SF 3499

as introduced - 89th Legislature (2015 - 2016) Posted on 04/08/2016 09:02am

A bill for an act
relating to higher education; establishing a state educational service award
for certain volunteers; 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.

[136A.1261] STATE EDUCATIONAL SERVICE AWARDS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the terms defined in
this subdivision have the meanings given them.

(b) "Federal education award" means an educational award under United States
Code, title 42, chapter 129, subchapter I, division D.

(c) "Maximum federal award" means the maximum award that may be disbursed to
pay current education expenses under United States Code, title 42, chapter 129, subchapter
I, division D, section 12604, paragraph (c).

(d) "Qualifying student loan" means:

(1) a federal student loan under United States Code, title 20, chapter 28;

(2) a loan issued under sections 136A.15 to 136A.1787; or

(3) a commercial loan used to pay for qualifying educational expenses.

(e) "Qualifying educational expenses" means tuition, fees, and other education
expenses associated with attending an institution of higher education that has in effect
a program participation agreement under United States Code, title 20, chapter 28,
subchapter IV, part F, section 1094.

(f) "Qualifying job training expenses" means expenses incurred in enrolling in an
educational institution or training establishment approved under United States Code, title
38, chapter 36, for offering programs of education, apprenticeship, or on-the-job training.

(g) "State educational service award" means an award provided under this section.

Subd. 2.

Program established.

The commissioner must establish a program to
provide state educational service awards to eligible applicants, as provided in this section.

Subd. 3.

Eligibility.

(a) An applicant is eligible for a state educational service
award if the office finds that the applicant:

(1) is a resident of the state of Minnesota; and

(2) on or after July 1, 2016, completed an AmeriCorps or AmeriCorps VISTA
program and earned a federal education award.

(b) An applicant is eligible for one state educational service award for each federal
education award earned after July 1, 2016.

Subd. 4.

Application.

To be considered for an award, an applicant must apply for
an award in a form and manner specified by the commissioner.

Subd. 5.

Allocation.

Awards must be granted on a funds-available basis to
applicants who meet the eligibility requirements.

Subd. 6.

Insufficient appropriation.

Notwithstanding subdivision 5, if
the commissioner estimates that the appropriation for awards under this section is
insufficient to cover the projected demand, the commissioner must reduce award amounts
proportionally to ensure sufficient funding.

Subd. 7.

Award availability.

A recipient may use a state educational service
award up to seven years after the day the recipient completed a service program listed in
subdivision 3, paragraph (a), clause (2).

Subd. 8.

Authorized uses of award funds.

A recipient may use an award to pay
for the following qualifying expenditures:

(1) to repay a qualifying student loan;

(2) to pay for qualifying educational expenses at a postsecondary educational
institution; and

(3) to pay for qualifying job training expenses.

Subd. 9.

Award amount.

(a) Except as provided in subdivision 6, a recipient's state
educational service award is equal to one-half of the amount of the recipient's federal award.

(b) An award recipient who applies part, but not all, of an award towards a qualifying
expenditure may use the remaining amount of the award for one or more additional
qualifying expenditures. The commissioner must maintain a record of a recipient's
remaining award balance until the award is no longer available to the recipient under
subdivision 7.

Subd. 10.

Amount of eligible expenses.

(a) The maximum amount of a state
educational service award that a recipient may apply towards a qualifying expenditure is
the lesser of:

(1) the recipient's state educational service award; or

(2) the sum of paragraph (b), clause (2); paragraph (c), clause (2); and paragraph
(d), clause (2).

(b) The maximum amount a recipient may apply towards qualifying educational
expenses is the lesser of:

(1) the recipient's state educational service award; or

(2) the recipient's maximum federal award less the amount of the recipient's federal
award applied towards the education expenses.

(c) The maximum amount a recipient may apply towards qualifying student loans is
the lesser of:

(1) the recipient's state educational service award; or

(2) the balance remaining on the recipient's qualifying student loans after the
application of the recipient's federal award.

(d) The maximum amount a recipient may apply towards a qualifying job training
program is the lesser of:

(1) the recipient's state educational service award; or

(2) the cost of enrolling in the program, less the amount of the recipient's federal
award used to pay for the program.

Subd. 11.

Disbursement of awards.

(a) The commissioner must disburse an award
used to pay for qualifying educational expenses or qualifying job training expenses
directly to the educational institution or program.

(b) The commissioner must disburse an award used to repay qualifying student loans
directly to the award recipient's student loan servicer.

Sec. 2. APPROPRIATION; STATE EDUCATIONAL SERVICE AWARDS.

$5,300,000 in fiscal year 2017 is appropriated from the general fund to the
commissioner of higher education for state educational service awards under Minnesota
Statutes, section 136A.1261.