1.1 	A bill for an act
1.2 	relating to higher education; establishing a budget for higher education; 
1.3 	appropriating money to the Office of Higher Education, the Board of Trustees 
1.4 	of the Minnesota State Colleges and Universities, the Board of Regents of the 
1.5 	University of Minnesota, and the Mayo Clinic; appropriating money for tuition 
1.6 	relief; making various policy and technical changes to higher-education-related 
1.7 	provisions; regulating the policies of postsecondary institutions relating to sexual 
1.8 	harassment and sexual violence; providing goals, standards, programs, and 
1.9 	grants; requiring reports; authorizing refinancing of certain bonds;amending 
1.10 	Minnesota Statutes 2014, sections 5.41, subdivisions 2, 3; 13.32, subdivision 6; 
1.11 	13.322, by adding a subdivision; 16C.075; 122A.09, subdivision 4; 124D.09, 
1.12 	by adding subdivisions; 124D.091, subdivision 1; 135A.15; 136A.01, by adding 
1.13 	a subdivision; 136A.031, subdivision 4; 136A.0411; 136A.101, subdivision 8; 
1.14 	136A.121, subdivisions 6, 7a, 20; 136A.125, subdivisions 2, 4, 4b; 136A.1701, 
1.15 	subdivision 4; 136A.61; 136A.63, subdivision 2; 136A.65, subdivisions 4, 
1.16 	7; 136A.657, subdivisions 1, 3; 136A.67; 136A.861, subdivision 1; 136A.87; 
1.17 	136G.05, subdivision 7; 137.54; 141.21, subdivisions 5, 6a, 9; 141.25; 141.251, 
1.18 	subdivision 2; 141.255; 141.26; 141.265; 141.271, subdivisions 1a, 1b, 3, 5, 7, 8, 
1.19 	9, 10, 12, 13, 14; 141.28; 141.29; 141.30; 141.32; 141.35; 197.75, subdivision 
1.20 	1; 261.23; Laws 2014, chapter 312, article 13, section 47; proposing coding for 
1.21 	new law in Minnesota Statutes, chapters 135A; 136A; 136F; 175; 626; repealing 
1.22 	Minnesota Statutes 2014, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 
1.23 	9, 9b, 10, 10a, 11, 14; 136A.862; 141.271, subdivisions 4, 6; 158.01; 158.02; 
1.24 	158.03; 158.04; 158.05; 158.06; 158.07; 158.08; 158.09; 158.091; 158.10; 
1.25 	158.11; 158.12; Minnesota Rules, part 4830.7500, subparts 2a, 2b.
1.26 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.27 	ARTICLE 1
1.28 	HIGHER EDUCATION APPROPRIATIONS

1.29	Section 1. SUMMARY OF APPROPRIATIONS.
 	
1.30 		Subdivision 1.Summary By Fund. The amounts shown in this subdivision 
1.31 	summarize direct appropriations, by fund, made in this article.

2.1	SUMMARY BY FUND
	
2.2			2016
		2017
		Total
	
2.3	General
	$
	1,530,668,000
	$
	1,536,256,000
	$
	3,066,924,000
	
2.4	Health Care Access
		2,157,000
		2,157,000
		4,314,000
	
2.5	Total
	$
	1,532,825,000
	$
	1,538,413,000
	$
	3,071,238,000
	
2.6 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
2.7 	summarize direct appropriations, by agency, made in this article.

2.8	SUMMARY BY AGENCY - ALL FUNDS
	
2.9			2016
		2017
		Total
	
2.10
2.11	Minnesota Office of Higher 
Education
	$
	230,843,000
	$
	236,630,000
	$
	467,473,000
	
2.12
2.13
2.14	Board of Trustees of the 
Minnesota State Colleges and 
Universities
		672,925,000
		672,726,000
		1,345,651,000
	
2.15
2.16	Board of Regents of the 
University of Minnesota
		627,706,000
		627,706,000
		1,251,098,000
	
2.17	Mayo Clinic
		1,351,000
		1,351,000
		2,702,000
	
2.18	Total
	$
	1,532,825,000
	$
	1,538,413,000
	$
	3,066,924,000

2.19	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.20 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.21 	agencies and for the purposes specified in this article. The appropriations are from the 
2.22 	general fund, or another named fund, and are available for the fiscal years indicated 
2.23 	for each purpose. The figures "2016" and "2017" used in this article mean that the 
2.24 	appropriations listed under them are available for the fiscal year ending June 30, 2016, or 
2.25 	June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal 
2.26 	year 2017. "The biennium" is fiscal years 2016 and 2017.

2.27				APPROPRIATIONS
	
2.28				Available for the Year
	
2.29				Ending June 30
	
2.30					2016
		2017

2.31
2.32	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.33	Subdivision 1.Total Appropriation
 	$
	230,843,000
	$
	236,630,000
	
2.34 	The amounts that may be spent for each 
2.35 	purpose are specified in the following 
2.36 	subdivisions.

2.37	Subd. 2.State Grants
 		180,281,000
		180,281,000
	
3.1 	If the appropriation in this subdivision for 
3.2 	either year is insufficient, the appropriation 
3.3 	for the other year is available for it.

3.4	Subd. 3.Child Care Grants
 		6,684,000
		6,684,000

3.5	Subd. 4.State Work-Study
 		14,502,000
		14,502,000

3.6	Subd. 5.Interstate Tuition Reciprocity
 		11,018,000
		11,018,000
	
3.7 	If the appropriation in this subdivision for 
3.8 	either year is insufficient, the appropriation 
3.9 	for the other year is available to meet 
3.10 	reciprocity contract obligations.

3.11	Subd. 6.Safety Officer's Survivors
 		100,000
		100,000
	
3.12 	This appropriation is to provide educational 
3.13 	benefits under Minnesota Statutes, section 
3.14 	299A.45, to eligible dependent children and 
3.15 	to the spouses of public safety officers killed 
3.16 	in the line of duty.
3.17 	If the appropriation in this subdivision for 
3.18 	either year is insufficient, the appropriation 
3.19 	for the other year is available for it.

3.20	Subd. 7.Indian Scholarships
 		3,500,000
		3,500,000
	
3.21 	The commissioner must contract with or 
3.22 	employ at least one person with demonstrated 
3.23 	competence in American Indian culture and 
3.24 	residing in or near the city of Bemidji to 
3.25 	assist students with the scholarships under 
3.26 	Minnesota Statutes, section 136A.126, and 
3.27 	with other information about financial aid for 
3.28 	which the students may be eligible. Bemidji 
3.29 	State University must provide office space 
3.30 	at no cost to the Minnesota Office of Higher 
3.31 	Education for purposes of administering the 
3.32 	American Indian scholarship program under 
3.33 	Minnesota Statutes, section 136A.126. This 
4.1 	appropriation includes funding to administer 
4.2 	the American Indian scholarship program.

4.3	Subd. 8.Tribal College Grants
 		150,000
		150,000
	
4.4 	For tribal college assistance grants under 
4.5 	Minnesota Statutes, section 136A.1796.

4.6
4.7	Subd. 9.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
4.8 	For the intervention for college attendance 
4.9 	program under Minnesota Statutes, section 
4.10 	136A.861.
4.11 	This appropriation includes funding to 
4.12 	administer the intervention for college 
4.13 	attendance program grants.

4.14	Subd. 10.Student-Parent Information
 		122,000
		122,000

4.15	Subd. 11.Get Ready!
 		180,000
		180,000

4.16
4.17	Subd. 12.Minnesota Education Equity 
Partnership
 		45,000
		45,000

4.18	Subd. 13.Midwest Higher Education Compact
 		115,000
		115,000

4.19
4.20	Subd. 14.United Family Medicine Residency 
Program
 		501,000
		501,000
	
4.21 	For a grant to United Family Medicine 
4.22 	residency program. This appropriation 
4.23 	shall be used to support up to 21 resident 
4.24 	physicians each year in family practice at 
4.25 	United Family Medicine residency programs 
4.26 	and shall prepare doctors to practice family 
4.27 	care medicine in underserved rural and 
4.28 	urban areas of the state. It is intended 
4.29 	that this program will improve health 
4.30 	care in underserved communities, provide 
4.31 	affordable access to appropriate medical 
4.32 	care, and manage the treatment of patients in 
4.33 	a cost-effective manner.

4.34	Subd. 15.MnLINK Gateway and Minitex
 		5,905,000
		5,905,000

5.1
5.2	Subd. 16.Statewide Longitudinal Education 
Data System
 		882,000
		882,000

5.3	Subd. 17.Hennepin County Medical Center
 		645,000
		645,000
	
5.4 	For transfer to Hennepin County Medical 
5.5 	Center for graduate family medical education 
5.6 	programs at Hennepin County Medical 
5.7 	Center.

5.8
5.9	Subd. 18.MNSCU Two-Year Public College 
Program
 		-0-
		5,000,000
	
5.10 	(a) $3,993,000 in fiscal year 2017 is for 
5.11 	two-year public college program grants 
5.12 	under article 3, section 20.
5.13 	(b) $782,000 in fiscal year 2017 is to provide 
5.14 	mentoring and outreach as specified under 
5.15 	article 3, section 20.
5.16 	(c) $225,000 in fiscal year 2017 is for 
5.17 	information technology and administrative 
5.18 	costs associated with implementation of the 
5.19 	grant program.
5.20 	(d) The base for fiscal year 2018 is $3,481,000 
5.21 	and the base for fiscal year 2019 is $0.

5.22	Subd. 19.College Possible
 		250,000
		250,000
	
5.23 	(a) This appropriation is for immediate 
5.24 	transfer to College Possible to support 
5.25 	programs of college admission and college 
5.26 	graduation for low-income students through 
5.27 	an intensive curriculum of coaching 
5.28 	and support at both the high school and 
5.29 	postsecondary level.
5.30 	(b) This appropriation must, to the extent 
5.31 	possible, be proportionately allocated 
5.32 	between students from greater Minnesota and 
5.33 	students in the seven-county metropolitan 
5.34 	area.
6.1 	(c) This appropriation must be used 
6.2 	by College Possible only for programs 
6.3 	supporting students who are residents 
6.4 	of Minnesota and attending colleges or 
6.5 	universities within Minnesota.
6.6 	(d) By February 1 of each year, College 
6.7 	Possible must report to the chairs and 
6.8 	ranking minority members of the legislative 
6.9 	committees and divisions with jurisdiction 
6.10 	over higher education and E-12 education on 
6.11 	activities funded by this appropriation. The 
6.12 	report must include, but is not limited to, 
6.13 	information about the expansion of College 
6.14 	Possible in Minnesota, the number of College 
6.15 	Possible coaches hired, the expansion within 
6.16 	existing partner high schools, the expansion 
6.17 	of high school partnerships, the number of 
6.18 	high school and college students served, the 
6.19 	total hours of community service by high 
6.20 	school and college students, and a list of 
6.21 	communities and organizations benefitting 
6.22 	from student service hours.

6.23
6.24	Subd. 20.Large Animal Veterinarian Loan 
Forgiveness Program
 		250,000
			
6.25 	For the large animal veterinarian loan 
6.26 	forgiveness program under Minnesota 
6.27 	Statutes, section 136A.1795. This is a 
6.28 	onetime appropriation and is available until 
6.29 	June 30, 2022.

6.30
6.31	Subd. 21.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		500,000
		500,000
	
6.32 	For spinal cord injury and traumatic brain 
6.33 	injury research grants authorized under 
6.34 	Minnesota Statutes, section 136A.901.
7.1 	The commissioner may use no more than 
7.2 	three percent of this appropriation to 
7.3 	administer the grant program under this 
7.4 	subdivision.

7.5
7.6	Subd. 22.Summer Academic Enrichment 
Program
 		100,000
		100,000
	
7.7 	For summer academic enrichment grants 
7.8 	under Minnesota Statutes, section 136A.091.
7.9 	The commissioner may use no more than 
7.10 	three percent of this appropriation to 
7.11 	administer the grant program under this 
7.12 	subdivision.

7.13
7.14	Subd. 23.Dual Training Competency Grants; 
OHE
 		1,000,000
		2,000,000
	
7.15 	For training grants under Minnesota Statutes, 
7.16 	section 136A.246.
7.17 	The commissioner may use no more than 
7.18 	three percent of this appropriation to 
7.19 	administer the grant program under this 
7.20 	subdivision.

7.21
7.22	Subd. 24.Dual Training Competency Grants; 
DOLI
 		200,000
		200,000
	
7.23 	For transfer to the commissioner of labor 
7.24 	and industry for identification of competency 
7.25 	standards for dual training under Minnesota 
7.26 	Statutes, section 175.45.

7.27	Subd. 25.Concurrent Enrollment Courses
 		340,000
		340,000
	
7.28 	(a) $225,000 in fiscal year 2016 and 
7.29 	$225,000 in fiscal year 2017 are for grants to 
7.30 	develop new concurrent enrollment courses 
7.31 	under Minnesota Statutes, section 124D.09, 
7.32 	subdivision 10, that satisfy the elective 
7.33 	standard for career and technical education. 
7.34 	Any balance in the first year does not cancel 
7.35 	but is available in the second year.
8.1 	(b) $115,000 in fiscal year 2016 and 
8.2 	$115,000 in fiscal year 2017 are for grants 
8.3 	to postsecondary institutions currently 
8.4 	sponsoring a concurrent enrollment course to 
8.5 	expand existing programs. The commissioner 
8.6 	shall determine the application process and 
8.7 	the grant amounts. The commissioner must 
8.8 	give preference to expanding programs that 
8.9 	are at capacity. Any balance in the first year 
8.10 	does not cancel but is available in the second 
8.11 	year.
8.12 	(c) By December 1 of each year, the office 
8.13 	shall submit a brief report to the chairs and 
8.14 	ranking minority members of the legislative 
8.15 	committees with jurisdiction over higher 
8.16 	education regarding:
8.17 	(1) the courses developed by grant recipients 
8.18 	and the number of students who enrolled in 
8.19 	the courses under paragraph (a); and
8.20 	(2) the programs expanded and the number 
8.21 	of students who enrolled in programs under 
8.22 	paragraph (b).

