21.0888.01000
Sixty-seventh
Legislative Assembly SENATE BILL NO. 2272
of North Dakota
Introduced by
Senators Schaible, Wanzek
Representatives Dockter, Headland, Nathe
1 A BILL for an Act to create and enact section 15-10-38.3 of the North Dakota Century Code,
2 relating to administrative fees retained by the state board of higher education; to amend and
3 reenact sections 15-10-38.1 and 15-10-38.2 of the North Dakota Century Code, relating to the
4 skilled workforce student loan repayment program and skilled workforce scholarship program;
5 to provide a continuing appropriation; to provide an effective date; and to provide an expiration
6 date.
7 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
8 SECTION 1. AMENDMENT. Section 15-10-38.1 of the North Dakota Century Code is
9 amended and reenacted as follows:
10 15-10-38.1. Skilled workforce student loan repayment program - Skilled workforce
11 student loan repayment program fund - Continuing appropriation - Report.
12 1. There is created in the state treasury the skilled workforce student loan repayment
13 program fund. The fund consists of moneys transferred into the fund by the legislative
14 assembly, matching funds received, and loan repayments. Moneys in the fund are
15 appropriated to the state board of higher education on a continuing basis for the
16 purpose of distributing student loan repayment grants directly to the Bank of North
17 Dakota or other participating lender to repay outstanding student loan principal
18 balances for eligible applicants.
19 2. The state board of higher education shall adopt policies and procedures to develop,
20 implement, promote, and administer a skilled workforce student loan repayment
21 program in cooperation with the Bank of North Dakota and the North Dakota workforce
22 development council with the intent of attracting and retaining individuals for
23 professional or technical skills in high demand in this state.
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1 3. The North Dakota workforce development council in cooperation with job service North
2 Dakota shall use available labor market information to determine annually the eligible
3 high-demand professional and technical skills and emerging occupations in this state.
4 4. The state board of higher education and the North Dakota workforce development
5 council shall compile a list of qualifying educational programs annually. Qualifying
6 educational programs must pertain to the professional and technical skills and
7 emerging occupations in high demand in this state, as determined under subsection 3.
8 Qualifying educational programs may include degree or certificate programs.
9 5. Graduates of qualifying educationaldegree or certificate programs from institutions or
10 entities in this state may apply for the skilled workforce student loan repayment
11 program. To be eligible to receive student loan repayment grants under the program,
12 the applicant:
13 a. Must have successfully completed a qualifyingan educational program from an
14 eligible institution of higher education;
15 b. Must have a student loan with the Bank of North Dakota or other participating
16 lender;
17 c. Following completion of a qualifyingan educational program, must reside and
18 work in this state in an eligible high-demand or emerging occupation; and
19 d. Must have met and shall continue to meet any requirements established by rulein
20 applicable state board of higher education procedures.
21 6.5. The state board of higher education shall adopt rulesprocedures to ensure compliance
22 with residency and occupation requirements after completion of the qualifying
23 educational program.
24 7.6. The state board of higher education shall distribute student loan repayment grants
25 from the skilled workforce student loan repayment program fund directly to the Bank of
26 North Dakota or other participating lender to repay outstanding student loan principal
27 balances for eligible applicants. The maximum annual student loan repayment grant
28 amount for which an applicant may qualify is five thousand six hundred sixty-seven
29 dollars, or one-third of the applicant's outstanding student loan principal balance upon
30 initial application for the program, whichever is less. The maximum total student loan
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1 repayment grant amount for which any applicant may qualify is seventeen thousand
2 dollars.
3 8.7. If an individual is receiving loan forgiveness under any other provisionstate program,
4 the individual may not receive a student loan repayment grant under this section
5 during the same application year. An individual who received a skilled workforce
6 scholarship under section 15-10-38.2 is not eligible for loan forgiveness under this
7 section.
8 8. An individual may receive a combined total of no more than seventeen thousand
9 dollars under this section and the skilled workforce scholarship program under section
10 15-10-38.2.
11 9. The skilled workforce student loan repayment program must be a joint public and
12 private effort. The state board of higher education shall provide one dollar of funding
13 for each one dollar of funding raised from the private sector. Any matching funds
14 received must be deposited in the skilled workforce student loan repayment program
15 fund.
16 10. The state board of higher education shall provide a biennial program report to the
17 legislative management by September first of each even-numbered year. The report
18 must include information regarding:
19 a. The eligible high-demand professional and technical skills and emerging
20 occupations;
21 b. The qualifying educational programs;
22 c. The number of applicants, eligible applicants, and applicants receiving awards;
23 d.c. The amount of private funding raised; and
24 e.d. The average and total amounts awarded under the program.
25 SECTION 2. AMENDMENT. Section 15-10-38.2 of the North Dakota Century Code is
26 amended and reenacted as follows:
27 15-10-38.2. Skilled workforce scholarship program - Skilled workforce scholarship
28 fund - Continuing appropriation - Report.
29 1. There is created in the state treasury the skilled workforce scholarship fund. The fund
30 consists of moneys transferred into the fund by the legislative assembly, matching
31 funds received, and scholarship repayments. Moneys in the fund are appropriated to
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1 the state board of higher education on a continuing basis for the purpose of providing
2 grants to institutions of higher education related to skilled workforce scholarships.
