Connecticut Seal

General Assembly

 

Governor's Bill No. 844

January Session, 2013

 

LCO No. 3031

 

*03031__________*

Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT

 

Introduced by:

 

SEN. WILLIAMS, 29th Dist.

SEN. LOONEY, 11th Dist.

REP. SHARKEY, 88th Dist.

REP. ARESIMOWICZ, 30th Dist.

 

AN ACT IMPLEMENTING THE BUDGET RECOMMENDATIONS OF THE GOVERNOR CONCERNING HIGHER EDUCATION.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (b) of section 10a-99 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(b) The Board of Trustees of the Connecticut State University System shall establish and administer a fund to be known as the Connecticut State University System Operating Fund. Appropriations from general revenues of the state and upon request by the Connecticut State University System and with the annual review and approval by the Secretary of the Office of Policy and Management, the amount of the appropriations [for fringe benefits pursuant to subsection (a) of section 4-73,] shall be transferred from the State Comptroller and all tuition revenue received by the Connecticut State University System in accordance with the provisions of subsection (a) of this section shall be deposited in said fund. Income from student fees or related charges, the proceeds of auxiliary activities and business enterprises, gifts and donations, federal funds and grants, subject to the provisions of sections 10a-98 to 10a-98g, inclusive, and all receipts derived from the conduct by a state university of its education extension program and its summer school session shall be credited to said fund but shall be allocated to the central office and institutional operating accounts which shall be established and maintained for the central office and each state university. Any such gifts and donations, federal funds and grants for purposes of research shall be allocated to separate accounts within such central office and institutional operating accounts. If the Secretary of the Office of Policy and Management disapproves such transfer, he may require the amount of the appropriation for operating expenses to be used for personal services [and fringe benefits] to be excluded from said fund. The State Treasurer shall review and approve the transfer prior to such request by the university. The board of trustees shall establish an equitable policy for allocation of appropriations from general revenues of the state [, fringe benefits transferred from the State Comptroller] and tuition revenue deposited in the Connecticut State University System Operating Fund. At the beginning of each quarter of the fiscal year, the board shall allocate and transfer, in accordance with said policy, moneys for expenditure in such institutional operating accounts, exclusive of amounts retained for central office operations and reasonable reserves for future distribution. All costs of waiving or remitting tuition pursuant to subsection (f) of this section shall be charged to the Connecticut State University System Operating Fund. Repairs, alterations or additions to facilities supported by the Connecticut State University System Operating Fund and costing one million dollars or more shall require the approval of the General Assembly, or when the General Assembly is not in session, of the Finance Advisory Committee. Any balance of receipts above expenditures shall remain in said fund, except such sums as may be required for deposit into a debt service fund or the General Fund for further payment by the Treasurer of debt service on general obligation bonds of the state issued for purposes of the Connecticut State University System.

Sec. 2. Subsection (b) of section 10a-105 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(b) The Board of Trustees of The University of Connecticut shall establish and administer a fund to be known as The University of Connecticut Operating Fund, and in addition, may establish a Special External Gift Fund, and an endowment fund, as defined in section 10a-109c, and such other funds as may be established pursuant to subdivision (13) of subsection (a) of section 10a-109d. Appropriations from general revenues of the state and, upon request by the university and with an annual review and approval by the Secretary of the Office of Policy and Management, the amount of the appropriations for [fringe benefits and] workers' compensation applicable to the university pursuant to subsection (a) of section 4-73, shall be transferred from the Comptroller, and all tuition revenue received by the university in accordance with the provisions of subsection (a) of this section, income from student fees or related charges, the proceeds of auxiliary activities and business enterprises, gifts and donations, federal funds and grants for purposes other than research and all receipts derived from the conduct by The University of Connecticut of its education extension program and its summer school session, except funds received by The University of Connecticut Health Center, shall be deposited in said operating fund. If the Secretary of the Office of Policy and Management disapproves such transfer, he may require the amount of the appropriation for operating expenses to be used for personal services [and fringe benefits] to be excluded from said fund. The State Treasurer shall review and approve the transfer prior to such request by the university. All costs of waiving or remitting tuition pursuant to subsection (g) of this section, except the cost of waiving or remitting tuition for students enrolled in the schools of medicine or dental medicine, shall be charged to said fund. Repairs, alterations or additions to facilities supported by said fund costing one million dollars or more shall require the approval of the General Assembly, or when the General Assembly is not in session, of the Finance Advisory Committee. Any balance of receipts above expenditures shall remain in said fund, except such sums as may be required for deposit into a debt service fund or the General Fund for further payment by the Treasurer of debt service on general obligation bonds of the state issued for purposes of The University of Connecticut.

