WSR 98-14-007

EMERGENCY RULES

HIGHER EDUCATION

COORDINATING BOARD

[Filed June 19, 1998, 9:12 a.m.]



Purpose: These rules relate to the distribution of state matching grants for the graduate fellowship program.

Citation of Existing Rules Affected by this Order: Repealing WAC 250-73-030; and amending WAC 250-73-015, 250-73-020, 250-73-025, 250-73-035, 250-73-040, and 250-73-045.

Statutory Authority for Adoption: RCW 28B.10.883.

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: Legislation in 1998 (SSB 6727) provided a new source of appropriated funds for the graduate fellowship trust fund. This bill was signed by the governor and is effective June 11, 1998. The public four-year higher education institutions have requested a revised distribution system for the available funds. Therefore, emergency adoption of these revised WACs is requested.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, amended 0, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 6, repealed 1.

Number of Sections Adopted Using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: Immediately.

June 19, 1998

Patricia Mosqueda

Policy Associate

OTS-2283.1

AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-015  Definitions. (1) "Board" means the higher education coordinating board.

(2) "Institution" means a public four-year college or university within the state of Washington.

(3) "Graduate fellowship program" means the program established by the legislature as provided by RCW 28B.10.880 through 28B.10.887.

(4) "Trust fund" means the graduate fellowship trust fund established by the legislature as provided by RCW 28B.10.882.

(5) "Private donation" means funds made specifically to the graduate fellowship program from nonpublic fund sources.

(6) "Pledge" means an agreement between an institution and a private donor(s) establishing terms for a private donation to be made within a period of ((time)) two years as provided by RCW 28B.10.884.

(7) "Allocate" means to assign a share of the available fellowships to specific institutions until a date certain.

(8) "Designate" means to set aside or reserve trust funds as a potential match to a pledged private donation upon notification to the board.

(9) "Release funds" means the transfer of trust funds to an institution after notification to the board that the full amount of a pledged and designated private donation has been received.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-015, filed 7/23/90, effective 8/23/90.]



AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-020  Allocation system. (((1) Until July 1, 1991, the board shall allocate trust funds consistent with the allocation system as provided in chapter 16, Laws of 1990 1st ex. sess.

(2) The board shall allocate available trust funds according to WAC 250-73-025 when no legislative directive provides for the allocation of available trust funds.

(3) The six fellowships allocated under chapter 16, Laws of 1990 1st ex. sess. to be divided equally among Central Washington University, Eastern Washington University, Western Washington University and The Evergreen State College shall be allocated as follows:

(a) One fellowship will be reserved for each of the four institutions until June 30, 1991.

(b) Two fellowships will be made available on a first come, first served basis to any of the four institutions that has fully funded the reserved fellowship allocated to it. No institution shall be eligible for more than one of the fellowships allocated in this subsection.

(c) First come, first served shall be determined by the date and time of receipt of notification of a pledge at the office of the board. The board shall accept receipt of written notification no sooner than 8:00 a.m. on August 24, 1990. If the board receives written notification from more than two institutions at 8 a.m. on August 24, 1990, then the designation shall be made by drawing. The board shall notify the affected institutions of the date and time of the drawing which shall be conducted openly at the office of the board.

(4) After June 30, 1991, any funds allocated under chapter 16, Laws of 1990 1st ex. sess., that have not been designated shall be available for the board to allocate under WAC 250-73-025 unless otherwise directed by the legislature.)) (1) The board shall allocate available trust funds among institutions according to WAC 250-73-025 when no legislative directive provides for the allocation of available trust funds.

(2) Any funds balance in the trust account on June 11, 1998, and not designated to a particular institution, will be distributed according to provisions of WAC 250-73-025 as revised.

(3) Trust funds must be distributed in increments of $25,000 for the state matching grant portion for each graduate fellowship. Therefore, individual subaccount balances for each institution will be maintained in the trust fund when the amount allocated for each institution is not sufficient to provide for a full fellowship.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-020, filed 7/23/90, effective 8/23/90.]



AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-025  Allocation system effective ((July 1, 1991)) June 11, 1998. ((The board shall notify all institutions by July 1, 1991, of the availability of matching funds under WAC 250-73-020, 250-73-030, and 250-73-040 and of the total number of fellowships available. The board shall allocate the available fellowships as follows:

(1) University of Washington - the first, fourth, and sixth available fellowships.

(2) Washington State University - the second and fifth available fellowships.

(3) Central Washington University, Eastern Washington University, The Evergreen State College, and Western Washington University - the third available fellowship.

(a) Fellowships available under this section shall be designated on a first come first served basis to any of the four institutions that has fully funded the designated fellowships already allocated.

