1     
HIGHER EDUCATION FINANCIAL AID AMENDMENTS

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Tyler Clancy

5     
Senate Sponsor: Nate Blouin

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to higher education scholarships.
10     Highlighted Provisions:
11          This bill:
12          ▸     allows a president of a state institution of higher education to waive tuition for
13     students who are members of certain tribes;
14          ▸     defines terms;
15          ▸     extends the length of eligibility for promise grants;
16          ▸     allows the Utah Board of Higher Education to name a promise partner grant after a
17     business that has funded the grant;
18          ▸     extends promise partner grants to dependents of promise partner employees;
19          ▸     allows Veterans Tuition Gap Program funds to be applied to education-related
20     supplies and housing allowances; and
21          ▸     makes technical and conforming changes.
22     Money Appropriated in this Bill:
23          None
24     Other Special Clauses:
25          This bill provides a special effective date.
26     Utah Code Sections Affected:
27     AMENDS:
28          53B-8-101, as last amended by Laws of Utah 2020, Chapter 365
29          53B-13a-104, as repealed and reenacted by Laws of Utah 2022, Chapter 370
30          53B-13a-106, as renumbered and amended by Laws of Utah 2022, Chapter 370
31          53B-13b-104, as last amended by Laws of Utah 2020, Chapters 37, 196
32     

33     Be it enacted by the Legislature of the state of Utah:
34          Section 1. Section 53B-8-101 is amended to read:
35          53B-8-101. Waiver of tuition.
36          (1) (a) The president of an institution of higher education described in Section
37     53B-2-101 may waive all or part of the tuition on behalf of meritorious or impecunious resident
38     students to an amount not exceeding 10% of the total amount of tuition which, in the absence
39     of the waivers, would have been collected from all Utah resident students at the institution of
40     higher education.
41          (b) (i) Two and a half percent of the waivers designated in Subsection (1)(a) shall be
42     set aside for members of the Utah National Guard.
43          (ii) A waiver described in Subsection (1)(b)(i) shall be preserved by the student at least
44     60 days before the beginning of an academic term.
45          (2) (a) A president of an institution of higher education listed in Subsections
46     53B-2-101(1)(a) through (h) may waive all or part of the nonresident portion of tuition for a
47     meritorious nonresident undergraduate student.
48          (b) In determining which students are meritorious for purposes of granting a tuition
49     waiver under Subsection (2)(a), a president shall consider students who are performing above
50     the average at the institution of higher education, including having an admissions index higher
51     than the average for the institution, if an admissions index is used.
52          (c) A president of an institution of higher education may continue to waive the
53     nonresident portion of tuition for a student described in Subsection (2)(a) for as long as the
54     student is enrolled at the institution of higher education.
55          (d) In addition to waiving the nonresident portion of tuition for a meritorious
56     nonresident student under Subsection (2)(a), a president of an institution of higher education
57     may waive the resident portion of tuition after the meritorious nonresident student completes a
58     year of full-time study at the institution of higher education.
59          (3) (a) A president of an institution of higher education described in Section 53B-2-101
60     may waive all or part of the resident tuition for a student who is an individual described in
61     Subsection 53B-8-102(10).
62          (b) The waiver limitation described in Subsection (1)(a) does not apply to a tuition
63     waiver described in Subsection (3)(a).
64          [(3)] (4) To encourage students to enroll for instruction in occupations critical to the
65     state for which trained personnel are in short supply, a president of an institution of higher
66     education shall grant additional full or partial tuition waivers upon recommendation of the
67     board.
68          [(4)] (5) A president of an institution of higher education may waive all or part of the
69     difference between resident and nonresident tuition for:
70          (a) meritorious graduate students; or
71          (b) nonresident summer school students.
72          [(5)] (6) The board may establish policies that:
73          (a) require an institution of higher education described in Subsections 53B-2-101(1)(a)
74     through (h) to regularly assess and report whether the institution of higher education's use of
75     tuition waivers supports the goals established by the board in accordance with Section
76     53B-1-402 for the institution of higher education;
77          (b) subject to the provisions of this section, establish the amount or percentage of
78     tuition that an institution of higher education may waive;
79          (c) define the terms "meritorious" and "impecunious," as the terms apply to tuition
80     waivers for resident students described in Subsection (1)(a); and
81          (d) establish limitations on an institution of higher education's allocation of waivers
82     described in Subsection (1)(a) for resident students who are meritorious or resident students
83     who are impecunious.
84          [(6)] (7) (a) The board shall submit an annual budget appropriation request for each
85     institution of higher education described in Section 53B-2-101.