Sec. 3. Subsection (a) of section 10a-1d of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) There is established an Office of Higher Education. [Such office shall be within the Board of Regents for Higher Education for administrative purposes only.] The Office of Higher Education shall administer the programs set forth in sections 10-19g, 10-155d, 10a-10a, 10a-11, 10a-11a, 10a-17d, 10a-34 to 10a-34f, inclusive, as amended by this act, 10a-35, [10a-36 to 10a-42g, inclusive, 10a-164a,] and 10a-166. [and 10a-168a to 10a-170, inclusive.] The State Board of Education shall be responsible for approving any action taken pursuant to sections 10a-34 to 10a-34f, inclusive, as amended by this act.

Sec. 4. Subsection (a) of section 10a-1b of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) The Governor shall appoint an interim president of the Board of Regents for Higher Education who shall serve as president until a successor is appointed and confirmed. On or after January 1, 2012, the president of the Board of Regents for Higher Education shall be recommended by the board and appointed by the Governor in accordance with the provisions of sections 4-5, [to] 4-7 and 4-8 [, inclusive,] with the powers and duties prescribed by said sections. The board shall establish the term of service for the president. The president shall (1) have the responsibility for implementing the policies and directives of the board and any additional responsibilities as the board may prescribe, (2) implement the goals identified and recommendations made pursuant to section 10a-11b, (3) build interdependent support among the Connecticut State University System, the regional community-technical college system and Charter Oak State College, (4) balance central authority with institutional differentiation, autonomy and creativity, and (5) facilitate cooperation and synergy among the Connecticut State University System, the regional community-technical college system and Charter Oak State College. Said president may designate an alternate to serve as a member of any commission, foundation or committee upon which the general statutes require said president to serve. Such designee may vote on behalf of said president. There shall be an executive staff responsible for the operation of the Board of Regents for Higher Education. The executive staff shall be under the direction of the president of the Board of Regents for Higher Education, who shall be the chief executive officer of the Board of Regents for Higher Education and shall administer, coordinate and supervise the activities of the board in accordance with the policies established by the board.

Sec. 5. Subsections (a) to (c), inclusive, of section 10a-1e of the general statutes are repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) Wherever the term "Board of Governors of Higher Education" is used or referred to in the following sections of the general statutes, the term "Board of Regents for Higher Education" shall be substituted in lieu thereof: 3-22e, 4-38c, 4-67x, 4-89, as amended by this act, 4-186, 4d-80, 4d-82, 5-160, 5-177, 10-16p, 10-19, 10-145a, 10-145b, 10-145m, 10-145n, 10-145p, 10-155e, 10-155l, 10-183n, 10-220a, 10-235, 10a-6, 10a-7, 10a-10, 10a-12b, 10a-13, 10a-16, 10a-19i, 10a-20a, 10a-22, 10a-25j, 10a-25o, 10a-25p, 10a-31, 10a-33, [10a-36, 10a-42b,] 10a-43, 10a-44b, 10a-45, 10a-46, 10a-48, 10a-48b, 10a-49, 10a-51, 10a-54, 10a-66, 10a-74, 10a-78, 10a-132a, 10a-149, 10a-161, 10a-162a, 10a-163, 10a-163b, 10a-166, 10a-168, [10a-169,] 10a-170b, 10a-170d, 10a-170l, 10a-170m, 10a-170u, 10a-170v, 10a-170w, 10a-171, 10a-203, 10a-210, 12-407, 19a-75, 20-37a, 20-206bb, 30-20a and 52-279.

