1.1 	A bill for an act
1.2 	relating to higher education; establishing Minnesota HOPE awards for financial 
1.3 	aid;amending Minnesota Statutes 2010, section 136A.101, subdivision 1; 
1.4 	proposing coding for new law in Minnesota Statutes, chapter 136A; repealing 
1.5 	Minnesota Statutes 2010, section 136A.1201.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [136A.096] MINNESOTA HOPE AWARDS ESTABLISHED.
1.8 		Subdivision 1.Establishment. Minnesota HOPE awards are established to 
1.9 	provide financial aid to income-eligible students who meet academic achievement goals 
1.10 	at Minnesota postsecondary institutions that meet or exceed performance standards. 
1.11 	Minnesota HOPE awards are made within the resources available from state appropriations 
1.12 	for the awards, transfers from dedicated sources of funding, and any repayment of the 
1.13 	awards by recipients and employers. All award payments are made from the account 
1.14 	established in this section.
1.15 		Subd. 2.Minnesota HOPE award account. The Minnesota HOPE award account 
1.16 	is established as an account in the state treasury for the deposit of state appropriations for 
1.17 	Minnesota HOPE awards, deposit of funds from subdivision 3, and deposit of repayment 
1.18 	amounts under section 136A.098.
1.19 		Subd. 3.Deposit of funds. Proceeds from the issuance of revenue bonds under 
1.20 	section 136A.171 may be deposited into the Minnesota HOPE award account for awards 
1.21 	under section 136A.098, subject to the repayment requirements under section 136A.098.

1.22 	Sec. 2. [136A.097] DEFINITIONS.
1.23 		Subdivision 1.Scope. For the purposes of sections 136A.096 to 136A.099, the 
1.24 	terms defined in this section have the meanings given them.
2.1 		Subd. 2.Award rate. "Award rate" means a rate established in law to adjust a 
2.2 	student's Minnesota HOPE award after the second and subsequent years of eligibility.
2.3 		Subd. 3.Full time. "Full time" means enrollment for a minimum of 13 credits 
2.4 	or the equivalent in a semester or quarter.
2.5 		Subd. 4.Grade point average. "Grade point average" means the numerical average 
2.6 	of grades awarded to a student using a four-point scale.
2.7 		Subd. 5.Qualifying postsecondary institution. "Qualifying postsecondary 
2.8 	institution" means a postsecondary institution with a facility in Minnesota that meets the 
2.9 	requirements of section 136A.103.
2.10 		Subd. 6.Qualifying program. "Qualifying program" means a rigorous secondary 
2.11 	school program of study for Minnesota high school graduates recognized by the Secretary 
2.12 	of Education to determine eligibility for the federal Academic Competitiveness Grant 
2.13 	Program under Title IV of the Higher Education Act of 1965, as amended August 14, 
2.14 	2008. If a qualifying program includes a foreign language requirement, the foreign 
2.15 	language requirement is waived for a student whose first language is not English and 
2.16 	who attains English language proficiency.
2.17 		Subd. 7.Qualifying tuition cap. "Qualifying tuition cap" means the amount of 
2.18 	tuition eligible for a Minnesota HOPE award equal to the actual tuition charged to a 
2.19 	student enrolled in a postsecondary institution in that student's first year of enrollment, not 
2.20 	to exceed an amount set in law.
2.21 		Subd. 8.Resident student. "Resident student" has the meaning given in section 
2.22 	136A.101, subdivision 8.
2.23 		Subd. 9.Satisfactory academic progress. "Satisfactory academic progress" has 
2.24 	the meaning given in section 136A.101, subdivision 10.
2.25 		Subd. 10.Term. "Term" means an academic quarter or an academic semester.
2.26 		Subd. 11.Tuition. "Tuition" means charges by a postsecondary institution to a 
2.27 	student for academic instruction and mandatory fees, including technology, activity, 
2.28 	athletic, health, or similar fees.
