1.1                          A bill for an act 
  1.2             relating to higher education; creating a higher 
  1.3             education lottery scholarship program to provide 
  1.4             scholarships for certain higher education expenses; 
  1.5             amending Minnesota Statutes 2002, section 349A.10, 
  1.6             subdivision 5; proposing coding for new law in 
  1.7             Minnesota Statutes, chapters 135A; 136A. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [135A.40] [HIGHER EDUCATION LOTTERY FUND.] 
  1.10     A higher education lottery fund is established in the state 
  1.11  treasury, consisting of money deposited in the fund under 
  1.12  section 349A.10, subdivision 5, and any interest earned 
  1.13  thereon.  Money in the fund is annually appropriated to the 
  1.14  director of the higher education services office for the higher 
  1.15  education lottery scholarship program under section 136A.147. 
  1.16     Sec. 2.  [136A.147] [MINNESOTA HIGHER EDUCATION LOTTERY 
  1.17  SCHOLARSHIP.] 
  1.18     Subdivision 1.  [CREATION; PURPOSE.] The Minnesota higher 
  1.19  education lottery scholarship program is established to provide 
  1.20  scholarships to residents of Minnesota attending postsecondary 
  1.21  institutions to reward students for outstanding academic 
  1.22  achievement, help students complete their degrees, and expand 
  1.23  educational opportunities beyond high school for students. 
  1.24     Subd. 2.  [ELIGIBILITY.] An applicant is eligible to be 
  1.25  considered for a scholarship if the applicant is: 
  1.26     (1) a resident of the state of Minnesota; 
  2.1      (2) a graduate of a Minnesota public or nonpublic high 
  2.2   school with a grade point average of at least 3.0 on a 4.0 
  2.3   scale, or has just completed the first year of study at a 
  2.4   postsecondary institution attending full time and has achieved a 
  2.5   grade point average of at least 3.0 on a 4.0 scale; 
  2.6      (3) admitted to enroll, or is enrolled, full time in a 
  2.7   public or private postsecondary education institution located in 
  2.8   this state; and 
  2.9      (4) not in default, as defined by the office, of any 
  2.10  federal or state student educational loan. 
  2.11     Subd. 3.  [AMOUNT AND USE OF SCHOLARSHIP.] (a) The amount 
  2.12  of the scholarship must be: 
  2.13     (1) at public postsecondary institutions, an amount equal 
  2.14  to the cost of tuition and fees for full-time attendance for one 
  2.15  academic year not to exceed $......., and a $300 book allowance; 
  2.16  or 
  2.17     (2) at private postsecondary institutions, $3,000 for one 
  2.18  academic year. 
  2.19     (b) Money awarded by a scholarship under this section may 
  2.20  be applied only to education costs.  Scholarships under this 
  2.21  section must not exceed the applicant's education costs.  For 
  2.22  purposes of this section, "education costs" means tuition, fees, 
  2.23  and books. 
  2.24     Subd. 4.  [GED.] Applicants who have a grade point average 
  2.25  that is less than 3.0 on a 4.0 scale, but otherwise meet the 
  2.26  eligibility requirements in subdivision 2, and who have received 
  2.27  a GED high school equivalency diploma, may be eligible to 
  2.28  receive a onetime $500 scholarship toward education costs at a 
  2.29  public or private postsecondary institution.  Scholarships 
  2.30  awarded under this subdivision must not be considered in 
  2.31  determining a student's financial need as provided in section 
  2.32  136A.101, subdivision 5. 
  2.33     Subd. 5.  [APPLICATION; SELECTION OF 
  2.34  RECIPIENTS.] Applicants shall apply for scholarships under this 
  2.35  section on a form and in a manner prescribed by the director.  
  2.36  The director shall establish by rule, in consultation with the 
  3.1   Higher Education Services Council, application and award dates 
  3.2   and procedures, criteria to be considered, and methods of 
  3.3   selecting students to receive and renew scholarships. 
  3.4      Subd. 6.  [RENEWALS.] The scholarship shall be renewed 
  3.5   yearly for up to three additional academic years if the student 
  3.6   maintains full-time enrollment with a grade point average of at 
  3.7   least 3.0 on a 4.0 scale and is achieving satisfactory progress 
  3.8   toward completion of a degree. 
  3.9      Subd. 7.  [NUMBER OF AWARDS.] The number of scholarships 
  3.10  awarded each year shall be determined by the money available in 
  3.11  the higher education lottery fund in section 135A.40.  The 
  3.12  number of new awards must be determined after subtracting the 
  3.13  actual and projected amount necessary for renewals. 
  3.14     Sec.  3.  Minnesota Statutes 2002, section 349A.10, 
  3.15  subdivision 5, is amended to read: 
  3.16     Subd. 5.  [DEPOSIT OF NET PROCEEDS.] Within 30 days after 
  3.17  the end of each month, the director shall deposit in the state 
  3.18  treasury the net proceeds of the lottery, which is the balance 
  3.19  in the lottery fund after transfers to the lottery prize fund 
  3.20  and credits to the lottery operations account.  Of the net 
  3.21  proceeds, 40 percent must be credited to the Minnesota 
  3.22  environment and natural resources trust fund, .. percent must be 
  3.23  credited to the Minnesota higher education lottery fund in 
  3.24  section 135A.40, and the remainder must be credited to the 
  3.25  general fund.