First Regular Session 118th General Assembly (2013)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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HOUSE ENROLLED ACT No. 1348




     AN ACT to amend the Indiana Code concerning education.

    Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 21-7-13-13.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 13.5. "Degree map" refers to a student reference developed by a state educational institution under guidelines developed by the commission under IC 21-12-14-1 that provides an academic term by academic term sequence of course options that will allow a full-time student to complete:
        (1) a baccalaureate degree within four (4) academic years; or
        (2) an associate degree within two (2) academic years;
in the student's intended field of study. The reference must specify the expected date that the student will earn a baccalaureate degree or an associate degree and the academic requirements that a student should complete each academic year to timely earn a degree.

    SECTION 2. IC 21-12-1-2, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 2. "Academic term" means a semester, a trimester, or a quarter, whichever applies or any other equivalent

term set forth by an eligible institution and used to divide an academic year into periods in which classes are held.
    SECTION 3. IC 21-12-1-7.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 7.5. "Credit hours" refers to credit hours used in a traditional semester school, in which an associate degree typically requires sixty (60) credit hours and a baccalaureate degree typically requires one hundred twenty (120) credit hours.
    SECTION 4. IC 21-12-1.5-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 0.5. This chapter applies to a student who initially enrolls in an eligible institution before September 1, 2013.
    SECTION 5. IC 21-12-1.7 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]:
     Chapter 1.7. Establishment of Award Amounts by the Commission for Higher Education
    Sec. 1. For purposes of this chapter, "academic honors student" refers to a student who:
        (1) for the student's first academic year, graduated from high school with an academic honors diploma or technical honors diploma; or
        (2) for a student's most recently concluded academic year that is after the student's first academic year, maintained a cumulative grade point average of at least 3.0 on a 4.0 grading scale or its equivalent as established by the eligible institution.
    Sec. 2. For purposes of this chapter, "accelerated progress" means successfully completing:
        (1) at least thirty-nine (39) credit hours or the equivalent by the end of the student's first academic year; or
        (2) at least seventy-eight (78) credit hours or the equivalent by the end of the student's second academic year.
    Sec. 3. (a) This section applies to an academic year beginning after August 31, 2014. The commission shall publish annually a schedule of award amounts for the higher education award and freedom of choice grant issued under this article. The schedule must provide award amounts on the basis of the recipient's expected family contribution. The expected family contribution

shall be derived from information submitted on the recipient's financial aid application form. The commission shall determine award amounts separately for:
         (1) recipients attending approved public state educational institutions (except Ivy Tech Community College);
         (2) Ivy Tech Community College;
         (3) recipients attending a nonprofit college or university listed in IC 21-7-13-6(c); and
        (4) recipients attending approved postsecondary credit bearing proprietary institutions.
    (b) The schedule of award amounts published under subsection (a) shall offer a larger award to a recipient who, as of the student's most recently concluded academic year, has successfully completed:
        (1) at least thirty (30) credit hours or the equivalent by the end of the student's first academic year;
        (2) at least sixty (60) credit hours or the equivalent by the end of the student's second academic year; or
        (3) at least ninety (90) credit hours or the equivalent by the end of the student's third academic year.
A student's academic years used to determine if the student meets the requirements of this subdivision are not required to be successive calendar years.
    (c) The schedule of award amounts shall set forth an amount for recipients described in subsection (a)(1) that is equal to fifty percent (50%) of the amount for recipients described in subsection (a)(3).

     (d) This subsection expires September 1, 2016. A student that initially enrolls in an eligible institution for an academic year beginning before September 1, 2013, is eligible for the larger award determined under subsection (b) regardless of the student's credit completion.
     Sec. 4. (a) This section applies to a student who initially enrolls in an eligible institution for an academic year beginning after August 31, 2013.
    (b)The commission shall offer an additional award to a recipient who:
        (1) is an academic honors student;
        (2) received an associate degree before enrolling in a baccalaureate degree program; or


        (3) made accelerated progress during the recipient's most recently concluded academic year.
    (c) The commission may establish one (1) or more student performance incentives in addition to those listed under subsection (b).
    (d) The commission shall determine the amount of each incentive bonus annually, based on the available appropriation.
    Sec. 5. (a) If the sum of awards under sections 3 and 4 of this chapter exceeds the appropriation in a given year, the commission shall reduce the level of awards offered under section 4 of this chapter as necessary so that the sum of awards under sections 3 and 4 of this chapter does not exceed the appropriation.
    (b) The commission may increase, but shall not decrease, the amounts of awards published under section 1 of this chapter from the amount offered the previous academic year.
    Sec. 6. (a) As used in this section, "annual award amount" refers to:
        (1) for a recipient of a Frank O'Bannon award, the amount a recipient is entitled to receive under sections 3 and 4 of this chapter; or
        (2) for a recipient of a twenty-first century scholars award, the amount a recipient is entitled to receive under IC 21-12-6.
    (b) The annual award amount may be used in any of the academic terms offered by an eligible institution, including summer terms.

