BILL REQ. #:  S-1038.1 

READ FIRST TIME 01/23/07.   

     AN ACT Relating to the creation of a survivors' endowed scholarship program; amending RCW 28B.76.540; reenacting and amending RCW 43.79A.040; 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 legislature intends to honor those who lost their lives in service-connected activities while engaged in military service in combat zones. The legislature further intends to assist the families of such veterans by providing an endowed scholarship for postsecondary education to the veterans' surviving children and spouses.

NEW SECTION.  Sec. 2   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Board" means the higher education coordinating board.
     (2) "Cost of attendance" means the cost associated with obtaining a postsecondary education as determined by the board, which may include, but is not limited to, tuition, room, board, and books, as appropriate for each student.
     (3) "Deceased military veteran" means a veteran or national guard member who:
     (a) Was a Washington state resident at the time he or she was deployed to a combat zone and died as a result of that deployment; or
     (b) Served on a military base in Washington state at the time he or she was deployed to a combat zone and died as a result of that deployment.
     (4) "Eligible scholarship recipient" means a person who:
     (a) Is a child of a deceased military veteran and who:
     (i) Is between the ages of sixteen and twenty-six;
     (ii) Was a resident of Washington state at the time of his or her parent's deployment to a combat zone or death resulting from that deployment;
     (iii) Has graduated from high school or has successfully completed his or her GED;
     (iv) Is not pursuing a degree in theology; and
     (v) Makes satisfactory progress towards the completion of a degree or certificate program and maintains at least a 2.00 grade point average; or
     (b) Is a surviving spouse of a deceased military veteran and who:
     (i) Was a Washington resident at the time of the spouse's deployment to a combat zone or death resulting from that deployment;
     (ii) Applies for the scholarship within ten years of the date of the death of the veteran;
     (iii) Has graduated from high school or has successfully completed his or her GED;
     (iv) Is not pursuing a degree in theology; and
     (v) Makes satisfactory progress towards the completion of a degree or certificate program and maintains at least a 2.00 grade point average.
     (5) "Postsecondary education" means:
     (a) A degree program at a public or private college or university in the state of Washington;
     (b) A certificate program at a public or private college or university or at a private vocational school licensed by the work force training and education coordinating board;
     (c) An apprenticeship approved by the Washington state apprenticeship and training council.

NEW SECTION.  Sec. 3   The survivors' endowed scholarship program is created. The purpose of the program is to help the surviving children and spouse of a deceased military veteran obtain a postsecondary education in the state of Washington. The survivors' endowed scholarship 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 survivors' students to obtain a higher education. The membership of the committee may include, but is not limited to:
     (a) One representative of the governor's office;
     (b) Two representatives of institutions of higher education, appointed by the governor;
     (c) Two surviving spouses of deceased military veterans, appointed by the governor; and
     (d) One representative each, from the Washington national guard, the Washington air national guard, and the Washington state guard, appointed by the governor;
     (2) Adopting necessary rules and guidelines;
     (3) Administering the survivors' endowed scholarship trust fund and the survivors' scholarship endowment fund;
     (4) Publicizing the program;
     (5) Accepting and depositing donations into the endowment fund created in section 7 of this act;
     (6) Requesting and accepting from the state investment board moneys earned from the trust fund and the endowment fund created in sections 6 and 7 of this act; and
     (7) Soliciting and accepting grants and donations from public and private sources for the program.

NEW SECTION.  Sec. 4   The higher education coordinating 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 representatives of the same groups as the screening committee described in section 3 of this act.

NEW SECTION.  Sec. 5   (1) The board may award scholarships to eligible scholarship recipients from the survivors' scholarship endowment fund in section 7 of this act, from funds appropriated to the board for this purpose, from any private donations, or from any other funds given to the board for the program.
     (2) The board may award scholarships to eligible scholarship recipients from moneys earned from the survivors' scholarship 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. The amount of the scholarship shall not exceed the student's demonstrated financial need. In calculating a student's need, the board shall consider the costs for tuition, fees, books, supplies, transportation, room, board, personal expenses, and child care. The 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 four years. However, the length of the scholarship shall be determined at the discretion of the board.
     (3) Grants under this chapter shall not affect eligibility for the state student financial aid program.
     (4) The board may adopt rules to implement this chapter.

NEW SECTION.  Sec. 6   (1) The survivors' endowed scholarship trust fund is created in the custody of the state treasurer.
     (2) Funds appropriated by the legislature for the survivors' endowed scholarship trust fund shall be deposited in the survivors' endowed scholarship trust fund. When conditions in section 8 of this act are met, the board shall deposit state matching moneys from the trust fund into the survivors' scholarship endowment fund.
     (3) No appropriation is required for expenditures from the trust fund.

