2000 Legislation
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SENATE BILL NO. 1385 – Idaho Promise Scholarship

SENATE BILL NO. 1385

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S1385..........................................................by EDUCATION
SCHOLARSHIPS - Amends existing law to create the Idaho Promise Scholarship
to further posteducational opportunities for Idaho students.
                                                                        
02/09    Senate intro - 1st rdg - to printing
02/10    Rpt prt - to Educ

Bill Text


 S1385
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1385
                                                                        
                                   BY EDUCATION 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 TO MAKE TECHNICAL CORRECTIONS;  AND  AMENDING
 13        SECTION  33-4313,  IDAHO  CODE, TO EXPAND THE DUTIES OF THE STATE BOARD OF
 14        EDUCATION AND THE BOARD OF REGENTS OF THE UNIVERSITY  OF  IDAHO  REGARDING
 15        SCHOLARSHIPS AND TO MAKE TECHNICAL CORRECTIONS; AND PROVIDING AN EFFECTIVE
 16        DATE.
                                                                        
 17    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 18        SECTION  1.  That  Section 33-4303, Idaho Code, be, and the same is hereby
 19    amended to read as follows:
                                                                        
 20        33-4303.  SHORT TITLE. This act shall be known and cited as the "State  of
 21    "Idaho Promise Scholarship Program."
                                                                        
 22        SECTION  2.  That  Section 33-4305, Idaho Code, be, and the same is hereby
 23    amended to read as follows:
                                                                        
 24        33-4305.  PURPOSES. The purpose of this act is:
 25        (1)  To establish a state scholarship program for the most talented  Idaho
 26    secondary  school  graduates  or the equivalent, consisting of category A stu-
 27    dents with outstanding academic qualifications and category B students with  a
 28    cumulative  grade point average for grades nine (9) through twelve (12) of 3.0
 29    or better or achieving an ACT score of 20 or better  or  who  become  eligible
 30    after  the  student's first semester  or who meet any other criteria as may be
 31    established by the state board of education and the board of  regents  of  the
 32    university  of  Idaho,  who will enroll in undergraduate nonreligious academic
 33    and professional-technical programs in eligible postsecondary institutions  in
 34    the state; and
 35        (2)  To designate the state board of education and the board of regents of
 36    the  Uuniversity  of Idaho as the administrative agency for the state scholar-
 37    ship program.
                                                                        