     (c) An eligible institution, in consultation with the recipient, may reserve up to one hundred percent (100%) of a recipient's annual award amount for use in the summer.
    SECTION 6. IC 21-12-3-1, AS AMENDED BY P.L.107-2012, SECTION 16, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 1. (a) An applicant is eligible for a first year higher education award under this chapter if the student meets the following requirements:
        (1) The applicant is a resident of Indiana, as defined by the commission.
        (2) The applicant:
            (A) has successfully completed the program of instruction at an approved secondary school;
            (B) has been granted a:
                (i) high school equivalency certificate before July 1, 1995; or
                (ii) state of Indiana general educational development (GED) diploma under IC 20-10.1-12.1 (before its repeal), IC 20-20-6 (before its repeal), or IC 22-4.1-18; or
            (C) is a student in good standing at an approved secondary school and is engaged in a program that in due course will be completed by the end of the current academic year.
        (3) The financial resources reasonably available to the applicant, as defined by the commission, are such that, in the absence of a higher education award under this chapter, the applicant would be deterred from completing the applicant's education at the approved postsecondary educational institution that the applicant has selected and that has accepted the applicant. In determining the financial resources reasonably available to an applicant to whom IC 21-18.5-4-8 applies, the commission must consider the financial resources of the applicant's legal parent.
        (4) The applicant will use the award initially at that approved postsecondary educational institution.
        (5) If the student is already enrolled in an approved postsecondary educational institution, the applicant must be a full-time student and be making satisfactory progress, as determined by the commission, toward a first baccalaureate degree.
        (6) The student declares, in writing, a specific educational objective or course of study and enrolls in:
            (A) courses that apply toward the requirements for completion of that objective or course of study; or
            (B) courses designed to help the student develop the basic skills that the student needs to successfully achieve that objective or continue in that course of study.
         (7) The student is not eligible to receive a twenty-first century scholarship under IC 21-12-6.
    (b) This subsection applies to an individual who:
        (1) meets the requirements set forth in subsection (a); and
        (2) before the date that eligibility is determined by the commission, has been placed by or with the consent of the department of child services, by a court order, or by a licensed child placing agency in:
            (A) a foster family home;
            (B) the home of a relative or other unlicensed caretaker;
            (C) a child caring institution; or
            (D) a group home.
The commission shall consider an individual to whom this subsection applies as a full-need student under the commission's rules when determining the eligibility of the individual to receive financial aid administered by the commission under this chapter.
    SECTION 7. IC 21-12-3-2, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 2. A higher education award recipient is not eligible for assistance after the recipient has received an award for a total of eight (8) semesters or twelve (12) quarters of postsecondary education. the number of academic terms that constitutes four (4) undergraduate academic years.
    SECTION 8. IC 21-12-3-5, AS AMENDED BY P.L.107-2012, SECTION 18, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) This section applies to the maximum grant that may be offered to an eligible student for an associate degree program at a postsecondary credit bearing proprietary educational institution that qualifies as an approved postsecondary educational institution.
    (b) The maximum amount of a grant that may be offered to an eligible student in a program at a postsecondary credit bearing proprietary educational institution is equal to the maximum amount of an award the student could receive under this chapter if the student were enrolled at Ivy Tech Community College.
     (c) This section expires July 1, 2014.
    SECTION 9. IC 21-12-3-9, AS AMENDED BY P.L.169-2011, SECTION 3, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9. (a) A higher education award for a student in a program leading to a baccalaureate degree may be renewed for a total of three (3) undergraduate academic years following the academic year of the first award or until an earlier time as the student receives a degree normally obtained in four (4) undergraduate academic years. A higher education award for a student in a program leading to a technical certificate or an undergraduate associate degree may be renewed for the number of academic years normally required to obtain a certificate or degree in the student's program. The commission may grant a renewal only upon application and only upon its finding that:
        (1) the applicant has successfully completed the work of a preceding year;
        (2) the applicant remains domiciled in Indiana;
        (3) the recipient's financial situation continues to warrant an award, based on the financial requirements set forth in section (1)(a)(3) of this chapter;
        (4) the applicant is eligible under section 2 of this chapter; and
        (5) subject to subsection (b), if the student initially enrolls in an eligible institution for a semester (or its equivalent) beginning after June 30, 2012, the student maintains at least the following cumulative grade point average:
            (A) For credit hours applicable to the equivalent of the applicant's freshman academic year, a cumulative grade point average that the eligible institution determines is satisfactory academic progress; and
            (B) For credit hours applicable to the equivalent of the applicant's sophomore academic year, a cumulative grade point average of 2.25 on a 4.0 grading scale or its equivalent as established by the eligible institution.
            (C) For credit hours applicable to the equivalent of the applicant's junior or senior academic year, a cumulative grade point average of 2.5 on a 4.0 grading scale or its equivalent as established by the eligible institution;
         (6) if the student initially enrolls in an eligible institution for an academic year beginning after August 31, 2013, the student successfully completes:
            (A) at least twenty-four (24) credit hours or the equivalent by the end of the student's first academic year;
            (B) at least forty-eight (48) credit hours or the equivalent by the end of the student's second academic year; and
            (C) at least seventy-two (72) credit hours or the equivalent by the end of the student's third academic year.
        A student's academic years used to determine if the student meets the requirements of this subdivision are not required to be successive calendar years. A recipient who fails to meet the credit hour requirement for a particular academic year becomes ineligible for an award during the next academic year. The recipient may regain eligibility for an award in subsequent academic years if the recipient meets
the

