1.1                          A bill for an act 
  1.2             relating to higher education; modifying financial aid 
  1.3             for postsecondary students; appropriating money; 
  1.4             amending Minnesota Statutes 2002, sections 136A.101, 
  1.5             subdivision 4; 136A.121, subdivision 6; 136A.125, 
  1.6             subdivisions 1, 3; 136A.232; 136A.233; proposing 
  1.7             coding for new law in Minnesota Statutes, chapters 
  1.8             136A; 136F; 137; repealing Minnesota Statutes 2002, 
  1.9             sections 136A.1211; 136A.122. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [136A.096] [FINANCIAL AID; PRIVATE COLLEGES.] 
  1.12     Subdivision 1.  [GRANTS; FINANCIAL ASSISTANCE.] The higher 
  1.13  education services office shall make grants to the Minnesota 
  1.14  private colleges council to administer financial aid programs 
  1.15  based on the financial needs of students attending member 
  1.16  institutions.  The programs must include aid for the cost of 
  1.17  attendance, child care assistance, and work-study assistance.  
  1.18     Subd. 2.  [FINANCIAL ASSISTANCE STIPENDS.] The council, in 
  1.19  consultation with its student association, must develop 
  1.20  guidelines to identify men and women of the state who are 
  1.21  economically disadvantaged and to provide financial assistance 
  1.22  to encourage their educational development.  The council must 
  1.23  allocate money appropriated for this purpose to its member 
  1.24  institutions to provide stipends to assist undergraduate 
  1.25  students with the cost of attendance based on a student's 
  1.26  demonstrated financial need.  An eligible student must be a 
  1.27  resident of Minnesota as defined in section 136A.101, 
  2.1   subdivision 8.  Money provided for financial assistance must be 
  2.2   used only for this purpose. 
  2.3      Subd. 3.  [WORK-STUDY ASSISTANCE.] The council shall 
  2.4   develop program guidelines and allocate money appropriated for 
  2.5   this purpose to its member institutions for assistance to 
  2.6   students based on demonstrated financial need through work-study 
  2.7   payments.  Eligible students must be Minnesota residents as 
  2.8   defined in section 136A.101, subdivision 8. 
  2.9      Subd. 4.  [CHILD CARE ASSISTANCE.] The council shall 
  2.10  develop program guidelines and allocate money appropriated for 
  2.11  this purpose to its member institutions for assistance to reduce 
  2.12  the cost of child care for students with demonstrated financial 
  2.13  need.  Eligible students must be Minnesota residents as defined 
  2.14  in section 136A.101, subdivision 8. 
  2.15     Subd. 5.  [REPORTS.] The council must report, in a timely 
  2.16  manner, at the end of each academic term to the higher education 
  2.17  services office on students receiving assistance under this 
  2.18  section.  The report must include, but is not limited to, the 
  2.19  number and types of grants and payments made to students at each 
  2.20  member institution, the amount of the award, the educational 
  2.21  status of the grant recipient, and demographic information on 
  2.22  each recipient. 
  2.23     Sec. 2.  Minnesota Statutes 2002, section 136A.101, 
  2.24  subdivision 4, is amended to read: 
  2.25     Subd. 4.  [ELIGIBLE INSTITUTION.] "Eligible institution" 
  2.26  means a private post-secondary educational institution located 
  2.27  in this state or in a state with which the office has entered 
  2.28  into a higher education reciprocity agreement on state student 
  2.29  aid programs that either (1) is operated by this state, or (2) 
  2.30  is operated publicly or privately and, as determined by the 
  2.31  office, maintains academic standards substantially equivalent to 
  2.32  those of comparable institutions operated in this state that is 
  2.33  not a member of an organization that allocates postsecondary 
  2.34  financial aid to its member institutions through state-funded 
  2.35  grants. 
  2.36     Sec. 3.  Minnesota Statutes 2002, section 136A.121, 
  3.1   subdivision 6, is amended to read: 
  3.2      Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
  3.3   attendance consists of allowances specified in law for living 
  3.4   and miscellaneous expenses, and an allowance for tuition and 
  3.5   fees equal to the lesser of the actual tuition and fees charged 
  3.6   by the institution, or the private institution tuition and fee 
  3.7   maximums established in law. 
