Amendment SSA1-SB228

LRBs0142/1

ARG&MES:wlj/ahe/kjf

2015 - 2016 LEGISLATURE

SENATE SUBSTITUTE AMENDMENT 1, TO SENATE BILL 228

January 11, 2016 - Offered by Senators Stroebel and Miller.

SB228-SSA1,1,9 An Act to repeal 39.41 (1m) (h) and 39.41 (1m) (i); to renumber and amend 39.41 (1m) (g); to amend 39.41 (1) (ag), 39.41 (1m) (a) (intro.), 39.41 (1m) (a) 1. to 6., 39.41 (1m) (b), 39.41 (1m) (c) 4., 39.41 (1m) (c) 5., 39.41 (1m) (e), 39.41 (1m) (j), 39.41 (1m) (m), 39.41 (2) (a), 39.41 (2) (b), 39.41 (2) (c), 39.41 (3) (a), 39.41 (3) (b) and 39.41 (5) (a) 1.; to repeal and recreate 39.41 (1m) (d); and to create 39.41 (1m) (c) 3m., 39.41 (1m) (g) 2., 39.41 (1m) (k), 39.41 (3m), 71.07 (5p) and 71.10 (4) (cs) of the statutes; relating to: academic excellence higher education scholarships and creating an individual income tax credit for certain academic scholarship recipients.

Analysis by the Legislative Reference Bureau

This substitute amendment establishes minimum eligibility criteria for, and changes the amount of, academic excellence scholarships awarded to high school seniors by the Higher Educational Aids Board and also changes part of the process for awarding these scholarships. The substitute amendment also creates a nonrefundable individual income tax credit for certain scholarship recipients.

Under current law, HEAB administers the Academic Excellence Higher Education Scholarship Program under which HEAB awards scholarships to certain scholars, designated on the basis of grade point average, who enroll, on a full-time basis, in a public or private institution of higher education in this state. Under the program, a scholarship recipient is exempt from up to $2,250 in tuition and fees for each academic year that the recipient is enrolled full time, maintains at least a 3.000 GPA, and makes satisfactory progress toward an associate or a bachelor's degree or a vocational diploma.

Currently, the scholarships may be awarded to seniors with the highest GPAs in each high school having at least 80 pupils. The number of scholarships available for each high school is scaled based on the enrollment of the high school, with one scholarship available for the senior with the highest GPA in a high school having 80 pupils and six scholarships available for the six seniors with the six highest GPAs in a high school having 2,500 or more pupils. For high schools having fewer than 80 pupils, there are ten additional scholarships available statewide for seniors with the highest GPAs.

This substitute amendment changes the amount of a scholarship for a scholarship recipient attending a public institution of higher education to 50 percent of the tuition and fees at that institution and changes the amount of a scholarship for a scholarship recipient attending a private institution of higher education to 50 percent of the tuition and fees charged a resident undergraduate student at the University of Wisconsin-Madison. As under current law, the amount of the scholarship is paid in equal parts by HEAB and by the institution, which must match HEAB's payment as a condition of participating in the scholarship program. The substitute amendment eliminates a provision restricting participation in the program to institutions that provided HEAB notice of their wish to participate by October 1, 1998.

The substitute amendment also requires a student to have a GPA of at least 3.5 and a score of at least 28 on the American College Test in order to qualify for a scholarship. The substitute amendment also makes changes to the process and procedure under which some scholarships are awarded. Among these changes, for a high school having at least 80 pupils, the scholarship recipient is designated by HEAB, rather than the school district of the public high school or governing body of the private or tribal high school in which the student is enrolled, based on a ranking of students provided by the school district or governing body to HEAB. In addition, if a scholarship that is authorized for a high school having at least 80 pupils is not awarded because the high school has an insufficient number of seniors who meet eligibility criteria, the scholarship is instead awarded by HEAB to a senior in another, similarly sized high school who meets eligibility criteria and has the highest ACT score.

The substitute amendment also creates a nonrefundable individual income tax credit for a scholarship recipient who graduates from an institution within the University of Wisconsin System, a technical college district school, or a private institution of higher education with a bachelor's degree, an associate degree, or vocational diploma and who resides in this state.

The amount for which an individual may claim a credit, which is defined as an "eligible amount," is an amount equal to 50 percent of all tuition and fees charged one full-time student by the institution or school attended by the scholarship recipient for the years in which the scholarship recipient received an academic excellence higher education scholarship or, in the case of a scholarship recipient who attended a private institution of higher education, an amount equal to 50 percent of the tuition and fees charged one full-time resident undergraduate student at the University of Wisconsin-Madison for the years in which the scholarship recipient received an academic excellence higher education scholarship.

In general, the credit may be claimed only for the seven taxable years following the claimant's graduation, and the claimant may claim only one-seventh of the eligible amount each year. An individual may delay the time when he or she is otherwise required to claim the credit if, immediately after graduation, the individual pursues an advanced degree. To claim the credit, a claimant must be a full-year resident of this state for the year to which the claim relates.

