HB 668 (As Introduced) - 1997 Regular Session

MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Universities and Colleges; Appropriations

By: Representative Guice

House Bill 668

AN ACT TO PROHIBIT CONVICTED FELONS FROM RECEIVING ANY FORM OF STATE FUNDED SCHOLARSHIP, FINANCIAL AID OR OTHER FORM OF EDUCATIONAL ASSISTANCE FOR HIGHER EDUCATION; TO AMEND SECTIONS 37-101-4, 37-106-21, 37-106-29, 37-106-31, 37-108-1, 37-143-5, 37-143-7, 37-143-9, 37-143-11, 37-143-13, 37-143-15, 37-143-17, 37-143-19 AND 37-145-15, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. Anyone convicted of committing a felony under the laws of this state shall not be eligible to receive any state supported financial aid or assistance for postsecondary education at any institution of higher learning.

SECTION 2. Section 37-101-4, Mississippi Code of 1972, is amended as follows:

37-101-4. There shall be a trusteeship, to be known as the Felix La Bauve Scholarship Trust, for the Felix La Bauve Scholarship that exists for the benefit of the University of Mississippi. The trusteeship shall be composed of three (3) persons. The initial composition of the trusteeship shall be the two (2) persons who last filled the position of La Bauve trustee on the Board of Trustees of State Institutions of Higher Learning and, as an ex officio voting member, the person holding the office of DeSoto County Superintendent of Education. The term of the trustee who served as La Bauve trustee on the Board of Trustees of State Institutions of Higher Learning from 1980-1984 shall be four (4) years. The term of the trustee who served in that position from 1984-1988 shall be eight (8) years. The term of each of the trustees shall begin on June 1, 1988.

At least one (1) month before the expiration of the term of a trustee, other than the DeSoto County Superintendent of Education, the trusteeship shall choose a successor who shall serve a term of eight (8) years. No trustee other than the DeSoto County Superintendent of Education shall serve more than one (1) term of office. Any person chosen as a trustee other than the Superintendent of Education shall be a resident of DeSoto County and shall hold an undergraduate degree from the University of Mississippi.

In case of the death, disability or resignation of any trustee, other than the DeSoto County Superintendent of Education, the trusteeship shall appoint a person to serve the remainder of the term of his predecessor who shall be a resident of DeSoto County and shall hold an undergraduate degree from the University of Mississippi.

The trusteeship shall be responsible for recommending to the Chancellor of the University of Mississippi prospective students who are eligible recipients of the La Bauve Scholarship. The Chancellor shall choose the best qualified student or students from those nominated, depending on the amount of monies available for scholarship awards.

The Legislature shall continue to appropriate the annual sum to the University of Mississippi that has been paid in lieu of the interest earned on the original corpus of the La Bauve Scholarship Fund until such time as the Legislature restores the original corpus of the fund, adjusted to current value at the time of restoration. Once the Legislature has restored the fund as hereinbefore provided, the annual appropriation shall cease, and scholarships shall be awarded from the income on the corpus of the fund. Thereafter, no expenditure shall be made from the corpus of the fund for any purpose.

No form of scholarship or other financial aid that is provided under this section shall be provided to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 3. Section 37-106-21, Mississippi Code of 1972, is amended as follows:

37-106-21. * * * (1) The annual award to any recipient may be paid as required by federal laws and regulations governing the Guaranteed Student Loan Program.

(2) Payments under this chapter shall be made by the State Treasurer upon certification by the board of final approval of the recipient of each loan.

(3) Payments shall be made directly to the approved institution attended or to be attended by the student named in such certificate by check made payable to both the student and the institution as required by laws governing the Guaranteed Student Loan Program.

(4) In the event a student on whose behalf an award has been paid shall not be enrolled and carrying a minimum academic load or program as of the fifteenth classroom day following the beginning of the term for which such award was paid, the institution shall refund to the state the amount paid on behalf of such student. If at any time during the period of the loan, the student withdraws and is entitled to any refund or remittance of fees or tuition, such amount shall be repaid into the fund.

(5) No form of scholarship or other financial aid provided under this section shall be provided to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 4. Section 37-106-29, Mississippi Code of 1972, is amended as follows:

37-106-29. (1) There is established the Mississippi Resident Tuition Assistance Grant Program for college or university freshmen, sophomores, juniors and seniors to be administered by the Mississippi Postsecondary Education Financial Assistance Board established under Section 37-106-9, Mississippi Code of 1972, which shall set the dates and deadlines for applying for an award under this section. The board shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this act.

(2) The college or university shall approve grants to full-time freshmen, sophomore, junior and senior Mississippi residents who meet the general requirements for student eligibility as provided in subsection (4) of this section.