8.23	Subd. 26.Student Loan Debt Counseling
 		150,000
		150,000
	
8.24 	For student loan debt counseling under article 
8.25 	3, section 24. This is a onetime appropriation.

8.26	Subd. 27.Campus Sexual Assault Reporting
 		25,000
		25,000
	
8.27 	For the sexual assault reporting required 
8.28 	under Minnesota Statutes, section 135A.15.

8.29	Subd. 28.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
	
8.30 	For the loan forgiveness program under 
8.31 	Minnesota Statutes, section 136A.1791.
8.32 	The commissioner may use no more 
8.33 	than three percent of this appropriation 
9.1 	to administer the program under this 
9.2 	subdivision.

9.3	Subd. 29.Agency Administration
 		2,527,000
		2,564,000

9.4	Subd. 30.Balances Forward
 					
9.5 	A balance in the first year under this section 
9.6 	does not cancel, but is available for the 
9.7 	second year.

9.8	Subd. 31.Transfers
 					
9.9 	The Minnesota Office of Higher Education 
9.10 	may transfer unencumbered balances from 
9.11 	the appropriations in this section to the state 
9.12 	grant appropriation, the interstate tuition 
9.13 	reciprocity appropriation, the child care 
9.14 	grant appropriation, the Indian scholarship 
9.15 	appropriation, the state work-study 
9.16 	appropriation, the get ready appropriation, 
9.17 	and the public safety officers' survivors 
9.18 	appropriation. Transfers from the child care 
9.19 	or state work-study appropriations may only 
9.20 	be made to the extent there is a projected 
9.21 	surplus in the appropriation. A transfer may 
9.22 	be made only with prior written notice to 
9.23 	the chairs and ranking minority members 
9.24 	of the senate and house of representatives 
9.25 	committees and divisions with jurisdiction 
9.26 	over higher education finance.

9.27
9.28
9.29	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

9.30	Subdivision 1.Total Appropriation
 	$
	672,925,000
	$
	672,726,000
	
9.31 	The amounts that may be spent for each 
9.32 	purpose are specified in the following 
9.33 	subdivisions.

10.1
10.2	Subd. 2.Central Office and Shared Services 
Unit
 		33,074,000
		33,074,000
	
10.3 	For the Office of the Chancellor and the 
10.4 	Shared Services Division.

10.5	Subd. 3.Operations and Maintenance
 		635,736,000
		635,537,000
	
10.6 	This appropriation includes $50,000,000 in 
10.7 	fiscal year 2016 and $50,000,000 in fiscal 
10.8 	year 2017 for student tuition relief. The 
10.9 	Board of Trustees must establish tuition rates 
10.10 	as follows:
10.11 	(1) for the 2015-2016 academic year, the 
10.12 	tuition rate at colleges must not exceed the 
10.13 	2014-2015 academic year rate; and
10.14 	(2) for the 2016-2017 academic year, the 
10.15 	tuition rate at universities must not exceed 
10.16 	the 2015-2016 academic year rate, and the 
10.17 	tuition rate at colleges must be reduced by at 
10.18 	least one percent compared to the 2015-2016 
10.19 	academic year rate.
10.20 	The student tuition relief may not be offset 
10.21 	by increases in mandatory fees, charges, or 
10.22 	other assessments to the student.
10.23 	$57,000 in fiscal year 2016 and $58,000 in 
10.24 	fiscal year 2017 are for activities related to 
10.25 	the implementation of new transfer pathways 
10.26 	required by article 3, section 21.
10.27 	This appropriation includes $200,000 in 
10.28 	fiscal year 2016 to award up to two grants to 
10.29 	system institutions with a teacher preparation 
10.30 	program approved by the Board of Teaching 
10.31 	to provide a school year-long student 
10.32 	teaching pilot program, consistent with 
10.33 	the student teaching program requirements 
10.34 	under Minnesota Statutes, section 122A.09, 
11.1 	subdivision 4, paragraph (d). This is a 
11.2 	onetime appropriation. The Board of 
11.3 	Trustees must report to the K-12 and higher 
11.4 	education committees of the legislature by 
11.5 	March 1, 2017, on the experiences of the 
11.6 	grant recipients and the student teachers 
11.7 	with the school year-long student teaching 
11.8 	program, and include any recommendations 
11.9 	for amending Minnesota Statutes, section 
11.10 	122A.09, subdivision 4, paragraph (d), based 
11.11 	on the experiences of the grant recipients.
11.12 	$18,000 each year is for transfer to the Cook 
11.13 	County Higher Education Board to provide 
11.14 	educational programming and academic 
11.15 	support services to remote regions in 
11.16 	northeastern Minnesota. This appropriation 
11.17 	is in addition to the $102,000 per fiscal year 
11.18 	this project currently receives. The project 
11.19 	shall continue to provide information to the 
11.20 	Board of Trustees on the number of students 
11.21 	served, credit hours delivered, and services 
11.22 	provided to students. The base appropriation 
11.23 	under this paragraph is $120,000 each year.
11.24 	$50,000 in fiscal year 2016 and $50,000 
11.25 	in fiscal year 2017 are for developing and 
11.26 	teaching online agriculture courses by farm 
11.27 	business management faculty at colleges that 
11.28 	offer farm business management.
11.29 	Institutions developing courses under this 
11.30 	appropriation shall focus on introductory 
11.31 	coursework, and must coordinate with one 
11.32 	another to offer complimentary courses 
11.33 	and avoid duplication. The appropriation 
11.34 	may not be used to develop courses already 
11.35 	available through another state college or 
12.1 	university. Institutions receiving funds from 
12.2 	this appropriation must have one course 
12.3 	developed and ready for student enrollment 
12.4 	within one year of receiving funds.
12.5 	$225,000 in fiscal year 2016 and $225,000 
12.6 	in fiscal year 2017 are to create and develop 
12.7 	a teacher preparation program leading 
12.8 	to licensure in agricultural education at 
12.9 	Southwest Minnesota State University. This 
12.10 	is a onetime appropriation.
12.11 	Southwest Minnesota State University shall 
12.12 	provide the committees of the legislature 
12.13 	with primary jurisdiction over agriculture 
12.14 	policy, K-12 education policy, and higher 
12.15 	education policy and finance with a report 
12.16 	on the institution's progress in creating an 
12.17 	agricultural education licensure program and 
12.18 	increasing the number of students receiving 
12.19 	a teaching license in agricultural education. 
12.20 	The report must be submitted by February 
12.21 	15, 2016, and by February 15, 2017.
12.22 	$35,000 in fiscal year 2016 and $35,000 in 
12.23 	fiscal year 2017 are to implement a program 
12.24 	to assist foreign-born students and groups 
12.25 	underrepresented in nursing to succeed 
12.26 	in postsecondary nursing programs. This 
12.27 	program shall include but not be limited to 
12.28 	mentoring programs and seminars.
12.29 	One-quarter of this appropriation must be 
12.30 	distributed to Minneapolis Community and 
12.31 	Technical College. One-quarter of this 
12.32 	appropriation must be distributed to Century 
12.33 	College. One-half of this appropriation 
12.34 	must be distributed in equal amounts to 
12.35 	two state colleges or universities that 
13.1 	are located outside of the seven-county 
13.2 	metropolitan area. The board must select 
13.3 	the state colleges or universities outside 
13.4 	of the seven-county metropolitan area 
13.5 	based on the proportion of enrolled nursing 
13.6 	students that are foreign-born or from groups 
13.7 	underrepresented in nursing.
13.8 	The program established under this 
13.9 	appropriation shall be called the "Kathleen 
13.10 	McCullough-Zander Success in Nursing 
13.11 	Program."
13.12 	$175,000 in fiscal year 2016 and $175,000 
13.13 	in fiscal year 2017 are to establish a 
13.14 	veterans-to-agriculture pilot program. The 
13.15 	appropriation for fiscal year 2016 shall be 
13.16 	used to establish the pilot program at South 
13.17 	Central College, North Mankato campus, and 
13.18 	the appropriation for fiscal year 2017 shall be 
13.19 	used to support, in equal amounts, up to six 
13.20 	program sites statewide. No more than two 
13.21 	percent of the total appropriation provided by 
13.22 	this section may be used for administrative 
13.23 	purposes at the system level.
13.24 	The veterans-to-agriculture pilot program 
13.25 	shall be designed to facilitate the entrance 
13.26 	of military veterans into careers related to 
13.27 	agriculture and food production, processing, 
13.28 	and distribution through intensive, four- to 
13.29 	eight-week academic training in relevant 
13.30 	fields of study, job development programs 
13.31 	and outreach to potential employers, and 
13.32 	appropriate career-building skills designed 
13.33 	to assist returning veterans in entering 
13.34 	the civilian workforce. Upon successful 
13.35 	completion, a student shall be awarded 
14.1 	a certificate of completion or another 
14.2 	appropriate academic credit.
14.3 	The pilot program shall be coordinated 
14.4 	by South Central College, North Mankato 
14.5 	campus' farm business management program 
14.6 	and developed in collaboration with the 
14.7 	University of Minnesota Extension, the 
14.8 	Department of Agriculture, the Department 
14.9 	of Veterans Affairs, and the Department of 
14.10 	Employment and Economic Development. 
14.11 	The program coordinators are encouraged to 
14.12 	involve other interested stakeholders in the 
14.13 	development and operation of the program, 
14.14 	and may request assistance with applications 
14.15 	for grants or other funding from available 
14.16 	federal, state, local, and private sources. As 
14.17 	necessary, they may also work with other 
14.18 	public or private entities to secure temporary 
14.19 	housing for enrolled students.
14.20 	In addition to South Central College, North 
14.21 	Mankato campus, the pilot program shall 
14.22 	be delivered by up to five additional state 
14.23 	colleges. One of the additional colleges must 
14.24 	be located in the seven-county metropolitan 
14.25 	area, at a campus that has agreed to 
14.26 	incorporate the pilot program as part of an 
14.27 	urban agriculture program, and the remaining 
14.28 	additional colleges must be located outside 
14.29 	of the seven-county metropolitan area, 
14.30 	at campuses with existing farm business 
14.31 	management programs.
14.32 	No later than December 15, 2016, the 
14.33 	program shall report to the committees of the 
14.34 	house of representatives and the senate with 
14.35 	jurisdiction over issues related to agriculture, 
15.1 	veterans affairs, and higher education on 
15.2 	program operations, including information 
15.3 	on participation rates, new job placements, 
15.4 	and any unmet needs.
15.5 	This appropriation includes $40,000 in fiscal 
15.6 	year 2016 and $40,000 in fiscal year 2017 
15.7 	to implement the sexual assault policies 
15.8 	required under Minnesota Statutes, section 
15.9 	135A.15.
15.10 	Five percent of the fiscal year 2017 
15.11 	appropriation specified in this subdivision 
15.12 	is available according to the schedule in 
15.13 	clauses (1) to (5) in fiscal year 2017 when 
15.14 	the Board of Trustees of the Minnesota State 
15.15 	Colleges and Universities demonstrates to 
15.16 	the commissioner of management and budget 
15.17 	that the board has met the following specified 
15.18 	number of performance goals:
15.19 	(1) 100 percent if the board meets three, four, 
15.20 	or five goals;
15.21 	(2) 67 percent if two of the goals are met;
15.22 	(3) 33 percent if one of the goals are met; and
15.23 	(4) zero percent if none of the goals are met.
15.24 	The performance goals are:
15.25 	(1) increase by at least four percent in fiscal 
15.26 	year 2015, compared to fiscal year 2008, 
15.27 	degrees, diplomas, and certificates conferred 
15.28 	and provide a report to the chairs and 
15.29 	ranking minority members of the legislative 
15.30 	committees with jurisdiction over higher 
15.31 	education on the separate changes in the 
15.32 	number of degrees, diplomas, and certificates 
15.33 	conferred;
16.1 	(2) increase by at least five percent the fiscal 
16.2 	year 2015-related employment rate for 2014 
16.3 	graduates, compared to the 2011 rate for 
16.4 	2010 graduates;
16.5 	(3) for fiscal year 2016, reallocate 
16.6 	$22,000,000 of costs. The Board of Trustees 
16.7 	is requested to redirect those funds to invest 
16.8 	in direct mission activities, stem growth in 
16.9 	tuition and student fees, and to programs that 
16.10 	benefit students;
16.11 	(4) decrease by at least ten percent the fiscal 
16.12 	year 2015 headcount of students enrolled in 
16.13 	developmental courses compared to fiscal 
16.14 	year 2013 headcount of students enrolled in 
16.15 	developmental courses; and
16.16 	(5) increase by at least five percent the 
16.17 	fiscal year 2015 degrees awarded to students 
16.18 	who took no more than 128 credits for a 
16.19 	baccalaureate degree and 68 credits for 
16.20 	associate in arts, associate of science, or 
16.21 	associate in fine arts degrees, as compared to 
16.22 	the rate for 2011 graduates.
16.23 	By August 1, 2015, the Board of Trustees 
16.24 	and the Minnesota Office of Higher 
16.25 	Education must agree on specific numerical 
16.26 	indicators and definitions for each of the five 
16.27 	goals that will be used to demonstrate the 
16.28 	Minnesota State Colleges and Universities' 
16.29 	attainment of each goal. On or before April 
16.30 	1, 2016, the Board of Trustees must report 
16.31 	to the legislative committees with primary 
16.32 	jurisdiction over higher education finance 
16.33 	and policy the progress of the Minnesota 
16.34 	State Colleges and Universities toward 
16.35 	attaining the goals. The appropriation 
17.1 	base for the next biennium shall include 
17.2 	appropriations not made available under this 
17.3 	subdivision for failure to meet performance 
17.4 	goals. All of the appropriation that is not 
17.5 	available due to failure to meet performance 
17.6 	goals is appropriated to the commissioner 
17.7 	of the Office of Higher Education for fiscal 
17.8 	year 2017 for the purpose of the state grant 
17.9 	program under Minnesota Statutes, section 
17.10 	136A.121.
17.11 	Performance metrics are intended to facilitate 
17.12 	progress towards the attainment goal under 
17.13 	Minnesota Statutes, section 135A.012.

