1.1                          A bill for an act 
  1.2             relating to education; providing for Minnesota 
  1.3             undergraduate college and university scholarship 
  1.4             trusts; appropriating money; proposing coding for new 
  1.5             law in Minnesota Statutes, chapters 11A; and 135A. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [11A.165] [MINNESOTA UNDERGRADUATE COLLEGE AND 
  1.8   UNIVERSITY TUITION SCHOLARSHIP TRUST FUND.] 
  1.9      Subdivision 1.  [ESTABLISHMENT.] A fund called the 
  1.10  Minnesota undergraduate college and university tuition 
  1.11  scholarship trust fund is established in the state treasury for 
  1.12  the purpose of investing money for tuition scholarships to 
  1.13  post-secondary students under section 135A.32. 
  1.14     Subd. 2.  [ASSETS.] The assets of the Minnesota 
  1.15  undergraduate college and university tuition scholarship trust 
  1.16  fund shall consist of any money appropriated to the fund and any 
  1.17  income arising from the invested assets of the fund.  All income 
  1.18  from the fund is appropriated for the purpose of tuition 
  1.19  scholarships under section 135A.32. 
  1.20     Subd. 3.  [MANAGEMENT.] The Minnesota undergraduate college 
  1.21  and university tuition scholarship trust fund shall be invested 
  1.22  by the state board subject to the provisions of section 11A.24. 
  1.23     Subd. 4.  [DISTRIBUTION OF INCOME.] (a) The state board 
  1.24  shall annually transfer .. percent of the income from the fund 
  1.25  to the higher education services office for distribution to 
  2.1   eligible students under section 135A.32.  Income transferred to 
  2.2   the higher education services office which is not spent does not 
  2.3   cancel but is available for scholarships in the following fiscal 
  2.4   year. 
  2.5      (b) The state board shall annually transfer the remaining 
  2.6   .. percent of the income to the board of regents of the 
  2.7   University of Minnesota. 
  2.8      Sec. 2.  [135A.32] [MINNESOTA UNDERGRADUATE COLLEGE AND 
  2.9   UNIVERSITY TUITION SCHOLARSHIP TRUST PROGRAM.] 
  2.10     Subdivision 1.  [ESTABLISHMENT.] A Minnesota undergraduate 
  2.11  college and university tuition scholarship trust program is 
  2.12  established to provide scholarships for the costs of tuition and 
  2.13  fees to undergraduate students attending Minnesota public or 
  2.14  private colleges and universities. 
  2.15     Subd. 2.  [ELIGIBILITY.] To be eligible to receive a 
  2.16  scholarship, a student must: 
  2.17     (1) be a resident of the state of Minnesota; 
  2.18     (2) be enrolled full time in an undergraduate degree 
  2.19  program at a Minnesota public or private college or university; 
  2.20  and 
  2.21     (3) demonstrate academic merit, financial need as defined 
  2.22  in section 136A.101, subdivision 5, or both. 
  2.23     Subd. 3.  [ALLOCATION; AWARDS.] (a) For students enrolled 
  2.24  in a Minnesota private college or university or a state college 
  2.25  or university governed by the board of trustees of the Minnesota 
  2.26  state colleges and universities, scholarships must be awarded on 
  2.27  a funds available basis from income transferred to the higher 
  2.28  education services office by the state board of investment under 
  2.29  section 11A.165.  The higher education services office shall 
  2.30  adopt rules to govern the amount and distribution of tuition 
  2.31  scholarship awards pursuant to this subdivision provided that no 
  2.32  student shall receive a scholarship for more than four years.  
  2.33  Income transferred to the higher education services office for 
  2.34  tuition scholarship awards under this paragraph shall be 
  2.35  allocated according to the following:  
  2.36     (1) .. percent of the income must be available for tuition 
  3.1   scholarships to students enrolled full time in an undergraduate 
  3.2   degree program at a state college or university governed by the 
  3.3   board of trustees of the Minnesota state colleges and 
  3.4   universities; and 
  3.5      (2) .. percent of the income must be available for tuition 
  3.6   scholarships to students enrolled in an undergraduate degree 
  3.7   program at a Minnesota private college or university.  
  3.8      (b) For students enrolled at the University of Minnesota, 
  3.9   scholarships must be available for awards on a funds available 
  3.10  basis from income transferred to the board of regents of the 
  3.11  University of Minnesota by the state board of investment under 
  3.12  section 11A.165.  The tuition scholarships must be allocated to 
  3.13  the various campuses of the University of Minnesota in 
  3.14  proportion to the number of full-time undergraduate students 
  3.15  enrolled on each campus.  The board of regents shall determine 
  3.16  the amount and distribution of tuition scholarship awards 
  3.17  provided that no student shall receive a scholarship for more 
  3.18  than four years. 
  3.19     (c) Tuition scholarships awarded under this section must 
  3.20  not be considered in determining a student's financial need as 
  3.21  provided in section 136A.101, subdivision 5.  
  3.22     Sec. 3.  [APPROPRIATION.] 
  3.23     $100,000,000 is appropriated from the general fund in 
  3.24  fiscal year 1998 to the state board of investment for the 
  3.25  Minnesota undergraduate college and university tuition 
  3.26  scholarship trust fund under section 1.