HLS 14RS-1356 ORIGINAL Page 1 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Regular Session, 2014 HOUSE BILL NO. 1009 BY REPRESENTATIVE GREENE STUDENT/LOANS-SCHOLARSHP: Provides relative to Taylor Opportunity Program for Students award payments for first-time recipients qualifying on or after July 1, 2017 AN ACT1 To amend and reenact R.S. 17:3048.1(A)(2), (3), (4)(introductory paragraph) and (d)(ii), and2 (5)(b), (E)(1), (H)(3)(c), and (K)(3)(a)(ii) and (iii), and to enact R.S. 17:3048.1(Y),3 relative to the Taylor Opportunity Program for Students; to provide relative to award4 amounts; to provide relative to payment of awards; to provide an effective date; and5 to provide for related matters.6 Be it enacted by the Legislature of Louisiana:7 Section 1. R.S. 17:3048.1(A)(2), (3), (4)(introductory paragraph) and (d)(ii), and8 (5)(b), (E)(1), (H)(3)(c), and (K)(3)(a)(ii) and (iii) are hereby amended and reenacted and9 R.S. 17:3048.1(Y) is hereby enacted to read as follows: 10 ยง3048.1. Program awards; eligibility; amounts; limitations; funding; administration11 A.12 * * *13 (2)(a) Any student who applies for an Opportunity Award in accordance with14 Subparagraph (A)(1)(b), who enrolled in any public college or university in the state15 to pursue an academic undergraduate degree or skill or occupational training,16 including a vocational or technical education certificate or diploma program or a17 nonacademic undergraduate degree, and who meets the qualifications enumerated18 in Subparagraphs (A)(1)(a), (e), and (f), shall be awarded by the state an amount19 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 2 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. determined by the administering agency to equal the tuition charged by the public1 college or university attended in the state pursuant to Subsection Y of this Section.2 (b) For any student who meets such qualifications and applies for an3 Opportunity Award in accordance with Subparagraph (A)(1)(b), who has enrolled4 at any regionally accredited independent college or university in the state which is5 a member of the Louisiana Association of Independent Colleges and Universities to6 pursue an academic undergraduate degree or skill or occupational training, including7 a vocational or technical education certificate or diploma program or a nonacademic8 undergraduate degree, the state shall award an amount to be determined by the9 administering agency to equal the weighted average of amounts paid under this10 Section for students attending public colleges and universities that offer academic11 undergraduate degrees at the baccalaureate level or an amount to be determined by12 the administering agency to equal the weighted average of amounts paid under this13 Section for students attending public colleges and universities who are enrolled in14 the permitted skill or occupational training, as may be applicable pursuant to15 Subsection Y of this Section.16 (3) Any student who applies for a Performance or an Honors Award in17 accordance with Subparagraph (A)(1)(c) or (d) and who meets the qualifications18 enumerated in Subparagraphs (A)(1)(a), (e), and (f) shall have payments made on19 their behalf as follows:20 (a) For any student who qualifies to receive an Honors Award in accordance21 with Subparagraph (A)(1)(d) and who has enrolled at any public college or university22 in the state to pursue an academic undergraduate degree or to pursue skill or23 occupational training, including a vocational or technical education certificate or24 diploma program or a nonacademic undergraduate degree, the state shall award an25 amount determined by the administering agency to equal the tuition charged by the26 public college or university attended in the state, plus the sum of four hundred27 dollars per semester or eight hundred dollars per academic year pursuant to28 Subsection Y of this Section.29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 3 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) For any student who qualifies to receive an Honors Award in accordance1 with Subparagraph (A)(1)(d) and who has enrolled at any regionally accredited2 independent college or university in the state which is a member of the Louisiana3 Association of Independent Colleges and Universities to pursue an academic4 undergraduate degree or skill or occupational training, including a vocational or5 technical education certificate or diploma program or a nonacademic undergraduate6 degree, the state shall award an amount determined by the administering agency to7 equal the weighted average of the amounts awarded under this Section for students8 attending public colleges and universities that offer academic undergraduate degrees9 at the baccalaureate level or an amount to be determined by the administering agency10 to equal the weighted average of amounts paid under this Section for students11 attending public colleges and universities who are enrolled in the permitted skill or12 occupational training, as may be applicable, plus the sum of four hundred