17.14	Subd. 4.Learning Network of Minnesota
 		4,115,000
		4,115,000

17.15
17.16	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

17.17	Subdivision 1.Total Appropriation
 	$
	627,706,000
	$
	627,706,000

17.18	Appropriations by Fund
	
17.19		2016
	2017
	
17.20	General
	625,549,000
	625,549,000
	
17.21	Health Care Access
	2,157,000
	2,157,000
	
17.22 	The amounts that may be spent for each 
17.23 	purpose are specified in the following 
17.24 	subdivisions.

17.25	Subd. 2.Operations and Maintenance
 		559,111,000
		559,111,000
	
17.26 	This appropriation includes funding for 
17.27 	operation and maintenance of the system. Of 
17.28 	the amount appropriated in this subdivision:
17.29 	$11,100,000 in fiscal year 2016 and 
17.30 	$11,100,000 in fiscal year 2017 are to 
17.31 	minimize any increase in a student's cost 
17.32 	of attendance; for research to solve the 
17.33 	challenges facing our state, nation, and 
17.34 	world; to educate a diverse population of 
18.1 	Minnesotans from every community who 
18.2 	show the greatest promise; and for public 
18.3 	service that builds lasting partnerships with 
18.4 	communities across the state to address our 
18.5 	most complex and pressing issues. The 
18.6 	Board of Regents is requested to:
18.7 	(1) maintain a low cost of mission and 
18.8 	advance operational excellence;
18.9 	(2) increase the diversity of the university's 
18.10 	students, faculty, and staff; and
18.11 	(3) strengthen the university's relationships 
18.12 	with the agriculture industry and the 
18.13 	communities of greater Minnesota.
18.14 	$15,000,000 in fiscal year 2016 and 
18.15 	$15,000,000 in fiscal year 2017 are to:
18.16 	(1) increase the medical school's research 
18.17 	capacity;
18.18 	(2) improve the medical school's ranking in 
18.19 	National Institutes of Health funding;
18.20 	(3) ensure the medical school's national 
18.21 	prominence by attracting and retaining 
18.22 	world-class faculty, staff, and students;
18.23 	(4) invest in physician training programs in 
18.24 	rural and underserved communities; and
18.25 	(5) translate the medical school's research 
18.26 	discoveries into new treatments and cures to 
18.27 	improve the health of Minnesotans.
18.28 	The Board of Regents is requested to 
18.29 	consider hiring additional faculty to conduct 
18.30 	research related to regenerative medicine. 
18.31 	Five percent of the fiscal year 2017 
18.32 	appropriation specified in this subdivision 
18.33 	is available according to the schedule in 
19.1 	clauses (1) to (5) in fiscal year 2017 when 
19.2 	the Board of Regents of the University of 
19.3 	Minnesota demonstrates to the commissioner 
19.4 	of management and budget that the board 
19.5 	has met the following specified number of 
19.6 	performance goals:
19.7 	(1) 100 percent if the board meets three, four, 
19.8 	or five goals;
19.9 	(2) 67 percent if two of the goals are met;
19.10 	(3) 33 percent if one of the goals are met; and
19.11 	(4) zero percent if none of the goals are met.
19.12 	The performance goals are:
19.13 	(1) increase by at least one percent 
19.14 	the four-year, five-year, or six-year 
19.15 	undergraduate graduation rates, averaged 
19.16 	over three years, for students of color 
19.17 	systemwide at the University of Minnesota 
19.18 	reported in fall 2016 over fall 2014. The 
19.19 	average rate for fall 2014 is calculated with 
19.20 	the graduation rates reported in fall 2012, 
19.21 	2013, and 2014;
19.22 	(2) increase by at least two percent the 
19.23 	total number of undergraduate STEM 
19.24 	degrees, averaged over three years, conferred 
19.25 	systemwide by the University of Minnesota 
19.26 	reported in fiscal year 2016 over fiscal year 
19.27 	2014. The averaged number for fiscal year 
19.28 	2014 is calculated with the fiscal year 2012, 
19.29 	2013, and 2014 numbers;
19.30 	(3) increase by at least one percent the 
19.31 	four-year undergraduate graduation rate at 
19.32 	the University of Minnesota reported in fall 
19.33 	2016 over fall 2014. The average rate for 
19.34 	fall 2014 is calculated with the graduation 
20.1 	rates reported in fall 2012, 2013, and 2014. 
20.2 	The averaged number for fiscal year 2014 is 
20.3 	calculated with the fiscal year 2012, 2013, 
20.4 	and 2014 numbers;
20.5 	(4) for fiscal year 2016, reallocate 
20.6 	$15,000,000 of administrative costs. The 
20.7 	Board of Regents is requested to redirect 
20.8 	those funds to invest in direct mission 
20.9 	activities, stem growth in cost of attendance, 
20.10 	and to programs that benefit students; and
20.11 	(5) increase licensing disclosures by three 
20.12 	percent for fiscal year 2016 over fiscal year 
20.13 	2015.
20.14 	By August 1, 2015, the Board of Regents and 
20.15 	the Office of Higher Education must agree on 
20.16 	specific numerical indicators and definitions 
20.17 	for each of the five goals that will be used to 
20.18 	demonstrate the University of Minnesota's 
20.19 	attainment of each goal. On or before April 
20.20 	1, 2016, the Board of Regents must report 
20.21 	to the legislative committees with primary 
20.22 	jurisdiction over higher education finance 
20.23 	and policy the progress of the University of 
20.24 	Minnesota toward attaining the goals. The 
20.25 	appropriation base for the next biennium shall 
20.26 	include appropriations not made available 
20.27 	under this subdivision for failure to meet 
20.28 	performance goals. All of the appropriation 
20.29 	that is not available due to failure to meet 
20.30 	performance goals is appropriated to the 
20.31 	commissioner of the Office of Higher 
20.32 	Education for fiscal year 2017 for the purpose 
20.33 	of the state grant program under Minnesota 
20.34 	Statutes, section 136A.121.
21.1 	Performance metrics are intended to facilitate 
21.2 	progress towards the attainment goal under 
21.3 	Minnesota Statutes, section 135A.012.

21.4	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
21.5 	This appropriation is from the health care 
21.6 	access fund.

21.7	Subd. 4.Special Appropriations

21.8	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
21.9 	For the Agricultural Experiment Station and 
21.10 	the Minnesota Extension Service:
21.11 	(1) the agricultural experiment stations 
21.12 	and Minnesota Extension Service must 
21.13 	convene agricultural advisory groups to 
21.14 	focus research, education, and extension 
21.15 	activities on producer needs and implement 
21.16 	an outreach strategy that more effectively 
21.17 	and rapidly transfers research results and best 
21.18 	practices to producers throughout the state;
21.19 	(2) this appropriation includes funding for 
21.20 	research and outreach on the production of 
21.21 	renewable energy from Minnesota biomass 
21.22 	resources, including agronomic crops, plant 
21.23 	and animal wastes, and native plants or trees. 
21.24 	The following areas should be prioritized and 
21.25 	carried out in consultation with Minnesota 
21.26 	producers, renewable energy, and bioenergy 
21.27 	organizations:
21.28 	(i) biofuel and other energy production from 
21.29 	perennial crops, small grains, row crops, 
21.30 	and forestry products in conjunction with 
21.31 	the Natural Resources Research Institute 
21.32 	(NRRI);
21.33 	(ii) alternative bioenergy crops and cropping 
21.34 	systems; and
22.1 	(iii) biofuel coproducts used for livestock 
22.2 	feed;
22.3 	(3) this appropriation includes funding 
22.4 	for the College of Food, Agricultural, and 
22.5 	Natural Resources Sciences to establish and 
22.6 	provide leadership for organic agronomic, 
22.7 	horticultural, livestock, and food systems 
22.8 	research, education, and outreach and for 
22.9 	the purchase of state-of-the-art laboratory, 
22.10 	planting, tilling, harvesting, and processing 
22.11 	equipment necessary for this project;
22.12 	(4) this appropriation includes funding 
22.13 	for research efforts that demonstrate a 
22.14 	renewed emphasis on the needs of the state's 
22.15 	agriculture community. The following 
22.16 	areas should be prioritized and carried 
22.17 	out in consultation with Minnesota farm 
22.18 	organizations:
22.19 	(i) vegetable crop research with priority for 
22.20 	extending the Minnesota vegetable growing 
22.21 	season;
22.22 	(ii) fertilizer and soil fertility research and 
22.23 	development;
22.24 	(iii) soil, groundwater, and surface water 
22.25 	conservation practices and contaminant 
22.26 	reduction research;
22.27 	(iv) discovering and developing plant 
22.28 	varieties that use nutrients more efficiently;
22.29 	(v) breeding and development of turf seed 
22.30 	and other biomass resources in all three 
22.31 	Minnesota biomes;
22.32 	(vi) development of new disease-resistant 
22.33 	and pest-resistant varieties of turf and 
22.34 	agronomic crops;
23.1 	(vii) utilizing plant and livestock cells to treat 
23.2 	and cure human diseases;
23.3 	(viii) the development of dairy coproducts;
23.4 	(ix) a rapid agricultural response fund for 
23.5 	current or emerging animal, plant, and insect 
23.6 	problems affecting production or food safety;
23.7 	(x) crop pest and animal disease research;
23.8 	(xi) developing animal agriculture that is 
23.9 	capable of sustainably feeding the world;
23.10 	(xii) consumer food safety education and 
23.11 	outreach;
23.12 	(xiii) programs to meet the research and 
23.13 	outreach needs of organic livestock and crop 
23.14 	farmers; and
23.15 	(xiv) alternative bioenergy crops and 
23.16 	cropping systems; and growing, harvesting, 
23.17 	and transporting biomass plant material; and
23.18 	(5) by February 1, 2017, the Board of Regents 
23.19 	must submit a report to the legislative 
23.20 	committees and divisions with jurisdiction 
23.21 	over agriculture and higher education finance 
23.22 	on the status and outcomes of research and 
23.23 	initiatives funded in this paragraph.

23.24	(b) Health Sciences
		9,204,000
		9,204,000
	
23.25 	$346,000 each year is to support up to 12 
23.26 	resident physicians in the St. Cloud Hospital 
23.27 	family practice residency program. The 
23.28 	program must prepare doctors to practice 
23.29 	primary care medicine in rural areas of the 
23.30 	state. The legislature intends this program 
23.31 	to improve health care in rural communities, 
23.32 	provide affordable access to appropriate 
23.33 	medical care, and manage the treatment of 
23.34 	patients in a more cost-effective manner. 
24.1 	The remainder of this appropriation is for 
24.2 	the rural physicians associates program; 
24.3 	the Veterinary Diagnostic Laboratory; 
24.4 	health sciences research; dental care; the 
24.5 	Biomedical Engineering Center; and the 
24.6 	collaborative partnership between the 
24.7 	University of Minnesota and Mayo Clinic 
24.8 	for regenerative medicine, research, clinical 
24.9 	translation, and commercialization.

24.10	(c) Institute of Technology
		1,140,000
		1,140,000
	
24.11 	For the geological survey and the talented 
24.12 	youth mathematics program.

24.13	(d) System Special
		5,181,000
		5,181,000
	
24.14 	For general research, the Labor Education 
24.15 	Service, Natural Resources Research 
24.16 	Institute, Center for Urban and Regional 
24.17 	Affairs, Bell Museum of Natural History, and 
24.18 	the Humphrey exhibit.

24.19
24.20	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,991,000
		7,991,000
	
24.21 	This appropriation is for the following 
24.22 	activities:
24.23 	(1) $7,491,000 in fiscal year 2016 and 
24.24 	$7,491,000 in fiscal year 2017 are for 
24.25 	the direct and indirect expenses of the 
24.26 	collaborative research partnership between 
24.27 	the University of Minnesota and the Mayo 
24.28 	Foundation for research in biotechnology 
24.29 	and medical genomics. An annual report 
24.30 	on the expenditure of these funds must be 
24.31 	submitted to the governor and the chairs of 
24.32 	the legislative committee responsible for 
24.33 	higher education finance by June 30 of each 
24.34 	fiscal year.
25.1 	(2) $500,000 in fiscal year 2016 and 
25.2 	$500,000 in fiscal year 2017 are to award 
25.3 	competitive grants to conduct research into 
25.4 	the prevention, treatment, causes, and cures 
25.5 	of Alzheimer's disease and other dementias.

25.6	Subd. 5.Academic Health Center
 					
25.7 	The appropriation for Academic Health 
25.8 	Center funding under Minnesota Statutes, 
25.9 	section 297F.10, is estimated to be 
25.10 	$22,250,000 each year.

25.11	Sec. 6. MAYO CLINIC

25.12	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
25.13 	The amounts that may be spent are specified 
25.14 	in the following subdivisions.

