HF 3963

as introduced - 89th Legislature (2015 - 2016) Posted on 04/25/2016 04:15pm

A bill for an act
relating to higher education; requiring development of a pilot program for higher
education income-share agreements; appropriating money.

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

Section 1. new text begin DEVELOPMENT OF AN INCOME-SHARE AGREEMENT PILOT
PROGRAM PROPOSAL.
new text end

new text begin Subdivision 1. new text end

new text begin Development of a pilot program proposal. new text end

new text begin (a) For the purposes of
this section, "income-share agreement" means a method of financing higher education in
which a student signs a contract to pay to the state of Minnesota, or to the institution in
which the student is enrolled, a certain percentage of the student's annual adjusted gross
income for a specified number of years upon graduation from the institution.
new text end

new text begin (b) The commissioner of higher education must convene a working group to design
a proposal for a pilot program to pay for higher education costs for participating students
using income-share agreements. The working group must include the president of the
University of Minnesota, the chancellor of the Minnesota State Colleges and Universities,
student representatives from both systems, and other interested stakeholders as determined
by the commissioner.
new text end

new text begin (c) The commissioner must submit a report to the legislature describing the pilot
program proposal no later than January 31, 2017. The report must describe any legislation
required for implementation of the pilot program, including an estimate of the funding
required.
new text end

new text begin Subd. 2. new text end

new text begin Proposed pilot program. new text end

new text begin (a) The pilot program proposal designed
under this section must:
new text end

new text begin (1) identify institutions, or individual programs within an institution, to participate in
the pilot program and the duration of their participation;
new text end

new text begin (2) specify the number of years of payment and the percentage of annual adjusted
gross income required for payment contracts at each institution, or within each program,
participating in the pilot program;
new text end

new text begin (3) identify potential sources of start-up and ongoing funding for the pilot program,
including a determination on the feasibility of financing the pilot program through revenue
bonds and establishing a revolving fund to deposit payments made once the pilot program
begins;
new text end

new text begin (4) specify whether income-share agreements under the pilot program should
cover part or all of the costs of attending a higher education institution for participating
students; and
new text end

new text begin (5) other details of the proposed pilot program, as determined by the commissioner
in consultation with the working group.
new text end

new text begin (b) The terms of the proposed pilot program and associated payment contracts may
vary by institution or participating program, taking into consideration the total cost of
education at the participating institution or within the participating program, the portion of
the total cost of education paid by the state of Minnesota under current funding structures,
and other appropriate factors as determined by the commissioner.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin $....... in fiscal year 2017 is appropriated from the general
fund to the commissioner of higher education to develop the income-share agreement
pilot program proposal under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end