2023 - 2024 LEGISLATURE
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2023 ASSEMBLY BILL 381
August 11, 2023 - Introduced by Representatives MURPHY, ANDRACA, ARMSTRONG,
BALDEH, EDMING, GOEBEN, GUNDRUM, JACOBSON, JOERS, MURSAU, O'CONNOR
and STUBBS, cosponsored by Senators BALLWEG, CABRAL-GUEVARA, FEYEN,
SMITH, SPREITZER, TOMCZYK and ROYS. Referred to Committee on State Affairs.
1 AN ACT to repeal 36.11 (27), 39.28 (6), 39.30 (2) (intro.), (a) and (b), 39.30 (2) (f)
2 and 39.30 (3m) and (4); to amend 20.285 (1) (e), 36.66 (1) (a), 36.66 (2), 36.66
3 (3) (a) and (c), 36.66 (4), 36.66 (5), 36.66 (6) (a) (intro.), 36.66 (6) (b), 38.42 (1)
4 (a), 38.42 (3) (c), 38.42 (6) (b), 39.285 (title), 39.30 (2) (title), 39.30 (2) (d), 39.30
5 (2) (e), 39.39 (2) (b), 39.435 (1), 39.435 (2), 39.435 (3), 39.435 (4) (a) and 39.435
6 (8); to repeal and recreate 39.30 (3); and to create 36.66 (1) (c), 39.285 (4),
7 39.30 (1m), 39.30 (2) (g) and 39.435 (2m) of the statutes; relating to: Wisconsin
8 grants and other financial aid for higher education.
Analysis by the Legislative Reference Bureau
This bill makes changes to the Wisconsin grant program administered by the
Higher Educational Aids Board and other changes related to financial aid for higher
education.
Wisconsin grants
Under current law, HEAB administers the Wisconsin grant program, which
provides grants to resident undergraduate students enrolled at least half-time in
University of Wisconsin System schools, technical colleges, private nonprofit
colleges, and tribal colleges in this state. HEAB limits its award of these grants to
10 semesters or the equivalent. For students enrolled in UW System schools,
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ASSEMBLY BILL 381
technical colleges, and tribal colleges, HEAB must award Wisconsin grants based on
a formula that accounts for expected parental and student contributions and is
consistent with generally accepted definitions and nationally approved needs
analysis methodology. For students enrolled in private nonprofit colleges, the
amount of the grant that HEAB awards is based on a mathematical calculation
specified by statute. All Wisconsin grants are subject to a minimum and maximum
grant amount.
This bill makes the following changes to the Wisconsin grant program:
1. The bill removes the requirement that a student must be enrolled at least
half-time to be eligible for a Wisconsin grant. The bill also specifies that, to be
eligible for a Wisconsin grant, a student must be enrolled in a degree, certificate, or
other program leading to a recognized educational credential and be maintaining
satisfactory academic progress.
2. The bill extends, from 10 semesters to 12 semesters or the equivalent, the
limit on the total number of semesters a student may receive a Wisconsin grant. The
bill also specifies that, if a student receiving a grant is enrolled less than full time
in a semester or session, only the fraction of the student's enrollment, in proportion
to full-time enrollment, is applied toward this 12-semester limit.
3. The bill eliminates the statutory mathematical calculation used to
determine the amount of a Wisconsin grant awarded to a student enrolled in a
private nonprofit college. Instead, the bill aligns the statutory language for HEAB
to determine the amount of a Wisconsin grant for each of the four types of higher
education institution. Under the bill, HEAB must award Wisconsin grants based on
the current federal need analysis formula. This standard accommodates changes to
the federal need analysis methodology included in the federal FAFSA Simplification
Act of 2019 that are scheduled to take effect in the 2024-25 academic year.
4. The bill modifies provisions related to minimum and maximum grant
amounts, which are currently established by statute. Under current law, the
minimum annual grant amount is $250. For students enrolled in UW System
schools, technical colleges, and tribal colleges, the maximum annual grant amount
is $3,150. For students enrolled in private nonprofit colleges, HEAB establishes the
maximum annual grant amount, subject to the limitation that HEAB may not make
initial grant awards exceeding 122 percent of the amount appropriated for this
purpose. This bill repeals all of these provisions. Instead, HEAB must annually
establish a minimum and maximum amount for grants and must integrate the
minimum and maximum grant amounts into its formula for awarding grants.
5. The bill specifies that a Wisconsin grant is available to a student enrolled
in a private nonprofit college only if the private nonprofit college is headquartered
in Wisconsin.
6. The bill repeals a provision related to private nonprofit colleges that requires
HEAB to prescribe and make available at locations in the state convenient to the
public Wisconsin grant application forms and, upon request, to advise and assist
applicants in making out these forms.