  3.8      (b) For the purpose of paragraph (a), the private 
  3.9   institution tuition and fee maximum for two- and four-year, 
  3.10  private, residential, liberal arts, degree-granting colleges and 
  3.11  universities must be the same. 
  3.12     (c) For a student registering for less than full time, the 
  3.13  office shall prorate the living and miscellaneous expense 
  3.14  allowance to the actual number of credits for which the student 
  3.15  is enrolled. 
  3.16     The recognized cost of attendance for a student who is 
  3.17  confined to a Minnesota correctional institution shall consist 
  3.18  of the tuition and fee component in paragraph (a), with no 
  3.19  allowance for living and miscellaneous expenses. 
  3.20     Sec. 4.  Minnesota Statutes 2002, section 136A.125, 
  3.21  subdivision 1, is amended to read: 
  3.22     Subdivision 1.  [ESTABLISHMENT.] A child care grant program 
  3.23  is established under the supervision of the higher education 
  3.24  services office.  The program makes money available to eligible 
  3.25  students to reduce the costs of child care while attending an 
  3.26  eligible private post-secondary institution.  The office shall 
  3.27  develop policies and adopt rules as necessary to implement and 
  3.28  administer the program.  
  3.29     Sec. 5.  Minnesota Statutes 2002, section 136A.125, 
  3.30  subdivision 3, is amended to read: 
  3.31     Subd. 3.  [ELIGIBLE INSTITUTION.] A Minnesota public 
  3.32  post-secondary institution, a Minnesota private, baccalaureate 
  3.33  degree granting college or university that is an eligible 
  3.34  institution under section 136A.101, subdivision 4, or a 
  3.35  Minnesota nonprofit two-year vocational technical school 
  3.36  granting associate degrees is eligible to receive child care 
  4.1   funds from the office and disburse them to eligible students. 
  4.2      Sec. 6.  Minnesota Statutes 2002, section 136A.232, is 
  4.3   amended to read: 
  4.4      136A.232 [ADMINISTRATION; AGREEMENTS WITH EDUCATIONAL 
  4.5   FACILITIES.] 
  4.6      The higher education services office shall develop and 
  4.7   administer a work-study program.  The office shall enter into 
  4.8   agreements with eligible private institutions of post-secondary 
  4.9   education. 
  4.10     Sec. 7.  Minnesota Statutes 2002, section 136A.233, is 
  4.11  amended to read: 
  4.12     136A.233 [WORK-STUDY GRANTS.] 
  4.13     Subdivision 1.  [ALLOCATION TO INSTITUTIONS.] The higher 
  4.14  education services office shall allocate work-study money to 
  4.15  eligible private post-secondary institutions according to the 
  4.16  resident full-time equivalent enrollment of all eligible private 
  4.17  post-secondary institutions that apply to participate in the 
  4.18  program, and the amount of the allocation that an institution 
  4.19  spent during the previous academic year.  Each institution 
  4.20  wishing to participate in the work-study program must submit, in 
  4.21  accordance with policies and procedures established by the 
  4.22  office, an estimate of the amount of funds needed by the 
  4.23  institution.  Any funds allocated to an institution that exceed 
  4.24  the actual need of the institution shall be reallocated by the 
  4.25  office to other institutions.  An institution may carry forward 
  4.26  or backward the same percentage of its initial allocation that 
  4.27  is authorized under federal work-study provisions.  
  4.28     Subd. 2.  [DEFINITIONS.] For purposes of sections 136A.231 
  4.29  to 136A.233, the words defined in this subdivision have the 
  4.30  meanings ascribed to them. 
  4.31     (a) "Eligible student" means a Minnesota resident enrolled 
  4.32  or intending to enroll at least half time in a degree, diploma, 
  4.33  or certificate program in a an eligible private Minnesota 
  4.34  post-secondary institution. 
  4.35     (b) "Minnesota resident" means a student who meets the 
  4.36  conditions in section 136A.101, subdivision 8. 
  5.1      (c) "Financial need" means the need for financial 
  5.2   assistance in order to attend a post-secondary institution as 
  5.3   determined by a an eligible private post-secondary institution 
  5.4   according to guidelines established by the higher education 
  5.5   services office. 
