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                                                      PRINTER'S NO. 2281

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1722 Session of 2007


        INTRODUCED BY PAYTON, D. O'BRIEN, THOMAS, SHAPIRO, BLACKWELL,
           COHEN, CRUZ, DeWEESE, DONATUCCI, EACHUS, FREEMAN, GEIST,
           GERBER, GERGELY, GOODMAN, GRUCELA, HARPER, HERSHEY,
           HUTCHINSON, JOSEPHS, KIRKLAND, KORTZ, KULA, LEACH, LENTZ,
           LEVDANSKY, LONGIETTI, McGEEHAN, MURT, MYERS, M. O'BRIEN,
           OLIVER, PARKER, SABATINA, SHIMKUS, STURLA, SURRA, J. TAYLOR,
           R. TAYLOR, WAGNER, WANSACZ, WATERS, WHEATLEY, WILLIAMS AND
           YOUNGBLOOD, JULY 9, 2007

        REFERRED TO COMMITTEE ON EDUCATION, JULY 9, 2007

                                     AN ACT

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

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7  Section 1.  Short title.
     8     This act shall be known and may be cited as the Reliable
     9  Educational Assistance for College Hopefuls Scholarship Act.
    10  Section 2.  Purpose.
    11     The purpose of this act is to reward educational excellence
    12  and provide an incentive to Pennsylvania students to pursue
    13  higher education within this Commonwealth.
    14  Section 3.  Definitions.
    15     The following words and phrases when used in this act shall
    16  have the meanings given to them in this section unless the