2.29 		Subd. 12.Total award. "Total award" means the total amount of all Minnesota 
2.30 	HOPE awards made on behalf of a single recipient.

2.31 	Sec. 3. [136A.098] MINNESOTA HOPE AWARDS.
2.32 		Subdivision 1.Minnesota HOPE award amount. For a student's first year of 
2.33 	enrollment, the Minnesota HOPE award amount is equal to the qualifying tuition cap for 
2.34 	the qualifying postsecondary institution in which the eligible student is enrolled, after 
2.35 	deducting: (1) the assigned family responsibility under section 136A.101, subdivision 5a; 
3.1 	and (2) the amount of a federal Pell grant award for which the student is eligible. For the 
3.2 	second and each subsequent year of enrollment, the Minnesota HOPE award amount is 
3.3 	equal to the first year award adjusted for the Minnesota HOPE award rate for each year.
3.4 		Subd. 2.Payment of awards. The Office of Higher Education shall develop a 
3.5 	process for direct payment to a qualifying postsecondary institution on the student's behalf.
3.6 		Subd. 3.Use of accounts. Minnesota HOPE accounts may only be used for the 
3.7 	payment of semester or quarter tuition costs at a qualifying postsecondary institution 
3.8 	in which the account holder is enrolled.
3.9 		Subd. 4.Recipient repayment. (a) A recipient of a Minnesota HOPE award under 
3.10 	this section must agree as a condition of receiving the award to repay a portion of the 
3.11 	total award according to this subdivision.
3.12 	(b) A recipient who resides in Minnesota must repay five percent per year of the total 
3.13 	award each year for the first five years following graduation from an eligible institution, 
3.14 	up to a maximum repayment of 25 percent of the value of the total award. Repayment 
3.15 	under this paragraph must begin 90 days after the recipient is employed full time. The 
3.16 	remaining unpaid portion of the total award is forgiven after the recipient has made five 
3.17 	years of payments under this paragraph.
3.18 	(c) A recipient who is employed outside of Minnesota upon graduation must repay 
3.19 	100 percent of the total award. Repayment under this paragraph must be made in 240 
3.20 	equal payments over 20 years, beginning 180 days following graduation. A recipient 
3.21 	under this paragraph who later returns to Minnesota and holds full-time employment 
3.22 	may receive credit for payments made. No additional repayment obligation exists for a 
3.23 	returning recipient who has repaid 25 percent of the total award. A recipient who has 
3.24 	repaid more than 25 percent of the total award is not entitled to a reimbursement of any of 
3.25 	the repayment.
3.26 	(d) Repayment is deferred for a recipient who is enrolled in graduate school. All of 
3.27 	the repayment requirements of this subdivision apply to the recipient when the recipient 
3.28 	graduates or is no longer enrolled in graduate school.
3.29 	(e) Repayment is deferred for a recipient who is unemployed and seeking full-time 
3.30 	employment until the recipient is employed full time. No interest is charged or accrued 
3.31 	during deferrals.
3.32 	(f) A recipient who is employed full time, within six months of graduation, in one 
3.33 	of the public service fields or organizations under this paragraph does not have to repay 
3.34 	any of the total award if the recipient is employed full time for a minimum of three years 
3.35 	following graduation. If the recipient leaves public service employment before three 
3.36 	years, the recipient is responsible for the 25 percent repayment required in paragraph (b), 
4.1 	reduced proportionately by the difference between the recipient's years of public service 
4.2 	employment and the five-year repayment period. Eligible public service employment 
4.3 	includes:
4.4 	(1) emergency management;
4.5 	(2) military service;
4.6 	(3) Minnesota public safety;
4.7 	(4) Minnesota law enforcement;
4.8 	(5) Minnesota public education, including early childhood education;
4.9 	(6) social work in a public or family service agency in Minnesota;
4.10 	(7) Minnesota public child care;
4.11 	(8) Minnesota public service for individuals with disabilities;
4.12 	(9) Minnesota public interest law services;
4.13 	(10) Minnesota 501(c)(3) organizations;
4.14 	(11) Minnesota public service for the elderly;
4.15 	(12) Minnesota public library sciences; and
4.16 	(13) Minnesota K-12 or college or university.
