AN ACT

 

1Establishing a Statewide academic scholarship program to be
2known as the Reliable Educational Assistance for College
3Hopefuls Scholarship; and providing for the powers and duties
4of the Pennsylvania Higher Education Assistance Agency.

5The General Assembly of the Commonwealth of Pennsylvania
6hereby enacts as follows:

7Section 1.  Short title.

8This act shall be known and may be cited as the Reliable
9Educational Assistance for College Hopefuls Scholarship Act.

10Section 2.  Purpose.

11The purpose of this act is to reward educational excellence
12and provide an incentive to Pennsylvania students to pursue
13higher education within this Commonwealth.

14Section 3.  Definitions.

15The following words and phrases when used in this act shall
16have the meanings given to them in this section unless the
17context clearly indicates otherwise:

1"Agency."  The Pennsylvania Higher Education Assistance 
2Agency.

3"Fund."  The REACH Scholarship Fund established in section 6.

4"Grade point average."  The numbered grade average calculated 
5using a 4.0 scale.

6"Private institution of higher education."  An institution of 
7higher education located in this Commonwealth that provides an 
8organized four-year program of undergraduate instruction toward 
9a baccalaureate degree and that is not a State-owned institution 
10or State-related institution.

11"REACH."  The Reliable Educational Assistance for College 
12Hopefuls Scholarship established under section 4.

13"State-owned institution."  An institution that is part of 
14the State System of Higher Education pursuant to Article XX-A of 
15the act of March 10, 1949 (P.L.30, No.14), known as the Public 
16School Code of 1949.

17"State-related institution."  Any of the following: The 
18Pennsylvania State University, the University of Pittsburgh, 
19Temple University and Lincoln University and their branch 
20campuses.

21"Student."  A school-age resident of this Commonwealth who 
22attends or is about to attend a State-owned institution, State-
23related institution or private institution of higher education 
24located in this Commonwealth.

25Section 4.  REACH Scholarship.

26(a)  Establishment.--The REACH Scholarship is established
27within the agency.

28(b)  Issuance of scholarships.--

29(1)  The agency shall provide scholarships, which may be
30referred to as REACH Scholarships, to all students who meet

1the requirements of subsection (d) or (f). The scholarships
2may be issued to a student only upon confirmation from the
3State-owned institution, State-related institution or private
4institution of higher education to which the student has
5enrolled full time.

6(2)  The scholarships shall be available for four years
7or upon completion of a baccalaureate degree, whichever
8occurs earlier.

9(3)  The scholarships shall only be used for tuition and
10mandatory fees.

11(4)  The scholarships shall be awarded solely on the
12basis of merit and without regard to need.

13(5)  The scholarships shall only be awarded to students
14who are high school seniors during or after the school year
15in which this section takes effect.

16(c)  Calculation of award.--

17(1)  Each eligible student who will attend or attends a
18State-owned institution shall receive a full-tuition
19scholarship.

20(2)  Each eligible student who will attend or attends a
21State-related institution or private institution of higher
22education shall receive the lesser of a full-tuition
23scholarship or a scholarship equal to the average tuition at
24the State-owned institutions as calculated annually by the
25agency.

26(d)  Eligibility.--To receive a scholarship under this
27section, a student must meet all of the following requirements:

28(1)  Pennsylvania residency for at least three years
29prior to application for the REACH Scholarship.

30(2)  Pennsylvania residency during the term of the

1scholarship.

2(3)  Cumulative high school grade point average of 3.0 or 
3higher for the sophomore, junior and senior years of high 
4school. If the student does not graduate from high school or 
5completes a home study program meeting the requirements of 
6section 1327.1 of the act of March 10, 1949 (P.L.30, No.14), 
7known as the Public School Code of 1949, the agency shall 
8determine the eligibility of the student.

9(4)  Cumulative high school attendance of at least 90%
10for the sophomore, junior and senior years of high school
11unless the agency determines there are extenuating
12circumstances, including, but not limited to, approved
13medical or personal leave of absence. If the student does not
14graduate from high school but completes a home study program
15meeting the requirements of section 1327.1 of the Public
16School Code of 1949, the agency shall determine the
17eligibility of the student.

18(5)  Satisfactory disciplinary record or conduct record
19for the sophomore, junior and senior years of high school. If
20the student does not meet this requirement but meets or
21exceeds all other requirements under this subsection, the
22agency shall determine eligibility of the student.

