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S1237......................................................by STATE AFFAIRS IDAHO PROMISE SCHOLARSHIP PROGRAM - Amends existing law to create the Idaho Promise Scholarship Fund to provide additional scholarship moneys to Idaho high school graduates who fulfill minimum academic requirements. 02/25 Senate intro - 1st rdg - to printing 02/26 Rpt prt - to Educ 03/08 Rpt out - rec d/p - to 2nd rdg 03/09 2nd rdg - to 3rd rdg 03/10 3rd rdg - PASSED - 32-0-3 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler, Whitworth NAYS--None Absent and excused--Crow, Parry, Twiggs Floor Sponsor - Lee Title apvd - to House 03/11 House intro - 1st rdg - to Educ 03/15 Rpt out - rec d/p - to 2nd rdg 03/16 2nd rdg - to 3rd rdg 03/18 3rd rdg - FAILED - 25-39-6 AYES -- Barraclough, Bieter, Boe, Cuddy, Deal, Denney, Field(13), Hansen(29), Jones, Kellogg, Linford, Marley, Meyer(Duncan), Montgomery, Mortensen, Pomeroy, Reynolds, Ringo, Robison, Sellman, Smith, Stoicheff, Tilman, Trail, Zimmermann NAYS -- Barrett, Bell, Bruneel, Callister, Campbell, Chase, Clark, Crow, Ellsworth, Field(20), Gagner, Geddes, Gould, Hadley, Hansen(23), Henbest, Hornbeck, Jaquet, Judd, Kempton, Kendell, Kunz, Lake, Limbaugh, Loertscher, Mader, McKague, Moyle, Pischner, Ridinger, Sali, Schaefer, Stevenson, Stone, Taylor, Tippets, Watson, Wheeler, Mr Speaker Absent and excused -- Alltus, Black, Hammond, Smylie, Williams, Wood Floor Sponsor - Jones, Bieter Filed with Secretary of the Senate
S1237|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE SENATE SENATE BILL NO. 1237 BY STATE AFFAIRS COMMITTEE 1 AN ACT 2 RELATING TO COLLEGE SCHOLARSHIPS; AMENDING SECTION 33-4303, IDAHO CODE, TO 3 PROVIDE THAT THE SCHOLARSHIP PROGRAM SHALL BE KNOWN AS THE "IDAHO PROMISE 4 SCHOLARSHIP PROGRAM"; AMENDING SECTION 33-4305, IDAHO CODE, TO REVISE PUR- 5 POSES; AMENDING SECTION 33-4306, IDAHO CODE, TO FURTHER DEFINE TERMS AND 6 TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 33-4307, IDAHO CODE, TO 7 PROVIDE ELIGIBILITY REQUIREMENTS FOR CATEGORY A AND CATEGORY B PARTICI- 8 PANTS, TO PROVIDE GRANT PROVISIONS FOR CATEGORY B PARTICIPANTS AND TO MAKE 9 TECHNICAL CORRECTIONS; AMENDING SECTION 33-4308, IDAHO CODE, TO PROVIDE 10 FOR THE MAXIMUM NUMBER OF GRANTS FOR CATEGORY A AND CATEGORY B STUDENTS; 11 AMENDING SECTION 33-4309, IDAHO CODE, TO PROVIDE FOR CONTINUANCE IN THE 12 CASE OF EXTREME HARDSHIP; AND AMENDING SECTION 33-4313, IDAHO CODE, TO 13 EXPAND THE DUTIES OF THE BOARD OF REGENTS OF THE UNIVERSITY OF IDAHO AND 14 THE STATE BOARD OF EDUCATION REGARDING SCHOLARSHIPS AND TO MAKE TECHNICAL 15 CORRECTIONS. 16 Be It Enacted by the Legislature of the State of Idaho: 17 SECTION 1. That Section 33-4303, Idaho Code, be, and the same is hereby 18 amended to read as follows: 19 33-4303. SHORT TITLE. This act shall be known and cited as the "20State ofIdaho Promise Scholarship Program." 21 SECTION 2. That Section 33-4305, Idaho Code, be, and the same is hereby 22 amended to read as follows: 23 33-4305. PURPOSES. The purpose of this act is: 24 (1) To establish a state scholarship program for the most talented Idaho 25 secondary school graduates , consisting of category A students with out- 26 standing academic qualifications and category B students who graduate with a 27 3.0 ("B") average or better and meeting any other criteria as may be estab- 28 lished by the board of regents of the University of Idaho or the state board 29 of education, who will enroll in undergraduate nonreligious academic 30 and vocational programs in eligible postsecondary institutions in the state; 31 and 32 (2) To designate the state board of education and the board of regents of 33 the University of Idaho as the administrative agency for thestate34Idaho promise scholarship program. 35 SECTION 3. That Section 33-4306, Idaho Code, be, and the same is hereby 36 amended to read as follows: 37 33-4306. DEFINITIONS. As used in this act, unless the context otherwise 38 requires: 39 (1)"Eligible postsecondary institution" means an educational orga-2 1nization within the state as follows:2(a)" Eligible pPublic post- 3 secondary institution" means a public postsecondary organization governed or 4 supervised by the state board of education, the board of regents of the Uni- 5 versity of Idaho, a board of trustees of ajuniorcommunity 6 college established pursuant to the provisions of section 33-2106, 7 Idaho Code, or the state board of vocational education. 8 (b2 ) "IndependentEligible 9 colleges and universities" means any accredited educa- 10 tional organization which is operated privately and not for profit under the 11 control of an independent board and not directly controlled or administered by 12 a public or political subdivision. 13 (23 ) "Educational costs" means student costs 14 for tuition, fees, room and board, or expenses related to reasonable 15 commuting, books and such other expenses reasonably related to attendance at a 16 postsecondary educational institution. 