ASSEMBLY, No. 2679

STATE OF NEW JERSEY

INTRODUCED JANUARY 29, 1997

By Assemblymen WOLFE and Bodine

An Act concerning the use of unclaimed State Lottery Prize money for certain student aid programs and amending P.L.1970, c.13.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1.    Section 17 of P.L.1970, c.13 (C.5:9-17) is amended to read as follows:

    17. a. Unclaimed prize money for the prize on a winning ticket or share shall be retained by the director for the person entitled thereto for 1 year after the drawing in which the prize was won. If no claim is made for said money within such year, the prize money shall be allocated to State institutions and State aid for education in the same manner as lottery revenues are allocated for such purposes under this act; except that the first $13,000,000 of unclaimed prize money which becomes available during the remainder of the fiscal year in which P.L.  , c. (C. ) (now pending before the Legislature as this bill) takes effect and in each fiscal year thereafter shall be allocated to the Office of Student Assistance, in, but not of, the Department of Treasury.

    b. The $13,000,000 of unclaimed prize money shall annually be appropriated to the Office of Student Assistance to be used to provide additional grant awards under the Garden State Scholarship Program. The scholarship awards shall be used to pay the tuition and fees at a public institution of higher education located within the State or up to $3,000 toward tuition at an independent institution of higher education location within the State. Students eligible to receive awards under the expanded Garden State Scholarship program shall:

    (1) meet the residency requirements as established by the Student Assistance Board;

    (2) maintain a "B" average in core curriculum subjects in high school;

    (3) have an annual household family income not to exceed $100,000; and,

    (4) apply first for all other forms of State and federal student assistance grants and scholarships and be determined ineligible for financial assistance, excluding State and federal loan programs;

    c. A scholarship awarded pursuant to P.L ., c. (C. ) ( now pending before the Legislature as this bill), shall not, in combination with any other State and federal financial aid awarded to the student, exceed the cost of attendance as determined by the institution of higher education. The scholarships shall not supplement existing scholarship awards. In the event that the amount appropriated is insufficient for full awards to all eligible applicants, the Student Assistance Board shall reduce awards equitably among eligible students according to such procedures and guidelines as it may find appropriate.

    d. The Office of Student Assistance shall not use more than 2% of the total amount appropriated in any year to pay the cost it incurs in administering the scholarship program.

    e. The Student Assistance Board shall, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations necessary to effectuate the purposes of this act.

(cf: P. L.1970, c.13, s.17)

    2. This act shall take effect immediately.

STATEMENT

    This bill dedicates the first $13 million in unclaimed lottery prize funds for the expansion of the Garden State Scholarship Program. In order for a student to be eligible to receive a scholarship award, the student must be a resident of the State, maintain a "B" average in core curriculum courses in high school, attend a public or private institution of higher education in the State, and come from a family with a household income of not more than $100,000. Under the expanded Garden State Scholarship Program the scholarships awarded will pay the tuition and fees at a State public institution of higher education or up to $3,000 toward tuition at a State independent institution of higher education. The bill allows the Office of Student Assistance to use up to two percent of the annual appropriation to pay for the additional salaries and equipment needed to administer the expanded program. The bill specifies that the funding provided by this act is not meant to supplement existing awards to current students.

Expands the Garden State Scholarship Program using unclaimed lottery prize funds.