aggregate credit hour requirements commensurate with the recipient's academic standing. In addition, the commission may allow a student who is otherwise ineligible under this subdivision for an award during the next academic year to maintain eligibility for an award if the student submits a petition to the commission and the commission makes a determination that extenuating circumstances (as determined by the commission) prevented the student from meeting the requirements of this subdivision.
    (b) After the first semester or its equivalent at the eligible institution that a person does not achieve the requisite cumulative grade point average specified in subsection (a)(5), the person is considered to be on probation and must achieve the requisite cumulative grade point average by the next semester or its equivalent at the eligible institution in order to continue to receive benefits under this chapter.
    SECTION 10. IC 21-12-3-9.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 9.5. (a) This section applies to a student who initially enrolls in an eligible institution before September 1, 2013.
    (b) Beginning in an academic year beginning after August 31, 2014, a student who graduated from high school with an academic honors diploma is entitled to receive the following additional award amount each academic year:
        (1) For a student attending Ivy Tech Community College or a postsecondary credit bearing proprietary educational institution, seven hundred dollars ($700).
        (2) For a student attending a state educational institution, eight hundred dollars ($800).
        (3) For a student attending a nonprofit college or university, one thousand four hundred dollars ($1,400).
    (c) This section expires September 1, 2016.

    SECTION 11. IC 21-12-3-10, AS AMENDED BY P.L.169-2011, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10. Out of funds available after commitments have been met under sections 8 and 9 of this chapter, awards shall be issued to persons who have successfully completed at least one (1) academic year but not more than three (3) academic years in approved postsecondary educational institutions if they meet the eligibility

requirements of:
        (1) sections 1, 2, and (if applicable) 9(a)(5) 9(5) or 9(6) of this chapter; or
        (2) sections 4, 5, and (if applicable) 9(a)(5) 9(5) or 9(6) of this chapter.
The awards shall be handled on the same basis as renewals under section 9 of this chapter.
    SECTION 12. IC 21-12-3-11, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 11. (a) A higher education award issued under this section and sections 8, 9, and 10 of this chapter extends to all educational costs for the academic year for which the award is made, but only to the extent of:
        (1) current financial need (as measured under section 1(3) of this chapter); or
        (2) the maximum fees regularly assessed to resident undergraduates at any state educational institution, as determined annually by the commission;
whichever is smaller.
     (b) This section expires September 1, 2014.
    SECTION 13. IC 21-12-4-2, AS AMENDED BY P.L.107-2012, SECTION 19, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 2. A person is eligible for a freedom of choice grant if:
        (1) the person is qualified for a higher education award under the terms of IC 21-12-3-1, IC 21-12-3-2, and IC 21-12-3-3 or IC 21-12-3-4, and IC 21-12-3-5, even if lack of funds prevents the award or grant;
        (2) for a freedom of choice grant awarded before September 1, 2014, the person has a financial need that exceeds the award, as determined in accordance with:
            (A) this chapter, IC 21-18.5-4, IC 21-12-2, and IC 21-12-3; and
            (B) the rules of the commission; and
        (3) the person will attend an approved postsecondary educational institution that:
            (A) either:
                (i) operates in Indiana, provides an organized two (2) year or longer program of collegiate grade directly creditable toward