17 (34 ) "Resident student" means an individual as 18 defined in section 33-3717 or 33-2110B , Idaho Code. 19 (45 ) "Full-time student" means an individual 20 who is enrolled in and is carrying a sufficient number of credit hours, or 21 their equivalent;, to secure an individual's first 22 degree, certificate, diploma, or less, toward which the individual is working 23 in no more than the number of semesters, or equivalent, normally required by 24 the postsecondary educational institution in the program in which the individ- 25 ual is enrolled. 26 (56 ) "Undergraduate student" means an individ- 27 ual who is enrolled in a postsecondary educational institution which leads to 28 or is directly creditable toward the individual's first baccalaureate degree, 29 certificate, diploma, or less; provided such baccalaureate degree, certifi- 30 cate, diploma or less program requires at least six (6) months or equivalent 31 of consecutive attendance. A student engaged in a four (4) year baccalaureate 32 program shall not be terminated by having earned an intermediate degree, cer- 33 tificate, or diploma. 34 (67 ) "Enrollment" means the establishment and 35 maintenance of an individual's status as a student in a postsecondary educa- 36 tional institution, regardless of the term used at the institution to describe 37 such status. 38 (78 ) "Eligible category A student" 39 means any graduate of an accredited secondary school in the state of Idaho who 40 declares his intention to matriculate in an eligible public post- 41 secondary institution or eligible independent college or university 42 in the state of Idaho during the educational year immediately following 43 such graduation. 44 (9) "Eligible category B student" means any graduate of an accred- 45 ited secondary school in the state of Idaho who declares his intention to 46 matriculate in a public postsecondary institution or eligible independent col- 47 lege or university in the state of Idaho during two (2) educational years 48 immediately following such graduation and qualifies as a resident student. 49 50 (810 ) "Grant" means an award to an eligible stu- 51 dent for matriculation in an eligible postsecondary institution in the state 52 of Idaho. 53 (911 ) "Educational year" means the period from 54 July 1 of a year through June 30 of the succeeding year. 55 (102 ) "Competitive examination" means standard- 3 1 ized examination(s) measuring achievement administered annually on a voluntary 2 basis on a specified date and at specified locations announced publicly. 3 (113 ) "High school record"means4 for category A students will be defined by the state board of education 5 and the board of regents of the University of Idaho and may include, but not 6 be limited to, an individual's rank in his secondary school class 7 , grade point average, and difficulty of course load taken as certi- 8 fied by an official of such secondary school, andanthe 9 individual's secondary school deportment as evaluated by at least two 10 (2) officials of such secondary school. 11 (14) "High school record" for category B students shall be defined 12 by the state board of education and the board of regents of the University of 13 Idaho and may include, but not be limited to, an individual's secondary school 14 grade point average as certified by an official of such secondary school. 15 16 SECTION 4. That Section 33-4307, Idaho Code, be, and the same is hereby 17 amended to read as follows: 18 33-4307. ELIGIBILITY -- MAXIMUM AMOUNTS -- CONDITIONS. A grant may be 19 awarded to an eligible student for matriculation at an eligible postsecondary 20 educational institution in the state of Idaho if: 21 (1) The individual is accepted for enrollment as a full-time undergradu- 22 ate student, as follows: 23 (a) In the case of an individual beginning his first year or freshman 24 year of postsecondary education, he has satisfied requirements for admis- 25 sion and has enrolled in an eligible postsecondary institution. Eli- 26 gible category A and category B students may enroll in either a public 27 postsecondary institution or an independent college or university in the 28 state to be eligible for an award. 29 (b) In the case of an individual enrolled in an eligible postsecondary 30 institution following the successful completion of the first term, he con- 31 tinues to meet the requirements of this act and has maintained such high 32 standards of performance as may be required. Provided that high academic 33 standards are maintained in accordance with requirements of this chapter, 34 a student continues to be eligible when transferring from one (1) 35 major program to another. 36 (c) In the case of an individual transferring from one (1) eligible post- 37 secondary institution in Idaho to another eligible postsecondary institu- 38 tion in Idaho, he continues to meet the requirements of this act, is 39 accepted at the eligible postsecondary institution to which he is trans- 40 ferring, and has maintained such high standards of performance as may be 41 required. 