[atlas:bill]

AN ACT Relating to the creation of a foster care endowed scholarship program; amending RCW 43.79A.040; adding a new chapter to Title 28B RCW; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that children who grow up in the foster care system face many financial challenges. The legislature also finds that these financial challenges can discourage or prevent these children from pursuing a higher education. The legislature further finds that access to a higher education will give children who are in foster care hope for the future. Moreover, the legislature finds that financial assistance will help these children become successful, productive, contributing citizens and avoid cycles of abuse, poverty, violence, and delinquency.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Institution of higher education" includes:

(a) Public institutions of higher education, as defined in RCW 28B.10.016;

(b) Private, nonprofit educational institutions, the main campuses of which are permanently situated in the state, providing programs of education beyond the high school level, leading to a degree or certificate, and accredited by the Northwest association of schools and colleges as of the effective date of this section;

(2) "Eligible student" means a student who:

(a) Is between the ages of sixteen and twenty-three;

(b) Has been in foster care in the state of Washington for a minimum of six months since his or her fourteenth birthday;

(d) Is a resident student, as defined in RCW 28B.15.012(2);

(e) Has or will enter an institution of higher education or vocational program in Washington state within three years of high school graduation or having successfully completed his or her GED;

(f) Is not pursuing a degree in theology; and

(g) Makes satisfactory progress towards the completion of a degree or certificate program.

(3) "Cost of attendance" means the cost associated with the attendance of the institution of higher education as determined by the higher education coordinating board, including but not limited to tuition, room, board, and books.

NEW SECTION. Sec. 3. The foster care endowed scholarship program is created. The purpose of the program is to help students who were in foster care attend an institution of higher education in the state of Washington. The foster care endowed scholarship shall be administered by the higher education coordinating board. In administering the program, the higher education coordinating board's powers and duties shall include but not be limited to:

(1) Work with the department of social and health services and the superintendent of public instruction to provide information about the foster care endowed scholarship program to children in foster care in the state of Washington and to students over the age of sixteen who could be eligible for this program;

(2) Adopt necessary rules and guidelines;

(3) Publicize the program;

(4) Accept and deposit donations into the foster care scholarship endowment fund created in section 6 of this act;

(5) Request and accept from the state treasurer moneys earned from the foster care endowed scholarship trust fund created in section 5 of this act and the foster care scholarship endowment fund created in section 6 of this act;

(6) Solicit and accept grants and donations from public and private sources for the program; and

(7) Contract with a private agency to perform outreach to the potentially eligible students.

NEW SECTION. Sec. 4. (1) The higher education coordinating board may award scholarships to eligible students from moneys earned from the foster care scholarship endowment fund in section 6 of this act, from funds appropriated to the board for this purpose, from any private donations, or from any other funds given to the board for the program.

(2) The amount of the award shall be the differential between the cost of attendance at the chosen institution of higher education and aggregate of the eligible student's Pell grant and state need grant.

(3) The eligible student may receive a maximum of eight semesters or twelve quarters of grants for higher education in the state of Washington.

(4) Grants under this chapter shall not affect eligibility for the state student financial aid program.

(5) An eligible student may transfer among institutions of higher education in the state of Washington.

(6) Grants may not exceed the cost of attendance at a state public research institution of higher education.

NEW SECTION. Sec. 5. (1) The foster care endowed scholarship trust fund is established in the custody of the state treasurer. The trust fund shall be administered by the state treasurer.

(2) Funds appropriated by the legislature for the foster care endowed scholarship trust fund shall be deposited in the foster care endowed scholarship trust fund. At the request of the higher education coordinating board, and when conditions in section 7 of this act are met, the treasurer shall deposit state matching moneys in the trust fund into the foster care scholarship endowment fund.

(3) No appropriation is required for expenditures from the trust fund.

NEW SECTION. Sec. 6. The foster care scholarship endowment fund is established in the custody of the state treasurer. The endowment fund shall be administered by the state treasurer.

(1) Moneys received from the higher education coordinating board, private donations, state matching moneys, and funds received from any other source may be deposited into the foster care scholarship endowment fund. Private moneys received as a gift subject to conditions may be deposited into the endowment fund.

(2) At the request of the higher education coordinating board, the state treasurer shall release earnings from the foster care scholarship endowment fund to the board for scholarships. No appropriation is required for expenditures from the endowment fund.

(3) When notified by the higher education coordinating board or by court order that a condition attached to a gift of private moneys from the foster care scholarship endowment fund has failed, the treasurer shall release those moneys to the donors according to the terms of the conditional gift.

(4) The principal of the foster care scholarship endowment fund shall not be invaded. The release of moneys under subsection (3) of this section shall not constitute an invasion of the corpus.

(5) The earnings on the foster care scholarship endowment fund shall be used solely for the purposes in this chapter, except when the conditional gift of private moneys in the endowment fund require a portion of the earnings on such moneys be reinvested in the endowment fund.

NEW SECTION. Sec. 7. The higher education coordinating board may request that the treasurer deposit fifty thousand dollars of state matching funds into the foster care scholarship endowment fund when the board can match state funds with an equal amount of private cash donations, including conditional gifts.

Sec. 8. RCW 43.79A.040 and 2000 c 79 s 45 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 advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, 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. 9. Sections 1 through 7 of this act constitute a new chapter in Title 28B RCW.

NEW SECTION. Sec. 10. The sum of one hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the higher education coordinating board for the fiscal year ending June 30, 2002, to carry out the purposes of this act.