HB 643-FN – AS INTRODUCED
2013 SESSION
04/10
HOUSE BILL 643-FN
AN ACT establishing a science, technology, engineering, and mathematics scholars program.
This bill establishes a science, technology, engineering, and mathematics (STEM) scholars program to be administered by the university system of New Hampshire board of trustees to provide partial scholarships to students pursuing either a 2-year or 4-year degree in a STEM field at a public postsecondary educational institution in New Hampshire who agree to work in New?Hampshire after graduation in a STEM field for a minimum of 5 years.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
13-0707
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Thirteen
AN ACT establishing a science, technology, engineering, and mathematics scholars program.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Paragraph; University System of New Hampshire; Board of Trustees. Amend RSA 187-A:16 by inserting after paragraph XXIII the following new paragraph:
XXIV. Administer, at no cost to the state, all aspects of the science, technology, engineering, and mathematics (STEM) scholars program established in RSA 200-N.
2 New Chapter; Science, Technology, Engineering, and Mathematics (STEM) Scholars Program. Amend RSA by inserting after chapter 200-M the following new chapter:
SCIENCE, TECHNOLOGY, ENGINEERING, AND
MATHEMATICS (STEM) SCHOLARS PROGRAM
200-N:1 Program Established. There is hereby established the science, technology, engineering, and mathematics (STEM) scholars program which shall be administered by the university system of New Hampshire board of trustees. The purpose of this program is to provide partial scholarships to students pursuing either a 2-year or 4-year degree in a STEM field at a public postsecondary educational institution in New Hampshire who agree to work in New Hampshire after graduation in a STEM field for a minimum of 5 years. All funds received pursuant to this chapter shall be nonlapsing and continually appropriated to the university system of New Hampshire for the purposes of this program.
200-N:2 Program Criteria.
I. Any student attending a public or private high school in New Hampshire who is interested in pursuing either a 2-year or 4-year degree in a STEM field at any public postsecondary educational institution in New Hampshire and whose family income is less than 200 percent of the state median family income based on the most recent calculations by the United States Department of Commerce, Census Bureau, shall be eligible to apply for this program. An eligible student shall submit an application to the university system of New Hampshire board of trustees, on a form developed by the board of trustees.
II. Applicants who are selected to receive a scholarship under this program shall receive a scholarship for 75 percent of applicable tuition and academic fees at an institution in the university system of New?Hampshire, and 100 percent of applicable tuition and academic fees at an institution in the community college system of New Hampshire. The scholarship shall be for a maximum of 4 academic years.
III. Applicants selected to receive a scholarship under this program shall complete an internship requirement in a STEM field as provided by the university system of New Hampshire board of trustees and shall agree to work in New Hampshire after graduation in a STEM field for at least 5 years.
200-N:3 STEM Scholars Fund Established. There is hereby established in the office of the state treasurer a fund to be known as the STEM scholars fund. The fund shall include any sums appropriated for such purpose. In addition, the university system of New Hampshire board of trustees may accept public sector and private sector grants, gifts, or donations of any kind for the purpose of funding the provisions of this chapter. The moneys in this fund shall be nonlapsing and shall be continually appropriated to the higher education commission. The fund may be expended by the university system of New Hampshire board of trustees to award partial scholarships to selected students pursuing studies in a STEM field in accordance with this chapter. The state treasurer may invest moneys in the fund as provided by law, with interest received on such investment credited to the fund.
200-N:4 Rulemaking. The university system board of trustees shall adopt rules, pursuant to RSA 541-A, relative to the following:
I. Establishing a definition of the specific disciplines in science, technology, engineering, and mathematics that constitute acceptable STEM fields and a definition of the specific types of employment that would qualify as STEM employment.
II. Instituting a scholarship application process, which includes but is not limited to requiring that all applicants complete a formal scholarship application on appropriate forms to be developed by the board of trustees and time frames for the application process.
III. Procedures for awarding and disbursing scholarships.
IV. Procedures for determining the amount of funds available to provide annual scholarships.
V. Establishing a procedure requiring students accepting a scholarship under this program to sign an agreement to work in New Hampshire after graduation in a STEM field for a minimum of 5 years. Such agreement shall clearly set forth the terms of the 5-year commitment and the repayment obligation incurred by the student if the 5-year commitment is not fulfilled.
VI. A procedure for tracking students in the program and for tracking graduates of the program to ensure the conditions of the program are fulfilled.
VII. Rules establishing the terms of the repayment obligation if the student fails to work in New Hampshire for the required 5 years
VIII. Any other issue which the board deems relevant to the implementation and administration of the scholarship program.