a baccalaureate degree, is operated by a nonprofit entity, and is accredited by a recognized regional accrediting agency or the board for proprietary education under IC 21-18.5-6; or
                (ii) is a hospital that operates a nursing diploma program that is accredited by the Indiana state board of nursing; and
            (B) is operated privately and not administered or controlled by any state agency or entity.
    SECTION 14. IC 21-12-4-4, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 4. (a) This subsection applies before September 1, 2014. The amount of a freedom of choice grant may not exceed the difference between:
        (1) the amount of the total financial need of the student, as determined under the commission's rules; and
        (2) the:
            (A) higher education award made under IC 21-12-3-1, IC 21-12-3-2, and IC 21-12-3-3 or IC 21-12-3-4 and IC 21-12-3-5; or
            (B) sum necessary to pay educational costs at the institution;
        whichever is smaller.
     (b) This subsection applies after August 31, 2014. The freedom of choice grant is the amount published under IC 21-12-1.7 for recipients attending an institution described in IC 21-12-4-2.
    SECTION 15. IC 21-12-4-9, AS ADDED BY P.L.229-2011, SECTION 227, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]: Sec. 9. The commission may order the auditor of state to transfer money from among the freedom of choice grant fund, to the higher education award fund, and the twenty-first century scholars fund, as needed to meet the obligations of the funds. The auditor of state shall make the transfer ordered by the commission with the approval of the budget director and the governor.
    SECTION 16. IC 21-12-6-5, AS AMENDED BY P.L.107-2012, SECTION 22, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. (a) To qualify to participate in the program, a student must meet the following requirements:
        (1) Be a resident of Indiana.
        (2) Be:
            (A) enrolled in grade 7 or 8 at a:


                (i) public school; or
                (ii) nonpublic school that is accredited either by the state board of education or by a national or regional accrediting agency whose accreditation is accepted as a school improvement plan under IC 20-31-4-2; or
            (B) otherwise qualified under the rules of the commission that are adopted under IC 21-18.5-4-9(2) to include students who are in grades other than grade 8 as eligible students.
        (3) Be a member of a household with an annual income of not more than the amount required for the individual to qualify for free or reduced priced lunches under the national school lunch program, as determined for the immediately preceding taxable year for the household.
        (4) Agree, in writing, together with the student's custodial parents or guardian, that the student will:
            (A) graduate from a secondary school located in Indiana that meets the admission criteria of an eligible institution;
            (B) not illegally use controlled substances (as defined in IC 35-48-1-9);
            (C) not commit a crime or an infraction described in IC 9-30-5;
            (D) not commit any other crime or delinquent act (as described in IC 31-37-1-2 or IC 31-37-2-2 through IC 31-37-2-5 (or IC 31-6-4-1(a)(1) through IC 31-6-4-1(a)(5) before their repeal));
            (E) timely apply, when the eligible student is a senior in high school:
                (i) for admission to an eligible institution; and
                (ii) for any federal and state student financial assistance available to the eligible student to attend an eligible institution;
            (F) achieve a cumulative grade point average upon graduation of:
                (i) at least 2.0, if the student graduates from high school before July 1, 2014; and
                (ii) at least 2.5, if the student graduates from high school after June 30, 2014;
            on a 4.0 grading scale (or its equivalent if another grading scale is used) for courses taken during grades 9, 10, 11, and

12; and
            (G) participate in an academic success program required under the rules adopted by the commission, if the student initially enrolls in the program after June 30, 2011. in high school after June 30, 2013.
    (b) A student is also qualified to participate in the program if the student:
        (1) before or during grade 7 or grade 8, is placed by or with the consent of the department of child services, by a court order, or by a child placing agency in:
            (A) a foster family home;
            (B) the home of a relative or other unlicensed caretaker;
            (C) a child caring institution; or
            (D) a group home;
        (2) agrees in writing, together with the student's caseworker (as defined in IC 31-9-2-11), to the conditions set forth in subsection (a)(4); and
        (3) except as provided in subdivision (2), otherwise meets the requirements of subsection (a).
    (c) The commission may require that an applicant apply electronically to participate in the program using an online Internet application on the commission's web site.
    SECTION 17. IC 21-12-6-7, AS AMENDED BY P.L.229-2011, SECTION 229, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 7. (a) Subject to IC 21-12-13-2, a scholarship awarded under section 6 of this chapter or this section may be renewed. To qualify for a scholarship renewal, a scholarship recipient must do the following:
        (1) Submit to the commission a renewal application that contains all the information and evidence required by the commission to determine eligibility for the scholarship renewal.
        (2) Continue to be enrolled as a full-time student in good standing at an eligible institution.
        (3) This subdivision applies only to applicants who initially enroll in the program under section 5 of this chapter or IC 21-12-6.5-2 after June 30, 2011. For purposes of this chapter, applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them when they subsequently apply to renew a scholarship. Continue to have a