42 Category A and category B students may transfer to another eligible pub- 43 lic postsecondary institution or an eligible independent college or univer- 44 sity. 45 (2) The grant for category A students isin amounts46as follows: 47 (a) The grant payment to an individual per educational year for atten- 48 dance on a full-time basis is not in excess of an amount determined annu- 49 ally by the state board of education or in excess of the total educational 50 costs as certified by an official of the eligible postsecondary institu- 51 tion to be attended by the individual receiving the grant, whichever is 52 less. 53 (b) The total grant payments over a period of six (6) years to an indi- 4 1 vidual may not exceed four (4) annual grants or the total educational 2 costs for four (4) educational years completed as certified by an official 3 of the eligible postsecondary institution or institutions attended by the 4 individual receiving the grant, whichever is less. 5 (3c ) The individual receiving such a grant 6 signs an affidavit stating that the grant will be used for educational 7 costs only. 8 (4d ) The grant is awarded on the basis of 9 extraordinary performance in standardized, unweighted competitive examina- 10 tion and high school record. 11 (5e ) The individual receiving the grant is not 12 precluded from receiving other financial aids, awards, or scholarships, 13 provided the total of the grant and such other financial aids, awards or 14 scholarships does not exceed the total educational costs for attendance at 15 an eligible postsecondary institution as certified by an official of the 16 eligible postsecondary institution to be attended by the individual 17 receiving the grant. 18 (6f ) Grant payments shall correspond to aca- 19 demic terms, semesters, quarters or equivalent time periods at an eligible 20 postsecondary institution; in no instance may the entire amount of a grant 21 for an educational year, as defined in section 33-4306(922 11 ), Idaho Code, be paid to or on behalf of such student in 23 advance. 24 (7g ) The individual has complied with such 25 rulesand regulationsas may be necessary for the administra- 26 tion of this act. 27 (3) The grant for category B students is as follows: 28 29 (a) The grant payment to an individual per educational year for 30 attendance on a full-time basis is not in excess of an amount determined 31 annually by the state board of education. 32 33 (b) The total grant payments over a period of four (4) years to an 34 individual may not exceed two (2) annual grants. 35 36 (c) The individual receiving such a grant signs an affidavit stat- 37 ing that the grant will be used for educational costs only. 38 39 (d) The grant is awarded on the basis of high school record and 40 other criteria as may be established by the state board of education and 41 the board of regents of the University of Idaho. 42 43 (e) The individual receiving the grant is not precluded from 44 receiving other financial aids, awards or scholarships except that cate- 45 gory A student award recipients are not eligible for category B awards. 46 47 (f) Grant payments shall correspond to academic terms, semesters, 48 quarters or equivalent time periods at an eligible postsecondary institu- 49 tion; in no instance may the entire amount of a grant for an educational 50 year, as defined in section 33-4306(11), Idaho Code, be paid to or on 51 behalf of such student in advance. 52 53 (g) The individual has complied with such rules as may be necessary 54 for the administration of this chapter. 5 1 SECTION 5. That Section 33-4308, Idaho Code, be, and the same is hereby 2 amended to read as follows: 3 33-4308. MAXIMUM NUMBER OF GRANTS. (1) The total number of 4 grants to eligible category A students shall not exceed one hun- 5 dred (100) per year, nor a cumulative total number of grants of four hundred 6 (400) outstanding at any given time . 7 (2) The total number of grants to category B students will be 8 determined annually by the board of regents of the University of Idaho and the 9 state board of education based on the number of eligible students, the indi- 10 vidual award amount and availability of funds. 11 SECTION 6. That Section 33-4309, Idaho Code, be, and the same is hereby 12 amended to read as follows: 13 33-4309. REMITTANCE IN CASE OF DISCONTINUED ATTENDANCE. A grant may be 14 made annually for a period not to exceed an educational year. If the student 15 discontinues attendance before the end of any semester, quarter, term, or 16 equivalent, covered by the grant after receiving payment under this act, the 17 eligible postsecondary institution shall remit, up to the amount of any pay- 18 ments made under this grant, any prorated tuition, fees or room and board bal- 19 ances to the state board of education and the board of regents of the Univer- 20 sity of Idaho. The student shall be required to remit, up to the amount of any 21 other reasonable grant balances, such grant balances to the state board of 22 education and the board of regents of the University of Idaho. In the 23 event of extreme hardship as determined by the board of regents of the Univer- 24 sity of Idaho or the state board of education, a student may request waiver of 25 remittance. 