1 | 1 | | LRB-2112/1 |
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2 | 2 | | JAM:cdc |
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3 | 3 | | 2023 - 2024 LEGISLATURE |
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4 | 4 | | 2023 SENATE BILL 95 |
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5 | 5 | | March 1, 2023 - Introduced by Senator C ABRAL-GUEVARA, cosponsored by |
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6 | 6 | | Representatives SORTWELL, ALLEN, ARMSTRONG, BEHNKE, EDMING, GUSTAFSON |
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7 | 7 | | and ROZAR. Referred to Committee on Universities and Revenue. |
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8 | 8 | | AN ACT to create 36.28, 38.25 and 39.55 of the statutes; relating to: permissible |
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9 | 9 | | financial aid reductions in higher education. |
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10 | 10 | | Analysis by the Legislative Reference Bureau |
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11 | 11 | | This bill prohibits higher education institutions (University of Wisconsin |
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12 | 12 | | System institutions, Wisconsin technical colleges, and private, nonprofit institutions |
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13 | 13 | | that are members of the Wisconsin Association of Independent Colleges and |
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14 | 14 | | Universities) from reducing gift aid that the higher education institution has offered |
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15 | 15 | | to a student because the student has received a private or external “last-dollar |
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16 | 16 | | scholarship” from a Wisconsin-based entity unless certain circumstances apply. |
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17 | 17 | | “Gift aid” is defined in the bill as all financial aid that is not a loan or work-study |
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18 | 18 | | program and includes grants, scholarships, tuition waivers, and third-party |
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19 | 19 | | payments. “Last-dollar scholarship” is defined as gift aid awarded to a student to |
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20 | 20 | | meet any of the student's financial need not met by federal, state, or institutional gift |
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21 | 21 | | aid. |
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22 | 22 | | Under this bill, a higher education institution may reduce the amount of a |
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23 | 23 | | student's offered gift aid in order to comply with the individual or team financial aid |
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24 | 24 | | restrictions of a governing national intercollegiate athletic association. Additionally, |
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25 | 25 | | under the bill a higher education institution may reduce the amount of offered gift |
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26 | 26 | | aid if the student's total gift aid from all sources exceeds the student's financial need, |
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27 | 27 | | and the higher education institution may further reduce a student's offered gift aid |
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28 | 28 | | if the higher education institution receives approval to do so from the organization |
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29 | 29 | | that has awarded the private or external scholarship that triggered the student's |
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30 | 30 | | total gift aid exceeding the student's financial need. |
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32 | 32 | | 2 - 2 -2023 - 2024 Legislature LRB-2112/1 |
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33 | 33 | | JAM:cdc |
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34 | 34 | | SENATE BILL 95 |
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35 | 35 | | For further information see the state and local fiscal estimate, which will be |
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36 | 36 | | printed as an appendix to this bill. |
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37 | 37 | | The people of the state of Wisconsin, represented in senate and assembly, do |
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38 | 38 | | enact as follows: |
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39 | 39 | | SECTION 1. 36.28 of the statutes is created to read: |
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40 | 40 | | 36.28 Financial aid reduction restrictions. (1) DEFINITIONS. In this |
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41 | 41 | | section: |
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42 | 42 | | (a) “Cost of attendance” has the meaning given in 20 USC 1087ll. |
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43 | 43 | | (b) “Expected family contribution” means the amount determined in |
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44 | 44 | | accordance with 20 USC 1087nn. |
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45 | 45 | | (c) “Financial need” means a student's cost of attendance minus the student's |
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46 | 46 | | expected family contribution. |
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47 | 47 | | (d) “Gift aid” means all financial aid that is not a loan or work-study program, |
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48 | 48 | | including grants, scholarships, tuition waivers, and third-party payments. |
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49 | 49 | | (e) “Institutional gift aid” means gift aid that is funded by the system, the |
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50 | 50 | | board, or an institution. |
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51 | 51 | | (f) “Last-dollar scholarship” means gift aid awarded to a student to meet any |
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52 | 52 | | of the student's financial need amount not met by federal gift aid, state gift aid, or |
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53 | 53 | | institutional gift aid. |
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54 | 54 | | (g) “Private scholarship” means a last-dollar scholarship awarded by a |
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55 | 55 | | Wisconsin-based company, private foundation, nonprofit organization, or service |
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56 | 56 | | group. “Private scholarship” does not include an award funded by a private |