lack of financial resources reasonably available to the applicant, as defined by the commission, that, in the absence of an award under this chapter, would deter the scholarship applicant from completing the applicant's education at the approved postsecondary educational institution that the applicant has selected and that has accepted the applicant.
        (4) Subject to subsection (b), If the student initially enrolls in an eligible institution for a semester (or its equivalent) beginning after June 30, 2012, maintain at least the following cumulative grade point average:
            (A) For credit hours applicable to the equivalent of the applicant's freshman academic year, a cumulative grade point average that the eligible institution determines is satisfactory academic progress.
            (B) For credit hours applicable to the equivalent of the applicant's sophomore academic year, a cumulative grade point average of 2.25 on a 4.0 grading scale or its equivalent as established by the eligible institution.
            (C) For credit hours applicable to the equivalent of the applicant's junior or senior academic year, a cumulative grade point average of 2.5 on a 4.0 grading scale or its equivalent as established by the eligible institution.
         (5) If the student initially enrolls in an eligible institution for an academic year beginning after August 31, 2013, the student successfully completes:
            (A) at least thirty (30) credit hours or the equivalent by the end of the student's first academic year;
            (B) at least sixty (60) credit hours or the equivalent by the end of the student's second academic year; and
            (C) at least ninety (90) credit hours or the equivalent by the end of the student's third academic year.
        A student's academic years used to determine if the student meets the requirements of this subdivision are not required to be successive calendar years. A recipient who fails to meet the credit hour requirement for a particular academic year becomes ineligible for an award during the next academic year. The recipient may become eligible for an award in subsequent academic years if that recipient meets the aggregate credit hour requirements commensurate with the

recipient's academic standing. In addition, the commission may allow a student who is otherwise ineligible under this subdivision for an award during the next academic year to maintain eligibility for an award if the student submits a petition to the commission and the commission makes a determination that extenuating circumstances (as determined by the commission) prevented the student from meeting the requirements of this subdivision.
        
(5) (6) Continue to meet any other minimum criteria established by the commission.
    (b) After the first semester or its equivalent at the eligible institution that a person does not achieve the requisite cumulative grade point average specified in subsection (a)(4), the person is considered to be on probation and must achieve the requisite cumulative grade point average by the next semester or its equivalent at the eligible institution in order to continue to receive benefits under this chapter.
    SECTION 18. IC 21-12-6-8, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 8. A scholarship may be renewed under this chapter for a total scholarship award that does not exceed the equivalent of eight (8) semesters. the number of academic terms that constitutes four (4) undergraduate academic years.
    SECTION 19. IC 21-12-6-10.3, AS AMENDED BY P.L.107-2012, SECTION 25, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 10.3. (a) This section applies to a student who qualifies for a scholarship under section 6 or 7 of this chapter, if the student initially enrolls in the program after June 30, 2011. Applicants who are enrolled in the program before July 1, 2011, will not have an income or financial resources test applied to them under this section when they subsequently apply for a scholarship or apply to renew a scholarship.
    (b) A scholarship applicant shall be awarded the following amount as adjusted under subsections (c) and (d):
        (1) If the scholarship applicant attends an approved postsecondary educational institution that is a state educational institution, the full educational costs that the scholarship applicant would otherwise be required to pay at the eligible institution.
        (2) If the scholarship applicant attends an approved postsecondary educational institution that is private, the lesser of the educational

costs that the scholarship applicant would otherwise be required to pay at the private eligible institution, or the average of the educational costs of all state educational institutions, not including Ivy Tech Community College.
        (3) If the scholarship applicant attends an approved postsecondary educational institution that is a postsecondary credit bearing proprietary educational institution, the lesser of the educational costs that the scholarship applicant would otherwise be required to pay at the postsecondary credit bearing proprietary educational institution or the educational costs of Ivy Tech Community College.
    (c) The amount of an award under subsection (b) shall be reduced by:
         (1) for an amount awarded before September 1, 2014:
            
(1) (A) the amount of the Frank O'Bannon grant awarded to the scholarship applicant; plus
            (2) (B) an additional amount based on the expected family contribution, if necessary, as determined by the commission, to provide scholarships within the available appropriation; or
        (2) for an amount awarded after August 31, 2014, the amount based on the expected family contribution, if necessary, as determined by the commission, to provide scholarships within the available appropriation.