Because the credit is nonrefundable, no refund is paid if the amount of credit for which a claimant is eligible exceeds his or her tax liability.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB228-SSA1,1 Section 1. 39.41 (1) (ag) of the statutes is amended to read:

SB228-SSA1,3,3 39.41 (1) (ag) "Faculty of the high school" means the principal administrative unit of the faculty personnel of a high school designated under sub. (1m) (j).

SB228-SSA1,2 Section 2. 39.41 (1m) (a) (intro.) of the statutes is amended to read:

SB228-SSA1,3,9 39.41 (1m) (a) (intro.) Subject to par. (d), by February 25 of each school year, the school board of each school district operating one or more high schools and the governing body of for each public, private high school and of each, and tribal high school for which the executive secretary receives a list of rankings under par. (d) 1., the executive secretary shall:

SB228-SSA1,3 Section 3. 39.41 (1m) (a) 1. to 6. of the statutes are amended to read:

SB228-SSA1,4,2 39.41 (1m) (a) 1. For each high school with an enrollment of at least 80 pupils but less fewer than 500 pupils, designate the senior with the highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 28 on the American college test as a scholar.

SB228-SSA1,4,6 2. For each high school with an enrollment of at least 500 pupils but less fewer than 1,000 pupils, designate the 2 seniors with the 2 highest grade point averages in all subjects, but not less than 3.500 or the equivalent, and with scores of at least 28 on the American college test as scholars.

SB228-SSA1,4,10 3. For each high school with an enrollment of at least 1,000 pupils but less fewer than 1,500 pupils, designate the 3 seniors with the 3 highest grade point averages in all subjects, but not less than 3.500 or the equivalent, and with scores of at least 28 on the American college test as scholars.

SB228-SSA1,4,14 4. For each high school with an enrollment of at least 1,500 pupils but less fewer than 2,000 pupils, designate the 4 seniors with the 4 highest grade point averages in all subjects, but not less than 3.500 or the equivalent, and with scores of at least 28 on the American college test as scholars.

SB228-SSA1,4,18 5. For each high school with an enrollment of at least 2,000 or more pupils but fewer than 2,500 pupils, designate the 5 seniors with the 5 highest grade point averages in all subjects, but not less than 3.500 or the equivalent, and with scores of at least 28 on the American college test as scholars.

SB228-SSA1,4,22 6. For each high school with an enrollment of 2,500 or more pupils, designate the 6 seniors with the 6 highest grade point averages in all subjects , but not less than 3.500 or the equivalent, and with scores of at least 28 on the American college test as scholars.

SB228-SSA1,4 Section 4. 39.41 (1m) (b) of the statutes is amended to read:

SB228-SSA1,5,15 39.41 (1m) (b) Subject to par. (e), by February 25 of each school year, the school board of each school district operating one or more high schools and the governing body of each private high school and of each tribal high school may, for each high school with an enrollment of less fewer than 80 pupils, nominate the senior with the highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 28 on the American college test who may be designated as a scholar by the executive secretary under par. (c) 3. If the senior with the highest grade point average in all subjects does not have a score of at least 28 on the American college test, the school board or governing body shall nominate the senior with the next highest grade point average in all subjects, but not less than 3.500 or the equivalent, and with a score of at least 28 on the American college test for designation as a scholar. In addition, the school district or governing body may identify as an alternate nominee the senior who, after the nominee, has the next highest grade point average in all subjects, but not less than 3.500 or the equivalent, and a score of at least 28 on the American college test, and the executive secretary may designate as a scholar under par. (c) 3. an alternate nominee if the executive secretary receives fewer than 10 nominations under this paragraph of seniors who are not alternates.

SB228-SSA1,5 Section 5. 39.41 (1m) (c) 3m. of the statutes is created to read:

SB228-SSA1,5,18 39.41 (1m) (c) 3m. Subject to par. (k), designate the following number of scholars:

SB228-SSA1,5,20 a. From among seniors enrolled in high schools with an enrollment of at least 80 pupils but fewer than 500 pupils, the number calculated under par. (k) 1. a.

SB228-SSA1,5,22 b. From among seniors enrolled in high schools with an enrollment of at least 500 pupils but fewer than 1,000 pupils, the number calculated under par. (k) 1. b.

SB228-SSA1,5,24 c. From among seniors enrolled in high schools with an enrollment of at least 1,000 pupils but fewer than 1,500 pupils, the number calculated under par. (k) 1. c.

SB228-SSA1,6,2 d. From among seniors enrolled in high schools with an enrollment of at least 1,500 pupils but fewer than 2,000 pupils, the number calculated under par. (k) 1. d.

SB228-SSA1,6,4 e. From among seniors enrolled in high schools with an enrollment of at least 2,000 pupils but fewer than 2,500 pupils, the number calculated under par. (k) 1. e.

SB228-SSA1,6,6 f. From among seniors enrolled in high schools with an enrollment of 2,500 or more pupils, the number calculated under par. (k) 1. f.

SB228-SSA1,6 Section 6. 39.41 (1m) (c) 4. of the statutes is amended to read:

SB228-SSA1,6,13 39.41 (1m) (c) 4. For each public, private, or tribal high school with an enrollment of at least 80 pupils, notify the school board of the school district operating the public high school or the governing body of the private or tribal high school of the number of scholars to be requirement under par. (d) 1. to provide to the executive secretary a list of rankings of seniors who may be designated as scholars under par. (a) or (c) 3m.

