SF 1986

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 06/14/2023 08:41am

A bill for an act
relating to higher education; establishing the tuition free Minnesota Commitment
to Higher Education Act; requiring a report; appropriating money; proposing
coding for new law in Minnesota Statutes, chapter 136A.

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

Section 1.

new text begin [136A.1465] MINNESOTA COMMITMENT TO HIGHER EDUCATION
ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin The following terms have the meanings given:
new text end

new text begin (1) "eligible student" means a resident student under section 136A.101, subdivision 8,
who is enrolled in any public postsecondary educational institution or Tribal college;
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new text begin (2) "office" means the Office of Higher Education;
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new text begin (3) "public postsecondary educational institution" means an institution operated by this
state, the Board of Regents of the University of Minnesota, or a Tribal college;
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new text begin (4) "scholarship" means funds to pay 100 percent of tuition and fees remaining after
deducting grants and other scholarships, except for the Pell grant; and
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new text begin (5) "Tribal college" means a college defined in section 136A.1796, subdivision 1,
paragraph (c).
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new text begin Subd. 2. new text end

new text begin Conditions for eligibility. new text end

new text begin A scholarship may be awarded to an eligible student
who:
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new text begin (1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application;
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new text begin (2) has an adjusted gross household income below $120,000;
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new text begin (3) has not earned a baccalaureate degree at the time the scholarship is awarded;
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new text begin (4) is enrolled in at least one credit per fall, spring, or summer semester; and
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new text begin (5) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship. new text end

new text begin Beginning in the 2024-2025 academic year, scholarships shall
be awarded to eligible students in an amount not to exceed 100 percent of tuition and fees
after grants and other scholarships are deducted, except for the Pell grant.
new text end

new text begin Subd. 4. new text end

new text begin Duration of scholarship authorized. new text end

new text begin (a) Each scholarship is for a period of
one semester. A scholarship may be renewed provided that the eligible student continues
to meet the conditions of eligibility.
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new text begin (b) Scholarships may be provided to an eligible student for up to 60 credits for the
completion of a certificate or an associate degree and up to 120 credits for the completion
of a bachelor's degree. The maximum credits for which a student is eligible is a total of 120
credits.
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new text begin (c) The commissioner shall determine a time frame by which the eligible student must
complete the credential.
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new text begin Subd. 5. new text end

new text begin Termination of scholarship authorized. new text end

new text begin A scholarship is terminated upon
occurrence of:
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new text begin (1) failure to meet satisfactory academic progress as defined in section 136A.101,
subdivision 10; or
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new text begin (2) substantial noncompliance by the eligible student with the requirements of the
program.
new text end

new text begin Subd. 6. new text end

new text begin Account established; appropriation. new text end

new text begin An account is created in the special
revenue fund for receiving money to provide scholarship awards. Money deposited in the
account is appropriated to the commissioner of the Office of Higher Education for scholarship
awards.
new text end

new text begin Subd. 7. new text end

new text begin Office administration. new text end

new text begin The office is authorized to administer the program.
The office shall calculate the scholarship amount and determine tuition and fees for each
eligible institution. If funds are insufficient, the office shall determine the scholarship amount
or number of scholarships awarded. The office may determine the order in which other
grants and scholarships are deducted when determining the scholarship amount. If a student
withdraws or is no longer enrolled during a semester in which a scholarship was awarded,
the office may determine how this will affect the scholarship.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin Beginning in 2025, the office shall report by January 15 of each year
to the legislative committees with jurisdiction over higher education on the:
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new text begin (1) status of the scholarship fund; and
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new text begin (2) Minnesota Commitment to Higher Education Act participation data aggregated for
each eligible institution to show the:
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new text begin (i) number of eligible students who received scholarships in the prior academic year;
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new text begin (ii) total number of students enrolled in eligible institutions in the prior academic year;
and
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new text begin (iii) 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.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2024.
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Sec. 2. new text begin TRANSFER.
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new text begin $316,893,000 in fiscal year 2025 is transferred from the general fund to the account in
the special revenue fund under Minnesota Statutes, section 136A.1465, subdivision 6. The
base for the transfer under this section is $316,893,000 in fiscal year 2026 and later.
new text end

Sec. 3. new text begin APPROPRIATION.
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new text begin $230,000 in fiscal year 2024 and $130,000 in fiscal year 2025 are appropriated from the
general fund to the commissioner of the Office of Higher Education for administrative
expenses to implement and direct the scholarship awards under Minnesota Statutes, section
136A.1465.
new text end