HF 2535

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/02/2023 02:13pm

A bill for an act
relating to education; providing grants to aspiring educators; establishing an
endowment; appropriating money; amending Minnesota Statutes 2022, sections
290.0132, by adding a subdivision; 290.091, subdivision 2, as amended; proposing
coding for new law in Minnesota Statutes, chapter 127A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [127A.37] TEACHER PIPELINE ENDOWMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose and goals. new text end

new text begin The purpose of the teacher pipeline program is to
encourage and support aspiring teachers, especially individuals interested in teaching in
teacher shortage areas.
new text end

new text begin Subd. 2. new text end

new text begin Endowment established. new text end

new text begin (a) The commissioner of management and budget
must establish a permanent endowment account in the state treasury. This endowment must
be funded through appropriations made by the state. The endowment may also receive
private contributions, gifts, or grants under section 16A.013. Any interest or profit accruing
from investment of these sums is credited to the account.
new text end

new text begin (b) Investment management fees incurred by the State Board of Investment may be
reimbursed from the account.
new text end

new text begin (c) Annual income derived from the investment of principal in the account is appropriated
from the account to the commissioner of the Office of Higher Education. Up to five percent
of the annual income is appropriated to the commissioner of the Office of Higher Education
for administrative expenses associated with awarding grants to aspiring teachers. The
remaining funds must be used to provide assistance to individuals seeking to become teachers
in Minnesota public schools. For the purposes of this section, "income" is the annual amount
of interest on debt securities and dividends on equity securities.
new text end

new text begin (d) Any gains or losses from the sale of securities must be added to the principal balance
in the account.
new text end

new text begin (e) Money from this account must not be used for any purposes except those described
in this section, and no other money from this account may be transferred to any other account.
new text end

new text begin Subd. 3. new text end

new text begin Plan developed. new text end

new text begin The commissioner of education and the commissioner of the
Office of Higher Education must jointly adopt a plan for the Office of Higher Education to
award grants to aspiring teachers. The plan must:
new text end

new text begin (1) prioritize grant awards to applicants pursuing teacher licensure in a content area with
an identified shortage, including science, mathematics, special education, and school
counseling; and
new text end

new text begin (2) to the extent possible, distribute grant awards in a manner to ensure geographical
representation throughout the state.
new text end

new text begin Subd. 4. new text end

new text begin Grant amounts. new text end

new text begin The commissioner of the Office of Higher Education shall
make grant awards according to the plan developed in subdivision 3. The maximum amount
of a grant under this section is $5,000 per year.
new text end

new text begin Subd. 5. new text end

new text begin Applicant eligibility. new text end

new text begin (a) A person is eligible for a grant under this section if
the person:
new text end

new text begin (1) is a Minnesota resident;
new text end

new text begin (2) is enrolled in a Professional Educator Licensing and Standards Board-approved
teacher preparation program at a Minnesota postsecondary institution;
new text end

new text begin (3) is in good academic standing and making satisfactory academic progress as defined
under section 136A.101, subdivision 10;
new text end

new text begin (4) applies for the grant in the form and manner specified by the commissioner of the
Office of Higher Education; and
new text end

new text begin (5) signs a contract agreeing to fulfill the employment obligation under subdivision 6.
new text end

new text begin (b) A person may receive an annual grant award no more than four times.
new text end

new text begin Subd. 6. new text end

new text begin Employment obligation. new text end

new text begin (a) Beginning within six months of the completion
of the academic program for which the grant was awarded, a grant recipient must be
employed in a teaching position in Minnesota for no less than five years.
new text end

new text begin (b) A recipient who has completed the academic program for which the grant was
awarded, but who has not yet fulfilled the total employment obligation, must annually verify,
in a form and manner specified by the commissioner of the Office of Higher Education,
that the recipient is employed in a position that fulfills the employment obligation.
new text end

new text begin (c) If a recipient fails to meet the employment obligation, the commissioner of the Office
of Higher Education must convert the recipient's total grant award to a student loan and
collect from the participant the total grant amount awarded. All sums recovered under this
paragraph must be deposited into the state treasury and credited to the endowment established
in subdivision 2.
new text end

new text begin (d) The commissioner of the Office of Higher Education may waive or defer the
employment obligation for a grant recipient who is placed on an unrequested leave of absence
by the recipient's school district, or for other circumstances involving extreme hardship.
Any requirement to fulfill the employment obligation cancels upon the death or permanent
and total disability of the grant recipient.
new text end

new text begin Subd. 7. new text end

new text begin Grant awards not considered income. new text end

new text begin For the purposes of this subdivision,
"subtraction" has the meaning given in section 290.0132, subdivision 1, and the rules in
that subdivision apply for this subdivision. The definitions in section 290.01 apply to this
subdivision. A grant amount received under this section is a subtraction.
new text end

