THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY BOSCOLA, WILLIAMS, BROWNE, FERLO, COSTA, TARTAGLIONE, FONTANA, STACK, SOLOBAY, BREWSTER, WASHINGTON, FARNESE, WOZNIAK AND RAFFERTY, MARCH 2, 2011

REFERRED TO EDUCATION, MARCH 2, 2011  

AN ACT

Providing for academic excellence scholarships for persons

entering a college or university within this Commonwealth and

for powers and duties of the Pennsylvania Higher Education

Assistance Agency.

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. 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.

"Program."  The Academic Excellence Scholarship Program

established by this act.

"Student."  An individual domiciled in 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 3.  Academic Excellence Scholarship Program.

There is hereby established the Academic Excellence

Scholarship Program within the agency to reward academic

excellence and provide an incentive for Pennsylvania students to

pursue higher education and professional opportunities within

this Commonwealth.

Section 4.  Scholarship grants.

(a)  Issuance.--The agency may provide scholarship grants

annually to eligible students who are residents of this

Commonwealth. A scholarship grant may be issued to a student

only upon confirmation from an approved educational institution

that the student has enrolled full time no later than the fall

semester immediately following high school graduation.

(b)  Amount.--Scholarship grants shall be for the amount set

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

mandatory fees.

(c)  Award.--A scholarship program grant shall be awarded

solely on the basis of merit.

(d)  Eligibility.--To receive a scholarship grant under this

act, a student must meet all of the following requirements:

(1)  Maintenance of Pennsylvania domicile during the term

of the scholarship grant.

(2)  Graduation within the top 5% of students 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 cumulative grade point average of 3.0 or

higher, on a scale of 4.0, or its equivalent.

(4)  A score of no less than 2130 on the SAT or an ACT

score of no less than 32.

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

higher, on a scale of 4.0, or its equivalent.

(6)  Entrance into a written agreement with the agency

to:

(i)  Satisfy all degree requirements for graduation.

(ii)  Commence employment in this Commonwealth within

one year after completion of an undergraduate degree for

a period of one year for each academic year the student

received a scholarship grant under this act unless the

agency determines that there are extenuating

circumstances.

(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) or (ii).

(e)  Application.--A student shall apply to the agency for a

scholarship grant as prescribed by the agency and provide all

information and documentation required by the agency. The

application of a student under 18 years of age shall include the

signature of a parent or guardian. The application shall include

a verified statement of grade point average from the appropriate

educational institution.

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

(d)(6)(ii) shall begin after receipt of a bachelor's degree from

an approved educational institution.

(g)  Termination.--If a student who has received a

scholarship 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

scholarship grant. Returned amounts shall be used to fund other

scholarship grants under this act.

(h)  Transfer.--A scholarship  grant may only be

transferrable to another approved educational institution if

approved by the agency.

(i)  Limitation.--A scholarship grant shall be paid from

funds appropriated for that purpose. First priority for awarding

scholarship grants shall be given to renewal applicants.

Thereafter, the scholarship grants shall be awarded on a first-

come-first-served basis.

(j)  Exception.--The agency shall postpone the work

requirement under subsection (f) for extenuating circumstances

or because of the student's enrollment on a full-time basis in a

graduate degree program within one year of the receipt of a

bachelor's degree from an approved educational institution. The

agency shall require documentation of the person's continual

status as a full-time student as defined by the agency. The work

requirement under subsection (d)(6)(ii) shall begin within one

year after termination of enrollment on a full-time basis in a

graduate degree program.

Section 5.  Academic Excellence Scholarships.

(a)  Amount of scholarship grants.--The agency shall issue

scholarship grants under the 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 must be enrolled for a minimum of 12

semester hours each semester or its equivalent.

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

maximum of four academic years.

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

grade point average requirements during a semester and is denied

a scholarship grant, the student may reapply the following year

for a scholarship grant, but must continue at the student's

expense for the next year. If the student earns a cumulative

grade point average of 3.0 or higher at the end of that year,

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

does not obtain a cumulative grade point average 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

scholarship grants for a student who does not comply with the

provisions of this act, including use of all lawful collection

procedures and the use of private collection agencies.

(c)  Exclusion from taxation.--A scholarship 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.--A scholarship grant received by a

student shall be considered financial assistance or an

appropriation 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.  Annual report.

(a)  Development of report.--The agency shall publish a

report each year containing information regarding the operation

of the scholarship program. The initial report shall be

submitted by September 1 in the year following the first full

academic year in which scholarship grants have been awarded, and

by September 1 of each year thereafter. The report shall

include:

(1)  Total number of students receiving scholarship

grants, with a breakdown of whether the scholarship is an

initial scholarship grant or a renewal of a scholarship

grant.

(2)  Total number of students who withdraw from the

program or work requirements.

(b)  Submission.--The annual report shall be submitted to the

Governor and the chairman and minority chairman of the

Appropriations Committee of the Senate, the chairman and

minority chairman of the Appropriations Committee of the House

of Representatives, the chairman and minority chairman of the

Education Committee of the Senate and the chairman and minority

chairman of the Education Committee of the House of

Representatives.

Section 20.  Effective date.

This act shall take effect July 1, 2011.