23(6)  Satisfactory academic progress toward completion of
24a course of study at a State-owned institution, State-related
25institution or private institution of higher education as
26provided under subsection (f).

27(7)  Entrance into a written agreement with the agency to
28maintain Pennsylvania residency for four years after
29completion of a baccalaureate degree. The student shall
30reimburse the Commonwealth all amounts received under this

1act and interest thereon, at a rate equal to the average
2Stafford loan through the term of the scholarship, if the
3student fails to comply with the terms of the written
4agreement.

5(8)  Apply for the Free Application for Federal Student
6Aid each year during the term of the scholarship.

7(9)  Complete at least 100 hours of community service
8each academic year. The community service must be documented
9by a supervisor and approved by the agency.

10(e)  Contents of application.--The application of a student
11who seeks a scholarship as prescribed by the agency must
12include:

13(1)  All information and documentation required by the
14agency.

15(2)  If the student is under 18 years of age, the
16signature of a parent or guardian.

17(3)  A verified statement of grade point average,
18attendance and disciplinary record or conduct record from the
19appropriate educational institution.

20(f)  Maintenance of scholarship.--

21(1)  Except as provided under paragraph (2), a student
22must maintain a grade point average of 3.0 or higher during
23each semester at a State-owned institution, State-related
24institution or private institution of higher education
25through the term of the scholarship, unless the agency
26determines that there are extenuating circumstances,
27including, but not limited to, approved medical or personal
28leave of absence.

29(2)  In the event that a student receives a grade point
30average below 3.0 during a semester at a State-owned

1institution, State-related institution or private institution
2of higher education, the agency shall place the student on
3scholarship probation. If a student on scholarship probation 
4receives a grade point average below 3.0 in any following 
5semester, the scholarship shall be terminated.

6(3)  A student must complete 40 hours of community
7service during each 12-month period during the term of the
8scholarship, which community service must be verified by the
9agency.

10(g)  Scholarship termination and transfer.--

11(1)  If a student who has received a scholarship
12terminates enrollment in the educational institution to which
13the student has enrolled full time during the academic year,
14the educational institution shall notify the agency in
15writing and shall return all unused portions of the
16scholarship.

17(2)  Returned amounts shall be deposited in the REACH
18Scholarship Fund.

19(3)  A student may transfer a scholarship from one State-
20owned institution, State-related institution or private
21institution of higher education to another.

22(h)  Limitation.--A scholarship shall be paid only from the
23REACH Scholarship Fund.

24Section 5.  Administration.

25(a)  Verification.--The agency shall monitor and verify a
26student's compliance with all the requirements under this act.

27(b)  Enforcement.--The agency shall enforce repayment of all
28scholarships for a student who does not comply with the
29provisions of this act, to include use of all lawful collection
30procedures and the use of private collection agencies.

1(c)  Exclusion from taxation.--No scholarship received by a 
2student shall be considered taxable income for purposes of 
3Article III of the act of March 4, 1971 (P.L.6, No.2), known as 
4the Tax Reform Code of 1971.

5(d)  Financial assistance.--No scholarship received by a
6student shall be considered financial assistance or
7appropriations to the approved education institution.

8(e)  Regulations.--The agency shall adopt regulations and
9procedures necessary to carry out the purposes of this act.

10Section 6.  REACH Scholarship Fund.

11(a)  Establishment.--The REACH Scholarship Fund is
12established as a separate fund in the State Treasury.

13(b)  Administration.--The fund shall be administered by the
14agency.

15(c)  Use of fund.--The purpose of the fund shall be to
16provide full tuition scholarships or equivalent scholarships to
17students who have been determined eligible in accordance with
18this act.

19(d)  Funding source.--

20(1)  Donations and contributions from all public and
21private sources, including the Federal Government, and any
22appropriations or transfers authorized by the General
23Assembly may be deposited in the fund.

24(2)  All interest earned by the fund and all refunds and
25repayments shall be credited to the fund.

26Section 7.  Report to General Assembly.

27On or before April 1 following the effective date of this
28section, and in each succeeding year in which REACH Scholarships
29are awarded, the agency shall provide a report to the General
30Assembly regarding the implementation and administration of this

1act.

2Section 20.  Effective date.

3This act shall take effect July 1, 2013, or immediately,
4whichever is later.