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Sixty-ninth
Legislative Assembly
of North Dakota
Introduced by
Senators Sickler, Schaible, Sorvaag
Representatives Richter, Sanford
A BILL for an Act to create and enact a new subsection to section 15-10-38.4, a new subsection
to section 15-62.4-03, a new section to chapter 15-62.4, and a new subsection to section
15-62.5-04 of the North Dakota Century Code, relating to student financial assistance grants,
dual-credit tuition scholarships, and the scholars program; to amend and reenact sections
15-10-38.1, 15-10-38.2, 15-63-05, and 15.1-21-02.6 of the North Dakota Century Code, relating
to the skilled workforce student loan repayment and scholarship programs, Native American
scholarships, and the North Dakota scholarship; and to provide an appropriation.
BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
SECTION 1. AMENDMENT. Section 15-10-38.1 of the North Dakota Century Code is
amended and reenacted as follows:
15-10-38.1. Skilled workforce student loan repayment program - Skilled workforce
student loan repayment program fund - Continuing appropriation - Report.
1.There is created in the state treasury the skilled workforce student loan repayment
program fund. The fund consists of moneys transferred into the fund by the legislative
assembly, matching funds received, and loan repayments. Moneys in the fund are
appropriated to the state board of higher education on a continuing basis for the
purpose of distributing student loan repayment grants directly to the Bank of North
Dakota or other participating lender to repay outstanding student loan principal
balances for eligible applicants. The state board of higher education may transfer
money between this fund and the skilled workforce scholarship fund established in
section 15-10-38.2.
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SENATE BILL NO. 2147
SENATE BILL NO. 2147
with House Amendments
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2.The state board of higher education shall adopt policies and procedures to develop,
implement, promote, and administer a skilled workforce student loan repayment
program in cooperation with the Bank of North Dakota and the North Dakota workforce
development council with the intent of attracting and retaining individuals for
professional or technical skills in high demand in this state.
3.The North Dakota workforce development council in cooperation with job service North
Dakota shall use available labor market information to determine annually the eligible
high-demand professional and technical skills and emerging occupations in this state.
4.Graduates of degree or certificate programs from institutions or entities in any state
may apply for the skilled workforce student loan repayment program. To be eligible to
receive student loan repayment grants under the program, the applicant:
a.Must have successfully completed an educational program from an institution of
higher education;
b.Must have a student loan with the Bank of North Dakota or other participating
lender;
c.Following completion of an educational program, must reside and work in this
state in an eligible high-demand or emerging occupation or reside within fifty
miles [80.47 kilometers] of this state and work in this state in an eligible
high - demand or emerging occupation ; and
d.Must have met and shall continue to meet any requirements established in
applicable state board of higher education procedures.
5.The state board of higher education shall adopt procedures to ensure compliance with
residency and occupation requirements after completion of the educational program.
6.The state board of higher education shall distribute student loan repayment grants
from the skilled workforce student loan repayment program fund directly to the Bank of
North Dakota or other participating lender to repay outstanding student loan principal
balances for eligible applicants. The maximum annual student loan repayment grant
amount for which an applicant may qualify is five thousand six hundred sixty-seven
dollars, or one-third of the applicant's outstanding student loan principal balance upon
initial application for the program, whichever is less. The maximum total student loan
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repayment grant amount for which any applicant may qualify is seventeen thousand
dollars.
7.If an individual is receiving loan forgiveness under any other state program, the
individual may not receive a student loan repayment grant under this section during
the same application year.
8.An individual may receive a combined total of no more than seventeen thousand
dollars under this section and the skilled workforce scholarship program under section
15-10-38.2.
9.The state board of higher education shall provide one dollar of funding for each one
dollar of funds raised from the private sector or other public sources. Any matching
funds received must be deposited in the skilled workforce student loan repayment
program fund.
10.An applicant for student loan repayment under this section is ineligible if the applicant:
a.Provides or directs matching funds; or
b.Is the husband, wife, father, mother, brother, sister, son, daughter, father - in - law,
mother - in - law, brother - in - law, sister - in - law, son - in - law, daughter - in - law, stepchild,
uncle, aunt, niece, nephew, or grandchild of:
(1)The individual providing or directing matching funds; or
(2)An individual authorized to make decisions on behalf of an entity providing
or directing matching funds, including a controlling shareholder, member of
the governing body, director, or managing partner.
