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CSSB 174(FIN): "An Act relating to the Alaska scholars program administered by the Board of Regents of the University of Alaska and to scholarship information; repealing provisions related to University of Alaska scholarships; relating to the AlaskAdvantage Education Grant Program; and relating to professional student exchange program availability; and relating to exemptions from the conditions for loan repayment under the medical education program."

00 CS FOR SENATE BILL NO. 174(FIN) 01 "An Act relating to the Alaska scholars program administered by the Board of Regents 02 of the University of Alaska and to scholarship information; repealing provisions related 03 to University of Alaska scholarships; relating to the AlaskAdvantage Education Grant 04 Program; and relating to professional student exchange program availability; and 05 relating to exemptions from the conditions for loan repayment under the medical 06 education program." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 14.43 is amended by adding new sections to read: 09 Sec. 14.43.011. Creation of the Alaska scholars program. The Alaska 10 scholars program is created as a scholarship program to be administered by the Board 11 of Regents of the University of Alaska. 12 Sec. 14.43.021. Scholarship eligibility. (a) To be eligible for a scholarship 13 from the Alaska scholars program, a student shall

01 (1) be a United States citizen or an alien lawfully admitted for 02 permanent residence in the United States; and 03 (2) be academically ranked in the top 15 percent of the student's 04 secondary class at the end of the student's junior year as determined by each qualified 05 high school in the state. 06 (b) To receive a scholarship disbursement from the Alaska scholars program, 07 the student shall 08 (1) have a high school diploma from a qualified high school in the 09 state; 10 (2) by the fall semester that begins within 16 months following the 11 student's high school graduation, be accepted to a certificate or degree program of the 12 University of Alaska; and 13 (3) be enrolled as a full-time student at the University of Alaska. 14 (c) To maintain eligibility for a scholarship disbursement under AS 14.43.026, 15 the student shall 16 (1) successfully complete at least 12 credit hours of courses of the 17 University of Alaska each semester; 18 (2) be in good standing in accordance with University of Alaska 19 institutional and program standards; and 20 (3) be making progress toward completion of a certificate or degree 21 program. 22 Sec. 14.43.026. Scholarship award. (a) The president of the University of 23 Alaska shall award to an eligible student under the Alaska scholars program a 24 scholarship of 25 (1) 100 percent of the cost of 15 credit hours of regular tuition at the 26 University of Alaska for a student who is in the top five percent of the student's 27 secondary class; 28 (2) 75 percent of the cost of 15 credit hours of regular tuition at the 29 University of Alaska for a student who is below the top five percent and in the top 10 30 percent of the student's secondary class; 31 (3) 50 percent of the cost of 15 credit hours of regular tuition at the

01 University of Alaska for a student who is below the top 10 percent and in the top 15 02 percent of the student's secondary class. 03 (b) Disbursements under this section may not be made for more than eight 04 semesters or for enrollment commencing more than five years after initial enrollment 05 at the University of Alaska. 06 (c) The award may be used only for tuition, fees, room, board, books, 07 supplies, necessary transportation, and other costs incurred for attendance at the 08 University of Alaska. 09 (d) The board of regents may adjust the amount of the scholarship award and 10 disbursement to reflect changes in the cost of education or the amount of funding 11 provided by the state. 12 Sec. 14.43.031. Financing; administration. (a) The Alaska scholars program 13 account is established, to be administered by the board of regents. The Alaska scholars 14 program is financed from the account. The account consists of money appropriated to 15 the account by the legislature, which may include appropriations from the endowment 16 trust fund established under AS 14.40.400, from income and earnings of the account, 17 and from any other source. Appropriations to the account do not lapse. 18 (b) The board of regents shall provide not less than $3,800,000 annually to 19 contribute to the awards provided under AS 14.43.026(a). 20 (c) The board of regents shall make information about the scholarship 21 program available in each school district in the state and at each campus of the 22 University of Alaska. 23 (d) The board of regents may adopt rules, orders, and plans to implement 24 AS 14.43.011 - 14.43.049. The rules may include provisions for discretionary 25 eligibility consideration and leaves of absence that are consistent with the purposes of 26 the Alaska scholars program. 27 Sec. 14.43.049. Definitions. In AS 14.43.011 - 14.43.049, 28 (1) "accredited" means a school that has been accredited by the 29 Northwest Association of Accredited Schools; 30 (2) "board of regents" means the Board of Regents of the University of 31 Alaska;

