ENTITLED An Act to revise criteria for the South Dakota freedom scholarship.

Be it enacted by the Legislature of the State of South Dakota:

Section 1. That § 13-55A-15 be AMENDED:

13-55A-15. The agreement required in section 9 of SL 2021, ch 83, must provide for a governing board. The board must consist of five members appointed by the Governor, for a term of five years, except that the initial appointments are for periods of one, two, three, four, and five years. The Governor shall appoint one member as the temporary chair of the board. The board shall elect a chair at its first meeting. A majority of the board must be present personally or electronically to constitute a quorum.

The board shall provide eligible South Dakota students, as described in § 13-55A-16, with a needs-based scholarship to attend an eligible postsecondary institution, as described in § 13-55A-17. The distributable income of the South Dakota Freedom Scholarship endowment must be expended annually to benefit eligible South Dakota students. Any excess earnings or other income to the endowment must be added to the endowment principal. The board shall determine the manner and method of disbursement of the needs-based scholarships, based upon the undergraduate full-time, degree-seeking, South Dakota resident enrollments of each participating, eligible institution, as described in § 13-55A-17.

Section 2. That § 13-55A-16 be AMENDED:

13-55A-16. A student is eligible for a South Dakota Freedom Scholarship, pursuant to § 13-55A-15, if the student:

(1) Is a state resident for at least one year prior to application for the scholarship;

(2) Attends an eligible institution in pursuit of a baccalaureate degree;

(3) Establishes financial need, as determined by the eligible institution and the board described in § 13-55A-15;

(4) Commits, in writing, to live and work in this state for a period of three years after graduation, or following military service or graduate education, if applicable;

(5) Maintains a GPA of at least 2.0 while enrolled at an eligible institution; and

(6) Agrees, through a promissory note or other agreement, that failure to comply with this section results in the scholarship being converted to an interest-bearing loan.

A student is eligible to receive a scholarship under this section for five years. If a student fails to complete a baccalaureate degree within five years from the date of initial attendance, the board may convert any amounts awarded to the student into an interest-bearing loan.

Notwithstanding the provisions of this section, the board may temporarily or permanently waive the requirements of this section if factors, as determined by the board, prevent a student from satisfying the requirements in this section.

Section 3. That § 13-55A-17 be AMENDED:

13-55A-17. For purposes of §§ 13-55A-15 to 13-55A-17, inclusive, an eligible institution is an accredited public or nonpublic nonprofit postsecondary institution, including any tribal college, with a primary physical campus in this state, that:

(1) Elects to participate in the scholarship program provided in §§ 13-55A-15 to 13-55A-17, inclusive; and

(2) Offers a baccalaureate degree.

An Act to revise criteria for the South Dakota freedom scholarship.

I certify that the attached Act originated in the: Senate as Bill No. 154 Secretary of the Senate President of the Senate Attest: Secretary of the Senate Speaker of the House Attest: Chief Clerk Senate Bill No. 154 File No. ____ Chapter No. ______

Received at this Executive Office this _____ day of _____________, 2022 at ____________M. By for the Governor The attached Act is hereby approved this ________ day of ______________, A.D., 2022 Governor STATE OF SOUTH DAKOTA, ss. Office of the Secretary of State Filed ____________, 2022 at _________ o'clock __M. Secretary of State By Asst. Secretary of State