(3) Mississippi Resident Tuition Assistance Grants shall be for Mississippi students from any Mississippi family whose prior year adjusted gross income (AGI) exceeds the maximum allowed to qualify for full Pell Grant eligibility and campus-based federal aid. Those Mississippi students receiving less than the full Pell Grant award, as determined by the institution, shall receive a Mississippi Resident Tuition Assistance Grant in an amount not to exceed the maximum Pell Grant allowable for that individual student. The award shall be applied to tuition, rooms and meals, books, materials and fees not to exceed One Thousand Dollars ($1,000.00) for junior and senior students attending state institutions of higher learning in Mississippi or four-year regionally accredited, state-approved, nonprofit colleges and universities in Mississippi, and Five Hundred Dollars ($500.00) for freshmen and sophomores attending state institutions of higher learning or public community or junior colleges in Mississippi, or regionally accredited, state-approved, nonprofit two-year or four-year colleges in Mississippi, which will be prorated per term, semester or quarter of the academic year for costs of attendance, calculated according to the formula specified in subsection (8) of this section.

(4) The general requirements for initial eligibility of students for Mississippi Resident Tuition Assistance Grants consist of the following:

(a) Member of a Mississippi family whose prior year adjusted gross income (AGI) exceeds the maximum allowed to qualify for Pell Grant eligibility and campus-based federal aid.

(b) Acceptance for enrollment at any state institution of higher learning or public community or junior college located in Mississippi, or any regionally accredited, state-approved, nonprofit four- or two-year college or university located in Mississippi as listed in subsection (d) of this Section 1: (i) graduation from high school with a minimum cumulative grade point average of 2.5 calculated on a 4.0 scale and has scored fifteen (15) on the American College Test Program (ACT); or (ii) has attended a home education program during grade levels 9 through 12, and has scored fifteen (15) on the American College Testing Program; or (iii) satisfactory completion of the General Educational Development Test (GED) or have successfully completed the International Baccalaureate Program and has scored fifteen (15) on the American College Testing Program; provided, however, that any student entering a vocational or technical program of study, or who has satisfactorily completed the General Education Development Test and attends a community or junior college will not be required to have a test score under the American College Testing Program except those students enrolled in courses of academic study. Any student currently enrolled in any qualified institution shall have to only meet the same requirements as students who are applying for a renewal award.

(c) Residence in Mississippi for no less than the four (4) years preceding the award of aid. Resident status for purposes of receiving grants under this act shall be determined in the same manner as resident status for tuition purposes as set forth in Sections 37-103-1 through 37-103-29.

(d) Must attend one of the following institutions of higher learning: Alcorn State University, Delta State University, Jackson State University, Mississippi State University, Mississippi University for Women, Mississippi Valley State University, University of Mississippi, University of Southern Mississippi, Coahoma Community College, Copiah-Lincoln Community College, East Central Community College, East Mississippi Community College, Hinds Community College, Holmes Community College, Itawamba Community College, Jones County Junior College, Meridian Community College, Mississippi Delta Community College, Mississippi Gulf Coast Community College, Northeast Mississippi Community College, Northwest Mississippi Community College, Pearl River Community College, Southwest Mississippi Community College, Belhaven College, Blue Mountain College, Millsaps College, Mississippi College, Rust College, Tougaloo College, William Carey College, Mary Holmes College, Magnolia Bible College and Wood College.

(e) No form of scholarship or other financial aid provided under this section shall be provided to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

(5) By accepting a Mississippi Resident Tuition Assistance Grant, the student is attesting to the accuracy, completeness and correctness of information provided to demonstrate the student's eligibility. Falsification of such information shall result in the denial of any pending grant and revocation of any award currently held to the extent that no further payments shall be made. Any student knowingly making false statements in order to receive a grant shall be guilty of a misdemeanor punishable, upon conviction thereof, by a fine of up to Ten Thousand Dollars ($10,000.00), a prison sentence of up to one (1) year in the county jail, or both, and shall be required to return all Mississippi Resident Tuition Assistance Grants wrongfully obtained.

(6) Eligibility for renewal of Mississippi Resident Tuition Assistance Grants shall be evaluated at the end of each semester, or term, of each academic year. As a condition for renewal, a student shall:

(a) Make steady academic progress toward a certificate or degree, as outlined in the school Satisfactory Academic Progress Standards and certified by the institution's registrar.

