SF 1011

1st Engrossment - 93rd Legislature (2023 - 2024) Posted on 04/01/2024 01:49pm

A bill for an act
relating to higher education; providing for certain policy changes to postsecondary
attainment goals, student financial aid, institutional licensure provisions, and
institutional grant programs; amending Minnesota Statutes 2022, sections 135A.012;
136A.121, subdivisions 2, 18; 136A.1241, subdivision 5; 136A.1701, subdivision
11; 136A.62, subdivision 3, by adding a subdivision; 136A.653, by adding a
subdivision; 136A.833; 136A.91, subdivision 1; repealing Minnesota Rules, parts
4830.0400, subpart 1; 4880.2500.

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

Section 1.

Minnesota Statutes 2022, section 135A.012, is amended to read:

135A.012 HIGHER EDUCATION ATTAINMENT GOAL.

Subdivision 1.

Purpose.

This section sets a goal for postsecondary education new text begin and
workforce training credential new text end attainment for Minnesota residents.

Subd. 2.

Postsecondary credentials.

The number of Minnesota residents ages 25 to 44
years who hold postsecondary deleted text begin degrees or certificates deleted text end new text begin or industry-recognized credentials new text end
should be increased to at least 70 percent by 2025.

Subd. 3.

Rights not created.

The attainment goal in this section is not to the exclusion
of any other goals and does not confer a right or create a claim for any person.

Subd. 4.

Data development and analyses.

The Office of Higher Education shall work
with the state demographer's office to measure progress towards the attainment of the goal
specified in subdivision 2. The United States Census Bureau data shall be used to calculate
the number of individuals in the state who hold a postsecondary degree. The Office of
Higher Education, demographer's office, deleted text begin and deleted text end the Department of Employment and Economic
Development new text begin , and the Department of Labor and Industry new text end shall develop a methodology to
estimate the number of individuals that hold a deleted text begin certificate deleted text end new text begin credential new text end awarded by a
postsecondary institution new text begin or recognized by an industry authority new text end as their highest deleted text begin educational deleted text end
credential using data available at the time that the analysis is completed.

Subd. 5.

Reporting.

(a) Beginning in 2016 and every year thereafter, the Office of
Higher Education, in collaboration with the state demographer's office, shall, by October
15, report to the chairs and ranking minority members of the legislative committees with
primary jurisdiction over higher education policy and finance on the progress towards
meeting or exceeding the goal of this section.

(b) Meeting and maintaining the goal of 70 percent of Minnesota residents ages 25 to
44 years holding a postsecondary deleted text begin degree or certificate deleted text end new text begin or industry-recognized credential new text end
will likely be difficult without achieving attainment rates that are comparable across all race
and ethnicity groups. The Office of Higher Education shall utilize benchmarks of 30 percent
or higher and 50 percent or higher to report progress by race and ethnicity groups toward
meeting the educational attainment rate goal of 70 percent.

Sec. 2.

Minnesota Statutes 2022, section 136A.121, subdivision 2, is amended to read:

Subd. 2.

Eligibility for grants.

(a) An applicant is eligible to be considered for a grant,
regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections
136A.095 to 136A.131 if the office finds that the applicant:

(1) is a resident of the state of Minnesota;

(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
and has met all requirements for admission as a student to an eligible college or technical
college of choice as defined in sections 136A.095 to 136A.131;

(3) has met the financial need criteria established in Minnesota Rules;

(4) is not in default, as defined by the office, of any federal or state student educational
loan; deleted text begin and
deleted text end

(5) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages deleted text begin . deleted text end new text begin ; and
new text end

new text begin (6) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C.
new text end

(b) A student is entitled to an additional semester or the equivalent of grant eligibility
if the student withdraws from enrollment:

(1) for active military service after December 31, 2002, because the student was ordered
to active military service as defined in section 190.05, subdivision 5b or 5c;

(2) for a serious health condition, while under the care of a medical professional, that
substantially limits the student's ability to complete the term; or

(3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.

Sec. 3.

Minnesota Statutes 2022, section 136A.121, subdivision 18, is amended to read:

Subd. 18.

Data.

(a) An eligible institution new text begin whose students are eligible to receive funding
under sections 136A.095 to 136A.246 new text end must provide to the office data on student enrollment
and federal and state financial aid.