  5.6      (d) "Eligible employer" means any eligible post-secondary 
  5.7   institution, any nonprofit, nonsectarian agency or state 
  5.8   institution located in the state of Minnesota, a handicapped 
  5.9   person or a person over 65 who employs a student to provide 
  5.10  personal services in or about the person's residence, or a 
  5.11  private, for-profit employer employing a student as an intern in 
  5.12  a position directly related to the student's field of study that 
  5.13  will enhance the student's knowledge and skills in that field.  
  5.14     (e) "Eligible post-secondary institution" means any private 
  5.15  post-secondary institution eligible for participation in the 
  5.16  Minnesota state grant program as specified in section 136A.101, 
  5.17  subdivision 4. 
  5.18     (f) "Independent student" has the meaning given it in the 
  5.19  Higher Education Act of 1965, United States Code, title 20, 
  5.20  section 1070a-6, and applicable regulations. 
  5.21     (g) "Half-time" for undergraduates has the meaning given in 
  5.22  section 136A.101, subdivision 7b, and for graduate students is 
  5.23  defined by the institution. 
  5.24     Subd. 3.  [PAYMENTS.] Work-study payments shall be made to 
  5.25  eligible students by eligible private post-secondary 
  5.26  institutions as provided in this subdivision. 
  5.27     (a) Students shall be selected for participation in the 
  5.28  program by the eligible private post-secondary institution on 
  5.29  the basis of student financial need. 
  5.30     (b) In selecting students for participation, priority must 
  5.31  be given to students enrolled for at least 12 credits. 
  5.32     (c) Students will be paid for hours actually worked and the 
  5.33  maximum hourly rate of pay shall not exceed the maximum hourly 
  5.34  rate of pay permitted under the federal college work-study 
  5.35  program. 
  5.36     (d) Minimum pay rates will be determined by an applicable 
  6.1   federal or state law. 
  6.2      (e) The office shall annually establish a minimum 
  6.3   percentage rate of student compensation to be paid by an 
  6.4   eligible employer. 
  6.5      (f) Each private post-secondary institution receiving money 
  6.6   for state work-study grants shall make a reasonable effort to 
  6.7   place work-study students in employment with eligible employers 
  6.8   outside the institution.  However, a public employer other than 
  6.9   the institution may not terminate, lay off, or reduce the 
  6.10  working hours of a permanent employee for the purpose of hiring 
  6.11  a work-study student, or replace a permanent employee who is on 
  6.12  layoff from the same or substantially the same job by hiring a 
  6.13  work-study student. 
  6.14     (g) The percent of the institution's work-study allocation 
  6.15  provided to graduate students shall not exceed the percent of 
  6.16  graduate student enrollment at the participating institution. 
  6.17     (h) An institution may use up to 30 percent of its 
  6.18  allocation for student internships with private, for-profit 
  6.19  employers. 
  6.20     Subd. 4.  [COOPERATION WITH LOCAL SCHOOLS.] Each campus 
  6.21  using the state work study program is encouraged to cooperate 
  6.22  with its local public elementary and secondary schools to place 
  6.23  college work study students in activities in the schools, such 
  6.24  as tutoring.  Students must be placed in meaningful activities 
  6.25  that directly assist students in kindergarten through grade 12 
  6.26  in meeting graduation standards including the profiles of 
  6.27  learning.  College students shall work under direct supervision; 
  6.28  therefore, school hiring authorities are not required to request 
  6.29  criminal background checks on these students under section 
  6.30  123B.03. 
  6.31     Sec. 8.  [136F.29] [FINANCIAL AID GRANTS.] 
  6.32     Subdivision 1.  [FINANCIAL ASSISTANCE; STIPENDS.] The board 
  6.33  of trustees, in consultation with the statewide student 
  6.34  associations, shall develop guidelines to identify men and women 
  6.35  of the state who are economically disadvantaged, and to provide 
  6.36  financial assistance to encourage their educational 
  7.1   development.  The board must allocate money appropriated for 
  7.2   this purpose to its institutions to provide stipends to assist 
  7.3   undergraduate students with the cost of attendance based on a 
  7.4   student's demonstrated financial need.  An eligible student must 
  7.5   be a resident of Minnesota as defined in section 136A.101, 
  7.6   subdivision 8.  Money appropriated for financial assistance 
  7.7   shall be used only for this purpose.  
