SF 991

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to financing the National Guard tuition
reimbursement program; imposing an income tax
surcharge; extending the time for providing tuition
reimbursement to members who have served in active
military service; appropriating money; amending
Minnesota Statutes 2004, section 192.501, subdivision
2, by adding a subdivision.

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

Section 1. new text begin INCOME TAX SURCHARGE.
new text end

new text begin In addition to the tax computed under section 290.06,
subdivision 2c, and section 290.091, there is a surcharge
imposed on individuals, estates, and trusts. For taxable years
beginning after December 31, 2004, but before January 1, 2006,
the surcharge is computed by applying the rate of 0.1 percent to
the tax computed under section 290.06, subdivision 2c, and under
section 290.091, after the credit allowed under section 290.0675.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable
years beginning after December 31, 2004, but before January 1,
2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 192.501,
subdivision 2, is amended to read:

Subd. 2.

Tuition and textbook reimbursement grant
program.

(a) The adjutant general shall establish a program to
provide tuition and textbook reimbursement grants to eligible
members of the Minnesota National Guard within the limitations
of this subdivision.

(b) Eligibility is limited to a member of the National
Guard who:

(1) is serving satisfactorily as defined by the adjutant
general;

(2) is attending a postsecondary educational institution,
as defined by section 136A.15, subdivision 6, including a
vocational or technical school operated or regulated by this
state or another state or province; and

(3) provides proof of satisfactory completion of
coursework, as defined by the adjutant general.

new text begin Notwithstanding clause (1), for a person who has
satisfactorily completed the person's service contract in the
Minnesota National Guard or the portion of it requiring active
drill status, for which any part of that service was spent
serving honorably in federal active service or federally funded
state active service, as defined in section 190.05, subdivisions
5b and 5c, the person's eligibility is extended for a period of
three years, plus an amount of time equal to the duration of
that person's active service, subject to the credit hours limit
in paragraph (c). However, if a person who has provided
honorable active service is separated or discharged from the
National Guard due to a service connected injury, disease, or
disability, the eligibility period is extended for eight years
beyond the date of separation.
new text end

In addition, if a member of the Minnesota National Guard is
killed in the line of state active service or federally funded
state active service, as defined in section 190.05, subdivisions
5a and 5b, the member's surviving spouse, and any surviving
dependent who has not yet reached 24 years of age, is eligible
for a tuition and textbook reimbursement grant.

The adjutant general may, within the limitations of this
paragraph and other applicable laws, determine additional
eligibility criteria for the grant, and must specify the
criteria in department regulations and publish changes as
necessary.

(c) The amount of a tuition and textbook reimbursement
grant must be specified on a schedule as determined and
published in department regulations by the adjutant general, but
is limited to a maximum of an amount equal to the greater of:

(1) up to 100 percent of the cost of tuition for lower
division programs in the College of Liberal Arts at the Twin
Cities campus of the University of Minnesota in the most recent
academic year; or

(2) up to 100 percent of the cost of tuition for the
program in which the person is enrolled at that Minnesota public
institution, or if that public institution is outside the state
of Minnesota, for the cost of a comparable program at the
University of Minnesota, except that in the case of a survivor
as defined in paragraph (b), the amount of the tuition and
textbook reimbursement grant for coursework satisfactorily
completed by the person is limited to 100 percent of the cost of
tuition for postsecondary courses at a Minnesota public
educational institution.

Paragraph (b) notwithstanding, a person is no longer
eligible for a grant under this subdivision once the person has
received grants under this subdivision for the equivalent of 208
quarter credits or 144 semester credits of coursework.

(d) Tuition and textbook reimbursement grants received
under this subdivision may not be considered by the Minnesota
Higher Education Services Office or by any other state board,
commission, or entity in determining a person's eligibility for
a scholarship or grant-in-aid under sections 136A.095 to
136A.1311.

(e) If a member fails to complete a term of enlistment
during which a tuition and textbook reimbursement grant was
paid, the adjutant general may seek to recoup a prorated amount
as determined by the adjutant general. new text begin However, this authority
does not apply to a person whose separation from the National
Guard is due to a medical condition or financial hardship.
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

Sec. 3.

Minnesota Statutes 2004, section 192.501, is
amended by adding a subdivision to read:

new text begin Subd. 2a. new text end

new text begin Extended eligibility appropriation. new text end

new text begin Revenue
collected under section 1 is appropriated from the general fund
to the adjutant general to pay tuition and textbook
reimbursement grants under section 192.501, subdivision 2, to
members and former members of the Minnesota National Guard whose
period of eligibility for the grants has been extended as a
result of having served in active military service. This
appropriation is available until expended. No part of this
appropriation may be expended on grants to persons who are
serving in active drill status in the National Guard. The
adjutant general must account for this appropriation separately
from other appropriations for the purpose of making grants under
subdivision 2 to National Guard members whose eligibility period
has not been extended as the result of active service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2005.
new text end