BILL REQ. #:  S-0766.1 

Read first time 01/27/09.   Referred to Committee on Higher Education & Workforce Development.

     AN ACT Relating to creating the Washington investment in student excellence scholarship program; amending RCW 67.70.240; and adding a new chapter to Title 28B RCW.

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

NEW SECTION.  Sec. 1   (1) The higher education coordinating board shall design the Washington investment in student excellence scholarship program in accordance with this chapter. The board shall:
     (a) Develop and implement a student application, selection, and notification process for scholarships;
     (b) Track scholarship recipients to ensure continued eligibility and determine student compliance for awarding scholarships; and
     (c) Distribute scholarship funds to institutions of higher education on behalf of scholarship recipients identified by the board as long as recipients remain eligible.
     (2) The board shall adopt rules to implement this chapter.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Continuing student" means a student who has attempted more than three semester hours, or the quarter equivalent, at a public or private institution of higher education after graduating from a public high school, approved private high school under chapter 28A.195 RCW, or who received home-based instruction under chapter 28A.200 RCW.
     (2) "Eligible student" means a full or part-time student seeking his or her first associate, baccalaureate, or professional degree at a public or private institution of higher education who:
     (a) Is an entering student who graduated with at least a 3.0 grade point average from a public high school or approved private high school under chapter 28A.195 RCW, who received home-based instruction under chapter 28A.200 RCW, or is a continuing student who maintains a cumulative 3.0 grade point average at the public or private institution of higher education. A student who received home-based instruction must equal or exceed a cumulative scholastic assessment test I score of twelve hundred on his or her first attempt or must equal or exceed a composite American college test score of twenty-seven on his or her first attempt;
     (b) Is a resident student as defined in RCW 28B.15.012(2);
     (c) Has no felony convictions or adjudications; and
     (d) Continues to make satisfactory academic progress at the public or private institution of higher education.
     (3) "Entering student" means a student who has never attended a public or private institution of higher education.
     (4) "Grade point average" means the numbered grade average calculated using a 4.0 point scale.
     (5) "Public or private institution of higher education" means an institution of higher education as defined in RCW 28B.10.016 and any other university, college, school, or institute in the state of Washington offering instruction beyond the high school level that is a member of an accrediting association recognized by rule of the higher education coordinating board.

NEW SECTION.  Sec. 3   (1) The higher education coordinating board, the workforce training and education coordinating board, and the economic development commission shall identify high employer demand programs of study. Within available funds, eligible students enrolling in high employer demand programs of study may be eligible to receive a scholarship of up to five thousand dollars per year for full-time attendance at a public or private institution of higher education. Part-time students shall receive a prorated scholarship amount.
     (2)(a) Within available funds, an eligible student shall receive a scholarship of up to two thousand five hundred dollars per year for full-time attendance at a public or private institution of higher education. Part-time students shall receive a prorated scholarship amount.
     (b) A student who was an eligible student, but who did not maintain a 3.0 grade point average at the public or private institution of higher education, may requalify for a Washington investment in student excellence scholarship if the student regains a 3.0 cumulative grade point average.

NEW SECTION.  Sec. 4   The Washington investment in student excellence scholarship account is created in the custody of the state treasurer. All receipts received from the state lottery account for the Washington investment in student excellence scholarship program must be deposited in the account. Expenditures from the account may be used only for the Washington investment in student excellence scholarship program. Only the director of the higher education coordinating board or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 5   RCW 67.70.240 and 2001 c 3 s 4 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 education construction fund and student achievement fund created in RCW 43.135.045 and the Washington investment in student excellence scholarship account created in section 4 of this act. ((For the transition period from July 1, 2001, until and including June 30, 2002, fifty percent of the moneys not otherwise obligated under this section shall be placed in the student achievement fund and fifty percent of these moneys shall be placed in the education construction fund. On and after July 1, 2002, until June 30, 2004, seventy-five percent of these moneys shall be placed in the student achievement fund and twenty-five percent shall be placed in the education construction fund. On and after July 1, 2004, all deposits not otherwise obligated under this section shall be placed in the education construction fund.)) On and after July 1, 2009, the moneys shall be placed in the Washington college bound scholarship account in an amount to fully fund Washington college bound scholarships and the remainder shall be placed in the Washington investment in student excellence scholarship account. Moneys in the state lottery account deposited in the ((education construction fund and the student achievement fund)) Washington college bound scholarship account and the Washington investment in student excellence scholarship account are included in "general state revenues" under RCW 39.42.070;
     (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.
     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.

NEW SECTION.  Sec. 6   Sections 1 through 4 of this act constitute a new chapter in Title 28B RCW.