NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.

(Parenthesis ( ) Indicate Revenue Decreases)

Relates to HB9, HB23, HB259, HB736, HB763, HB811, SB13, SB14, SB126 SB251, SB527, SB550,

SB669, SB691, SB729

SOURCES OF INFORMATION

Commission on Higher Education (CHE)

Division of Vocational Rehabilitation (DVR)

LFC Files

SUMMARY

Synopsis of Bill

This bill amends Section 21-1-4.3 to allow resident students earning a high school GPA of 3.0 or higher or who graduate in the top quarter of their class to receive a lottery tuition scholarship beginning their first college semester. The modifications also grant scholarships to part-time students having a physical or developmental disability and to students graduating in 1997 or later, but deferring college attendance provided that the students enroll no later than the Fall semester 2001. Finally, students enrolled at two-year colleges may obtain the scholarship for six rather than four semesters.

FISCAL IMPLICATIONS

While this bill does not make an appropriation, the impact of expanding eligibility will be to the lottery tuition fund. Without reliable data on the number of individuals serving in the armed services who would participate in this expansion, an estimate of $1,000.0 is provided to serve the additional lottery scholarship recipients.

According to the CHE, any change in eligibility will impact awards as current eligibility is expected to outpace anticipated net lottery revenues. The CHE expects to reduce current awards to 80% to 90% of tuition for future years.

CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP

This bill relates to House Bills 9, 23, 259, 736, 763, and 811; and Senate Bills 13, 14, 126, 251, 527, 550, 669, 691 and 729 all of which deal with redistribution of lottery net revenue or change eligibility for the lottery tuition scholarships.

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