4.17 	(g) All repayments under this subdivision are made to the Minnesota HOPE award 
4.18 	account under section 136A.096.

4.19 	Sec. 4. [136A.099] MINNESOTA HOPE AWARDS; ELIGIBILITY.
4.20 		Subdivision 1.Eligibility; first-year Minnesota HOPE awards. To be eligible to 
4.21 	participate in the Minnesota HOPE program, a student must meet the requirements under 
4.22 	section 136A.121, subdivision 2.
4.23 		Subd. 2.Minnesota HOPE pledge. (a) An eligible student must:
4.24 	(1) be enrolled in grade 7 or 8 for the 2012-2013 school year and grade 6, 7, or 8 for 
4.25 	the 2013-2014 school year and for subsequent school years; and
4.26 	(2) agree in writing, together with the student's custodial parents or guardian, that 
4.27 	the student will:
4.28 	(i) graduate from a secondary school located in Minnesota with a qualifying program;
4.29 	(ii) not illegally use controlled substances as defined in section 152.02;
4.30 	(iii) not commit a crime, an infraction, or a delinquent act;
4.31 	(iv) timely apply for admission to a qualifying postsecondary institution and for any 
4.32 	federal and state student financial assistance available to the eligible student to attend a 
4.33 	qualifying postsecondary institution; and
4.34 	(v) achieve a cumulative grade point average upon graduation of at least 2.0 on a 4.0 
4.35 	grading scale or its equivalent for courses taken during grades 9, 10, 11, and 12.
5.1 	(b) A student is eligible to participate in the program if the student:
5.2 	(1) before or during grade 7 or 8, is placed by or with the consent of the Department 
5.3 	of Human Services, by a court order, or by another agency, in:
5.4 	(i) a foster family home;
5.5 	(ii) the home of a relative or other unlicensed caretaker;
5.6 	(iii) an institution for the care of children; or
5.7 	(iv) a group home; and
5.8 	(2) agrees in writing, together with the student's caseworker, to the conditions in 
5.9 	paragraph (a), clause (2).
5.10 		Subd. 3.Eligibility; continuing Minnesota HOPE awards. (a) To be eligible for a 
5.11 	continuing award under this section, a student must apply for renewal each year and be 
5.12 	a resident student who is enrolled and classified as a sophomore, junior, or senior in an 
5.13 	associate or baccalaureate degree program at a qualifying postsecondary institution and 
5.14 	meets the achievement standards under this subdivision:
5.15 	(1) for full-time students, a minimum 2.5 cumulative grade point average at the 
5.16 	end of the term in which the student has attempted 30, 60, or 90 semester credits or 45, 
5.17 	90, or 135 quarter credits;
5.18 	(2) for students who have maintained part-time enrollment status for three 
5.19 	consecutive terms, a minimum 2.5 cumulative grade point average at the end of three 
5.20 	consecutive terms; and
5.21 	(3) for all students, maintain satisfactory academic progress.
5.22 	(b) A student eligible for a continuing award under paragraph (a) may receive an 
5.23 	award until the student meets one of the following conditions:
5.24 	(1) has been awarded a baccalaureate degree;
5.25 	(2) has enrolled for 127 semester credits or 190 quarter credits at any postsecondary 
5.26 	institution; or
5.27 	(3) seven years have elapsed since a student who first receives a Minnesota HOPE 
5.28 	award after June 30, 2011, has graduated from high school, completed a home-school 
5.29 	program, or been awarded a GED.
5.30 	(c) The seven-year period of eligibility following high school graduation or its 
5.31 	equivalent is extended one year for each year that an eligible student serves in the military.