(b) Wherever the term "Department of Higher Education" is used or referred to in the following sections of the general statutes, the term "Board of Regents for Higher Education" shall be substituted in lieu thereof: 4-89, as amended by this act, 4-124x, 4-124y, 4-124aa, 4a-11, 4d-82, 5-155a, 5-198, 10-8c, 10-76i, 10-145b, 10-221a, 10a-1, 10a-8b, 10a-8c, 10a-10, 10a-12, 10a-14, 10a-17, 10a-19c, 10a-19e, 10a-19f, [10a-19g,] 10a-19i, 10a-25, 10a-25n, 10a-48, 10a-54, 10a-55g, 10a-65, 10a-77a, 10a-99a, 10a-109i, 10a-151, 10a-161b, 10a-163, 10a-163b, 10a-169a, 10a-169b, 10a-170a, 10a-170e, 10a-170i, 10a-170l, 10a-170r, 10a-170t, 10a-170u, 11-1, 17a-52, 17a-215c and 20-206bb.

(c) Wherever the term "Commissioner of Higher Education" is used or referred to in the following sections of the general statutes, the term "president of the Board of Regents for Higher Education" shall be substituted in lieu thereof: 3-22e, 4-124x, 4-124y, 4-124aa, 10-1, 10-16p, 10-16z, 10a-19d, 10a-19e, 10a-19f, [10a-19h,] 10a-48, 10a-48b, 10a-55a, 10a-77a, 10a-99a, 10a-109i, 10a-112g, 10a-144, 10a-150, 10a-150b, 10a-161a, 10a-161b, 10a-163, 10a-169a, 10a-169b, 10a-170c, 10a-170d, 10a-170i, 10a-170k, 10a-170s, 10a-170t, 10a-203, 10a-224, 12-413b, 17a-52, 32-4f, 32-35 and 32-39.

Sec. 6. Subsection (a) of section 10a-1f of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) Wherever the term "Office of Financial and Academic Affairs for Higher Education" is used or referred to in the following sections of the general statutes, the term "Office of Higher Education" shall be substituted in lieu thereof: 10-155d, 10a-1d, 10a-10a, 10a-11, 10a-11a, 10a-22d, 10a-22r, 10a-22s, 10a-22u, 10a-34, 10a-34a, 10a-34c, 10a-34d, 10a-34e, 10a-34f, 10a-35, 10a-38, 10a-39, 10a-40, 10a-42, 10a-42g, 10a-48a, as amended by this act, 10a-104, 10a-163a [, 10a-164a,] and 10a-168a. [, 10a-169 and 10a-170.]

Sec. 7. Subsection (b) of section 10a-48a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(b) Not later than January 1, 1991, each institution of higher education which receives funds for student financial assistance pursuant to section 10a-40 [or 10a-164a,] shall have a coordinator for student community service, provided each such institution may designate either an employee or a student as such coordinator.

Sec. 8. Subsection (a) of section 10a-55i of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) There is established a Higher Education Consolidation Committee which shall be convened by the chairpersons of the joint standing committee of the General Assembly having cognizance of matters relating to higher education or such chairpersons' designee, who shall be a member of such joint standing committee. The membership of the Higher Education Consolidation Committee shall consist of the higher education subcommittee on appropriations and the chairpersons, vice chairpersons and ranking members of the joint standing committees of the General Assembly having cognizance of matters relating to higher education and appropriations. The Higher Education Consolidation Committee shall establish a meeting and public hearing schedule for purposes of receiving updates from the Board of Regents for Higher Education on the progress of the consolidation of the state system of higher education pursuant to section 4-9c, subsection (a) of section 4d-90, subsection (g) of section 5-160, section 5-199d, subsection (a) of section 7-323k, subsection (a) of section 7-608, subsection (a) of section 10-9, section 10-155d, subdivision (14) of section 10-183b, sections 10a-1a to 10a-1d, inclusive, 10a-3 and 10a-3a, subsection (a) of section 10a-6a, sections 10a-6b, 10a-8, 10a-10a to 10a-11a, inclusive, 10a-17d and 10a-22a, subsections (f) and (h) of section 10a-22b, subsections (c) and (d) of section 10a-22d, sections 10a-22h and 10a-22k, subsection (a) of section 10a-22n, sections 10a-22r, 10a-22s, 10a-22u, 10a-22v, 10a-22x and 10a-34 to 10a-35a, inclusive, subsection (e) of section 10a-37, sections 10a-38 to 10a-40, inclusive, 10a-42 and 10a-42g, subsection (a) of section 10a-48a, as amended by this act, sections 10a-55i, as amended by this act, 10a-71 and 10a-72, subsections (c) and (f) of section 10a-77, section 10a-88, subsection (a) of section 10a-89, subsection (c) of section 10a-99 and sections 10a-102, 10a-104, 10a-105, 10a-109e, 10a-143, 10a-163a [, 10a-164a,] and 10a-168a. [and 10a-170.] The Higher Education Consolidation Committee shall convene its first meeting on or before September 15, 2011, and meet not less than once every two months until September 15, 2012.

