HF 1736

as introduced - 87th Legislature (2011 - 2012) Posted on 05/19/2011 10:10am

A bill for an act
relating to higher education; establishing Minnesota HOPE awards for financial
aid; amending Minnesota Statutes 2010, section 136A.101, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 136A; repealing
Minnesota Statutes 2010, section 136A.1201.

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

Section 1.

new text begin [136A.096] MINNESOTA HOPE AWARDS ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin Minnesota HOPE awards are established to
provide financial aid to income-eligible students who meet academic achievement goals
at Minnesota postsecondary institutions that meet or exceed performance standards.
Minnesota HOPE awards are made within the resources available from state appropriations
for the awards, transfers from dedicated sources of funding, and any repayment of the
awards by recipients and employers. All award payments are made from the account
established in this section.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota HOPE award account. new text end

new text begin The Minnesota HOPE award account
is established as an account in the state treasury for the deposit of state appropriations for
Minnesota HOPE awards, deposit of funds from subdivision 3, and deposit of repayment
amounts under section 136A.098.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of funds. new text end

new text begin Proceeds from the issuance of revenue bonds under
section 136A.171 may be deposited into the Minnesota HOPE award account for awards
under section 136A.098, subject to the repayment requirements under section 136A.098.
new text end

Sec. 2.

new text begin [136A.097] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 136A.096 to 136A.099, the
terms defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Award rate. new text end

new text begin "Award rate" means a rate established in law to adjust a
student's Minnesota HOPE award after the second and subsequent years of eligibility.
new text end

new text begin Subd. 3. new text end

new text begin Full time. new text end

new text begin "Full time" means enrollment for a minimum of 13 credits
or the equivalent in a semester or quarter.
new text end

new text begin Subd. 4. new text end

new text begin Grade point average. new text end

new text begin "Grade point average" means the numerical average
of grades awarded to a student using a four-point scale.
new text end

new text begin Subd. 5. new text end

new text begin Qualifying postsecondary institution. new text end

new text begin "Qualifying postsecondary
institution" means a postsecondary institution with a facility in Minnesota that meets the
requirements of section 136A.103.
new text end

new text begin Subd. 6. new text end

new text begin Qualifying program. new text end

new text begin "Qualifying program" means a rigorous secondary
school program of study for Minnesota high school graduates recognized by the Secretary
of Education to determine eligibility for the federal Academic Competitiveness Grant
Program under Title IV of the Higher Education Act of 1965, as amended August 14,
2008. If a qualifying program includes a foreign language requirement, the foreign
language requirement is waived for a student whose first language is not English and
who attains English language proficiency.
new text end

new text begin Subd. 7. new text end

new text begin Qualifying tuition cap. new text end

new text begin "Qualifying tuition cap" means the amount of
tuition eligible for a Minnesota HOPE award equal to the actual tuition charged to a
student enrolled in a postsecondary institution in that student's first year of enrollment, not
to exceed an amount set in law.
new text end

new text begin Subd. 8. new text end

new text begin Resident student. new text end

new text begin "Resident student" has the meaning given in section
136A.101, subdivision 8.
new text end

new text begin Subd. 9. new text end

new text begin Satisfactory academic progress. new text end

new text begin "Satisfactory academic progress" has
the meaning given in section 136A.101, subdivision 10.
new text end

new text begin Subd. 10. new text end

new text begin Term. new text end

new text begin "Term" means an academic quarter or an academic semester.
new text end

new text begin Subd. 11. new text end

new text begin Tuition. new text end

new text begin "Tuition" means charges by a postsecondary institution to a
student for academic instruction and mandatory fees, including technology, activity,
athletic, health, or similar fees.
new text end

new text begin Subd. 12. new text end

new text begin Total award. new text end

new text begin "Total award" means the total amount of all Minnesota
HOPE awards made on behalf of a single recipient.
new text end

Sec. 3.

new text begin [136A.098] MINNESOTA HOPE AWARDS.
new text end

new text begin Subdivision 1. new text end

new text begin Minnesota HOPE award amount. new text end

new text begin For a student's first year of
enrollment, the Minnesota HOPE award amount is equal to the qualifying tuition cap for
the qualifying postsecondary institution in which the eligible student is enrolled, after
deducting: (1) the assigned family responsibility under section 136A.101, subdivision 5a;
and (2) the amount of a federal Pell grant award for which the student is eligible. For the
second and each subsequent year of enrollment, the Minnesota HOPE award amount is
equal to the first year award adjusted for the Minnesota HOPE award rate for each year.
new text end

new text begin Subd. 2. new text end

new text begin Payment of awards. new text end

new text begin The Office of Higher Education shall develop a
process for direct payment to a qualifying postsecondary institution on the student's behalf.
new text end

new text begin Subd. 3. new text end

new text begin Use of accounts. new text end

new text begin Minnesota HOPE accounts may only be used for the
payment of semester or quarter tuition costs at a qualifying postsecondary institution
in which the account holder is enrolled.
new text end