dollars per13 semester or eight hundred dollars per academic year pursuant to Subsection Y of this14 Section.15 (c) For any student who qualifies to receive a Performance Award in16 accordance with Subparagraph (A)(1)(c) and who has enrolled at any public college17 or university in the state to pursue an academic undergraduate degree or to pursue18 skill or occupational training, including a vocational or technical education19 certificate or diploma program or a nonacademic undergraduate degree, the state20 shall award an amount equal to the tuition charged by the public college or university21 attended in the state, plus the sum of two hundred dollars per semester or four22 hundred dollars per academic year determined pursuant to Subsection Y of this23 Section.24 (d) For any student who qualifies to receive a Performance Award in25 accordance with Subparagraph (A)(1)(c) and who has enrolled at any regionally26 accredited independent college or university in the state which is a member of the27 Louisiana Association of Independent Colleges and Universities to pursue an28 academic undergraduate degree or skill or occupational training, including a29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 4 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. vocational or technical education certificate or diploma program or a nonacademic1 undergraduate degree, the state shall award an amount determined by the2 administering agency to equal the weighted average of the amounts awarded under3 this Section for students attending public colleges and universities that offer4 academic undergraduate degrees at the baccalaureate level or an amount to be5 determined by the administering agency to equal the weighted average of amounts6 paid under this Section for students attending public colleges and universities who7 are enrolled in the permitted skill or occupational training, as may be applicable, plus8 the sum of two hundred dollars per semester or four hundred dollars per academic9 year pursuant to Subsection Y of this Section.10 (4) To maintain continued state payment of an amount equal to tuition and11 other amounts pursuant to an award under this Chapter once enrolled in college a12 student shall meet all of the following:13 * * *14 (d)15 * * *16 (ii) However, if at any time an otherwise eligible student receiving a17 Performance Award or an Honors Award in accordance with the provisions of this18 Chapter fails to have a cumulative grade point average of at least 3.00 on a 4.00 scale19 at the end of any academic year but has and continues to maintain a cumulative grade20 point average at least equal to that required by Subparagraph (c) of this Paragraph21 for continued participation by a recipient of an Opportunity Award, the student22 receiving a Performance Award or an Honors Award shall remain eligible for state23 payments but only in the amount provided for in Paragraph (A)(2) of this Section for24 a recipient of an Opportunity Award pursuant to Subsection Y of this Section. The25 provisions of this Item shall apply to all students who receive state payments26 pursuant to a Performance Award or an Honors Award, including all such students27 from the beginning of the program.28 * * *29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 5 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (5)1 * * *2 (b)(i) For any student who is the recipient of an Opportunity Award and who3 is eligible to use the award at an out-of-state nonpublic college or university pursuant4 to the provisions of Subparagraph (a) of this Paragraph, the award amount to pursue5 an academic undergraduate degree shall be an amount determined by the6 administering agency to equal the weighted average of amounts paid under this7 Section for students attending Louisiana public colleges and universities that offer8 academic undergraduate degrees pursuant to Subsection Y of this Section.9 (ii) For any student who is the recipient of a Performance Award and who10 is eligible to use the award at an out-of-state nonpublic college or university pursuant11 to the provisions of Subparagraph (a) of this Paragraph, the award amount to pursue12 an academic undergraduate degree shall be an amount determined by the13 administering agency to equal the weighted average of amounts paid under this14 Section for students attending Louisiana public colleges and universities that offer15 academic undergraduate degrees plus the sum of two hundred dollars per semester16 or four hundred dollars per academic year pursuant to Subsection Y of this Section.17 (iii) For any student who is the recipient of an Honors Award and who is18 eligible to use the award at an out-of-state nonpublic college or university pursuant19 to the provisions of Subparagraph (a) of this Paragraph, the award amount to pursue20 an academic undergraduate degree shall be an amount determined by the21 administering agency to equal the weighted average of amounts paid under this22 Section for students attending Louisiana public colleges and universities that offer23 academic undergraduate degrees plus the sum of four hundred dollars per semester24 or eight hundred dollars per academic year pursuant to Subsection Y of this Section.25 * * *26 E.