 38        SECTION 3.  That Section 33-4306, Idaho Code, be, and the same  is  hereby
 39    amended to read as follows:
                                                                        
                                           2
                                                                        
  1        33-4306.  DEFINITIONS.  As  used in this act, unless the context otherwise
  2    requires:
  3        (1)  "Eligible postsecondary institution" means an  educational  organiza-
  4    tion within the state as follows:
  5        (a)  "Public postsecondary institution" means a public postsecondary orga-
  6        nization governed or supervised by the state board of education, the board
  7        of regents of the Uuniversity of Idaho, a board of trustees of a community
  8        college  established  pursuant to the provisions of section 33-2106, Idaho
  9        Code, or the state board for professional-technical education.
 10        (b)  "Independent colleges and  universities"  means  or  any  educational
 11        organization which is operated privately and not for profit under the con-
 12        trol  of  an independent board and not directly controlled or administered
 13        by a public or political subdivision.  A  public  or  private  educational
 14        organization becomes eligible to participate in category B grant awards if
 15        the organization agrees to match awards  granted to each eligible category
 16        B student.
 17        (2)  "Educational  costs"  means student costs for tuition, fees, room and
 18    board, or expenses related to  reasonable  commuting,  books  and  such  other
 19    expenses  reasonably  related  to  attendance  at  a postsecondary educational
 20    institution.
 21        (3)  "Resident sStudent" means an individual resident student  as  defined
 22    in  section 33-3717 or 33-2110B, Idaho Code, enrolled full-time and carrying a
 23    sufficient  number  of  credit  hours,  or  their  equivalent,  to  secure  an
 24    individual's first degree, certificate, diploma  or  less,  toward  which  the
 25    individual is working, in no more than the number of semesters, or equivalent,
 26    normally  required by the eligible postsecondary institution in the program in
 27    which the individual is enrolled and provided that the  baccalaureate  degree,
 28    certificate,  diploma  or  lesser  program requires at least six (6) months or
 29    equivalent of consecutive attendance.  A student engaged in a  four  (4)  year
 30    baccalaureate program shall not be terminated from this scholarship program by
 31    having earned an intermediate degree, certificate or diploma.
 32        (4)  "Full-time  student"  means  an  individual who is enrolled in and is
 33    carrying a sufficient number of credit hours, or their equivalent;  to  secure
 34    an  individual's first degree, certificate, diploma, or less, toward which the
 35    individual is working in no more than the number of semesters, or  equivalent,
 36    normally  required by the postsecondary educational institution in the program
 37    in which the individual is enrolled.
 38        (5)  "Undergraduate student" means an individual  who  is  enrolled  in  a
 39    postsecondary educational institution which leads to or is directly creditable
 40    toward  the  individual's first baccalaureate degree, certificate, diploma, or
 41    less; provided such baccalaureate degree, certificate, diploma or less program
 42    requires at least six (6) months or equivalent of  consecutive  attendance.  A
 43    student  engaged  in a four (4) year baccalaureate program shall not be termi-
 44    nated by having earned an intermediate degree, certificate, or diploma.
 45        (6)  "Enrollment"  means  the  establishment   and   maintenance   of   an
 46    individual's  status  as  a  student  in an eligible postsecondary educational
 47    institution, regardless of the term used at the institution to  describe  such
 48    status.
 49        (75)  "Eligible  category  A  student" means any graduate of an accredited
 50    secondary school in the state of Idaho who declares his intention to  matricu-
 51    late in an eligible postsecondary institution in the state of Idaho during the
 52    educational year immediately following such graduation.
 53        (6)  "Eligible  category  B  student"  means any student, having completed
 54    secondary school or its equivalent in the state of Idaho and who enrolls as  a
 55    student  in  an eligible postsecondary institution in the state of Idaho prior
                                                                        
                                           3
                                                                        
  1    to reaching twenty-two (22) years of age. To maintain  eligibility  a  student
  2    must  achieve and maintain a 2.5 cumulative grade point average while enrolled
  3    in an eligible postsecondary institution. Students  meeting  the  requirements
  4    of  this  subsection  who  were  not eligible for a grant in the first term of
  5    postsecondary education and who achieve and maintain a  2.5  cumulative  grade
  6    point  average  based on a 4.0 system in an eligible postsecondary institution
  7    will become eligible for grant payments in subsequent school terms.
  8        (87)  "Grant" means an award to an eligible student for  matriculation  in
  9    an eligible postsecondary institution in the state of Idaho.
 10        (98)  "Educational  year"  means  the period from July 1 of a year through
 11    June 30 of the succeeding year.
 12        (109) "Competitive examination" means standardized examination(s)  measur-
 13    ing achievement administered annually on a voluntary basis on a specified date
 14    and at specified locations announced publicly.
 15        (110) "High school record," means for category A students, will be defined
 16    by  the state board of education and the board of regents of the university of
 17    Idaho and may include, but need not be limited to, an individual's rank in his
 18    secondary school class, grade point average, and  difficulty  of  course  load
 19    taken  as  certified  by  an  official  of  such  secondary school, and an the
 20    individual's secondary school deportment as evaluated  by  at  least  two  (2)
 21    officials of such secondary school.
 22        (11) "High  school  record,"  for category B students, shall be defined by
 23    the state board of education and the board of regents  of  the  university  of
 24    Idaho  and  may include, but need not be limited to, an individual's secondary
 25    school cumulative grade point average or a composite  score  on  the  American
 26    college test (ACT).
 27        (12) "Cumulative grade point average" is defined as a student's cumulative
 28    grade  point  average  for all courses taken in grades nine (9) through twelve
 29    (12) and calculated on a grade of A equals 4.0 points, a grade of B equals 3.0
 30    points, a grade of C equals 2.0 points, a grade of D equals 1.0  point  and  a
 31    grade of F equals 0.0 points.
                                                                        