new text begin Subd. 4. new text end

new text begin Recipient repayment. new text end

new text begin (a) A recipient of a Minnesota HOPE award under
this section must agree as a condition of receiving the award to repay a portion of the
total award according to this subdivision.
new text end

new text begin (b) A recipient who resides in Minnesota must repay five percent per year of the total
award each year for the first five years following graduation from an eligible institution,
up to a maximum repayment of 25 percent of the value of the total award. Repayment
under this paragraph must begin 90 days after the recipient is employed full time. The
remaining unpaid portion of the total award is forgiven after the recipient has made five
years of payments under this paragraph.
new text end

new text begin (c) A recipient who is employed outside of Minnesota upon graduation must repay
100 percent of the total award. Repayment under this paragraph must be made in 240
equal payments over 20 years, beginning 180 days following graduation. A recipient
under this paragraph who later returns to Minnesota and holds full-time employment
may receive credit for payments made. No additional repayment obligation exists for a
returning recipient who has repaid 25 percent of the total award. A recipient who has
repaid more than 25 percent of the total award is not entitled to a reimbursement of any of
the repayment.
new text end

new text begin (d) Repayment is deferred for a recipient who is enrolled in graduate school. All of
the repayment requirements of this subdivision apply to the recipient when the recipient
graduates or is no longer enrolled in graduate school.
new text end

new text begin (e) Repayment is deferred for a recipient who is unemployed and seeking full-time
employment until the recipient is employed full time. No interest is charged or accrued
during deferrals.
new text end

new text begin (f) A recipient who is employed full time, within six months of graduation, in one
of the public service fields or organizations under this paragraph does not have to repay
any of the total award if the recipient is employed full time for a minimum of three years
following graduation. If the recipient leaves public service employment before three
years, the recipient is responsible for the 25 percent repayment required in paragraph (b),
reduced proportionately by the difference between the recipient's years of public service
employment and the five-year repayment period. Eligible public service employment
includes:
new text end

new text begin (1) emergency management;
new text end

new text begin (2) military service;
new text end

new text begin (3) Minnesota public safety;
new text end

new text begin (4) Minnesota law enforcement;
new text end

new text begin (5) Minnesota public education, including early childhood education;
new text end

new text begin (6) social work in a public or family service agency in Minnesota;
new text end

new text begin (7) Minnesota public child care;
new text end

new text begin (8) Minnesota public service for individuals with disabilities;
new text end

new text begin (9) Minnesota public interest law services;
new text end

new text begin (10) Minnesota 501(c)(3) organizations;
new text end

new text begin (11) Minnesota public service for the elderly;
new text end

new text begin (12) Minnesota public library sciences; and
new text end

new text begin (13) Minnesota K-12 or college or university.
new text end

new text begin (g) All repayments under this subdivision are made to the Minnesota HOPE award
account under section 136A.096.
new text end

Sec. 4.

new text begin [136A.099] MINNESOTA HOPE AWARDS; ELIGIBILITY.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility; first-year Minnesota HOPE awards. new text end

new text begin To be eligible to
participate in the Minnesota HOPE program, a student must meet the requirements under
section 136A.121, subdivision 2.
new text end

new text begin Subd. 2. new text end

new text begin Minnesota HOPE pledge. new text end

new text begin (a) An eligible student must:
new text end

new text begin (1) be enrolled in grade 7 or 8 for the 2012-2013 school year and grade 6, 7, or 8 for
the 2013-2014 school year and for subsequent school years; and
new text end

new text begin (2) agree in writing, together with the student's custodial parents or guardian, that
the student will:
new text end

new text begin (i) graduate from a secondary school located in Minnesota with a qualifying program;
new text end

new text begin (ii) not illegally use controlled substances as defined in section 152.02;
new text end

new text begin (iii) not commit a crime, an infraction, or a delinquent act;
new text end

new text begin (iv) timely apply for admission to a qualifying postsecondary institution and for any
federal and state student financial assistance available to the eligible student to attend a
qualifying postsecondary institution; and
new text end

new text begin (v) achieve a cumulative grade point average upon graduation of at least 2.0 on a 4.0
grading scale or its equivalent for courses taken during grades 9, 10, 11, and 12.
new text end

new text begin (b) A student is eligible to participate in the program if the student:
new text end

new text begin (1) before or during grade 7 or 8, is placed by or with the consent of the Department
of Human Services, by a court order, or by another agency, in:
new text end

new text begin (i) a foster family home;
new text end

new text begin (ii) the home of a relative or other unlicensed caretaker;
new text end

new text begin (iii) an institution for the care of children; or
new text end

new text begin (iv) a group home; and
new text end

new text begin (2) agrees in writing, together with the student's caseworker, to the conditions in
paragraph (a), clause (2).
new text end

new text begin Subd. 3. new text end

new text begin Eligibility; continuing Minnesota HOPE awards. new text end

new text begin (a) To be eligible for a
continuing award under this section, a student must apply for renewal each year and be
a resident student who is enrolled and classified as a sophomore, junior, or senior in an
associate or baccalaureate degree program at a qualifying postsecondary institution and
meets the achievement standards under this subdivision:
new text end