86          (b) A request described in Subsection [(6)(a)] (7)(a) shall include requests for funds
87     sufficient [in amount] to equal the estimated loss of dedicated credits that would be realized if
88     all of the tuition waivers authorized by Subsection (2) were granted.
89          Section 2. Section 53B-13a-104 is amended to read:
90          53B-13a-104. Promise grants.
91          (1) (a) As part of the Utah Promise Program and in accordance with this section, the
92     board shall allocate available money to each institution to use to award promise grants to
93     eligible students to pay the eligible student's cost of attendance.
94          (b) An eligible student may apply for a promise grant in accordance with procedures
95     established by board rule.
96          (c) The amount of a promise grant to an eligible student may not exceed the amount
97     equal to the difference between:
98          (i) the eligible student's cost of attendance; and
99          (ii) the total value of other financial aid that the eligible student receives toward the
100     eligible student's cost of attendance.
101          (d) An eligible student may transfer a promise grant to one or more other institutions.
102          (2) In administering this section, the board shall use a packaging approach that ensures
103     that institutions combine loans, grants, employment, and family and individual contributions
104     toward financing the cost of attendance.
105          (3) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
106     that board shall make rules establishing:
107          (a) an application process;
108          (b) eligibility criteria, including:
109          (i) criteria related to academic achievement and enrollment status; and
110          (ii) a requirement that an applicant demonstrate completion of the Free Application for
111     Federal Student Aid, unless the student or the student's parent opts out in accordance with
112     board rule;
113          (c) how a student demonstrates financial need;
114          [(d) a process to defer a promise grant;]
115          [(e)] (d) a formula to determine the allocation of money to institutions in accordance
116     with Subsection (1), taking into account:
117          (i) the cost of attendance for programs offered by institutions; and
118          (ii) the number of eligible students who attend each institution; and
119          [(f)] (e) a methodology for prioritizing award of promise grants based primarily on
120     financial need.
121          [(4) After an institution awards a promise grant to an eligible student, the institution
122     shall continue to award a promise grant to the eligible student:]
123          [(a) until the earlier of:]
124          [(i) two years after the eligible student first receives a promise grant; or]
125          [(ii) after the eligible student uses a promise grant to attend an institution for four
126     semesters; and]
127          [(b) provided the eligible student continues to meet the eligibility criteria.]
128          (4) A student is eligible for a promise grant until the student:
129          (a) earns a first bachelor's degree or technical college certificate; or
130          (b) completes 120 credit hours.
131          (5) The board or an institution may not represent to a recipient or a potential recipient
132     of a promise grant that promise grants will remain available in perpetuity.
133          (6) (a) The board may require an institution to enter into a participation agreement
134     before the institution may award promise grants.
135          (b) In a participation agreement, the board shall include a requirement that the
136     institution:
137          (i) provide to the board information necessary to administer the promise grants;
138          (ii) comply with this section and board rules related to the promise grants;
139          (iii) submit reports related to the promise grants as required by board rule; and
140          (iv) cooperate in any review or financial audit related to the promise grants that the
141     board determines necessary.
142          (7) (a) The board may use up to 2% of the money appropriated for promise grants for
143     costs related to administering the promise grants.
144          (b) An institution may use up to 3% of the money the institution receives for promise
145     grants for costs related to administering the promise grants.
146          (8) The board may supplement state appropriations for the program with private
147     contributions.
148          Section 3. Section 53B-13a-106 is amended to read:
149          53B-13a-106. Utah promise partners.
150          (1) As part of the Utah Promise Program [and in consultation with the Talent Ready
151     Utah Program created in Section 63N-1b-302], the board may select employers to be promise
152     partners.
153          (2) The board may select an employer as a promise partner if the employer:
154          (a) applies to the board to be a promise partner; and
155          (b) meets other requirements established by the board in the rules described in
156     Subsection [(5)] (6).
157          (3) An individual employed by, or who is a dependent of an employee of, a promise
158     partner is eligible to receive a partner award if the individual:
159          (a) applies for a partner award;
160          (b) is admitted to and enrolled in an institution; and
161          [(c) meets requirements established by the promise partner related to a partner award;
162     and]
163          [(d)] (c) maintains the eligibility requirements described in this Subsection (3) for the
164     full length of time the individual receives the partner award.
165          (4) (a) Subject to legislative appropriations and Subsection (4)(b), the board shall
166     award a partner award to an individual who meets the requirements described in Subsection
167     (3).
168          (b) The board may:
169          (i) award a partner award for up to the portion of tuition and fees for a program at an
170     institution that is not covered by [an employer reimbursement] a promise partnership described
171     in Subsection [(5)(b)] (6)(a); and
172          (ii) prioritize awarding partner awards if an appropriation for partner awards is not
173     sufficient to provide a partner award to each individual who is eligible under Subsection (3).