  7.8      Subd. 2.  [WORK-STUDY ASSISTANCE.] The board shall develop 
  7.9   program guidelines and allocate money appropriated for this 
  7.10  purpose to its institutions for assistance to students based on 
  7.11  demonstrated financial need through work-study payments.  
  7.12  Eligible students must be Minnesota residents as defined in 
  7.13  section 136A.101, subdivision 8, attending an institution under 
  7.14  the control of the board. 
  7.15     Subd. 3.  [CHILD CARE ASSISTANCE.] The board shall develop 
  7.16  program guidelines and allocate money appropriated for this 
  7.17  purpose to its institutions for assistance to reduce the cost of 
  7.18  child care for students with demonstrated financial need.  
  7.19  Eligible students must be Minnesota residents as defined in 
  7.20  section 136A.101, subdivision 8, attending an institution under 
  7.21  the control of the board. 
  7.22     Subd. 4.  [REPORTS.] The board must report in a timely 
  7.23  manner at the end of each academic term to the higher education 
  7.24  services office on students receiving assistance under this 
  7.25  section.  The report must include, but is not limited to, the 
  7.26  number and types of grants and payments made to students at each 
  7.27  institution or campus, the amount of the award, the educational 
  7.28  status of the grant recipient, and demographic information on 
  7.29  each recipient. 
  7.30     Sec. 9.  [137.11] [FINANCIAL AID GRANTS.] 
  7.31     Subdivision 1.  [FINANCIAL ASSISTANCE; STIPENDS.] The board 
  7.32  of regents, in consultation with its student associations, shall 
  7.33  develop guidelines to identify men and women of the state who 
  7.34  are economically disadvantaged, and to provide financial 
  7.35  assistance to encourage their educational development.  The 
  7.36  board of regents must allocate money appropriated for this 
  8.1   purpose to its campuses to provide stipends to assist students 
  8.2   with the cost of attendance, based on a student's demonstrated 
  8.3   financial need.  An eligible student must be a resident of 
  8.4   Minnesota as defined in section 136A.101, subdivision 8.  Money 
  8.5   appropriated for financial assistance shall be used only for 
  8.6   this purpose.  
  8.7      Subd. 2.  [WORK-STUDY ASSISTANCE.] The board shall develop 
  8.8   program guidelines and allocate money appropriated for this 
  8.9   purpose to its institutions for assistance to students based on 
  8.10  demonstrated financial need through work-study payments.  
  8.11  Eligible students must be Minnesota residents as defined in 
  8.12  section 136A.101, subdivision 8, attending a campus under the 
  8.13  control of the board. 
  8.14     Subd. 3.  [CHILD CARE ASSISTANCE.] The board shall develop 
  8.15  program guidelines and allocate money appropriated for this 
  8.16  purpose to its institutions for assistance to reduce the cost of 
  8.17  child care for students with demonstrated financial need.  
  8.18  Eligible students must be Minnesota residents as defined in 
  8.19  section 136A.101, subdivision 8, attending a campus under the 
  8.20  control of the board. 
  8.21     Subd. 4.  [REPORTS.] The board must report in a timely 
  8.22  manner at the end of each academic term to the higher education 
  8.23  services office on students receiving assistance under this 
  8.24  section.  The report must include, but is not limited to, the 
  8.25  number and types of grants and payments made to students at each 
  8.26  institution or campus, the amount of the award, the educational 
  8.27  status of the grant recipient, and demographic information on 
  8.28  each recipient. 
  8.29     Sec. 10.  [APPROPRIATIONS.] 
  8.30     Subdivision 1.  [FINANCIAL ASSISTANCE FOR THE COST OF 
  8.31  ATTENDANCE.] (a) $150,575,000 for fiscal year 2004 and 
  8.32  $150,575,000 for fiscal year 2005 is appropriated from the 
  8.33  general fund for aid for Minnesota undergraduate students to 
  8.34  assist with the cost of attendance at a Minnesota postsecondary 
  8.35  institution as provided in this subdivision. 
