1.1 	A bill for an act
1.2 	relating to higher education; regulating the state
1.3 	grant program; amending Minnesota Statutes 2004,
1.4 	section 136A.121, subdivisions 5, 6, 9.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 136A.121,
1.7 	subdivision 5, is amended to read:
1.8 		Subd. 5.Grant stipends.  The grant stipend shall be
1.9 	based on a sharing of responsibility for covering the recognized
1.10 	cost of attendance by the applicant, the applicant's family, and
1.11 	the government.  The amount of a financial stipend must not
1.12 	exceed a grant applicant's recognized cost of attendance, as
1.13 	defined in subdivision 6, after deducting the following:
1.14 	(1) the assigned student responsibility of at least 46 45 
1.15 	percent of the cost of attending the institution of the
1.16 	applicant's choosing;
1.17 	(2) the assigned family responsibility as defined in
1.18 	section 136A.101; and
1.19 	(3) the amount of a federal Pell grant award for which the
1.20 	grant applicant is eligible.
1.21 	The minimum financial stipend is $100 per academic year.

1.22 	Sec. 2. Minnesota Statutes 2004, section 136A.121,
1.23 	subdivision 6, is amended to read:
1.24 		Subd. 6.Cost of attendance.  (a) The recognized cost of
1.25 	attendance consists of allowances specified in law an allowance 
2.1 	for living and miscellaneous expenses of $5,405, and an
2.2 	allowance for tuition and fees equal to the lesser of the
2.3 	average tuition and fees charged by the institution, or the 
2.4 	tuition and fee maximums established in law of $9,477 for fiscal
2.5 	year 2006 and $9,998 for fiscal year 2007 for four-year
2.6 	institutions and maximums set by law for two-year institutions.
2.7 	(b) For a student registering for less than full time, the
2.8 	office shall prorate the cost of attendance to the actual number
2.9 	of credits for which the student is enrolled.
2.10 	The recognized cost of attendance for a student who is
2.11 	confined to a Minnesota correctional institution shall consist
2.12 	of the tuition and fee component in paragraph (a), with no
2.13 	allowance for living and miscellaneous expenses.
2.14 	For the purpose of this subdivision, "fees" include only
2.15 	those fees that are mandatory and charged to full-time resident
2.16 	students attending the institution.

2.17 	Sec. 3. Minnesota Statutes 2004, section 136A.121,
2.18 	subdivision 9, is amended to read:
2.19 		Subd. 9.Awards.  An undergraduate student who meets the
2.20 	office's requirements is eligible to apply for and receive a
2.21 	grant in any year of undergraduate study unless the student has
2.22 	obtained a baccalaureate degree or previously has been enrolled
2.23 	full time or the equivalent for eight ten semesters or the
2.24 	equivalent, excluding courses taken from a Minnesota school or
2.25 	postsecondary institution which is not participating in the
2.26 	state grant program and from which a student transferred no
2.27 	credit.  A student enrolled in a two-year program at a four-year
2.28 	institution is only eligible for the tuition and fee maximums
2.29 	established by law for two-year institutions.

2.30 	Sec. 4. EFFECTIVE DATE.
 2.31 	Sections 1 to 3 are effective July 1, 2005.