LRB-2618/1
ARG&MES:wlj
2015 - 2016 LEGISLATURE
August 26, 2015 - Introduced by Representatives Knodl, Kremer, Kitchens,
Gannon, Murtha and R. Brooks, cosponsored by Senators Stroebel, Miller
and Wanggaard. Referred to Committee on Colleges and Universities.
AB314,1,10 1An Act to repeal 39.41 (1m) (a) 2., 39.41 (1m) (a) 3., 39.41 (1m) (a) 4., 39.41 (1m)
2(a) 6., 39.41 (1m) (h) and 39.41 (1m) (i); to renumber and amend 39.41 (1m)
3(d) and 39.41 (1m) (e); to amend 39.41 (1m) (a) 1., 39.41 (1m) (a) 5., 39.41 (1m)
4(b), 39.41 (1m) (c) 3., 39.41 (1m) (c) 4., 39.41 (1m) (g), 39.41 (1m) (j), 39.41 (2) (a),
539.41 (2) (b), 39.41 (2) (c), 39.41 (3) (a) and 39.41 (3) (b); and to create 39.41
6(3m), 71.07 (5p) and 71.10 (4) (cs) of the statutes; relating to: the amount of
7an academic excellence higher education scholarship, the number of those
8scholarships that may be awarded in an academic year, the eligibility criteria
9for those scholarships, and creating an individual income tax credit for certain
10academic scholarship recipients.
Analysis by the Legislative Reference Bureau
Under current law, the Higher Educational Aids Board (HEAB) administers
the Academic Excellence Higher Education Scholarship Program under which
HEAB awards scholarships to certain scholars, designated on the basis of grade
point average (GPA), who enroll, on a full-time basis, in a public or private
institution of higher education in this state. Under the program, an academic

excellence higher education scholarship recipient is exempt from up to $2,250 in
tuition and fees for each academic year that the recipient is enrolled full time,
maintains at least a 3.000 GPA, and makes satisfactory progress toward an associate
or a bachelor's degree or a vocational diploma.
Currently, the scholarships may be awarded to 1) the senior with the highest
GPA from each high school in this state enrolling at least 80 but fewer than 500
pupils; 2) the two seniors with the two highest GPAs from each high school in this
state enrolling at least 500 but fewer than 1,000 pupils; 3) the three seniors with the
three highest GPAs from each high school in this state enrolling at least 1,000 but
fewer than 1,500 pupils; 4) the four seniors with the four highest GPAs from each
high school in this state enrolling at least 1,500 but fewer than 2,000 pupils; 5) the
five seniors with the five highest GPAs from each high school in this state enrolling
at least 2,000 but fewer than 2,500 pupils; and 6) the six seniors with the six highest
GPAs from each high school in this state enrolling 2,500 or more pupils. In addition,
the scholarships may be awarded to the senior with the highest GPA from the school
operated by the Wisconsin Center for the Blind and Visually Impaired (WCBVI) and
the school operated by the Wisconsin Educational Services Program for the Deaf and
Hard of Hearing (WESPDHH), and not more than ten scholarships statewide may
be awarded to seniors with the highest GPAs from high schools enrolling fewer than
80 pupils.
This bill increases the amount of an academic excellence higher education
scholarship for a scholarship recipient attending a public institution of higher
education to 50 percent of the tuition and fees at that institution and increases the
amount of such a scholarship for a scholarship recipient attending a private
institution of higher education to 50 percent of the tuition and fees charged a resident
undergraduate student at the University of Wisconsin-Madison.
The bill also creates a nonrefundable individual income tax credit for a
scholarship recipient who graduates from an institution within the University of
Wisconsin System, a technical college district school, or a private institution of
higher education with a bachelor's degree, an associate degree, or vocational diploma
and who resides and works in this state.
The amount for which an individual may claim a credit, which is defined as an
"eligible amount," is an amount equal to 50 percent of all tuition and fees charged one
full-time student by the institution or school attended by the scholarship recipient
for the years in which the scholarship recipient received an academic excellence
higher education scholarship or, in the case of a scholarship recipient who attended
a private institution of higher education, an amount equal to 50 percent of the tuition
and fees charged one full-time resident undergraduate student at the University of
Wisconsin-Madison for the years in which the scholarship recipient received an
academic excellence higher education scholarship.
