Title of Regulation: 8VAC40-140. Virginia Vocational Incentive Scholarship Program for Shipyard Workers Regulations (amending 8VAC40-140-10, 8VAC40-140-40, 8VAC40-140-60 through 8VAC40-140-90).

Statutory Authority: § 23.1-2912 of the Code of Virginia.

Effective Date: June 15, 2018.

Agency Contact: Beverly Covington, Senior Associate for Academic and Legislative Affairs, State Council of Higher Education for Virginia, 101 North 14th Street, 9th Floor, Monroe Building, Richmond, VA 23219, telephone (804) 371-0571, or email beverlycovington@schev.edu.

Small Business Impact Review Report of Findings:  This final regulatory action serves as the report of the findings of the regulatory review pursuant to § 2.2-4007.1 of the Code of Virginia.

Summary:

The amendments clarify administration of the Virginia Vocational Incentive Scholarship Program for Shipyard Workers by Tidewater Community College by (i) updating terminology, (ii) incorporating changes to the authorizing law, and (iii) shifting responsibility where appropriate from the council to the college.

8VAC40-140-10. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Academic year" means the 12-month enrollment period, during which the college holds classes, comprised of the college's fall and spring semesters and summer session.

"Apprenticeship program" means a three-year program combining educational instruction and on-the-job training that is established for the purpose of enhancing the education and skills of shipyard workers and that is registered with the Virginia Department of Labor and Industry.

"Award year" means the period of time in which a scholar receives a scholarship during the academic year. Receipt of the scholarship during at least two of the three periods constitutes one full award year while enrollment in one period constitutes one half of an award year.

"College" means Tidewater Community College.

"Council" means the State Council of Higher Education for Virginia or its designated staff.

"Domiciliary resident of Virginia" means a student determined by the college to meet the domicile eligibility requirements specified by § 23.1-502 or 23.1-505 of the Code of Virginia and augmented by the Domicile Guidelines.

"Eligible course of study" means an Associate in Applied Science degree program or an apprenticeship program registered with the Virginia Department of Labor and Industry.

"Program" means the Virginia Vocational Incentive Scholarship Program for Shipyard Workers.

"Scholar" means a recipient of program funds from the Virginia Vocational Incentive Scholarship Program for Shipyard Workers.

"Scholarship" means a grant from state funds appropriated for the Virginia Vocational Incentive Scholarship Program for Shipyard Workers.

"Shipyard worker" means any person employed full time on a salaried or wage basis whose tenure is not restricted as to temporary or provisional appointment at a ship manufacturing or ship repair company located in the Commonwealth of Virginia.

8VAC40-140-40. Eligibility criteria for an initial scholarship.

In order to receive a scholarship, the student must be:

1. A domiciliary resident of Virginia as defined in § 23.1-502 of the Code of Virginia and determined by the college,;

2. Employed full time as a shipyard worker,; and

3. Enrolled full time or part time in an eligible course of study.

8VAC40-140-60. Scholarship conditions.

To receive initial and renewal scholarships, the student must enter into an agreement with the council through the college under which he agrees to:

1. Continue full-time employment as a shipyard worker until his successful completion of the eligible course of study;

2. Continue pursuing an eligible course of study;

3. Upon successful completion of the eligible course of study, work continuously in Virginia as a shipyard worker for the same number of years that he was the beneficiary of such scholarship at the rate of one calendar year for each award year received;

4. Provide evidence of compliance with subdivision 3 of this section in the form of a statement from the human resources director of the shipyard in which the scholar is working, certifying that the scholar is employed full time as a shipyard worker; and

5. Repay the total amount of funds received, or the appropriate portion thereof, and any accrued interest, if he the scholar fails to honor the requirements specified in subdivisions 1, 2, and 3 of this section.

8VAC40-140-70. Scholarship amount.

A. In no case may a student receive a scholarship under the program that exceeds the cost of full tuition and required fees relating to the eligible course of study.