25.15	Subd. 2.Medical School
 		665,000
		665,000
	
25.16 	The state must pay a capitation each year for 
25.17 	each student who is a resident of Minnesota. 
25.18 	The appropriation may be transferred 
25.19 	between each year of the biennium to 
25.20 	accommodate enrollment fluctuations. It is 
25.21 	intended that during the biennium the Mayo 
25.22 	Clinic use the capitation money to increase 
25.23 	the number of doctors practicing in rural 
25.24 	areas in need of doctors.

25.25
25.26	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
25.27 	The state must pay stipend support for up to 
25.28 	27 residents each year.

25.29 	Sec. 7. MNSCU PRESIDENTIAL SELECTION PROCESS; REPORT.
 25.30 	The Board of Trustees of the Minnesota State Colleges and Universities shall report 
25.31 	in writing to the chairs and ranking minority members of the legislative committees 
25.32 	with jurisdiction over higher education by October 1, 2015, its schedule for adopting 
25.33 	a presidential selection process as a comprehensive formal written policy. The board 
26.1 	is encouraged to engage stakeholders in developing the board policy. The board must 
26.2 	strongly consider a policy that provides clarity in the selection process, enhances 
26.3 	communication and the opportunity for local input by colleges and universities and 
26.4 	community stakeholders they serve, and that reflects the need to consult with and to keep a 
26.5 	presidential selection advisory committee informed during the entire selection process.

26.6 	Sec. 8. UNIVERSITY OF MINNESOTA BUDGET ALLOCATION REPORT.
 26.7 	The Board of Regents of the University of Minnesota shall report by February 1, 
26.8 	2016, to the chairs and ranking minority members of the legislative committees with 
26.9 	primary jurisdiction over higher education finance on the factors it considers to allocate 
26.10 	funds to separate campuses. The report must specifically, without limitation, address the 
26.11 	issue of whether non-Twin Cities campuses are treated as single units for budget allocation 
26.12 	purposes or treated as comprised of multiple units. The report must discuss the effect of 
26.13 	treating a campus as a single unit and the reasons for that treatment.

26.14 	Sec. 9. TUITION RECIPROCITY APPROPRIATION CANCELLATION.
 26.15 	All unspent funds, estimated to be $8,394,000, to provide tuition reciprocity 
26.16 	payments under Laws 2013, chapter 99, section 3, subdivision 5, are canceled to the 
26.17 	general fund on June 30, 2015.

26.18 	ARTICLE 2
26.19 	OFFICE OF HIGHER EDUCATION

26.20 	Section 1. Minnesota Statutes 2014, section 13.32, subdivision 6, is amended to read:
26.21 		Subd. 6.Admissions forms; Remedial instruction. (a) Minnesota postsecondary 
26.22 	education institutions, for purposes of reporting and research, may collect on the 
26.23 	1986-1987 admissions form, and disseminate to any public educational agency or 
26.24 	institution the following data on individuals: student sex, ethnic background, age, and 
26.25 	disabilities. The data shall not be required of any individual and shall not be used for 
26.26 	purposes of determining the person's admission to an institution.
26.27 	(b) (a) A school district that receives information under subdivision 3, paragraph 
26.28 	(h) from a postsecondary institution about an identifiable student shall maintain the 
26.29 	data as educational data and use that data to conduct studies to improve instruction. 
26.30 	Public postsecondary systems as part of their participation in the Statewide Longitudinal 
26.31 	Education Data System shall provide data on the extent and content of the remedial 
26.32 	instruction received by individual students, and the results of assessment testing and the 
26.33 	academic performance of, students who graduated from a Minnesota school district within 
27.1 	two years before receiving the remedial instruction. The Office of Higher Education, in 
27.2 	collaboration with the Department of Education, shall evaluate the data and annually 
27.3 	report its findings to the education committees of the legislature.
27.4 	(c) (b) This section supersedes any inconsistent provision of law.

27.5 	Sec. 2. Minnesota Statutes 2014, section 16C.075, is amended to read:
27.6 	16C.075 E-VERIFY.
27.7 	A contract for services valued in excess of $50,000 must require certification from 
27.8 	the vendor and any subcontractors that, as of the date services on behalf of the state of 
27.9 	Minnesota will be performed, the vendor and all subcontractors have implemented or are 
27.10 	in the process of implementing the federal E-Verify program for all newly hired employees 
27.11 	in the United States who will perform work on behalf of the state of Minnesota. This 
27.12 	section does not apply to contracts entered into by the:
27.13 	(1) State Board of Investment.; or
27.14 	(2) the Office of Higher Education for contracts related to credit reporting services if 
27.15 	the office certifies that those services cannot be reasonably obtained if this section applies.

27.16 	Sec. 3. Minnesota Statutes 2014, section 122A.09, subdivision 4, is amended to read:
27.17 		Subd. 4.License and rules. (a) The board must adopt rules to license public school 
27.18 	teachers and interns subject to chapter 14.
27.19 	(b) The board must adopt rules requiring a person to pass a skills examination in 
27.20 	reading, writing, and mathematics or attain either a composite score composed of the 
27.21 	average of the scores in English and writing, reading, and mathematics on the ACT 
27.22 	Plus Writing recommended by the board, or an equivalent composite score composed 
27.23 	of the average of the scores in critical reading, mathematics, and writing on the SAT 
27.24 	recommended by the board, as a requirement for initial teacher licensure, except that the 
27.25 	board may issue up to two temporary, one-year teaching licenses to an otherwise qualified 
27.26 	candidate who has not yet passed the skills exam or attained the requisite composite score 
27.27 	on the ACT Plus Writing or SAT. Such rules must require college and universities offering 
27.28 	a board-approved teacher preparation program to provide remedial assistance to persons 
27.29 	who did not achieve a qualifying score on the skills examination or attain the requisite 
27.30 	composite score on the ACT Plus Writing or SAT, including those for whom English is 
27.31 	a second language. The requirement to pass a reading, writing, and mathematics skills 
27.32 	examination or attain the requisite composite score on the ACT Plus Writing or SAT does 
27.33 	not apply to nonnative English speakers, as verified by qualified Minnesota school district 
27.34 	personnel or Minnesota higher education faculty, who, after meeting the content and 
28.1 	pedagogy requirements under this subdivision, apply for a teaching license to provide direct 
28.2 	instruction in their native language or world language instruction under section 120B.022, 
28.3 	subdivision 1. A teacher candidate's official ACT Plus Writing or SAT composite score 
28.4 	report to the board must not be more than ten years old at the time of licensure.
28.5 	(c) The board must adopt rules to approve teacher preparation programs. The board, 
28.6 	upon the request of a postsecondary student preparing for teacher licensure or a licensed 
28.7 	graduate of a teacher preparation program, shall assist in resolving a dispute between the 
28.8 	person and a postsecondary institution providing a teacher preparation program when the 
28.9 	dispute involves an institution's recommendation for licensure affecting the person or the 
28.10 	person's credentials. At the board's discretion, assistance may include the application 
28.11 	of chapter 14.
28.12 	(d) The board must provide the leadership and adopt rules for the redesign of teacher 
28.13 	education programs to implement a research based, results-oriented curriculum that 
28.14 	focuses on the skills teachers need in order to be effective. Among other components, 
28.15 	teacher preparation programs may use the Minnesota State Colleges and Universities 
28.16 	program model to provide a school year-long student teaching program that combines 
28.17 	clinical opportunities with academic coursework and in-depth student teaching 
28.18 	experiences to offer students ongoing mentorship, coaching and assessment, help to 
28.19 	prepare a professional development plan, and structured learning experiences. The board 
28.20 	shall implement new systems of teacher preparation program evaluation to assure program 
28.21 	effectiveness based on proficiency of graduates in demonstrating attainment of program 
28.22 	outcomes. Teacher preparation programs including alternative teacher preparation 
28.23 	programs under section 122A.245, among other programs, must include a content-specific, 
28.24 	board-approved, performance-based assessment that measures teacher candidates in three 
28.25 	areas: planning for instruction and assessment; engaging students and supporting learning; 
28.26 	and assessing student learning. The board's redesign rules must include creating flexible, 
28.27 	specialized teaching licenses, credentials, and other endorsement forms to increase 
28.28 	students' participation in language immersion programs, world language instruction, 
28.29 	career development opportunities, work-based learning, early college courses and careers, 
28.30 	career and technical programs, Montessori schools, and project and place-based learning, 
28.31 	among other career and college ready learning offerings.
28.32 	(e) The board must adopt rules requiring candidates for initial licenses to pass an 
28.33 	examination of general pedagogical knowledge and examinations of licensure-specific 
28.34 	teaching skills. The rules shall be effective by September 1, 2001. The rules under this 
28.35 	paragraph also must require candidates for initial licenses to teach prekindergarten or 
28.36 	elementary students to pass, as part of the examination of licensure-specific teaching 
29.1 	skills, test items assessing the candidates' knowledge, skill, and ability in comprehensive, 
29.2 	scientifically based reading instruction under section 122A.06, subdivision 4, and their 
29.3 	knowledge and understanding of the foundations of reading development, the development 
29.4 	of reading comprehension, and reading assessment and instruction, and their ability to 
29.5 	integrate that knowledge and understanding.
29.6 	(f) The board must adopt rules requiring teacher educators to work directly with 
29.7 	elementary or secondary school teachers in elementary or secondary schools to obtain 
29.8 	periodic exposure to the elementary or secondary teaching environment.
29.9 	(g) The board must grant licenses to interns and to candidates for initial licenses 
29.10 	based on appropriate professional competencies that are aligned with the board's licensing 
29.11 	system and students' diverse learning needs. All teacher candidates must have preparation 
29.12 	in English language development and content instruction for English learners in order to be 
29.13 	able to effectively instruct the English learners in their classrooms. The board must include 
29.14 	these licenses in a statewide differentiated licensing system that creates new leadership 
29.15 	roles for successful experienced teachers premised on a collaborative professional culture 
29.16 	dedicated to meeting students' diverse learning needs in the 21st century, recognizes the 
29.17 	importance of cultural and linguistic competencies, including the ability to teach and 
29.18 	communicate in culturally competent and aware ways, and formalizes mentoring and 
29.19 	induction for newly licensed teachers provided through a teacher support framework.
29.20 	(h) The board must design and implement an assessment system which requires a 
29.21 	candidate for an initial license and first continuing license to demonstrate the abilities 
29.22 	necessary to perform selected, representative teaching tasks at appropriate levels.
29.23 	(i) The board must receive recommendations from local committees as established 
29.24 	by the board for the renewal of teaching licenses. The board must require licensed teachers 
29.25 	who are renewing a continuing license to include in the renewal requirements further 
29.26 	preparation in English language development and specially designed content instruction 
29.27 	in English for English learners.
29.28 	(j) The board must grant life licenses to those who qualify according to requirements 
29.29 	established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 
29.30 	214.10. The board must not establish any expiration date for application for life licenses.
29.31 	(k) The board must adopt rules that require all licensed teachers who are renewing 
29.32 	their continuing license to include in their renewal requirements further preparation in 
29.33 	the areas of using positive behavior interventions and in accommodating, modifying, and 
29.34 	adapting curricula, materials, and strategies to appropriately meet the needs of individual 
29.35 	students and ensure adequate progress toward the state's graduation rule.
30.1 	(l) In adopting rules to license public school teachers who provide health-related 
30.2 	services for disabled children, the board shall adopt rules consistent with license or 
30.3 	registration requirements of the commissioner of health and the health-related boards who 
30.4 	license personnel who perform similar services outside of the school.
30.5 	(m) The board must adopt rules that require all licensed teachers who are renewing 
30.6 	their continuing license to include in their renewal requirements further reading 
30.7 	preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect 
30.8 	until they are approved by law. Teachers who do not provide direct instruction including, at 
30.9 	least, counselors, school psychologists, school nurses, school social workers, audiovisual 
30.10 	directors and coordinators, and recreation personnel are exempt from this section.
30.11 	(n) The board must adopt rules that require all licensed teachers who are renewing 
30.12 	their continuing license to include in their renewal requirements further preparation, 
30.13 	first, in understanding the key warning signs of early-onset mental illness in children 
30.14 	and adolescents and then, during subsequent licensure renewal periods, preparation may 
30.15 	include providing a more in-depth understanding of students' mental illness trauma, 
30.16 	accommodations for students' mental illness, parents' role in addressing students' mental 
30.17 	illness, Fetal Alcohol Spectrum Disorders, autism, the requirements of section 125A.0942 
30.18 	governing restrictive procedures, and de-escalation methods, among other similar topics.

30.19 	EFFECTIVE DATE. This section is effective for the 2016-2017 school year and 
30.20 	later.

30.21 	Sec. 4. Minnesota Statutes 2014, section 136A.01, is amended by adding a subdivision 
30.22 	to read:
30.23 		Subd. 3.Incentive programs. The commissioner is authorized to utilize incentive 
30.24 	gifts including, but not limited to, gift cards in order to promote to the public the various 
30.25 	programs administered by the office. The annual total expenditures for such incentive 
30.26 	programs shall not exceed $10,000.

30.27 	Sec. 5. Minnesota Statutes 2014, section 136A.031, subdivision 4, is amended to read:
30.28 		Subd. 4.Student representation. The commissioner must place at least one 
30.29 	student from an affected educational system on any task force created by the office. The 
30.30 	commissioner must submit to the SAC the name of any student appointed to an advisory 
30.31 	group or task force. The student appointment is not approved if four SAC members vote 
30.32 	to disapprove of the appointment. If an appointment is disapproved, the commissioner 
30.33 	must submit another student appointment to the SAC in a timely manner shall invite the 
31.1 	council to nominate a student or students to serve on task forces created by the office, 
31.2 	when appropriate.

31.3 	Sec. 6. Minnesota Statutes 2014, section 136A.0411, is amended to read:
31.4 	136A.0411 COLLECTING FEES.
31.5 	The office may charge fees for seminars, conferences, workshops, services, and 
31.6 	materials. The office may collect fees for registration and licensure of private institutions 
31.7 	under sections 136A.61 to 136A.71 and chapter 141. The money is annually appropriated 
31.8 	to the office.