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ASSEMBLY BILL 381
7. The bill also requires HEAB to ensure that eligible UW System students
enrolled in a certificate program currently known as the farm-and-industry short
course are included in the award of Wisconsin grants.
Talent incentive grants
Under current law, HEAB awards talent incentive grants to uniquely needy
students enrolled at least half-time in the UW System, a technical college, a private
nonprofit college, or a tribal college. Awarded to first-year students with the
greatest financial need, the grant may be continued in the students' sophomore,
junior, and senior years. However, HEAB may not award a grant to a student for
more than 10 semesters or their equivalent, and HEAB may not award a grant to a
student more than six years after its initial grant award to the student.
The bill allows HEAB to award a talent incentive grant to a student for up to
12 semesters or their equivalent.
Grants to meet emergency financial need
Under current law, the UW System and technical colleges may award a grant
to an eligible student at a two-year UW System campus or a technical college to pay
the student's expense resulting from a financial emergency. An “eligible student” is
defined as a student whose “expected family contribution” is less than $5,000. An
eligible student may receive up to two grants in a total amount of not more than $500
per academic year. Each two-year UW System campus and technical college must
collect certain information related to the grant program and submit a report by June
30 to, respectively, the Board of Regents of the UW System or the Technical College
System Board.
The bill modifies the definition of “eligible student” for the purpose of these
grants. The bill eliminates the term “expected family contribution,” which is a
need-based methodology derived from federal standards that were changed in the
federal FAFSA Simplification Act of 2019. Under the bill, an eligible student is
defined as a student whose financial need meets the eligibility criteria for a federal
Pell grant. The bill also allows these grants to be awarded to any UW System
student, not just to students at two-year UW System campuses. The bill increases
the maximum amount of the grants awarded to a UW System or technical college
student in an academic year from $500 to $1,000. The bill also changes the reporting
deadline for the program from June 30 to September 1.
Selective Service registration as a condition for financial aid
The bill repeals provisions that prohibit HEAB and the UW System from
providing state financial assistance to a person required to register with the federal
Selective Service system who is not so registered.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
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ASSEMBLY BILL 381 SECTION 1
1 SECTION 1. 20.285 (1) (e) of the statutes is amended to read:
2 20.285 (1) (e) Grants to meet emergency financial need. As a continuing
3 appropriation, the amounts in the schedule for distribution to the college campuses
4 institutions for purposes of making grants under s. 36.66.
5 SECTION 2. 36.11 (27) of the statutes is repealed.
6 SECTION 3. 36.66 (1) (a) of the statutes is amended to read:
7 36.66 (1) (a) “Eligible student" means a student enrolled in a college campus
8 whose expected family contribution, as defined in s. 39.437 (3) (a), is less than $5,000
9 an institution whose financial need meets the eligibility criteria for a grant from the
10 Federal Pell Grant Program.
11 SECTION 4. 36.66 (1) (c) of the statutes is created to read:
12 36.66 (1) (c) “Institution" includes any former college campus that was
13 partnered with the institution as a branch campus in the system restructuring plan
14 approved by the Higher Learning Commission on or about June 28, 2018.
15 SECTION 5. 36.66 (2) of the statutes is amended to read:
16 36.66 (2) From the appropriation under s. 20.285 (1) (e), no later than
17 September 1, 2016, and by September 1 of each year thereafter, the board shall
18 distribute funds to the college campuses institutions for payment of grants under
19 this section. These funds may not be used by the college campuses institutions for
20 any other purpose. The amount distributed by the board to each college campus
21 institution shall be determined by the board based on the anticipated need and
22 demand for grants at each college campus institution.
23 SECTION 6. 36.66 (3) (a) and (c) of the statutes are amended to read:
24 36.66 (3) (a) Subject to pars. (b) to (d), each college campus institution may
25 award grants to eligible students to pay the student's expense resulting from a
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1 financial emergency. In evaluating a grant application, the college campus
2 institution shall, in its discretion and based on its best judgment, determine whether
3 the student has incurred a legitimate financial emergency.
4 (c) A college campus An institution may not award more than 2 grants under
5 this section to the same student in any academic year. The total of all grants made
6 to a student under this section in the same academic year may not exceed $500
7 $1,000.
8 SECTION 7. 36.66 (4) of the statutes is amended to read:
9 36.66 (4) Each college campus institution shall create or adopt a brief
10 application process and designate an employee with the authority to disburse the
11 grant funds to eligible students. A decision on a grant application, and disbursement
12 of grant funds to a student if a grant is awarded, shall be made within 5 business days
13 of the student's application.
14 SECTION 8. 36.66 (5) of the statutes is amended to read:
15 36.66 (5) If a student applies for a 2nd grant under this section within the same
16 academic year, a college campus an institution shall require the student to undergo
17 a financial counseling session with a financial aid professional before the grant may
18 be awarded.