(b) Maintain continuous enrollment for not less than two (2) semesters or three (3) quarters in each successive academic year, unless granted an exception for cause by the administering agency; examples of cause may include student participation in a cooperative program, internship program or foreign study program. If a student fails to maintain continuous enrollment, and is not granted an exception for cause by the administering agency, the student shall be required to repay the amount of assistance received, plus interest at a rate of three percent (3%) below the prime interest rate, at the time of the student's failure to maintain continuous enrollment, or a minimum of three percent (3%), over a period of time established by the administering agency.

(c) Have a cumulative grade point average of at least 2.50 calculated on a 4.0 scale at the end of the first academic year, and thereafter maintain such a cumulative grade point average as calculated at the end of each academic year.

(7) Each student, each year, must complete a Free Application for Federal Student Aid form or a Statement of Certification as designed by the administering board to determine his/her eligibility for a Mississippi Resident Tuition Assistance Grant.

(8) (a) The amount of the Mississippi Resident Tuition Assistance Grant awarded to any one (1) student, up to the maximum amount provided in subsection (3) of this section, shall be the difference of the student's cost of attendance at his accredited college of choice and the amount of federal aid such student may receive, not to supplant but to supplement the amount of any federal aid awarded to the student. Cost of attendance is the tuition and fees of the applicable institution plus an allowance for room and meals and books and materials.

(b) Payment of the Mississippi Resident Tuition Assistance Grant shall be made payable to the recipient and the educational institution and mailed directly to the institution, to be applied first to tuition.

(9) In order for an institution to remain eligible for its students to participate in the Mississippi Resident Tuition Assistance Grant Program, the institution shall comply with the following requirements:

(a) A complete and accurate roster of the eligibility status of each awarded student shall be made to the board for each term, semester or quarter of the academic year the student receives a Mississippi Resident Tuition Assistance Grant.

(b) The institution is required to make refunds to the Mississippi Resident Tuition Assistance Grant Fund for any funds which have not been disbursed to the recipient, in the case of students who have received a grant but who terminate enrollment during the academic term, semester or quarter of the academic year if an institution's refund policies permit a student to receive a refund in such instance. The recipient shall be responsible for the refund of any funds which have been disbursed by the institution in such instance.

(c) If a student drops below full-time status but does not terminate all enrollment during the term, semester or quarter of the academic year no refund will be required for that term. However, that student is ineligible to receive the Mississippi Resident Tuition Assistance Grant during the following term, semester or quarter of the regular academic year.

(d) The board may conduct its own annual audits of any institution participating in the Mississippi Resident Tuition Assistance Grant Program. The board may suspend or revoke an institution's eligibility to receive future monies under the program if it finds that the institution has not complied with the provisions of this act. In determining a student's initial eligibility, the number of prior semesters enrolled will not be counted against the student.

(10) No student may receive a Mississippi Resident Tuition Assistance Grant for more than the equivalent semesters or quarters required to complete one (1) degree or certificate program per institution.

(11) Subject to the availability of funds specifically

appropriated therefor, it is the intent of the Legislature to

fully fund grant awards to eligible students. If funds are insufficient to fully fund grant awards to eligible students, grant awards shall be prorated among all eligible students. No student shall receive any combination of student financial aid in excess of the cost of attendance as defined in subsection (8)(a).

(12) No student receiving a Mississippi Eminent Scholars Grant as provided in Section 37-106-31 shall be eligible to receive the Mississippi Resident Tuition Assistance Grant pursuant to Section 37-106-29 unless he is eligible for such award after the Mississippi Eminent Scholars Grant has been considered by the board when conducting an assessment of the financial resources available to the student. In no case shall any student receive any combination of student financial aid that would exceed the cost of attendance, as defined in subsection (8)(a).

For purposes of this section, certificated shall mean but not be limited to all postsecondary vocational programs in eligible institutions as identified in subsection (4)(d) of this section.

SECTION 5. Section 37-106-31, Mississippi Code of 1972, is amended as follows:

37-106-31. (1) There is created a Mississippi Eminent Scholars Fund, to be administered by the Mississippi Postsecondary Education Financial Assistance Board established under Section 37-106-9, Mississippi Code of 1972. The board shall set the date that will serve as the deadline for applying for an award under this section and award scholarships to each Mississippi student who:

(a) (i) Is recognized by the merit or achievement programs of the National Merit Scholarship Corporation or the National Achievement Scholarship as a semifinalist or finalist, and has obtained a 3.5 grade point average on a 4.0 scale, or the equivalent, in high school subjects acceptable for credit toward a diploma; or

(ii) Has scored twenty-nine (29) on the American College Testing Program or its equivalent and has obtained a 3.5 grade point average on a 4.0 scale, or the equivalent in high school subjects acceptable for credit toward a diploma; or

(iii) Has attended a home education program during grade levels 9 through 12 and has scored twenty-nine (29) on the American College Testing Program or its equivalent; and

(iv) Has been certified by the college or university to the Mississippi Postsecondary Education Financial Assistance Board as a Mississippi Eminent Scholar.

