In this subtitle the following words have the meanings indicated. “HBCU” means the following historically black colleges and universities: Bowie State University; Coppin State University; Morgan State University; and University of Maryland Eastern Shore. “Program” means the James Proctor Scholarship Program.

There is a James Proctor Scholarship Program in the State.

The purpose of the Program is to award scholarships to students who attend an HBCU.

Each HBCU shall apply funding from the Program to the tuition and fees of an enrolled student who is a resident of the State. Any student financial aid, other than a student loan, received by a student who receives a scholarship under the Program shall be applied first to pay the student’s tuition and fees.

Each HBCU shall administer the Program on its campus and shall adopt policies, subject to the requirements of this subtitle, to establish: Eligibility requirements for a student receiving a scholarship under the Program; Award amounts to be given to eligible students; A procedure and schedule for the payment of the scholarship award provided to an eligible student; and Any other policies necessary for the implementation of the Program.

The Governor shall include in the annual budget bill an appropriation of at least $400,000 to the Program for scholarship awards. These funds appropriated under subsection (a) of this section shall be divided and distributed equally to each HBCU.