JAM:cdc
2023 - 2024 LEGISLATURE
March 8, 2023 - Introduced by Representatives Sortwell, Allen, Armstrong,
Behnke, Edming, Gustafson and Rozar, cosponsored by Senators
Cabral-Guevara and Nass. Referred to Committee on Colleges and
Universities.
AB86,1,2 1An Act to create 36.28, 38.25 and 39.55 of the statutes; relating to: permissible
2financial aid reductions in higher education.
Analysis by the Legislative Reference Bureau
This bill prohibits higher education institutions (University of Wisconsin
System institutions, Wisconsin technical colleges, and private, nonprofit institutions
that are members of the Wisconsin Association of Independent Colleges and
Universities) from reducing gift aid that the higher education institution has offered
to a student because the student has received a private or external “last-dollar
scholarship” from a Wisconsin-based entity unless certain circumstances apply.
“Gift aid” is defined in the bill as all financial aid that is not a loan or work-study
program and includes grants, scholarships, tuition waivers, and third-party
payments. “Last-dollar scholarship” is defined as gift aid awarded to a student to
meet any of the student's financial need not met by federal, state, or institutional gift
aid.
Under this bill, a higher education institution may reduce the amount of a
student's offered gift aid in order to comply with the individual or team financial aid
restrictions of a governing national intercollegiate athletic association. Additionally,
under the bill a higher education institution may reduce the amount of offered gift
aid if the student's total gift aid from all sources exceeds the student's financial need,
and the higher education institution may further reduce a student's offered gift aid
if the higher education institution receives approval to do so from the organization
that has awarded the private or external scholarship that triggered the student's
total gift aid exceeding the student's financial need.

For further information see the state and local 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:
AB86,1 1Section 1. 36.28 of the statutes is created to read:
AB86,2,3 236.28 Financial aid reduction restrictions. (1) Definitions. In this
3section:
AB86,2,44 (a) “Cost of attendance” has the meaning given in 20 USC 1087ll.
AB86,2,65 (b) “Expected family contribution” means the amount determined in
6accordance with 20 USC 1087nn.
AB86,2,87 (c) “Financial need” means a student's cost of attendance minus the student's
8expected family contribution.
AB86,2,109 (d) “Gift aid” means all financial aid that is not a loan or work-study program,
10including grants, scholarships, tuition waivers, and third-party payments.
AB86,2,1211 (e) “Institutional gift aid” means gift aid that is funded by the system, the
12board, or an institution.
AB86,2,1513 (f) “Last-dollar scholarship” means gift aid awarded to a student to meet any
14of the student's financial need amount not met by federal gift aid, state gift aid, or
15institutional gift aid.
AB86,2,2116 (g) “Private scholarship” means a last-dollar scholarship awarded by a
17Wisconsin-based company, private foundation, nonprofit organization, or service
18group. “Private scholarship” does not include an award funded by a private
19organization that is affiliated with the system, the board, or an institution and that
20requests that the system, the board, or an institution provide assistance in selecting
21recipients.
AB86,3,3
1(2) Financial aid reduction restrictions. An institution may reduce a
2student's institutional gift aid offer as a result of a private scholarship award only
3as described in one or more of the following manners:
AB86,3,64 (a) If a student's total gift aid from all sources exceeds the student's financial
5need, an institution may reduce the student's institutional gift aid until the student's
6total gift aid no longer exceeds the student's financial need.
AB86,3,117 (b) In addition to the reduction authorized under par. (a), an institution may
8further reduce a student's institutional gift aid if the institution receives approval
9from the company, private foundation, nonprofit organization, or service group that
10awarded the private scholarship that triggered the reduction authorized under par.
11(a).
AB86,3,1412 (c) An institution may reduce a student athlete's institutional gift aid in order
13to comply with a governing national intercollegiate athletic association's individual
14or team financial aid restrictions.
AB86,2 15Section 2. 38.25 of the statutes is created to read:
AB86,3,17 1638.25 Financial aid reduction restrictions. (1) Definitions. In this
17section:
AB86,3,1818 (a) “Cost of attendance” has the meaning given in 20 USC 1087ll.
AB86,3,2019 (b) “Expected family contribution” means the amount determined in
20accordance with 20 USC 1087nn.
