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 1An Act to repeal 39.41 (1m) (h) and 39.41 (1m) (i); to renumber and amend
239.41 (1m) (g); to amend 39.41 (1) (ag), 39.41 (1m) (a) (intro.), 39.41 (1m) (a)
31. to 6., 39.41 (1m) (b), 39.41 (1m) (c) 4., 39.41 (1m) (c) 5., 39.41 (1m) (e), 39.41
4(1m) (j), 39.41 (1m) (m), 39.41 (2) (a), 39.41 (2) (b), 39.41 (2) (c), 39.41 (3) (a),
539.41 (3) (b) and 39.41 (5) (a) 1.; to repeal and recreate 39.41 (1m) (d); and to
6create
39.41 (1m) (c) 3m., 39.41 (1m) (g) 2., 39.41 (1m) (k), 39.41 (3m), 71.07 (5p)
7and 71.10 (4) (cs) of the statutes; relating to: academic excellence higher
8education scholarships and creating an individual income tax credit for certain
9academic 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 1Section 1. 39.41 (1) (ag) of the statutes is amended to read:
SB228-SSA1,3,32 39.41 (1) (ag) "Faculty of the high school" means the principal administrative
3unit of the faculty personnel of a high school designated under sub. (1m) (j).
SB228-SSA1,2 4Section 2. 39.41 (1m) (a) (intro.) of the statutes is amended to read:
SB228-SSA1,3,95 39.41 (1m) (a) (intro.) Subject to par. (d), by February 25 of each school year,
6the school board of each school district operating one or more high schools and the
7governing body of
for each public, private high school and of each, and tribal high
8school for which the executive secretary receives a list of rankings under par. (d) 1.,
9the executive secretary
shall:
SB228-SSA1,3 10Section 3. 39.41 (1m) (a) 1. to 6. of the statutes are amended to read:
SB228-SSA1,4,211 39.41 (1m) (a) 1. For each high school with an enrollment of at least 80 pupils
12but less fewer than 500 pupils, designate the senior with the highest grade point

1average in all subjects, but not less than 3.500 or the equivalent, and with a score of
2at least 28 on the American college test
as a scholar.
SB228-SSA1,4,63 2. For each high school with an enrollment of at least 500 pupils but less fewer
4than 1,000 pupils, designate the 2 seniors with the 2 highest grade point averages
5in all subjects, but not less than 3.500 or the equivalent, and with scores of at least
628 on the American college test
as scholars.
SB228-SSA1,4,107 3. For each high school with an enrollment of at least 1,000 pupils but less fewer
8than 1,500 pupils, designate the 3 seniors with the 3 highest grade point averages
9in all subjects, but not less than 3.500 or the equivalent, and with scores of at least
1028 on the American college test
as scholars.
SB228-SSA1,4,1411 4. For each high school with an enrollment of at least 1,500 pupils but less fewer
12than 2,000 pupils, designate the 4 seniors with the 4 highest grade point averages
13in all subjects, but not less than 3.500 or the equivalent, and with scores of at least
1428 on the American college test
as scholars.
SB228-SSA1,4,1815 5. For each high school with an enrollment of at least 2,000 or more pupils but
16fewer than 2,500 pupils
, designate the 5 seniors with the 5 highest grade point
17averages in all subjects, but not less than 3.500 or the equivalent, and with scores
18of at least 28 on the American college test
as scholars.
SB228-SSA1,4,2219 6. For each high school with an enrollment of 2,500 or more pupils, designate
20the 6 seniors with the 6 highest grade point averages in all subjects , but not less than
213.500 or the equivalent, and with scores of at least 28 on the American college test

22as scholars.
SB228-SSA1,4 23Section 4. 39.41 (1m) (b) of the statutes is amended to read:
SB228-SSA1,5,1524 39.41 (1m) (b) Subject to par. (e), by February 25 of each school year, the school
25board of each school district operating one or more high schools and the governing

