AB100,603,524 (b) Application. Application for initial approval of a school or a course of
25instruction, approval of a teaching location, change of ownership or control of a

1school, renewal of approval of a school or reinstatement of approval of a school or
2course of instruction which has been revoked shall be made on a form furnished by
3the department board and shall be accompanied by a fee set by the department board
4under par. (c), and such other information as the department board deems necessary
5to evaluate the school in carrying out the purpose of this section.
AB100,603,76 (c) Fees; rule making. (intro.) The department board shall promulgate rules
7to establish fees. In promulgating rules to establish fees, the department board shall:
AB100,603,108 1. Require that the amount of fees collected under this paragraph be sufficient
9to cover all costs that the department board incurs in examining and approving
10proprietary schools under this subsection.
AB100, s. 1212 11Section 1212. 39.11 (5) of the statutes is amended to read:
AB100,603,1412 39.11 (5) Work with the educational agencies and institutions of the state as
13reviewer, adviser and coordinator of their joint efforts to meet the educational needs
14of the state through radio and, television and other appropriate technologies.
AB100, s. 1213 15Section 1213. 39.11 (20) of the statutes is repealed.
AB100, s. 1214 16Section 1214. 39.13 (2) of the statutes is amended to read:
AB100,603,2217 39.13 (2) The executive director may employ a deputy director, the number of
18division administrators specified in s. 230.08 (2) (e) and 12 11 professional staff
19members outside the classified service. Subject to authorization under s. 16.505, the
20executive director may employ additional professional staff members for
21development and grant projects outside the classified service or for other purposes
22within the classified service.
AB100, s. 1215 23Section 1215. 39.145 of the statutes is repealed.
AB100, s. 1216 24Section 1216. 39.155 (1) of the statutes is amended to read:
AB100,604,6
139.155 (1) Subject to sub. (3), all funds appropriated to the medical college of
2Wisconsin, inc., under s. 20.250 (1) (a) shall be based on a per capita formula for an
3amount for each Wisconsin resident enrolled at the college who is paying full tuition.
4A student's qualification as a resident of this state shall be determined by the
5department of education higher educational aids board in accordance with s. 36.27,
6so far as applicable.
AB100, s. 1217 7Section 1217. 39.155 (2) of the statutes is amended to read:
AB100,604,178 39.155 (2) On or before January 15 and September 15 of each year, the medical
9college of Wisconsin, inc., shall submit to the department of education higher
10educational aids board
for its approval a list of the Wisconsin residents enrolled at
11the college who are paying full tuition. The state shall make semiannual payments
12to the medical college of Wisconsin, inc., from the appropriation under s. 20.250 (1)
13(a), upon approval of the list. If the appropriation under s. 20.250 (1) (a) is
14insufficient to pay the amount specified to be disbursed under s. 20.250 (1) (a), the
15payments shall be disbursed on a prorated basis for each student entitled to such aid.
16No more than 8 such payments may be made to the medical college of Wisconsin, inc.,
17from the appropriation under s. 20.250 (1) (a), for any individual student.
AB100, s. 1218 18Section 1218. Subchapter III (title) of chapter 39 [precedes 39.26] of the
19statutes is amended to read:
AB100,604,2020 CHAPTER 39
AB100,604,2221 SUBCHAPTER III
22 HIGHER EDUCATIONAL AIDS BOARD
AB100, s. 1219 23Section 1219. 39.26 of the statutes is amended to read:
AB100,604,25 2439.26 Definition. In this subchapter, "department" "board" means the
25department of education higher educational aids board.
AB100, s. 1220
1Section 1220. 39.28 (1) of the statutes is amended to read:
AB100,605,72 39.28 (1) The department board shall administer the programs under this
3subchapter and may promulgate such rules as are necessary to carry out its
4functions. The department board may accept and use any funds which it receives
5from participating institutions, lenders or agencies. The department board may
6enter into such contracts as are necessary to carry out its functions under this
7subchapter.
AB100, s. 1221 8Section 1221. 39.28 (2) of the statutes is amended to read:
AB100,605,149 39.28 (2) The department board shall establish plans to be administered by the
10department board for participation by this state under any federal acts relating to
11higher education and submit them to the U.S. commissioner secretary of education
12for the commissioner's secretary's approval. The department board may utilize such
13criteria for determination of priorities, participation or purpose as are delineated in
14the federal acts.