(b) Meets the general requirements for student eligibility, except as otherwise provided in this section.

(c) Dependents of Mississippi residents who are on military or public service assignments away from Mississippi when such dependents live with such Mississippi residents and receive high school diplomas from non-Mississippi schools shall be exempted.

(d) Files an application for an award during his last year in high school within established time limits.

(e) Attends, on a full-time basis, any state institution of higher learning or public community or junior college, or any regionally accredited, state-approved, nonprofit four- or two-year college or university located in the State of Mississippi as listed in subsection (4)(d) of Section 37-106-29.

(f) Enrolls as a first-time-in-college student. Any student who earns postsecondary academic credit prior to or during the summer immediately subsequent to receiving a high school diploma, who is dually enrolled in secondary and postsecondary educational institutions, or who is enrolled in the early admission program of a postsecondary institution shall be exempt from this requirement.

(g) Is a resident of the State of Mississippi for no less than four (4) years preceding the award of aid.

(h) No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

(2) (a) Students who apply for awards no later than the date set by the Mississippi Postsecondary Education Financial Assistance Board as the deadline for applying for an award during their last year in high school may later reapply to receive awards during subsequent application periods when they do not accept their initial awards. Similarly, students who receive initial awards and who later do not accept renewal awards may reapply to receive awards during subsequent application periods. Students who apply under this paragraph must submit reinstatement applications within three (3) years of filing their initial applications. The institution shall accept reinstatement applications according to dates set by the Mississippi Postsecondary Education Financial Assistance Board and shall determine the eligibility of such applicants in the same manner as first-time applicants, except that students who apply pursuant to this paragraph shall be required to have maintained the equivalent of a 3.5 cumulative grade point average on a 4.0 scale for all college work attempted. The board shall not make awards to reinstatement applicants who submit applications that are received after the deadline set by the Mississippi Postsecondary Education Financial Assistance Board.

(b) The board shall create a renewal application for each student who received the award for one or more terms during the immediately preceding academic year.

(3) (a) The annual award to a student shall be up to Two Thousand Five Hundred Dollars ($2,500.00) for tuition and fees. Payment of the Mississippi Eminent Scholars Grant shall be made payable to the recipient and the educational institution and mailed directly to the institution, to be applied first to tuition.

(b) Within six (6) weeks of the end of regular registration, inclusive of a drop-add period, institutions shall certify to the board the eligibility status of each awarded student. The eligibility status of each student to receive a disbursement shall be determined by each institution as of this date. Institutions shall not be required to reevaluate a student's eligibility status after this date for purposes of amending eligibility determinations previously made. However, an institution shall be requested to make refunds for students who receive award disbursements and terminate enrollment for any reason during the academic term when an institution's refund policies permit a student to receive a refund under the circumstances.

(c) Institutions shall certify to the board the amount of funds disbursed to each student and shall remit to the board any undisbursed advances within sixty (60) days of the end of regular registration.

(4) A recipient shall maintain the equivalent of a 3.5 cumulative grade point average on a 4.0 scale, or shall maintain an approved equivalent student progress evaluation plan, on at least twelve (12) hours per quarter, trimester or semester in order to be eligible for a continuation of the award. No student may receive a Mississippi Eminent Scholars' Fund award for more than the equivalent semesters or quarters required to complete one (1) degree or certificate program per institution. The award may be renewed annually upon certification of eligibility by the eligible institutions that the recipient meets the necessary qualifications. If any recipient transfers from one university, community college or junior college to another, his award will be transferable, provided he is otherwise eligible for the award. If a student fails to maintain continuous enrollment, and is not granted an exception for cause by the administering agency, the student shall be required to repay the amount of assistance received, plus interest at a rate of three percent (3%) below the prime interest rate, at the time of the student's failure to maintain continuous enrollment, or a minimum of three percent (3%), over a period of time established by the administering agency.

(5) The board may conduct its own annual audits of any institution participating in the Mississippi Eminent Scholars Grant Program. The board may suspend or revoke an institution's eligibility to receive future monies under the program if it finds that the institution has not complied with the provisions of this act.

(6) For purposes of this section, certificated shall mean but not be limited to all postsecondary vocational programs in eligible institutions as identified in subsection (4)(d) of Section 37-106-29.