11.The state board of higher education shall provide a biennial program report to the
legislative management by September first of each even-numbered year. The report
must include information regarding:
a.The eligible high-demand professional and technical skills and emerging
occupations;
b.The number of applicants, eligible applicants, and applicants receiving awards;
c.The amount of matching funds raised; and
d.The average and total amounts awarded under the program.
SECTION 2. AMENDMENT. Section 15-10-38.2 of the North Dakota Century Code is
amended and reenacted as follows:
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15-10-38.2. Skilled workforce scholarship program - Skilled workforce scholarship
fund - Continuing appropriation - Report.
1.There is created in the state treasury the skilled workforce scholarship fund. The fund
consists of moneys transferred into the fund by the legislative assembly, matching
funds received, and scholarship repayments. Moneys in the fund are appropriated to
the state board of higher education on a continuing basis for the purpose of providing
grants to institutions of higher education related to skilled workforce scholarships.
Institutions of higher education include institutions under the control of the state board
of higher education, North Dakota nonpublic accredited institutions of higher
education, tribally controlled community colleges, state-approved educator training
programs, and North Dakota institutions approved to operate by the North Dakota
board of career and technical education. The state board of higher education may
transfer money between this fund and the skilled workforce student loan repayment
program fund established in section 15-10-38.1.
2.The state board of higher education shall adopt policies and procedures to develop,
implement, promote, and administer a skilled workforce scholarship program in
cooperation with the Bank of North Dakota and the North Dakota workforce
development council with the intent of attracting and retaining individuals for
professional or technical skills in high demand in this state.
3.The North Dakota workforce development council in cooperation with job service North
Dakota shall use available labor market information to determine annually the eligible
high-demand professional and technical skills and emerging occupations in this state.
4.The state board of higher education and the workforce development council shall
compile a list of qualifying educational programs annually. A qualifying educational
program is a program resulting in attainment of an associate's degree or lower
credential program that may be completed within four semesters, six quarters, or the
final two years of a baccalaureate program. A qualifying educational program also
must pertain to the professional and technical skills and emerging occupations in high
demand in this state, as determined under subsection 3. Qualifying educational
programs may include degree or certificate programs.
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5.Individuals enrolled in a qualifying educational program in this state may apply for a
scholarship under this section. Scholarships are limited to the amount charged each
quarter, semester, or term by the educational institution for the tuition, fees, books, and
supplies required for the qualifying educational program. The scholarships are
intended to supplement any other scholarship or financial aid grant received by a
student to assist the student with the costs of the qualifying educational program. An
individual may not receive a combined total exceeding seventeen thousand dollars
under this section and the skilled workforce loan repayment program under section
15-10-38.1.
6.To be eligible for a scholarship payment under this section, a student must be enrolled
full time in an eligible program and have at least a 2.5 cumulative grade point average,
based on a 4.0 grading system, or maintain academic progress in the program
according to program requirements. A student may not receive scholarships under this
section for more than the equivalent of four semesters of full-time enrollment or six
quarters of full-time enrollment.
7.Upon completion of a qualifying educational program, a student who received a
scholarship under this section must reside and work in this state in an eligible
high-demand or emerging occupation for a minimum of three years or reside within
fifty miles [80.47 kilometers] of this state and work in this state in an eligible
high - demand or emerging occupation for a minimum of three years .
8.AnExcept as provided in subsection 9, an individual shall repay the scholarship,
excluding the matching funds portion of the scholarship, pursuant to the terms in the
individual's scholarship award agreement if the individual fails to maintain either a 2.5
cumulative grade point average or academic progress according to program
requirements while enrolled, withdraws voluntarily or involuntarily before the
completion of the program for which a scholarship has been received, or fails to reside
and work in this state in an eligible high-demand or emerging occupation for at least
three years following degree or certificate completioncomply with subsection 7 .