1body of each private high school and of each tribal high school may, for each high
2school with an enrollment of less fewer than 80 pupils, nominate the senior with the
3highest grade point average in all subjects, but not less than 3.500 or the equivalent,
4and with a score of at least 28 on the American college test
who may be designated
5as a scholar by the executive secretary under par. (c) 3. If the senior with the highest
6grade point average in all subjects does not have a score of at least 28 on the American
7college test, the school board or governing body shall nominate the senior with the
8next highest grade point average in all subjects, but not less than 3.500 or the
9equivalent, and with a score of at least 28 on the American college test for designation
10as a scholar. In addition, the school district or governing body may identify as an
11alternate nominee the senior who, after the nominee, has the next highest grade
12point average in all subjects, but not less than 3.500 or the equivalent, and a score
13of at least 28 on the American college test, and the executive secretary may designate
14as a scholar under par. (c) 3. an alternate nominee if the executive secretary receives
15fewer than 10 nominations under this paragraph of seniors who are not alternates.
SB228-SSA1,5 16Section 5. 39.41 (1m) (c) 3m. of the statutes is created to read:
SB228-SSA1,5,1817 39.41 (1m) (c) 3m. Subject to par. (k), designate the following number of
18scholars:
SB228-SSA1,5,2019 a. From among seniors enrolled in high schools with an enrollment of at least
2080 pupils but fewer than 500 pupils, the number calculated under par. (k) 1. a.
SB228-SSA1,5,2221 b. From among seniors enrolled in high schools with an enrollment of at least
22500 pupils but fewer than 1,000 pupils, the number calculated under par. (k) 1. b.
SB228-SSA1,5,2423 c. From among seniors enrolled in high schools with an enrollment of at least
241,000 pupils but fewer than 1,500 pupils, the number calculated under par. (k) 1. c.
SB228-SSA1,6,2
1d. From among seniors enrolled in high schools with an enrollment of at least
21,500 pupils but fewer than 2,000 pupils, the number calculated under par. (k) 1. d.
SB228-SSA1,6,43 e. From among seniors enrolled in high schools with an enrollment of at least
42,000 pupils but fewer than 2,500 pupils, the number calculated under par. (k) 1. e.
SB228-SSA1,6,65 f. From among seniors enrolled in high schools with an enrollment of 2,500 or
6more pupils, the number calculated under par. (k) 1. f.
SB228-SSA1,6 7Section 6. 39.41 (1m) (c) 4. of the statutes is amended to read:
SB228-SSA1,6,138 39.41 (1m) (c) 4. For each public, private, or tribal high school with an
9enrollment of at least 80 pupils, notify the school board of the school district
10operating the public high school or the governing body of the private or tribal high
11school of the number of scholars to be requirement under par. (d) 1. to provide to the
12executive secretary a list of rankings of seniors who may be
designated as scholars
13under par. (a) or (c) 3m.
SB228-SSA1,7 14Section 7. 39.41 (1m) (c) 5. of the statutes is amended to read:
SB228-SSA1,6,2015 39.41 (1m) (c) 5. For each public, private, or tribal high school with an
16enrollment of less fewer than 80 pupils, notify the school board of the school district
17operating the public high school or the governing body of the private or tribal high
18school that the school board or governing body may nominate a senior and an
19alternate
under par. (b) who may be designated as a scholar by the executive
20secretary.
SB228-SSA1,8 21Section 8. 39.41 (1m) (d) of the statutes is repealed and recreated to read:
SB228-SSA1,7,1222 39.41 (1m) (d) 1. By February 25 of each school year, the school board of each
23school district operating one or more high schools and the governing body of each
24private high school and of each tribal high school shall identify, for each high school
25with an enrollment of at least 80 pupils, each senior who has a grade point average

1in all subjects of at least 3.500 or the equivalent and who has a score of at least 28
2on the American college test. The school board or governing body shall create a list
3of all such seniors for each high school, ranking them, from highest to lowest, in order
4of grade point average but, in instances where 2 or more seniors have the same grade
5point average, ordering these seniors with the same grade point average according
6to their score on the American college test. In instances where 2 or more seniors have
7the same grade point average and the same score on the American college test, the
8faculty of the high school shall determine the relative ranking of these seniors and
9certify the order of ranking of these seniors to the school board or governing body.
10This list of rankings shall identify, on the list, each senior's grade point average and
11American college test score. The school board or governing body shall provide this
12list of rankings to the executive secretary by February 25 of each school year.
SB228-SSA1,7,1913 2. From each high school for which the executive secretary receives a list of
14rankings under subd. 1., the executive secretary shall designate scholars under par.
15(a) according to the order of ranking of seniors on this list of rankings. After the
16applicable number of seniors to be designated as scholars under par. (a) have
17accepted the designation as a scholar as provided in subd. 3., the remaining seniors
18on this list of rankings shall be considered alternates and the executive secretary
19shall proceed as provided in par. (k) 2.
SB228-SSA1,8,1520 3. Upon receiving notice of his or her designation as a scholar under par. (a),
21a senior shall give notice to the executive secretary that the senior accepts or declines
22the designation or shall request an extension of time to accept or decline the
23designation, which extension may be granted only in writing, upon a showing of good
24cause, and may not exceed 30 days. The senior shall give this notice accepting or
25declining the designation, or requesting an extension, in writing and within 10 days

