H-3995.2  _______________________________________________

                          HOUSE BILL 2914

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Kenney, Fromhold, Cox, Morell, Haigh and Wood

Read first time 02/06/2002.  Referred to Committee on Appropriations.

Creating the state financial aid account.

    AN ACT Relating to creating a financial aid account to ensure that all statewide student financial aid is made available; adding a new section to chapter 28B.10 RCW; and providing an effective date.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 28B.10 RCW to read as follows:

    The state financial aid account is created in the custody of the state treasurer.  The primary purpose of the account is to create a reserve to ensure that all appropriations designated for financial aid through statewide student financial aid programs are made available to deserving students and to prevent unexpended financial aid funds at the close of a fiscal year.  Expenditures from the account may be used only for financial aid to students eligible for the state need grant program, the state work study program, the Washington scholars program, or the Washington award for vocational excellence program.  Only the executive director of the higher education coordinating board or the executive 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.

    The higher education coordinating board shall deposit five percent of the state general fund appropriation for the state need grant program, the state work study program, the Washington scholars program, and the Washington award for vocational excellence program into the state financial aid account.  The amount of funds deposited into the account each fiscal year must be expended in the current or subsequent fiscal year.  The board shall set grant amounts and eligibility criteria for the programs as if the funds were to be spent in the current year.

NEW SECTION. Sec. 2.  This act takes effect July 1, 2002.

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