BP BHEAD INT S [atlas:bill]

AN ACT Relating to the community scholarship partnership program; 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 community scholarship partnership program is established. The board shall administer the program. The purpose of the program is to encourage the development of local organizations dedicated to help students achieve a higher education.

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

(1) "Affiliate scholarship foundation" is an affiliate of the qualified organization that receives funding from the qualified organization to provide scholarships under this chapter.

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

(3) "Local scholarship foundation" means an organization that:

(a) Is either a nonprofit organization under section 501(c)(3) of the internal revenue code, 26 U.S.C. Sec. 501(c)(3), and is exempt from taxation under section 501(a) of the internal revenue code or is affiliated with a state, regional, or national organization that meets this criteria;

(b) Is formed to provide scholarships for students to attend institutions of higher education. The foundation may provide academic support for residents of the community served by the foundation;

(d) Represents the community where it is located including volunteers representative of the community;

(e) Has a board of directors that includes both leaders from community organizations and residents of the community;

(f) Awards scholarships to students to attend institutions of higher education without regard to a recipient's age, sex, marital status, race, creed, color, religion, national origin, or disability; and

(g) Meets other criteria established by the board.

(4) "Qualified local foundation" means a local scholarship foundation designated to receive grants under this chapter.

(5) "Qualified organization" means the state-wide community scholarship organization that is designated to receive a grant under this chapter.

(6) "State-wide community scholarship organization" means an organization that:

(a) Operates in fifty or more communities throughout the state;

(b) Helps create and support affiliate scholarship foundations and provides training and other support programs to affiliate scholarship foundations;

(c) Is a nonprofit organization under section 501(c)(3) of the internal revenue code, 26 U.S.C. Sec. 501(c)(3), and is exempt from taxation under section 501(a) of the internal revenue code;

(d) Is a publicly supported organization under section 170(b)(1)(a)(vi) of the internal revenue code;

(e) Certifies each affiliate local scholarship foundation as meeting the criteria for participation under this chapter;

(f) Has a program for and experience in cooperating with secondary and higher education institutions in carrying out the organization's scholarship and academic support activities; and

(g) Meets other criteria established by the board.

NEW SECTION. Sec. 3. The board shall:

(1) Solicit and analyze competitive proposals from state-wide community organizations seeking to be designated as the qualified organization and select one state-wide community organization as the qualified organization. Only one state-wide community organization may be designated as a qualified organization at a time, however the board may adopt rules regarding changes in designation;

(2) Beginning July 1, 2000, distribute funds, to the extent funds are available, to the qualified organization. The board may distribute funds in whole or in part whenever the qualified organization has raised a portion equal to one hundred thousand dollars or more of the required qualifying match;

(3) Designate local scholarship foundations that meet the criteria under this chapter as qualified foundations;

(4) Beginning July 1, 2000, make grants to qualified local foundations from money appropriated to the board for these grants; and

(5) Adopt rules as necessary to carry out the purposes of this chapter.

NEW SECTION. Sec. 4. The qualified organization or a qualified local foundation receiving a grant under this chapter shall:

(1) Match the grant on a dollar-for-dollar basis with money raised from private sources within the state;

(2) Use the funds to either:

(a) Establish a permanent endowment fund and place both the private funds and the funds from the state grant in the fund and use the interest and income received from the investment of the permanent endowment fund under this section to support the purposes and general operations of the qualified organization or a qualified local foundation; or

(b) Use the fund to provide scholarships.

NEW SECTION. Sec. 5. The qualified organization or a qualified local foundation receiving funds under this chapter to be placed in a permanent endowment fund shall return the money received under this chapter to the state general fund if it:

(1) Loses its status as a public charitable organization;

(2) Is liquidated; or

(3) Violates a provision of this chapter.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act constitute a new chapter in Title 28B RCW.