31.9 	Sec. 7. Minnesota Statutes 2014, section 136A.125, subdivision 2, is amended to read:
31.10 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
31.11 	the applicant:
31.12 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident 
31.13 	of the state of Minnesota;
31.14 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
31.15 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
31.16 	regular basis from a licensed or legal, nonlicensed caregiver;
31.17 	(3) is income eligible as determined by the office's policies and rules, but is not a 
31.18 	recipient of assistance from the Minnesota family investment program;
31.19 	(4) has not earned a baccalaureate degree and has been enrolled full time less than 
31.20 	eight semesters or the equivalent;
31.21 	(5) is pursuing a nonsectarian program or course of study that applies to an 
31.22 	undergraduate degree, diploma, or certificate;
31.23 	(6) is enrolled at least half time in an eligible institution; and
31.24 	(7) is in good academic standing and making satisfactory academic progress.
31.25 	(b) A student who withdraws from enrollment for active military service after 
31.26 	December 31, 2002, because the student was ordered to active military service as defined 
31.27 	in section 190.05, subdivision 5b or 5c, or for a major illness, while under the care of a 
31.28 	medical professional, that substantially limits the student's ability to complete the term 
31.29 	is entitled to an additional semester or the equivalent of grant eligibility and will be 
31.30 	considered to be in continuing enrollment status upon return.

31.31 	EFFECTIVE DATE. This section is effective August 1, 2015, and applies to 
31.32 	academic terms commencing on or after that date.

32.1 	Sec. 8. Minnesota Statutes 2014, section 136A.125, subdivision 4, is amended to read:
32.2 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant 
32.3 	must be based on:
32.4 	(1) the income of the applicant and the applicant's spouse;
32.5 	(2) the number in the applicant's family, as defined by the office; and
32.6 	(3) the number of eligible children in the applicant's family.
32.7 	(b) The maximum award to the applicant shall be $2,800 for each eligible child per 
32.8 	academic year, except that the campus financial aid officer may apply to the office for 
32.9 	approval to increase grants by up to ten percent to compensate for higher market charges 
32.10 	for infant care in a community. The office shall develop policies to determine community 
32.11 	market costs and review institutional requests for compensatory grant increases to ensure 
32.12 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
32.13 	that will be awarded per child based on the factors in this subdivision. The chart shall 
32.14 	include a range of income and family size.
32.15 	(c) Applicants with family incomes at or below a percentage of the federal poverty 
32.16 	level, as determined by the commissioner, will qualify for the maximum award. The 
32.17 	commissioner shall attempt to set the percentage at a level estimated to fully expend the 
32.18 	available appropriation for child care grants. Applicants with family incomes exceeding 
32.19 	that threshold will receive the maximum award minus ten percent of their income 
32.20 	exceeding that threshold. If the result is less than zero, the grant is zero.
32.21 	(d) The academic year award amount must be disbursed by academic term using the 
32.22 	following formula:
32.23 	(1) the academic year amount described in paragraph (b);
32.24 	(2) divided by the number of terms in the academic year;
32.25 	(3) divided by 15; and
32.26 	(4) multiplied by the number of credits for which the student is enrolled that 
32.27 	academic term, up to 15 credits.
32.28 	(e) Payments shall be made each academic term to the student or to the child care 
32.29 	provider, as determined by the institution. Institutions may make payments more than 
32.30 	once within the academic term.

32.31 	Sec. 9. Minnesota Statutes 2014, section 136A.125, subdivision 4b, is amended to read:
32.32 		Subd. 4b.Additional grants. An additional term of child care grant may be 
32.33 	awarded to an applicant attending classes outside of the regular academic year who meets 
32.34 	the requirements in subdivisions 2 and 4. The annual maximum grant per eligible child 
32.35 	must not exceed the calculated annual amount in subdivision 4, plus the additional amount 
33.1 	in this subdivision, or the student's estimated annual child care cost for not more than 40 
33.2 	hours per week per eligible child, whichever is less.

33.3 	Sec. 10. Minnesota Statutes 2014, section 136A.1701, subdivision 4, is amended to 
33.4 	read:
33.5 		Subd. 4.Terms and conditions of loans. (a) The office may loan money upon 
33.6 	such terms and conditions as the office may prescribe. Under the SELF IV program, the 
33.7 	principal amount of a loan to an undergraduate student for a single academic year shall not 
33.8 	exceed $7,500 per grade level. The aggregate principal amount of all loans made subject 
33.9 	to this paragraph to an undergraduate student shall not exceed $37,500. The principal 
33.10 	amount of a loan to a graduate student for a single academic year shall not exceed $9,000. 
33.11 	The aggregate principal amount of all loans made subject to this paragraph to a student as 
33.12 	an undergraduate and graduate student shall not exceed $55,500. The amount of the loan 
33.13 	may not exceed the cost of attendance less all other financial aid, including PLUS loans or 
33.14 	other similar parent loans borrowed on the student's behalf. The cumulative SELF loan 
33.15 	debt must not exceed the borrowing maximums in paragraph (b).
33.16 	(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:
33.17 	(1) grade level 1, $7,500;
33.18 	(2) grade level 2, $15,000;
33.19 	(3) grade level 3, $22,500;
33.20 	(4) grade level 4, $30,000; and
33.21 	(5) grade level 5, $37,500.
33.22 	(c) (b) The principal maximum loan amount of a SELF V or subsequent phase 
33.23 	loan to students enrolled in a bachelor's degree program, postbaccalaureate, or graduate 
33.24 	program must not exceed $10,000 per grade level be determined annually by the office. 
33.25 	For all other eligible students, the principal amount of the loan must not exceed $7,500 per 
33.26 	grade level. The aggregate principal amount of all loans made subject to this paragraph to 
33.27 	a student as an undergraduate and graduate student must not exceed $70,000 $140,000. 
33.28 	The amount of the loan must not exceed the cost of attendance as determined by the 
33.29 	eligible institution less all other financial aid, including PLUS loans or other similar parent 
33.30 	loans borrowed on the student's behalf. The cumulative SELF loan debt must not exceed 
33.31 	the borrowing maximums in paragraph (d) (c).
33.32 	(d) (c)(1) The cumulative borrowing maximums must be determined annually by the 
33.33 	office for SELF V loans and subsequent phases for students enrolled in a bachelor's degree 
33.34 	program or postbaccalaureate program are:. In determining the cumulative borrowing 
33.35 	maximums, the office shall, among other considerations, take into consideration the 
34.1 	maximum SELF loan amount, student financing needs, funding capacity for the SELF 
34.2 	program, delinquency and default loss management, and current financial market 
34.3 	conditions.
34.4 	(i) grade level 1, $10,000;
34.5 	(ii) grade level 2, $20,000;
34.6 	(iii) grade level 3, $30,000;
34.7 	(iv) grade level 4, $40,000; and
34.8 	(v) grade level 5, $50,000.
34.9 	(2) For graduate level students, the borrowing limit is $10,000 per nine-month 
34.10 	academic year, with a cumulative maximum for all SELF debt of $70,000.
34.11 	(3) (2) For all other eligible students, the cumulative borrowing maximums for 
34.12 	SELF V loans and subsequent phases are:
34.13 	(i) grade level 1, $7,500;
34.14 	(ii) grade level 2, $15,000;
34.15 	(iii) grade level 3, $22,500;
34.16 	(iv) grade level 4, $30,000; and
34.17 	(v) grade level 5, $37,500.

34.18 	Sec. 11. Minnesota Statutes 2014, section 136A.61, is amended to read:
34.19 	136A.61 POLICY.
34.20 	The legislature has found and hereby declares that the availability of legitimate 
34.21 	courses and programs leading to academic degrees offered by responsible private 
34.22 	not-for-profit nonprofit and for-profit institutions of postsecondary education and the 
34.23 	existence of legitimate private colleges and universities are in the best interests of the 
34.24 	people of this state. The legislature has found and declares that the state can provide 
34.25 	assistance and protection for persons choosing private institutions and programs, by 
34.26 	establishing policies and procedures to assure the authenticity and legitimacy of private 
34.27 	postsecondary education institutions and programs. The legislature has also found and 
34.28 	declares that this same policy applies to any private and public postsecondary educational 
34.29 	institution located in another state or country which offers or makes available to a 
34.30 	Minnesota resident any course, program or educational activity which does not require 
34.31 	the leaving of the state for its completion.

34.32 	Sec. 12. Minnesota Statutes 2014, section 136A.63, subdivision 2, is amended to read:
34.33 		Subd. 2.Sale of an institution. Within 30 days of a change of its ownership a school 
34.34 	must submit a registration renewal application, all usual and ordinary information and 
35.1 	materials for an initial registration, and applicable registration fees for a new institution. 
35.2 	For purposes of this subdivision, "change of ownership" means a merger or consolidation 
35.3 	with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 
35.4 	the assets of a school; the transfer of a controlling interest of at least 51 percent of the 
35.5 	school's stock; or a change in the not-for-profit nonprofit or for-profit status of a school.

35.6 	Sec. 13. Minnesota Statutes 2014, section 136A.65, subdivision 4, is amended to read:
35.7 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have 
35.8 	its degree or degrees and name approved must substantially meet the following criteria:
35.9 	(1) the school has an organizational framework with administrative and teaching 
35.10 	personnel to provide the educational programs offered;
35.11 	(2) the school has financial resources sufficient to meet the school's financial 
35.12 	obligations, including refunding tuition and other charges consistent with its stated policy 
35.13 	if the institution is dissolved, or if claims for refunds are made, to provide service to the 
35.14 	students as promised, and to provide educational programs leading to degrees as offered;
35.15 	(3) the school operates in conformity with generally accepted budgeting and 
35.16 	accounting principles;
35.17 	(4) the school provides an educational program leading to the degree it offers;
35.18 	(5) the school provides appropriate and accessible library, laboratory, and other 
35.19 	physical facilities to support the educational program offered;
35.20 	(6) the school has a policy on freedom or limitation of expression and inquiry for 
35.21 	faculty and students which is published or available on request;
35.22 	(7) the school uses only publications and advertisements which are truthful and do 
35.23 	not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 
35.24 	school, its personnel, programs, services, or occupational opportunities for its graduates 
35.25 	for promotion and student recruitment;
35.26 	(8) the school's compensated recruiting agents who are operating in Minnesota 
35.27 	identify themselves as agents of the school when talking to or corresponding with students 
35.28 	and prospective students; and
35.29 	(9) the school provides information to students and prospective students concerning:
35.30 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
35.31 	suspension, and dismissal;
35.32 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
35.33 	and experience and for courses offered by the school;
35.34 	(iii) current schedules of fees, charges for tuition, required supplies, student 
35.35 	activities, housing, and all other standard charges;
36.1 	(iv) policies regarding refunds and adjustments for withdrawal or modification 
36.2 	of enrollment status; and
36.3 	(v) procedures and standards used for selection of recipients and the terms of 
36.4 	payment and repayment for any financial aid program.; and
36.5 	(10) the school must not withhold a student's official transcript because the student is 
36.6 	in arrears or in default on any loan issued by the school to the student if the loan qualifies 
36.7 	as an institutional loan under United States Code, title 11, section 523(a)(8)(b).
36.8 	(b) An application for degree approval must also include:
36.9 	(i) title of degree and formal recognition awarded;
36.10 	(ii) location where such degree will be offered;
36.11 	(iii) proposed implementation date of the degree;
36.12 	(iv) admissions requirements for the degree;
36.13 	(v) length of the degree;
36.14 	(vi) projected enrollment for a period of five years;
36.15 	(vii) the curriculum required for the degree, including course syllabi or outlines;
36.16 	(viii) statement of academic and administrative mechanisms planned for monitoring 
36.17 	the quality of the proposed degree;
36.18 	(ix) statement of satisfaction of professional licensure criteria, if applicable;
36.19 	(x) documentation of the availability of clinical, internship, externship, or practicum 
36.20 	sites, if applicable; and
36.21 	(xi) statement of how the degree fulfills the institution's mission and goals, 
36.22 	complements existing degrees, and contributes to the school's viability.

36.23 	Sec. 14. Minnesota Statutes 2014, section 136A.65, subdivision 7, is amended to read:
36.24 		Subd. 7.Conditional approval. The office may grant conditional approval for a 
36.25 	degree or use of a term in its name for a period of less than one year if doing so would be 
36.26 	in the best interests of currently enrolled students or prospective students. New schools 
36.27 	may be granted conditional approval for degrees or names annually for a period not to 
36.28 	exceed five years to allow them the opportunity to apply for and receive accreditation as 
36.29 	required in subdivision 1a. A new school granted conditional approval may be allowed 
36.30 	to continue as a registered institution in order to complete an accreditation process upon 
36.31 	terms and conditions the office determines.

36.32 	Sec. 15. Minnesota Statutes 2014, section 136A.657, subdivision 1, is amended to read:
36.33 		Subdivision 1.Exemption. Any school or any department or branch of a school (a) 
36.34 	which is substantially owned, operated or supported by a bona fide church or religious 
37.1 	organization; (b) whose programs are primarily designed for, aimed at and attended by 
37.2 	persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 
37.3 	church or religious organization; and (c) whose programs are primarily intended to prepare 
37.4 	its students to become ministers of, to enter into some other vocation closely related to, or 
37.5 	to conduct their lives in consonance with, the particular faith of that church or religious 
37.6 	organization, is exempt from the provisions of sections 136A.61 to 136A.71 136A.834.