    (d) The total of all tuition scholarships awarded under this section in a state fiscal year may not exceed the amount available for distribution from the fund for scholarships under this chapter. If the total amount to be distributed from the fund in a state fiscal year exceeds the amount available for distribution, the amount to be distributed to each eligible applicant shall be proportionately reduced so that the total reductions equal the amount of the excess based on the relative financial need of each eligible applicant.
    SECTION 20. IC 21-12-6-11 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 11. (a) The Indiana college placement and assessment center shall maintain the following:
        (1) The agreements under section 5 of this chapter.
        (2) The certifications under section 6 of this chapter.
        (3) A comprehensive list of all eligible students.
    (b) The commission shall have access to the information maintained under this section.


    (c) The commission, the Indiana college placement and assessment center, the department of education, and each approved secondary school shall work together in implementing the program.
    SECTION 21. IC 21-12-6-13 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 13. The commission shall do the following:
        (1) Prepare a statistical report on a fiscal year basis that describes awards to students attending institutions under this chapter.
        (2) Deliver the report described in subdivision (1) to the legislative council before August 15 of the year following the fiscal year covered in the report. The report must be in an electronic format under IC 5-14-6.
    SECTION 22. IC 21-12-8-3, AS AMENDED BY P.L.7-2011, SECTION 13, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. (a) An applicant is eligible to receive a part-time student grant if the following conditions are met:
        (1) The applicant is domiciled in Indiana, as defined by the commission.
        (2) The applicant:
            (A) has received a diploma of graduation from an approved secondary school;
            (B) has been granted a:
                (i) high school equivalency certificate before July 1, 1995; or
                (ii) state of Indiana general educational development (GED) diploma under IC 20-10.1-12.1 (before its repeal), IC 20-20-6 (before its repeal), or IC 22-4.1-18; or
            (C) is a student in good standing who is completing a final year of study at an approved secondary school and will be eligible upon graduation to attend an approved institution of higher learning.
        (3) The applicant declares, in writing, a specific educational objective or course of study and enrolls in:
            (A) a course that applies toward the requirements for completion of that objective or course of study; or
            (B) a course designed to help the applicant develop the basic skills the applicant needs to successfully achieve that objective or continue in that course of study.
        (4) The applicant enrolls in at least two (2) six (6) but fewer than twelve (12) credit hours in any academic term.
        (5) The commission or an approved postsecondary educational institution acting as the commission's agent determines that the financial resources available to the applicant are such that in the absence of a grant under this chapter the applicant would be deterred from beginning or completing the applicant's declared educational objective or course of study.
         (6) The applicant has not received a Frank O'Bannon grant for the maximum number of academic terms.
    (b) The commission shall reduce an award offered under this section by the amount the applicant is eligible to receive in tuition reimbursement from an employer or another outside source.

    SECTION 23. IC 21-12-8-5, AS ADDED BY P.L.2-2007, SECTION 253, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. Subject to this chapter, a student's part-time student grant may be renewed if the student does the following:
        (1) For a student who initially enrolls in an eligible institution before September 1, 2013:
            (A)
makes satisfactory progress toward a certificate, nursing diploma, associate degree, or baccalaureate degree; and
            (2) (B) demonstrates continuing financial need.
         (2) For a student who initially enrolls in an eligible institution for an academic year beginning after August 31, 2013:
            (A) successfully completes at least eighteen (18) credit hours or their equivalent toward a certificate, nursing diploma, associate degree, or baccalaureate degree in the previous academic year;
            (B) demonstrates continuing financial need; and

             (C) maintains at least a cumulative grade point average that the eligible institution determines is satisfactory academic progress.
    SECTION 24. IC 21-12-8-6 IS REPEALED [EFFECTIVE JULY 1, 2013]. Sec. 6. The commission shall determine the maximum number of part-time student grants available to applicants. However, with respect to a particular student, the total of the academic terms for which:
        (1) part-time student grants under this chapter; and
        (2) Frank O'Bannon grants;
are made may not exceed the equivalent of eight (8) semesters of