3 New Subparagraph; Application of Receipts; STEM Scholars Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (310) the following new subparagraph:
(311) Moneys deposited in the STEM scholars fund established in RSA 200-N:3.
4 Effective Date. This act shall take effect 60 days after its passage.
LBAO
13-0707
Revised 02/22/13
HB 643 FISCAL NOTE
AN ACT establishing a science, technology, engineering, and mathematics scholars program.
FISCAL IMPACT:
The University System of New Hampshire and the Community College System of New Hampshire state this bill, as introduced, may increase state restricted revenue and expenditures by an indeterminable amount in FY 2014 and each year thereafter. There will be no fiscal impact on county and local revenue and expenditures.
METHODOLOGY:
This bill establishes a scholarship program for students pursuing either a two- or four-year degree in a science, technology, engineering, or mathematics (STEM) field at a public postsecondary institution in the state of New Hampshire. The scholarship will be equal to 75 percent of applicable tuition and academic fees at an institution within the University System of New Hampshire, and 100 percent of applicable tuition and academic fees at an institution within the Community College System of New Hampshire. In order to be eligible for the scholarship, a student must be attending a public or private high school in New Hampshire and have family income less than 200 percent of the state median family income. In addition, the student must complete an internship requirement in a STEM field, and commit to working in New Hampshire in a STEM field for a minimum of five years after graduation. The scholarship is for a maximum of four academic years. The bill states the program shall be administered by the University System of New Hampshire, and establishes a STEM scholars fund which shall include any sums appropriated for such purpose. In addition, the University System board of trustees may accept grants, gifts, and donations for the purpose of funding the bill’s provisions. The bill itself does not contain an appropriation.
The System states that it is difficult to estimate the costs of the program because the following elements cannot be accurately forecasted:
• the number of eligible students interested in committing to work in NH for at least five years immediately after graduation;
• the number of students who will not be able to follow through on the five-year employment commitment, due to insufficient job openings or some other factor;
• the actual recovery of scholarship money distributed to students who leave a degree program before graduation, or fail to meet the five-year employment commitment;
• the cost and feasibility of providing internships to all participating students; and
• the cost of administering the program, particularly the post-graduation monitoring of graduates and recovery efforts directed at non-compliant participants.
With the above caveats in mind, the System makes the following assumptions when estimating the bill’s fiscal impact. The System assumes:
• the bill applies only to first-time, full-time freshman attending a New Hampshire high school, and not to existing USNH students, part-time students, or transfer students;
• the phrase “any student attending a public or private high school in New Hampshire” means any student currently enrolled in such a school;
• there will be no attrition or transfer out of the program during the maximum four years of program eligibility;
• administrative costs of monitoring the five-year residency requirement will not be incurred until 2018 and so are beyond the scope of this fiscal note;
• there will be ten percent annual growth in participation;
• any funds to be recovered for early withdrawal or non-compliance with the five-year employment requirement will be the liability of the student and not the University System; and
• estimated weighted average FY 2013 in-state tuition and fees for STEM program participants, across all University System institutions, equals $14,000. Tuition will remain unchanged in FY 2014 and FY 2015, and will rise by three percent to $14,420 in FY 2016, and by another three percent to $14,853 in FY 2017.
The System states that during FY 2013, there were 420 first-time, full-time, two- and four-year STEM program students within the University System meeting the criteria specified by the bill. Applying the ten percent annual growth rate mentioned above, and assuming all eligible students are granted a scholarship, the System projects the bill will result in the following scholarship costs beginning in FY 2014:
FY 2014 |
FY 2015 |
FY 2016 |
FY 2017 | |
Number of new students entering program |
462 |
508 |
559 |
615 |
Cumulative number of students |
462 |
970 |
1529 |
2144 |
Scholarship costs (annual tuition * 75 percent * cumulative # of students) |
$4,851,000 |
$10,185,000 |
$16,536,135 |
$23,883,624 |
In addition, the System states that although it has not estimated the cost of administering the program, these costs may be substantial. The System assumes that any such costs will be covered by the funds appropriated by the state to run the program. The System further states it has not estimated the cost of the internship requirement, as it is unclear if the System will be able to provide a sufficient number of internships to meet the requirement.
The Community College System of New Hampshire states that with the availability of scholarships, the bill will likely increase the number of students who attend community colleges within the System, resulting in an increase in revenue. The System states the bill will likely increase tuition and fee revenue by an indeterminable amount beginning in FY 2014.