5.32 		Subd. 4.Requalification. (a) A student who is ineligible or has lost eligibility for a 
5.33 	Minnesota Hope award may qualify by meeting the criteria under this subdivision.
5.34 	(b) A full-time student who has lost a HOPE award under subdivision 3, paragraph 
5.35 	(a), because the student's cumulative grade point average is below 2.5 may requalify for an 
5.36 	award after taking an additional 30 semester credits or 45 quarter credits and establishing 
6.1 	a cumulative grade point average of 2.5 or greater. A student may reestablish eligibility 
6.2 	under this paragraph only one time.
6.3 		Subd. 5.Ineligible students. A student is ineligible for a Minnesota HOPE award if 
6.4 	the student meets any of the following criteria:
6.5 	(1) is not a United States citizen or permanent resident alien who meets the definition 
6.6 	of eligible noncitizen for federal Title IV education programs;
6.7 	(2) has not complied with United States Selective Service System requirements for 
6.8 	registration, if applicable;
6.9 	(3) is in default on a federal Title IV educational loan or a SELF loan;
6.10 	(4) owes a refund on a federal Title IV financial aid program or a state financial aid 
6.11 	program;
6.12 	(5) has been convicted of a felony offense involving marijuana, a controlled 
6.13 	substance, or a dangerous drug;
6.14 	(6) is incarcerated; or
6.15 	(7) is a full-time student receiving a Minnesota HOPE award who does not have a 
6.16 	cumulative 2.5 grade point average at the end of a term in which the student has attempted 
6.17 	30, 60, or 90 semester credits or 45, 90, or 135 quarter credits for the student's next 30 
6.18 	semester credits or 45 quarter credits.
6.19 		Subd. 6.Award limitations; continuation of award. An undergraduate student 
6.20 	who meets the requirements is eligible to apply for and receive a Minnesota HOPE 
6.21 	award in any year of undergraduate study unless the student has obtained a baccalaureate 
6.22 	degree or previously has been enrolled full time or the equivalent for eight semesters 
6.23 	or the equivalent, excluding courses taken from a Minnesota school or postsecondary 
6.24 	institution which is not participating in the state grant program and from which a student 
6.25 	transferred no credit. A student who withdraws from enrollment for active military service 
6.26 	or for a major illness, while under the care of a medical professional, that substantially 
6.27 	limits the student's ability to complete the term, is entitled to an additional semester or 
6.28 	the equivalent of grant eligibility.
6.29 		Subd. 7.Administration. (a) The Office of Higher Education is responsible for 
6.30 	administration of the Minnesota HOPE award. The office is responsible for monitoring the 
6.31 	compliance of postsecondary institutions with the requirements of the Minnesota HOPE 
6.32 	award and establishing which postsecondary institutions meet the criteria for eligibility.
6.33 	(b) A qualifying postsecondary institution must provide to the office data on student 
6.34 	enrollment and federal and state financial aid. The institution or its agent must provide 
6.35 	to the office aggregate and distributional financial or other data as determined by the 
6.36 	director that is directly related to the responsibilities of the office under this chapter and 
7.1 	chapter 141. Data provided by nonpublic institutions under this paragraph is considered 
7.2 	nonpublic data under chapter 13.
7.3 	(c) Annually, by November 1 and February 15, the Office of Higher Education must 
7.4 	provide, to the committees of the legislature with jurisdiction over higher education finance 
7.5 	and policy, updated spending projections for Minnesota HOPE awards, taking into account 
7.6 	the most current and projected enrollment and tuition and fee information, economic 
7.7 	conditions, and other relevant factors, based on prior consultation with qualifying 
7.8 	postsecondary institutions, Minnesota Management and Budget, and legislative staff.

7.9 	Sec. 5. Minnesota Statutes 2010, section 136A.101, subdivision 1, is amended to read:
7.10 		Subdivision 1.Scope. For purposes of sections 136A.095 136A.101 to 136A.1311, 
7.11 	the terms defined in this section have the meanings ascribed to them.

7.12 	Sec. 6.  REPEALER.
 7.13 	Minnesota Statutes 2010, section 136A.1201, is repealed.