19 SECTION 9. 36.66 (6) (a) (intro.) of the statutes is amended to read:
20 36.66 (6) (a) (intro.) Each college campus institution shall collect, for each
21 academic year, the following information related to the grant program under this
22 section:
23 SECTION 10. 36.66 (6) (b) of the statutes is amended to read:
24 36.66 (6) (b) By June 30, 2017, and by June 30 September 1 of each year
25 thereafter, each college campus institution shall report to the board the information
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1 collected under par. (a), for the academic year ending in that calendar year, and the
2 board shall submit a report of this information to the chief clerk of each house of the
3 legislature, for distribution to the appropriate standing committees under s. 13.172
4 (3) having jurisdiction over matters relating to colleges and universities.
5 SECTION 11. 38.42 (1) (a) of the statutes is amended to read:
6 38.42 (1) (a) “Eligible student" means a student enrolled in a technical college
7 whose expected family contribution, as defined in s. 39.437 (3) (a), is less than $5,000
8 financial need meets the eligibility criteria for a grant from the Federal Pell Grant
9 Program.
10 SECTION 12. 38.42 (3) (c) of the statutes is amended to read:
11 38.42 (3) (c) A technical college may not award more than 2 grants under this
12 section to the same student in any academic year. The total of all grants made to a
13 student under this section in the same academic year may not exceed $500 $1,000.
14 SECTION 13. 38.42 (6) (b) of the statutes is amended to read:
15 38.42 (6) (b) By June 30, 2017, and by June 30 September 1 of each year
16 thereafter, each district shall report to the board the information collected under par.
17 (a), for the academic year ending in that calendar year, and the board shall submit
18 a report of this information to the chief clerk of each house of the legislature, for
19 distribution to the appropriate standing committees under s. 13.172 (3) having
20 jurisdiction over matters relating to colleges and universities.
21 SECTION 14. 39.28 (6) of the statutes is repealed.
22 SECTION 15. 39.285 (title) of the statutes is amended to read:
23 39.285 (title) Board review of proposed formulae; minimum and
24 maximum grant amounts.
25 SECTION 16. 39.285 (4) of the statutes is created to read:
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1 39.285 (4) By March 1 of each year, the board shall establish a minimum and
2 maximum amount for grants awarded for the next fiscal year under s. 39.30 and
3 39.435, except for grants awarded under s. 39.435 (2) or (5). The board shall integrate
4 the minimum and maximum grant amounts into the formula for awarding grants.
5 SECTION 17. 39.30 (1m) of the statutes is created to read:
6 39.30 (1m) GRANT PROGRAM. There is established, to be administered by the
7 board, a grant program for postsecondary resident students who satisfy the
8 eligibility criteria under 20 USC 1091 (a) (1) and (2) and are enrolled in accredited,
9 private, nonprofit institutions of higher education headquartered in this state.
10 SECTION 18. 39.30 (2) (title) of the statutes is amended to read:
11 39.30 (2) (title) ELIGIBILITY RESTRICTIONS.
12 SECTION 19. 39.30 (2) (intro.), (a) and (b) of the statutes are repealed.
13 SECTION 20. 39.30 (2) (d) of the statutes is amended to read:
14 39.30 (2) (d) No grant shall may be awarded under this section to members of
15 religious orders who are pursuing a course of study leading to a degree in theology,
16 divinity or religious education.
17 SECTION 21. 39.30 (2) (e) of the statutes is amended to read:
18 39.30 (2) (e) The board may not make a grant under this section to a student
19 whose name appears on the statewide support lien docket under s. 49.854 (2) (b),
20 unless the student provides to the board a payment agreement that has been
21 approved by the county child support agency under s. 59.53 (5) and that is consistent
22 with rules promulgated under s. 49.858 (2) (a).
23 SECTION 22. 39.30 (2) (f) of the statutes is repealed.
24 SECTION 23. 39.30 (2) (g) of the statutes is created to read:
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1 39.30 (2) (g) The board may award a grant under this section to the same
2 student for up to 12 semesters of full-time enrollment or, as determined by the board,
3 the equivalent of 12 semesters of full-time enrollment. If the student receiving the
4 grant is enrolled less than full time in any semester or session, only the fraction of
5 the student's enrollment, in proportion to full-time enrollment, shall be applied
6 toward this 12-semester limit.
7 SECTION 24. 39.30 (3) of the statutes is repealed and recreated to read:
8 39.30 (3) GRANT AWARDS. (a) The board shall award grants under this section
9 based on the current federal need analysis formula consistent with generally
10 accepted definitions and nationally approved need analysis methodology.
11 (b) The awarding of grants under this section is subject to any formula
12 approved or modified by the board under s. 39.285 (1).
13 SECTION 25. 39.30 (3m) and (4) of the statutes are repealed.
14 SECTION 26. 3