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Key: Green = existing Code. Red = new code to be enacted
Senate Bill No. 373
(By Senators Tomblin (Mr. President) and Caruth,
By Request of the Executive)
____________
[Introduced February 25, 2009; referred to the Committee on
Education; and then to the Committee on Finance.]
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A BILL to amend and reenact §18C-1-5 of the Code of West Virginia,
1931, as amended; and to amend and reenact §18C-7-3, §18C-7-4,
§18C-7-5, §18C-7-6, §18C-7-7 and §18C-7-8 of said code, all
relating to student financial aid resources and programs;
reconstituting the Financial Aid Advisory Board; dissolving
the PROMISE Scholarship Board and transferring its powers to
the Higher Education Policy Commission; authorizing the Higher
Education Policy Commission to invest certain funds with the
West Virginia Investment Management Board; capping the maximum
amount of the West Virginia Providing Real Opportunities for
Maximizing In-State Student Excellence (PROMISE) scholarship
annual award for certain students at the lesser of the cost of
tuition at a state institution of higher education or $4,500;
clarifying that a PROMISE scholarship may supplement certain
tuition and fee waivers; and authorizing the Higher Education Policy Commission to promulgate rules.
Be it enacted by the Legislature of West Virginia:
That §18C-1-5 of the Code of West Virginia, 1931, as amended,
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:
ARTICLE 1. FINANCIAL ASSISTANCE GENERALLY.
§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
programs by increasing the skills, qualifications and education
achievement of the citizens receiving the benefits; and
(B) To establish methods for coordinating administration among
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;
(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) The Advisory Board consists of eight members, as follows:
(1) Four members appointed by the Higher Education Policy
Commission;
(2) Three members appointed by the West Virginia Council for
Community and Technical College Education; and
(3) One member appointed by the West Virginia Independent
Colleges and Universities.
(e) Each member appointed shall serve a term of four years.
Of the members of the Advisory Board first appointed:
(1) The Higher Education Policy Commission shall appoint one
member to a one-year term, one member to a two-year term, one
member to a three-year term, and one member to a four-year term;
(2) The West Virginia Council for Community and Technical
College Education shall appoint one member to a two-year term, one
member to a three-year term and one member to a four-year term; and
(3) The West Virginia Independent Colleges and Universities
shall appoint one member to a four-year term.
(f) 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 a one-year term ending on June 30,
2010. The chairperson may serve no more than two consecutive terms
as chair.
(g) In the event of a vacancy, a successor shall be appointed
by the entity that appointed the vacating appointee for the
unexpired term of the vacating 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 as provided in this
section.
(f) (h) 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 shall be reimbursed in a manner
consistent with rules of the Higher Education Policy Commission the
guidelines of the Travel Management Office of the Department of
Administration.
ARTICLE 7. WEST VIRGINIA PROVIDING REAL OPPORTUNITIES FOR
MAXIMIZING IN-STATE STUDENT EXCELLENCE
SCHOLARSHIP PROGRAM.
§18C-7-3. Definitions.
(a) "Eligible institution" means:
(1) A state institution of higher education as defined in
section two, article one, chapter eighteen-b of this code;
(2) 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:
(A) Loses regional accreditation; or
(B) Changes its status as a private, not for profit
institution.
(3) Any other 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. "Commission" means the West Virginia
Higher Education Policy Commission established in article one-b,
chapter eighteen-b of this code.
(c) "Tuition" means the quarter, semester or term charges
imposed by a state institution of higher education and all
mandatory fees required as a condition of enrollment by all
students.
(d)(c) "Enrolled" means either currently enrolled or in the
process of enrolling in an eligible institution.
(d) "Tuition" means the quarter, semester or term charges
imposed by a state institution of higher education and all
mandatory fees required as a condition of enrollment by all
students.
§18C-7-4.
Dissolution of the PROMISE Scholarship Board; transfer
of funds.
(a) The West Virginia PROMISE Scholarship Board is comprised
of fifteen members. Any member appointed by the Governor prior to
the effective date of this section may continue to serve the term
for which the member has been appointed: Provided, That by the
first day of April, two thousand seven, and thereafter, the
membership of the board is comprised as follows:
(1) The chairperson of the commission or a designee who is a
member of the commission;
(2) The chancellor of the commission or his or her designee;
(3) The State Superintendent of Schools or his or her
designee;
(4) The Secretary of Education and the Arts;
(5) The State Treasurer or his or her designee;
(6) The President of the West Virginia Association of Student
Financial Aid Administrators;
(7) The Executive Director of the Governor's Workforce
Investment Division;
(8) Eight at-large members, appointed by the Governor with the
advice and consent of the Senate:
(A) One of the eight at-large members has knowledge, skill and
expertise in state and federal student financial aid policy and
management;
(B) Seven of the eight at-large members represent the state's
business and economic community and have knowledge, skill and
experience in an academic, business or financial field.
(C) The eight at-large members shall be residents of the
state. No more than five of the eight at-large members may be from
the same political party. No more than three of the eight at-large
members may be from the same congressional district.