(1) The legislature annually shall appropriate to the administering agency27 funds which, together with any other funds available, are sufficient to cover the costs28 required to be paid, both initial and continuing, for the coming academic year. All29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 6 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. such payments shall be made by the administering agency in accordance with the1 provisions of Subsection Y of this Section directly to the institution to which such2 payment is due after notice to the institution that the state shall pay, on behalf of the3 qualifying student, the applicable amount stipulated in this Section and after notice4 from the institution that the student has actually enrolled.5 * * *6 H.7 * * *8 (3)9 * * *10 (c) The amount of the award benefits relative to tuition as provided for in11 Subparagraph (a) of this Paragraph shall not exceed the amounts determined by the12 administering agency to equal the tuition charged for the postgraduate study or for13 undergraduate full-time enrollment charged by the highest cost public college14 university in the state, whichever amount is less be determined in accordance with15 the provisions of Subsection Y of this Section based on the award the student16 received for the academic period immediately prior to graduation.17 * * *18 K.19 * * *20 (3)(a)21 * * *22 (ii) If the student delays the acceptance of his award and the student, parent,23 or court-ordered custodian claims a federal income tax credit for money expended24 on educational tuition for the postsecondary education of the student, the25 administering agency shall pay directly to the student an amount equal to the amount26 of the award that would have been paid to the eligible institution on behalf of the27 student less the amount of the tax credit claimed plus as an incentive for claiming the28 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 7 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. credit and thus reducing the cost to the state of this program, an amount equal to1 twenty-five percent of the amount of the credit claimed, or the amount to be remitted2 to the student or legal guardian pursuant to Subsection (Y) of this Section plus an3 amount equal to twenty-five percent of the amount of the credit claimed, as4 applicable.5 (iii) If the student delays the acceptance of his award and the student, parent,6 or court-ordered custodian does not claim such a credit, then the amount of the award7 that would have been paid to the eligible institution on behalf of the student or the8 amount to be remitted to the student pursuant to Subsection (Y) of this Section, as9 applicable, shall be paid directly to the student.10 * * *11 Y.(1) Awards granted pursuant to the provisions of this Section to persons12 who commence full-time studies at a covered postsecondary education institution as13 a first-time freshman on or before June 30, 2017, shall be calculated as follows:14 (a) Opportunity Award. (i) A student qualifying for an award pursuant to15 Subparagraph (A)(2)(a) of this Section shall be awarded in accordance with16 Paragraph (3) of this Subsection by the state an amount determined by the17 administering agency to equal the tuition charged by the public college or university18 attended in the state.19 (ii) A student qualifying for an award pursuant to Subparagraph (A)(2)(b)20 or Item (A)(5)(b)(i) of this Section shall be awarded in accordance with Paragraph21 (3) of this Subsection an amount determined by the administering agency to equal22 the weighted average of amounts paid under this Section for students attending23 public colleges and universities that offer academic undergraduate degrees at the24 baccalaureate level or an amount determined by the administering agency to equal25 the weighted average of amounts paid under this Section for students attending26 public colleges and universities who are enrolled in the permitted skill or27 occupational training, as may be applicable.28 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 8 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (b) Performance Award. (i) A student qualifying for an award pursuant to1 Subparagraph (A)(3)(c) of this Section shall be awarded in accordance with2 Paragraph (3) of this Subsection an amount equal to the tuition charged by the public3 college or university attended in the state, plus the sum of two hundred dollars per4 semester or four hundred dollars per academic year.5 (ii) A student qualifying for an award pursuant to Subparagraph (A)(3)(d)6 or Item (A)(5)(b)(ii) of this Section shall be awarded in accordance with Paragraph7 (3) of this Subsection an amount determined by the administering agency to equal8 the weighted average of the amounts awarded under this Section for students9 attending public colleges and universities that offer