SECTION 6. Section 37-108-1, Mississippi Code of 1972, is amended as follows:

37-108-1. (1) If any member of the armed services, whose official house of record and residence is within the State of Mississippi, is officially reported as being either a prisoner of war or missing in action in Southeast Asia or has been a prisoner of a foreign government as the result of a military action against the United States naval vessel, Pueblo, his child or children shall be entitled to an eight-semester scholarship without cost, exclusive of books, food, school supplies, materials and dues or fees for extracurricular activities at any state-supported college or university of his choice within this state. However, no child will be entitled to receive benefits during any semester or quarter when said child has reached the age of twenty-three (23) years on the first day of said semester or quarter.

(2) The provisions of this chapter shall apply to the child or children of any member of the armed services who is officially reported as being either a prisoner of war or missing in action in Southeast Asia whose spouse was a resident of this state for a period not less than ten (10) years during her minority and is a resident or physically resides within this state and does continually reside within this state at the time of enrollment and during the enrollment, and is a resident or physically resides within this state as of April 9, 1973.

(3) It is further provided that the provisions of this chapter shall apply to the child or children of any person who was a resident of this state at the time he was inducted into the armed forces of the United States of America and who is either a former prisoner of war or officially reported as being a prisoner of war or missing in action in Southeast Asia and who, or his spouse if she was a resident of this state for a period of not less than ten (10) years during her minority, is a resident of this state and at the time of enrollment and during the enrollment of his child or children at any state-supported college or university in this state resided or resides in this state.

(4) No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in section 63-1-75 or any other laws of this state.

SECTION 7. Section 37-143-5, Mississippi Code of 1972, is amended as follows:

37-143-5. (1) There is hereby created the medical loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become physicians to obtain a medical education in the University of Mississippi School of Medicine, which will qualify them to become licensed, practicing physicians and surgeons.

(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards which may be made not to exceed the length of time required to complete the degree requirements and internship or residency.

(3) Loans made to applicants under this program may be made under similar terms and conditions as then current provisions of the Federal Guaranteed Student Loan Program, or its successor, as to the repayment of principal and interest. Such loans shall be eligible for deferment during attendance as a full-time student in an approved course of training. No interest shall accrue on such loan during the time the recipient is in such attendance. Such loans may be eligible for other deferments for such other causes as may be established by the board by rule and regulations not inconsistent with the foregoing.

(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:

(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation and internship or residency, or termination of attendance as a full-time student;

(b) In lieu of payment in full of both principal and interest, a loan recipient may elect to repay by entry into public health work at a state health institution as defined in Section 37-143-13(2), or community health centers that are grantees under Section 330 of the United States Public Health Service Act. Repayment under this option shall convert loan to scholarship, and discharge the same, on the basis of one (1) year's service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as shall be established by rule and regulation of the board of trustees. If at any time prior to the repayment in full of the total obligation the recipient abandons or abrogates repayment by this option, the provisions of Section 37-143-5(d) shall apply;

(c) In lieu of payment in full of both principal and interest, a loan recipient may elect to repay by entry into the practice of medicine in a primary health care field in an area outside of a metropolitan statistical area, as defined and established by the United States Census Bureau, and within a region ranking between 1 and 54, inclusively, on the Relative Needs Index of Five Factors for Primary Care Physicians, as annually determined by the State Board of Health, for a period of five (5) years. Repayment under this option shall convert loan to scholarship, and discharge the same on the basis of one (1) year's service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as shall be established by rule and regulation of the board of trustees. If at any time prior to the repayment in full of the total obligation the recipient abandons or abrogates repayment by this option, the provisions of Section 37-143-5(4)(d) shall apply;

(d) In the event of abandonment or abrogation of the options for repayment as provided for in Section 37-143-5(4)(b) and (c), the remaining balance of unpaid or undischarged principal and interest shall become due and payable over the remaining period of time as if the option provided for in Section 37-143-5(4)(a) had been elected upon graduation and internship or residency.

(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

(6) No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in section 63-1-75 or any other laws of this state.

SECTION 8. Section 37-143-7, Mississippi Code of 1972, is amended as follows:

37-143-7. (1) There is hereby created the dental loan or scholarship program. The purpose of such program shall be to enable eligible applicants who desire to become dentists to obtain a standard four-year education in the study of dentistry in the University of Mississippi School of Dentistry, which will qualify them to become licensed, practicing dentists.

(2) The Board of Trustees of State Institutions of Higher Learning shall establish, by rule and regulation, the maximum annual award which may be made under this program at an amount not to exceed the cost of tuition and other expenses, and shall establish the maximum number of awards, which may be made not to exceed the length of time required to complete the degree requirements.

