5598-S2 AMS FINK S2303.1

5598-S2 AMS FINK S2303.1

2SSB 5598 - S AMD - 145

By Senator Finkbeiner

WITHDRAWN 3/11/99

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature intends to strengthen the link between postsecondary education and K-12 education by creating the Washington's promise scholarship program for academically successful high school graduates. The legislature finds that, increasingly, an individual's economic viability is contingent on postsecondary educational opportunities, yet the state's full financial obligation is eliminated after the twelfth grade. Students who work hard in kindergarten through twelfth grade and successfully complete high school with high academic marks may not have the financial ability to attend college because they cannot obtain financial aid or the financial aid is insufficient.

NEW SECTION. Sec. 2. (1) To qualify for a Washington's promise scholarship, a student must meet both the academic and financial requirements in this section.

(2)(a) Beginning with the graduating class of 1999 and ending with the graduating class of 2002, students in the top fifteen percent of each high school graduating class meet the academic requirement for the scholarship.

(b) Beginning with the tenth grade class taking the Washington assessment of student learning during the 2000-01 school year, students who pass all subjects on their first attempt meet the academic requirement for the scholarship.

(c) Beginning with the tenth grade class taking the preliminary scholastic assessment test during the 2000-01 school year, students who score in the top fifteen percent of those taking the preliminary scholastic assessment test meet the academic requirement for the scholarship.

(3) Students must graduate from high school or its equivalent.

(4) To meet the financial requirement of the scholarship, the student's family income must not exceed one hundred thirty-five percent of the state median family income.

NEW SECTION. Sec. 3. (1) The Washington's promise scholarship program shall be administered by the higher education coordinating board.

(2) The office of the superintendent of public instruction shall provide data on class ranking and Washington assessment of student learning scores to the higher education coordinating board to assist the higher education coordinating board in awarding scholarships. All student data should be considered confidential and used solely for the purposes of providing scholarships to eligible students.

(3)(a) For students eligible under section 2(2)(a) of this act, the office of the superintendent of public instruction shall provide the higher education coordinating board with the names, addresses, and unique numeric identifiers of students in the top fifteen percent of each respective high school graduating class in Washington state. This shall be done by the end of the summer following completion of the twelfth grade to enable students to use the Washington's promise scholarship upon completion of twelfth grade. The higher education coordinating board shall make awards to qualifying students in an amount equal to the cost of a full-time class load for one academic year at a public community college for each year of these students' eligibility.

(b) For students eligible under section 2(2)(b) of this act, the office of the superintendent of public instruction shall provide the higher education coordinating board with the names of tenth grade students who passed all subjects of the Washington assessment of student learning. This shall be done by the end of the summer following receipt of assessment scores to enable students to use the Washington's promise scholarship upon completion of twelfth grade. For each qualifying student, the higher education coordinating board shall establish an account and place in the account two years of tuition units at the community college rate, as provided for in chapter 28B.95 RCW.

(c) Students shall notify the higher education coordinating board of their preliminary scholastic aptitude test scores to determine eligibility under section 2(2)(c) of this act.

(4) The scholarship may only be used at accredited institutions of higher education in the state of Washington.

(5) Scholarships may not be transferred.

(6) Scholarships may not be refunded to students. Scholarships may only be returned to the higher education coordinating board.

(7) Scholarships awarded under this section may be used for college-related expenses, including but not limited to, tuition, room and board, books, materials, and transportation.

(8) The Washington's promise scholarship program is not intended to supplant any federal scholarship or tax program related to postsecondary education.

(9) The scholarship will be awarded only in those academic years for which the higher education coordinating board verifies that the financial aid program in RCW 28B.10.800 through 28B.10.824 has been funded to reach the goal of providing financial aid to all eligible students up to sixty-five percent of median family income.

(10)(a) The Washington's promise scholarship account is created in the custody of the state treasurer. The account shall be a discrete nontreasury account retaining its interest earnings in accordance with RCW 43.79A.040.

(b) The higher education coordinating board shall deposit in the account all money received for the program. The account shall be self-sustaining and consist of funds appropriated by the legislature for the Washington's promise scholarship program, private contributions to the program, and receipts from refunds of tuition and fees.

(d) With the exception of the operating costs associated with the management of the account by the treasurer's office as authorized in chapter 43.79A RCW, the account shall be credited with all investment income earned by the account.

(e) Disbursements from the account are exempt from appropriations and the allotment provisions of chapter 43.88 RCW.

(f) Disbursements from the account shall be made only on the authorization of the higher education coordinating board.

(11) The higher education coordinating board may adopt rules to implement this section.

Sec. 4. RCW 43.79A.040 and 1998 c 268 s 1 are each amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington's promise scholarship account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the Washington international exchange scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility grant account, the self-insurance revolving fund, the sulfur dioxide abatement account, and the children's trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 5. Sections 1 through 3 of this act constitute a new chapter in Title 28B RCW."

2SSB 5598 - S AMD - 145

By Senator Finkbeiner

On page 1, line 2 of the title, after "scholarships;" strike the remainder of the title and insert "amending RCW 43.79A.040; and adding a new chapter to Title 28B RCW."