H-455                _______________________________________________

                                                   HOUSE BILL NO. 1368

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

By Representatives H. Myers, Jacobsen, Doty, Cooper, Winsley, Leonard, Wood, Peery, Fraser, Van Luven, Basich, Walk, Rector, R. Meyers, Wineberry, Dorn, Wang, O'Brien, P. King, Pruitt and Ebersole

Read first time 1/20/89 and referred to Committee on Higher Education. Referred 2/17/89 to Committee on Appropriations.

AN ACT Relating to the community scholarship foundation program; amending RCW  82.32.400; and adding new sections to chapter 28B.10 RCW.

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 qualified Washington residents is of great importance to the social and economic well-being of this state.  The legislature desires to ensure that, despite the rising costs, higher education is accessible.  The purpose of the community scholarship foundation program is to encourage local communities and organizations to develop scholarship programs for students of higher education by providing state moneys to match moneys raised at the local level.

NEW SECTION. Sec. 2.     Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 1 through 7 of this act.

          (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 sections 1 through 7 of this act.

          (3)  "Needy student" means a post high school student of an institution of higher education who demonstrates to the board the financial inability, either through the student's parents, family, or  personally, to meet the total cost of board, room, books, and tuition and incidental fees for any semester or quarter.

          (4)  "Community scholarship foundation" means a foundation or other organization which (a) has tax-exempt status under the internal revenue code, section 501(c),  as a public nonprofit corporation; (b) raises and grants funds to community residents who qualify as "resident students" under RCW 28B.15.012(2) to attend institutions of higher education; and (c)  makes grants without regard to age, sex, marital status, race, creed, color, religion, national origin, or the presence of any mental, sensory, or physical handicap.

NEW SECTION. Sec. 3.     The community scholarship foundation program is created.  Any community scholarship foundation may apply to the board for matching funds on behalf of recipients of community scholarships.  After award of a scholarship, a  community scholarship foundation shall deposit scholarship moneys in the community scholarship foundation fund. The state shall match the moneys, dollar for dollar, to the extent funds are available, and award the scholarship to the student.

NEW SECTION. Sec. 4.     The board shall administer the program.  The board shall:

          (1)  Adopt rules to implement the program;

          (2)  Publicize the program;

          (3)  Solicit funds from public and private sources;

          (4)  Establish criteria for awarding matching funds from the community scholarship foundation fund.  The criteria shall provide that the highest priority shall be given to those scholarships awarded to needy students.

NEW SECTION. Sec. 5.     No state funds shall be awarded to any student who is pursuing a degree in theology.

NEW SECTION. Sec. 6.     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. 7.     The community scholarship foundation program fund is established in the custody of the state treasurer.  All moneys appropriated for this purpose, all moneys appropriated to the board that remain unobligated at the close of each biennium, and all moneys received under section 6 of this act shall be deposited in the fund.  Moneys in the fund may be spent only for the purposes of sections 3 and 4 of this act.  Disbursements from the fund shall be on authorization of the board.  The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

        Sec. 8.  Section 33, chapter 7, Laws of 1983 as last amended by section 8, chapter 502, Laws of 1987 and RCW 82.32.400 are each amended to read as follows:

          The revenue accrual account is hereby created in the state treasury.  At the close of each fiscal biennium, the state treasurer shall transfer the cash balance in the basic account of the state general fund, other than amounts restricted for liabilities to be paid in the next fiscal biennium and amounts to be deposited in the community scholarship foundation fund under section 7 of this act, to this account.  Moneys in this account may only be spent after appropriation by statute for the purpose of decreasing the unfunded liability of a state retirement system.  All earnings of investments of balances in the revenue accrual account shall be credited to the basic account of the general fund.

NEW SECTION. Sec. 9.     Sections 1 through 7 of this act are each added to chapter 28B.10 RCW.