new text begin Subd. 8. new text end

new text begin Income exclusion; other state programs. new text end

new text begin (a) Notwithstanding any law to the
contrary, a grant received under this section must not be considered income, assets, or
personal property for purposes of determining eligibility or recertifying eligibility for:
new text end

new text begin (1) child care assistance programs under chapter 119B or Head Start under the federal
Improving Head Start for School Readiness Act of 2007;
new text end

new text begin (2) general assistance, Minnesota supplemental aid, and food support under chapter
256D;
new text end

new text begin (3) housing support under chapter 256I;
new text end

new text begin (4) the Minnesota family investment program and diversionary work program under
chapter 256J;
new text end

new text begin (5) MinnesotaCare under chapter 256L; and
new text end

new text begin (6) economic assistance programs under chapter 256P.
new text end

new text begin (b) The commissioner of human services must not consider a grant received under this
section as income or assets under section 256B.056, subdivision 1a, paragraph (a); 3; or 3c,
or for persons with eligibility determined under section 256B.057, subdivision 3, 3a, or 3b.
new text end

new text begin Subd. 9. new text end

new text begin Other uses; teacher retention. new text end

new text begin Subject to the availability of funds, the
commissioner of education and commissioner of the Office of Higher Education may jointly
establish a grant program administered by the commissioner of education to subsidize
teacher retention programs under section 122A.70.
new text end

Sec. 2.

Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:

new text begin Subd. 34. new text end

new text begin Teacher pipeline program. new text end

new text begin Any amount received under section 127A.37 is
a subtraction.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2022.
new text end

Sec. 3.

Minnesota Statutes 2022, section 290.091, subdivision 2, as amended by Laws
2023, chapter 1, section 18, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given.

(a) "Alternative minimum taxable income" means the sum of the following for the taxable
year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(1)(D) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative minimum
taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a person with a disability;

(3) for depletion allowances computed under section 613A(c) of the Internal Revenue
Code, with respect to each property (as defined in section 614 of the Internal Revenue Code),
to the extent not included in federal alternative minimum taxable income, the excess of the
deduction for depletion allowable under section 611 of the Internal Revenue Code for the
taxable year over the adjusted basis of the property at the end of the taxable year (determined
without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the amount
of the tax preference for intangible drilling cost under section 57(a)(2) of the Internal Revenue
Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the amount
of interest income as provided by section 290.0131, subdivision 2;

(6) the amount of addition required by section 290.0131, subdivisions 9, 10, and 16;

(7) the deduction allowed under section 199A of the Internal Revenue Code, to the extent
not included in the addition required under clause (6); and

(8) to the extent not included in federal alternative minimum taxable income, the amount
of foreign-derived intangible income deducted under section 250 of the Internal Revenue
Code;

less the sum of the amounts determined under the following:

(i) interest income as defined in section 290.0132, subdivision 2;

(ii) an overpayment of state income tax as provided by section 290.0132, subdivision
3, to the extent included in federal alternative minimum taxable income;

(iii) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as defined
in section 163(d)(4) of the Internal Revenue Code. Interest does not include amounts deducted
in computing federal adjusted gross income;

(iv) amounts subtracted from federal taxable or adjusted gross income as provided by
section 290.0132, subdivisions 7, 9 to 15, 17, 21, 24, 26 to 29, deleted text begin and deleted text end 31 new text begin , and 34 new text end ;

(v) the amount of the net operating loss allowed under section 290.095, subdivision 11,
paragraph (c); and

(vi) the amount allowable as a Minnesota itemized deduction under section 290.0122,
subdivision 7.

In the case of an estate or trust, alternative minimum taxable income must be computed
as provided in section 59(c) of the Internal Revenue Code, except alternative minimum
taxable income must be increased by the addition in section 290.0131, subdivision 16.

(b) "Investment interest" means investment interest as defined in section 163(d)(3) of
the Internal Revenue Code.

(c) "Net minimum tax" means the minimum tax imposed by this section.

(d) "Regular tax" means the tax that would be imposed under this chapter (without regard
to this section and section 290.032), reduced by the sum of the nonrefundable credits allowed
under this chapter.

(e) "Tentative minimum tax" equals 6.75 percent of alternative minimum taxable income
after subtracting the exemption amount determined under subdivision 3.

Sec. 4. new text begin APPROPRIATION; TEACHER ENDOWMENT FUND.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal years
designated.
new text end

new text begin Subd. 2. new text end

new text begin Teacher endowment fund. new text end

new text begin For transfer to the commissioner of management
and budget for the teacher endowment fund established under section 1:
new text end

	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2024 new text end
	new text begin $ new text end	new text begin ....... new text end	new text begin ..... new text end	new text begin 2025 new text end