HB 46 -- General Assembly Scholarship Program

Sponsor:  Bland

This bill establishes state funded scholarships for the
incidental fees and other required fees at any public college or
university in the state for certain students.  Student
eligibility qualifications include residency, successful
completion of a core curriculum, high school graduation with a
minimum 2.5 GPA, extracurricular activity involvement, a
composite score on the ACT of at least 18 on the 1989 version or
its equivalent, and certain financial needs.  For purposes of
this scholarship program, students from families with annual
adjusted gross incomes of less than $25,000 are eligible for a
full scholarship, students from families with annual adjusted
gross incomes of between $25,000 and $35,000 are eligible for
partial scholarships on a sliding scale, and students whose
families have an annual adjusted gross income of more than
$35,000 are not eligible without a showing of hardship because
of large medical bills.

The bill sets requirements for a student to maintain the
scholarship.  These include participation in a work study
program.  The Coordinating Board for Higher Education is
designated to administer the program and make necessary rules
and regulations.

The scholarship program is funded by a 1% per annum earnings tax
on the salaries, wages, commissions and other compensation of
nonresidents, and on the net profits of associations,
businesses, and other activities conducted by nonresidents.
Organizations exempt from the earnings tax include religious,
charitable, scientific or educational associations or
corporations, civic groups organized to promote the social
welfare, and clubs organized for pleasure, recreation, or other
nonprofit purposes.  Moneys from the earnings tax are deposited
in the newly created General Assembly Scholarship Program Fund.
The Department of Revenue is authorized to establish rules and
regulations to collect and enforce the earnings tax.

The provisions of this bill are effective January 1, 1998.