The Higher Educational Aids Board is responsible for the management and oversight of the state's student financial aid system for Wisconsin residents attending institutions of higher education. It also may enter into interstate agreements, such as remission of nonresident tuition and student loan collection programs.

The board establishes policies to administer the state's student financial aid programs, including Academic Excellence Scholarships, Wisconsin Tuition Grants, Wisconsin Higher Education Grants, Talent Incentive Program Grants, Handicapped Student Grants, Indian Student Assistance, Minority Undergraduate Retention Grants (private sector and Technical College System), interstate reciprocity, and teacher and nursing forgiveness loans. It also administers the Contracts for Dental Education Services and the Wisconsin Health Education Assistance Loan Program and approves the list of students for the Medical College of Wisconsin, Inc. per capita grant program.

The following reflects recommended changes to obsolete or antiquated statutes that relate to the functions and duties of the Higher Educational Aids Board. Recommendations are also included that will place the subchapter sections in a working order and more clearly identify the various programs by the name they are referred to as.

SECTION 1
Renumber Chapter 39, Subchapter III (and any reference to) as follows:

Current Number	Revised Number
39.26	39.261
39.28	39.271
39.285	39.281
39.29	39.291
39.30	39.441
39.31	39.301
39.32	39.451
39.325	39.452
39.33	39.461
39.34	39.471
39.35	39.481
39.36	39.491
39.37	39.501
39.374	39.502
39.38	39.351
39.39	39.401
39.395	39.411
39.40	39.391
39.41	39.311
39.42	39.361
39.435	39.431
39.44	39.381
39.45	39.341
39.46	39.321
39.47	39.371
39.51	39.51 (remains unchanged)
To be created	39.331
To be created	39.421

SECTION 2
39.281 (Board Review of Proposed Formulae) of the statutes is amended to read:

39.281(1)
(1) By May 1, 1998, and annually thereafter, the board shall approve, modify or disapprove any proposed formula for the awarding of Wisconsin Higher Education Grants for the upcoming academic year submitted under sub. (2) or (3) or s. 36.11 (6) (c) or 38.04 (7m).

39.281(2)
(2) By April 10, 1998, and annually thereafter, the Wisconsin Association of Independent Colleges and Universities shall develop and submit to the board for its review under sub. (1) a proposed formula for the awarding of Wisconsin Tuition Grants under s. 39.441 for the upcoming academic year to students enrolled at private nonprofit institutions of higher education.

39.281(3)
(3) By April 10, 1998, and annually thereafter, each tribally controlled college in this state is requested to develop and submit to the board for its review under sub. (1) a proposed formula for the awarding of Wisconsin Tuition Grants under s. 39.441 for the upcoming academic year to students enrolled at that tribally controlled college.

SECTION 3
39.331 is created to read:

39.331 Handicapped Student Grant.

39.331(1)
(1) There is established, to be administered by the board, a higher education grant program for postsecondary resident students enrolled at least half-time in a degree or certificate program and registered as freshmen, sophomores, juniors or seniors in accredited institutions of higher education in this state.

39.331(2)
(2) Grants under sub. (1) shall not be less than $250 during any one academic year, unless the joint committee on finance approves an adjustment in the amount of the minimum grant. Grants under sub. (1) shall not exceed $1,800 during any one academic year. The board may not award a grant to the same student for more than 10 semesters or their equivalent. The board shall, by rule, establish a reporting system to periodically provide student economic data and shall promulgate other rules the board deems necessary to assure uniform administration of the program.

39.331(3)
(3) The board shall ensure that grants under this section are made available to students attending private or public institutions in this state who are deaf or hard of hearing or visually handicapped and who demonstrate need. Grants may also be made available to such handicapped students attending private or public institutions in other states under criteria established by the board. In determining the financial need of these students special consideration shall be given to their unique and unusual costs.

39.331(4)
(4) The board may not make a grant under this section to a person if the board receives a certification under s. 49.855 (7) that the person is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.

SECTION 4
39.351(2) (Indian Student Grant Assistance) of the statutes is amended to read:

39.351(2)
(2) Grants under this section shall be based on financial need, as determined by the board. The minimum grant shall not be less than $250 and the maximum grant shall not exceed $2,200 per year, of which not more than $1,100 may be from the appropriation under s. 20.235 (1) (fb). State aid from this appropriation may be matched by a contribution from a federally recognized American Indian tribe or band that is deposited in the general fund and credited to the appropriation account under s. 20.235 (1) (gm). Grants shall be awarded to students for full-time or part-time attendance in a degree or certificate program at any accredited institution of higher education in this state. The board may not make a grant under this section to a student if the board receives a certification under s. 49.855 (7) that the student is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses. Grants shall be renewable for up to 5 years if a recipient remains in good academic standing at the institution that he or she is attending.