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57 | 57 | | organization that is affiliated with the system, the board, or an institution and that |
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58 | 58 | | requests that the system, the board, or an institution provide assistance in selecting |
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59 | 59 | | recipients. |
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80 | 80 | | 21 - 3 -2023 - 2024 Legislature |
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81 | 81 | | LRB-2112/1 |
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82 | 82 | | JAM:cdc |
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83 | 83 | | SECTION 1 |
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84 | 84 | | SENATE BILL 95 |
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85 | 85 | | (2) FINANCIAL AID REDUCTION RESTRICTIONS. An institution may reduce a |
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86 | 86 | | student's institutional gift aid offer as a result of a private scholarship award only |
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87 | 87 | | as described in one or more of the following manners: |
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88 | 88 | | (a) If a student's total gift aid from all sources exceeds the student's financial |
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89 | 89 | | need, an institution may reduce the student's institutional gift aid until the student's |
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90 | 90 | | total gift aid no longer exceeds the student's financial need. |
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91 | 91 | | (b) In addition to the reduction authorized under par. (a), an institution may |
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92 | 92 | | further reduce a student's institutional gift aid if the institution receives approval |
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93 | 93 | | from the company, private foundation, nonprofit organization, or service group that |
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94 | 94 | | awarded the private scholarship that triggered the reduction authorized under par. |
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95 | 95 | | (a). |
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96 | 96 | | (c) An institution may reduce a student athlete's institutional gift aid in order |
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97 | 97 | | to comply with a governing national intercollegiate athletic association's individual |
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98 | 98 | | or team financial aid restrictions. |
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99 | 99 | | SECTION 2. 38.25 of the statutes is created to read: |
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100 | 100 | | 38.25 Financial aid reduction restrictions. (1) DEFINITIONS. In this |
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101 | 101 | | section: |
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102 | 102 | | (a) “Cost of attendance” has the meaning given in 20 USC 1087ll. |
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103 | 103 | | (b) “Expected family contribution” means the amount determined in |
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104 | 104 | | accordance with 20 USC 1087nn. |
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105 | 105 | | (c) “Financial need” means a student's cost of attendance minus the student's |
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106 | 106 | | expected family contribution. |
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107 | 107 | | (d) “Gift aid” means all financial aid that is not a loan or work-study program, |
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108 | 108 | | including grants, scholarships, tuition waivers, and third-party payments. |
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132 | 132 | | 24 - 4 -2023 - 2024 Legislature LRB-2112/1 |
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133 | 133 | | JAM:cdc |
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134 | 134 | | SECTION 2 SENATE BILL 95 |
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135 | 135 | | (e) “Institutional gift aid” means gift aid that is funded by the board, a district |
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136 | 136 | | board, or a technical college. |
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137 | 137 | | (f) “Last-dollar scholarship” means gift aid awarded to a student to meet any |
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138 | 138 | | of the student's financial need amount not met by federal gift aid, state gift aid, or |
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139 | 139 | | institutional gift aid. |
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140 | 140 | | (g) “Private scholarship” means a last-dollar scholarship awarded by a |
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141 | 141 | | Wisconsin-based company, private foundation, nonprofit organization, or service |
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142 | 142 | | group. “Private scholarship” does not include an award funded by a private |
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143 | 143 | | organization that is affiliated with the board, a district board, or a technical college |
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144 | 144 | | and that requests that the board, a district board, or a technical college provide |
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145 | 145 | | assistance in selecting recipients. |
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146 | 146 | | (2) FINANCIAL AID REDUCTION RESTRICTIONS. A technical college may reduce a |
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147 | 147 | | student's institutional gift aid offer as a result of a private scholarship award only |
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148 | 148 | | as described in one or more of the following manners: |
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149 | 149 | | (a) If a student's total gift aid from all sources exceeds the student's financial |
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150 | 150 | | need, a technical college may reduce the student's institutional gift aid until the |
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151 | 151 | | student's total gift aid no longer exceeds the student's financial need. |
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152 | 152 | | (b) In addition to the reduction authorized under par. (a), a technical college |