1of the date of the executive secretary's notice of designation, or by May 1 of the school
2year in which the senior receives notice of the designation, whichever is later. If the
3senior requests an extension of time to accept or decline the designation and the
4request is granted, the senior shall give notice in writing that he or she accepts or
5declines the designation by the end of the extension period. If a senior does not give
6timely notice under this subdivision, the designation is revoked and the executive
7secretary shall designate as a scholar the next senior on the list of rankings under
8subd. 1. The executive secretary shall repeat this process as necessary until the
9executive secretary receives timely acceptance of the designation. The executive
10secretary shall follow this procedure until the executive secretary has designated
11scholars for the applicable number of seniors to be designated under par. (a) or until
12the executive secretary has exhausted the list of rankings of seniors. A senior
13designated as a scholar under par. (a) is not considered to be a designated scholar for
14purposes of sub. (2) (a) or (3) (a) unless the senior has accepted the designation as
15provided in this subdivision.
SB228-SSA1,8,2116 4. For each high school, if the number of eligible seniors on the list of rankings
17under subd. 1. who accept designation as a scholar is less than the applicable number
18of seniors to be designated as scholars under par. (a), the executive secretary shall
19determine the number of scholars the executive secretary was authorized to
20designate under par. (a) but could not designate because of an insufficient number
21of eligible seniors who accept the designation.
SB228-SSA1,9 22Section 9. 39.41 (1m) (e) of the statutes is amended to read:
SB228-SSA1,9,1723 39.41 (1m) (e) If 2 or more seniors from the same high school of less fewer than
2480 pupils have the same grade point average and, except for the limitation of one
25nominated senior and one alternate, are otherwise eligible for nomination under par.

1(b), the faculty of the high school shall select the senior who may be nominated by
2the school board of the school district operating the public high school or the
3governing body of the private or tribal high school for designation under par. (b) as
4a scholar by the executive secretary and shall also select an alternate nominee. If
5that the nominated senior or the alternate is designated as a scholar by the executive
6secretary, but does not qualify for a higher education scholarship under sub. (2) (a)
7or (3) (a), the faculty of the high school shall select, in order of priority, one or more
8of the remaining seniors with the same grade point average and with a score of at
9least 28 on the American college test
for certification as a scholar or, if there is no
10remaining senior with the same grade point average and with a score of at least 28
11on the American college test
, one or more of the remaining seniors with the next
12highest grade point average, but not less than 3.800 3.500 or the equivalent, and with
13a score of at least 28 on the American college test
for certification as a scholar, and
14the school board of the school district operating the high school or the governing body
15of the private or tribal high school shall certify to the board one or more of these
16seniors as eligible for a higher education scholarship as a scholar under sub. (2) (a)
17or (3) (a) until the scholarship may be awarded by the board.
SB228-SSA1,10 18Section 10. 39.41 (1m) (g) of the statutes is renumbered 39.41 (1m) (g) 1. and
19amended to read:
SB228-SSA1,9,2520 39.41 (1m) (g) 1. Notwithstanding par. (a) and except as provided in subd. 2.,
21if a high school of at least 80 pupils closes or merges in the 1991-92 school year or
22in any school year thereafter, the school board of the school district operating the
23high school or the governing body of the private or tribal high school shall, subject
24to par. (d), for each of the 2 school years following the closure or merger, designate
25the same number of scholars from among the pupils enrolled in the high school at the

1time of closure or merger as the number of scholars designated for that high school
2in the school year the high school closed or merged. Any seniors designated under
3this paragraph shall be eligible for an original scholarship under this section.
SB228-SSA1,11 4Section 11. 39.41 (1m) (g) 2. of the statutes is created to read:
SB228-SSA1,10,65 39.41 (1m) (g) 2. Any designation under subd. 1. after the 2015-16 school year
6shall be made by the executive director.
SB228-SSA1,12 7Section 12. 39.41 (1m) (h) of the statutes is repealed.
SB228-SSA1,13 8Section 13. 39.41 (1m) (i) of the statutes is repealed.
SB228-SSA1,14 9Section 14. 39.41 (1m) (j) of the statutes is amended to read:
SB228-SSA1,10,1510 39.41 (1m) (j) In the event that If 2 or more seniors from the same high school
11of at least 80 pupils have the same grade point average and score on the American
12college test and
are otherwise eligible for designation under par. (a), the school board
13of the school district operating the high school or the governing body of the private
14or tribal high school shall make the designation of rank the seniors as determined
15and certified by
the faculty of the high school for purposes of under par. (d) or (i).
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