01 (3) "department" means the Department of Education and Early 02 Development; 03 (4) "qualified high school" means a public or private secondary school 04 located in the state that is authorized by the department to issue a diploma and that is 05 accredited by the Northwest Association of Schools and Colleges or registered with 06 the department; 07 (5) "scholarship program" means the Alaska scholars program. 08 * Sec. 2. AS 14.43.410 is amended by adding a new subsection to read: 09 (c) The commission shall annually distribute not less than $10,000,000 or, if 10 available funding from appropriations and other sources is less than that amount, the 11 full amount available in grant awards on behalf of eligible students under 12 AS 14.43.415. Payments shall be made directly to the postsecondary or lending 13 institution if feasible. If available funds are insufficient to fully fund grants to eligible 14 students, the commission shall distribute funds to eligible applicants on a pro rata 15 basis. 16 * Sec. 3. AS 14.43.415(a) is amended to read: 17 (a) For an applicant to be eligible for a grant under AS 14.43.400 - 14.43.420, 18 the applicant must be 19 (1) a resident of this state; 20 (2) enrolled or about to be enrolled 21 (A) at an institution [APPROVED TO PARTICIPATE IN 22 FEDERAL FINANCIAL AID PROGRAMS UNDER 20 U.S.C. 1070 - 1099c- 23 2, AS AMENDED,] located in this state that 24 (i) is approved to participate in federal financial aid 25 programs under 20 U.S.C. 1070 - 1099c-2, as amended; or 26 (ii) has been included on a list of certified career and 27 technical school programs approved and published by the 28 Department of Labor and Workforce Development; and 29 (B) on at least a half-time basis; and 30 (3) able to demonstrate financial need in accordance with standards for 31 determining financial need established by the commission under 20 U.S.C. 1070c-2, as

01 amended. 02 * Sec. 4. AS 14.43.415(b) is repealed and reenacted to read: 03 (b) The commission shall give an applicant eligible under (a) of this section 04 priority for a grant award if that applicant is, or is about to be, enrolled in a 05 postsecondary education program that prepares the applicant for employment in an 06 occupation or profession for which there is a severe shortage of trained individuals in 07 the state. In this subsection, 08 (1) "occupation or profession" means a job for which specific 09 postsecondary certification is a prerequisite for entry-level placement; 10 (2) "severe shortage" means a current or recurring job vacancy rate of 11 15 percent or greater, as determined by the Department of Labor and Workforce 12 Development or by another workforce data source determined reliable by the 13 commission. 14 * Sec. 5. AS 14.43.420(a) is amended to read: 15 (a) A grant made under AS 14.43.400 - 14.43.420 may not be in an amount 16 less than $1,000 [$500] nor more than $5,000 [$2,000] for each school year. 17 * Sec. 6. AS 14.43.420(c) is amended to read: 18 (c) A student may receive not more than a total of $20,000 [$8,000] in grants 19 awarded under AS 14.43.400 - 14.43.420. 20 * Sec. 7. AS 14.43.510(g) is amended to read: 21 (g) This section does not apply to scholarships received by a person under 22 AS 14.43.011 - 14.43.049 or 14.43.050 - 14.43.075, to free tuition and fees at a 23 state-supported educational institution authorized by AS 14.43.085, or to loans 24 received by a person under AS 14.43.091 - 14.43.160 [AS 14.43.010 - 14.43.160] or 25 14.43.710 - 14.43.750. 26 * Sec. 8. AS 14.43.930(b) is amended to read: 27 (b) By October 1 [SEPTEMBER 15] before each annual graduation, a 28 qualified high school in the state with a high school graduating class shall provide 29 (1) to the board a list of the names, dates of birth, telephone 30 numbers, and addresses of students in the graduating class who meet scholarship 31 eligibility requirements for each scholarship program; and

01 (2) a notice of eligibility for the scholarship program to those students 02 on the list prepared under (1) of this subsection. 03 * Sec. 9. AS 14.43.930(e) is amended to read: 04 (e) In this section, 05 (1) "board" means the Board of Regents of the University of Alaska; 06 (2) "qualified high school" has the meaning given in AS 14.43.049 07 [MEANS A PUBLIC HIGH SCHOOL, A HIGH SCHOOL ACCREDITED BY THE 08 NORTHWEST ASSOCIATION OF SCHOOLS AND COLLEGES, OR A HIGH 09 SCHOOL REGISTERED WITH THE DEPARTMENT]. 10 * Sec. 10. AS 14.44.025 is amended by adding a new subsection to read: 11 (b) Notwithstanding the funding priorities established under (a) of this section, 12 the Alaska Commission on Postsecondary Education shall provide adequate funding 13 for not fewer than five students to attend four-year programs in each of the following 14 fields: 15 (1) dentistry; 16 (2) optometry; and 17 (3) pharmacy. 18 * Sec. 11. AS 14.43.010, 14.43.015, 14.43.020, 14.43.025, and 14.43.030 are repealed. 19 * Sec. 12. The uncodified law of the State of Alaska is amended by adding a new section to 20 read: 21 APPLICABILITY. Section 1 of this Act applies to students who were in their senior 22 year of high school of a public or accredited school in the state with a high school graduating 23 class in the 2009 - 2010 or a subsequent school year. 24 * Sec. 13. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 REVISOR'S INSTRUCTION. The revisor of statutes is instructed to change the 27 heading of art. 1 of AS 14.43 from the "University of Alaska Scholarships for High School 28 Graduates" to "Alaska Scholars Program."