CHEYENNE - Using a rare parliamentary maneuver, lawmakers Thursday revived a bill that would allow students who lose their Hathaway scholarships because of poor performance to get back into the program.

Senate File 21 died earlier this week when a House-Senate conference committee failed to reach a compromise on a controversial House amendment.

On Thursday, the House breathed life back into the legislation by removing the amendment and sending the bill to a second conference committee, where it was approved.

Because the unamended bill already received the blessing of the House and the Senate, it goes straight to Gov. Dave Freudenthal for his signature.

"I think there will be a lot of happy college students and their families," said Sen. Mike Massie, D-Laramie, who served on the conference committee.

SF 21 would provide a safety net for recipients of the state-funded Hathaway scholarships by allowing them to regain lost awards by improving their performance at their own expense.

The controversial House amendment took it a step further, allowing Hathaway scholars to increase their awards by earning a 3.4 grade point average through 60 straight credits, or about two academic years. Supporters of the amendment said it would provide an incentive for college students to work hard, but opponents insisted that the $400 million Hathaway endowment is struggling to handle the current load of students.

By one estimate, the endowment could run a $2 million deficit by 2010. The added expense of the amended SF 21 could grow that amount by $600,000 to $900,000 per year, according to estimates from the state treasurer's office.

"We're going to be tight just paying the scholarships that are out there right now," said Sen. Kit Jennings, R-Casper, a member of the conference committee.

The initial conference committee opted to kill the bill rather than saddle the endowment with the increased expense. But supporters said it was too important to simply let it die.

Rep. Sue Wallis, R-Recluse, who served on the second conference committee, said she was relieved that the bill has been revived with the "essentials still intact."

She pledged to sponsor an amendment in the future that would include provisions in the lost amendment, which she sponsored.

"I'll be back next year," she said.

The Legislature created the Hathaway Scholarship Program two years ago and funded it with $400 million in surplus mineral revenue. More than 1,800 students received Hathaway scholarships in 2006-07, which are based on academic performance in high school.

Legislators added another $50 million in coal bonus funds to the endowment this budget session.

Lawmakers plan a study of the program before next year's session.

Reach capital bureau reporter Jared Miller at (307) 632-1244 or at {M3jared.miller@trib.com.