37.7 	Sec. 16. Minnesota Statutes 2014, section 136A.657, subdivision 3, is amended to read:
37.8 		Subd. 3.Scope. Nothing in sections 136A.61 to 136A.71 136A.834, or the rules 
37.9 	adopted pursuant thereto, shall be interpreted as permitting the office to determine the 
37.10 	truth or falsity of any particular set of religious beliefs.

37.11 	Sec. 17. Minnesota Statutes 2014, section 136A.67, is amended to read:
37.12 	136A.67 REGISTRATION REPRESENTATIONS.
37.13 	No school and none of its officials or employees shall advertise or represent in any 
37.14 	manner that such school is approved or accredited by the office or the state of Minnesota, 
37.15 	except a school which is duly registered with the office, or any of its officials or 
37.16 	employees, may represent in advertising and shall disclose in catalogues, applications, and 
37.17 	enrollment materials that the school is registered with the office by prominently displaying 
37.18 	the following statement: "(Name of school) is registered as a private institution with the 
37.19 	office pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of the 
37.20 	institution. Credits earned at the institution may not transfer to all other institutions." In 
37.21 	addition, all registered schools shall publish in the school catalog or student handbook the 
37.22 	name, street address, telephone number, and Web site address of the office.

37.23 	Sec. 18. Minnesota Statutes 2014, section 136A.87, is amended to read:
37.24 	136A.87 PLANNING INFORMATION FOR POSTSECONDARY 
37.25 	EDUCATION.
37.26 	The office shall make available to all residents beginning in 7th grade through 
37.27 	adulthood information about planning and preparing for postsecondary opportunities. 
37.28 	Information must be provided to all 7th grade students and their parents annually 
37.29 	by September 30 about planning for their postsecondary education. The office may 
37.30 	also provide information to high school students and their parents, to adults, and to 
37.31 	out-of-school youth. The information provided may include the following:
37.32 	(1) the need to start planning early;
38.1 	(2) the availability of assistance in educational planning from educational institutions 
38.2 	and other organizations;
38.3 	(3) suggestions for studying effectively during high school;
38.4 	(4) high school courses necessary to be adequately prepared for postsecondary 
38.5 	education;
38.6 	(5) encouragement to involve parents actively in planning for all phases of education;
38.7 	(6) information about postsecondary education and training opportunities existing 
38.8 	in the state, their respective missions and expectations for students, their preparation 
38.9 	requirements, admission requirements, and student placement;
38.10 	(7) ways to evaluate and select postsecondary institutions;
38.11 	(8) the process of transferring credits among Minnesota postsecondary institutions 
38.12 	and systems;
38.13 	(9) the costs of postsecondary education and the availability of financial assistance 
38.14 	in meeting these costs, including specific information about the Minnesota Promise and 
38.15 	achieve scholarship program;
38.16 	(10) the interrelationship of assistance from student financial aid, public assistance, 
38.17 	and job training programs; and
38.18 	(11) financial planning for postsecondary education.

38.19 	Sec. 19. Minnesota Statutes 2014, section 136G.05, subdivision 7, is amended to read:
38.20 		Subd. 7.Marketing. The commissioner shall make parents and other interested 
38.21 	individuals aware of the availability and advantages of the program as a way to save for 
38.22 	higher education costs. The cost of these promotional efforts may not be funded with fees 
38.23 	imposed on participants.

38.24 	Sec. 20. Minnesota Statutes 2014, section 141.21, subdivision 5, is amended to read:
38.25 		Subd. 5.Private career school. "Private career school" means any a person, within 
38.26 	or outside the state, who maintains, advertises, administers, solicits for, or conducts any 
38.27 	program at less than an associate degree level and; is not registered as a private institution 
38.28 	under sections 136A.61 to 136A.71; and is not specifically exempted by section 141.35 
38.29 	or 141.37. School also means any person, within or outside the state, who maintains, 
38.30 	advertises, administers, solicits for, or conducts any program at less than an associate 
38.31 	degree level, is not registered as a private institution pursuant to sections 136A.61 to 
38.32 	136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.

38.33 	Sec. 21. Minnesota Statutes 2014, section 141.21, subdivision 6a, is amended to read:
39.1 		Subd. 6a.Multiple location. "Multiple location" means any site where classes or 
39.2 	administrative services are provided to students and which that has a street address that is 
39.3 	different than the street address found on the school's private career school school's license.

39.4 	Sec. 22. Minnesota Statutes 2014, section 141.21, subdivision 9, is amended to read:
39.5 		Subd. 9.Distance education private career school. "Distance education private 
39.6 	career school" means a school that establishes, keeps, or maintains a facility or location 
39.7 	where a program is offered through distance instruction.

39.8 	Sec. 23. Minnesota Statutes 2014, section 141.25, is amended to read:
39.9 	141.25 LICENSURE.
39.10 		Subdivision 1.Required. A private career school must not maintain, advertise, 
39.11 	solicit for, administer, or conduct any program in Minnesota without first obtaining a 
39.12 	license from the office.
39.13 		Subd. 2.Contract unenforceable. A contract entered into with a person for a 
39.14 	program by or on behalf of a person operating a private career school to which a license 
39.15 	has not been issued under sections 141.21 to 141.35, is unenforceable in any action.
39.16 		Subd. 2a.Refunds. If a contract is deemed unenforceable under subdivision 2, a 
39.17 	private career school must refund tuition, fees, and other charges received from a student 
39.18 	or on behalf of a student within 30 days of receiving written notification and demand for 
39.19 	refund from the Minnesota office of Higher Education.
39.20 		Subd. 3.Application. Application for a license shall be on forms prepared and 
39.21 	furnished by the office, and shall include the following and other information as the 
39.22 	office may require:
39.23 	(1) the title or name of the private career school, ownership and controlling officers, 
39.24 	members, managing employees, and director;
39.25 	(2) the specific programs which will be offered and the specific purposes of the 
39.26 	instruction;
39.27 	(3) the place or places where the instruction will be given;
39.28 	(4) a listing of the equipment available for instruction in each program;
39.29 	(5) the maximum enrollment to be accommodated with equipment available in 
39.30 	each specified program;
39.31 	(6) the qualifications of instructors and supervisors in each specified program;
39.32 	(7) a current balance sheet, income statement, and adequate supporting 
39.33 	documentation, prepared and certified by an independent public accountant or CPA;
40.1 	(8) copies of all media advertising and promotional literature and brochures or 
40.2 	electronic display currently used or reasonably expected to be used by the private career 
40.3 	school;
40.4 	(9) copies of all Minnesota enrollment agreement forms and contract forms and all 
40.5 	enrollment agreement forms and contract forms used in Minnesota; and
40.6 	(10) gross income earned in the preceding year from student tuition, fees, and other 
40.7 	required institutional charges, unless the private career school files with the office a surety 
40.8 	bond equal to at least $250,000 as described in subdivision 5.
40.9 		Subd. 4.Certification. Each application shall be signed and certified to under 
40.10 	oath by the proprietor if the applicant is a proprietorship, by the managing partner if the 
40.11 	applicant is a partnership, or by the authorized officers of the applicant if the applicant is a 
40.12 	corporation, association, company, firm, society or trust.
40.13 		Subd. 5.Bond. (a) No license shall be issued to any private career school which 
40.14 	maintains, conducts, solicits for, or advertises within the state of Minnesota any program, 
40.15 	unless the applicant files with the office a continuous corporate surety bond written 
40.16 	by a company authorized to do business in Minnesota conditioned upon the faithful 
40.17 	performance of all contracts and agreements with students made by the applicant.
40.18 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's 
40.19 	gross income from student tuition, fees, and other required institutional charges, but in 
40.20 	no event less than $10,000 nor greater than $250,000, except that a private career school 
40.21 	may deposit a greater amount at its own discretion. A private career school in each annual 
40.22 	application for licensure must compute the amount of the surety bond and verify that the 
40.23 	amount of the surety bond complies with this subdivision, unless the private career school 
40.24 	maintains a surety bond equal to at least $250,000. A private career school that operates at 
40.25 	two or more locations may combine gross income from student tuition, fees, and other 
40.26 	required institutional charges for all locations for the purpose of determining the annual 
40.27 	surety bond requirement. The gross tuition and fees used to determine the amount of the 
40.28 	surety bond required for a private career school having a license for the sole purpose of 
40.29 	recruiting students in Minnesota shall be only that paid to the private career school by the 
40.30 	students recruited from Minnesota.
40.31 	(2) A school person required to obtain a private career school license due to the use 
40.32 	of "academy," "institute," "college," or "university" in its name and which is also licensed 
40.33 	by another state agency or board shall be required to provide a school bond of $10,000.
40.34 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
40.35 	cause of action against the applicant arising at any time after the bond is filed and before 
40.36 	it is canceled for breach of any contract or agreement made by the applicant with any 
41.1 	student. The aggregate liability of the surety for all breaches of the conditions of the 
41.2 	bond shall not exceed the principal sum deposited by the private career school under 
41.3 	paragraph (b). The surety of any bond may cancel it upon giving 60 days' notice in writing 
41.4 	to the office and shall be relieved of liability for any breach of condition occurring after 
41.5 	the effective date of cancellation.
41.6 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
41.7 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
41.8 	letter of credit issued by a financial institution equal to the amount of the required surety 
41.9 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
41.10 	aggregate market value equal to the amount of the required surety bond.
41.11 	(e) Failure of a private career school to post and maintain the required surety bond 
41.12 	or deposit under paragraph (d) shall result in denial, suspension, or revocation of the 
41.13 	school's license.
41.14 		Subd. 6.Resident agent. Private career schools located outside the state of 
41.15 	Minnesota that offer, advertise, solicit for, or conduct any program within the state of 
41.16 	Minnesota shall first file with the secretary of state a sworn statement designating a resident 
41.17 	agent authorized to receive service of process. The statement shall designate the secretary 
41.18 	of state as resident agent for service of process in the absence of a designated agent. If 
41.19 	a private career school fails to file the statement, the secretary of state is designated as 
41.20 	the resident agent authorized to receive service of process. The authorization shall be 
41.21 	irrevocable as to causes of action arising out of transactions occurring prior to the filing of 
41.22 	written notice of withdrawal from the state of Minnesota filed with the secretary of state.
41.23 		Subd. 7.Minimum standards. A license shall be issued if the office first determines:
41.24 	(1) that the applicant has a sound financial condition with sufficient resources 
41.25 	available to:
41.26 	(i) meet the private career school's financial obligations;
41.27 	(ii) refund all tuition and other charges, within a reasonable period of time, in the 
41.28 	event of dissolution of the private career school or in the event of any justifiable claims for 
41.29 	refund against the private career school by the student body;
41.30 	(iii) provide adequate service to its students and prospective students; and
41.31 	(iv) maintain and support the private career school;
41.32 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment 
41.33 	and the necessary number of work stations to prepare adequately the students currently 
41.34 	enrolled, and those proposed to be enrolled;
41.35 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
41.36 	provide the educational programs contemplated;
42.1 	(4) that the private career school has an organizational framework with administrative 
42.2 	and instructional personnel to provide the programs and services it intends to offer;
42.3 	(5) that the premises and conditions under which the students work and study are 
42.4 	sanitary, healthful, and safe;
42.5 	(6) (5) that the quality and content of each occupational course or program of study 
42.6 	provides education and adequate preparation to enrolled students for entry level positions 
42.7 	in the occupation for which prepared;
42.8 	(7) (6) that the premises and conditions where the students work and study and the 
42.9 	student living quarters which are owned, maintained, recommended, or approved by 
42.10 	the applicant for students are sanitary, healthful, and safe, as evidenced by certificate 
42.11 	of occupancy issued by the municipality or county where the private career school 
42.12 	is physically situated, a fire inspection by the local or state fire marshal, or another 
42.13 	verification deemed acceptable by the office;
42.14 	(8) (7) that the contract or enrollment agreement used by the private career school 
42.15 	complies with the provisions in section 141.265;
42.16 	(9) (8) that contracts and agreements do not contain a wage assignment provision 
42.17 	or a confession of judgment clause; and
42.18 	(10) (9) that there has been no adjudication of fraud or misrepresentation in any 
42.19 	criminal, civil, or administrative proceeding in any jurisdiction against the private career 
42.20 	school or its owner, officers, agents, or sponsoring organization.
42.21 		Subd. 8.Fees and terms of license. An application for an initial license under 
42.22 	sections 141.21 to 141.35 shall be accompanied by a nonrefundable application fee as 
42.23 	provided in section 141.255 that is sufficient to recover, but not exceed, the administrative 
42.24 	costs of the office.
42.25 	All licenses shall expire one year from the date issued by the office, except as 
42.26 	provided in section 141.251.
42.27 		Subd. 9.Catalog, brochure, or electronic display. Before a license is issued to 
42.28 	a private career school, the private career school shall furnish to the office a catalog, 
42.29 	brochure, or electronic display including:
42.30 	(1) identifying data, such as volume number and date of publication;
42.31 	(2) name and address of the private career school and its governing body and officials;
42.32 	(3) a calendar of the private career school showing legal holidays, beginning and 
42.33 	ending dates of each course quarter, term, or semester, and other important dates;
42.34 	(4) the private career school policy and regulations on enrollment including dates 
42.35 	and specific entrance requirements for each program;
43.1 	(5) the private career school policy and regulations about leave, absences, class cuts, 
43.2 	make-up work, tardiness, and interruptions for unsatisfactory attendance;
43.3 	(6) the private career school policy and regulations about standards of progress 
43.4 	for the student including the grading system of the private career school, the minimum 
43.5 	grades considered satisfactory, conditions for interruption for unsatisfactory grades or 
43.6 	progress, a description of any probationary period allowed by the private career school, 
43.7 	and conditions of reentrance for those dismissed for unsatisfactory progress;
43.8 	(7) the private career school policy and regulations about student conduct and 
43.9 	conditions for dismissal for unsatisfactory conduct;
43.10 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
43.11 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
43.12 	(9) the private career school policy and regulations, including an explanation of 
43.13 	section 141.271, about refunding tuition, fees, and other charges if the student does not 
43.14 	enter the program, withdraws from the program, or the program is discontinued;
43.15 	(10) a description of the available facilities and equipment;
43.16 	(11) a course outline syllabus for each course offered showing course objectives, 
43.17 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
43.18 	hours, or credits to be spent on each subject or unit;
43.19 	(12) the private career school policy and regulations about granting credit for 
43.20 	previous education and preparation;
43.21 	(13) a notice to students relating to the transferability of any credits earned at the 
43.22 	private career school to other institutions;
43.23 	(14) a procedure for investigating and resolving student complaints; and
43.24 	(15) the name and address of the Minnesota office of Higher Education.
43.25 	A private career school that is exclusively a distance education school is exempt 
43.26 	from clauses (3) and (5).
43.27 		Subd. 10.Placement records. (a) Before a license is reissued to a private career 
43.28 	school that offers, advertises or implies a placement service, the private career school shall 
43.29 	file with the office for the past year and thereafter at reasonable intervals determined by 
43.30 	the office, a certified copy of the private career school's placement record, containing a list 
43.31 	of graduates, a description of their jobs, names of their employers, and other information 
43.32 	as the office may prescribe.
43.33 	(b) Each private career school that offers a placement service shall furnish to each 
43.34 	prospective student, upon request, prior to enrollment, written information concerning 
43.35 	the percentage of the previous year's graduates who were placed in the occupation for 
43.36 	which prepared or in related employment.
44.1 		Subd. 12.Permanent records. A private career school licensed under this chapter 
44.2 	and located in Minnesota shall maintain a permanent record for each student for 50 years 
44.3 	from the last date of the student's attendance. A private career school licensed under this 
44.4 	chapter and offering distance instruction to a student located in Minnesota shall maintain 
44.5 	a permanent record for each Minnesota student for 50 years from the last date of the 
44.6 	student's attendance. Records include school transcripts, documents, and files containing 
44.7 	student data about academic credits earned, courses completed, grades awarded, degrees 
44.8 	awarded, and periods of attendance. To preserve permanent records, a private career 
44.9 	school shall submit a plan that meets the following requirements:
44.10 	(1) at least one copy of the records must be held in a secure, fireproof depository;
44.11 	(2) an appropriate official must be designated to provide a student with copies of 
44.12 	records or a transcript upon request;
44.13 	(3) an alternative method, approved by the office, of complying with clauses (1) and 
44.14 	(2) must be established if the private career school ceases to exist; and
44.15 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
44.16 	$20,000 if the private career school has no binding agreement approved by the office, for 
44.17 	preserving student records. The bond shall run to the state of Minnesota.
44.18 		Subd. 13.Private career schools licensed by another state agency or board. A 
44.19 	private career school required to obtain a private career school license due to the use of 
44.20 	"academy," "institute," "college," or "university" in its name or licensed for the purpose of 
44.21 	participating in state financial aid under chapter 136A, and which is also licensed by another 
44.22 	state agency or board shall be required to satisfy only the requirements of subdivisions 3, 
44.23 	clauses (1), (2), (3), (5), (7), and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 
44.24 	8; 9, clause (13); and 12. A distance education school located in another state, or a school 
44.25 	licensed to recruit Minnesota residents for attendance at a school outside of this state, or a 
44.26 	school licensed by another state agency as its primary licensing body, may continue to use 
44.27 	the school's name as permitted by its home state or its primary licensing body.