(4) Loans made to applicants shall be made and based upon the following options for repayment or conversion to interest-free scholarships:

(a) Payment in full of principal and interest must be made in sixty (60) or less equal monthly installments, commencing one (1) month after graduation or termination of attendance as a full-time student;

(b) In lieu of payment in full of both principal and interest, a loan recipient may elect to repay by entry into public health work at a state health institution as defined in Section 37-143-13(2), or community health centers that are grantees under Section 330 of the United States Public Health Service Act. Repayment under this option shall convert loan to scholarship, and discharge the same, on the basis of one (1) year's service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as shall be established by rule and regulation of the board of trustees. If at any time prior to the discharge in full of the total obligation the recipient abandons or abrogates repayment by this option, the provisions of Section 37-143-7(4)(d) shall apply;

(c) In lieu of payment in full of both principal and interest, a loan recipient may elect to repay by entry into the practice of dentistry in an area outside of a metropolitan statistical area, as defined and established by the United States Census Bureau, and within a region ranking between 1 and 54, inclusively, on the Relative Needs Index of Four Factors for Dentists, as annually determined by the State Board of Health, for a period of five (5) years. Repayment under this option shall convert loan to scholarship and discharge the same on the basis of one (1) year's service for one (1) year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as shall be established by rule and regulation of the board of trustees. If at any time prior to the repayment in full of the total obligation the recipient abandons or abrogates repayment by this option, the provisions of Section 37-143-7(4)(d) shall apply;

(d) In the event of abandonment or abrogation of the options for repayment as provided for in Section 37-143-7(4)(b) and (c), the remaining balance of unpaid or undischarged principal and interest shall become due and payable over the remaining period of time as if the option provided for in Section 37-143-7(4)(a) had been elected upon graduation.

(5) The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

(6) No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 9. Section 37-143-9, Mississippi Code of 1972, is amended as follows:

37-143-9. There is created a program for advanced study in nursing. Scholarships are established and shall be allocated to students who: (a) have graduated from an accredited high school and from a school of nursing and are licensed registered nurses in Mississippi; and (b) are approved by the Board of Trustees of State Institutions of Higher Learning; and (c) enter into contract with the board of trustees and its successors in office, obligating themselves to pursue to completion the course of study agreed upon, and immediately following the completion of such work, to spend a period of time, equal to the period of study provided under the scholarship, in teaching nursing at any accredited school of nursing in Mississippi, approved by the board of trustees, or in performing other work in the interest of public health in the state, to be approved by the board of trustees. Such period of service, after completion of study under a scholarship, shall in no event be less than one (1) year.

In addition to a scholarship, any such student may be allocated a loan not to exceed One Thousand Dollars ($1,000.00) per month for each month of full-time study in a graduate nursing program. The repayment of the principal and interest of such loans shall be eligible for deferment during attendance as a full-time student in an approved program for advanced study in an accredited school of nursing. For any student who receives this loan, the student's contract with the board of trustees shall obligate the student, immediately following completion of the course of study, to repay the loan by teaching nursing for not less than two (2) years at any accredited school of nursing in Mississippi approved by the board of trustees. Such teaching service shall convert the loan to an interest-free scholarship, and discharge the same, on the basis of two (2) years of service for one-year's loan amount, or the appropriate proportion of the total outstanding balance of principal and interest, all as established by rule and regulation of the board of trustees. Any such student who fails to complete all of the teaching service obligation shall be liable to the board of trustees for the remaining balance of the principal and interest that remains undischarged.

The board of trustees shall establish such rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 10. Section 37-143-11, Mississippi Code of 1972, is amended as follows:

37-143-11. (1) The Legislature finds that there exists a critical shortage of teachers in many areas and communities in Mississippi. It is hereby declared to be the intention of the Legislature to attract and retain qualified teachers by awarding incentive loans to persons declaring an intention to serve in the teaching field and who actually render service to the state while possessing a regular teaching certificate with an appropriate major or subject area of concentration.

(2) There is hereby established the "William F. Winter Teacher Scholar Loan Program."

(3) To the extent of appropriations available, students who are enrolled in any baccalaureate degree-granting institution of higher learning in the State of Mississippi accredited by the Southern Association of Colleges and Schools and approved by the Mississippi Commission on College Accreditation, or any accredited nonprofit community or junior college, and who have expressed in writing a present intention to teach in (a) a critical teacher shortage area or subject area of concentration or (b) a critical teacher shortage geographic section of the state, shall be eligible for student loans to be applied to the costs of their college education. Persons who have been admitted to a teacher education program or subject areas of concentration as approved by the State Board of Education shall also qualify for loans at approved institutions.

(4) A freshman establishing initial eligibility shall be eligible for a maximum of four (4) annual loans and a senior shall be eligible for one (1) annual loan.