9.An individual who receives a scholarship under this section and who transfers from
one eligible academic program to another eligible academic program must complete
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the program within two years and meet all other eligibility requirements to be exempt
from the repayment provisions under subsection 8.
10.The state board of higher education, in conjunction with the Bank of North Dakota,
may allow an individual who received payment under this section to delay or cancel
repayment under this section due to financial difficulty, military service, death, or total
disability.
10.11.Each quarter, semester, or term, the state board of higher education shall distribute
grants to institutions of higher education to provide the amounts necessary for the
scholarships awarded to the students enrolled in each institution.
11.12.The state board of higher education shall provide one dollar of funding for each one
dollar raised from the private sector or other public sources. Any matching funds
received must be deposited in the skilled workforce scholarship fund.
12.13.An applicant for a scholarship payment under this section is ineligible if the applicant:
a.Provides or directs matching funds; or
b.Is the husband, wife, father, mother, brother, sister, son, daughter, father - in - law,
mother - in - law, brother - in - law, sister - in - law, son - in - law, daughter - in - law, stepchild,
uncle, aunt, niece, nephew, or grandchild of:
(1)The individual providing or directing matching funds; or
(2)An individual authorized to make decisions on behalf of an entity providing
or directing matching funds, including a controlling shareholder, member of
the governing body, director, or managing partner.
14.The state board of higher education may issue a scholarship under this section which
is in excess of the total cost of attendance, as determined by the institution of higher
education, when considering all financial aid sources.
15.The state board of higher education shall provide a biennial program report to the
legislative management by September first of each even-numbered year. The report
must include information regarding:
a.The eligible high-demand professional and technical skills and emerging
occupations;
b.The qualifying educational programs;
c.The number of applicants, eligible applicants, and applicants receiving awards;
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d.The amount of matching funds raised; and
e.The average and total amounts awarded under the program.
SECTION 3. A new subsection to section 15-10-38.4 of the North Dakota Century Code is
created and enacted as follows:
The board may issue a scholarship under this section which is in excess of the total
cost of attendance, as determined by the institution of higher education, when
considering all financial aid sources.
SECTION 4. A new subsection to section 15-62.4-03 of the North Dakota Century Code is
created and enacted as follows:
The board may issue a grant under this chapter which is in excess of the total cost of
attendance, as determined by the institution of higher education, when considering all
financial aid sources.
SECTION 5. A new section to chapter 15-62.4 of the North Dakota Century Code is created
and enacted as follows:
Supplemental state grant award.
1.An individual eligible for a student financial assistance grant under this chapter may be
considered for a supplemental state grant award if the individual's total family income,
as identified on the free application for federal student aid, is no more than eighty
thousand dollars.
2.A supplemental state grant award may not be provided for the summer term.
3.Each semester or quarter, the state board of higher education shall provide to an
eligible student a supplemental state grant award in an amount that, combined with
the individual's student financial assistance grant and any federal Pell grant award,
does not exceed the tuition charged at the institution in which the student is enrolled.
The amount may not exceed the highest undergraduate semester tuition charged at
an institution of higher education under the control of the state board of higher
education.
4.If funding appropriated for this program is not sufficient to pay the full amount of the
grant award under subsection 3, the state board of higher education may prorate the
amount.
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5.The state board of higher education may impose deadlines to qualify for an award
under this section.
SECTION 6. A new subsection to section 15-62.5-04 of the North Dakota Century Code is
created and enacted as follows:
The board may issue a scholarship under this chapter which is in excess of the total
cost of attendance, as determined by the institution of higher education, when
considering all financial aid sources.
SECTION 7. AMENDMENT. Section 15-63-05 of the North Dakota Century Code is
amended and reenacted as follows:
15-63-05. Scholarship payments - Conditions.