 32        SECTION  4.  That  Section 33-4307, Idaho Code, be, and the same is hereby
 33    amended to read as follows:
                                                                        
 34        33-4307.  ELIGIBILITY -- MAXIMUM AMOUNTS -- CONDITIONS.  A  grant  may  be
 35    awarded  to an eligible student for matriculation at an eligible postsecondary
 36    educational institution in the state of Idaho if:
 37        (1)  The individual is accepted for enrollment as a full-time  undergradu-
 38    ate or professional-technical student, as follows:
 39        (a)  In  the  case  of  an individual beginning his first year or freshman
 40        year of postsecondary education, he has  satisfied  the  requirements  for
 41        admission and has enrolled in an eligible postsecondary institution.
 42        (b)  In  the  case  of an individual enrolled in an eligible postsecondary
 43        institution following the successful completion of the first term, he con-
 44        tinues to meet the requirements of this act and has maintained  such  high
 45        standards  of performance as may be required.  Provided that high academic
 46        standards are maintained in accordance with requirements of this  chapter,
 47        a  student  continues  to be eligible when transferring from one (1) major
 48        program to another.
 49        (c)  In the case of an individual transferring from one (1) eligible post-
 50        secondary institution in Idaho to another eligible postsecondary  institu-
 51        tion  in  Idaho,  he  continues  to  meet the requirements of this act, is
 52        accepted and enrolled at the eligible  postsecondary institution to  which
 53        he  is transferring, and has maintained such high standards of performance
                                                                        
                                           4
                                                                        
  1        as may be required.
  2        (2)  The grant for category A students is in amounts as follows:
  3        (a)  The grant payment to an individual per educational  year  for  atten-
  4        dance  on a full-time basis is not in excess of an amount determined annu-
  5        ally by the state board of education or in excess of the total educational
  6        costs as certified by an official of the eligible  postsecondary  institu-
  7        tion  to  be  attended by the individual receiving the grant, whichever is
  8        less.
  9        (b)  The total grant payments over a period of six (6) years to  an  indi-
 10        vidual  may  not  exceed  four  (4) annual grants or the total educational
 11        costs for four (4) educational years completed as certified by an official
 12        of the eligible postsecondary institution or institutions attended by  the
 13        individual receiving the grant, whichever is less.
 14        (3c)  The  individual  receiving  such  a grant signs an affidavit stating
 15        that the grant will be used for educational costs only.
 16        (4d)  The grant is awarded on the basis of  extraordinary  performance  in
 17        standardized, unweighted competitive examination and high school record.
 18        (5e)  The  individual  receiving the grant is not precluded from receiving
 19        other financial aids, awards, or scholarships, provided the total  of  the
 20        grant  and  such  other  financial  aids,  awards or scholarships does not
 21        exceed the total educational costs for attendance  at  an  eligible  post-
 22        secondary  institution  as  certified by an official of the eligible post-
 23        secondary institution to be  attended  by  the  individual  receiving  the
 24        grant.
 25        (6f)  Grant  payments shall correspond to academic terms, semesters, quar-
 26        ters or equivalent time periods at an eligible postsecondary  institution;
 27        in  no  instance may the entire amount of a grant for an educational year,
 28        as defined in section 33-4306(910), Idaho Code, be paid to or on behalf of
 29        such student in advance.
 30        (7g)  The individual has complied with such rules and regulations  as  may
 31        be necessary for the administration of this act.
 32        (3)  The grant for category B students is as follows:
 33        (a)  The  grant  payment  to an individual per educational year for atten-
 34        dance on a full-time basis is not in excess of an amount determined  annu-
 35        ally  by the state board of education and the board of regents of the uni-
 36        versity of Idaho and not to exceed one thousand dollars ($1,000) per  year
 37        including the required match.
 38        (b)  The  total grant payments over a period of four (4) years to an indi-
 39        vidual may not exceed two (2) annual grants.
 40        (c)  The individual receiving such a grant signs an affidavit stating that
 41        the grant will be used for educational costs only.
 42        (d)  The grant is awarded on the basis of a high school record  of  a  3.0
 43        grade  point  average  or an ACT composite score of 20 or better and other
 44        criteria as may be established by the state board  of  education  and  the
 45        board of regents of the university of Idaho.
 46        (e)  The  individual  receiving  the grant is not precluded from receiving
 47        other financial aid, awards or scholarships except that category A student
 48        award recipients are not eligible for category B awards.
 49        (f)  Grant payments shall correspond to academic terms,  semesters,  quar-
 50        ters  or equivalent time periods at an eligible postsecondary institution;
 51        in no instance may the entire amount of a grant for an  educational  year,
 52        as  defined  in section 33-4306(8), Idaho Code, be paid to or on behalf of
 53        such student in advance. The first grant payments pursuant to this section
 54        for category B students shall be made in the fall of 2001 or in the  first
 55        fall  academic  term following an appropriation and when moneys are avail-
                                                                        
