Sec. 8. 20-A MRSA §11614, as amended by PL 1999, c. 233, §1, is further amended to read:

§11614. Determination of grants

Scholarships Grants to eligible students shall must be determined as follows, subject to the limitations set forth in section 11613.

1. Priority for awards of grants. Students with the lowest expected family contributions must be given priority over all other eligible students for the awards of scholarships grants.

2. Minimum amount. It is the intent of the Legislature that scholarships grants awarded under this chapter, except as provided in subsections 4, 5 and 6, may not be less than: $1,000 for students attending public institutions of higher education within the State; $1,250 for students attending private institutions of higher education within the State; $500 for students attending public institutions of higher education outside the State; and $1,000 for students attending private institutions of higher education outside the State. Amounts less than the minimum amounts required by this subsection may be awarded to meet needs as determined under section 11613. The authority may not grant awards of less than $200 to a full-time student. A scholarship grant received by a student under this chapter may not be applied only to reduce institutional or other grant aid to that student if such institutional or grant aid is subsequently granted to a student with demonstrated financial need.

4. Prorated grants. A scholarship grant recipient whose course load is reduced from full time shall is entitled to receive a scholarship grant prorated for that term of the recipient's enrollment.

5. Withdrawal. If a recipient of a scholarship grant withdraws from an institution and the student is entitled to a refund of tuition, fees or other charges, the institution shall make a refund payment directly to the authority in accordance with the institution's refund policy.

6. Safety net. Notwithstanding the provisions of this section, the authority shall may not allocate less in scholarship grants under this chapter for students attending the University of Maine System, the Maine Maritime Academy, the Vocational- Technical Institute Maine Technical College System and private post-secondary postsecondary institutions than was allocated for students in each of those institutions or groups of institutions of higher education in 1988-89.

7. Part-time students. The authority may allocate up to 5% of the student incentive scholarship grants Maine State Grants to eligible part-time students. The authority must establish eligibility criteria by rulemaking pursuant to the Maine Administrative Procedure Act.

Sec. 9. 20-A MRSA §§11615 and 11616, as enacted by PL 1989, c. 559, §10, are amended to read:

§11615. Publication of grant amounts

Prior to March 1st of each year, the authority shall publish scholarship grant amounts for the succeeding academic year.

§11616. Length of grant; period of study

1. Length of grant. A scholarship shall be grant is for a period not to exceed one academic year. A student may apply for a new scholarship grant for each year during the period required for completion of an eligible program of study being pursued by that student. A scholarship grant recipient who remains eligible shall must be considered in the succeeding award year.

2. Period of study. An eligible full- or part-time student may receive a scholarship grant for a period not to exceed 8 semesters or its equivalent for a full-time student and 16 semesters or 120 credit hours, whichever is completed first, for a part-time student. The period may be extended for not more than one additional academic year, if: 150% of the published length of the program in which the student is enrolled at the institution that the student is attending, measured in academic years, academic terms, credit hours attempted or clock hours completed, as appropriate.

A. The student is pursuing a course of study leading to a first degree in a program of study which is designed by the institution offering it to extend over 5 academic years; or

B. The student will be unable to complete a course of study within 4 academic years because of a requirement of the institution that the student enroll in a noncredit remedial course of study. "Noncredit remedial course of study" means a course of study for which no credit is given toward an academic degree and which is designed to increase the ability of the student to engage in an undergraduate course of study leading to that degree.

Sec. 10. 20-A MRSA §11617, sub-§1, as enacted by PL 1989, c. 559, §10, is amended to read:

1. Responsibility of authority. The authority shall administer the scholarship program Maine State Grant Program, including establishing and maintaining fund accounting and control procedures as required by state law or as necessary for the State to be eligible to receive federal assistance under the Federal Student Assistance Program, Higher Education Act of 1965, Title IV, Part A, Subpart 3, as amended, United States Code, Title 20, Sections 1070c-1, 1070c-2 and 1070c-3.

Sec. 11. 20-A MRSA §11631, as enacted by PL 1993, c. 465, §1, is amended to read:

§11631. University of Maine System Scholarship Fund

The University of Maine System Scholarship Fund is created and established as a nonlapsing fund under the jurisdiction and control of the Finance Authority of Maine. All revenues credited to this fund must be distributed as need-based scholarships for students attending the University of Maine System. These scholarships may only be awarded to those students who are residents of the State, who pay tuition and who otherwise meet the eligibility requirements for a scholarship under the student incentive scholarship program grant under the Maine State Grant Program under chapter 419-A. The Finance Authority of Maine shall award the scholarships and adopt rules for determining eligibility, terms and conditions for the scholarships. The fund may not be used for the costs of administering the scholarships.

SUMMARY

This bill amends the provisions of the student incentive scholarship program by renaming the program and by redefining the maximum length of the grant to a period equal to 150% of the

total amount of time the institution that the student is attending publishes as the ordinary length of the program in which the student is enrolled. The bill also clarifies language that restricted the use of grant funds from replacing institutional or other grant aid.