The credit may be claimed only for the five taxable years following the
claimant's graduation, and the claimant may claim only one-fifth of the eligible
amount each year. To claim the credit, a claimant must be a full-year resident of this
state for the year to which the claim relates, and the majority of the wages earned

by the claimant in the year to which the claim relates must have been earned in this
state.
Because the credit is nonrefundable, no refund is paid if the amount of credit
for which a claimant is eligible exceeds his or her tax liability.
In addition, the bill reduces the number of academic excellence higher
education scholarships that may be awarded in an academic year to one scholarship
for each high school with an enrollment of at least 300 pupils but fewer than 1,500
pupils, to two scholarships for each high school with an enrollment of 1,500 or more
pupils, and to not more than 70 scholarships statewide for high schools with
enrollments of fewer than 300 pupils. The bill, however, does not affect the
scholarships for schools operated by the WCBVI or the WESPDHH.
Finally, the bill requires a pupil to have a GPA of at least 3.500 and a score of
at least 30 on the American College Test (commonly referred to as the ACT) in order
to qualify for an academic excellence higher education scholarship. The bill,
however, does not apply the GPA and ACT score requirements to a pupil of a school
operated by the WCBVI or the WESPDHH.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB314,1 1Section 1. 39.41 (1m) (a) 1. of the statutes is amended to read:
AB314,3,102 39.41 (1m) (a) 1. For each high school with an enrollment of at least 80 300
3pupils but less fewer than 500 1,500 pupils, designate the senior with the highest
4grade point average in all subjects, but not less than 3.500 or the equivalent, and with
5a score of at least 30 on the American college test
as a scholar. If the senior with the
6highest grade point average in all subjects does not have a score of at least 30 on the
7American college test, the school board or governing body shall designate the senior
8with the next highest grade point average in all subjects, but not less than 3.500 or
9the equivalent, and with a score of at least 30 on the American college test as a
10scholar.
AB314,2 11Section 2. 39.41 (1m) (a) 2. of the statutes is repealed.
AB314,3 12Section 3. 39.41 (1m) (a) 3. of the statutes is repealed.
AB314,4
1Section 4. 39.41 (1m) (a) 4. of the statutes is repealed.
AB314,5 2Section 5. 39.41 (1m) (a) 5. of the statutes is amended to read:
AB314,4,103 39.41 (1m) (a) 5. For each high school with an enrollment of 2,000 1,500 or more
4pupils, designate the 5 2 seniors with the 5 2 highest grade point averages in all
5subjects, but not less than 3.500 or the equivalent, and with scores of at least 30 on
6the American college test
as scholars. If any of the seniors with the highest grade
7point average in all subjects does not have a score of at least 30 on the American
8college test, the school board or governing body shall designate the senior with the
9next highest grade point average in all subjects, but not less than 3.500 or the
10equivalent, and with a score of at least 30 on the American college test as a scholar.
AB314,6 11Section 6. 39.41 (1m) (a) 6. of the statutes is repealed.
AB314,7 12Section 7. 39.41 (1m) (b) of the statutes is amended to read:
AB314,4,2413 39.41 (1m) (b) Subject to par. (e), by February 25 of each school year, the school
14board of each school district operating one or more high schools and the governing
15body of each private high school and of each tribal high school may, for each high
16school with an enrollment of less fewer than 80 300 pupils, nominate the senior with
17the highest grade point average in all subjects, but not less than 3.500 or the
18equivalent, and with a score of not less than 30 on the American college test
who may
19be designated as a scholar by the executive secretary under par. (c) 3. If the senior
20with the highest grade point average in all subjects does not have a score of at least
2130 on the American college test, the school board or governing body shall nominate
22the senior with the next highest grade point average in all subjects, but not less than
233.500 or the equivalent, and with a score of at least 30 on the American college test
24for designation as a scholar.
AB314,8 25Section 8. 39.41 (1m) (c) 3. of the statutes is amended to read:
AB314,5,2
139.41 (1m) (c) 3. Designate not more than 10 70 seniors nominated under par.
2(b) as scholars.