Sec. 9. Subsection (f) of section 4-89 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(f) The provisions of this section shall not apply to appropriations to the Office of Higher Education for student financial assistance for [the scholarship program established under section 10a-169, or for] the high technology graduate scholarship program established under section 10a-170a, to the Board of Regents for Higher Education for Connecticut higher education centers of excellence established under section 10a-25h, to the Office of Higher Education for the minority advancement program established under subsection (b) of section 10a-11, to the Board of Regents for Higher Education for the high technology doctoral fellowship program established under section 10a-25n, or to the operating funds of the constituent units of the state system of higher education established pursuant to sections 10a-105, 10a-99 and 10a-77. Such appropriations shall not lapse until the end of the fiscal year succeeding the fiscal year of the appropriation except that centers of excellence appropriations deposited by the Board of Regents for Higher Education in the Endowed Chair Investment Fund, established under section 10a-20a, shall not lapse but shall be held permanently in the Endowed Chair Investment Fund and any moneys remaining in higher education operating funds of the constituent units of the state system of higher education shall not lapse but shall be held permanently in such funds. On or before September first, annually, the Office of Higher Education and Board of Regents for Higher Education shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to appropriations and the budgets of state agencies, through the Office of Fiscal Analysis, concerning the amount of each such appropriation carried over from the preceding fiscal year.

Sec. 10. Section 10a-161 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

The Board of Regents for Higher Education shall: (1) Establish policy pertaining to student financial assistance under sections 10a-163 and 10a-167 to 10a-169, inclusive; (2) establish procedure by regulation, for the award of financial assistance under sections 10a-167 and 10a-169; (3) review and approve applications for financial assistance under sections 10a-163 [,] and 10a-168; [and 10a-169;] (4) receive and review records of all financial assistance granted pursuant to section 10a-167; (5) increase the availability of the state financial assistance programs to all segments of the state population, with significant attention to those with special needs; and (6) assist financial aid officers at institutions of higher education and secondary school guidance counselors in becoming better informed about matters concerning student financial assistance affairs. The Board of Regents for Higher Education shall appoint a seven-member advisory committee on student financial assistance matters. At least one member shall be a financial aid officer at a public institution of higher education; at least one member shall be a financial aid officer at an independent institution of higher education; at least one member shall be a Connecticut student from a public institution of higher education in the state; at least one member shall be a Connecticut student from an independent college or university in the state; and, at least one member shall be a public secondary school guidance counselor.

Sec. 11. Section 10a-163a of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

The Office of Higher Education is authorized to establish and administer a fund to be known as the Teacher Incentive Loan Program Fund and a fund to be known as the Academic Scholarship Loan Program Fund. All teacher incentive or academic scholarship loans and interest repayments made to the Office of Higher Education and all unexpended balances of allocations made pursuant to subdivision (2) of subsection (c) of section 8 of special act 82-46, as amended by section 3 of public act 83-556 and section 5 of public act 85-479, shall be added to the respective funds. The Office of Higher Education may [(1)] make expenditures from these funds to provide for: [(A)] (1) Administrative and loan servicing costs; and [(B)] (2) teacher incentive or academic scholarship loans as authorized under subsection (m) of section 2 of special act 82-46, as amended by section 2 of public act 83-556 and section 4 of public act 85-479. [; and (2) on and after July 1, 1995, transfer moneys, received as repayment of loans, from these funds to the appropriation to the Office of Higher Education for capitol scholarship grants pursuant to section 10a-169.] These funds shall not lapse or revert to the General Fund of the state.