full-time study. The commission shall treat each academic term for which a Frank O'Bannon grant is made as one (1) academic term.
    SECTION 25. IC 21-12-9-7, AS ADDED BY P.L.173-2007, SECTION 4, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 7. (a) The money in the fund shall be used to provide annual scholarships to insurance students who qualify under section 9 of this chapter. The commission shall determine the amount of money to be allocated from the fund for scholarships under this chapter.
    (b) A scholarship awarded under this chapter may be used only for the payment of tuition or fees that are:
        (1) approved by the state educational institution that awards the scholarship; and
        (2) not otherwise payable under any other scholarship or form of financial assistance specifically designated for tuition or fees.
    (c) Subject to section 8(c) of this chapter, each scholarship awarded under this chapter is renewable under section 9 of this chapter for a total number of terms that does not exceed eight (8) full-time semesters (or the equivalent) or twelve (12) full-time quarters (or the equivalent). the number of terms that constitutes four (4) undergraduate academic years.
    SECTION 26. IC 21-12-10-3, AS ADDED BY P.L.229-2011, SECTION 231, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 3. An individual is eligible for a Mitch Daniels early graduation scholarship if the individual:
        (1) is a resident of Indiana, as defined by the commission;
        (2) attended a publicly supported school on a full-time equivalency basis (as defined in IC 20-43-1-14) for at least the last two (2) semesters before the individual graduated from high school;
        (3) had legal settlement (as defined in IC 20-18-2-11) in Indiana for at least the last two (2) semesters before the individual graduated from high school;
        (4) met at least the minimum requirements set by the Indiana state board of education for granting a high school diploma by the end of grade 11 (including any summer school courses completed before July 1 of a year) and was awarded after December 31, 2010, a high school diploma by the publicly supported school that the individual last attended for course credits earned before the

end of grade 11;
        (5) was not enrolled in a publicly supported school for any part of grade 12;
        (6) applies to the commission for a Mitch Daniels early graduation scholarship in the manner specified by the commission; and
        (7) within five (5) months after graduating from high school:
             (A) becomes a student in good standing at an approved postsecondary educational institution whose students are eligible to receive, before September 1, 2014, a higher education award (IC 21-12-3-11) or a freedom of choice grant (IC 21-12-4-4), or, after August 31, 2014, a higher education award or freedom of choice grant published under IC 21-12-1.7-3; and
             (B) is engaged in a program that will lead to an approved postsecondary degree or credential.
    SECTION 27. IC 21-12-13-1, AS ADDED BY P.L.169-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 1. (a) This section applies to the following scholarships and tuition and fee remission statutes:
        (1) IC 10-12-2-6.
        (2) IC 10-12-2-11.
        (3) IC 10-17-7.
        (4) IC 21-14-4.
        (5) IC 21-14-6-3.
        (6) IC 21-14-7.
        (7) IC 21-14-10.
    (b) Except as provided in sections section 3 and 4 of this chapter, a grant or reduction in tuition or fees, including all renewals and extensions, under any of the laws listed in subsection (a) may not exceed one hundred twenty-four (124) undergraduate credit hours or its equivalent, as determined by the commission and must be used within eight (8) years after the date the individual first applies and becomes eligible for benefits under the applicable law.
    SECTION 28. IC 21-12-13-2, AS ADDED BY P.L.169-2011, SECTION 14, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 2. (a) This section applies to the following scholarship and fee remission statutes:
        (1) IC 21-12-3.


        (2) IC 21-12-4.
        (3) IC 21-12-6.
        (4) IC 21-12-8.
        (5) IC 21-12-9.
        (6) IC 21-13-2.
        (7) IC 21-13-3.
        (8) IC 21-13-4.
        (9) IC 21-14-5.
        (10) IC 21-14-6-2.
    (b) Except as provided in sections section 3 and 4 of this chapter, a grant or reduction in tuition or fees, including all renewals and extensions, under any of the laws listed in subsection (a) may not exceed eight (8) the number of terms that constitutes four (4) full-time undergraduate semesters academic years, or its equivalent, as determined by the commission and must be used within eight (8) years after the date the individual first applies and becomes eligible for benefits under the applicable law.
    SECTION 29. IC 21-12-13-4 IS REPEALED [EFFECTIVE SEPTEMBER 1, 2013]. Sec. 4. (a) This section applies to a grant or reduction in tuition or fees described in section 2 of this chapter.
    (b) A grant or reduction in tuition or fees may include up to the equivalent of two (2) regular semesters of courses taken during a summer semester.
    SECTION 30. IC 21-12-14 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE UPON PASSAGE]:
     Chapter 14. Degree Maps
    Sec. 1. Not later than October 1, 2013, the commission shall develop guidelines in consultation with state educational institutions to provide a state educational institution guidance for establishing degree maps for each full-time student attending the state educational institution. The guidelines must include:
        (1) procedures for establishing a degree map with a student, including requirements for adjusting a degree map in situations in which the student changes the student's field of study;
        (2) requirements and guidance for a state educational institution to determine when the state educational institution must offer a course at no cost to a student under section 3 of

this chapter; and
        (3) any provision the commission determines is necessary to implement this chapter.
    Sec. 2. This section applies to a student who initially enrolls in a state educational institution after July 31, 2014. A state educational institution shall develop a degree map for each full-time student based on the student's specific educational objective or course of study. A full-time student's degree map must contain:
        (1) an academic term by academic term sequence of course options that will allow the full-time student to complete either:
            (A) a baccalaureate degree within four (4) academic years; or

