PRINTER'S NO. 144
No. 139 Session of 2001
INTRODUCED BY BOSCOLA, COSTA, O'PAKE AND STOUT, JANUARY 29, 2001
REFERRED TO EDUCATION, JANUARY 29, 2001
AN ACT
1 Providing for merit scholarships for persons entering a college
2 or university within this Commonwealth.
3 The General Assembly of the Commonwealth of Pennsylvania
4 hereby enacts as follows:
5 Section 1. Short title.
6 This act shall be known and may be cited as the Merit
7 Scholarship Grant Act.
8 Section 2. Purpose.
9 The purpose of this act is to reward educational excellence
10 and provide an incentive to Pennsylvania students to pursue
11 higher education.
12 Section 3. Definitions.
13 The following words and phrases when used in this act shall
14 have the meanings given to them in this section unless the
15 context clearly indicates otherwise:
16 "Agency." The Pennsylvania Higher Education Assistance
17 Agency (PHEAA).
18 "Approved educational institution." A postsecondary
1 educational institution located in this Commonwealth that is
2 authorized to provide approved courses of study and grant
3 degrees, and has been approved by the Pennsylvania Higher
4 Education Assistance Agency as an institution in which students
5 may enroll to participate in the Merit Scholarship Program.
6 "Program." The Merit Scholarship Program established under
7 section 4.
8 "Student." A school-age resident of this Commonwealth who
9 attends or is about to attend a secondary school or
10 postsecondary educational institution located in this
11 Commonwealth and whose annual family income does not exceed
12 $250,000.
13 "Work requirement." Postgraduate, full-time employment with
14 an employer located in this Commonwealth. The term does not
15 include a paid student internship, a paid fellowship, volunteer
16 service or employment before graduation.
17 Section 4. Merit Scholarship Program.
18 (a) Establishment of program.--There is hereby established
19 the Merit Scholarship Program within the agency.
20 (b) Issuance of grants.--The agency may provide scholarship
21 grants to not more than 1,000 students. If more than 1,000
22 students apply a lottery system shall be employed. The grant may
23 be issued only upon confirmation from an approved educational
24 institution that the student has enrolled full-time immediately
25 following their high school graduation. Scholarship grants shall
26 only be for the amount set forth in section 5(a) and shall only
27 be used for tuition and mandatory fees. This grant shall be
28 issued solely on the basis of merit and shall be granted without
29 regard to need.
30 (c) Eligibility.--To receive a scholarship grant under this
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1 section, a student shall meet all of the following requirements:
2 (1) Maintenance of Pennsylvania residency during the
3 term of the scholarship grants.
4 (2) Graduation within the top five percent from a high
5 school in this Commonwealth. The student must have attended a
6 public or private high school within this Commonwealth during
7 the junior and senior years.
8 (3) High school grade point average of 95%.
9 (4) Scholastic Achievement Test score must be no less
10 than 1400.
11 (5) Maintenance of a grade point average of 3.0 or
12 higher, on a scale of 4.0, or its equivalent, beginning with
13 the first semester of the freshman year and through the term
14 of the scholarship.
15 (6) Enter into a written agreement with the agency to:
16 (i) Satisfy all degree requirements for graduation
17 unless the agency determines that there are extenuating
18 circumstances.
19 (ii) Commence employment in this Commonwealth within
20 one year after completion of an undergraduate degree for
21 a period of two years.
22 (iii) Reimburse the Commonwealth all amounts
23 received under this act and interest thereon, as
24 determined by the agency, if the student fails to comply
25 with subparagraph (i).
26 (iv) Reimburse the Commonwealth 50% of the amount
27 received under this act and interest thereon, as
28 determined by the agency, if the student fails to comply
29 with subparagraph (ii).
30 (d) Application.--A student must apply to the agency for a
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1 scholarship grant as prescribed by the agency, to include the
2 provision of all information and documentation required by the
3 agency. The application of a student under 18 years of age must
4 include the signature of a parent or guardian. The application
5 must include a verified statement of grade point average from
6 the appropriate educational institution.
7 (e) Work requirement.--The work requirement under subsection
8 (c)(5)(ii) shall begin after the receipt of bachelor's degree
9 from an approved educational institution.
10 (f) Termination.--If a student who has received a
11 scholarship grant under this act terminates enrollment in the
12 approved educational institution during the academic year or
13 prior to completion, the approved education institution shall
14 notify the agency in writing and shall return all unused
15 portions of the scholarship grant. Returned amounts shall be
16 used to fund other scholarship grants under this act.
17 (g) Transfer.--A scholarship grant under this act may only
18 be transferrable to another educational institution if approved
19 by the agency.
20 (h) Limitation.--Scholarship grants awarded under the
21 program shall be limited to funds appropriated for that purpose.
22 First priority for awarding scholarship grants shall be given to
23 renewal applicants. Thereafter, scholarship grants shall be
24 awarded on a first-come, first-served basis.
25 Section 5. Merit scholarships.
26 (a) Amount of grants.--The agency shall award scholarship
27 grants under this act, which grants may be referred to as merit
28 scholarships, in the amount of $5,000 per academic year, to a
29 student enrolled full time in an approved educational
30 institution pursuing a bachelor's degree. The student shall take
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1 at least 12 semester hours, or its equivalent.
2 (b) Term of grant.--The scholarship grant shall be for a
3 maximum of four consecutive academic years.
4 (c) Exception.--If the student fails to meet the GPA
5 requirements during a semester and is denied scholarship grant
6 money, the student may reapply the following year for a second
7 chance grant and shall continue at the student's expense for the
8 next year. If the student earns 3.0 at the end of that year, the
9 student may reapply for the remaining years. If the student does
10 not obtain a GPA of 3.0 or higher within the year following
11 dismissal from the program, the student may not reapply.
12 Section 6. Administration.
13 (a) Verification.--The agency shall monitor and verify a
14 student's fulfillment of all the work requirements under this
15 act.
16 (b) Enforcement.--The agency shall enforce repayment of all
17 scholarship grants for a student who does not comply with the
18 provisions of this act, to include use of all lawful collection
19 procedures and the use of private collection agencies.
20 (c) Exclusion from taxation.--Scholarship grants received by
21 a student from the program shall not be considered taxable
22 income for purposes of Article III of the act of March 4, 1971
23 (P.L.6, No.2), known as the Tax Reform Code of 1971.
24 (d) Financial assistance.--Scholarship grants received by a
25 student from the program shall not be considered financial
26 assistance or appropriations to the approved education
27 institution.
28 (e) Appeals.--The provisions of this act shall be subject to
29 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of
30 Commonwealth agencies).
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1 (f) Regulations.--The agency shall adopt regulations and
2 procedures necessary to carry out the purposes of this act.
3 Section 7. Effective date.
4 This act shall take effect July 1, 2001, or immediately,
5 whichever is later.
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