HLS 17RS-743 ORIGINAL 2017 Regular Session HOUSE BILL NO. 390 BY REPRESENTATIVE GARY CARTER Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. TOPS: Provides relative to TOPS award amounts and for procedures for reducing award amounts in the event of insufficient funding 1 AN ACT 2To amend and reenact R.S. 17:5002(A), (B), and (D) and 5065(D) and to enact R.S. 3 17:5065(E), relative to the Taylor Opportunity Program for Students; to differentiate 4 award amounts for students based on certain financial and academic criteria; to 5 provide for procedures for reducing or eliminating a student's award based on such 6 criteria if the program is funded insufficiently; and to provide for related matters. 7Be it enacted by the Legislature of Louisiana: 8 Section 1. R.S. 17:5002(A), (B), and (D) and 5065(D) are hereby amended and 9reenacted and R.S. 17:5065(E) is hereby enacted to read as follows: 10 §5002. Awards and amounts 11 A.(1) A student shall be eligible for an Opportunity, Performance, Honors, 12 or TOPS-Tech Award based on his academic achievement. 13 (2) The award amount as provided for in Subsection B or D of this Section 14 to a student enrolled in any given institution shall be equal to the award amount paid 15 for a student at that institution during the 2016-2017 academic year unless the 16 legislature, by law, increases the award amount. shall be as provided in this 17 Paragraph. 18 (a) For an eligible student who meets at least one of the following criteria, 19 the award amount shall be the amount determined by the administering agency as Page 1 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 1 applicable to students who meet one of the following criteria attending the applicable 2 type of institution as provided in Subsections B and D of this Section: 3 (i) The student's expected family contribution is no greater than twice the 4 amount necessary to be eligible for a federal Pell Grant. 5 (ii) The student has earned a composite score on the 1990 version of the 6 ACT of thirty or higher or an equivalent concordant value on any enhanced or 7 revised version of such test or on the SAT. 8 (b) For all other eligible students, the award amount shall be the amount 9 determined by the administering agency as applicable to all other eligible students 10 attending the applicable type of institution as provided in Subsections B and D of this 11 Section for the 2017-2018 academic year. 12 B. Any Subject to the limitation in Paragraph (A)(2)(b) of this Section, a 13 student who is eligible for an Opportunity, Performance, or Honors Award pursuant 14 to this Chapter and who has enrolled: 15 (1) In any public college or university in this state, shall be awarded by the 16 state an amount determined by the administering agency to equal the tuition charged 17 by the public college or university during the 2016-2017 academic year. 18 (2) At any regionally accredited independent college or university in the state 19 which is a member of the Louisiana Association of Independent Colleges and 20 Universities to pursue an academic undergraduate degree, shall be awarded by the 21 state an amount to be determined by the administering agency to equal the weighted 22 average of amounts paid under this Section for students attending public colleges and 23 universities that offer academic undergraduate degrees at the baccalaureate level 24 during the 2016-2017 academic year. 25 (3) In a school that has a valid and current certificate of registration issued 26 by the Louisiana State Board of Cosmetology in accordance with law and that is 27 accredited by an accrediting organization recognized by the United States 28 Department of Education or in any proprietary school that has a valid and current 29 license issued by the Board of Regents in accordance with law and that is accredited Page 2 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 1 by an accrediting organization recognized by the United States Department of 2 Education, shall be awarded by the state an amount determined by the administering 3 agency to equal the weighted average of amounts paid under this Section for students 4 attending public colleges and universities during the 2016-2017 academic year and 5 who are enrolled in the permitted skill or occupational training, as may be applicable. 6 (4) In an out-of-state college or university that is specifically designed to 7 accommodate deaf and hard-of-hearing students under R.S. 17:5027(C), shall be 8 awarded an amount determined by the administering agency to equal the weighted 9 average of amounts paid under this Section for students attending Louisiana public 10 colleges and universities that offer academic undergraduate degrees during the 2016- 11 2017 academic year. 12 * * * 13 D.(1) Except as otherwise provided in this Subsection and subject to the 14 limitation in Paragraph (A)(2) of this Section, a student who is eligible for a 15 TOPS-Tech Award pursuant to this Chapter and who is enrolled: 16 (a) In an eligible public college or university that does not offer an academic 17 undergraduate degree at the baccalaureate level in those associate's degree or other 18 shorter-term training and education programs that are aligned to state workforce 19 priorities as determined by the Board of Regents and the Louisiana Workforce 20 Investment Council shall be awarded by the state an amount determined by the 21 administering agency to equal the tuition charged by the college or university during 22 the 2016-2017 academic year. If the Board of Regents and the Louisiana Workforce 23 Investment Council determine that a program is no longer aligned with those 24 priorities, an otherwise eligible student who had previously received an award and 25 enrolled in that program may continue to use the award. 