44.28 	Sec. 24. Minnesota Statutes 2014, section 141.251, subdivision 2, is amended to read:
44.29 		Subd. 2.Conditions. The office shall adopt rules establishing the conditions for 
44.30 	renewal of a license. The conditions shall permit two levels of renewal based on the record 
44.31 	of the private career school. A private career school that has demonstrated the quality of 
44.32 	its program and operation through longevity and performance in the state may renew its 
44.33 	license based on a relaxed standard of scrutiny. A private career school that has been in 
44.34 	operation in Minnesota for a limited period of time or that has not performed adequately 
44.35 	on performance indicators shall renew its license based on a strict standard of scrutiny. 
45.1 	The office shall specify minimum longevity standards and performance indicators that 
45.2 	must be met before a private career school may be permitted to operate under the relaxed 
45.3 	standard of scrutiny. The performance indicators used in this determination shall include, 
45.4 	but not be limited to: regional or national accreditation, loan default rates, placement rate 
45.5 	of graduates, student withdrawal rates, audit results, student complaints, and school status 
45.6 	with the United States Department of Education. Private career schools that meet the 
45.7 	requirements established in rule shall be required to submit a full relicensure report once 
45.8 	every four years, and in the interim years will be exempt from the requirements of section 
45.9 	141.25, subdivision 3, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700, 
45.10 	subpart 6; and 4880.2100, subpart 4.

45.11 	Sec. 25. Minnesota Statutes 2014, section 141.255, is amended to read:
45.12 	141.255 FEES.
45.13 		Subdivision 1.Initial licensure fee. The office processing fee for an initial licensure 
45.14 	application is:
45.15 	(1) $2,500 for a private career school that will offer no more than one program 
45.16 	during its first year of operation;
45.17 	(2) $750 for a private career school licensed exclusively due to the use of the term 
45.18 	"college," "university," "academy," or "institute" in its name, or licensed exclusively in 
45.19 	order to participate in state grant or SELF loan financial aid programs; and
45.20 	(3) $2,500, plus $500 for each additional program offered by the private career 
45.21 	school, for a private career school during its first year of operation.
45.22 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a 
45.23 	renewal licensure application is:
45.24 	(1) for a private career school that offers one program, the license renewal fee is 
45.25 	$1,150;
45.26 	(2) for a private career school that offers more than one program, the license renewal 
45.27 	fee is $1,150, plus $200 for each additional program with a maximum renewal licensing 
45.28 	fee of $2,000;
45.29 	(3) for a private career school licensed exclusively due to the use of the term "college," 
45.30 	"university," "academy," or "institute" in its name, the license renewal fee is $750; and
45.31 	(4) for a private career school licensed by another state agency and also licensed 
45.32 	with the office exclusively in order to participate in state student aid programs, the license 
45.33 	renewal fee is $750.
46.1 	(b) If a license renewal application is not received by the office by the close of 
46.2 	business at least 60 days before the expiration of the current license, a late fee of $100 
46.3 	per business day, not to exceed $3,000, shall be assessed.
46.4 		Subd. 4.Program addition fee. The office processing fee for adding a program to 
46.5 	those that are currently offered by the private career school is $500 per program.
46.6 		Subd. 5.Visit or consulting fee. If the office determines that a fact-finding visit 
46.7 	or outside consultant is necessary to review or evaluate any new or revised program, the 
46.8 	office shall be reimbursed for the expenses incurred related to the review as follows:
46.9 	(1) $400 for the team base fee or for a paper review conducted by a consultant if the 
46.10 	office determines that a fact-finding visit is not required;
46.11 	(2) $300 for each day or part thereof on site per team member; and
46.12 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
46.13 	by team members.
46.14 		Subd. 6.Modification fee. The fee for modification of any existing program is 
46.15 	$100 and is due if there is:
46.16 	(1) an increase or decrease of 25 percent or more, from the original date of program 
46.17 	approval, in clock hours, credit hours, or calendar length of an existing program;
46.18 	(2) a change in academic measurement from clock hours to credit hours or vice 
46.19 	versa; or
46.20 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
46.21 	the objectives, content, or methods of delivery.
46.22 		Subd. 7.Solicitor permit fee. The solicitor permit fee is $350 and must be paid 
46.23 	annually.
46.24 		Subd. 8.Multiple location fee. Private career schools wishing to operate at 
46.25 	multiple locations must pay:
46.26 	(1) $250 per location, for locations two to five; and
46.27 	(2) an additional $100 for each location over five.
46.28 		Subd. 9.Student transcript fee. The fee for a student transcript requested from a 
46.29 	closed private career school whose records are held by the office is $15, with a maximum 
46.30 	of five transcripts per request.
46.31 		Subd. 10.Public office documents; copies. The rate for copies of any public 
46.32 	office document shall be 50 cents per page.

46.33 	Sec. 26. Minnesota Statutes 2014, section 141.26, is amended to read:
46.34 	141.26 PERMITS FOR SOLICITORS.
47.1 		Subdivision 1.Required. A solicitor representing a private career school must 
47.2 	obtain a solicitor's permit from the office before soliciting students to enroll in such the 
47.3 	private career school. Such permit shall expire one year following the date of issuance. 
47.4 	Application for renewal of permit shall be made annually.
47.5 		Subd. 2.Application for permit. (a) The application for the permit shall state the 
47.6 	full name, address, previous employment, and such other information concerning the 
47.7 	solicitor applicant as the office may require.
47.8 	(b) The application shall have attached to it a certified affidavit signed by a private 
47.9 	career school official and the solicitor attesting to the fact that the applicant has been 
47.10 	furnished a copy, has read and has knowledge of the provisions of this chapter and 
47.11 	Minnesota Rules.
47.12 		Subd. 3.Refusal of permit. No permit shall be issued to any solicitor unless such 
47.13 	solicitor files with the office a continuous corporate surety bond in the sum of $2,000 
47.14 	conditioned upon the faithful performance of all contracts and agreements with the students 
47.15 	made by the solicitor. Such bonds shall run to the state of Minnesota and to any person who 
47.16 	may have cause of action against the applicant arising at any time after the bond is filed and 
47.17 	before it is canceled for breach of any contract or agreement made by the solicitor with any 
47.18 	student. The aggregate liability of the surety for all breaches of the conditions of the bond 
47.19 	shall not exceed the principal sum of $2,000. The surety of any such bond may cancel it 
47.20 	upon giving 60 days' notice in writing to the office and shall be relieved of liability for any 
47.21 	breach of condition occurring after the effective date of cancellation. In lieu of bond, the 
47.22 	solicitor may deposit with the commissioner of management and budget the sum of $2,000.
47.23 		Subd. 4.Additional permits. A solicitor representing more than one private career 
47.24 	school must obtain a separate permit for each private career school represented; however 
47.25 	when a solicitor represents private career schools having a common ownership, only one 
47.26 	permit shall be required.
47.27 		Subd. 5.Fee. The initial and renewal application for each permit shall be 
47.28 	accompanied by a nonrefundable fee under section 141.255.
47.29 		Subd. 6.Contract; validity. Any contract entered into by a solicitor for a licensed 
47.30 	private career school shall be unenforceable in any action brought thereon if the solicitor 
47.31 	does not hold a valid permit as required by this section.

47.32 	Sec. 27. Minnesota Statutes 2014, section 141.265, is amended to read:
47.33 	141.265 INFORMATION TO STUDENTS.
47.34 		Subdivision 1.Catalog, brochure, or electronic display. A private career school 
47.35 	or its agent must provide the catalog, brochure, or electronic display required in section 
48.1 	141.25, subdivision 9, to a prospective student in a time or manner that gives the 
48.2 	prospective student at least five days to read the catalog, brochure, or electronic display 
48.3 	before signing a contract or enrollment agreement or before being accepted by a private 
48.4 	career school that does not use a written contract or enrollment agreement.
48.5 		Subd. 2.Contract information. A contract or enrollment agreement used by a 
48.6 	private career school must include at least the following:
48.7 	(1) the name and address of the private career school, clearly stated;
48.8 	(2) a clear and conspicuous disclosure that the agreement is a legally binding 
48.9 	instrument upon written acceptance of the student by the private career school unless 
48.10 	canceled under section 141.271;
48.11 	(3) the private career school's cancellation and refund policy that shall be clearly and 
48.12 	conspicuously entitled "Buyer's Right to Cancel";
48.13 	(4) a clear statement of total cost of the program including tuition and all other 
48.14 	charges;
48.15 	(5) the name and description of the program, including the number of hours or 
48.16 	credits of classroom instruction, or distance instruction, that shall be included; and
48.17 	(6) a clear and conspicuous explanation of the form and means of notice the student 
48.18 	should use in the event the student elects to cancel the contract or sale, the effective 
48.19 	date of cancellation, and the name and address of the seller to which the notice should 
48.20 	be sent or delivered.
48.21 	The contract or enrollment agreement must not include a wage assignment provision or a 
48.22 	confession of judgment clause.
48.23 		Subd. 3.Contract copies. Immediately upon signing of the enrollment agreement 
48.24 	or the contract by a prospective student, the private career school or agent shall furnish to 
48.25 	the prospective student an exact duplicate copy of the enrollment agreement or contract.

48.26 	Sec. 28. Minnesota Statutes 2014, section 141.271, subdivision 1a, is amended to read:
48.27 		Subd. 1a.Notice; right to refund. Every private career school shall notify each 
48.28 	student, in writing, of acceptance or rejection. In the event that the student is rejected by 
48.29 	the private career school, all tuition, fees and other charges shall be refunded.

48.30 	Sec. 29. Minnesota Statutes 2014, section 141.271, subdivision 1b, is amended to read:
48.31 		Subd. 1b.Short-term programs. Licensed private career schools conducting 
48.32 	programs not exceeding 40 hours in length shall not be required to make a full refund once 
48.33 	a program has commenced and shall be allowed to prorate any refund based on the actual 
49.1 	length of the program as stated in the private career school catalog or advertisements and 
49.2 	the number of hours attended by the student.

