1.1 A bill for an act
1.2 relating to higher education; establishing the tuition free Minnesota Commitment
1.3 to Higher Education Act; requiring a report; appropriating money; proposing
1.4 coding for new law in Minnesota Statutes, chapter 136A.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [136A.1465] MINNESOTA COMMITMENT TO HIGHER EDUCATION
1.7ACT.
1.8 Subdivision 1.Definitions.The following terms have the meanings given:
1.9 (1) "eligible student" means a resident student under section 136A.101, subdivision 8,
1.10who is enrolled in any public postsecondary educational institution or Tribal college;
1.11 (2) "office" means the Office of Higher Education;
1.12 (3) "public postsecondary educational institution" means an institution operated by this
1.13state, the Board of Regents of the University of Minnesota, or a Tribal college;
1.14 (4) "scholarship" means funds to pay 100 percent of tuition and fees remaining after
1.15deducting grants and other scholarships, except for the Pell grant; and
1.16 (5) "Tribal college" means a college defined in section 136A.1796, subdivision 1,
1.17paragraph (c).
1.18 Subd. 2.Conditions for eligibility.A scholarship may be awarded to an eligible student
1.19who:
1.20 (1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
1.21aid application;
1Section 1.
S1986-1 1st EngrossmentSF1986 REVISOR JFK
SENATE
STATE OF MINNESOTA
S.F. No. 1986NINETY-THIRD SESSION
(SENATE AUTHORS: FATEH, Champion, Kupec, Putnam and Hoffman)
OFFICIAL STATUSD-PGDATE
Introduction and first reading92602/20/2023
Referred to Higher Education
Authors added Kupec; Putnam; Hoffman99302/21/2023
Comm report: To pass as amended and re-refer to Finance02/27/2023 2.1 (2) has an adjusted gross household income below $120,000;
2.2 (3) has not earned a baccalaureate degree at the time the scholarship is awarded;
2.3 (4) is enrolled in at least one credit per fall, spring, or summer semester; and
2.4 (5) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
2.510.
2.6 Subd. 3.Scholarship.Beginning in the 2024-2025 academic year, scholarships shall
2.7be awarded to eligible students in an amount not to exceed 100 percent of tuition and fees
2.8after grants and other scholarships are deducted, except for the Pell grant.
2.9 Subd. 4.Duration of scholarship authorized.(a) Each scholarship is for a period of
2.10one semester. A scholarship may be renewed provided that the eligible student continues
2.11to meet the conditions of eligibility.
2.12 (b) Scholarships may be provided to an eligible student for up to 60 credits for the
2.13completion of a certificate or an associate degree and up to 120 credits for the completion
2.14of a bachelor's degree. The maximum credits for which a student is eligible is a total of 120
2.15credits.
2.16 (c) The commissioner shall determine a time frame by which the eligible student must
2.17complete the credential.
2.18 Subd. 5.Termination of scholarship authorized.A scholarship is terminated upon
2.19occurrence of:
2.20 (1) failure to meet satisfactory academic progress as defined in section 136A.101,
2.21subdivision 10; or
2.22 (2) substantial noncompliance by the eligible student with the requirements of the
2.23program.
2.24 Subd. 6.Account established; appropriation.An account is created in the special
2.25revenue fund for receiving money to provide scholarship awards. Money deposited in the
2.26account is appropriated to the commissioner of the Office of Higher Education for scholarship
2.27awards.
2.28 Subd. 7.Office administration.The office is authorized to administer the program.
2.29The office shall calculate the scholarship amount and determine tuition and fees for each
2.30eligible institution. If funds are insufficient, the office shall determine the scholarship amount
2.31or number of scholarships awarded. The office may determine the order in which other
2.32grants and scholarships are deducted when determining the scholarship amount. If a student
2Section 1.
S1986-1 1st EngrossmentSF1986 REVISOR JFK 3.1withdraws or is no longer enrolled during a semester in which a scholarship was awarded,
3.2the office may determine how this will affect the scholarship.
3.3 Subd. 8.Report.Beginning in 2025, the office shall report by January 15 of each year
3.4to the legislative committees with jurisdiction over higher education on the:
3.5 (1) status of the scholarship fund; and
3.6 (2) Minnesota Commitment to Higher Education Act participation data aggregated for
3.7each eligible institution to show the:
3.8 (i) number of eligible students who received scholarships in the prior academic year;
3.9 (ii) total number of students enrolled in eligible institutions in the prior academic year;
3.10and
3.11 (iii) number of eligible students who graduated with a degree and, for each eligible
3.12student, the number of consecutive semesters and nonconsecutive semesters attended prior
3.13to graduation.
3.14 EFFECTIVE DATE.This section is effective July 1, 2024.
3.15 Sec. 2. TRANSFER.
3.16 $316,893,000 in fiscal year 2025 is transferred from the general fund to the account in
3.17the special revenue fund under Minnesota Statutes, section 136A.1465, subdivision 6. The
3.18base for the transfer under this section is $316,893,000 in fiscal year 2026 and later.
3.19 Sec. 3. APPROPRIATION.
3.20 $230,000 in fiscal year 2024 and $130,000 in fiscal year 2025 are appropriated from the
3.21general fund to the commissioner of the Office of Higher Education for administrative
3.22expenses to implement and direct the scholarship awards under Minnesota Statutes, section
3.23136A.1465.
3Sec. 3.
S1986-1 1st EngrossmentSF1986 REVISOR JFK