HLS 15RS-1160 ORIGINAL 2015 Regular Session HOUSE BILL NO. 739 BY REPRESENTATIVE JAMES Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana. HIGHER EDUCATION: Establishes the Louisiana Education and Workforce Opportunity Program and Fund 1 AN ACT 2To enact Chapter 20-I of Title 17 of the Louisiana Revised Statutes of 1950, to be comprised 3 of R.S. 17:3050.5 through 3050.10, relative to higher education assistance; to 4 establish the Louisiana Education and Workforce Opportunity Grant Program; to 5 establish the Education and Workforce Opportunity Grant Council and provide for 6 members; to establish the Louisiana Education and Workforce Opportunity Fund and 7 funding source; to provide for administration of the program; to provide for rule 8 promulgating authority; to provide an effective date; and to provide for related 9 matters. 10Be it enacted by the Legislature of Louisiana: 11 Section 1. Chapter 20-I of Title 17 of the Louisiana Revised Statutes of 1950, to be 12comprised of R.S. 17:3050.5 through 3050.10, is hereby enacted to read as follows: 13 CHAPTER 20-I. LOUISIANA EDUCATION AND WORKFORCE 14 OPPORTUNITY GRANT PROGRAM 15 §3050.5. Louisiana Education and Workforce Opportunity Grant Program; 16 legislative findings 17 The legislature finds that sustained investment in human capital is necessary 18 to create high-paying jobs, meet labor demand, and improve the well-being of the 19 citizens of Louisiana. The legislature also finds that Louisiana's current suite of 20 financial aid programs for post-secondary education has not adequately served Page 1 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-1160 ORIGINAL HB NO. 739 1 students with a demonstrated financial need and non-traditional students, and the 2 legislature notes that existing grant programs often cannot cover enough of a 3 student's demonstrated financial need to encourage retention and program 4 completion. In order to promote access to higher education among students most in 5 need, the legislature finds that additional sources of aid are required in order to 6 address demonstrated financial need. At the same time, the legislature finds that any 7 new source of aid must be carefully structured in line with national best practices to 8 encourage increased usage among families with a demonstrated financial need, 9 student retention, acquisition of high-demand skills, and steady progress toward 10 securing meaninful, well-compensated career options. In summary, the legislature 11 finds that the Education and Workforce Opportunity Grant, as fully developed by 12 agency rule, will provide a valuable tool for building a skilled workforce, promoting 13 access to higher education, and alleviating poverty in the State of Louisiana. 14 §3050.6. Creation of the Education and Workforce Opportunity Grant Council 15 The Education and Workforce Opportunity Grant Council, referred to 16 hereinafter as the "council", is hereby established as an independent subcommittee 17 of the Board of Regents and shall be composed of the following members: 18 (1) The commissioner of higher education, or his designee. 19 (2) The executive director of the Louisiana Workforce Commission, or his 20 designee. 21 (3) The secretary of the Department of Economic Development, or his 22 designee. 23 §3050.7. Eligibility 24 The Board of Regents shall provide for the participation of any student who 25 meets the following requirements: 26 (1) Is a Louisiana resident at the time of application. 27 (2) Has earned a high school diploma or GED. 28 (3) Meets the admission requirements and is enrolled in a Louisiana public 29 college or university, a regionally accredited independent college or university in the Page 2 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-1160 ORIGINAL HB NO. 739 1 state that is a member of the Louisiana Association of Independent Colleges and 2 Universities, or an approved industry-based training program, hereinafter referred 3 to in this Chapter collectively as "eligible colleges and universities", to pursue either 4 an academic undergraduate degree, certification, skill, or occupational training from 5 a postsecondary institution, an industry-based training or certification as approved 6 by the council. 7 (4) Has submitted a Free Application for Federal Student Aid. 8 (5) Meets the income eligibility requirements of the federal Pell Grant 9 program. 10 (6) Is determined to have unmet needs with regards to the ability to pay the 11 cost of attendance for the eligible college or university in which the student is 12 enrolled. 13 (7) Maintains steady academic progress, as defined by the Board of Regents, 14 for continued participation. 15 (8) Meets any other eligibility criteria the Board of Regents may require. 16 §3050.8. Administration; rulemaking authority 17 A. The council shall establish the criteria for initial and continuing 18 eligibility, the method for determining the award amount, the eligible degree and 19 non-degree certificate programs, and other program requirements not otherwise 20 provided for in this Chapter. 