AB314,9 3Section 9. 39.41 (1m) (c) 4. of the statutes is amended to read:
AB314,5,74 39.41 (1m) (c) 4. For each public, private, or tribal high school with an
5enrollment of at least 80 300 pupils, notify the school board of the school district
6operating the public high school or the governing body of the private or tribal high
7school of the number of scholars to be designated under par. (a).
AB314,10 8Section 10. 39.41 (1m) (d) of the statutes is renumbered 39.41 (1m) (d) 1. and
9amended to read:
AB314,5,2010 39.41 (1m) (d) 1. By February 25 of each school year, if 2 or more seniors from
11the same high school of at least 80 300 pupils have the same grade point average and,
12except for the limitation on the number of designated scholars, are otherwise eligible
13for designation under par. (a), the faculty of the high school shall select the applicable
14number of seniors for designation under par. (a) as scholars and shall certify, in order
15of priority, any remaining seniors with the same grade point average and with scores
16of at least 30 on the American college test
as alternates for the scholars or, if there
17is no remaining senior with the same grade point average and with a score of at least
1830 on the American college test
, any remaining seniors with the next highest grade
19point average, but not less than 3.800 3.500 or the equivalent, and with scores of at
20least 30 on the American college test
as alternates for the scholars.
AB314,6,8 212. If a senior from that high school designated as a scholar under par. (a) does
22not qualify for a higher education scholarship under sub. (2) (a) or (3) (a), an alternate
23for the scholar from the scholar's high school with the same grade point average as
24any senior from that high school designated as a scholar under par. (a) and with a
25score of at least 30 on the American college test
shall be eligible for a higher education

1scholarship as a scholar under sub. (2) (a) or (3) (a) until the scholarship may be
2awarded by the board. If an alternate with the same grade point average as a scholar
3under par. (a) and with a score of at least 30 on the American college test does not
4qualify for a higher education scholarship under sub. (2) (a) or (3) (a), an alternate
5with the next highest grade point average, but not less than 3.800 3.500 or the
6equivalent, and with a score of at least 30 on the American college test shall be
7eligible for a higher education scholarship as a scholar under sub. (2) (a) or (3) (a)
8until the scholarship may be awarded by the board.
AB314,11 9Section 11. 39.41 (1m) (e) of the statutes is renumbered 39.41 (1m) (e) 1. and
10amended to read:
AB314,6,1711 39.41 (1m) (e) 1. If 2 or more seniors from the same high school of less fewer
12than 80 300 pupils have the same grade point average and, except for the limitation
13of one nominated senior, are otherwise eligible for nomination under par. (b), the
14faculty of the high school shall select the senior who may be nominated by the school
15board of the school district operating the public high school or the governing body of
16the private or tribal high school for designation under par. (b) (c) 4. as a scholar by
17the executive secretary.
AB314,7,5 182. If that a senior is designated as a scholar by the executive secretary, but
19under par. (c) 4. does not qualify for a higher education scholarship under sub. (2) (a)
20or (3) (a), the faculty of the high school shall select, in order of priority, one or more
21of the remaining seniors with the same grade point average and with a score of at
22least 30 on the American college test
for certification as a scholar or, if there is no
23remaining senior with the same grade point average and with a score of at least 30
24on the American college test
, one or more of the remaining seniors with the next
25highest grade point average, but not less than 3.800 3.500 or the equivalent, and with

1a score of at least 30 on the American college test
for certification as a scholar, and
2the school board of the school district operating the high school or the governing body
3of the private or tribal high school shall certify to the board one or more of these
4seniors as eligible for a higher education scholarship as a scholar under sub. (2) (a)
5or (3) (a) until the scholarship may be awarded by the board.
AB314,12 6Section 12. 39.41 (1m) (g) of the statutes is amended to read:
AB314,7,157 39.41 (1m) (g) Notwithstanding par. (a), if a high school of at least 80 300 pupils
8closes or merges in the 1991-92 school year or in any school year thereafter, the
9school board of the school district operating the high school or the governing body of
10the private or tribal high school shall, subject to par. (d), for each of the 2 school years
11following the closure or merger, designate the same number of scholars from among
12the pupils enrolled in the high school at the time of closure or merger as the number
13of scholars designated for that high school in the school year the high school closed
14or merged. Any seniors designated under this paragraph shall be eligible for an
15original scholarship under this section.