Upon the award of a scholarship, the recipient is eligible for a credit at the enrolling
institution of higher learning or accredited career and technical education program with a
physical presence in this state. The scholarship may be applied to tuition, fees, room and board,
books and supplies, and other educational expenses not to exceed six hundred sixty-seven
dollars per quarter or clock-hour term or one thousand dollars per semester. Awards may not
exceed two thousand dollars in any academic year and may be issued in excess of the total
cost of attendance, as determined by the institution of higher education, when considering all
financial aid sources. The board for Native American scholarships may reduce the amount of
any scholarship to accord with individual financial need or funds available. The board for Native
American scholarships may set a priority application date. At the beginning of each quarter,
clock-hour term, or semester, the North Dakota university system shall verify enrollment and
other eligibility criteria set forth by the state board for Native American scholarships for awarded
applicants before issuing payment to the enrolling institution. After the enrolling institution has
deducted the amount due to the institution, the remaining balance must be distributed to the
awarded applicant for necessary expenses during the quarter, clock-hour term, or semester.
SECTION 8. AMENDMENT. Section 15.1-21-02.6 of the North Dakota Century Code is
amended and reenacted as follows:
15.1-21-02.6. North Dakota scholarship - Amount - Applicability. (Effective through
July 31, 2030)
1.a.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
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scholarship, a North Dakota academic scholarship, or a North Dakota career and
technical education scholarship in the amount of seven hundred fifty dollars for
each semester during which the student is enrolled full time at an accredited
institution of higher education with a physical presence in this state, maintains a
cumulative grade point average of 2.75, and maintains progress toward program
completion.
b.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
scholarship, a North Dakota academic scholarship, or a North Dakota career and
technical education scholarship in the amount of five hundred dollars for each
quarter or clock-hour term during which the student is enrolled full time at an
accredited institution of higher education with a physical presence in this state or
an accredited private career school with a physical presence in this state,
maintains a cumulative grade point average of 2.75, and maintains progress
toward program completion.
c.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
scholarship, a North Dakota academic scholarship, or a North Dakota career and
technical education scholarship in the amount of five hundred dollars each term if
the student is enrolled in a qualifying registered apprenticeship program within
this state. The state board of higher education and the state board for career and
technical education shall establish:
(1)Procedures to administer the scholarship;
(2)Requirements for eligibility, including full-time enrollment, program progress,
and a minimum grade point average or its equivalency; and
(3)A payment schedule.
2.The state board shall monitor each scholarship recipient to ensure that the student
meets the academic and other requirements of this section. Upon determining a
recipient student has failed to meet the requirements of this section, the board shall
provide notification to the student within ten business days.
3.A student is not entitled to receive more than six thousand dollars under this section.
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4.The state board of higher education shall forward the scholarship directly to the
institution in which the student is enrolled.
5.The state board of higher education may issue a scholarship under this section which
is in excess of the total cost of attendance, as determined by the institution of higher
education, when considering all financial aid sources.
6.a.This section does not require a student to be enrolled in consecutive semesters,
quarters, or clock-hour terms.
b.A scholarship under this section is valid only for six academic years after the
student's graduation from high school and may be applied to a graduate or
professional program.
6.7.A scholarship under this section is available to any eligible resident student who fulfills
the requirements of section 15.1-21-02.4, section 15.1-21-02.5, or section
15.1-21-02.10 and who:
a.Graduates from a high school in this state;
b.Graduates from a high school in a bordering state under chapter 15.1-29;
c.Graduates from a nonpublic high school in a bordering state while residing with a
custodial parent in this state; or
d.Completes a program of home education supervised in accordance with chapter
15.1-23.
7.8.a.For purposes of North Dakota scholarship eligibility under this section, "full-time"
has the same meaning as the term is defined by the institution the student is
attending.
b.A student who is enrolled less than full-time may retain scholarship eligibility if the
student is in the final semester, quarter, or clock-hour term before program
completion. The waiver of the full-time enrollment status requirement for
scholarship eligibility may not apply to a student more than once.
c.For the purpose of North Dakota scholarship eligibility under this section,
"progress toward program completion" means earning the following minimum
number of credits after each semester, quarter, or clock-hour term disbursement
to qualify for the subsequent disbursement:
(1)Twenty-four credits after disbursement two;
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(2)Thirty-nine credits after disbursement three;
(3)Fifty-four credits after disbursement four;
(4)Sixty-nine credits after disbursement five;
(5)Eighty-four credits after disbursement six; and
(6)Ninety-nine credits after disbursement seven.