(5) The maximum annual loan shall be set by the Board of Trustees of State Institutions of Higher Learning at an amount not to exceed the cost of attendance at any baccalaureate degree-granting institution of higher learning in the State of Mississippi.

(6) The loans of persons who actually render service as certified teachers in (a) a critical teacher shortage area or subject area of concentration or (b) a critical teacher shortage geographic section of the state, as approved by the State Board of Education in Mississippi designated by the State Board of Education for a major portion of the school day for at least seventy-eight (78) school days during each of eight (8) school semesters of the ten (10) immediately after obtaining a baccalaureate degree, shall be converted to interest-free scholarships. Conversion shall be based on two (2) semesters of service for each year a loan was received.

(7) Persons failing to complete an appropriate program of study shall immediately become liable to the Board of Trustees of State Institutions of Higher Learning for the sum of all outstanding loans, except in the case of a deferral of debt for cause by the board, after which period of deferral, study may be resumed. Persons failing to meet teaching requirements in any required semester shall immediately be in breach of contract and become liable to the board for the amount of the corresponding loan received, with interest accruing at the current Stafford Loan rate at the time the breach occurs, except in the case of a deferral of debt for cause by the board, after which period of deferral, teaching duties required hereunder will be resumed. If the claim for payment of such loan is placed in the hands of an attorney for collection after default, then the obligor shall be liable for an additional amount equal to a reasonable attorney's fee.

(8) A loan made pursuant to this section shall not be voidable by reason of the age of the borrower at the time of receiving the loan.

(9) Failure to repay any loan and interest that becomes due shall be cause for the revocation of a person's teaching certificate by the State Department of Education.

(10) All monies repaid to the Board of Trustees of State Institutions of Higher Learning hereunder shall be added to the appropriations made for purposes of this section, and said appropriations shall not lapse.

(11) The Board of Trustees of State Institutions of Higher Learning with the concurrence of the State Board of Education shall jointly promulgate regulations necessary for the proper administration of this section.

(12) If insufficient funds are available for requested loans to a qualified student during any fiscal year, the Board of Trustees of State Institutions of Higher Learning shall make pro rata reductions in the loans made to qualifying applicants. Priority consideration shall be given to persons receiving previous loans and participating in the program.

(13) The Board of Trustees of State Institutions of Higher Learning shall make an annual report to the Legislature. Each said report shall contain a complete enumeration of the board's activities, loans or scholarships granted, names of persons to whom granted and the institutions attended by those receiving the same, the teaching location of applicants who have received their education and become certified teachers within this state as a result of said loans and/or scholarships. The board shall make a full report and account of receipts and expenditures for salaries and expenses incurred under the provisions of this section. The board shall, upon its records and any published reports, distinguish between those recipients who have breached their contracts but with the board's permission who have paid their financial obligations in full, and those recipients who have breached their contracts and remain financially indebted to the state.

(14) No form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 11. Section 37-143-13, Mississippi Code of 1972, is amended as follows:

37-143-13. (1) There is hereby established a health care professions' loan program. It is the intent of the Legislature that persons declaring an intention to work at certain state health institutions as nurses, nurse practitioners, nutritionists, dieticians, speech pathologists, psychologists, occupational therapists and physical therapists, shall be eligible for a loan for the purpose of acquiring an education in such professions. The board of trustees shall enter into contracts with applicants, providing that such loans may be discharged by working as a health care professional in a state health institution, as defined in this chapter, for a period of time after graduation equal to the period of study provided under the scholarship. Such contracts shall provide that for each year of service, the appropriate portion of the outstanding balance of principal and interest of such loan shall be converted to interest-free scholarships and discharged.

(2) "State health institution" shall mean any of the following: Mississippi State Hospital, Ellisville State School, East Mississippi State Hospital, Mississippi Children's Rehabilitation Center, North Mississippi Retardation Center, Hudspeth Retardation Center, South Mississippi Retardation Center, University of Mississippi Hospital, The Boswell Retardation Center, the State Board of Health, mental health/mental retardation facilities under the administration of a regional commission as established pursuant to Section 41-19-31 which are certified by the Department of Mental Health and health care facilities under the Department of Corrections.

(3) The board of trustees shall establish rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section, provided, however, that no form of scholarship or other financial aid provided under this section shall be awarded to any person who has been convicted of committing a felony as defined in Section 63-1-75 or any other laws of this state.