                                           5
                                                                        
  1        able to implement the category B scholarship program   whichever  date  is
  2        later.
  3        (g)  The  individual  has complied with such rules as may be necessary for
  4        the administration of this chapter.
  5        (h)  All eligible postsecondary institutions are required to  match  cate-
  6        gory B grant awards and each year will report to the state board of educa-
  7        tion  and  the  board  of regents of the university of Idaho the number of
  8        students for each term receiving a grant award and the  number  of  awards
  9        that were matched by the institution.
                                                                        
 10        SECTION  5.  That  Section 33-4308, Idaho Code, be, and the same is hereby
 11    amended to read as follows:
                                                                        
 12        33-4308.  MAXIMUM NUMBER OF GRANTS. (1) The total number of grants to eli-
 13    gible category A  students shall not exceed one hundred (100) per year, nor  a
 14    cumulative  total  number  of  grants of four hundred (400) outstanding at any
 15    given time.
 16        (2)  The total number of grants to category B students will be  determined
 17    annually  by the state board of education and the board of regents of the uni-
 18    versity of Idaho based on the number  of  eligible  students,  the  individual
 19    award amount and the availability of funds.
                                                                        
 20        SECTION  6.  That  Section 33-4309, Idaho Code, be, and the same is hereby
 21    amended to read as follows:
                                                                        
 22        33-4309.  REMITTANCE IN CASE OF DISCONTINUED ATTENDANCE. A  grant  may  be
 23    made  annually  for a period not to exceed an educational year. If the student
 24    discontinues attendance before the end of  any  semester,  quarter,  term,  or
 25    equivalent,  covered  by the grant after receiving payment under this act, the
 26    eligible postsecondary institution shall remit, up to the amount of  any  pay-
 27    ments made under this grant, any prorated tuition, fees or room and board bal-
 28    ances  to  the  state  board  of  education  and  the  board of regents of the
 29    Uuniversity of Idaho. The student shall be required to remit, up to the amount
 30    of any other reasonable grant balances, such grant balances to the state board
 31    of education and the board of regents of the  Uuniversity  of  Idaho.  In  the
 32    event  of  extreme  hardship as determined by the state board of education and
 33    the board of regents of the university of Idaho, a student may request  waiver
 34    of remittance.
                                                                        
 35        SECTION  7.  That  Section 33-4313, Idaho Code, be, and the same is hereby
 36    amended to read as follows:
                                                                        
 37        33-4313.  DUTIES OF BOARD. The state board of education and the  board  of
 38    regents of the Uuniversity of Idaho shall be responsible for:
 39        (1)  Supervision of the issuance of public information concerning the pro-
 40    visions of this act.
 41        (2)  Determination of recipients of grants made pursuant to the provisions
 42    of this act.
 43        (3)  Adoption  of  rules  and  regulations  necessary  for  processing and
 44    approving applications from students.
 45        (4)  Determination of the procedures for payment of grants to recipients.
 46        (5)  Maintenance of fiscal controls and fund accounting procedures as  may
 47    be necessary to assure proper disbursement of funds.
 48        (6)  Submission of annual reports to the governor and legislature.
 49        (7)  Establishment  of  a  reasonable  and fair appeal procedure for those
                                                                        