(b) An institution or its agent must provide to the office aggregate and distributional
financial or other data as determined by the commissioner that is directly related to the
responsibilities of the office under this chapter. The commissioner may only request aggregate
and distributional data after establishing and consulting with a data advisory task force to
determine the need, content, and detail of the information. Data provided by nonpublic
institutions under this paragraph is considered nonpublic data under chapter 13.

Sec. 4.

Minnesota Statutes 2022, section 136A.1241, subdivision 5, is amended to read:

Subd. 5.

Foster grant amount; payment; opt-out.

(a) Each student shall be awarded
a foster grant based on the federal need analysis. Applicants are encouraged to apply for all
other sources of financial aid. The amount of the foster grant must be equal to the applicant's
recognized cost of attendance after deducting:

(1) the student aid index as calculated by the federal need analysis;

(2) the amount of a federal Pell Grant award for which the applicant is eligible;

(3) the amount of the state grant;

(4) the Federal Supplemental Educational Opportunity Grant;

(5) the sum of all Tribal scholarships;

(6) the amount of any other state and federal gift aid;

(7) the Education and Training Voucher Program;

(8) extended foster care benefits under section 260C.451;

(9) the amount of any private grants or scholarships, excluding grants and scholarships
provided by the private institution of higher education in which the eligible student is
enrolled; and

(10) for public institutions, the sum of all institutional grants, scholarships, tuition
waivers, and tuition remission amounts.

(b) The foster grant shall be paid directly to the eligible institution where the student is
enrolled.

(c) An eligible private institution may opt out of participating in the foster grant program
established under this section. To opt out, the institution shall provide notice to the office
by deleted text begin September deleted text end new text begin March new text end 1 for the next academic year. new text begin An institution that opts out of
participating, but participated in the program a previous year, must hold harmless currently
enrolled recipients by continuing to provide the benefit under paragraph (d) as long as the
student remains eligible.
new text end

(d) An eligible private institution that does not opt out under paragraph (c) and accepts
the student's application to attend the institution must provide institutional grants,
scholarships, tuition waivers, or tuition remission in an amount equal to the difference
between:

(1) the institution's cost of attendance as calculated under subdivision 4, paragraph (b),
clause (1); and

(2) the sum of the foster grant under this subdivision and the sum of the amounts in
paragraph (a), clauses (1) to (9).

(e) An undergraduate student who is eligible may apply for and receive a foster grant
in any year of undergraduate study unless the student has obtained a baccalaureate degree
or deleted text begin previously has been enrolled full time as defined in section 136A.101, subdivision 7a,
or the equivalent for eight semesters or the equivalent, or received a foster grant for five
years, whichever occurs first. A foster grant must not be awarded to a student for more than
three years for a two-year degree, certificate, or diploma, or five years deleted text end new text begin received foster grant
funds for a period of ten full-time semesters or the equivalent new text end for a four-year undergraduate
degree. new text begin A foster grant student enrolled in a two-year degree, certificate, or diploma program
may apply for and receive a foster grant in any year of undergraduate study unless the
student has obtained a baccalaureate degree or received foster grant funds for a period of
six full-time semesters or the equivalent.
new text end

(f) Foster grants may be awarded to an eligible student for four quarters, three semesters,
or the equivalent during the course of a single fiscal year. In calculating the award amount,
the office must use the same calculation it would for any other term.

Sec. 5.

Minnesota Statutes 2022, section 136A.1701, subdivision 11, is amended to read:

Subd. 11.

Data.

(a) An eligible institution new text begin whose students are eligible to receive funding
under sections 136A.15 to 136A.1795 and licensed or registered under sections 136A.61
to 136A.834 new text end must provide to the office data on student enrollment and federal and state
financial aid.

(b) An institution or its agent must provide to the office aggregate and distributional
financial or other data as determined by the commissioner that is directly related to the
responsibilities of the office under this chapter. The commissioner may only request aggregate
and distributional data after establishing and consulting with a data advisory task force to
determine the need, content, and detail of the information. Data provided by nonpublic
institutions under this paragraph is considered nonpublic data under chapter 13.

Sec. 6.