3 Institutions of higher education include institutions under the control of the state board
4 of higher education, North Dakota nonpublic accredited institutions of higher
5 education, and tribally controlled community colleges, and North Dakota institutions
6 licensed by the North Dakota department of career and technical education.
7 2. The state board of higher education shall adopt policies and procedures to develop,
8 implement, promote, and administer a skilled workforce scholarship program in
9 cooperation with the Bank of North Dakota and the North Dakota workforce
10 development council with the intent of attracting and retaining individuals for
11 professional or technical skills in high demand in this state.
12 3. The North Dakota workforce development council in cooperation with job service North
13 Dakota shall use available labor market information to determine annually the eligible
14 high-demand professional and technical skills and emerging occupations in this state.
15 4. The state board of higher education and the workforce development council shall
16 compile a list of qualifying educational programs annually. QualifyingA qualifying
17 educational programs must be able toprogram is a program resulting in attainment of
18 an associate's degree or lower credential upon successful completion or a program
19 that may be completed within four semesters or six quarters and must. A qualifying
20 educational program also must pertain to the professional and technical skills and
21 emerging occupations in high demand in this state, as determined under subsection 3.
22 Qualifying educational programs may include degree or certificate programs.
23 5. Individuals enrolled in a qualifying educational program in this state may apply for a
24 scholarship under this section. Scholarships are limited to the amount charged each
25 quarter, semester, or term by the educational institution for the tuition, fees, books, and
26 supplies required for the qualifying educational program. The scholarships are
27 intended to supplement any other scholarship or financial aid grant received by a
28 student to assist the student with the costs of the qualifying educational program. An
29 individual may not receive more thana combined total exceeding seventeen thousand
30 dollars in total under this section and the skilled workforce loan repayment program
31 under section 15-10-38.1.
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1 6. To be eligible for a scholarship and payment under this section, a student must be
2 enrolled full time in an eligible program and maintainhave at least a 2.5 cumulative
3 grade point average, based on a 4.0 grading system, or maintain academic progress
4 in the program according to program requirements. A student may not receive
5 scholarships under this section for more than the equivalent of four semesters of
6 full-time enrollment or six quarters of full-time enrollment.
7 7. Upon completion of a qualifying educational program, a student who received a
8 scholarship under this section must reside and work in this state in an eligible
9 high-demand or emerging occupation for a minimum of three years.
10 8. An individual shall repay the scholarship pursuant to the terms in the individual's
11 scholarship award agreement if the individual fails to maintain either a 2.5 cumulative
12 grade point average or academic progress according to program requirements while
13 enrolled, discontinues attendancewithdraws voluntarily or involuntarily before the
14 completion of any semester or quarterthe program for which a scholarship has been
15 received, or fails to reside and work in this state in an eligible high-demand or
16 emerging occupation for at least three years following degree or certificate completion.
17 9. The state board of higher education may allow an individual who received payment
18 under this section to delay or cancel repayment under this section due to financial
19 difficulty, military service, death, or total disability.
20 10. Each quarter, semester, or term, the state board of higher education shall distribute
21 grants to institutions of higher education to provide the amounts necessary for the
22 scholarships awarded to the students enrolled in each institution.
23 10.11. The skilled workforce scholarship program must be a joint public and private effort.
24 The state board of higher education may distribute grants only to the extent that the
25 private sector has provided one dollar of matching funds for each dollar of funding
26 provided by the state. Any matching funds received must be deposited in the skilled
27 workforce scholarship fund.
28 11.12. The state board of higher education shall provide a biennial program report to the
29 legislative management by September first of each even-numbered year. The report
30 must include information regarding:
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1 a. The eligible high-demand professional and technical skills and emerging
2 occupations;
3 b. The qualifying educational programs;
4 c. The number of applicants, eligible applicants, and applicants receiving awards;
5 d. The amount of private funding raised; and
6 e. The average and total amounts awarded under the program.
7 SECTION 3. Section 15-10-38.3 of the North Dakota Century Code is created and enacted
8 as follows:
9 15-10-38.3. Scholarship and loan forgiveness administrative costs - Continuing
10 appropriation.
11 The state board of higher education shall retain up to one and one-half percent of any funds
12 appropriated to the board under subsection 1 of section 15-10-38.1 and subsection 1 of section
13 15-10-38.2. The retained funds must be used for promotion and administration of the programs
14 under those sections.
15 SECTION 4. Section 15-10-38.3 of the North Dakota Century Code is created and enacted
16 as follows:
17 15-10-38.3. Scholarship and loan forgiveness administrative costs - Continuing
18 appropriation.
19 The state board of higher education shall retain up to one-half of one percent of any funds
20 appropriated to the board under subsection 1 of section 15-10-38.1 and subsection 1 of section
21 15-10-38.2. The retained funds must be used for administration of the programs under those
22 sections.
23 SECTION 5. EXPIRATION DATE. Section 3 of this Act is effective through July 31, 2023,
24 and after that date is ineffective.
25 SECTION 6. EFFECTIVE DATE. Section 4 of this Act becomes effective on August 1, 2023.
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Statutes affected: INTRODUCED: 15-10-38.1, 15-10-38.2
FIRST ENGROSSMENT: 15-10-38.1, 15-10-38.2
Adopted by the Conference Committee: 15-10-38.3
Enrollment: 15-10-38.1, 15-10-38.2, 15-10-38.3