H-2707

AN ACT Relating to the Hispanic American endowed scholarship program; amending RCW 43.79A.040; adding a new chapter to Title 28B RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature recognizes the benefit to our state and nation of providing equal educational opportunities for all races and nationalities. The legislature finds that Hispanic American students are underrepresented in Washington's colleges and universities. The legislature also finds that past discriminatory practices have resulted in this underrepresentation. Creating an endowed scholarship program for students to work with the Hispanic community will help rectify past discrimination and provide a means and an incentive for Hispanic American students to pursue a higher education. The state will benefit from contributions made by Hispanic Americans who participate in a program of higher education.

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

(1) "Institution of higher education" or "institution" means a college or university in the state of Washington which is accredited by an accrediting association recognized as such by rule of the higher education coordinating board.

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

(3) "Eligible student" or "student" means a student who is familiar with the unique educational and cultural needs of the Hispanic community as defined by the board in consultation with the advisory committee described in section 4 of this act, who is a financially needy student, as defined by the board, who is a resident student, as defined by RCW 28B.15.012(2), who is a full-time student at an institution of higher education, and who promises to use his or her education to benefit other Hispanic Americans.

NEW SECTION. Sec. 3. The Hispanic American endowed scholarship program is created. The program shall be administered by the board. In administering the program, the board's powers and duties shall include but not be limited to:

(1) Selecting students to receive scholarships, with the assistance of a screening committee composed of persons involved in helping Hispanic American students obtain a higher education;

(2) Adopting necessary rules and guidelines;

(3) Publicizing the program;

(4) Accepting and depositing donations into the endowment fund created in section 7 of this act;

(5) Requesting and accepting from the state treasurer moneys earned from the trust fund and the endowment fund created in sections 6 and 7 of this act;

(6) Soliciting and accepting grants and donations from public and private sources for the program; and

(7) Naming scholarships in honor of Hispanic Americans who have acted as role models.

NEW SECTION. Sec. 4. The board shall establish an advisory committee to assist in program design and to develop criteria for the screening and selection of scholarship recipients. The committee shall be composed of persons involved in helping Hispanic American students obtain higher education. The criteria shall include a priority for upper‑division or graduate students. The criteria may include a priority for students who are majoring in program areas in which expertise is needed by the state's Hispanic Americans.

NEW SECTION. Sec. 5. The board may award scholarships to eligible students from moneys earned from the 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.

NEW SECTION. Sec. 6. The Hispanic American endowed scholarship trust fund is established. The trust fund shall be administered by the state treasurer. Funds appropriated by the legislature for the trust fund shall be deposited into the fund. All moneys deposited in the fund shall be invested by the state treasurer. Notwithstanding RCW 43.79A.040, all earnings of investments of balances of the trust fund shall be credited to the fund. At the request of the board, and when conditions set forth in section 8 of this act are met, the treasurer shall transfer state matching moneys and any earned interest from the trust fund to the Hispanic American scholarship endowment fund. No appropriation is required for expenditures from the trust fund.

NEW SECTION. Sec. 7. The Hispanic American scholarship endowment fund is established. The endowment fund shall be administered by the state treasurer. Moneys received from the board, private donations, state matching moneys and any earned interest, and funds received from any other source may be deposited into the endowment fund. All moneys deposited in the endowment fund shall be invested by the state treasurer. Notwithstanding RCW 43.79A.040, all earnings of investments of balances of the endowment fund shall be credited to the endowment fund. At the request of the board, the treasurer shall release earnings from the endowment fund to the board for scholarships. No appropriation is required for expenditures from the endowment fund.

The principal of the endowment fund shall not be invaded. The earnings on the fund shall be used solely for the purposes set forth in section 5 of this act.

NEW SECTION. Sec. 8. The board may request that the treasurer deposit fifty thousand dollars of state matching funds and any earned interest into the Hispanic American scholarship endowment fund when the board can match the state funds with an equal amount of private cash donations. Private cash donations means moneys from nonstate sources that include, but are not limited to, federal moneys, and assessments by commodity commissions authorized to conduct research activities, including but not limited to research studies authorized under RCW 15.66.030 and 15.65.040.

Sec. 9. RCW 43.79A.040 and 1996 c 253 s 409 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 agricultural local fund, the American Indian scholarship endowment fund, the Hispanic American scholarship trust fund, the Hispanic American scholarship endowment fund, the Washington international exchange scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, and the self-insurance revolving 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 federal narcotics asset forfeitures account, the high occupancy vehicle account, and the local rail service assistance 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. 10. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 11. Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.