  8.36     (b) $24,251,000 for fiscal year 2004 and $24,251,000 for 
  9.1   fiscal year 2005 is appropriated to the board of regents of the 
  9.2   University of Minnesota for financial aid under section 9, 
  9.3   subdivision 1. 
  9.4      (c) $48,094,000 for fiscal year 2004 and $48,094,000 for 
  9.5   fiscal year 2005 is appropriated to the board of trustees of the 
  9.6   Minnesota state colleges and universities for financial aid 
  9.7   under section 8, subdivision 1. 
  9.8      (d) $78,230,000 for fiscal year 2004 and $78,230,000 for 
  9.9   fiscal year 2005 is appropriated to the higher education 
  9.10  services office for financial aid under section 1 and Minnesota 
  9.11  Statutes, sections 136A.101 to 136A.121.  Of this amount, 
  9.12  $52,318,000 in fiscal year 2004 and $52,318,000 in fiscal year 
  9.13  2005 is for a grant to the Minnesota private colleges council 
  9.14  for the purposes of section 1, subdivision 2. 
  9.15     Subd. 2.  [WORK STUDY.] (a) $12,500,000 for fiscal year 
  9.16  2004 and $12,500,000 for fiscal year 2005 is appropriated from 
  9.17  the general fund for assistance for work-study aid for Minnesota 
  9.18  residents attending postsecondary institutions in Minnesota, as 
  9.19  provided in this subdivision. 
  9.20     (b) $1,441,000 for fiscal year 2004 and $1,441,000 for 
  9.21  fiscal year 2005 is appropriated to the board of regents of the 
  9.22  University of Minnesota for work-study aid under section 9, 
  9.23  subdivision 2. 
  9.24     (c) $6,126,000 for fiscal year 2004 and $6,126,000 for 
  9.25  fiscal year 2005 is appropriated to the board of trustees of the 
  9.26  Minnesota state colleges and universities for work-study aid 
  9.27  under section 8, subdivision 2. 
  9.28     (d) $4,933,000 for fiscal year 2004 and $4,933,000 for 
  9.29  fiscal year 2005 is appropriated to the higher education 
  9.30  services office for work-study aid under Minnesota Statutes, 
  9.31  section 136A.232.  Of this amount, $3,883,000 for fiscal year 
  9.32  2004 and $3,833,000 for fiscal year 2005 is for a grant to the 
  9.33  Minnesota private colleges council for the purposes of section 
  9.34  1, subdivision 3. 
  9.35     Subd. 3.  [CHILD CARE ASSISTANCE.] (a) $4,742,000 for 
  9.36  fiscal year 2004 and $4,742,000 for fiscal year 2005 is 
 10.1   appropriated from the general fund for child care assistance for 
 10.2   Minnesota residents attending postsecondary institutions in 
 10.3   Minnesota, as provided in this subdivision. 
 10.4      (b) $245,000 for fiscal year 2004 and $245,000 for fiscal 
 10.5   year 2005 is appropriated to the board of regents of the 
 10.6   University of Minnesota for child care assistance under section 
 10.7   9, subdivision 3. 
 10.8      (c) $4,030,000 for fiscal year 2004 and $4,030,000 for 
 10.9   fiscal year 2005 is appropriated to the board of trustees of the 
 10.10  Minnesota state colleges and universities for child care 
 10.11  assistance under section 8, subdivision 3. 
 10.12     (d) $467,000 for fiscal year 2004 and $467,000 for fiscal 
 10.13  year 2005 is appropriated to the higher education services 
 10.14  office for child care assistance under Minnesota Statutes, 
 10.15  section 136A.125.  Of this amount, $41,000 for fiscal year 2004 
 10.16  and $41,000 for fiscal year 2005 is for a grant to the Minnesota 
 10.17  private colleges council for the purposes of section 1, 
 10.18  subdivision 4. 
 10.19     Sec. 11.  [REPEALER.] 
 10.20     Minnesota Statutes 2002, sections 136A.1211; and 136A.122, 
 10.21  are repealed.