174          (c) The board may continue to award a partner award to a recipient who meets the
175     requirements described in Subsection (3) until the [earliest of the following] earlier of:
176          (i) [two years after] four years after the day on which the individual initially receives a
177     partner award;
178          (ii) when the recipient uses a partner award to attend an institution for [four] eight
179     semesters; or
180          (iii) when the recipient completes an approved program.
181          [(iii) the recipient completes the requirements for an associate degree; or]
182          [(iv) if the recipient attends an institution that does not offer associate degrees, the
183     recipient has 60 earned credit hours.]
184          (5) The board may name a specific promise grant after the donating business.
185          [(5)] (6) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking
186     Act, the board shall make rules that establish:
187          (a) [requirements for an employer] a process for a business to seek and receive
188     approval from the board [for the employer's employees to receive partner awards] to become a
189     promise partner, including providing funds for tuition and fees to be distributed under the Utah
190     Promise Program;
191          [(b) requirements related to an employer providing reimbursement to an employee who
192     receives a partner award for a portion of the employee's tuition and fees;]
193          [(c)] (b) a process for an individual to apply for a partner award; and
194          [(d)] (c) criteria for the board to prioritize awarding partner awards to individuals[;
195     and].
196          [(e) a requirement that an institution shall, for a recipient of a partner award:]
197          [(i) evaluate the recipient's knowledge, skills, and competencies acquired through
198     formal or informal education outside the traditional postsecondary academic environment; and]
199          [(ii) award credit, as applicable, for the recipient's prior learning described in
200     Subsection (5)(e)(i).]
201          [(6)] (7) The board may allow an individual to apply directly to the board for a partner
202     award.
203          Section 4. Section 53B-13b-104 is amended to read:
204          53B-13b-104. Guidelines for administration of the program.
205          (1) The board shall use the guidelines in this section to develop policies to implement
206     and administer the program.
207          (2) (a) The board shall allocate money appropriated for the program to institutions to
208     provide grants for qualifying military veterans.
209          (b) The board may not use program money for administrative costs or overhead.
210          (c) An institution may not use more than 3% of its program money for administrative
211     costs or overhead.
212          (d) Money returned to the board under Subsection (3)(b) shall be used for future
213     allocations to institutions.
214          (3) (a) An institution shall award a program grant to a qualifying military veteran on an
215     annual basis but distribute the money one quarter or semester at a time, with continuing awards
216     contingent upon the qualifying military veteran maintaining satisfactory academic progress as
217     defined by the institution in published policies or rules.
218          (b) At the conclusion of the academic year, money distributed to an institution that was
219     not awarded to a qualifying military veteran or used for allowed administrative purposes shall
220     be returned to the board.
221          (c) (i) To qualify for a program grant under this section, a military veteran shall
222     demonstrate, in accordance with rules described in Subsection (3)(c)(ii), the completion of a
223     Free Application for Federal Student Aid.
224          (ii) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
225     board shall make rules regarding the completion of the Free Application for Federal Student
226     Aid described in Subsection (3)(c)(i), including:
227          (A) provisions for students or parents to opt out of the requirement due to financial
228     ineligibility for any potential grant or other financial aid, personal privacy concerns, or other
229     reasons the board specifies; and
230          (B) direction for applicants to financial aid advisors.
231          (4) A qualifying military veteran may receive a program grant [until the earlier of the
232     following occurs] when:
233          (a) the qualifying military veteran completes the requirements for a bachelor's degree;
234     or
235          (b) [12 months from the time that] the qualifying military veteran receives [an initial
236     program grant] the maximum award that the board sets.
237          (5) A qualifying military veteran who receives a program grant may [only] use the
238     grant toward tuition, fees [and], books, education-related supplies, and a housing allowance at
239     an institution of higher education in the state.
240          (6) The board may accept grants, gifts, bequests, and devises of real and personal
241     property from any source for the purpose of awarding grants to qualifying military veterans in
242     addition to those funded by the state.
243          Section 5. Effective date.
244          (1) Except as provided in Subsection (2), if approved by two-thirds of all the members
245     elected to each house, Section 53B-8-101 takes effect upon approval by the governor, or the
246     day following the constitutional time limit of Utah Constitution, Article VII, Section 8, without
247     the governor's signature, or in the case of a veto, the day of the veto override.
248          (2) The actions affecting the following sections take effect on May 3, 2023:
249          (a) Section 53B-13a-104;
250          (b) Section 53B-13a-106; and
251          (c) Section 53B-13b-104.