1     
HIGHER EDUCATION FINANCIAL AID AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Tyler Clancy

5     
Senate Sponsor: Keith Grover

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to higher education scholarships.
10     Highlighted Provisions:
11          This bill:
12          ▸     amends the length of eligibility for promise grants;
13          ▸     allows the Utah Board of Higher Education (board) to supplement funding with
14     private contributions;
15          ▸     allows the board to name a promise partner grant after a business that has funded
16     the grant;
17          ▸     extends promise partner grants to dependents of promise partner employees;
18          ▸     amends board requirements to make rules for a business to become a promise
19     partner;
20          ▸     removes the requirement for an institution to evaluate a partner award recipient;
21          ▸     allows Veterans Tuition Gap Program funds to be applied to education-related
22     supplies and housing allowances; and
23          ▸     makes technical and conforming changes.
24     Money Appropriated in this Bill:
25          None
26     Other Special Clauses:
27          None
28     Utah Code Sections Affected:
29     AMENDS:
30          53B-13a-104, as repealed and reenacted by Laws of Utah 2022, Chapter 370
31          53B-13a-106, as renumbered and amended by Laws of Utah 2022, Chapter 370
32          53B-13b-104, as last amended by Laws of Utah 2020, Chapters 37, 196
33     

34     Be it enacted by the Legislature of the state of Utah:
35          Section 1. Section 53B-13a-104 is amended to read:
36          53B-13a-104. Promise grants.
37          (1) (a) As part of the Utah Promise Program and in accordance with this section, the
38     board shall allocate available money to each institution to use to award promise grants to
39     eligible students to pay the eligible student's cost of attendance.
40          (b) An eligible student may apply for a promise grant in accordance with procedures
41     established by board rule.
42          (c) The amount of a promise grant to an eligible student may not exceed the amount
43     equal to the difference between:
44          (i) the eligible student's cost of attendance; and
45          (ii) the total value of other financial aid that the eligible student receives toward the
46     eligible student's cost of attendance.
47          (d) An eligible student may transfer a promise grant to one or more other institutions.
48          (2) In administering this section, the board shall use a packaging approach that ensures
49     that institutions combine loans, grants, employment, and family and individual contributions
50     toward financing the cost of attendance.
51          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
52     that board shall make rules establishing:
53          (a) an application process;
54          (b) eligibility criteria, including:
55          (i) criteria related to academic achievement and enrollment status; and
56          (ii) a requirement that an applicant demonstrate completion of the Free Application for
57     Federal Student Aid, unless the student or the student's parent opts out in accordance with
58     board rule;
59          (c) how a student demonstrates financial need;
60          [(d) a process to defer a promise grant;]
61          [(e)] (d) a formula to determine the allocation of money to institutions in accordance
62     with Subsection (1), taking into account:
63          (i) the cost of attendance for programs offered by institutions; and
64          (ii) the number of eligible students who attend each institution; and
65          [(f)] (e) a methodology for prioritizing award of promise grants based primarily on
66     financial need.
67          [(4) After an institution awards a promise grant to an eligible student, the institution
68     shall continue to award a promise grant to the eligible student:]
69          [(a) until the earlier of:]
70          [(i) two years after the eligible student first receives a promise grant; or]
71          [(ii) after the eligible student uses a promise grant to attend an institution for four
72     semesters; and]
73          [(b) provided the eligible student continues to meet the eligibility criteria.]
74          (4) A student is eligible for a promise grant until the student:
75          (a) earns a first bachelor's degree; or
76          (b) completes 120 credit hours.
77          (5) The board or an institution may not represent to a recipient or a potential recipient
78     of a promise grant that promise grants will remain available in perpetuity.
79          (6) (a) The board may require an institution to enter into a participation agreement
80     before the institution may award promise grants.
81          (b) In a participation agreement, the board shall include a requirement that the
82     institution:
83          (i) provide to the board information necessary to administer the promise grants;
84          (ii) comply with this section and board rules related to the promise grants;
85          (iii) submit reports related to the promise grants as required by board rule; and
86          (iv) cooperate in any review or financial audit related to the promise grants that the
87     board determines necessary.
88          (7) (a) The board may use up to 2% of the money appropriated for promise grants for
89     costs related to administering the promise grants.
90          (b) An institution may use up to 3% of the money the institution receives for promise
91     grants for costs related to administering the promise grants.
92          (8) The board may supplement state appropriations for the program with private
93     contributions.
94          Section 2. Section 53B-13a-106 is amended to read:
95          53B-13a-106. Utah promise partners.
96          (1) As part of the Utah Promise Program [and in consultation with the Talent Ready
97     Utah Program created in Section 63N-1b-302], the board may select employers to be promise
98     partners.
99          (2) The board may select an employer as a promise partner if the employer:
100          (a) applies to the board to be a promise partner; and
101          (b) meets other requirements established by the board in the rules described in
102     Subsection [(5)] (6).
103          (3) An individual employed by, or who is a dependent of an employee of, a promise