Sec. 12. Section 10a-168 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

If the Board of Regents for Higher Education determines that no approved program of teacher education within the state is available for the preparation of teachers of children requiring special education as defined in part V of chapter 164, said board of regents may provide scholarship aid for such undergraduate and graduate students as it may designate to attend approved programs in institutions in other states. The board may determine the amount of such scholarship aid in each case. [, without regard to the limitations of section 10a-169.] In order to be eligible for such scholarship aid, any applicant shall agree to teach children requiring special education in Connecticut for at least three years.

Sec. 13. Section 10a-34 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2013):

(a) For the purposes of this section, "program of higher learning" means any course of instruction for which it is stated or implied that college or university-level credit may be given or may be received by transfer; "degree" means any letters or words, diploma, certificate or other symbol or document which signifies satisfactory completion of the requirements of a program of higher learning; "institution of higher [learning"] education" means any person, school, board, association, limited liability company or corporation which is licensed or accredited to offer one or more programs of higher learning leading to one or more degrees; "license" means the authorization by the State Board of Education to operate a program or institution of higher [learning] education for a specified initial period; "accreditation" means the authorization by said board to continue operating a program of higher learning or institution of higher [learning] education for subsequent periods, and in such periods to confer specified degrees.

(b) The Office of Higher Education shall establish regulations concerning the requirements for licensure and accreditation, such regulations to concern administration, finance, faculty, curricula, library, student admission and graduation, plant and equipment, records, catalogs, program announcements and any other criteria pertinent thereto, as well as the periods for which licensure and accreditation may be granted, and the costs and procedures of evaluations as provided in subsections (c) and (d) of this section. Said office may establish an advisory council for accreditation composed of representatives of public and private institutions of higher [learning] education and the public at large to advise the office regarding existing or proposed regulations.

(c) No person, school, board, association or corporation shall confer any degree unless authorized by act of the General Assembly. No application for authority to confer any such degree shall be approved by the General Assembly or any committee thereof, nor shall any such authority be included in any charter of incorporation until such application has been evaluated and approved by the State Board of Education in accordance with regulations established by the Office of Higher Education.

(d) No person, school, board, association or corporation shall operate a program of higher learning or institution of higher [learning] education unless it has been licensed or accredited by the State Board of Education, nor shall it confer any degree unless it has been accredited in accordance with this section. The board shall not grant any new license or accreditation until it has received a report of an evaluation of such program or institution by competent educators approved by the board. The board shall accept regional or, where appropriate, national accreditation, in satisfaction of the requirements of this subsection unless the board finds cause not to rely upon such accreditation.

(e) No person, school, board, association or corporation shall use in any way the term "junior college" or "college" or "university" or use any other name, title, literature, catalogs, pamphlets or descriptive matter tending to designate that it is an institution of higher learning, or that it may grant academic or professional degrees, unless the institution possesses a license from, or has been accredited by, the board, nor shall offer any program of higher learning without approval of the State Board of Education.

(f) Accreditation of any program or institution or authority to award degrees granted in accordance with law prior to July 1, 1965, shall continue in effect.

(g) If an existing institution, adversely affected by this section, applies to the board for licensure or accreditation, said board may grant licensure on a temporary basis to expire within one year and renewable from year to year, if, in the judgment of the board, reasonable progress is being made by such institution toward meeting the standards required by regulations of the board.

(h) Each independent institution of higher education and out-of-state institution of higher education shall submit the following fees to the Office of Higher Education at the direction of said office:

(1) Ten thousand dollars for an application for initial licensure of an independent institution, plus two thousand dollars for each application by such institution to confer more than one degree;

(2) Twenty thousand dollars for an application for initial licensure of an out-of-state institution, plus four thousand dollars for each application by such institution to confer more than one degree;

(3) Two thousand dollars annually for each licensed or accredited independent institution;

(4) Four thousand dollars annually for each licensed or accredited out-of-state institution;

(5) One thousand dollars for an application for accreditation of an independent institution;

(6) One thousand dollars for an application for relicensure of an out-of-state institution;

(7) One thousand dollars for expedited review of an application for licensure or accreditation;

(8) Five hundred dollars for program modification;

(9) Five hundred dollars for a progress report; and

(10) One thousand dollars for a site visit by the office or State Board of Education.