     1  context clearly indicates otherwise:
     2     "Agency."  The Pennsylvania Higher Education Assistance
     3  Agency.
     4     "Fund."  The REACH Scholarship Fund established in section 6.
     5     "Grade point average."  The numbered grade average calculated
     6  using a 4.0 scale.
     7     "Private institution of higher education."  An institution of
     8  higher education located in this Commonwealth that provides an
     9  organized four-year program of undergraduate instruction toward
    10  a baccalaureate degree and that is not a State-owned institution
    11  or State-related institution.
    12     "REACH."  The Reliable Educational Assistance for College
    13  Hopefuls Scholarship established under section 4.
    14     "State-owned institution."  An institution that is part of
    15  the State System of Higher Education pursuant to Article XX-A of
    16  the act of March 10, 1949 (P.L.30, No.14), known as the Public
    17  School Code of 1949.
    18     "State-related institution."  Any of the following: The
    19  Pennsylvania State University, The University of Pittsburgh,
    20  Temple University and Lincoln University and their branch
    21  campuses.
    22     "Student."  A school-age resident of this Commonwealth who
    23  attends or is about to attend a State-owned institution, State-
    24  related institution or private institution of higher education
    25  located in this Commonwealth.
    26  Section 4.  REACH Scholarship.
    27     (a)  Establishment.--The REACH Scholarship is established
    28  within the agency.
    29     (b)  Issuance of scholarships.--
    30         (1)  The agency shall provide scholarships, which may be
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     1     referred to as REACH Scholarships, to all students who meet
     2     the requirements of subsection (d) or (f). The scholarships
     3     may be issued to a student only upon confirmation from the
     4     State-owned institution, State-related institution or private
     5     institution of higher education to which the student has
     6     enrolled full time.
     7         (2)  The scholarships shall be available for four years
     8     or upon completion of a baccalaureate degree, whichever
     9     occurs earlier.
    10         (3)  The scholarships shall only be used for tuition and
    11     mandatory fees.
    12         (4)  The scholarships shall be awarded solely on the
    13     basis of merit and without regard to need.
    14         (5)  The scholarships shall only be awarded to students
    15     who are high school seniors during or after the school year
    16     in which this section takes effect.
    17     (c)  Calculation of award.--
    18         (1)  Each eligible student who will attend or attends a
    19     State-owned institution shall receive a full-tuition
    20     scholarship.
    21         (2)  Each eligible student who will attend or attends a
    22     State-related institution or private institution of higher
    23     education shall receive the lesser of a full-tuition
    24     scholarship or a scholarship equal to the average tuition at
    25     the State-owned institutions as calculated annually by the
    26     agency.
    27     (d)  Eligibility.--To receive a scholarship under this
    28  section, a student must meet all of the following requirements:
    29         (1)  Pennsylvania residency for at least three years
    30     prior to application for the REACH Scholarship.
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     1         (2)  Pennsylvania residency during the term of the
     2     scholarship.
     3         (3)  Cumulative high school grade point average of 3.0 or
     4     higher for the sophomore, junior and senior years of high
     5     school. If the student does not graduate from high school or
     6     completes a home study program meeting the requirements of
     7     section 1327.1 of the act of March 10, 1949 (P.L.30, No.14),
     8     known as the Public School Code of 1949, the agency shall
     9     determine the eligibility of the student.
    10         (4)  Cumulative high school attendance of at least 90%
    11     for the sophomore, junior and senior years of high school
    12     unless the agency determines there are extenuating
    13     circumstances, including, but not limited to, approved
    14     medical or personal leave of absence. If the student does not
    15     graduate from high school but completes a home study program
    16     meeting the requirements of section 1327.1 of the Public
    17     School Code of 1949, the agency shall determine the
    18     eligibility of the student.
    19         (5)  Satisfactory disciplinary record or conduct record
    20     for the sophomore, junior and senior years of high school. If
    21     the student does not meet this requirement but meets or
    22     exceeds all other requirements under this subsection, the
    23     agency shall determine eligibility of the student.
    24         (6)  Satisfactory academic progress toward completion of
    25     a course of study at a State-owned institution, State-related
    26     institution or private institution of higher education as
    27     provided under subsection (f).
    28         (7)  Entrance into a written agreement with the agency to
    29     maintain Pennsylvania residency for four years after
    30     completion of an undergraduate degree. The student shall
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     1     reimburse the Commonwealth all amounts received under this
     2     act and interest thereon, at a rate equal to the average
     3     Stafford loan through the term of the scholarship, if the
     4     student fails to comply with the terms of the written
     5     agreement.
     6         (8)  Apply for the Free Application for Federal Student
     7     Aid each year during the term of the scholarship.
     8     (e)  Contents of application.--The application of a student
     9  who seeks a scholarship as prescribed by the agency must
    10  include:
    11         (1)  All information and documentation required by the
    12     agency.
    13         (2)  If the student is under 18 years of age, the
    14     signature of a parent or guardian.
    15         (3)  A verified statement of grade point average,
    16     attendance and disciplinary record or conduct record from the
    17     appropriate educational institution.
    18     (f)  Maintenance of scholarship.--
    19         (1)  Except as provided under paragraph (2), a student
    20     must maintain a grade point average of 3.0 or higher during
    21     each semester at a State-owned institution, State-related
    22     institution or private institution of higher education
    23     through the term of the scholarship, unless the agency
    24     determines that there are extenuating circumstances,
    25     including, but not limited to, approved medical or personal
    26     leave of absence.
    27         (2)  In the event that a student receives a grade point
    28     average below 3.0 during the first or second semester of the
    29     freshmen or first year at a State-owned institution, State-
    30     related institution or private institution of higher
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     1     education, the agency shall place the student on scholarship
     2     probation.
     3         (3)  A student must complete 40 hours of community
     4     service during each 12-month period during the term of the
     5     scholarship, which community service must be verified by the
     6     agency.
     7     (g)  Scholarship termination and transfer.--
     8         (1)  If a student who has received a scholarship
     9     terminates enrollment in the educational institution to which
    10     the student has enrolled full time during the academic year,
    11     the educational institution shall notify the agency in
    12     writing and shall return all unused portions of the
    13     scholarship.
    14         (2)  Returned amounts shall be deposited in the REACH
    15     Scholarship Fund.
    16         (3)  A student may transfer a scholarship from one State-
    17     owned institution, State-related institution or private
    18     institution of higher education to another.
    19     (h)  Limitation.--A scholarship shall be paid only from the
    20  REACH Scholarship Fund.
    21  Section 5.  Administration.
    22     (a)  Verification.--The agency shall monitor and verify a
    23  student's compliance with all the requirements under this act.
    24     (b)  Enforcement.--The agency shall enforce repayment of all
    25  scholarships for a student who does not comply with the
    26  provisions of this act, to include use of all lawful collection
    27  procedures and the use of private collection agencies.
    28     (c)  Exclusion from taxation.--No scholarship received by a
    29  student shall not be considered taxable income for purposes of
    30  Article III of the act of March 4, 1971 (P.L.6, No.2), known as
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     1  the Tax Reform Code of 1971.
     2     (d)  Financial assistance.--No scholarship received by a
     3  student shall be considered financial assistance or
     4  appropriations to the approved education institution.
     5     (e)  Regulations.--The agency shall adopt regulations and
     6  procedures necessary to carry out the purposes of this act.
     7  Section 6.  REACH Scholarship Fund.
     8     (a)  Establishment.--The REACH Scholarship Fund is
     9  established as a separate fund in the State Treasury.
    10     (b)  Administration.--The fund shall be administered by the
    11  agency.
    12     (c)  Use of fund.--The purpose of the fund shall be to
    13  provide full tuition scholarships or equivalent scholarships to
    14  students who have been determined eligible in accordance with
    15  this act.
    16     (d)  Funding source.--
    17         (1)  Donations and contributions from all public and
    18     private sources, including the Federal Government, and any
    19     appropriations or transfers authorized by the General
    20     Assembly may be deposited in the fund.
    21         (2)  All interest earned by the fund and all refunds and
    22     repayments shall be credited to the fund.
    23  Section 7.  Report to General Assembly.
    24     On or before April 1 following the effective date of this
    25  section, and in each succeeding year in which REACH Scholarships
    26  are awarded, the agency shall provide a report to the General
    27  Assembly regarding the implementation and administration of this
    28  act.
    29  Section 8.  Effective date.
    30     This act shall take effect July 1, 2008, or immediately,
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     1  whichever is later.




















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