the following express powers:
(1) To adopt and amend bylaws;
(2) (1) To propose promulgate legislative rules to the Commission 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;
(3) (2) To invest any of its funds at the board's discretion, the funds of the West Virginia PROMISE Scholarship Fund established in section seven of this article with the West Virginia Investment Management Board in accordance with the provisions of article six, chapter twelve of this code. Any investments made under pursuant to 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 conducting 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;
(4) (3) To execute contracts and other necessary instruments;
(5) (4) To impose reasonable requirements for residency for students applying for the PROMISE scholarship. Except as provided in section four, article one of this chapter, the requirements shall include that an eligible a student must shall have met the following requirements to be eligible:
(A) Completed at least one half of the credits required for high school graduation in a public or private high school in this state; or
(B) Received instruction in the home or other approved place pursuant to Exemption B subsection (c), section one, article eight, chapter eighteen of this code for the two years immediately preceding application;
(C) This subdivision subsection may does not be construed to establish residency requirements for matriculation or fee payment purposes at state institutions of higher education;
(6) (5) 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. Any services provided or secured to implement or administer the provisions of this section remain under the direction and authority of the Vice Chancellor for Administration;
(A) The board is encouraged to utilize the employees of the Vice Chancellor for Administration to provide administrative and technical assistance.
(B) Any services provided for the board by such employees remain under the direction and authority of the vice chancellor.
(7) (6) To solicit and accept gifts, including bequests or other testamentary gifts made by will, trust or other disposition, grants, loans and other aid from any source and to participate in any federal, state or local governmental programs in carrying out the purposes of this article;
(8) (7) To define the terms and conditions under which scholarships are awarded with the minimum requirements being set forth in section six of this article; and
(9) (8) To establish other policies, procedures and criteria necessary to implement and administer the provisions of this article.
(b) Duties of board Commission. -- In addition to any duty required by any other provision of this article code, the board Commission has the following responsibilities:
(1) To operate the program in a fiscally responsible manner and within the limits of available funds;
(2) To operate the PROMISE Scholarship program as a merit- based program;
(3) To raise adjust academic eligibility requirements before taking any other steps to limit student awards should projections indicate that available funds will not be sufficient to cover future costs; and
(4) To maintain contact with graduates who have received PROMISE scholarships and to provide a written statement of intent to recipients who are selected to receive a PROMISE scholarship after the effective date of this section notifying them that acceptance of the scholarship entails a responsibility to supply the following:
(A) Information requested by the board Commission to determine the number and percentage of recipients who shall:
(i) (i) Continue to live in West Virginia after graduation;
(ii) (ii) Obtain employment in West Virginia after graduation; and
(iii) (iii) Enroll in post-graduate education programs; and
(B) For PROMISE scholars who enroll in post-graduate education programs,
the name of the state in which each post-graduate institution is located; and
(B) (C) Such Any other relevant information as the board may Commission reasonably request requests to implement the provisions of this subdivision;
(5) To analyze and use the data collected pursuant to subdivision (4) of this subsection to, and:
(A) Report the findings annually to the Joint Standing Committee on Education by the tenth day of January, two thousand seven and annually thereafter Legislative Oversight Commission on Education Accountability; and
(B) Make annual recommendations annually to the Joint Standing Committee on Education Legislative Oversight Commission on Education Accountability regarding any actions the board Commission considers necessary or expedient to encourage PROMISE recipients to live and work in the state after graduation.
§18C-7-6. Promise scholarship program requirements; legislative rule.

(a) A PROMISE scholarship annual award meets shall meet the following conditions:
(1) Equals but does not exceed the cost of tuition for a student enrolled in a state institution of higher education;
(2) Equals an amount determined by the board, but not to exceed the cost of tuition at state institutions of higher education, for a student enrolled in an eligible institution that is not a state institution of higher education;
(1) For a student enrolled in a state institution of higher education, the annual award is equal to the lesser of the cost of tuition or $4,750, except that a student who was awarded and used a PROMISE scholarship annual award prior to January 1, 2010, shall continue to receive the annual award calculated under the same terms and conditions that applied on the day before the effective date of this article;
(2) For a student enrolled in an eligible institution other than a state institution of higher education, the annual award is equal to, but may not exceed, the lesser of the cost of tuition or $4,750, except that a student who was awarded and used a PROMISE scholarship annual award prior to January 1, 2010, shall continue to receive the annual award calculated under the same terms and conditions that applied on the day before the effective date of this article;
(3) The annual award may exceed $4,750, if the Commission determines that adequate funds are available, but in any case, may not be greater than the actual cost of tuition;
(3) Is (4) The annual award shall be used by an eligible institution to supplement, but may not to supplant, a tuition and fee waiver for which the individual is eligible pursuant to section five, six-a, or seven or seven-b, article ten, chapter eighteen-b of this code.