26 (b) In an eligible college or university other than as provided for in 27 Subparagraph (a) of this Paragraph in those associate's degree or other shorter-term 28 training education programs that are aligned to state workforce priorities as 29 determined by the Board of Regents and the Louisiana Workforce Investment Page 3 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 1 Council shall be awarded by the state an amount determined by the administering 2 agency to equal the weighted average of amounts paid to for students attending an 3 eligible public college or university that does not offer an academic undergraduate 4 degree at the baccalaureate level during the 2016-2017 academic year. If the Board 5 of Regents and the Louisiana Workforce Investment Council determine that a 6 program is no longer aligned with those priorities, an otherwise eligible student who 7 had previously received an award and enrolled in that program may continue to use 8 the award. 9 (2) A student who graduated prior to the 2016-2017 school year, who is 10 eligible for a TOPS-Tech Award pursuant to this Chapter, and who is enrolled: 11 (a) In an eligible college or university that does not offer an academic 12 undergraduate degree at the baccalaureate level shall be awarded by the state an 13 amount determined by the administering agency to equal the tuition charged by the 14 college or university during the 2016-2017 academic year. 15 (b) In an eligible college or university other than as provided for in 16 Subparagraph (a) of this Paragraph shall be awarded by the state an amount 17 determined by the administering agency to equal the weighted average of amounts 18 paid to for students attending an eligible public college or university that does not 19 offer an academic undergraduate degree at the baccalaureate level during the 2016- 20 2017 academic year. 21 * * * 22 §5065. Funding 23 * * * 24 D.(1) In the event If the legislature appropriates insufficient money to fully 25 fund all awards made to students qualifying under the provisions of this Chapter, the 26 administering agency shall: 27 (1) equitably Eliminate awards for certain students or equitably reduce the 28 amount of the program award for each qualifying student certain students by an 29 equal percentage on a pro rata basis, as provided in this Subsection, so that every Page 4 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 1 student receives the award for which he qualifies and the total amount of all awards 2 in any award year does not exceed the funds available to the agency for this purpose, 3 either from legislative appropriation or other sources of funding. Such elimination 4 or reduction shall also apply, in like manner, to any additional amount awarded to 5 a student as provided in R.S. 17:5002(C), referred to in this Subsection as a 6 "stipend". 7 (2) Identify each qualifying student who meets at least one of the following 8 criteria, each of whom is deemed an "identified student" for purposes of this 9 Subsection: 10 (a) His expected family contribution is no greater than twice the amount 11 necessary to be eligible for a federal Pell Grant. 12 (b) He earned a composite score on the 1990 version of the ACT of thirty or 13 higher or an equivalent concordant value on any enhanced or revised version of such 14 test or on the SAT. 15 (3) Determine whether funds are sufficient to fully fund the award and 16 stipend, if applicable, of each identified student. The administering agency shall take 17 the following actions based on this determination: 18 (a) If funds are sufficient, the administering agency shall fully fund the 19 award and stipend, if applicable, of each identified student and subject the awards 20 of other qualifying students to the pro rata cut as provided in Paragraph (1) of this 21 Subsection. 22 (b) If funds are not sufficient, the administering agency shall subject the 23 award of each identified student to the pro rata cut as provided in Paragraph (1) of 24 this Subsection and shall not fund the awards or stipends of other qualifying students. 25 (2)E. If awards are reduced or eliminated pursuant to Subsection D of this 26 Section: 27 (1) If a student's award amount is less than the tuition established for the 28 public postsecondary institution in which he is enrolled, the institution may bill the 29 student for the difference between the student's award amount and the tuition Page 5 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 1 established for the institution, unless the institution grants a tuition waiver to the 2 student. 3 (3)(2) A student whose award is reduced or eliminated pursuant to this 4 Section shall not be required to accept payment of his award or to enroll or maintain 5 continuous enrollment in an eligible college or university during the time period for 6 which there is a funding shortfall and may defer acceptance of his award benefits. 7 If a student opts to defer acceptance of his award payment pursuant to this 8 Paragraph, all of the following shall apply: 9 (a) The student, upon enrollment or re-enrollment in an eligible college or 10 university, shall be eligible to receive all applicable award benefits for any remaining 11 semester or semesters, or the equivalent thereof, of his unused eligibility. 