SECTION 12. Section 37-143-15, Mississippi Code of 1972, is amended as follows:

37-143-15. The Board of Trustees of State Institutions of Higher Learning is authorized and empowered to establish loan or scholarship programs of like character, operation and purpose to the foregoing enumerated programs to encourage the participation of eligible worthy persons in courses of instruction in its institutions, and in furtherance of such power and authority is authorized: to adopt and implement rules and regulations declaring and describing the goals and objectives of such loan or scholarship programs; to establish the eligibility requirements for entry into such program and required for continuing participation for succeeding years; to determine the maximum amount to be made available to recipients; to delineate the terms and conditions of contracts with recipients and establish the service requirements for such contracts, if any; to enter into contracts pertaining to such programs with recipients; to enter into loan agreements and other contracts with financial institutions or other providers of loan monies for scholarship or loan participants; and to allocate and utilize such funds as may be necessary for the operation of such loan or scholarship programs from the annual appropriation for student financial aid.

In issuing rules and regulations governing the administration of the Graduate Teacher Summer Scholarship (GTS) Program, the Board of Trustees of State Institutions of Higher Learning shall provide that certified teachers at the Columbia or Oakley Training Schools under the jurisdiction of the Department of Human Services shall be fully eligible to participate in said program.

SECTION 13. Section 37-143-17, Mississippi Code of 1972, is amended as follows:

37-143-17. In connection with the foregoing loan or scholarship programs, and in addition to the funding of the same through the use of state funds, the board of trustees is authorized to establish a loan or scholarship mechanism employing agreements to repay private sector loans for education or guaranteed student loans. As an alternative to the loan and scholarship systems described in the foregoing sections, the board of trustees is authorized to develop contractual relations with eligible applicants to repay, for and in behalf of such applicants, any or all outstanding private sector loans for education or guaranteed student loans, by undertaking to repay installments of interest and principal according to the requirement of such loans, so long as the applicants perform the terms of their loan or scholarship contracts with the board of trustees. The board of trustees may establish by rule and regulation the terms of such contracts so as to accomplish the purposes of the foregoing loan or scholarship programs, including, but not limited to: The maximum amount the board of trustees will undertake to repay; the maximum duration of the repayment arrangement or the period of required service; the geographical location for approved service; the nature of the service to be rendered; the needed professional occupations; the critical majors or subject areas of concentration; the criteria to determine need and the degree of need required for eligibility; and the scholastic achievement level required to be maintained by the student participants. The board of trustees may prescribe such other rules and regulations as it deems necessary and proper to carry out the purposes and intent of this section.

SECTION 14. Section 37-143-19, Mississippi Code of 1972, is amended as follows:

37-143-19. The Board of Trustees of State Institutions of Higher Learning is authorized to establish a consolidated revolving loan fund for the purpose of providing monies for the operation of all loan or scholarship programs authorized to the Board of Trustees of State Institutions of Higher Learning by this chapter, and to the Postsecondary Education Financial Assistance Board by the provisions of Chapter 106 of Title 37, Mississippi Code of 1972, and for the purpose of providing monies for the operation of such other loan programs as may be deemed appropriate and authorized by the Board of Trustees of State Institutions of Higher Learning from time to time for the furtherance of education of eligible applicants. The board shall be charged with the duty of directing the dispensing of such funds in a manner so as to best effectuate the purpose of this chapter. Any monies collected in the form of repayment of loans, both principal and interest, shall be deposited in this fund. The board of trustees is authorized to maintain such revolving fund in an official state depository and, in accordance with Section 27-105-21, Mississippi Code of 1972, shall invest such funds, less the amount required for current operation, at interest as required by said section. All interest earned on such investments shall likewise be deposited in said fund. From such revolving fund, the board of trustees shall provide the Postsecondary Education Financial Assistance Board such sums as shall be required to fulfill its role as lender of last resort to the Guarantee Student Loan program. The assets of the Postsecondary Education Financial Assistance Board, including cash and loans on hand, shall not exceed Five Hundred Thousand Dollars ($500,000.00), and repayments of principal and interest and all other revenue of such board shall be deposited in the fund created hereby.

From and after * * * July 1, 1991, the sums maintained in the respective revolving funds being repealed by Chapter 547, Laws, 1991, or other revolving funds being maintained by the board of trustees shall become and constitute the monies of the consolidated revolving fund created by this section, wherever such funds may be physically located. The board of trustees is hereby authorized to transfer said funds to an official state depository, as aforesaid.

SECTION 15. Section 37-145-15, Mississippi Code of 1972, is amended as follows:

37-145-15. To be eligible to receive a loan under this chapter, the applicant must have been a bona fide resident of the State of Mississippi for three (3) consecutive years immediately preceding the date of the loan application and must be enrolled or accepted for enrollment by a public or private junior college, community college or institution of higher learning accredited by an appropriate accrediting body acceptable to the board of trustees.

SECTION 16. This act shall take effect and be in force from and after July 1, 1997.