AB100, s. 1222 15Section 1222. 39.28 (3) of the statutes is created to read:
AB100,605,1816 39.28 (3) (a) In its biennial report under s. 15.04 (1) (d), the board also shall
17include recommendations for improvement of the state's student financial aid
18programs.
AB100,605,2219 (b) On January 1 and July 1, the board shall report to the joint committee on
20finance and the joint legislative audit committee on the board's loan collection
21activities and efforts to develop collection policies to improve program performance
22through changes in data processing and program review.
AB100, s. 1223 23Section 1223. 39.28 (4) of the statutes is amended to read:
AB100,605,2524 39.28 (4) The department board may assign, sell, convey or repurchase student
25loans made under s. 39.32 subject to prior approval by the joint committee on finance.
AB100, s. 1224
1Section 1224. 39.285 of the statutes is amended to read:
AB100,606,6 239.285 (title) Education commission Board review of proposed
3formulae.
(1) By May 1, 1996 1998, and annually thereafter, the education
4commission
board shall approve, modify or disapprove any proposed formula for the
5awarding of grants for the upcoming academic year submitted under sub. (2) or s.
636.11 (6) (c) or 38.04 (7m).
AB100,606,11 7(2) By April 10, 1996 1998, and annually thereafter, the Wisconsin Association
8of Independent Colleges and Universities shall develop and submit to the education
9commission
board for its review under sub. (1) a proposed formula for the awarding
10of grants under s. 39.30 for the upcoming academic year to students enrolled at
11private institutions of higher education.
AB100, s. 1225 12Section 1225. 39.29 of the statutes is created to read:
AB100,606,14 1339.29 Executive secretary. An executive secretary shall be appointed by the
14governor to serve at his or her pleasure.
AB100, s. 1226 15Section 1226. 39.30 (2) (e) of the statutes is amended to read:
AB100,606,1916 39.30 (2) (e) The department board may not make a grant to a student if the
17department board receives a certification under s. 49.855 (7) that the student is
18delinquent in child support or maintenance payments or owes past support, medical
19expenses or birth expenses.
AB100, s. 1227 20Section 1227. 39.30 (2) (f) of the statutes is amended to read:
AB100,606,2321 39.30 (2) (f) No grants may be awarded under this section unless the applicable
22formula submitted under s. 39.285 (2) is approved or modified by the education
23commission
board under s. 39.285 (1).
AB100, s. 1228 24Section 1228. 39.30 (3) (e) of the statutes is amended to read:
AB100,607,3
139.30 (3) (e) The department board shall establish criteria for the treatment
2of financially independent students which are consistent with procedures in pars. (a)
3to (d).
AB100, s. 1229 4Section 1229. 39.30 (3) (f) of the statutes is amended to read:
AB100,607,85 39.30 (3) (f) The department board may not make initial awards of grants
6under this section for an academic year in an amount that exceeds 122% of the
7amount appropriated under s. 20.235 (1) (b) for the fiscal year in which the grant may
8be paid.
AB100, s. 1230 9Section 1230. 39.30 (4) of the statutes is amended to read:
AB100,607,1310 39.30 (4) Forms. The department board shall prescribe, furnish and make
11available, at locations in the state convenient to the public, application forms for
12grants under this section. Upon request, the department board shall advise and
13assist applicants in making out such forms.
AB100, s. 1231 14Section 1231. 39.31 (intro.) of the statutes is amended to read:
AB100,607,18 1539.31 Determination of student costs. (intro.) In determining a student's
16total cost of attending a postsecondary institution for the purpose of calculating the
17amount of a grant under s. 39.30, 39.38, 39.435 or 39.44, the department board shall
18include the following:
AB100, s. 1232 19Section 1232. 39.31 (2) of the statutes is amended to read:
AB100,607,2020 39.31 (2) Miscellaneous expenses, as determined by the department board.
AB100, s. 1233 21Section 1233. 39.31 (3) of the statutes is amended to read:
AB100,607,2222 39.31 (3) The cost of child care, as determined by the department board.
AB100, s. 1234 23Section 1234. 39.32 (2) (intro.) of the statutes is amended to read:
AB100,607,2424 39.32 (2) (intro.) The department board shall:
AB100, s. 1235 25Section 1235. 39.32 (3) (intro.) of the statutes is amended to read:
AB100,608,2
139.32 (3) (intro.) The department board may make and authorize loans to be
2made to students if:
AB100, s. 1236 3Section 1236. 39.32 (3) (b) of the statutes is amended to read:
AB100,608,64 39.32 (3) (b) The student's eligibility for a loan is certified to the department
5board by the institution of higher education in which the student is enrolled or has
6been accepted for enrollment.