academic undergraduate degrees10 at the baccalaureate level or an amount determined by the administering agency to11 equal the weighted average of amounts paid under this Section for students attending12 public colleges and universities who are enrolled in the permitted skill or13 occupational training, as may be applicable, plus the sum of two hundred dollars per14 semester or four hundred dollars per academic year.15 (c) Honors Award. (i) A student qualifying for an award pursuant to16 Subparagraph (A)(3)(a) of this Section shall be awarded an amount in accordance17 with Paragraph (3) of this Subsection equal to the tuition charged by the public18 college or university attended in the state.19 (ii) A student qualifying for an award pursuant to Subparagraph (A)(3)(b)20 or Item (A)(5)(b)(iii) of this Section shall be awarded in accordance with Paragraph21 (3) of this Subsection an amount determined by the administering agency to equal22 the weighted average of the amounts awarded under this Section for students23 attending public colleges and universities that offer academic undergraduate degrees24 at the baccalaureate level or an amount determined by the administering agency to25 equal the weighted average of amounts paid under this Section for students attending26 public colleges and universities who are enrolled in the permitted skill or27 occupational training, as may be applicable.28 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 9 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (2) Notwithstanding any provision of this Section to the contrary, awards1 granted pursuant to the provisions of this Section to persons who qualify for an2 award pursuant to the provisions of this Section the first time on and after July 1,3 2017, shall be calculated as follows:4 (a) Opportunity Award. (i) For a student qualifying for an award pursuant5 to Subparagraph (A)(2)(a) of this Section, prior to commencement of the academic6 period the student or the student's legal guardian shall pay an amount equal to7 seventy-five percent of the net tuition due to the institution attended by the student8 after application of any scholarships or other financial assistance received by the9 student for the payment of tuition. In accordance with Paragraph (3) of this10 Subsection, the administering agency shall pay directly to the institution to which11 payment is due an amount equal to the remaining twenty-five percent of such tuition.12 Upon completion of the academic period, if the student has maintained the academic13 criteria necessary to maintain the Opportunity Award, the student or the student's14 legal guardian, as applicable, shall receive from the administering agency an amount15 equal to the portion of tuition paid by such individual at the commencement of the16 academic period.17 (ii) For a student qualifying for an award pursuant to Subparagraph (A)(2)(b)18 or Item (A)(5)(b)(i) of this Section, upon successful completion of the academic19 period the student or the student's legal guardian, whichever paid the student's tuition20 for that academic period, shall receive from the administering agency an amount21 equal to seventy-five percent of the weighted average of amounts paid under this22 Section for students attending public colleges and universities that offer academic23 undergraduate degrees at the baccalaureate level or an amount to be determined by24 the administering agency to equal the weighted average of amounts paid under this25 Section for students attending public colleges and universities who are enrolled in26 the permitted skill or occupational training, as may be applicable.27 (b) Performance Award. (i) For a student qualifying for an award pursuant28 to Subparagraph (A)(3)(c) of this Section, prior to commencement of the academic29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 10 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. period, the student or the student's legal guardian shall pay an amount equal to fifty1 percent of the net tuition due to the institution attended by the student after2 application of any scholarships or other financial assistance received by the student3 for the payment of tuition. In accordance with Paragraph (3) of this Subsection, the4 administering agency shall pay directly to the institution to which payment is due an5 amount equal to the other fifty percent of such tuition. Upon completion of the6 academic period, if the student has maintained the academic criteria necessary to7 maintain the Performance Award, the student or the student's legal guardian, as8 applicable, shall receive from the administering agency an amount equal to the9 portion of tuition paid by such individual at the commencement of the academic10 period.11 (ii) For a student qualifying for an award pursuant to Subparagraph (A)(3)(d)12 or Item (A)(5)(b)(ii) of this Section, upon successful completion of the academic13 period the student or the student's legal guardian, whichever paid the student's tuition14 for that academic period, shall receive from the administering