(b) First come, first served shall be determined by the date and time of receipt of written notification of a pledge at the office of the board. The board shall accept receipt of written notification no sooner than 8:00 a.m. on July 1, 1991. If the board receives written notification from more than one institution on the same date and time, then the designation shall be made by drawing. The board shall notify the affected institutions of the date and time of the drawing which shall be conducted openly at the office of the board.

(4) At the beginning of each fiscal year, the board shall reallocate available matching funds continuing the numerical sequence initiated July 1, 1991.

(5) An institution shall not be eligible for funds from reallocation if it has forfeited allocated or designated funds in the preceding fiscal year.)) At the time funds become available, the board shall notify all institutions of the amount of funding and the number of graduate fellowships available to each institution or group of institutions. The board shall allocate available funding for graduate fellowships as follows:

(1) University of Washington - Forty-seven percent of total available funds (stipulating the number of fellowships which can be fully funded).

(2) Washington State University - Thirty-two percent of total available funds (stipulating the number of fellowships which can be fully funded).

(3) Central Washington University, Eastern Washington University, The Evergreen State College, and Western Washington University - Twenty-one percent of total available funds (stipulating the number of fellowships which can be fully funded).

Graduate fellowships available under this subsection (3) shall be allocated to individual institutions according to an agreement to be prepared by the four institutions and submitted each year to the higher education coordinating board, prior to allocation of funds by the board.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-025, filed 7/23/90, effective 8/23/90.]



AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-035  Designation ((of trust)) to an institution of allocated funds. (((1) An institution shall make written notification of a pledge to the board which shall include a copy of the agreement entered into with the private donor(s) concerning the terms of the donation.

(2) The board may designate twenty-five thousand dollars from available trust funds for an institution's pledged fellowship when the institution provides notification according to subsection (1) that a private donation of twenty-five thousand dollars has been pledged for a graduate fellowship.

(3) The board shall designate trust funds consistent with the allocation system as provided in WAC 250-73-025.

(4) If a pledged private donation is not received within two years from the date of designation, the board shall make the designated funds available for another pledged fellowship.)) (1) Within one year of notification by the board that an institution has been allocated one or more graduate fellowships, the institution shall:

(a) Make written notification to the board that pledge(s) for private donation(s) have been secured; and

(b) Provide a copy to the board of the agreement(s)/pledge(s) entered into with the private donor(s) concerning terms of the donation(s).

(2) Upon notification pursuant to subsection (1) of this section, the board shall designate funds for that institution. Funds will be designated for a period of up to two years.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-035, filed 7/23/90, effective 8/23/90.]



AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-040  Reallocation of previously allocated or designated funds. (1) The board shall reallocate previously ((designated)) allocated funds when((:

(a))) an institution has not ((received a full private donation for designated matching trust funds within the required period of time under WAC 250-73-035.

(2) The board shall reallocate any previously designated matching trust fund available under this section by July 1 of each year)) secured a pledge within one year of notification that funds were available to that institution.

(2) The board shall reallocate previously designated funds when an institution has not received the full amount in private donations within two years from the time that state matching funds have been designated for that institution (based on a pledge for private funding).

(3) An institution shall not be eligible for reallocated funds if it has forfeited allocated or designated funds in the preceding twelve-month period.

(4) The following reallocation guidelines will be utilized by the board:

(a) If the University of Washington forfeits allocated/designated funds, reallocation will be made to Washington State University;

(b) If Washington State University forfeits allocated/designated funds, reallocation will be made to the University of Washington;

(c) If Central Washington University, Eastern Washington University, The Evergreen State College, or Western Washington University forfeits allocated/designated funds, reallocation will be made consistent with the annual distribution agreement developed by these four institutions. If no reallocation provision has been included in the agreement, the board will reallocate to an eligible institution (of the four institutions cited in this subsection). If more than one eligible institution requests a reallocation, the reallocation will be based on a drawing among the eligible institutions requesting participation in the drawing.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-040, filed 7/23/90, effective 8/23/90.]



AMENDATORY SECTION (Amending WSR 90-16-029, filed 7/23/90, effective 8/23/90)



WAC 250-73-045  Release of funds. Upon written notification that the full amount of a pledged and designated private donation has been received, the board shall request a warrant for the release of matching trust funds within five working days.



[Statutory Authority: RCW 28B.10.883. 90-16-029, § 250-73-045, filed 7/23/90, effective 8/23/90.]



REPEALER



The following section of the Washington Administrative Code is repealed:



WAC 250-73-030 Allocation of earnings from investments.

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