Minnesota Statutes 2022, section 136A.62, subdivision 3, is amended to read:

Subd. 3.

School.

"School" means:

(1) new text begin a Tribal college;
new text end

new text begin (2) new text end any partnership, company, firm, society, trust, association, corporation, or any
combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary
education institution; (ii) is, owns, or operates a private, for-profit postsecondary education
institution; or (iii) provides a postsecondary instructional program or course leading to a
degree whether or not for profit;

deleted text begin (2) deleted text end new text begin (3) new text end any public or private postsecondary educational institution located in another
state or country which offers or makes available to a Minnesota resident any course, program
or educational activity which does not require the leaving of the state for its completion; or

deleted text begin (3) deleted text end new text begin (4) new text end any individual, entity, or postsecondary institution located in another state that
contracts with any school located within the state of Minnesota for the purpose of providing
educational programs, training programs, or awarding postsecondary credits or continuing
education credits to Minnesota residents that may be applied to a degree program.

Sec. 7.

Minnesota Statutes 2022, section 136A.62, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Tribal college. new text end

new text begin "Tribal college" means an institution of higher education
located in this state that is formally controlled by or has been formally sanctioned or chartered
by the governing body of a federally recognized Indian Tribe, or a combination of federally
recognized Indian Tribes. Tribal college does not include any institution or campus subject
to the jurisdiction of the Board of Trustees of the Minnesota State Colleges and Universities
or the Board of Regents of the University of Minnesota.
new text end

Sec. 8.

Minnesota Statutes 2022, section 136A.653, is amended by adding a subdivision
to read:

new text begin Subd. 1b. new text end

new text begin Tribal colleges. new text end

new text begin A Tribal college is exempted from the provisions of section
136A.61 to 136A.71. A Tribal college that is exempt may voluntarily waive its exception
by registering under section 136A.63. Upon registration, the Tribal college is subject to all
applicable requirements of sections 136A.61 to 136A.71.
new text end

Sec. 9.

Minnesota Statutes 2022, section 136A.833, is amended to read:

136A.833 EXEMPTIONS.

Subdivision 1.

Application for exemptions.

A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 for the school and all of its programs or some
of its programs must apply to the office to establish that the school new text begin or program new text end meets the
requirements of an exemption. An exemption new text begin for the school or program new text end expires two years
from the date of approval or when a school adds a new program or makes a modification
equal to or greater than 25 percent to an existing educational program. If a school is
reapplying for an exemption, the application must be submitted to the office 90 days before
the current exemption expires. This exemption shall not extend to any school that uses any
publication or advertisement that is not truthful and gives any false, fraudulent, deceptive,
inaccurate, or misleading impressions about the school or its personnel, programs, services,
or occupational opportunities for its graduates for promotion and student recruitment.
Exemptions denied under this section are subject to appeal under section deleted text begin 136A.65,
subdivision 8, paragraph (c) deleted text end new text begin 136A.829 new text end . If an appeal is initiated, the denial of the exemption
is not effective until the final determination of the appeal, unless immediate effect is ordered
by the court.

Subd. 2.

Exemption reasons.

Sections 136A.821 to 136A.832 shall not apply to the
following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections 136A.61 to 136A.71;

new text begin (3) postsecondary institutions exempt from registration under sections 136A.653,
subdivisions 1a, 2, 3, and 3a; 136A.657; and 136A.658;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end private career schools of nursing accredited by the state Board of Nursing or an
equivalent public board of another state or foreign country;

deleted text begin (4) deleted text end new text begin (5) new text end private schools complying with the requirements of section 120A.22, subdivision
4;

deleted text begin (5) deleted text end new text begin (6) new text end courses taught to students in deleted text begin a valid deleted text end new text begin an new text end apprenticeship program new text begin registered by the
United States Department of Labor or Minnesota Department of Labor and new text end taught by or
required by a trade union;

deleted text begin (6) deleted text end new text begin (7) new text end private career schools exclusively engaged in training physically or mentally
disabled persons for the state of Minnesota;

deleted text begin (7) deleted text end new text begin (8) new text end private career schools licensed by boards authorized under Minnesota law to
issue licenses new text begin for training programs new text end except private career schools required to obtain a private
career school license due to the use of "academy," "institute," "college," or "university" in
their names;