agency an amount15 equal to fifty percent of the weighted average of the amounts awarded under this16 Section for students attending public colleges and universities that offer academic17 undergraduate degrees at the baccalaureate level or an amount to be determined by18 the administering agency to equal the weighted average of amounts paid under this19 Section for students attending public colleges and universities who are enrolled in20 the permitted skill or occupational training, as may be applicable.21 (c) Honors Award. (i) For a student qualifying for an award pursuant to22 Subparagraph (A)(3)(a) of this Section, in accordance with Paragraph (3) of this23 Subsection, the administering agency shall pay directly to the institution to which24 payment is due an amount equal to one hundred percent of tuition charged by the25 institution attended by the award recipient.26 (ii) For a student qualifying for an award pursuant to Subparagraph (A)(3)(b)27 or Item (A)(5)(b)(iii) of this Section, prior to commencement of the academic period28 the administering agency shall transfer directly to the institution to which payment29 HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 11 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. is due an amount equal to one hundred percent of the weighted average of the1 amounts awarded under this Section for students attending public colleges and2 universities that offer academic undergraduate degrees at the baccalaureate level or3 an amount to be determined by the administering agency to equal the weighted4 average of amounts paid under this Section for students attending public colleges and5 universities who are enrolled in the permitted skill or occupational training, as may6 be applicable.7 (3)(a) A payment by the administering agency to an institution pursuant to8 the provisions of this Section shall be made directly to the institution to which such9 payment is due after notice to the institution that the state shall pay, on behalf of the10 qualifying student, the applicable amount stipulated in this Subsection and after11 notice from the institution that he student has actually enrolled.12 (b) A payment by the administering agency to a student or legal guardian of13 a student, pursuant to the provisions of Paragraph (2) of this Subsection shall be14 made within one month of receipt by the administering agency from the institution15 that the student has successfully maintained the academic qualifications for his16 award.17 Section 2. This Act shall become effective on July 1, 2014; if vetoed by the governor18 and subsequently approved by the legislature, this Act shall become effective on July 1,19 2014, or on the day following such approval by the legislature, whichever is later.20 DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] Greene HB No. 1009 Abstract: For students qualifying for aTaylor Opportunity Program for Students (TOPS) award for the first time on and after July 1, 2017, establishes a new payment schedule and amount for such awards. Present law establishes the TOPS program and provides for different scholarship awards within the program. Proposed law retains present law. HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 12 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. Present law provides for payment at the beginning of the academic period directly to the educational institution on behalf of the student in the following amounts for the following awards within TOPS: (1) Opportunity Award recipients enrolled in a public institution or vocational program receive full tuition. Opportunity Award recipients enrolled in an independent institution or vocational program receive an amount equal to the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools, as applicable. (2)Performance Award recipients enrolled in a public institution or vocational program receive full tuition paid plus $200 per semester or $400 per academic year. Performance Award recipients enrolled in an independent institution or vocational program receive an amount equal to the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools, as applicable, plus $200 per semester or $400 per academic year. (3)Honors Award recipients enrolled in a public institution or vocational program receive full tuition plus $400 per semester or $800 per academic year. Honors Award recipients enrolled in an independent institution or vocational program receive amount equal to the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools, as applicable, plus $400 per semester or $800 per academic year. Proposed law retains present law for students who qualify for such an award prior to July 1, 2017. Proposed law provides that for students who qualify for a TOPS award for the first time on and after July 1, 2017, instead of full tuition being paid on the student's behalf in the beginning of the academic period, amounts shall be paid as follows: (1)Opportunity Award recipients enrolled in a public institution or vocational program would be required to pay to the institution