[atlas:bill]

AN ACT Relating to the Washington HOPE scholarship pilot program; amending RCW 67.70.240; adding a new section to chapter 28B.80 RCW; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. A new section is added to chapter 28B.80 RCW to read as follows:

(1) The Washington HOPE scholarship pilot program is established.

(2) The higher education coordinating board shall administer the program under this section.

(3) The scholarship will be funded by ten percent of the lottery proceeds for each of the years of the program. The HOPE scholarship account is created in the custody of the state treasurer. All receipts from ten percent of lottery proceeds and any private contributions to the program must be deposited into the account. Expenditures from the account may be used only for HOPE scholarships. Only the executive director of the higher education coordinating board or the executive director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

(4) Awards shall be made in May of each year by the higher education coordinating board. The individual scholarships shall not exceed, on a yearly basis, five thousand dollars. Each one-year scholarship shall be for up to five thousand dollars. The number of awards shall be determined by available funds in the HOPE scholarship account.

(5) To be eligible for a scholarship, the student must:

(a) Graduate with a 3.0 grade point average or better from a public or private high school in Washington state;

(b) Have attended high school in Washington state for at least one year before high school graduation;

(c) Be enrolled in a degree-granting program in an institution of higher education as defined in RCW 28B.10.016 or an independent college or university within one year of receiving the scholarship award. A student is eligible for the award for a maximum of twelve quarters or eight semesters of scholarships for undergraduate study and must complete use of the scholarship within five years of graduating from high school; and

(d) Maintain a 3.0 grade point average and be enrolled for a full academic load in order to continue receiving the scholarship award.

(6) Scholarships shall be available for the 2000-01, 2001-02, 2002-03, and 2003-04 academic years.

(7) The office of the superintendent of public instruction shall provide the names and addresses for all graduating seniors that meet the eligibility requirements in subsection (5)(a) of this section. All student data shall be considered confidential and used solely for the purpose of providing scholarships to eligible students.

(8) Scholarship awards under this section are nontransferable to other individuals. Scholarship recipients may transfer among in-state public colleges and universities and continue to receive the scholarship. 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.

(9) The Washington HOPE scholarship is not intended to supplant any federal scholarship or tax program related to postsecondary education.

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

(11) The higher education coordinating board shall report by December 1, 2004, to appropriate committees of the legislature on the implementation and effectiveness of the HOPE scholarship pilot program.

(12) This section expires June 30, 2004.

Sec. 2. RCW 67.70.240 and 1997 c 220 s 206 (Referendum Bill No. 48) are each amended to read as follows:

The moneys in the state lottery account shall be used only:

(1) For the payment of prizes to the holders of winning lottery tickets or shares;

(2) For purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;

(3) For purposes of making deposits into the state's general fund;

(4) For distribution to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs. Three million dollars shall be distributed under this subsection during calendar year 1996. During subsequent years, such distributions shall equal the prior year's distributions increased by four percent. Distributions under this subsection shall cease when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax under RCW 82.14.0485 is first imposed;

(5) For distribution to the stadium and exhibition center account, created in RCW 43.99N.060. Subject to the conditions of RCW 43.99N.070, six million dollars shall be distributed under this subsection during the calendar year 1998. During subsequent years, such distribution shall equal the prior year's distributions increased by four percent. No distribution may be made under this subsection after December 31, 1999, unless the conditions for issuance of the bonds under RCW 43.99N.020(2) are met. Distributions under this subsection shall cease when the bonds are retired, but not later than December 31, 2020;

(6) For the purchase and promotion of lottery games and game-related services; ((~~and~~))

(7) For the payment of agent compensation; and

(8) Until June 30, 2004, for HOPE scholarships under section 1 of this act.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

Until June 30, 2004, ten percent of lottery proceeds shall be used for HOPE scholarships under section 1 of this act.