AB86,3,2221 (c) “Financial need” means a student's cost of attendance minus the student's
22expected family contribution.
AB86,3,2423 (d) “Gift aid” means all financial aid that is not a loan or work-study program,
24including grants, scholarships, tuition waivers, and third-party payments.
AB86,4,2
1(e) “Institutional gift aid” means gift aid that is funded by the board, a district
2board, or a technical college.
AB86,4,53 (f) “Last-dollar scholarship” means gift aid awarded to a student to meet any
4of the student's financial need amount not met by federal gift aid, state gift aid, or
5institutional gift aid.
AB86,4,116 (g) “Private scholarship” means a last-dollar scholarship awarded by a
7Wisconsin-based company, private foundation, nonprofit organization, or service
8group. “Private scholarship” does not include an award funded by a private
9organization that is affiliated with the board, a district board, or a technical college
10and that requests that the board, a district board, or a technical college provide
11assistance in selecting recipients.
AB86,4,14 12(2) Financial aid reduction restrictions. A technical college may reduce a
13student's institutional gift aid offer as a result of a private scholarship award only
14as described in one or more of the following manners:
AB86,4,1715 (a) If a student's total gift aid from all sources exceeds the student's financial
16need, a technical college may reduce the student's institutional gift aid until the
17student's total gift aid no longer exceeds the student's financial need.
AB86,4,2218 (b) In addition to the reduction authorized under par. (a), a technical college
19may further reduce a student's institutional gift aid if the technical college receives
20approval from the company, private foundation, nonprofit organization, or service
21group that awarded the private scholarship that triggered the reduction authorized
22under par. (a).
AB86,4,2523 (c) A technical college may reduce a student athlete's institutional gift aid in
24order to comply with a governing national intercollegiate athletic association's
25individual or team financial aid restrictions.
AB86,3
1Section 3. 39.55 of the statutes is created to read:
AB86,5,3 239.55 Financial aid reduction restrictions. (1) Definitions. In this
3section:
AB86,5,44 (a) “Cost of attendance” has the meaning given in 20 USC 1087ll.
AB86,5,65 (b) “Expected family contribution” means the amount determined in
6accordance with 20 USC 1087nn.
AB86,5,127 (c) “External scholarship” means a last-dollar scholarship awarded by a
8Wisconsin-based company, private foundation, nonprofit organization, or service
9group. “External scholarship” does not include an award funded by an external
10organization that is affiliated with private higher education institution and that
11requests that the private higher education institution provide assistance in selecting
12recipients.
AB86,5,1413 (d) “Financial need” means a student's cost of attendance minus the student's
14expected family contribution.
AB86,5,1615 (e) “Gift aid” means all financial aid that is not a loan or work-study program,
16including grants, scholarships, tuition waivers, and third-party payments.
AB86,5,1817 (f) “Institutional gift aid” means gift aid that is funded by a private higher
18education institution.
AB86,5,2119 (g) “Last-dollar scholarship” means gift aid awarded to a student to meet any
20of the student's financial need amount not met by federal gift aid, state gift aid, or
21institutional gift aid.
AB86,5,2422 (h) “Private higher education institution” means a private, nonprofit
23institution of higher education that is a member of the Wisconsin Association of
24Independent Colleges and Universities.
AB86,6,3
1(2) Financial aid reduction restrictions. A private higher education
2institution may reduce a student's institutional gift aid offer as a result of an external
3scholarship award only as described in one or more of the following manners:
AB86,6,64 (a) If a student's total gift aid from all sources exceeds the student's financial
5need, a private higher education institution may reduce the student's institutional
6gift aid until the student's total gift aid no longer exceeds the student's financial need.
AB86,6,117 (b) In addition to the reduction authorized under par. (a), a private higher
8education institution may further reduce a student's institutional gift aid if the
9private higher education institution receives approval from the company, private
10foundation, nonprofit organization, or service group that awarded the external
11scholarship that triggered the reduction authorized under par. (a).
AB86,6,1412 (c) A private higher education institution may reduce a student athlete's
13institutional gift aid in order to comply a governing national intercollegiate athletic
14association's individual or team financial aid restrictions.
AB86,6,1515 (End)
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