at the start of the academic period 75% of tuition costs remaining after application of any scholarships and other financial assistance for the payment of tuition received by the student. The TOPS program would pay the remaining 25% on behalf of the student. After completion of the academic period, and determination that the student maintained the qualifications necessary to keep the award, the TOPS administrator would send to the student (or parent who paid the tuition) an amount equal to the 75% paid at the commencement of the academic period. (2)Upon completion of an academic period and determination that the student maintained the qualifications necessary to keep the award, Opportunity Award recipients enrolled in an independent institution or vocational program (or the parent who paid the tuition for such program) would receive from the TOPS administrator an amount equal to 75% of the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools. (3)Performance Award recipients enrolled in a public institution or vocational program would be required to pay to the institution at the start of the academic period 50% of tuition costs remaining after application of any scholarships and other financial assistance for the payment of tuition received by the student. The TOPS program would pay the remaining 50% on behalf of the student. After completion of the academic period, and determination that the student maintained the qualifications necessary to keep the award, the TOPS administrator would send to the student (or parent who paid the tuition) an amount equal to the 50% paid at the commencement of the academic period. HLS 14RS-1356 ORIGINAL HB NO. 1009 Page 13 of 13 CODING: Words in struck through type are deletions from existing law; words underscored are additions. (4)Upon completion of an academic period and determination that the student maintained the qualifications necessary to keep the award, Performance Award recipients enrolled in an independent institution or vocational program (or the parent who paid the tuition for such program) would receive from the TOPS administrator an amount equal to 50% of the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools. (5)For Honors Award recipients enrolled in a public institution or vocational program, the TOPS program would pay 100% of tuition on behalf of the student. (6)For Honors Award recipients enrolled in an independent institution or vocational program, the TOPS program would pay 100% of the weighted average of amounts paid by TOPS for students attending public institutional or vocational schools, as applicable, on behalf of the student. Proposed law applies to all Opportunity, Performance, and Honors Award recipients qualifying for the first time for such an award on or after July 1, 2017. Proposed law further removes for such students the extra payments in addition to full tuition to recipients of Performance and Honors awards provided for in present law. Present law provides for payment by the administering agency directly to the institution to which payment is due after notice to the institution that the state shall pay, on behalf of the qualifying student, the applicable amount and after notice from the institution that the student has actually enrolled. Proposed law retains present law. Present law authorizes a student to defer receipt of a TOPS award until after the student or legal guardian files a federal income tax return. Proposed law retains present law. Present law provides that if the student delays receipt of the TOPS award and the student or legal guardian claims a federal income tax credit for money expended on educational tuition for the student, the administering agency shall pay directly to the student the amount of the award that would have been paid to the educational institution, plus an amount equal to 25% of the tax credit claimed. Proposed law retains present law and further provides that for students first enrolled on or after July 1, 2017, the administering agency shall pay directly to the student or legal guardian the amount paid by such individual pursuant to proposed law plus an amount equal to 25% of the tax credit claimed. Present law provides that if a tax credit is not claimed by the student or legal guardian, then the amount of the award that would have been paid to the eligible institution by TOPS on behalf of the student shall be paid directly to the student. Proposed law retains present law and further provides that for students first enrolled on or after July 1, 2017, the administering agency shall pay directly to the student or legal guardian the amount paid by such individual pursuant to proposed law. Present law authorizes the administering agency to provide by rule adopted pursuant to the Administrative Procedures Act for implementation of provisions of the TOPS program. Proposed law retains present law. Effective July 1, 2014. (Amends R.S. 17:3048.1(A)(2), (3), (4)(introductory paragraph) and (d)(ii), and (5)(b), (E)(1), (H)(3)(c), and (K)(3)(a)(ii) and (iii); Adds R.S. 17:3048.1(Y))