(a) Notwithstanding the provisions of § 49-4-905(b)(2) to the contrary, a student who graduates from a high school located in a neighboring state in a county contiguous to this state shall be eligible for a Tennessee HOPE scholarship as an entering freshman if the student:

(1) Has been a Tennessee resident, as defined by regulations promulgated by the board of regents under § 49-8-104, for one (1) year immediately preceding the date of graduation from high school and remains a Tennessee resident between graduation from high school and enrollment in an eligible postsecondary institution;

(2) Is not ineligible for the scholarship under § 49-4-904;

(3) Attains a composite ACT score of at least 21 on any single ACT test date or a concordant equivalent score on the SAT on any single SAT test date;

(4) Applies for a Tennessee HOPE scholarship; and

(5) Is admitted to and enrolls in an eligible postsecondary institution no later than sixteen (16) months after graduation from high school.

(b) If a student meets the eligibility requirements of subsection (a), but chooses to attend a regionally accredited postsecondary institution located outside of this state without a Tennessee HOPE scholarship, then the student shall be eligible for a HOPE scholarship as a transfer student; provided, that the student meets all requirements of § 49-4-929, other than any requirement pertaining to the type of high school from which the student graduated.

(c) A student who is eligible for a Tennessee HOPE scholarship under this section shall not be eligible for a general assembly merit scholar supplemental award under § 49-4-916.

(d) No retroactive award of a Tennessee HOPE scholarship shall be made under this section.