(1) There is created the Colorado opportunity scholarship initiative advisory board, which shall consist of the executive committee of the state work force development council created in section 24-46.3-101, C.R.S., as described in the bylaws of the council, as well as the following three persons, to be appointed by the governor or his or her designee:

(a) One person representing the four-year research institutions of higher education in the state;

(b) One person representing the system of four-year postsecondary institutions in the state; and

(c) One person representing the community colleges and area vocational districts of the state.

(2) The governor or his or her designee shall make his or her appointments to the board on or before August 1, 2014. The members of the board shall elect presiding officers for the board, including a chair and vice-chair, from among the board members appointed pursuant to subsection (1) of this section, which presiding officers shall serve terms of two years. Board members may reelect a presiding officer.

(3) Each member of the board appointed by the governor or his or her designee shall serve at the pleasure of the governor or his or her designee for a term of four years. The governor or his or her designee may reappoint the member for an additional term or terms. Members of the board shall serve without compensation.

(4) The board shall hold its first meeting on or before November 1, 2014, at a time and place to be designated by the executive director or by his or her designee. The board shall meet at least four times each year and shall carry out the following duties:

(a) Promulgate rules for administration of the initiative, including but not limited to the following:

(I) Criteria for eligibility of state agencies, nonprofit organizations, and public institutions of higher education to participate in the initiative;

(II) Criteria for eligibility of students to apply for and receive grants from the initiative, which criteria shall include consideration of an applicant student's:

(A) Courses of study;

(B) Commitment to academic achievement;

(C) Work experience;

(D) Community involvement; and

(E) Extracurricular activities;

(III) Rules establishing permissible uses of grant and scholarship moneys from the initiative, which rules shall stipulate that:

(A) Not more than ten percent of the moneys in the fund in any fiscal year may be awarded to state agencies and nonprofit organizations to assist such agencies and organizations with ensuring that student-success, precollegiate, postsecondary student support services are available to students who are classified as Colorado residents for tuition purposes; increasing the capacity for student support services at postsecondary institutions; and developing connections between local employers, public schools, precollegiate organizations, and postsecondary institutions;

(B) Of the moneys described in sub-subparagraph (A) of this subparagraph (III), at least seventy percent must be awarded to nongovernmental entities;

(C) Any moneys appropriated to the fund that are not used for the purposes described in sub-subparagraph (A) of this subparagraph (III), or to pay the direct and indirect costs of administering the initiative as described in section 23-3.3-1005 (4), must be used to build a financial corpus capable of providing tuition assistance to eligible Colorado students in Colorado who will attend eligible institutions of higher education within the state. Tuition assistance provided pursuant to this sub-subparagraph (C) may take the form of direct awards, matching incentives to create or increase the number of other scholarships, loans, or any combination thereof.

(D) To the extent practicable, grants of tuition assistance must be awarded to students representing rural and urban areas of the state and to students attending public vocational schools, area technical colleges, community colleges, four-year institutions of higher education, and research institutions; and

(E) To the extent practicable, tuition assistance must be evenly distributed between students who are eligible for federal PELL grants and students whose household incomes are between one hundred percent and two hundred fifty percent of the maximum permissible income for the purpose of determining eligibility for PELL grants;

(IV) Criteria for evaluating the effectiveness of the initiative in improving higher education outcomes in the state, which criteria must include, but need not be limited to:

(A) Reductions in remediation rates and associated costs;

(B) Increases in graduation rates;

(C) Reductions in average time required to earn a degree;

(D) Increases in student retention rates;

(E) Reductions in disparities between the academic achievements of certain student populations based on demographic, geographic, and economic indicators;

(F) Adoption of best practices for student support services;

(G) Fulfillment of local workforce needs;

(H) Reductions in student loan debt;

(I) Improvements in tuition affordability; and

(J) Improvements in students' access to federal grant programs and other federal sources of support for postsecondary students;

(b) Identify and consider the feasibility of potential funding sources for the initiative, including but not limited to:

(I) The implementation of an income tax credit for taxpayers of the state who elect to make a contribution to the fund; and

(II) Any fundraising for the initiative that may result from a memorandum of understanding executed between the board and a nonprofit organization, as described in subsection (5) of this section; and

(c) On or before May 30, 2015, prepare and submit to the director any recommendations the board has for the general assembly concerning the implementation of the initiative. The director shall report the recommendations of the board to the education committees of the house of representatives and senate, or to any successor committees, as described in section 23-3.3-1003 (2).

(5) The board may enter into a memorandum of understanding with a nonprofit organization for the purpose of raising moneys for the initiative.