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Minnesota Legislature

Office of the Revisor of Statutes

SF 1181

as introduced - 91st Legislature (2019 - 2020) Posted on 02/14/2019 02:52pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to higher education; modifying aviation degree loan forgiveness provisions;
appropriating money; amending Minnesota Statutes 2018, section 136A.1789,
subdivisions 1, 3, 5.

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

Section 1.

Minnesota Statutes 2018, section 136A.1789, subdivision 1, is amended to
read:


Subdivision 1.

Definitions.

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

(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's
or bachelor's degree new text beginpreparing individuals to obtain an aviation mechanic's certificate from
the Federal Aviation Administration
new text endfrom a postsecondary institution located in Minnesota,
and (2) has obtained an aviation mechanic's certificate from the Federal Aviation
Administration.

(c) "Qualified education loan" means a government, commercial, or foundation loan
used by an individual for actual costs paid for tuition deleted text beginto a postsecondary institution located
in Minnesota for a professional flight training degree
deleted text endnew text begin and reasonable educational and living
expenses related to the postsecondary education of the qualified aircraft technician or
qualified pilot
new text end.

(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's
degree deleted text beginin professional flight trainingdeleted text endnew text begin preparing individuals to obtain an airline transport
pilot certificate
new text end from a postsecondary institution located in Minnesota, and (2) is in the
process of obtaining or has obtained an airline transport pilot certificate.

Sec. 2.

Minnesota Statutes 2018, section 136A.1789, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

(a) To be eligible to participate in the loan forgiveness program
under this section, an individual must:

(1) be a qualified pilot or qualified aircraft technician;

(2) have qualified education loans;

(3) reside in Minnesota; and

(4) submit an application to the commissioner in the form and manner prescribed by the
commissioner.

(b) An applicant selected to participate must sign a contract to agree to serve a deleted text beginminimum
one-year
deleted text endnew text begin five-yearnew text end full-time service obligation according to subdivision 4. To complete the
service obligation, the applicant must work full time in Minnesota as a qualified pilot or
qualified aircraft technician. A participant must complete one year of service under this
paragraph for each year the participant receives an award under this section.

Sec. 3.

Minnesota Statutes 2018, section 136A.1789, subdivision 5, is amended to read:


Subd. 5.

Loan forgiveness.

(a) The commissioner may select eligible applicants each
year for participation in the aviation degree loan forgiveness program, within the limits of
available funding. Applicants are responsible for securing their own qualified education
loans.

(b) For each year that the participant meets the eligibility requirements under subdivision
3, the commissioner must make annual disbursements directly to:

(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified
education loans, whichever is less; and

(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's
qualified education loans, whichever is less.

(c) An individual may receive disbursements under this section for a maximum of five
years.

(d) The participant must provide the commissioner with verification that the full amount
of the loan repayment disbursement received by the participant has been applied toward the
designated qualified education loan. After each disbursement, verification must be received
by the commissioner and approved before the next repayment disbursement is made.

(e) If the participant receives a disbursement in the participant's fifth year of eligibility,
the participant must provide the commissioner with verification that the full amount of the
participant's final loan repayment disbursement was applied toward the designated qualified
education loan. If a participant does not provide the verification as required under this
paragraph within deleted text beginsixdeleted text endnew text begin 12new text end months of receipt of the final disbursement, the commissioner must
collect from the participant the new text begintotal new text endamount deleted text beginof the final disbursementdeleted text endnew text begin paid to the participant
under the loan forgiveness program plus interest at a rate established according to section
270C.40
new text end. The commissioner must deposit the money collected in the aviation degree loan
forgiveness program account.

Sec. 4. new text beginAPPROPRIATIONS.
new text end

new text begin $50,000 in fiscal year 2020 and $50,000 in fiscal year 2021 is appropriated from the
general fund to the commissioner of the Office of Higher Education for transfer to the
aviation degree loan forgiveness program account in the special revenue fund under
Minnesota Statutes, section 136A.1789, subdivision 2.
new text end