AB314,13 16Section 13. 39.41 (1m) (h) of the statutes is repealed.
AB314,14 17Section 14. 39.41 (1m) (i) of the statutes is repealed.
AB314,15 18Section 15. 39.41 (1m) (j) of the statutes is amended to read:
AB314,7,2319 39.41 (1m) (j) In the event that If 2 or more seniors from the same high school
20of at least 80 300 pupils have the same grade point average and are otherwise eligible
21for designation under par. (a), the school board of the school district operating the
22high school or the governing body of the private or tribal high school shall make the
23designation of the faculty of the high school for purposes of par. (d) or (i).
AB314,16 24Section 16. 39.41 (2) (a) of the statutes is amended to read:
AB314,8,10
139.41 (2) (a) If a designated scholar under sub. (1m) is admitted to and enrolls,
2on a full-time basis, by September 30 of the academic year immediately following the
3school year in which the senior was designated a scholar, in an institution within the
4University of Wisconsin System or in a technical college district school that is
5participating in the program under this section, the scholar shall receive a higher
6education scholarship that exempts the scholar from 50 percent of all tuition and
7fees, including segregated fees, at the institution or district school for one year,
8except that the maximum scholarship for a scholar who receives an original
9scholarship for the 1996-97 academic year or for any academic year thereafter may
10not exceed $2,250 per academic year
.
AB314,17 11Section 17. 39.41 (2) (b) of the statutes is amended to read:
AB314,8,2312 39.41 (2) (b) For each year that a scholar who receives a scholarship under par.
13(a) is enrolled full time, maintains at least a 3.000 grade point average, or the
14equivalent as determined by the institution or district school, and makes satisfactory
15progress toward an associate degree, a bachelor's degree, or a vocational diploma, the
16student scholar shall be exempt from 50 percent of all tuition and fees, including
17segregated fees, in the subsequent year or, if the scholar does not enroll in a
18participating institution of higher education in the subsequent year, in the 2nd year
19following the year in which the scholar received the scholarship, except that the
20maximum scholarship for a scholar who receives an original scholarship for the
211996-97 academic year or for any academic year thereafter may not exceed $2,250
22per academic year
. No scholar is eligible for an exemption for more than 4 years in
23the University of Wisconsin System or more than 3 years at a district school.
AB314,18 24Section 18. 39.41 (2) (c) of the statutes is amended to read:
AB314,9,6
139.41 (2) (c) Subject to sub. (4), for each year the student that a scholar is
2exempt from tuition and fees under par. (a) or (b), the board shall pay the institution
3or district school, on behalf of the student scholar, an amount equal to 50% 25 percent
4of the student's scholar's tuition and fees, except that the maximum payment for a
5student who receives an original scholarship for the 1996-97 academic year or for
6any academic year thereafter may not exceed $1,125 per academic year
.
AB314,19 7Section 19. 39.41 (3) (a) of the statutes is amended to read:
AB314,9,178 39.41 (3) (a) If a designated scholar under sub. (1m) is admitted to and enrolls,
9on a full-time basis, by September 30 of the academic year immediately following the
10school year in which the senior was designated a scholar, in a private institution of
11higher education that is located in this state and participating in the program under
12this section, the board shall pay the institution, on behalf of the pupil scholar, an
13amount equal to 50% 25 percent of the tuition and fees charged a resident
14undergraduate at the University of Wisconsin-Madison in the same academic year,
15except that the maximum payment for a pupil who receives an original scholarship
16for the 1996-97 academic year or for any academic year thereafter may not exceed
17$1,125 per academic year
.
AB314,20 18Section 20. 39.41 (3) (b) of the statutes is amended to read:
AB314,9,2519 39.41 (3) (b) For each year that a scholar who receives a scholarship under par.
20(a) is enrolled full time, maintains at least a 3.000 grade point average, or the
21equivalent as determined by the private institution, and makes satisfactory progress
22toward a bachelor's degree, the student scholar is eligible for a higher education
23scholarship as determined under par. (a) in the subsequent year or, if the scholar does
24not enroll in a participating institution of higher education in the subsequent year,
25in the 2nd year following the year in which the scholar received the scholarship. No

1scholar is eligible for a higher education scholarship for more than 4 years at a
2private institution of higher education.
