CERTIFICATION OF ENROLLMENT

SECOND SUBSTITUTE HOUSE BILL 1050

Chapter 215, Laws of 2005

(partial veto)

59th Legislature
2005 Regular Session



FOSTER CARE SCHOLARSHIPS



EFFECTIVE DATE: 7/24/05

Passed by the House March 3, 2005
  Yeas 96   Nays 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate April 13, 2005
  Yeas 44   Nays 0


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SECOND SUBSTITUTE HOUSE BILL 1050 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved April 28, 2005, with the exception of section 9, which is vetoed.







CHRISTINE GREGOIRE
________________________________________    
Governor of the State of Washington
 
FILED
April 28, 2005 - 3:31 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SECOND SUBSTITUTE HOUSE BILL 1050
_____________________________________________

Passed Legislature - 2005 Regular Session
State of Washington59th Legislature2005 Regular Session

By House Committee on Appropriations (originally sponsored by Representatives Kenney, Hinkle, Kagi, Dunn, Quall, Clements, Morrell, McIntire, Schual-Berke, Haigh, Simpson, Linville, Santos and Chase)

READ FIRST TIME 02/23/05.   



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

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" means a college or university in the state of Washington that is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.
     (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;
     (c) Is a financially needy student, as defined in RCW 28B.92.030;
     (d) Is a resident student, as defined in RCW 28B.15.012(2);
     (e) Has entered or will enter an institution of higher education 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   (1) 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 program shall be administered by the higher education coordinating board.
     (2) In administering the program, the higher education coordinating board's powers and duties shall include but not be limited to:
     (a) Adopting necessary rules and guidelines;
     (b) Administering the foster care endowed scholarship trust fund and the foster care scholarship endowment fund; and
     (c) Establishing and assisting the foster care endowed scholarship advisory board in its duties as described in section 5 of this act.
     (3) In administering the program, the higher education coordinating board's powers and duties may include but not be limited to:
     (a) Working 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;
     (b) Publicizing the program; and
     (c) Contracting 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 the foster care scholarship endowment fund in section 7 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 board may award scholarships to eligible students from moneys earned from the foster care scholarship endowment fund created in section 7 of this act, or from funds appropriated to the board for this purpose, or from any private donations, or from any other funds given to the board for this program. For an undergraduate student, the amount of the scholarship shall not exceed the student's demonstrated financial need. For a graduate student, the amount of the scholarship shall not exceed the student's demonstrated need; or the stipend of a teaching assistant, including tuition, at the University of Washington; whichever is higher. In calculating a student's need, the board shall consider the student's costs for tuition, fees, books, supplies, transportation, room, board, personal expenses, and child care. The student's scholarship awarded under this chapter shall not exceed the amount received by a student attending a state research university. A student is eligible to receive a scholarship for a maximum of five years. However, the length of the scholarship shall be determined at the discretion of the board.
     (3) Grants under this chapter shall not affect eligibility for the state student financial aid program.

NEW SECTION.  Sec. 5   (1) The foster care endowed scholarship advisory board is created.
     (2) The advisory board shall be composed of not more than seven members appointed by the higher education coordinating board. The advisory board should include representatives from the higher education coordinating board, the office of the superintendent of public instruction, the foster parent community, and community organizations serving the foster children and former foster children community. The advisory board membership shall be reflective of the cultural diversity of the state.
     (3) The advisory board:
     (a) Shall assist the higher education coordinating board in publicizing the foster care endowed scholarship program;
     (b) Shall solicit grants and donations from public and private sources for the program;
     (c) Shall assist the higher education coordinating board in the program development and the application screening process; and
     (d) May assist in performing outreach to the targeted students.

NEW SECTION.  Sec. 6   (1) The foster care endowed scholarship trust fund is created in the custody of 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. When conditions in section 8 of this act are met, the higher education coordinating board shall deposit state matching moneys from the trust fund into the foster care scholarship endowment fund.
     (3) No appropriation is required for expenditures from the trust fund.

NEW SECTION.  Sec. 7   The foster care scholarship endowment fund is created in the custody of 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 if the conditions do not violate state or federal law.
     (2) The higher education coordinating board may disburse grants to eligible students from the foster care scholarship endowment fund. No appropriation is required for expenditures from the endowment fund.
     (3) When notified by court order that a condition attached to a gift of private moneys from the foster care scholarship endowment fund has failed, the higher education coordinating board 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. For the purposes of this section, only the first twenty-five thousand dollars deposited into the foster care scholarship endowment fund shall be considered the principal. The release of moneys under subsection (3) of this section shall not constitute an invasion of the corpus.
     (5) 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. 8   (1) The higher education coordinating board may deposit twenty-five 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.
     (2) After the initial match of twenty-five thousand dollars, state matching funds from the foster care endowed scholarship trust fund shall be released to the foster care scholarship endowment fund semiannually so long as there are funds available in the foster care endowed scholarship trust fund.

     *NEW SECTION.  Sec. 9   The administrative staff for the foster care endowed scholarship program shall not exceed one-quarter full-time equivalent.
     *Sec. 9 was vetoed. See message at end of chapter.

Sec. 10   RCW 43.79A.040 and 2004 c 246 s 8 and 2004 c 58 s 10 are each reenacted and 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 promise scholarship account, the college savings program account, 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 foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, and the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account). 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 city and county advance right-of-way revolving fund, 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. 11   Sections 1 through 9 of this act constitute a new chapter in Title 28B RCW.


         Passed by the House March 3, 2005.
         Passed by the Senate April 13, 2005.
         Approved by the Governor April 28, 2005, with the exception of certain items that were vetoed.
         Filed in Office of Secretary of State April 28, 2005.

     Note: Governor's explanation of partial veto is as follows:

"I am returning, without my approval as to Section 9, Second Substitute House Bill 1050 entitled:

     "AN ACT Relating to the creation of a foster care endowed scholarship program"

This bill and the Board creates scholarships for foster youth. I am vetoing Section 9, however, as it would limit the administrative support for the foster youth scholarship program to one-quarter full-time equivalent employee (FTE). Any money allocated for the foster youth scholarship program should go directly to that purpose. But FTE targets or limitations are properly addressed through the budget process.

For these reasons, I have vetoed Section 9 of Second Substitute House Bill 1050.

With the exception of sections Section 9, Second Substitute House Bill 1050 is approved."