(b) The total cost of all scholarships awarded by the board Commission in any year may not exceed the amount of funds available to the board Commission during that fiscal year.
(c) An individual shall meet the following conditions in In order to be eligible to receive a PROMISE scholarship award an individual shall:
(1) Submit a scholarship award application to the board Commission:
(A) Within two years of graduating from high school or within two years of acquiring a general equivalency degree if provided instruction in the home or other approved place pursuant to Exemption B subsection (c), section one, article eight, chapter eighteen of this code; or
(B) Within seven years of initially entering military service, and within one year of discharge from such military service, if the individual has entered the United States armed services within two years after graduating from high school;
(2) Apply for and submit to the board a Free Application for Federal Student Aid;
(3) Maintain a grade point average of at least 3.0 on a 4.0 grading scale in the required core and elective course work necessary to prepare students for success in post-secondary education at the associate and baccalaureate degree levels as determined by the board Commission, if the individual has completed not more than one semester or term at an institution of higher education, excluding credits earned in advanced placement, international baccalaureate, dual credit and comparable courses while the student is enrolled in high school;
(4) Maintain appropriate academic progress toward the completion of a degree at the undergraduate education level as determined by the board Commission if the individual has completed more than one semester or term at an institution of higher education, excluding credits earned in advanced placement, international baccalaureate, dual credit and comparable courses while the student is enrolled in high school;
(5) Be a United States citizen or legal immigrant to the United States;
(6) Meet additional objective standards as the board Commission considers necessary to promote academic excellence and to maintain the financial stability of the fund; and
(6) (7) Enroll in an eligible institution. Any A student enrolled at an eligible institution who receives a PROMISE scholarship award may retain and renew the scholarship to complete his or her undergraduate education at that institution or any other eligible institution under the following circumstances:
(A) If The institution at which the student is enrolled loses its status as an eligible institution pursuant to the provisions of subdivision (2), subsection (a), section three subdivision (1), subsection (b) of this article; and
(B) If The student meets all other renewal requirements of this code and of board Commission rules.
(7) (d) It is the intent of the Legislature that the board Commission shall strongly encourage prospective candidates for the PROMISE scholarship to perform at least twenty hours of unpaid community service while in high school to help prepare them for success in post-graduate post-secondary education. The community service may include, but is not limited to, participation with nonprofit, governmental or community-based organizations designed to with any or all of the following purposes:
(A) Improve (1) Improving the quality of life for community residents;
(B) Meet (2) Meeting the needs of community residents; or
(C) Foster (3) Fostering civic responsibility.
(d) The board shall recommend a legislative rule to the Commission to implement the provisions of this article.
(e) The Commission shall promulgate a legislative rule in accordance with the provisions of article three-a, chapter twenty- nine-a of this code.
(1) The rule shall include at least the following provisions:
(A) The amount of a PROMISE scholarship award may not exceed the cost of tuition at state institutions of higher education;
(B) (A) The amount of a PROMISE scholarship award in combination with aid from all other sources may not exceed the cost of education at the institution the recipient is attending. This provision 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;
(C) (B) Additional objective standards as the board Commission considers necessary:
(i) To promote academic excellence;
(ii) To maintain the financial stability of the fund; and
(iii) To operate the program within the limits of available funds.