AB314,21 3Section 21. 39.41 (3m) of the statutes is created to read:
AB314,10,74 39.41 (3m) (a) In addition to receiving a scholarship under sub. (2), if the
5scholar graduates from an institution within the University of Wisconsin System or
6a technical college district school with a bachelor's degree, an associate degree, or a
7vocational diploma, the scholar may claim the credit under s. 71.07 (5p).
AB314,10,118 (b) In addition to receiving a scholarship under sub. (3), if the scholar graduates
9from a private institution of higher education located in this state with a bachelor's
10degree, an associate degree, or a vocational diploma, the scholar may claim the credit
11under s. 71.07 (5p).
AB314,22 12Section 22. 71.07 (5p) of the statutes is created to read:
AB314,10,1413 71.07 (5p) Academic scholarship tax credit. (a) Definitions. In this
14subsection:
AB314,10,1815 1. "Claimant" means an individual who files a claim under this subsection, who
16has received a scholarship under s. 39.41 (2) or (3), and who has graduated from the
17institution or school with regard to which he or she received the scholarship, as
18described in s. 39.41 (3m) (a) or (b).
AB314,11,219 2. "Eligible amount" means 50 percent of all tuition and fees, including
20segregated fees, that would have been charged to a single full-time student by the
21institution or school attended by an individual who received a higher education
22scholarship under s. 39.41 (2) for the years in which the individual received the
23scholarship under that subsection, or 50 percent of all tuition and fees charged a
24single full-time resident undergraduate at the University of Wisconsin-Madison for
25the years in which an individual who received a scholarship under s. 39.41 (3)

1attended a private institution of higher education located in this state for the years
2in which the individual received the scholarship under that subsection.
AB314,11,83 (b) Filing claims. Subject to the conditions and limitations provided in this
4subsection, a claimant may claim as a credit against the tax imposed under s. 71.02,
5up to the amount of those taxes, one-fifth of an eligible amount in the taxable year
6that immediately follows the year in which the individual graduates, as described in
7s. 39.41 (3m) (a) or (b), and an additional one-fifth of an eligible amount in each of
8the next 4 successive taxable years.
AB314,11,129 (c) Conditions and limitations. 1. No individual may file a claim under this
10subsection unless he or she submits to the department with his or her tax return, on
11a form prepared by the department, information regarding the calculation of that
12individual's eligible amount.
AB314,11,1613 2. No individual may file a claim under this subsection unless he or she was a
14full-year resident of this state in the year to which the claim relates, and the majority
15of the wages he or she earned during the year to which the claim relates were earned
16in this state.
AB314,11,1817 3. No credit may be allowed under this subsection unless it is claimed within
18the period specified under s. 71.75 (2).
AB314,11,2319 4. No individual may file a claim under this subsection for any taxable year
20other than the taxable year that begins immediately after the taxable year in which
21the claimant graduates from the institution or school with regard to which he or she
22received the scholarship, as described in s. 39.41 (3m) (a) or (b), and the next 4
23successive taxable years.
AB314,11,2524 (d) Administration. Subsection (5m) (d), as it applies to the credit under that
25subsection, applies to the credit under this subsection.
AB314,23
1Section 23. 71.10 (4) (cs) of the statutes is created to read:
AB314,12,22 71.10 (4) (cs) Academic scholarship tax credit under s. 71.07 (5p).
AB314,24 3Section 24. Initial applicability.
AB314,12,94 (1) Academic excellence higher education scholarships. The treatment of
5section 39.41 (1m) (a) 1., 2., 3., 4., 5., and 6., (b), (c) 3. and 4., (d), (e), (g), (h), (i), and
6(j), (2) (a), (b), and (c), (3) (a) and (b), and (3m) of the statutes first applies to students
7who enroll in an institution within the University of Wisconsin System, a technical
8college district school, or a private institution of higher education in the 2016-17
9academic year.
AB314,12,1110 (2) Academic scholarship tax credit. The treatment of section 71.07 (5p) first
11applies to taxable years beginning after December 31, 2017.
AB314,12,1212 (End)
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