(b) At-large members serve a term of four years and may be
reappointed at the expiration of their terms. In the event of a
vacancy among at-large members, the Governor shall appoint a person
representing the same interests to fill the unexpired term. A
person appointed to fill a vacancy shall be appointed only for the
remainder of that term and is eligible for reappointment. Unless
a vacancy occurs due to death, resignation or removal pursuant to
subsection (e) of this section, an at-large member of the board
shall continue to serve until a successor has been appointed and
qualified as provided in subsection (a) of this section. All terms
are for four years.
(c) Members of the board shall serve without compensation, but
shall be reimbursed by the Office of the Secretary of Education and
the Arts for expenses, including travel expenses, actually incurred
by a member in the official conduct of the business of the board at
the same rate as is paid the employees of the state.
(d) The Secretary of Education and the Arts is the chairperson and presiding officer of the board. A majority of the members of
the board constitute a quorum for the transaction of business.
(e) The at-large members appointed by the Governor may be
removed by the Governor for official misconduct, incompetence,
neglect of duty or gross immorality and then only in the manner
prescribed by law for the removal by the Governor of the state
elective officers in accordance with section five, article six,
chapter six of this code.
(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 or the PROMISE Scholarship
Supplemental Fund established in section eight 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 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 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 student must have met the following
requirements:
(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 may 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;
(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 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:
(A) Information requested by the board commission to determine
the number and percentage of recipients who:
(i) Continue to live in West Virginia after graduation;
(ii) Obtain employment in West Virginia after graduation; and
(iii) Enroll in post-graduate education programs and the name of the state in which each post-graduate institution is located;
and
(B) Such other relevant information as the board commission
may reasonably request to implement the provisions of this
subdivision.
(5) To analyze the data collected pursuant to subdivision (4)
of this subsection, 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 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. The findings and
recommendations required by this subsection may be combined with a
comprehensive report on other state financial aid programs and
reported to the Legislative Oversight Commission on Education
Accountability by an annual date established by that commission,
notwithstanding dates for financial aid reports established
elsewhere in this code.
§18C-7-6. Promise scholarship program requirements; legislative
rule.
(a) A PROMISE scholarship annual award meets 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 shall equal but not exceed the lesser
of the cost of tuition or $4500: Provided, That if a student was
awarded a PROMISE scholarship annual award prior to January 1,
2009, the annual award shall equal but not exceed the cost of
tuition;
(2) For a student enrolled in an eligible institution that is
not a state institution of higher education, the annual award shall
equal but not exceed the lesser of the cost of tuition or $4500:
Provided, That if a student was awarded a PROMISE scholarship
annual award prior to January 1, 2009, the annual award shall equal
but not exceed the cost of tuition;
(3) Is The annual award shall be used by an eligible
institution to supplement, but not to supplant, a tuition and fee
waiver for which the individual is eligible pursuant to sections
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 order
to be eligible to receive a PROMISE scholarship award:
(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 commission 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) Meet additional objective standards as the board
commission considers necessary to promote academic excellence and
to maintain the financial stability of the fund;
(6) Enroll in an eligible institution. Any 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:
(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 of this article; and
(B) If the student meets all other renewal requirements of
this code and of board commission rules.
(7) 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 education. The community service may
include, but is not limited to, participation with nonprofit,
governmental or community-based organizations designed to:
(A) Improve the quality of life for community residents;
(B) Meet the needs of community residents; or
(C) Foster civic responsibility.
(d) The board shall recommend a legislative rule to the
commission to implement the provisions of this article. 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 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.
§18C-7-7. West Virginia PROMISE Scholarship Fund created.
(a) The special revenue fund in the State Treasury designated
and known as the "PROMISE Scholarship Fund" is continued. The fund
consists of:
(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
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, 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, 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.
§18C-7-8. PROMISE Scholarship Supplemental Fund recreated, and
promulgation of rules.
(a) The Legislature recognizes that the PROMISE scholarship
program may lead to an increased number of individuals attending
the state institutions of higher education, and therefore, it may
contribute to increases in expenses greater than the additional tuition income generated by increased enrollment. Therefore, there
is hereby created a special revenue fund in the State Treasury
which shall be designated and known as the "PROMISE Scholarship
Supplemental Fund." The fund shall consist of all appropriations
to the fund and all interest earned from the investment of the fund
and any gifts, grants or contributions received by the fund. The
board commission shall expend the moneys in this fund to implement
the provisions of this article and may only expend the moneys for
state institutions of higher education.
(b) The board commission shall promulgate rules for
administering the fund in accordance with article three-a, chapter
twenty-nine-a of this code. The rules shall include the following:
(1) Provisions for distributing the moneys from the fund to
state institutions of higher education: Provided, That the funds
shall be divided among the state institutions of higher education
in a reasonable manner to reflect the actual distribution of
PROMISE scholarship students among the institutions; and
(2) A procedure for submitting a budget request to the
Governor: Provided, That nothing in this article shall require any
appropriation by the Legislature.
NOTE: The purpose of this bill is to cap the amount of a
PROMISE scholarship annual award at the lesser of the cost of
tuition at a state institution of higher education or $4500 for
students receiving a PROMISE scholarship, to dissolve the PROMISE
Board and transfer its powers to the Higher Education Policy
Commission, and to reconstitute the Financial Aid Advisory Board.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.