26 SECTION 7. That Section 33-4313, Idaho Code, be, and the same is hereby 27 amended to read as follows: 28 33-4313. DUTIES OF BOARD. The state board of education and the board of 29 regents of the University of Idaho shall be responsible for: 30 (1) Supervision of the issuance of public information concerning the pro- 31 visions of this act. 32 (2) Determination of recipients of grants made pursuant to the provisions 33 of this act. 34 (3) Adoption of rulesand regulationsnecessary for process- 35 ing and approving applications from students. 36 (4) Determination of the procedures for payment of grants to recipients. 37 (5) Maintenance of fiscal controls and fund accounting procedures as may 38 be necessary to assure proper disbursement of funds. 39 (6) Submission of annual reports to the governor and legislature. 40 (7) Establishment of a reasonable and fair appeal procedure for those 41 students and institutions who may have been adversely affected by the applica- 42 tion procedures. 43 (8) Holding a public hearing, prior to the adoption of rules , 44and regulations,for the purpose of providing interested 45 parties with the opportunity of discussing such rules .and46regulations.47 (9) Acceptance of funds from public and private sources, and such 48 funds are hereby perpetually appropriated to the board of regents of the Uni- 49 versity of Idaho and the state board of education for expenditure consistent 50 with the purposes of this chapter. 6 1 2 (10) In the event funds from the master tobacco settlement agreement 3 are used for category B scholarships, the board of regents of the University 4 of Idaho and the state board of education are authorized to establish addi- 5 tional eligibility criteria for scholarship recipients.
STATEMENT OF PURPOSE RS 09135 IDAHO PROMISE SCHOLARSHIPS The purpose of this amendment is three fold. First, it changes the name of the Idaho State Scholarship Program to the Idaho Promise Scholarship Program. Second, it will encourage a larger number of our high school graduates to continue their education by providing deserving students a scholarship to help defray education costs. Third, this legislation will provide a powerful incentive for high shool students to finish high school and achieve good grades. About 60 percent of Idaho's four-year college students incur debt to go to college, and the average debt load upon graduation is approximately $15,000. The number of Idaho high school graduates enrolling in college each fall has been declining. Currently, only about 34 percent of high school graduates elect to continue their education the next academic year at a state public or private postsecondary institution. Thirteen percent of our high school graduates elect to continue their education out of state, so the total continuation rate of Idaho high school seniors is approximately 47 percent. The national average continuation rate for high school seniors is approximately 75 percent. Even though the resident fees to attend Idaho's public colleges are among the lowest in the nation, many of our students cannot afford to continue their education. The State stands to benefit greatly both socially and economically if more of our high school students are motivated to excel academically and to continue their education in an Idaho postsecondary institution. In 1992, the State of Georgia enacted the Hope Scholarship Program, which provides tuition and fees for four years to qualified students. Many Georgians consider the Hope Scholarship one of the best and most successful policy initiatives in the state's history. The Idaho Promise Scholarship proposal is modest by comparison to the Georgia Hope Scholarship. Under the proposal, high school graduates with a GPA of 3.0 or better, if enrolled in a state public or private postsecondary institution within two years of graduation, would receive a scholarship for up to two years of schooling. The scholarship would only partially cover fees and other costs, but it will provide an important incentive for students to continue their education. FISCAL NOTE There is no additional fiscal impact until the Category B Scholarship is funded. The future fiscal impact of this amended legislation will vary with the number of students eligible for Category B scholarships and electing to continue their education. About 16,500 seniors graduate from Idaho public and private high schools each year and nearly half have a 3.0 or better grade point average. If this legislative proposal is successful in motivating 60 percent of those students with a 3.0 or better average to continue their education at an Idaho public or private institution, approximately 4,950 students per year would be eligible for a scholarship. The award amount each year would be set by the State Board of Education and depend on the amount of public and private funding available. If, for example, this award is set at $500 per semester ($1000 per year) for the maximum two-year period, the cost would be $4,950,000 in the first year and $9,900,000 each year thereafter. A broadly based scholarship program of the type contained in this legislative proposal is a potential candidate for funding with Idaho Tobacco settlement funds. CONTACT: Senator Robert R. Lee 332-1349 STATEMENT OF PURPOSE/ FISCAL NOTE S1237