The Office of Higher Education shall biennially review and update all fees set forth in this subsection to reflect the costs incurred by the office in implementing the provisions of this section in preparation of action by the State Board of Education.

Sec. 14. (NEW) (Effective July 1, 2013) (a) For the purposes of this section:

(1) "Family contribution" means the expected family contribution for educational costs as computed from the student's Free Application for Federal Student Aid;

(2) "Full-time undergraduate student" means a student who has been registered at an institution of higher education in a course of study leading to such student's first associate or bachelor degree and who is carrying twelve or more semester credit hours at such institution of higher education;

(3) "Independent institution of higher education" means a nonprofit institution established in this state (A) that has degree-granting authority in this state; (B) that has its main campus located in this state; (C) that is not included in the Connecticut system of public higher education; and (D) whose primary function is not the preparation of students for religious vocation;

(4) "Public institution of higher education" means the constituent units of the state system of higher education identified in subdivisions (1) to (4), inclusive, of the general statutes;

(5) "Tuition and required fees" includes only the direct costs for an individual student that are published by each institution of higher education participating in the grant program established under this section.

(b) The state, acting through the Office of Higher Education, shall establish the Governor's Scholarship program to annually make need-based financial aid available to cover the costs of tuition and required fees for Connecticut residents enrolled at Connecticut's public and independent institutions of higher education as first-time, full-time undergraduate students beginning with new or transfer students in the fiscal year ending June 30, 2014. Any award made to a student in the fiscal year ending June 30, 2013, under the capitol scholarship grant program, established under section 10a-169 of the general statutes, the Connecticut aid to public college students grant program, established under section 10a-164a of the general statutes, Connecticut aid to Charter Oak, established under subsection (c) of section 10a-164a of the general statutes, or the Connecticut independent college student grant program, established under section 10a-36 of the general statutes, shall be offered under the Governor's Scholarship program and be renewable for the life of the original award, provided such student meets and continues to meet the need and academic standards established by the Office of Higher Education for purposes of the Governor's Scholarship program.

(c) Within available appropriations, the Governor's Scholarship program shall be comprised of a need and merit-based grant, a need-based grant, a Charter Oak grant, and a performance incentive pool. The need and merit-based grant shall be funded at not less than twenty per cent of available appropriations. The need-based grant shall be funded at up to eighty per cent of available appropriations. The Charter Oak grant shall be not less than one hundred thousand dollars of available appropriations. The incentive pool shall be not less than two and one-half per cent of available appropriations. There shall be an administrative allowance based on one-quarter of one per cent of the available appropriations, but not less than one hundred thousand dollars.

(d) The Governor's Scholarship need and merit-based grant shall be available to any Connecticut resident who is a first-time, full-time undergraduate student at any public or independent institution of higher education beginning in the fiscal year ending June 30, 2014. The Office of Higher Education shall determine eligibility by financial need based on family contribution and eligibility by merit based on either previous high school academic achievement or performance on standardized academic aptitude tests. The Office of Higher Education shall make awards according to a sliding scale, annually determined by said office, up to a maximum family contribution and based on available appropriations and eligible students. The Governor's Scholarship need and merit-based grant shall be awarded in a higher amount than the need-based grant awarded pursuant to subsection (e) of this section. Recipients of the need and merit-based grant shall not be eligible to receive an additional need-based award or an incentive award. The accepting institution of higher education shall disburse sums awarded under such grant for payment of the student's tuition and required fees.

(e) The Governor's Scholarship need-based grant shall be available to any Connecticut resident who is a first-time, full-time undergraduate student at any public or independent institution of higher education beginning in the fiscal year ending June 30, 2014. The Office of Higher Education shall determine eligibility by financial need based on family contribution. The amount of the annual appropriation to be allocated to each institution of higher education shall be determined by its actual eligible enrollment based on family contribution during the fiscal year one year prior to the grant year. Participating institutions of higher education shall make awards according to a sliding scale, annually determined by the Office of Higher Education, up to a maximum family contribution and based on available appropriations and the number of eligible students. The maximum award shall be determined by the Office of Higher Education based on available funding and the number of eligible students. The accepting institution of higher education shall disburse sums awarded under the need-based grant for payment of the student's tuition and required fees.