B. If a scholar ceases full-time employment as a shipyard worker or withdraws from all courses during a term, the tuition refund policy in effect at the college will determine the portion of the award amount that the amount of the scholarship must be reclaimed by the college.

8VAC40-140-80. Noncompliance with scholarship agreement.

A. A scholar found to be in noncompliance with the scholarship agreement entered shall:

1. Repay the amount of scholarship funds received, prorated according to the fraction of the work obligation not completed, as determined by the council college;

2. Pay a simple, per annum interest charge of 5.0% on the outstanding principal as determined by the council college; and

3. Pay all reasonable collection costs as determined by the council college.

B. A scholar required to repay his the scholarship shall:

1. Enter repayment status on the first day of the first calendar month after:

a. The council college has determined that the scholar is no longer enrolled in an eligible course of study, but not before six months has elapsed since the scholar was enrolled in such course of study;

b. The date the scholar informs the council that he college that the scholar does not plan to fulfill the work obligation; or

c. The latest date on which the scholar must have begun working in order to have completed the work obligation within 10 years after completing the postsecondary education for which the scholarship was awarded, as determined by the council college.

2. Make monthly payments to the council college that cover principal, interest, and any collection costs according to a schedule established by the council college that calls for minimum payments of $100 per month and to complete repayment within 10 years after the scholar enters repayment status.

C. The interest charge specified in subdivision A 2 of this section accrues from:

1. The date of the initial scholarship payment if the council college has determined that the scholar is no longer enrolled in an eligible course of study or completed an eligible course of study but never became employed as a shipyard worker; or

2. The day after the last day of the scholarship period for which the work obligation has been fulfilled is required.

D. The council college shall capitalize any accrued interest at the time it establishes a scholar's repayment schedule.

E. The council college may approve less than $100 minimum monthly payments or forgive partial interest charges due to extenuating circumstances.

F. The council college may approve a reduction in interest charges for scholars making consistent on-time monthly payments that meet or exceed the minimum required amount.

G. A scholar is not considered in violation of the repayment schedule established by the council college during the time he the scholar is:

1. Serving on active duty as a member of the armed services of the United States or serving as a member of VISTA or the Peace Corps for a period not in excess of three years;

2. Accompanying a spouse who is serving on active duty as a member of the armed services of the United States or serving as a member of VISTA or the Peace Corps for a period not in excess of three years;

3. Experiencing health conditions that impede his the scholar's ability to perform requisite service in a shipyard setting for a period not to exceed three years;

4. Unable to secure employment by reason of the care required by a disabled child, spouse, or parent for a period not in excess of 12 months; or

5. Unable to satisfy the terms of the repayment schedule established by the council and is also seeking and unable to find full-time employment as a shipyard worker in Virginia for a single period not to exceed 27 months.

H. To qualify for any of the exceptions in subsection G of this section, a scholar must notify the council college of his a claim to the exception and provide supporting documentation as required by the council college.

I. During the time a scholar qualifies for any of the exceptions specified in subsection G of this section, he the scholar need not make the scholarship repayments and interest does not accrue.

J. The council college shall extend the 10-year scholarship repayment period by a period equal to the length of time a scholar meets any of the exceptions in subsection G of this section or if a scholar's inability to complete the scholarship repayments within this 10-year period because of his a financial condition has been established to the council's college's satisfaction.

K. The council college shall cancel a scholar's repayment obligation if it determines that:

1. On the basis of a sworn affidavit of a qualified physician, the scholar is unable to work on a full-time basis because of an impairment that is expected to continue indefinitely or result in death; or

2. On the basis of a death certificate or other evidence conclusive under state law, the scholar has died.

8VAC40-140-90. Responsibility of the college.

The college shall:

1. Comply with all requests from the council for reports or information necessary to carry out the operation of the program;

2. Retain a copy of each signed promissory note and send the original promissory note to the council; and

3. Notify the council if a scholar fails to meet the terms of the promissory note and enters repayment status.

DOCUMENTS INCORPORATED BY REFERENCE (8VAC40-140)

Domicile Guidelines, State Council of Higher Education for Virginia, October 25, 2016