12 (b) The student shall meet all academic and other eligibility requirements 13 provided by this Chapter and by rule of the administering agency, except as 14 otherwise provided in this Subsection. 15 (c) The student shall exhaust all unused award eligibility within five years 16 of the initial reduction or elimination of his award pursuant to this Section, provided 17 that if. If the student requests and is granted an exception for cause to the 18 requirement to enroll or to maintain continuous enrollment in an eligible college or 19 university, the time period within which the student must exhaust his eligibility for 20 his award shall be extended by the amount of time for which he was granted an 21 exception. 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)] HB 390 Original 2017 Regular Session Gary Carter Abstract: Sets future TOPS award amounts at the level of 2017-2018 academic year award amounts but provides that this limit does not apply to students meeting certain financial or academic criteria; in the event of a funding shortfall, provides procedures for reducing or eliminating awards based on such criteria. Page 6 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 Taylor Opportunity Program for Students (TOPS), Generally Present law provides for the Taylor Opportunity Program for Students (TOPS) as a program of merit scholarships for students attending certain postsecondary education institutions who meet certain academic and other qualifications. Provides for Opportunity, Performance and Honors Awards (eight semesters) and TOPS-Tech Awards (two years). Establishment of Baseline Award Amounts Present law provides award amounts for Opportunity, Performance, and Honors awards: Opportunity, Performance, or Honors Award Institution Type Award Amount La. public college or university Tuition charged by institution La. nonpublic college or university Weighted average of amounts paid for students attending La. public colleges and universities that offer academic baccalaureate degrees Out-of-state college or university designed to accommodate deaf and hard- of-hearing students Weighted average of amounts paid for students attending La. public colleges and universities that offer academic undergraduate degrees Licensed cosmetology and proprietary schools Weighted average of amounts paid for students attending public colleges and universities for skill or occupational training Present law provides for award amounts for a TOPS-Tech award: TOPS-Tech Award Institution Type Award Amount Public college or university that does not offer an academic undergraduate degree at the baccalaureate level Tuition charged by institution Other eligible college or university Weighted average of amounts paid for students attending an eligible public college or university that does not offer an academic baccalaureate degree Present law "decouples" TOPS award amounts from future tuition increases by fixing the award amount for a given institution at the award amount paid for a student at that institution during the 2016-2017 academic year. (A pro rata cut reduced the awards for all students for the 2016-2017 academic year pursuant to present law; thus, the award amount paid during such academic year was a reduced amount.) Proposed law does the following: (1)"Recouples" TOPS awards to future tuition amounts for students whose expected family contribution (EFC) is no greater than twice the amount necessary to qualify for a Pell Grant or whose ACT score is 30 or higher. Page 7 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 17RS-743 ORIGINAL HB NO. 390 (2)TOPS awards and tuition increases remain decoupled for all other students, but proposed law changes the academic year to which a student's award amount is tied from 2016-2017 to 2017-2018. (3)Provides that the fixed amount is the actual award amount as defined by present law (see the tables above) and not the amount paid and provides that weighted averages are those of award amounts and not amounts paid. Funding Present law requires the legislature annually to appropriate funds sufficient to cover the costs of TOPS awards. Proposed law retains present law. Present law requires the administering agency, if the legislature appropriates insufficient money to fully fund all awards, to equitably reduce the amount of award for each qualifying student by an equal percentage on a pro rata basis (a "pro rata cut"), so that every student receives the award for which he qualifies and the total amount of all awards in any award year does not exceed the funds available. Proposed law requires identification of each student whose EFC is no greater than twice the amount necessary to qualify for a Pell Grant or whose ACT score is 30 or higher; such students are referred to as identified students. Provides for application of pro rata cuts to award amounts, as required by present law, as follows: (1)If funds are sufficient to fully fund awards for such identified students, other students are subject to pro rata cuts. (2)If funds are not sufficient to fully fund awards for such identified students, the identified students are subject to pro rata cuts and awards are eliminated for other students. (Amends R.S. 17:5002(A), (B), and (D) and 5065(D); Adds R.S. 17:5065(E)) Page 8 of 8 CODING: Words in struck through type are deletions from existing law; words underscored are additions.