HF 2634

as introduced - 94th Legislature (2025 - 2026) Posted on 04/03/2025 04:26pm

A bill for an act
relating to higher education; limiting the North Star Promise scholarship's eligibility
conditions to students enrolled in programs in high-demand industries and
occupations; amending Minnesota Statutes 2024, section 136A.1465, subdivisions
2, 10, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 136A.1465, subdivision 2, is amended to
read:

Subd. 2.

Conditions for eligibility.

A scholarship may be awarded to an eligible student
who:

(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application;

(2) has a family adjusted gross income below $80,000;

(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over
and has met all requirements for admission as a student to an eligible college or university;

(4) has not earned a baccalaureate degree at the time the scholarship is awarded;

(5) is enrolled in at least one credit per fall, spring, or summer semester;

(6) is enrolled in a program or course of study that applies to a degree, diploma, or
certificate new text begin in an eligible program of study under subdivision 2a new text end ;

(7) is not in default, as defined by the office, of any federal or state student educational
loan;

(8) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages;

(9) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C; and

(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10.

Sec. 2.

Minnesota Statutes 2024, section 136A.1465, is amended by adding a subdivision
to read:

new text begin Subd. 2a. new text end

new text begin Eligible programs of study. new text end

new text begin (a) Eligibility for the North Star Promise
scholarship program is limited to students pursuing programs of study in industries and
occupations that are in demand in Minnesota.
new text end

new text begin (b) The office shall determine in-demand industries and occupations based on employment
data provided by the Department of Employment and Economic Development. The
determination shall be based on the top 20 industries and occupations with the highest
projected employment growth or the highest number of job openings in the state. The office
shall review the list of in-demand industries and occupations at least once every three years.
The office may adjust the list as needed to reflect updated employment data from the
Department of Employment and Economic Development.
new text end

new text begin (c) The office shall approve programs of study that lead to employment in in-demand
industries and occupations. The office shall review and update the list of approved programs
at least once every three years to ensure alignment with current labor market data.
new text end

Sec. 3.

Minnesota Statutes 2024, section 136A.1465, subdivision 10, is amended to read:

Subd. 10.

Report.

The commissioner of higher education shall submit a preliminary
report by September 1, 2025, and an annual report beginning February 15, 2026, to the
chairs and ranking minority members of the legislative committees with jurisdiction over
higher education, on the details of the program, including deleted text begin the deleted text end :

(1) new text begin the new text end status of the scholarship fund; deleted text begin and
deleted text end

new text begin (2) a list of all currently eligible programs of study under subdivision 2a; and
new text end

deleted text begin (2) deleted text end new text begin (3) new text end North Star Promise participation data aggregated for each eligible institution to
show the:

(i) number of eligible students who received scholarships in the prior academic year;

(ii) average and total award amounts;

(iii) summary demographic data on award recipients;

(iv) total number of students enrolled in eligible institutions in the prior academic year;

(v) retention rates of participating students; deleted text begin and
deleted text end

(vi) number of eligible students who graduated with a degree and, for each eligible
student, the number of consecutive semesters and nonconsecutive semesters attended prior
to graduation new text begin ; and
new text end

new text begin (vii) eligible programs of study under subdivision 2a in which scholarship recipients
were enrolled new text end .

Sec. 4. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective the day following final enactment and applies to scholarship awards
beginning in the fall term of the 2026-2027 academic year.
new text end