NEW SECTION.  Sec. 7   The survivors' scholarship endowment fund is created in the custody of the state treasurer.
     (1) Moneys received from the board, private donations, state matching moneys, and funds received from any other source may be deposited into the survivors' scholarship endowment fund. Private moneys received as a gift subject to conditions may be deposited into the endowment fund if the conditions do not violate state or federal law.
     (2) The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment moneys in the survivors' scholarship endowment fund. All investment and operating costs associated with the investment of money shall be paid pursuant to RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earnings from the investment of the money shall be retained by the fund. All investments made by the state investment board shall be made with the exercise of that degree of judgment and care pursuant to RCW 43.33A.140 and the investment policies established by the state investment board. As deemed appropriate by the state investment board, moneys in the fund may be commingled for investment with other funds subject to investment by the state investment board.
     (3) The board may disburse grants to eligible scholarship recipients from the survivors' scholarship endowment fund. No appropriation is required for expenditures from the endowment fund.
     (4) When notified by court order that a condition attached to a gift of private moneys from the survivors' scholarship endowment fund has failed, the board shall release those moneys to the donors according to the terms of the conditional gift.
     (5) The principal of the survivors' scholarship endowment fund shall not be invaded. For the purposes of this section, only the first twenty-five thousand dollars deposited into the survivors' scholarship endowment fund shall be considered the principal. The release of moneys under subsection (4) of this section shall not constitute an invasion of the corpus.
     (6) The survivors' scholarship endowment fund shall be used solely for the purposes in this chapter, except when the conditional gift of private moneys in the endowment fund require a portion of the earnings on such moneys be reinvested in the endowment fund.

NEW SECTION.  Sec. 8   (1) The board may deposit twenty-five thousand dollars of state matching funds into the survivors' scholarship endowment fund when the board can match state funds with an equal amount of private cash donations.
     (2) After the initial match of twenty-five thousand dollars, state matching funds from the survivors' endowed scholarship trust fund shall be released to the survivors' scholarship endowment fund semiannually so long as there are funds available in the survivors' endowed scholarship trust fund.

Sec. 9   RCW 28B.76.540 and 2004 c 275 s 18 are each amended to read as follows:
     In addition to administrative responsibilities assigned in this chapter, the board shall administer the programs set forth in the following statutes: RCW 28A.600.100 through 28A.600.150 (Washington scholars); chapter 28B.85 RCW (degree-granting institutions); chapter 28B.92 RCW (state need grant); chapter 28B.12 RCW (work study); RCW 28B.15.543 (tuition waivers for Washington scholars); RCW 28B.15.760 through 28B.15.766 (math and science loans); RCW 28B.15.100 (reciprocity agreement); RCW 28B.15.730 through 28B.15.736 (Oregon reciprocity); RCW 28B.15.750 through 28B.15.754 (Idaho reciprocity); RCW 28B.15.756 and 28B.15.758 (British Columbia reciprocity); chapter 28B.101 RCW (educational opportunity grant); chapter 28B.102 RCW (future teachers conditional scholarship); chapter 28B.108 RCW (American Indian endowed scholarship); chapter 28B.109 RCW (Washington international exchange scholarship); chapter 28B.115 RCW (health professional conditional scholarship); chapter 28B.119 RCW (Washington promise scholarship); ((and)) chapter 28B.133 RCW (gaining independence for students with dependents); and chapter 28B.-- RCW (sections 1 through 8 of this act) (survivors' endowed scholarship).

Sec. 10   RCW 43.79A.040 and 2006 c 311 s 21 and 2006 c 120 s 2 are each reenacted and 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 Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the foster care scholarship endowment fund, the foster care endowed scholarship trust fund, the students with dependents grant account, the basic health plan self-insurance reserve account, the contract harvesting revolving account, the Washington state combined fund drive account, the commemorative works account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the future teachers conditional scholarship account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the law enforcement officers' and fire fighters' plan 2 expense fund, the local tourism promotion account, the produce railcar pool account, the regional transportation investment district account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, the survivors' scholarship endowment fund, the children's trust fund, the Washington horse racing commission Washington bred owners' bonus fund account, the Washington horse racing commission class C purse fund account, the individual development account program account, the Washington horse racing commission operating account (earnings from the Washington horse racing commission operating account must be credited to the Washington horse racing commission class C purse fund account), the life sciences discovery fund, and the reading achievement account. 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 advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs 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. 11   Sections 1 through 8 of this act constitute a new chapter in Title 28B RCW.