AB100, s. 1237 7Section 1237. 39.32 (3) (g) of the statutes is amended to read:
AB100,608,108 39.32 (3) (g) The student is not in default on any previous loan or the
9department board has determined that the student has made satisfactory
10arrangements to repay the defaulted loan.
AB100, s. 1238 11Section 1238. 39.32 (5) of the statutes is amended to read:
AB100,608,1412 39.32 (5) The department board may collect any loans made or authorized to
13be made by the department board pursuant to this section or made prior to July 1,
141966, under s. 49.42, 1963 stats.
AB100, s. 1239 15Section 1239. 39.32 (6) of the statutes is amended to read:
AB100,608,2516 39.32 (6) The department board shall satisfy the loan of any student who
17obtained a loan under this section or s. 39.023, 1965 stats., between July 1, 1966, and
18December 15, 1968, where such student died or dies after July 1, 1966, and before
19completing repayment thereof, and shall write off the balance of principal and
20interest owing on the loan on the date it received confirmation of such student's
21death. Obligation to repay such a loan shall terminate on the date of the student's
22death and any payments made thereon to the department board after such date shall
23be refunded to the payor or the payor's heirs, executor or administrator from the
24appropriation in s. 20.235 (2) (ba) upon receipt by the department board of an
25application for refund.
AB100, s. 1240
1Section 1240. 39.32 (7) of the statutes is amended to read:
AB100,609,62 39.32 (7) The department board may write off defaulted student loans made
3pursuant to this section or made prior to July 1, 1966, under s. 49.42, 1963 stats.,
4from moneys other than advances from the investment board originally
5appropriated for student loans, and from moneys other than moneys resulting from
6assignment, sale or conveyance of student loans.
AB100, s. 1241 7Section 1241. 39.32 (8) of the statutes is amended to read:
AB100,609,118 39.32 (8) The department board may use up to $150,000 annually of student
9revenue bond proceeds for the purpose of consolidating loans for needy students who
10have a state direct loan and one or more federally guaranteed student loans from one
11or more private lenders.
AB100, s. 1242 12Section 1242. 39.32 (10) of the statutes is amended to read:
AB100,609,1913 39.32 (10) (a) The department board may enter into contractual agreements
14with lenders in this state and lenders in other states which grant loans to residents
15of this state, and with institutions and agencies wherein the department board may
16provide and furnish to such lenders, institutions and agencies administrative
17services related to the operation of any programs involving the granting of loans to
18students including but not limited to any and all services and functions related to the
19granting, administering and collecting of any loans made to students.
AB100,610,220 (b) The department board shall have all powers as that are reasonably
21appropriate to the provision of such services and the performance of such contracts
22and may include charges or fees to be paid by the lenders, institutions and agencies
23to the department board for the provision of such administrative services or any
24services or activities related to the collection of any student loans for which the
25department board may become responsible by operation of law or by contractual

1agreements under this paragraph, but such charges or fees, before being instituted
2by the department board, shall be approved by the secretary of administration.
AB100, s. 1243 3Section 1243. 39.32 (11) of the statutes is amended to read:
AB100,610,114 39.32 (11) (a) In lieu of the procedure under ch. 812, the department board, on
5behalf of the corporation under s. 39.33, or the corporation, on its own behalf, may
6certify the department of administration to deduct money from a state employe's
7earnings. The department board shall specify an amount, not to exceed 25% of the
8employe's disposable earnings, as defined in s. 812.30 (6), to be deducted on a
9continuing basis until the amount certified by the department board or corporation
10has been paid. The department of administration shall remit moneys deducted to
11the department board or the corporation.
AB100,610,2012 (b) The procedure in this section may be used only if the amount owed to the
13department board or corporation is reduced to a judgment. At least 30 days prior to
14certification, the department board or corporation shall notify the debtor under s.
15879.05 (2) or (3) of the intent to certify the debt to the department of administration
16and of the debtor's right to a contested case hearing before the department board
17under s. 227.42. If the debtor requests a hearing within 20 days after receiving
18notice, the department board shall notify the department of administration which
19shall not make deductions under par. (a) until a decision is reached under s. 227.47
20or the case is otherwise concluded.
AB100,610,2221 (c) The department of administration shall prescribe the manner and form for
22certification of debts by the department board or corporation under this subsection.