SECTION 5
39.381 (Minority Undergraduate Retention Grants) of the statutes is amended to read:

39.381(1)(a)
(a) In this section "minority undergraduate" means an undergraduate student who:

39.381(1)(a)1.
1. Is a Black an African American.

39.381(1)(b)
(b) There is established, to be administered by the board, the minority undergraduate retention grant program for minority undergraduates enrolled at least half time in a degree or certificate program in private, nonprofit higher educational institutions in this state or in technical colleges in this state.

SECTION 6
39.391 (Minority Teacher Loan Program) of the statutes is amended to read:

39.391(1)
(1) In this section "minority student" means a student who is any of the following:

39.391(1)(a)
(a) A Black An African American.

SECTION 7
39.421 is created to read:

39.421 Talent Incentive Program Grants.

39.421(1)
(1) The board shall award talent incentive program grants to uniquely needy resident students enrolled at least half-time in a degree or certificate program as first-time freshmen at public and private nonprofit institutions located in this state and to sophomores, juniors and seniors who received such grants as freshmen. No grant under this subsection may be less than $250 or exceed $1,800 for any academic year. The board may not award a grant to the same student for more than 10 consecutive semesters or their equivalent. The board shall promulgate rules establishing eligibility criteria for grants under this subsection.

39.421(2)
(2) The board may not make a grant under this section to a person if the board receives a certification under s. 49.855 (7) that the person is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.

SECTION 8
39.431 (Wisconsin Higher Education Grants and Talent Incentive Grants) of the statutes is amended to read:

39.431(1)
(1) There is established, to be administered by the board, a higher education grant program for postsecondary resident students enrolled at least half-time in a degree or certificate program and registered as freshmen, sophomores, juniors or seniors in accredited institutions of higher education in this state. Except as authorized under sub. (5), such grants shall be made only to students enrolled in nonprofit public institutions in this state.

39.435(2)
(2) The board shall award talent incentive grants to uniquely needy students enrolled at least half-time as first-time freshmen at public and private nonprofit institutions located in this state and to sophomores, juniors and seniors who received such grants as freshmen. No grant under this subsection may exceed $1,800 for any academic year. The board may not award a grant to the same student for more than 10 consecutive semesters or their equivalent. The board shall promulgate rules establishing eligibility criteria for grants under this subsection.

39.431(3)
(3) Grants under sub. (1) shall not be less than $250 during any one academic year, unless the joint committee on finance approves an adjustment in the amount of the minimum grant. Grants under sub. (1) shall not exceed $1,800 during any one academic year. The board shall, by rule, establish a reporting system to periodically provide student economic data and shall promulgate other rules the board deems necessary to assure uniform administration of the program.

39.431(4)(a)
(a) The board shall promulgate rules establishing policies and procedures for determining dependent and independent status and for the calculation of expected parental and student contributions. The rules shall be consistent with generally accepted definitions and nationally approved needs analysis methodology.

39.431(4)(b)
(b) Grants paid to dependent students under this section shall be determined as follows:

39.431(4)(b)1.
1. Annually, the board shall establish equity award levels for students enrolled in the University of Wisconsin System and for students enrolled in technical colleges.

39.431(4)(b)2.
2. From the equity levels established under subd. 1., the board shall subtract the amount of the expected parental contribution and the expected student contribution to determine the amount of the student's grant.

39.431(4)(c)
(c) Grants paid to independent students shall be determined by the board consistent with the rules and procedures under pars. (a) and (b).

39.431(4)(d)
(d) The awarding of grants under this section is subject to any formula approved or modified by the board under s. 39.281 (1).

39.435(5)
(5) The board shall ensure that grants under this section are made available to students attending private or public institutions in this state who are deaf or hard of hearing or visually handicapped and who demonstrate need. Grants may also be made available to such handicapped students attending private or public institutions in other states under criteria established by the board. In determining the financial need of these students special consideration shall be given to their unique and unusual costs.

39.431(6)
(6) The board may not make a grant under this section to a person if the board receives a certification under s. 49.855 (7) that the person is delinquent in child support or maintenance payments or owes past support, medical expenses or birth expenses.