104     partner is eligible to receive a partner award if the individual:
105          (a) applies for a partner award;
106          (b) is admitted to and enrolled in an institution; and
107          [(c) meets requirements established by the promise partner related to a partner award;
108     and]
109          [(d)] (c) maintains the eligibility requirements described in this Subsection (3) for the
110     full length of time the individual receives the partner award.
111          (4) (a) Subject to legislative appropriations and Subsection (4)(b), the board shall
112     award a partner award to an individual who meets the requirements described in Subsection
113     (3).
114          (b) The board may:
115          (i) award a partner award for up to the portion of tuition and fees for a program at an
116     institution that is not covered by [an employer reimbursement] a promise partnership described
117     in Subsection [(5)(b)] (6)(a); and
118          (ii) prioritize awarding partner awards if an appropriation for partner awards is not
119     sufficient to provide a partner award to each individual who is eligible under Subsection (3).
120          (c) The board may continue to award a partner award to a recipient who meets the
121     requirements described in Subsection (3) until the [earliest of the following] earlier of:
122          (i) [two years after] four years after the day on which the individual initially receives a
123     partner award;
124          (ii) when the recipient uses a partner award to attend an institution for [four] eight
125     semesters; or
126          (iii) when the recipient completes an approved program.
127          [(iii) the recipient completes the requirements for an associate degree; or]
128          [(iv) if the recipient attends an institution that does not offer associate degrees, the
129     recipient has 60 earned credit hours.]
130          (5) The board may name a specific promise grant after the donating business.
131          [(5)] (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
132     Act, the board shall make rules that establish:
133          (a) [requirements for an employer] a process for a business to seek and receive
134     approval from the board [for the employer's employees to receive partner awards] to become a
135     promise partner, including providing funds for tuition and fees to be distributed under the Utah
136     Promise Program;
137          [(b) requirements related to an employer providing reimbursement to an employee who
138     receives a partner award for a portion of the employee's tuition and fees;]
139          [(c)] (b) a process for an individual to apply for a partner award; and
140          [(d)] (c) criteria for the board to prioritize awarding partner awards to individuals[;
141     and].
142          [(e) a requirement that an institution shall, for a recipient of a partner award:]
143          [(i) evaluate the recipient's knowledge, skills, and competencies acquired through
144     formal or informal education outside the traditional postsecondary academic environment; and]
145          [(ii) award credit, as applicable, for the recipient's prior learning described in
146     Subsection (5)(e)(i).]
147          [(6)] (7) The board may allow an individual to apply directly to the board for a partner
148     award.
149          Section 3. Section 53B-13b-104 is amended to read:
150          53B-13b-104. Guidelines for administration of the program.
151          (1) The board shall use the guidelines in this section to develop policies to implement
152     and administer the program.
153          (2) (a) The board shall allocate money appropriated for the program to institutions to
154     provide grants for qualifying military veterans.
155          (b) The board may not use program money for administrative costs or overhead.
156          (c) An institution may not use more than 3% of its program money for administrative
157     costs or overhead.
158          (d) Money returned to the board under Subsection (3)(b) shall be used for future
159     allocations to institutions.
160          (3) (a) An institution shall award a program grant to a qualifying military veteran on an
161     annual basis but distribute the money one quarter or semester at a time, with continuing awards
162     contingent upon the qualifying military veteran maintaining satisfactory academic progress as
163     defined by the institution in published policies or rules.
164          (b) At the conclusion of the academic year, money distributed to an institution that was
165     not awarded to a qualifying military veteran or used for allowed administrative purposes shall
166     be returned to the board.
167          (c) (i) To qualify for a program grant under this section, a military veteran shall
168     demonstrate, in accordance with rules described in Subsection (3)(c)(ii), the completion of a
169     Free Application for Federal Student Aid.
170          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
171     board shall make rules regarding the completion of the Free Application for Federal Student
172     Aid described in Subsection (3)(c)(i), including:
173          (A) provisions for students or parents to opt out of the requirement due to financial
174     ineligibility for any potential grant or other financial aid, personal privacy concerns, or other
175     reasons the board specifies; and
176          (B) direction for applicants to financial aid advisors.
177          (4) A qualifying military veteran may receive a program grant until [the earlier of the
178     following occurs]:
179          (a) the qualifying military veteran completes the requirements for a bachelor's degree;
180     or
181          (b) [12 months from the time that] the qualifying military veteran receives [an initial
182     program grant] the maximum award that the board sets.
183          (5) A qualifying military veteran who receives a program grant may [only] use the
184     grant toward tuition, fees [and], books, education-related supplies, and a housing allowance at
185     an institution of higher education in the state.
186          (6) The board may accept grants, gifts, bequests, and devises of real and personal
187     property from any source for the purpose of awarding grants to qualifying military veterans in
188     addition to those funded by the state.