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Minnesota Legislature

Office of the Revisor of Statutes

HF 222

as introduced - 90th Legislature (2017 - 2018) Posted on 01/17/2017 11:20am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/12/2017

Current Version - as introduced

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A bill for an act
relating to higher education; establishing a state educational service award for
certain volunteers; appropriating money; proposing coding for new law in
Minnesota Statutes, chapter 136A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [136A.1261] STATE EDUCATIONAL SERVICE AWARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Federal education award" means an educational award under United States Code,
title 42, chapter 129, subchapter I, division D.
new text end

new text begin (c) "Maximum federal award" means the maximum award that may be disbursed to pay
current education expenses under United States Code, title 42, chapter 129, subchapter I,
division D, section 12604, paragraph (c).
new text end

new text begin (d) "Qualifying student loan" means:
new text end

new text begin (1) a federal student loan under United States Code, title 20, chapter 28;
new text end

new text begin (2) a loan issued under sections 136A.15 to 136A.1787; or
new text end

new text begin (3) a commercial loan used to pay for qualifying educational expenses.
new text end

new text begin (e) "Qualifying educational expenses" means tuition, fees, and other education expenses
associated with attending an institution of higher education that has in effect a program
participation agreement under United States Code, title 20, chapter 28, subchapter IV, part
F, section 1094.
new text end

new text begin (f) "Qualifying job training expenses" means expenses incurred in enrolling in an
educational institution or training establishment approved under United States Code, title
38, chapter 36, for offering programs of education, apprenticeship, or on-the-job training.
new text end

new text begin (g) "State educational service award" means an award provided under this section.
new text end

new text begin Subd. 2. new text end

new text begin Program established. new text end

new text begin The commissioner must establish a program to provide
state educational service awards to eligible applicants, as provided in this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) An applicant is eligible for a state educational service award if
the office finds that the applicant:
new text end

new text begin (1) is a resident of the state of Minnesota; and
new text end

new text begin (2) on or after July 1, 2017, completed an AmeriCorps or AmeriCorps VISTA program
and earned a federal education award.
new text end

new text begin (b) An applicant is eligible for one state educational service award for each federal
education award earned after July 1, 2017.
new text end

new text begin Subd. 4. new text end

new text begin Application. new text end

new text begin To be considered for an award, an applicant must apply for an
award in a form and manner specified by the commissioner.
new text end

new text begin Subd. 5. new text end

new text begin Allocation. new text end

new text begin Awards must be granted on a funds-available basis to applicants
who meet the eligibility requirements.
new text end

new text begin Subd. 6. new text end

new text begin Insufficient appropriation. new text end

new text begin Notwithstanding subdivision 5, if the commissioner
estimates that the appropriation for awards under this section is insufficient to cover the
projected demand, the commissioner must reduce award amounts proportionally to ensure
sufficient funding.
new text end

new text begin Subd. 7. new text end

new text begin Award availability. new text end

new text begin A recipient may use a state educational service award up
to seven years after the day the recipient completed a service program listed in subdivision
3, paragraph (a), clause (2).
new text end

new text begin Subd. 8. new text end

new text begin Authorized uses of award funds. new text end

new text begin A recipient may use an award to pay for the
following qualifying expenditures:
new text end

new text begin (1) to repay a qualifying student loan;
new text end

new text begin (2) to pay for qualifying educational expenses at a postsecondary educational institution;
and
new text end

new text begin (3) to pay for qualifying job training expenses.
new text end

new text begin Subd. 9. new text end

new text begin Award amount. new text end

new text begin (a) Except as provided in subdivision 6, a recipient's state
educational service award is equal to one-half of the amount of the recipient's federal award.
new text end

new text begin (b) An award recipient who applies part, but not all, of an award towards a qualifying
expenditure may use the remaining amount of the award for one or more additional qualifying
expenditures. The commissioner must maintain a record of a recipient's remaining award
balance until the award is no longer available to the recipient under subdivision 7.
new text end

new text begin Subd. 10. new text end

new text begin Amount of eligible expenses. new text end

new text begin (a) The maximum amount of a state educational
service award that a recipient may apply towards a qualifying expenditure is the lesser of:
new text end

new text begin (1) the recipient's state educational service award; or
new text end

new text begin (2) the sum of paragraph (b), clause (2); paragraph (c), clause (2); and paragraph (d),
clause (2).
new text end

new text begin (b) The maximum amount a recipient may apply towards qualifying educational expenses
is the lesser of:
new text end

new text begin (1) the recipient's state educational service award; or
new text end

new text begin (2) the recipient's maximum federal award less the amount of the recipient's federal
award applied towards the education expenses.
new text end

new text begin (c) The maximum amount a recipient may apply towards qualifying student loans is the
lesser of:
new text end

new text begin (1) the recipient's state educational service award; or
new text end

new text begin (2) the balance remaining on the recipient's qualifying student loans after the application
of the recipient's federal award.
new text end

new text begin (d) The maximum amount a recipient may apply towards a qualifying job training
program is the lesser of:
new text end

new text begin (1) the recipient's state educational service award; or
new text end

new text begin (2) the cost of enrolling in the program, less the amount of the recipient's federal award
used to pay for the program.
new text end

new text begin Subd. 11. new text end

new text begin Disbursement of awards. new text end

new text begin (a) The commissioner must disburse an award used
to pay for qualifying educational expenses or qualifying job training expenses directly to
the educational institution or program.
new text end

new text begin (b) The commissioner must disburse an award used to repay qualifying student loans
directly to the award recipient's student loan servicer.
new text end

Sec. 2. new text beginAPPROPRIATION; STATE EDUCATIONAL SERVICE AWARDS.
new text end

new text begin $5,300,000 in fiscal year 2018 and $5,300,000 in fiscal year 2019 are appropriated from
the general fund to the commissioner of higher education for state educational service awards
under Minnesota Statutes, section 136A.1261.
new text end