AB100, s. 1244 23Section 1244. 39.325 of the statutes is amended to read:
AB100,611,4 2439.325 Wisconsin health education loan program. (1) There is
25established, to be administered by the department board, a Wisconsin health

1education loan program under P.L. 94-484, on July 29, 1979, in order to provide
2financial aid to medical and dentistry students enrolled in the university of
3Wisconsin medical school, the medical college of Wisconsin or Marquette university
4school of dentistry.
AB100,611,14 5(2) The department board shall lend to students who qualify under sub. (1) any
6moneys appropriated or authorized through the issuance of revenue obligations. The
7department board shall require a student borrowing moneys under this section to
8pay interest while in medical or dental school and during his or her residency
9training at the rate of at least 3% per year on the sum of the principal amount of the
10student's obligation and the accumulated interest, unless federal law provides
11otherwise as a condition of guaranteeing the loan. Principal and interest payable on
12maturing revenue obligations shall, when necessary, be paid from funded reserves,
13authorized under subch. II of ch. 18, or from moneys made available under chapter
1420, laws of 1981
, section 2022 (1).
AB100,611,19 15(3) The department board shall promulgate rules and establish standards and
16methods of determining the amounts of loans, rates of interest and other
17administrative procedures consistent with P.L. 94-484, on July 29, 1979. The rates
18of interest shall be set as low as possible, but shall remain sufficient to cover all costs
19of the program under this section.
AB100, s. 1245 20Section 1245. 39.33 of the statutes is amended to read:
AB100,611,25 2139.33 Guaranteed student loan program. (1) The department board may
22organize and maintain a nonstock corporation under ch. 181 to provide for a
23guaranteed student loan program in this state under P.L. 89-287 and P.L. 89-329
24as may from time to time be amended. The department board may make use of and
25pay for the use of the facilities and services of such corporation.
AB100,612,6
1(2) The department board may provide administrative services for the
2nonstock corporation with which the department board has entered into a
3contractual agreement for purposes of providing for a guaranteed student loan
4program in this state. Services provided under this section shall be in accordance
5with the decision of the department board as to the type and scope of services
6requested and the civil service range of any employe assigned to them.
AB100,612,10 7(3) The department board or the legislature or any person delegated by the
8legislature may inspect and examine or cause an inspection and examination of all
9records relating to all programs that are, or are to be, administered under
10contractual agreement between the department board and the corporation.
AB100, s. 1246 11Section 1246. 39.34 of the statutes is amended to read:
AB100,612,14 1239.34 Medical student loan program. Notwithstanding s. 39.34, 1991
13stats., the department board shall terminate on August 12, 1993, any obligation to
14repay a loan awarded under this section.
AB100, s. 1247 15Section 1247. 39.35 of the statutes is amended to read:
AB100,612,19 1639.35 Repayment of scholarships for teachers in educationally
17disadvantaged areas.
Notwithstanding s. 39.35, 1969 stats., and s. 39.35, 1991
18stats., the department board shall terminate on August 12, 1993, any obligation to
19repay a student aid award made under this section.
AB100, s. 1248 20Section 1248. 39.36 of the statutes is amended to read:
AB100,612,24 2139.36 Repayment of stipends for teachers of the handicapped.
22Notwithstanding s. 39.36, 1969 stats., s. 39.37 (3) (b), 1969 stats., and s. 39.36, 1991
23stats., the department board shall terminate on August 12, 1993, any obligation to
24repay a stipend awarded under this section.
AB100, s. 1249 25Section 1249. 39.37 (2) of the statutes is amended to read:
AB100,613,7
139.37 (2) There is created a separate nonlapsible trust fund designated the
2student loan repayment fund consisting of all revenues received in repayment of
3student loans funded under this section, and any other revenues dedicated to it by
4the department board. The department board may pledge revenues received or to
5be received by the fund to secure revenue obligations issued under this section, and
6shall have all other powers necessary and convenient to distribute the proceeds of
7the revenue obligations and loan repayments in accordance with subch. II of ch. 18.
AB100, s. 1250 8Section 1250. 39.37 (3) of the statutes is amended to read:
AB100,613,139 39.37 (3) All student loans funded with revenue obligations issued under this
10section shall be fully guaranteed as to repayment of principal and interest from
11among a nonstock corporation organized under s. 39.33 (1), the United States, its
12agencies or instrumentalities. The department board may enter into agreements
13necessary to affect this guaranty.
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