8.9.For purposes of scholarship eligibility under this section, "clock-hour term" has the
same meaning as the term is defined by the state board of higher education. The state
board of higher education shall determine the conversion of:
a.Clock hours to credit hours; and
b.Percentage-based grading to grade point average.
North Dakota scholarship - Amount - Applicability. (Effective after July 31, 2030)
1.a.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
scholarship in the amount of seven hundred fifty dollars for each semester during
which the student is enrolled full time at an accredited institution of higher
education with a physical presence in this state, maintains a cumulative grade
point average of 2.75, and maintains progress toward program completion.
b.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
scholarship in the amount of five hundred dollars for each quarter or clock-hour
term during which the student is enrolled full time at an accredited institution of
higher education with a physical presence in this state or an accredited private
career school with a physical presence in this state, maintains a cumulative
grade point average of 2.75, and maintains progress toward program completion.
c.The state board of higher education shall provide to any student certified as
being eligible by the superintendent of public instruction a North Dakota
scholarship, a North Dakota academic scholarship, or a North Dakota career and
technical education scholarship in the amount of five hundred dollars each term if
the student is enrolled in a qualifying registered apprenticeship program within
this state. The state board of higher education and the state board for career and
technical education shall establish:
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(1)Procedures to administer the scholarship;
(2)Requirements for eligibility, including full-time enrollment, program progress,
and a minimum grade point average or its equivalency; and
(3)A payment schedule.
2.The state board shall monitor each scholarship recipient to ensure the student meets
the academic and other requirements of this section. Upon determining a recipient
student has failed to meet the requirements of this section, the board shall provide
notification to the student within ten business days.
3.A student is not entitled to receive more than six thousand dollars under this section.
4.The state board of higher education shall forward the scholarship directly to the
institution in which the student is enrolled.
5.The state board of higher education may issue a scholarship under this section which
is in excess of the total cost of attendance, as determined by the institution of higher
education, when considering all financial aid sources.
6.a.This section does not require a student to be enrolled in consecutive semesters,
quarters, or clock-hour terms.
b.A scholarship under this section is valid only for six academic years after the
student's graduation from high school and may be applied to a graduate or
professional program.
6.7.A scholarship under this section is available to any eligible resident student who fulfills
the requirements of section 15.1-21-02.10 and who:
a.Graduates from a high school in this state;
b.Graduates from a high school in a bordering state under chapter 15.1-29;
c.Graduates from a nonpublic high school in a bordering state while residing with a
custodial parent in this state; or
d.Completes a program of home education supervised in accordance with chapter
15.1-23.
7.8.a.For purposes of North Dakota scholarship eligibility under this section, "full-time"
has the same meaning as the term is defined by the institution the student is
attending.
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b.A student who is enrolled less than full-time may retain scholarship eligibility if the
student is in the final semester, quarter, or clock-hour term before program
completion. The waiver of the full-time enrollment status requirement for
scholarship eligibility may not apply to a student more than once.
c.For the purpose of North Dakota scholarship eligibility under this section,
"progress toward program completion" means earning the following minimum
number of credits after each semester, quarter, or clock-hour term disbursement
to qualify for the subsequent disbursement:
(1)Twenty-four credits after disbursement two;
(2)Thirty-nine credits after disbursement three;
(3)Fifty-four credits after disbursement four;
(4)Sixty-nine credits after disbursement five;
(5)Eighty-four credits after disbursement six; and
(6)Ninety-nine credits after disbursement seven.
8.9.For purposes of scholarship eligibility under this section, "clock-hour term" has the
same meaning as the term is defined by the state board of higher education. The state
board of higher education shall determine the conversion of:
a.Clock hours to credit hours; and
b.Percentage-based grading to grade point average.
SECTION 9. APPROPRIATION - NORTH DAKOTA UNIVERSITY SYSTEM OFFICE -
SUPPLEMENTAL STUDENT FINANCIAL ASSISTANCE GRANTS. There is appropriated out
of any moneys in the general fund in the state treasury, not otherwise appropriated, the sum of
$2,000,000, or so much of the sum as may be necessary, to the North Dakota university system
office for the purpose of providing supplemental student financial assistance grants, for the
biennium beginning July 1, 2025, and ending June 30, 2027.
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