1.1                          A bill for an act
  1.2             relating to education; changing conditions for state 
  1.3             grants by reducing the student share; raising the 
  1.4             living and miscellaneous allowance; providing 
  1.5             work-study for grant recipients; appropriating money; 
  1.6             amending Minnesota Statutes 1996, sections 136A.121, 
  1.7             subdivision 5; and 136A.233, subdivisions 1 and 3. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 136A.121, 
  1.10  subdivision 5, is amended to read: 
  1.11     Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
  1.12  based on a sharing of responsibility for covering the recognized 
  1.13  cost of attendance by the applicant, the applicant's family, and 
  1.14  the government.  The amount of a financial stipend must not 
  1.15  exceed a grant applicant's recognized cost of attendance, as 
  1.16  defined in subdivision 6, after deducting the following:  
  1.17     (1) the assigned student responsibility of at least ~~50~~ 40 
  1.18  percent of the cost of attending the institution of the 
  1.19  applicant's choosing; 
  1.20     (2) the assigned family responsibility, as determined by 
  1.21  the federal need analysis, which for (i) dependent students, is 
  1.22  the parental contribution as calculated by the federal need 
  1.23  analysis, and for (ii) independent students, is the student 
  1.24  contribution as determined by the federal need analysis; and 
  1.25     (3) the amount of a federal Pell grant award for which the 
  1.26  grant applicant is eligible.  
  2.1      The minimum financial stipend is $300 per academic year.  
  2.2      Sec. 2.  Minnesota Statutes 1996, section 136A.233, 
  2.3   subdivision 1, is amended to read: 
  2.4      Subdivision 1.  [ALLOCATION TO INSTITUTIONS.] The higher 
  2.5   education services office shall allocate work-study money to 
  2.6   eligible post-secondary institutions according to the resident 
  2.7   full-time equivalent enrollment of all eligible post-secondary 
  2.8   institutions that apply to participate in the program, the 
  2.9   number of state grant recipients, and the amount of the 
  2.10  allocation that an institution spent during the previous 
  2.11  academic year.  Each institution wishing to participate in the 
  2.12  work-study program must submit, in accordance with policies and 
  2.13  procedures established by the office, an estimate of the amount 
  2.14  of funds needed by the institution.  Any funds allocated to an 
  2.15  institution that exceed the actual need of the institution shall 
  2.16  be reallocated by the office to other institutions.  An 
  2.17  institution may carry forward or backward the same percentage of 
  2.18  its initial allocation that is authorized under federal 
  2.19  work-study provisions.  
  2.20     Sec. 3.  Minnesota Statutes 1996, section 136A.233, 
  2.21  subdivision 3, is amended to read: 
  2.22     Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
  2.23  eligible students by post-secondary institutions as provided in 
  2.24  this subdivision. 
  2.25     (a) Students shall be selected for participation in the 
  2.26  program by the post-secondary institution on the basis of 
  2.27  student financial need. 
  2.28     (b) All state grant recipients must be offered an 
  2.29  opportunity to participate in work-study, but work-study 
  2.30  participants do not have to be state grant recipients.  
  2.31     (c) In selecting students for participation, priority must 
  2.32  be given to students enrolled for at least 12 credits, except 
  2.33  that all state grant recipients shall receive priority. 
  2.34     ~~(c)~~ (d) Students will be paid for hours actually worked and 
  2.35  the maximum hourly rate of pay shall not exceed the maximum 
  2.36  hourly rate of pay permitted under the federal college 
  3.1   work-study program. 
  3.2      ~~(d)~~ (e) Minimum pay rates will be determined by an 
  3.3   applicable federal or state law. 
  3.4      ~~(e)~~ (f) The office shall annually establish a minimum 
  3.5   percentage rate of student compensation to be paid by an 
  3.6   eligible employer. 
  3.7      ~~(f)~~ (g) Each post-secondary institution receiving money for 
  3.8   state work-study grants shall make a reasonable effort to place 
  3.9   work-study students in employment with eligible employers 
  3.10  outside the institution.  However, a public employer other than 
  3.11  the institution may not terminate, lay off, or reduce the 
  3.12  working hours of a permanent employee for the purpose of hiring 
  3.13  a work-study student, or replace a permanent employee who is on 
  3.14  layoff from the same or substantially the same job by hiring a 
  3.15  work-study student. 
  3.16     ~~(g)~~ (h) The percent of the institution's work-study 
  3.17  allocation provided to graduate students shall not exceed the 
  3.18  percent of graduate student enrollment at the participating 
  3.19  institution. 
  3.20     Sec. 4.  [APPROPRIATION.] 
  3.21     Subdivision 1.  [STATE GRANTS.] $89,000,000 is appropriated 
  3.22  in fiscal year 1998 and $89,000,000 is appropriated in fiscal 
  3.23  year 1999 from the general fund to the higher education services 
  3.24  office to be added to the base appropriation in each year for 
  3.25  the state grant program.  This addition is to reduce the student 
  3.26  share from 50 percent to 40 percent as provided in section 1 and 
  3.27  to increase the living and miscellaneous allowance to $5,200 in 
  3.28  each year. 
  3.29     Subd. 2.  [WORK-STUDY.] $50,000,000 is appropriated in 
  3.30  fiscal year 1998 and $50,000,000 is appropriated in fiscal year 
  3.31  1999 from the general fund to the higher education services 
  3.32  office to be added to the base appropriation in each year for 
  3.33  the state work-study program to increase work-study 
  3.34  opportunities, including making work-study available to all 
  3.35  state grant recipients as provided in section 3.