21 B. The Louisiana Student Financial Assistance Commission, through the 22 office of student financial assistance, shall administer the program and shall adopt 23 rules necessary to implement the provisions of this Chapter in accordance with the 24 Administrative Procedure Act. 25 §3050.9. Phase-In and Program Cap 26 A. The total amount of education opportunity grants will be phased in, up to 27 an annual program cap of twenty-five million dollars, as follows: 28 (1) In Fiscal Year 2016-2017, the annual program cap shall be two million 29 dollars. Page 3 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-1160 ORIGINAL HB NO. 739 1 (2) In Fiscal Year 2017-2018, the annual program cap shall be eight million 2 dollars. 3 (3) In Fiscal Year 2018-2019, the annual program cap shall be eighteen 4 million dollars. 5 (4) In Fiscal Year 2019-2020, the annual program cap shall be twenty-two 6 million dollars. 7 (5) In Fiscal Year 2020-2021, the annual program cap shall be twenty-five 8 million dollars. 9 B. The total amount of education opportunity grants available in any fiscal 10 year shall not exceed twenty-five million dollars. The Louisiana Student Financial 11 Assistance Commission, through the office of student financial assistance, shall by 12 rule establish the method of allocating available grants to institutions and students 13 in a method which, in its discretion, is most beneficial to the students and the state. 14 §3050.10. Louisiana Education and Workforce Opportunities Fund 15 A. There is hereby created in the state treasury, as a special fund, the 16 Louisiana Education and Workforce Opportunities Fund, hereinafter referred to as 17 the "fund". 18 B.(1) The source of monies in the fund shall be as follows: 19 (a) Monies transferred to the fund pursuant to the provisions of R.S. 20 51:1787(K). 21 (b) Monies designated for the fund and received by the state treasurer from 22 donations, gifts, grants, appropriations, or other revenue. 23 (2) Monies in the fund shall be invested in the same manner as monies in the 24 state general fund. Interest earned on investment of monies in the fund shall be 25 credited to this fund. Unexpended and unencumbered monies in the fund at the end 26 of the fiscal year shall remain in the fund. 27 C. Monies in the Louisiana Education and Workforce Opportunities Fund 28 shall be appropriated annually to the office of student financial assistance for use 29 solely to fund the Louisiana Education Opportunities and Workforce Grant Program Page 4 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-1160 ORIGINAL HB NO. 739 1 administered by the Louisiana Student Financial Assistance Commission in 2 accordance with the provisions of this Chapter. Nothing contained in this Chapter 3 shall prohibit the legislature from appropriating additional monies for the Louisiana 4 Education and Workforce Opportunities Program. 5 Section 2. This Act shall take effect and become operative if and when the 6Act which originated as House Bill No. of this 2015 Regular Session of the 7Legislature is enacted and becomes effective. DIGEST The digest printed below was prepared by House Legislative Services. It constitutes no part of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)] HB 739 Original 2015 Regular Session James Abstract: Establishes the Louisiana Education and Workforce Opportunity Grant Program and provides for implementation of the program. Proposed law establishes the Louisiana Education and Workforce Opportunity Grant Program to be administered by the Louisiana Student Financial Assistance Commission, through the office of student financial assistance. Establishes a higher education grant program in order to promote access to higher education among students who are determined to be in financial need through eligibility criteria established by the Board of Regents. Proposed law establishes the Education and Workforce Opportunity Grant Council ("council") comprised of the following members: (1)The commission of higher education, or his designee. (2)The executive director of the Louisiana Workforce Commission, or his designee. (3)The secretary of the Department of Economic Development, or his designee. Proposed law authorizes the council to establish the criteria for initial and continuing eligibility for the program. Proposed law further authorizes the Louisiana Student Financial Assistance Commission to adopt rules necessary to implement the program in accordance with the A.P.A. Proposed law provides for an annual program cap of $25M. Requires the following program cap phase-in: (1)FY17 - $2M (2)FY18 - $8M (3)FY19 - $18M (4)FY20 - $22M (5)FY21 - $25M Page 5 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HLS 15RS-1160 ORIGINAL HB NO. 739 Effective upon passage of (HLS 726) (Adds R.S. 17:3050.5-3050.10) Page 6 of 6 CODING: Words in struck through type are deletions from existing law; words underscored are additions.