new text begin (1) for full-time students, a minimum 2.5 cumulative grade point average at the
end of the term in which the student has attempted 30, 60, or 90 semester credits or 45,
90, or 135 quarter credits;
new text end

new text begin (2) for students who have maintained part-time enrollment status for three
consecutive terms, a minimum 2.5 cumulative grade point average at the end of three
consecutive terms; and
new text end

new text begin (3) for all students, maintain satisfactory academic progress.
new text end

new text begin (b) A student eligible for a continuing award under paragraph (a) may receive an
award until the student meets one of the following conditions:
new text end

new text begin (1) has been awarded a baccalaureate degree;
new text end

new text begin (2) has enrolled for 127 semester credits or 190 quarter credits at any postsecondary
institution; or
new text end

new text begin (3) seven years have elapsed since a student who first receives a Minnesota HOPE
award after June 30, 2011, has graduated from high school, completed a home-school
program, or been awarded a GED.
new text end

new text begin (c) The seven-year period of eligibility following high school graduation or its
equivalent is extended one year for each year that an eligible student serves in the military.
new text end

new text begin Subd. 4. new text end

new text begin Requalification. new text end

new text begin (a) A student who is ineligible or has lost eligibility for a
Minnesota Hope award may qualify by meeting the criteria under this subdivision.
new text end

new text begin (b) A full-time student who has lost a HOPE award under subdivision 3, paragraph
(a), because the student's cumulative grade point average is below 2.5 may requalify for an
award after taking an additional 30 semester credits or 45 quarter credits and establishing
a cumulative grade point average of 2.5 or greater. A student may reestablish eligibility
under this paragraph only one time.
new text end

new text begin Subd. 5. new text end

new text begin Ineligible students. new text end

new text begin A student is ineligible for a Minnesota HOPE award if
the student meets any of the following criteria:
new text end

new text begin (1) is not a United States citizen or permanent resident alien who meets the definition
of eligible noncitizen for federal Title IV education programs;
new text end

new text begin (2) has not complied with United States Selective Service System requirements for
registration, if applicable;
new text end

new text begin (3) is in default on a federal Title IV educational loan or a SELF loan;
new text end

new text begin (4) owes a refund on a federal Title IV financial aid program or a state financial aid
program;
new text end

new text begin (5) has been convicted of a felony offense involving marijuana, a controlled
substance, or a dangerous drug;
new text end

new text begin (6) is incarcerated; or
new text end

new text begin (7) is a full-time student receiving a Minnesota HOPE award who does not have a
cumulative 2.5 grade point average at the end of a term in which the student has attempted
30, 60, or 90 semester credits or 45, 90, or 135 quarter credits for the student's next 30
semester credits or 45 quarter credits.
new text end

new text begin Subd. 6. new text end

new text begin Award limitations; continuation of award. new text end

new text begin An undergraduate student
who meets the requirements is eligible to apply for and receive a Minnesota HOPE
award in any year of undergraduate study unless the student has obtained a baccalaureate
degree or previously has been enrolled full time or the equivalent for eight semesters
or the equivalent, excluding courses taken from a Minnesota school or postsecondary
institution which is not participating in the state grant program and from which a student
transferred no credit. A student who withdraws from enrollment for active military service
or for a major illness, while under the care of a medical professional, that substantially
limits the student's ability to complete the term, is entitled to an additional semester or
the equivalent of grant eligibility.
new text end

new text begin Subd. 7. new text end

new text begin Administration. new text end

new text begin (a) The Office of Higher Education is responsible for
administration of the Minnesota HOPE award. The office is responsible for monitoring the
compliance of postsecondary institutions with the requirements of the Minnesota HOPE
award and establishing which postsecondary institutions meet the criteria for eligibility.
new text end

new text begin (b) A qualifying postsecondary institution must provide to the office data on student
enrollment and federal and state financial aid. The institution or its agent must provide
to the office aggregate and distributional financial or other data as determined by the
director that is directly related to the responsibilities of the office under this chapter and
chapter 141. Data provided by nonpublic institutions under this paragraph is considered
nonpublic data under chapter 13.
new text end

new text begin (c) Annually, by November 1 and February 15, the Office of Higher Education must
provide, to the committees of the legislature with jurisdiction over higher education finance
and policy, updated spending projections for Minnesota HOPE awards, taking into account
the most current and projected enrollment and tuition and fee information, economic
conditions, and other relevant factors, based on prior consultation with qualifying
postsecondary institutions, Minnesota Management and Budget, and legislative staff.
new text end

Sec. 5.

Minnesota Statutes 2010, section 136A.101, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections deleted text begin 136A.095 deleted text end new text begin 136A.101 new text end to 136A.1311,
the terms defined in this section have the meanings ascribed to them.

Sec. 6. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2010, section 136A.1201, new text end new text begin is repealed.
new text end