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153 | 153 | | may further reduce a student's institutional gift aid if the technical college receives |
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154 | 154 | | approval from the company, private foundation, nonprofit organization, or service |
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155 | 155 | | group that awarded the private scholarship that triggered the reduction authorized |
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156 | 156 | | under par. (a). |
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157 | 157 | | (c) A technical college may reduce a student athlete's institutional gift aid in |
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158 | 158 | | order to comply with a governing national intercollegiate athletic association's |
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159 | 159 | | individual or team financial aid restrictions. |
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184 | 184 | | 25 - 5 -2023 - 2024 Legislature |
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185 | 185 | | LRB-2112/1 |
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186 | 186 | | JAM:cdc |
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187 | 187 | | SECTION 3 |
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188 | 188 | | SENATE BILL 95 |
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189 | 189 | | SECTION 3. 39.55 of the statutes is created to read: |
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190 | 190 | | 39.55 Financial aid reduction restrictions. (1) DEFINITIONS. In this |
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191 | 191 | | section: |
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192 | 192 | | (a) “Cost of attendance” has the meaning given in 20 USC 1087ll. |
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193 | 193 | | (b) “Expected family contribution” means the amount determined in |
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194 | 194 | | accordance with 20 USC 1087nn. |
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195 | 195 | | (c) “External scholarship” means a last-dollar scholarship awarded by a |
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196 | 196 | | Wisconsin-based company, private foundation, nonprofit organization, or service |
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197 | 197 | | group. “External scholarship” does not include an award funded by an external |
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198 | 198 | | organization that is affiliated with private higher education institution and that |
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199 | 199 | | requests that the private higher education institution provide assistance in selecting |
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200 | 200 | | recipients. |
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201 | 201 | | (d) “Financial need” means a student's cost of attendance minus the student's |
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202 | 202 | | expected family contribution. |
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203 | 203 | | (e) “Gift aid” means all financial aid that is not a loan or work-study program, |
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204 | 204 | | including grants, scholarships, tuition waivers, and third-party payments. |
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205 | 205 | | (f) “Institutional gift aid” means gift aid that is funded by a private higher |
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206 | 206 | | education institution. |
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207 | 207 | | (g) “Last-dollar scholarship” means gift aid awarded to a student to meet any |
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208 | 208 | | of the student's financial need amount not met by federal gift aid, state gift aid, or |
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209 | 209 | | institutional gift aid. |
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210 | 210 | | (h) “Private higher education institution” means a private, nonprofit |
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211 | 211 | | institution of higher education that is a member of the Wisconsin Association of |
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212 | 212 | | Independent Colleges and Universities. |
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236 | 236 | | 24 - 6 -2023 - 2024 Legislature LRB-2112/1 |
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237 | 237 | | JAM:cdc |
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238 | 238 | | SECTION 3 SENATE BILL 95 |
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239 | 239 | | (2) FINANCIAL AID REDUCTION RESTRICTIONS. A private higher education |
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240 | 240 | | institution may reduce a student's institutional gift aid offer as a result of an external |
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241 | 241 | | scholarship award only as described in one or more of the following manners: |
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242 | 242 | | (a) If a student's total gift aid from all sources exceeds the student's financial |
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243 | 243 | | need, a private higher education institution may reduce the student's institutional |
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244 | 244 | | gift aid until the student's total gift aid no longer exceeds the student's financial need. |
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245 | 245 | | (b) In addition to the reduction authorized under par. (a), a private higher |
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246 | 246 | | education institution may further reduce a student's institutional gift aid if the |
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247 | 247 | | private higher education institution receives approval from the company, private |
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248 | 248 | | foundation, nonprofit organization, or service group that awarded the external |
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249 | 249 | | scholarship that triggered the reduction authorized under par. (a). |
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250 | 250 | | (c) A private higher education institution may reduce a student athlete's |
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251 | 251 | | institutional gift aid in order to comply a governing national intercollegiate athletic |
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252 | 252 | | association's individual or team financial aid restrictions. |
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253 | 253 | | (END) |
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