(D) (C) Provisions for making the highest and best use of the PROMISE Scholarship Program in conjunction with the West Virginia Prepaid Tuition Trust Act West Virginia College Prepaid Tuition and Savings Program Act set forth in article thirty, chapter eighteen of this code;
(E) (D) A provision defining the relationship of PROMISE scholarship awards to all other sources of student financial aid to ensure maximum coordination. The provision shall include the following:
(i) Methods to maximize student eligibility for federal student financial aid;
(ii) A requirement that PROMISE scholarship awards not supplant tuition and fee waivers; and
(iii) Clarification of the relationship between the PROMISE Scholarship Program, tuition savings plans and other state-funded student financial aid programs;
(F) (E) A method for awarding scholarships within the limits of available appropriations, including circumstances when program funds are not sufficient to provide awards to all eligible applicants. The board Commission may not utilize use any of the following methods:
(i) Making the Providing for an annual PROMISE scholarship award for an amount that is less than the cost of full tuition for a student enrolled in a state institution of higher education amounts provided for in this section; or
(ii) Eliminating any current recipient from eligibility; and
(G) (F) A method for applicants to appeal determinations of eligibility and renewal.
(2) The rule may provide for or require the following at the board's Commission's discretion:
(A) Requiring repayment of the amount of the scholarship, in whole or in part, if a scholarship recipient chooses to work outside the state after graduation. Provided, That The rule may not require a recipient to repay a scholarship, in whole or in part, unless the prospective recipient has been informed of this requirement in writing before initial acceptance of the PROMISE scholarship award;
(B) Targeting a portion of the scholarship funds to be used for applicants enrolled in an engineering, science, technology or other designated program;
(C) Determining what other sources of funding for higher education are to be deducted from the PROMISE scholarship award; and
(D) Providing additional criteria as determined by the board Commission.
(3) The Legislature finds that an emergency exists and, therefore, the board Commission shall file a rule to implement the provisions of this section as an emergency rule pursuant to the provisions of article three-a, chapter twenty-nine-a of this code. The rule is subject to the prior approval of the Legislative Oversight Commission on Education Accountability.
(4) Any rule promulgated by the Commission pursuant to previous enactments of this article in effect on the effective date of the amendment and reenactment of this article in the year 2009 remains in effect until amended, modified, repealed or replaced by the Commission.
§18C-7-7. West Virginia PROMISE Scholarship Fund continued.

(a) The special revenue fund in the State Treasury designated and known as the PROMISE Scholarship Fund is continued. The fund consists of moneys from the following sources:
(1) All appropriations to the fund from the West Virginia Lottery, video lottery and taxes on amusement devices;
(2) All appropriations by the Legislature for the PROMISE Scholarship Fund;
(3) Any gifts, grants or contributions received for the PROMISE Scholarship Program; and
(4) All interest or other income earned from investment of the fund.
(b) The allocations to the fund are subject to appropriation by the Legislature. Nothing in this article requires any specific level of funding by the Legislature nor guarantees nor entitles any individual to any benefit or grant of funds.
(c) For the fiscal year beginning July 1, 2006, it is the intent of the Legislature that the aggregate of the amount of moneys transferred to the fund pursuant to section eighteen-a, article twenty-two, chapter twenty-nine of this code, and such any other amounts of public moneys that may be transferred to the fund by appropriation of the Legislature, shall equal, but may not exceed, $40 million. For each fiscal year thereafter until and including the fiscal year ending June 30, 2011 2009, it is the intent of the Legislature that this aggregate be an amount two percent greater than the aggregate established by this subsection for the prior fiscal year. For the fiscal year beginning July 1, 2009, it is the intent of the Legislature that the aggregate of the amount of moneys transferred to the fund pursuant to section eighteen-a, article twenty-two, chapter twenty-nine of this code and any other amounts of public moneys that may be transferred to the fund by appropriation of the Legislature, shall equal $45 million. For the fiscal year beginning July 1, 2010, it is the intent of the Legislature that the aggregate of the amount of moneys transferred to the fund shall equal $48 million. For the fiscal year beginning July 1, 2011, and every fiscal year thereafter, it is the intent of the Legislature that the aggregate of the amount of moneys transferred to the fund shall equal $47,500,000 For the fiscal year beginning July 1, 2011, and in each fiscal year thereafter, it is the intent of the Legislature that this aggregate not exceed the aggregate established by this subsection for the fiscal year beginning July 1, 2011.
(d) The board Commission may expend the moneys in the fund to implement the provisions of this article."