(f) Each participating institution of higher education shall expend all of the moneys received under the Governor's Scholarship program as direct financial assistance only for tuition and required fees based on the sliding scale determined by the Office of Higher Education and the maximum award amounts set by said office. Participating institutions of higher education shall annually provide the Office of Higher Education with data and reports on all Connecticut students who applied for financial aid, including, but not limited to, students receiving a Governor's Scholarship grant, in a form and at a time determined by said office. Each participating institution of higher education shall maintain, for a period of not less than three years, records substantiating the reported number of Connecticut students and documentation utilized by the institution of higher education in determining eligibility of the student grant recipients. Such records shall be subject to audit. Funds not obligated by an institution of higher education shall be returned by February fifteenth in the fiscal year the grant was made to the Office of Higher Education for reallocation. Financial aid provided to Connecticut residents under this program shall be designated as a grant from the Governor's Scholarship program.

(g) The Governor's Scholarship Charter Oak grant shall be available to any first-time, full-time undergraduate student enrolled in Charter Oak State College beginning in the fiscal year ending June 30, 2014. The Office of Higher Education shall allocate any appropriation to Charter Oak State College to be used to provide grants for tuition and required fees to residents of this state who demonstrate substantial financial need and who are matriculated in a degree program at Charter Oak State College. Individual awards shall not exceed a student's calculated tuition and required fees. Financial aid provided to Connecticut residents under this program shall be designated as a grant from the Governor's Scholarship program.

(h) The Governor's Scholarship incentive pool shall be created to encourage retention and completion for any student who (1) receives the Governor's Scholarship need-based grant, (2) returns with sufficient credits to complete such student's associate degree in two years or bachelor degree in four years, and (3) exceeds the minimum satisfactory academic performance standards as determined by the Office of Higher Education. Such student shall be eligible beginning in the second year of such student's need-based grant. The pool shall be distributed to participating institutions of higher education based on eligibility as determined by the Office of Higher Education.

(i) In administering the Governor's Scholarship program, the Office of Higher Education shall develop and utilize fiscal procedures designed to ensure accountability of the public funds expended. Such procedures shall include provisions for compliance audits that shall be conducted by the Office of Higher Education on any institution of higher education that participates in the program. Commencing with the fiscal year ending June 30, 2015, and biennially thereafter, each such institution of higher education shall submit the results of an audit done by an independent certified public accountant for each year of participation in the program. Any institution of higher education determined by the Office of Higher Education not to be in substantial compliance with the provisions of the Governor's Scholarship program shall be ineligible to receive funds under the program for the fiscal year following the fiscal year in which the institution of higher education was determined not to be in substantial compliance. Funding shall be restored when the Office of Higher Education determines that the institution of higher education has returned to substantial compliance.

Sec. 15. Sections 10a-19g, 10a-19h, 10a-19j, 10a-36 to 10a-42g, inclusive, 10a-164a, 10a-169, 10a-170 and 10a-172 of the general statutes are repealed. (Effective July 1, 2013)

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2013

10a-99(b)

Sec. 2

July 1, 2013

10a-105(b)

Sec. 3

July 1, 2013

10a-1d(a)

Sec. 4

from passage

10a-1b(a)

Sec. 5

July 1, 2013

10a-1e(a) to (c)

Sec. 6

July 1, 2013

10a-1f(a)

Sec. 7

July 1, 2013

10a-48a(b)

Sec. 8

July 1, 2013

10a-55i(a)

Sec. 9

July 1, 2013

4-89(f)

Sec. 10

July 1, 2013

10a-161

Sec. 11

July 1, 2013

10a-163a

Sec. 12

July 1, 2013

10a-168

Sec. 13

July 1, 2013

10a-34

Sec. 14

July 1, 2013

New section

Sec. 15

July 1, 2013

Repealer section

Statement of Purpose:

To implement the Governor's budget recommendations.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]