                                           6
                                                                        
  1    students and institutions who may have been adversely affected by the applica-
  2    tion procedures.
  3        (8)  Holding a public hearing, prior to the adoption of rules, and regula-
  4    tions, for the purpose of providing interested parties with the opportunity of
  5    discussing such rules. and regulations.
  6        (9)  Acceptance of funds from public and private sources, and  such  funds
  7    may  be expended pursuant to appropriation to the state board of education and
  8    the board of regents of the university of  Idaho  for  expenditure  consistent
  9    with the purposes of this chapter.
 10        (10) In  the  event funds from the master tobacco settlement agreement are
 11    used for category B scholarships, the state board of education and  the  board
 12    of  regents  of  the  university of Idaho may establish additional eligibility
 13    criteria for scholarship recipients.
                                                                        
 14        SECTION 8.  This act shall be in full force and effect on and after  Janu-
 15    ary 1, 2001.

Statement of Purpose / Fiscal Impact


          
                     STATEMENT OF PURPOSE 
                          RS#409828C2 

     The purpose of this legislation is four fold. First it changes the name of the Idaho State Scholarship
Program to the Idaho Promise Scholarship Program. Second, by holding out the promise of scholarships, it will
encourage a larger number of secondary school students to stay in school, do better in school, and graduate. Third, it
will encourage students to continue their education beyond secondary school. Fourth, it will aid students by helping
defray education costs. 
     Currently only 49% of Idaho secondary school graduates continue their education. The national education
continuation rate is over 65% and some states achieve 80%. Idaho's low continuation rate portends serious problems
because without further education these graduates are practically assured of low incomes and, therefore, future
reliance on government Medicaid, food stamps and other welfare programs. 
     In addition, 13% of Idaho graduates elect to continue their education out of state. A Promise Scholarship
Program can give incentives for some of these students to seek their higher education at Idaho institutions. 
     In 1992, the State of Georgia enacted the Hope Scholarship Program, which provides tuition and fees for
four years to qualified students. It is financed by proceeds from their state lottery. Many Georgians consider the
Hope Scholarship Program one of the most successful policy initiatives in their state's history. 
     The Idaho Promise Scholarship is modest by comparison. Under the proposal, secondary school graduates
with a 3.0 cumulative GPA or better would receive a limited scholarship for up to two years of schooling in a state
public or private post-secondary institution. Provision is also made for home schooled students and "late bloomers"
if they achieve an ACT score of 20 or 2.5 GPA or better in their first term of post-secondary education. The
scholarship would only partially cover fees and other costs, but will provide an incentive for students to stay in
school, do well in school and continue their education. 
     The state stands to benefit greatly both socially and economically if more of our secondary students are
motivated to excel academically and to continue their education in an Idaho post-secondary institution. 


FISCAL IMPACT 

     There is no fiscal impact until the Promise Scholarship Program is funded. The passage of this legislation
makes it possible to seek private donations and public appropriations.
     It is estimated that about 5,000 students per year would be eligible for a scholarship.  The legislation
provides for a maximum award of $1,000 per year for two years, including a match from state post-secondary
educational institutions.  Therefore, if the Promise Scholarship Program is fully funded in the future, $5,000,000
will be required the first year with $2,500,000 being provided from state appropriations.  The second year
$10,000,000 would be required with $5,000,000 being provided from state appropriations.
     The award amount each year will be set by the State Board of education, depending upon the amount of
public and private funds made available.  The broadly based Promise Scholarship Program is a potential candidate
for funding with Idaho Tobacco Settlement Funds.

Contact
          Name:     Senator Robert Lee
Agency:  
          Phone:    332-1328

                                                       STATEMENT OF PURPOSE/FISCAL IMPACT                     S 138