THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BOSCOLA, TARTAGLIONE, STOUT, FONTANA, RAFFERTY, WASHINGTON, ALLOWAY, HUGHES AND WONDERLING, APRIL 23, 2009

REFERRED TO EDUCATION, APRIL 23, 2009  

AN ACT

Providing for academic excellence scholarships for persons

entering a college or university within this Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Academic

Excellence Scholarship Program Act.

Section 2.  Purpose.

The purpose of this act is to reward educational excellence

and provide an incentive to Pennsylvania students to pursue

higher education.

Section 3. Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency."  The Pennsylvania Higher Education Assistance

Agency.

"Approved educational institution."  A postsecondary

educational institution located in this Commonwealth that is

authorized to provide approved courses of study and grant

degrees, and has been approved by the Pennsylvania Higher

Education Assistance Agency as an institution in which students

may enroll to participate in the Academic Excellence Scholarship

Program.

"Grant."  The term includes a program grant and a scholarship

grant.

"Program."  The Academic Excellence Scholarship Program

established under section 4.

"Program grant."  A grant issued under section 4.

"Scholarship grant."  A grant issued under section 5.

"Student."  A school-age resident of this Commonwealth who

attends or is about to attend a secondary school or

postsecondary educational institution located in this

Commonwealth and whose annual family income does not exceed

$250,000.

"Work requirement."  Postgraduate, full-time employment with

an employer located in this Commonwealth. The term does not

include a paid student internship, a paid fellowship, volunteer

service or employment before graduation.

Section 4.  Academic Excellence Scholarship Program.

(a)  Establishment of program.--The Academic Excellence

Scholarship Program is established within the agency.

(b)  Issuance of program grants.--

(1)  The agency may provide program grants which may be

referred to as Academic Excellence Scholarship Program

Grants, to not more than 1,000 students. If more than 1,000

students apply, a lottery system shall be employed. The

program grants may be issued to students only upon

confirmation from approved educational institutions to which

the students have enrolled full time immediately following

their high school graduation.

(2)  The program grants shall be for the amount set forth

in section 5(a) and shall only be used for tuition and

mandatory fees.

(3)  The program grants shall be awarded solely on the

basis of merit and without regard to need.

(c)  Eligibility.--To receive a program grant under this

section, a student shall meet all of the following requirements:

(1)  Maintenance of Pennsylvania residency during the

term of the program grant.

(2)  Graduation within the top five percent from a high

school in this Commonwealth. The student must have attended a

public or private high school within this Commonwealth during

the junior and senior years.

(3)  High school grade point average of 95%.

(4)  Scholastic Achievement Test score of no less than

1400.

(5)  Maintenance of a grade point average of 3.0 or

higher, on a scale of 4.0, or its equivalent, beginning with

the first semester of the freshman year and through the term

of the program grant.

(6)  Entrance into a written agreement with the agency

to:

(i)  Satisfy all degree requirements for graduation

unless the agency determines that there are extenuating

circumstances.

(ii)  Commence employment in this Commonwealth within

one year after completion of an undergraduate degree for

a period of two years.

(iii)  Reimburse the Commonwealth all amounts

received under this act and interest thereon, as

determined by the agency, if the student fails to comply

with subparagraph (i).

(iv)  Reimburse the Commonwealth 50% of the amount

received under this act and interest thereon, as

determined by the agency, if the student fails to comply

with subparagraph (ii).

(d)  Application.--A student must apply to the agency for a

program grant as prescribed by the agency, to include the

provision of all information and documentation required by the

agency. The application of a student under 18 years of age must

include the signature of a parent or guardian. The application

must include a verified statement of grade point average from

the appropriate educational institution.

(e)  Work requirement.--The work requirement under subsection

(c)(5)(ii) shall begin after the receipt of bachelor's degree

from an approved educational institution.

(f)  Termination.--If a student who has received a program

grant terminates enrollment in the approved educational

institution during the academic year or prior to completion, the

approved education institution shall notify the agency in

writing and shall return all unused portions of the program

grant. Returned amounts shall be used to fund other program

grants under this act.

(g)  Transfer.--A program grant may only be transferrable to

another educational institution if approved by the agency.

(h)  Limitation.--A program grant shall be paid from funds

appropriated for that purpose. First priority for awarding

program grants shall be given to renewal applicants. Thereafter,

the program grants shall be awarded on a first-come-first-served

basis.

Section 5.  Academic Excellence Scholarships.

(a)  Amount of scholarship grants.--In addition to the

program grants issued under section 4, the agency shall issue

grants under this program, which grants may be referred to as

Academic Excellence Scholarships in the amount of $5,000 per

academic year, to a student enrolled full time in an approved

educational institution pursuing a bachelor's degree. The

student shall take at least 12 semester hours or their

equivalent.

(b)  Term of grant.--The scholarship grant shall be for a

maximum of four consecutive academic years.

(c)  Exception.--If the student fails to meet the GPA

requirements during a semester and is denied scholarship grant

money, the student may reapply the following year for a second

chance program grant and shall continue at the student's expense

for the next year. If the student earns 3.0 at the end of that

year, the student may reapply for the remaining years. If the

student does not obtain a GPA of 3.0 or higher within the year

following dismissal from the program, the student may not

reapply.

Section 6.  Administration.

(a)  Verification.--The agency shall monitor and verify a

student's fulfillment of all the work requirements under this

act.

(b)  Enforcement.--The agency shall enforce repayment of all

grants for a student who does not comply with the provisions of

this act, to include use of all lawful collection procedures and

the use of private collection agencies.

(c)  Exclusion from taxation.--No grant received by a student

shall not be considered taxable income for purposes of Article

III of the act of March 4, 1971 (P.L.6, No.2), known as the Tax

Reform Code of 1971.

(d)  Financial assistance.--No grant received by a student

shall be considered financial assistance or appropriations to

the approved education institution.

(e)  Appeals.--The provisions of this act shall be subject to

2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of

Commonwealth agencies).

(f)  Regulations.--The agency shall adopt regulations and

procedures necessary to carry out the purposes of this act.

Section 7.  Effective date.

This act shall take effect July 1, 2010.