deleted text begin (8) deleted text end new text begin (9) new text end private career schools and educational programs, or training programs, contracted
for by persons, firms, corporations, government agencies, or associations, for the training
of their own employees, for which no fee is charged the employee;

deleted text begin (9) deleted text end new text begin (10) new text end private career schools engaged exclusively in the teaching of purely avocational,
recreational, or remedial subjects new text begin , including adult basic education, new text end as determined by the
office except private career schools required to obtain a private career school license due
to the use of "academy," "institute," "college," or "university" in their names unless the
private career school used "academy" or "institute" in its name prior to August 1, 2008;

deleted text begin (10) deleted text end new text begin (11) new text end classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

deleted text begin (11) deleted text end new text begin (12) new text end programs in the fine arts provided by organizations exempt from taxation under
section 290.05 and registered with the attorney general under chapter 309. For the purposes
of this clause, "fine arts" means activities resulting in artistic creation or artistic performance
of works of the imagination which are engaged in for the primary purpose of creative
expression rather than commercial sale or employment. In making this determination the
office may seek the advice and recommendation of the Minnesota Board of the Arts;

deleted text begin (12) deleted text end new text begin (13) new text end classes, courses, or programs intended to fulfill the continuing education
requirements for licensure or certification in a profession, that have been approved by a
legislatively or judicially established board or agency responsible for regulating the practice
of the profession new text begin or by an industry-specific certification entity new text end , and that are offered
exclusively to deleted text begin an individual practicing the profession deleted text end new text begin individuals with the professional
licensure or certification new text end ;

deleted text begin (13) deleted text end new text begin (14) new text end classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing deleted text begin and occupational deleted text end new text begin ,
certification, or new text end entrance examinations;

deleted text begin (14) deleted text end new text begin (15) new text end classes, courses, or programs providing 16 or fewer clock hours of instruction
deleted text begin that are not part of the curriculum for an occupation or entry level employment except
private career schools required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in their names deleted text end ;

deleted text begin (15) deleted text end new text begin (16) new text end classes, courses, or programs providing instruction in personal development,
modeling, or acting;

deleted text begin (16) training or instructional programs, in which one instructor teaches an individual
student, that are not part of the curriculum for an occupation or are not intended to prepare
a person for entry level employment;
deleted text end

(17) private career schools with no physical presence in Minnesota, as determined by
the office, engaged exclusively in offering distance instruction that are located in and
regulated by other states or jurisdictions if the distance education instruction does not include
internships, externships, field placements, or clinical placements for residents of Minnesota;
and

(18) private career schools providing exclusively training, instructional programs, or
courses where tuition, fees, and any other charges for a student to participate do not exceed
$100.

Sec. 10.

Minnesota Statutes 2022, section 136A.91, subdivision 1, is amended to read:

Subdivision 1.

Grants.

(a) The Office of Higher Education must establish a competitive
grant program for postsecondary institutions to expand concurrent enrollment opportunities.
To the extent that there are qualified applicants, the commissioner of the Office of Higher
Education shall distribute grant funds to ensure:

(1) eligible students throughout the state have access to concurrent enrollment programs;
and

(2) preference for grants that expand programs is given to programs already at capacity.

(b) The commissioner may award grants under this section to postsecondary institutions
for any of the following purposes:

(1) to develop new concurrent enrollment courses under section 124D.09, subdivision
10, that satisfy the elective standard for career and technical education; or

(2) to expand the existing concurrent enrollment programs already offered by the
postsecondary institution new text begin and support the preparation, recruitment, and success of students
who are underrepresented in concurrent enrollment classrooms new text end by:

(i) creating new sections within the same high school; new text begin or
new text end

(ii) offering the existing course in new high schools deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (iii) supporting the preparation, recruitment, and success of students who are
deleted text end deleted text begin underrepresented in concurrent enrollment classrooms.
deleted text end

Sec. 11. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 4830.0400, subpart 1; and 4880.2500, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Rule: S1011-1

4830.0400 APPLICATION DATES AND STUDENT ELIGIBILITY.

Subpart 1.

[Repealed, L 2023 c 44 s 12]

4880.2500

[Repealed, L 2023 c 44 s 12]