SB228-SSA1,7 Section 7. 39.41 (1m) (c) 5. of the statutes is amended to read:

SB228-SSA1,6,20 39.41 (1m) (c) 5. For each public, private, or tribal high school with an enrollment of less fewer than 80 pupils, notify the school board of the school district operating the public high school or the governing body of the private or tribal high school that the school board or governing body may nominate a senior and an alternate under par. (b) who may be designated as a scholar by the executive secretary.

SB228-SSA1,8 Section 8. 39.41 (1m) (d) of the statutes is repealed and recreated to read:

SB228-SSA1,7,12 39.41 (1m) (d) 1. By February 25 of each school year, the school board of each school district operating one or more high schools and the governing body of each private high school and of each tribal high school shall identify, for each high school with an enrollment of at least 80 pupils, each senior who has a grade point average in all subjects of at least 3.500 or the equivalent and who has a score of at least 28 on the American college test. The school board or governing body shall create a list of all such seniors for each high school, ranking them, from highest to lowest, in order of grade point average but, in instances where 2 or more seniors have the same grade point average, ordering these seniors with the same grade point average according to their score on the American college test. In instances where 2 or more seniors have the same grade point average and the same score on the American college test, the faculty of the high school shall determine the relative ranking of these seniors and certify the order of ranking of these seniors to the school board or governing body. This list of rankings shall identify, on the list, each senior's grade point average and American college test score. The school board or governing body shall provide this list of rankings to the executive secretary by February 25 of each school year.

SB228-SSA1,7,19 2. From each high school for which the executive secretary receives a list of rankings under subd. 1., the executive secretary shall designate scholars under par. (a) according to the order of ranking of seniors on this list of rankings. After the applicable number of seniors to be designated as scholars under par. (a) have accepted the designation as a scholar as provided in subd. 3., the remaining seniors on this list of rankings shall be considered alternates and the executive secretary shall proceed as provided in par. (k) 2.

SB228-SSA1,8,15 3. Upon receiving notice of his or her designation as a scholar under par. (a), a senior shall give notice to the executive secretary that the senior accepts or declines the designation or shall request an extension of time to accept or decline the designation, which extension may be granted only in writing, upon a showing of good cause, and may not exceed 30 days. The senior shall give this notice accepting or declining the designation, or requesting an extension, in writing and within 10 days of the date of the executive secretary's notice of designation, or by May 1 of the school year in which the senior receives notice of the designation, whichever is later. If the senior requests an extension of time to accept or decline the designation and the request is granted, the senior shall give notice in writing that he or she accepts or declines the designation by the end of the extension period. If a senior does not give timely notice under this subdivision, the designation is revoked and the executive secretary shall designate as a scholar the next senior on the list of rankings under subd. 1. The executive secretary shall repeat this process as necessary until the executive secretary receives timely acceptance of the designation. The executive secretary shall follow this procedure until the executive secretary has designated scholars for the applicable number of seniors to be designated under par. (a) or until the executive secretary has exhausted the list of rankings of seniors. A senior designated as a scholar under par. (a) is not considered to be a designated scholar for purposes of sub. (2) (a) or (3) (a) unless the senior has accepted the designation as provided in this subdivision.

SB228-SSA1,8,21 4. For each high school, if the number of eligible seniors on the list of rankings under subd. 1. who accept designation as a scholar is less than the applicable number of seniors to be designated as scholars under par. (a), the executive secretary shall determine the number of scholars the executive secretary was authorized to designate under par. (a) but could not designate because of an insufficient number of eligible seniors who accept the designation.

SB228-SSA1,9 Section 9. 39.41 (1m) (e) of the statutes is amended to read:

SB228-SSA1,9,17 39.41 (1m) (e) If 2 or more seniors from the same high school of less fewer than 80 pupils have the same grade point average and, except for the limitation of one nominated senior and one alternate, are otherwise eligible for nomination under par. (b), the faculty of the high school shall select the senior who may be nominated by the school board of the school district operating the public high school or the governing body of the private or tribal high school for designation under par. (b) as a scholar by the executive secretary and shall also select an alternate nominee. If that the nominated senior or the alternate is designated as a scholar by the executive secretary, but does not qualify for a higher education scholarship under sub. (2) (a) or (3) (a), the faculty of the high school shall select, in order of priority, one or more of the remaining seniors with the same grade point average and with a score of at least 28 on the American college test for certification as a scholar or, if there is no remaining senior with the same grade point average and with a score of at least 28 on the American college test, one or more of the remaining seniors with the next highest grade point average, but not less than 3.800 3.500 or the equivalent, and with a score of at least 28 on the American college test for certification as a scholar, and the school board of the school district operating the high school or the governing body of the private or tribal high school shall certify to the board one or more of these seniors as eligible for a higher education scholarship as a scholar under sub. (2) (a) or (3) (a) until the scholarship may be awarded by the board.