AN ACT Relating to the community scholarship foundation program; adding a new chapter to Title 28B RCW; creating a new section; making an appropriation; and providing an expiration date.

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

NEW SECTION. Sec. 1. The legislature finds that making higher education opportunities available to Washington residents is of great importance to the social and economic well-being of this state. The legislature further finds that some potential students, because of family and social circumstances, economic distress of their community, and other reasons, do not pursue a higher education. It is in the interest of the state to support the development of scholarship programs which help these citizens attend a college, university, or vocational-technical institute in the state. The purpose of this chapter is to create a community scholarship foundation program as a pilot project, with the intent of encouraging local communities to develop scholarship programs which assist their residents in obtaining a higher education.

NEW SECTION. Sec. 2. (1) The goal of the community scholarship foundation program is the development throughout the state of community organizations which raise scholarship funds for local residents.

(2) In making awards under section 4 of this act, the board shall take into consideration, but not be limited to, the following additional goals:

(a) Increasing higher education participation for residents of economically distressed areas and other areas of the state with low participation rates, and enhancing community support for residents of these areas who desire a higher education;

(b) Creating scholarship opportunities for students who do not meet the criteria for traditional scholarships; and

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the higher education coordinating board.

(2) "Institution of higher education" or "institution" means a degree-granting college or university, or public vocational-technical institute, in the state of Washington which is a member institution of an accrediting association recognized by rule of the board for the purposes of this chapter.

(3) "Foundation" means a community scholarship foundation found to be eligible for state funds under section 5 of this act.

NEW SECTION. Sec. 4. (1) The community scholarship foundation program is established. Subject to the availability of funds, the board shall award a foundation two thousand dollars upon demonstration to the board that the foundation has raised two thousand dollars for scholarships or the creation of an endowment for scholarships.

(2) Awards made under this section shall be used for scholarships to community residents who qualify as "resident students" under RCW 28B.15.012(2) to attend institutions of higher education.

NEW SECTION. Sec. 5. To qualify as a community scholarship foundation eligible for state moneys under this chapter, an organization must meet the following criteria:

(1) Have tax-exempt status under section 501(c) of the internal revenue code, be a publicly supported organization under section 170(b)(1)(A)(vi) of the internal revenue code, and not be a private foundation under section 509(a) of the internal revenue code;

(2) Be organized after the effective date of this act for the primary purpose of raising and awarding scholarships to community residents who qualify as "resident students" under RCW 28B.15.012(2) to attend institutions of higher education;

(3) Solicit broad-based community support in its fundraising activities and be representative of the community in its organization;

(4) Not be duplicative of other foundations;

(5) Be organized and operated by volunteers;

(6) Grant scholarships without regard to age, sex, marital status, race, creed, color, religion, national origin, or the presence of any mental, sensory, or physical handicap; and

(7) Meet other criteria established by the board to meet the goals of the program specified in section 2 of this act.

NEW SECTION. Sec. 6. The board shall administer the program. The board shall adopt rules as appropriate to implement the program and shall solicit assistance from public and private sources to publicize the program. The board may create an advisory committee to assist in making the determinations under this chapter.

NEW SECTION. Sec. 7. The community scholarship foundation program account is established in the custody of the state treasurer. All moneys appropriated for the community scholarship foundation program and all moneys otherwise received for this purpose shall be deposited in the account. Moneys in the account may only be spent for awards and administration of the community scholarship foundation program, except that moneys appropriated under section 9 of this act may be used only for awards under section 4 of this act. Disbursements from the account shall be on authorization of the board. The account is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursement.

NEW SECTION. Sec. 8. The board may solicit and receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the program and may expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.

NEW SECTION. Sec. 9. The sum of sixty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the community scholarship foundation program account for the biennium ending June 30, 1991, for the purpose of awards under section 4 of this act.

NEW SECTION. Sec. 10. By December 1, 1991, the board shall submit a report to the governor and the house and senate higher education committees. The report shall examine the results and effectiveness of the community scholarship foundation program, and recommend whether the program should be continued and any modifications to the program.

NEW SECTION. Sec. 11. Sections 1 through 7 of this act shall expire June 30, 1992, unless extended by law for an additional fixed period of time.

NEW SECTION. Sec. 12. Sections 1 through 8 of this act shall constitute a new chapter in Title 28B RCW.