SECTION 9
39.441 (Wisconsin Tuition Grants) of the statutes is amended to read:

39.441(2)
(2) Eligibility. A resident student enrolled at least half-time in a degree program and registered as a freshman, sophomore, junior or senior in an accredited, nonprofit, post-high school, educational institution in this state or in a tribally controlled college in this state shall be eligible for grants under this section for each semester of attendance, but:

39.441(3)
(3) Basis of grants. The grant to be paid to a resident student enrolled at least half-time in a degree program and registered as a freshman, sophomore, junior or senior after August 1, 1979, shall be determined as follows:

The Educational Approval Board must approve all postsecondary schools and courses of instruction that educate armed forces veterans and war orphans who receive assistance from the federal government. It also protects the public by inspecting and approving private for-profit postsecondary schools operating in Wisconsin. It judges the quality of proprietary schools for purposes of federal financial aid and serves as Wisconsin's state approval agency for these aid programs. In addition, the council approves and licenses in-state nonprofit postsecondary educational institutions incorporated after January 1, 1992, and all out-of-state nonprofit colleges that have a Wisconsin location.

In the past two years, the agency reshaped its 'state' role: shifting orientation from only checking school compliance with procedural requirements to measuring outcomes (or achieved results). The re-engineering retained key consumer protections (financial stability, program quality, truthful advertising), but streamlined and prioritized standards. Most significantly, the new approach requires that schools have the systemic capacity to self-monitor and improve performance and product.

As a result of this comprehensive re-engineering in the EAB's approach to oversight, and significant changes in the nature of the private postsecondary educational sector, some of the existing statutory language defining the EAB's role has been rendered obsolete. The following modifications reinforce the streamlining and clarification of EAB's oversight mission, policy and procedures and are in conformity with the EAB's new administrative code.

SECTION 1
39.51(1)(b) and (c) of the statutes are repealed.

SECTION 2
39.51(1)(b) is created to read:

39.51(1)(b)
(b) "Distance Education" means instruction provided by means other than face-to-face student to teacher interaction and includes (but is not limited to) video, computer-based, Internet and correspondence instruction.

SECTION 3
39.51(1)(d) is renumbered 39.51(1)(c).

SECTION 4
39.51(1)(d) is created to read:

39.51(1)(d)
(d) "Program" means an organized unit of subject matter in which instruction is offered within a given time and which leads to a certificate, diploma or degree, or to an occupational, educational or vocational objective.

SECTION 5
39.51(1)(e) of the statutes is amended to read:

39.51(1)(e)
(e) "School" means any person, located within or outside this state, maintaining, advertising or conducting any program for profit or a tuition charge, but in subs. (7), (8) and (10) "school" means any private trade, correspondence, business or technical school who maintains, advertises or provides any postsecondary program for a consideration or remuneration to Wisconsin residents not excepted under sub. (9).

SECTION 6
39.51(1)(f) of the statutes is amended to read:

39.51(1)(f)
(f) "Solicitor" "Representative" means a person an individual employed by or representing a school located either within or outside this state who, in places other than the actual premises of the school, personally attempts to secure the enrollment of a student enrollments.

SECTION 7
39.51(1)(g) of the statutes is amended to read:

39.51(1)(g)
(g) "Teaching location" means the area and facilities designated for use by the a school required to be approved by the board under this section including any office, classroom, meeting room, laboratory, shop or range, used or designated for instructional use by a school.

SECTION 8
39.51(2) of the statues is amended to read:

39.51(2)
(2) PURPOSE. The purpose of the board is to approve schools and courses of instruction programs for the training and education of veterans of the armed forces and war orphans receiving assistance from the federal government eligible family members, protect the general public by inspecting and approving private trade, correspondence, business and technical postsecondary schools doing business in providing instruction to residents of this state whether located within or outside this state, including approving teaching locations used by these schools, courses of instruction programs offered by these schools and to regulate regulating the soliciting of students for correspondence or classroom courses and courses of instruction offered by these schools.

SECTION 9
39.51(7) of the statutes is amended to read:

39.51(7)
(7) APPROVAL OF SCHOOLS GENERALLY. In order to protect students, prevent fraud and misrepresentation in the sale and advertising of courses and courses of instruction programs and encourage ensure that schools to maintain courses and courses of instruction programs consistent in quality, content and length with generally accepted educational standards, the board shall;

SECTION 10
39.51(7)(a) of the statutes is amended to read:

39.51(7)(a)
(a) Investigate the adequacy of courses and courses of instruction programs offered by schools to residents of this state and establish minimum standards for such courses of instruction programs.