             (B) an associate degree within two (2) academic years;
        in the student's intended field of study;
        (2) the expected date that the student will earn a baccalaureate degree or an associate degree described in subdivision (1);
        (3) the academic requirements that a student must complete each academic year to timely earn a degree described in subdivision (1); and
        (4) any information the commission determines is appropriate under section 1 of this chapter.
    Sec. 3. This section applies to a student who initially enrolls in a state educational institution after July 31, 2014. A state educational institution shall ensure that courses necessary for the student to comply with the student's degree map are available for the student during the academic term in which the student is required to complete the particular course. If a student who complies with the student's degree map is unable to take a course required under the student's degree map for the current academic term because:
        (1) the state educational institution does not offer the course during that particular academic term; or
        (2) the student is unable to enroll in the course:
            (A) because the course times at which the course is offered conflict with other course requirements specified for the current academic term in the student's degree map; or
            (B) because the course is full;


the state educational institution shall provide the particular course to the student at no cost during the next available academic term in which the course is offered unless the state educational institution provides the student with an alternate degree map that does not require the student to take the course that semester.
    SECTION 31. IC 21-13-2-6, AS ADDED BY P.L.2-2007, SECTION 254, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 6. Subject to section 12 of this chapter, a scholarship may be renewed under this chapter for a total scholarship award that does not exceed eight (8) semesters (or its equivalent). the number of terms that constitutes four (4) undergraduate academic years. However, an eligible institution may not grant a scholarship renewal to a student for an academic year that ends later than six (6) years after the date the student received the initial scholarship under this chapter.
    SECTION 32. IC 21-13-4-3, AS ADDED BY P.L.2-2007, SECTION 254, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 3. Each scholarship awarded under this chapter:
        (1) may be renewed under this chapter for a total scholarship award that does not exceed the equivalent of eight (8) semesters; the number of terms that constitutes four (4) undergraduate academic years; and
        (2) is subject to other eligibility criteria as established by the commission.
    SECTION 33. IC 21-14-6-2, AS AMENDED BY P.L.51-2009, SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE SEPTEMBER 1, 2013]: Sec. 2. (a) This section applies to a public safety officer's child who is less than twenty-four (24) years of age on the date of the public safety officer's death. The children of a public safety officer who has been killed in the line of duty are exempt from the payment of tuition and regularly assessed fees for eight (8) semesters (or the equivalent) the number of terms that constitutes four (4) undergraduate academic years in which the children enroll at a state educational institution or state supported technical school. The children must be full-time students pursuing a prescribed course of study.
    (b) The maximum amount that an eligible applicant is exempt from paying for a semester hour is an amount equal to the cost of an

undergraduate semester credit hour at the state educational institution in which the eligible applicant enrolls.
    SECTION 34. IC 21-18.5-4-5, AS ADDED BY P.L.107-2012, SECTION 58, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2013]: Sec. 5. For purposes of administering this chapter, if the commission receives an offer of a gift, grant, devise, or bequest, the commission may accept a stipulation on the use of the donated funds. In this case, before September 1, 2014, IC 21-12-3-11 (higher education award) and IC 21-12-4-4 (freedom of choice grant), or, after August 31, 2014, the requirements under IC 21-12-1.7-3 concerning higher education awards and freedom of choice grants, do not apply. Before accepting a gift, grant, devise, or bequest, the commission shall determine that the purposes for which the donor proposes to provide funds are:
        (1) lawful;
        (2) in the state's best interests; and
        (3) generally consistent with the commission's programs and purposes.
If the commission agrees to a stipulation on the use of donated funds, the commission and the donor, subject to approval by the budget agency and the governor or the governor's designee, shall execute an agreement.
    SECTION 35. [EFFECTIVE UPON PASSAGE] (a) As used in this SECTION, the "commission" refers to the commission for higher education established in IC 21-18-2-1.
    (b) The commission shall study and evaluate the following issues:
        (1) The financial costs for students pursuing postsecondary education, including worker certifications, associate degrees, and baccalaureate degrees. The commission shall identify opportunities, methods, and strategies to increase the affordability of certification and degree programs in Indiana.
        (2)
On time degree completion rates for public and nonpublic Indiana colleges and universities. The commission shall identify opportunities, methods, and strategies to increase the percentage of students in Indiana who complete a degree on time.
    (c) Not later than November 1, 2013, the commission shall report its finding under subsection (b) to the legislative council in

an electronic format under IC 5-14-6.
    SECTION 36. An emergency is declared for this act.


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