SECTION 11
39.51(7)(c) of the statutes is amended to read:

39.51(7)(c)
(c) Establish rules, standards and criteria to prevent fraud and misrepresentation in the sale and advertising of courses and courses of instruction programs.

SECTION 12
39.51(7)(e) of the statutes is amended to read:

39.51(7)(e)
(e) Establish minimum standards for refund of the unused portion of tuition, fees and other charges if a students does not enter a courses and courses of instruction program, or withdraws or is discontinued therefrom by a school.

SECTION 13
39.51(7)(f) of the statutes is amended to read:

39.51(7)(f)
(f) Require schools offering courses and courses of instruction programs to residents of this state to furnish information concerning their facilities, curricula, instructors, enrollment policies, tuition and other charges and fees, refund policies and policies concerning negotiability of promissory instruments received in payment of tuition and other charges explaining their mission; bylaws; degrees and programs; enrollment agreement; cancellation policy; placement services; advertising; financial stability; bond requirement; school facilities and location; faculty members; fire, safety and health standards; and non-discrimination policy.

SECTION 14
39.51(7)(g) of the statutes is amended to read:

39.51(7)(g)
(g) Approve courses of instruction programs, schools, changes of ownership or control of schools and teaching locations meeting the requirements and standards established by the board and complying with rules promulgated by the board and publish a list of approved schools and courses of instruction approved programs.

SECTION 15
39.51(7)(h) of the statutes is amended to read:

39.51(7)(h)
(h) Issue permits to solicitors representatives when all board requirements have been met.

SECTION 16
39.51(8) of the statutes is repealed.

SECTION 17
39.51(8) is created to read:

39.51(8) ENROLLING STUDENTS

39.51(8)(a)
(a) In general. No individual representing any school shall sign up students for enrollment in this state, except upon the actual business premises of the school, unless he or she first secures a permit from the board for each school he or she represents.

39.51(8)(b)
(b) Representatives' permit. An individual shall apply for a permit on board forms and shall submit with the application a fee and evidence of coverage for that representative denoted on the school's bond. The board shall, by rule, specify the amount of the permit fee and required bond coverage. A permit shall be valid for one year from date of issue.

39.51(8)(c)
(c) Refusal or revocation of permit. The board may refuse to issue or renew, or may revoke, any representative's permit upon one or any combination of the following grounds:

39.51(8)(c)1.
1. Violation of this subsection or any rule promulgated under this section;

39.51(8)(c)2.
2. Furnishing false, misleading or incomplete information to the board;

39.51(8)(c)3.
3. Presenting false or misleading information to potential students.

39.51(8)(c)4.
4. Cancellation of the bond by the surety, or cessation of school coverage for the representative.

39.51(8)(c)5.
5. Subject to ss. 111.321, 111.322 and 111.335, the applicant has an arrest or conviction record.

39.51(8)(d)
(d) Notice of refusal to issue or renew permit. Notice of refusal to renew a permit or revocation of a permit shall be sent to the last address of the applicant or holder and to the affected school. Revocation shall be effective 10 days after the notice of revocation has been mailed.

39.51(8)(e)
(e) Request for Appearance. Within 20 days of the receipt of notice of the board's refusal to issue or renew a permit or of the revocation of a permit, the applicant or holder may request an appearance before the board. Upon receipt of such a request, the board shall grant a hearing to the applicant or holder within 30 days.

39.51(8)(f)
(f) Enforcement. The attorney general or any district attorney may bring an appropriate action or proceeding in any court of competent jurisdiction for the enforcement of this subsection.

39.51(8)(g)
(g) Penalty. Whoever violates this subsection may be fined not more than $1,000 or imprisoned not more than 3 months of both.

SECTION 18
39.51(10)(a) and (b) are amended to read:

39.51(10) PROPRIETARY PRIVATE SCHOOL APPROVAL.

39.51(10)(a)
(a) Authority. All proprietary non-excepted private schools shall be examined and approved by the board before operating in this state. This shall include schools offering programs via Distance Education. Approval to operate shall be granted to schools meeting the criteria established by the board not to exceed one year. No school may advertise in this state unless approved by the board. All approved schools shall submit quarterly required reports, including information on enrollments, number of teachers and their qualifications, course offerings, delineating number of graduates, number of graduates successfully employed, dropouts and completers and procedures to evaluate educational outcomes and such other information as the board deems necessary.