49.3 	Sec. 30. Minnesota Statutes 2014, section 141.271, subdivision 3, is amended to read:
49.4 		Subd. 3.Schools not using written contracts Notice; amount. (a) Notwithstanding 
49.5 	anything to the contrary, A private career school that does not use a written contract or 
49.6 	enrollment agreement shall refund all tuition, fees and other charges paid by a student 
49.7 	if the student gives written notice of cancellation within five business days after the day 
49.8 	on which the student is accepted by the private career school regardless of whether the 
49.9 	program has started.
49.10 	(b) When a student has been accepted by the private career school and gives written 
49.11 	notice of cancellation following the fifth business day after the day of acceptance by the 
49.12 	private career school, but before the start of the program, in the case of resident private 
49.13 	career schools, or before the first lesson has been serviced by the private career school, in 
49.14 	the case of distance education schools, all tuition, fees and other charges, except 15 percent 
49.15 	of the total cost of the program but not to exceed $50, shall be refunded to the student.

49.16 	Sec. 31. Minnesota Statutes 2014, section 141.271, subdivision 5, is amended to read:
49.17 		Subd. 5.Distance education schools Proration. When a student has been accepted 
49.18 	by a distance education private career school and gives written notice of cancellation after 
49.19 	the first lesson has been completed by the student and serviced by the school program of 
49.20 	instruction has begun, but before completion of 75 percent of the program, the amount 
49.21 	charged for tuition, fees and all other charges for the completed lessons shall be prorated 
49.22 	based on the number of days in the term as a portion of the total charges for tuition, fees 
49.23 	and all other charges. An additional 25 percent of the total cost of the program may be 
49.24 	added but shall not exceed $75 $100. After completion of 75 percent of the program, 
49.25 	no refunds are required.

49.26 	Sec. 32. Minnesota Statutes 2014, section 141.271, subdivision 7, is amended to read:
49.27 		Subd. 7.Equipment and supplies. The fair market retail price, if separately stated 
49.28 	in the catalog and contract or enrollment agreement, of equipment or supplies furnished to 
49.29 	the student, which the student fails to return in condition suitable for resale, and which 
49.30 	may reasonably be resold, within ten business days following cancellation may be retained 
49.31 	by the private career school and may be deducted from the total cost for tuition, fees and 
49.32 	all other charges when computing refunds.
50.1 	An overstatement of the fair market retail price of any equipment or supplies 
50.2 	furnished the student shall be considered inconsistent with this provision.

50.3 	Sec. 33. Minnesota Statutes 2014, section 141.271, subdivision 8, is amended to read:
50.4 		Subd. 8.Time of refund. Each private career school shall acknowledge in writing 
50.5 	any valid notice of cancellation within ten business days after the receipt of such notice 
50.6 	and within 30 business days shall refund to the student any amounts due and arrange for 
50.7 	termination of the student's obligation to pay any sum in excess of that due under the 
50.8 	cancellation and refund policy.

50.9 	Sec. 34. Minnesota Statutes 2014, section 141.271, subdivision 9, is amended to read:
50.10 		Subd. 9.Limitation. A private career school cannot make its refund policy 
50.11 	conditional upon compliance with the school's regulations or rules of conduct.

50.12 	Sec. 35. Minnesota Statutes 2014, section 141.271, subdivision 10, is amended to read:
50.13 		Subd. 10.Cancellation occurrence. Written notice of cancellation shall take place 
50.14 	on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
50.15 	carried, it shall occur on the date the notice is delivered to the private career school. If 
50.16 	a student has not attended class for a period of 21 consecutive days without contacting 
50.17 	the private career school to indicate an intent to continue in school or otherwise making 
50.18 	arrangements concerning the absence, the student is considered to have withdrawn from 
50.19 	school for all purposes as of the student's last documented date of attendance.

50.20 	Sec. 36. Minnesota Statutes 2014, section 141.271, subdivision 12, is amended to read:
50.21 		Subd. 12.Instrument not to be negotiated. A private career school shall not 
50.22 	negotiate any promissory instrument received as payment of tuition or other charge prior 
50.23 	to completion of 50 percent of the program, except that prior to that time, instruments may 
50.24 	be transferred by assignment to purchasers who shall be subject to all defenses available 
50.25 	against the private career school named as payee.

50.26 	Sec. 37. Minnesota Statutes 2014, section 141.271, subdivision 13, is amended to read:
50.27 		Subd. 13.Cancellation of enrollment. If a student's enrollment in a private career 
50.28 	school is canceled for any reason, the private career school shall notify any agency known 
50.29 	to the private career school to be providing financial aid to the student of the cancellation 
50.30 	within 30 days.

51.1 	Sec. 38. Minnesota Statutes 2014, section 141.271, subdivision 14, is amended to read:
51.2 		Subd. 14.Closed private career school. In the event a private career school closes 
51.3 	for any reason during a term and interrupts and terminates classes during that term, all 
51.4 	tuition for the term shall be refunded to the students or the appropriate state or federal 
51.5 	agency or private lender that provided any funding for the term and any outstanding 
51.6 	obligation of the student for the term is canceled.

51.7 	Sec. 39. Minnesota Statutes 2014, section 141.28, is amended to read:
51.8 	141.28 PROHIBITIONS.
51.9 		Subdivision 1.Disclosure required; advertisement restricted. Private career 
51.10 	schools, agents of private career schools, and solicitors may not advertise or represent 
51.11 	in writing or orally that the private career school is approved or accredited by the state 
51.12 	of Minnesota, except that any private career school, agent, or solicitor may represent in 
51.13 	advertisements and shall disclose in catalogues, applications, and enrollment materials 
51.14 	that the private career school is duly licensed by the state by prominently displaying 
51.15 	the following statement:
51.16 	"(Name of private career school) is licensed as a private career school with the Minnesota 
51.17 	Office of Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. 
51.18 	Licensure is not an endorsement of the institution. Credits earned at the institution may 
51.19 	not transfer to all other institutions."
51.20 		Subd. 2.Unlawful designation. No private career school organized after November 
51.21 	15, 1969, shall apply to itself either as a part of its name or in any other manner the 
51.22 	designation of "college" or "university." Operating private career schools now using 
51.23 	such designation may continue use thereof.
51.24 		Subd. 3.False statements. A private career school, agent, or solicitor shall not 
51.25 	make, or cause to be made, any statement or representation, oral, written or visual, in 
51.26 	connection with the offering or publicizing of a program, if the private career school, 
51.27 	agent, or solicitor knows or reasonably should have known the statement or representation 
51.28 	to be false, fraudulent, deceptive, substantially inaccurate, or misleading.
51.29 		Subd. 4.Acceptance of contracts. No private career school shall accept contracts, 
51.30 	enrollment agreements or enrollment applications from an agent or solicitor who does 
51.31 	not have a current permit.
51.32 		Subd. 5.Improbable program completion or employment. A private career 
51.33 	school, agent, or solicitor shall not enroll a prospective student when it is obvious that the 
51.34 	prospective student is unlikely to successfully complete a program or is unlikely to qualify 
51.35 	for employment in the vocation or field for which the preparation is designed unless this 
52.1 	fact is affirmatively disclosed to the prospective student. If a prospective student expresses 
52.2 	a desire to enroll after such disclosure, a disclaimer may be obtained by the private career 
52.3 	school. The disclaimer shall be signed by the student and shall state substantially one or 
52.4 	both of the following: "I am fully aware that it is unlikely I will be able to successfully 
52.5 	complete the program" and "I am fully aware of the improbability or impossibility that I 
52.6 	will qualify for employment in the vocation or field for which the program was designed."
52.7 		Subd. 6.Financial aid payments. (a) All private career schools must collect, 
52.8 	assess, and distribute funds received from loans or other financial aid as provided in 
52.9 	this subdivision.
52.10 	(b) Student loans or other financial aid funds received from federal, state, or local 
52.11 	governments or administered in accordance with federal student financial assistance 
52.12 	programs under title IV of the Higher Education Act of 1965, as amended, United States 
52.13 	Code, title 20, chapter 28, must be collected and applied as provided by applicable federal, 
52.14 	state, or local law or regulation.
52.15 	(c) Student loans or other financial aid assistance received from a bank, finance or 
52.16 	credit card company, or other private lender must be collected or disbursed as provided 
52.17 	in paragraphs (d) and (e).
52.18 	(d) Loans or other financial aid payments for amounts greater than $3,000 must 
52.19 	be disbursed:
52.20 	(1) in two equal disbursements, if the term length is more than four months. The 
52.21 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
52.22 	class with the remainder to be disbursed halfway through the term; or
52.23 	(2) in three equal disbursements, if the term length is more than six months. The 
52.24 	loan or payment amounts may be disbursed no earlier than the first day the student attends 
52.25 	class, one-third of the way through the term, and two-thirds of the way through the term.
52.26 	(e) Loans or other financial aid payments for amounts less than $3,000 may be 
52.27 	disbursed as a single disbursement on the first day a student attends class, regardless 
52.28 	of term length.
52.29 	(f) No private career school may enter into a contract or agreement with, or receive 
52.30 	any money from, a bank, finance or credit card company, or other private lender, unless 
52.31 	the private lender follows the requirements for disbursements provided in paragraphs 
52.32 	(d) and (e).
52.33 	(g) No school may withhold an official transcript for arrears or default on any loan 
52.34 	made by the school to a student if the loan qualifies as an institutional loan under United 
52.35 	States Code, title 11, section 523(a)(8)(b).

53.1 	Sec. 40. Minnesota Statutes 2014, section 141.29, is amended to read:
53.2 	141.29 REVOCATION OF LICENSE OR PERMIT.
53.3 		Subdivision 1.Grounds. The office may, after notice and upon providing an 
53.4 	opportunity for a hearing, under chapter 14 if requested by the parties adversely affected, 
53.5 	refuse to issue, refuse to renew, revoke, or suspend a license or solicitor's permit for any 
53.6 	of the following grounds:
53.7 	(1) violation of any provisions of sections 141.21 to 141.35 or any rule adopted 
53.8 	by the office;
53.9 	(2) furnishing to the office false, misleading, or incomplete information;
53.10 	(3) presenting to prospective students information relating to the private career 
53.11 	school that is false, fraudulent, deceptive, substantially inaccurate, or misleading;
53.12 	(4) refusal to allow reasonable inspection or supply reasonable information after 
53.13 	written request by the office;
53.14 	(5) the existence of any circumstance that would be grounds for the refusal of an 
53.15 	initial or renewal license under section 141.25.
53.16 		Subd. 2.Appeal. Any order refusing, revoking, or suspending a private career 
53.17 	school's license or a solicitor's permit is appealable in accordance with chapter 14. Where 
53.18 	a private career school has been operating and its license has been revoked, suspended, or 
53.19 	refused by the office, the order is not effective until the final determination of the appeal 
53.20 	unless immediate effect is ordered by the court.
53.21 		Subd. 3.Powers and duties. The office shall have (in addition to the powers and 
53.22 	duties now vested therein by law) the following powers and duties:
53.23 	(a) To negotiate and enter into interstate reciprocity agreements with similar agencies 
53.24 	in other states, if in the judgment of the office such agreements are or will be helpful in 
53.25 	effectuating the purposes of Laws 1973, chapter 714;
53.26 	(b) To grant conditional private career school license for periods of less than one 
53.27 	year if in the judgment of the office correctable deficiencies exist at the time of application 
53.28 	and when refusal to issue private career school license would adversely affect currently 
53.29 	enrolled students;
53.30 	(c) The office may upon its own motion, and shall upon the verified complaint 
53.31 	in writing of any person setting forth fact which, if proved, would constitute grounds 
53.32 	for refusal or revocation under Laws 1973, chapter 714, investigate the actions of any 
53.33 	applicant or any person or persons holding or claiming to hold a license or permit. 
53.34 	However, before proceeding to a hearing on the question of whether a license or permit 
53.35 	shall be refused, revoked or suspended for any cause enumerated in subdivision 1, the 
53.36 	office shall grant a reasonable time to the holder of or applicant for a license or permit to 
54.1 	correct the situation. If within such time the situation is corrected and the private career 
54.2 	school is in compliance with the provisions of this chapter, no further action leading to 
54.3 	refusal, revocation, or suspension shall be taken.

54.4 	Sec. 41. Minnesota Statutes 2014, section 141.30, is amended to read:
54.5 	141.30 INSPECTION.
54.6 	(a) The office or a delegate may inspect the instructional books and records, 
54.7 	classrooms, dormitories, tools, equipment and classes of any private career school or 
54.8 	applicant for license at any reasonable time. The office may require the submission of a 
54.9 	certified public audit, or if there is no such audit available the office or a delegate may 
54.10 	inspect the financial books and records of the private career school. In no event shall such 
54.11 	financial information be used by the office to regulate or set the tuition or fees charged by 
54.12 	the private career school.
54.13 	(b) Data obtained from an inspection of the financial records of a private career 
54.14 	school or submitted to the office as part of a license application or renewal are nonpublic 
54.15 	data as defined in section 13.02, subdivision 9. Data obtained from inspections may be 
54.16 	disclosed to other members of the office, to law enforcement officials, or in connection 
54.17 	with a legal or administrative proceeding commenced to enforce a requirement of law.

54.18 	Sec. 42. Minnesota Statutes 2014, section 141.32, is amended to read:
54.19 	141.32 PENALTY.
54.20 	The commissioner may assess fines for violations of a provision of this chapter 
54.21 	sections 141.21 to 141.37. Each day's failure to comply with this chapter sections 141.21 
54.22 	to 141.37 shall be a separate violation and fines shall not exceed $500 per day per 
54.23 	violation. Amounts received under this section must be deposited in the special revenue 
54.24 	fund and are appropriated to the office of Higher Education for the purposes of this 
54.25 	chapter sections 141.21 to 141.37.

54.26 	Sec. 43. Minnesota Statutes 2014, section 141.35, is amended to read:
54.27 	141.35 EXEMPTIONS.
54.28 	Sections 141.21 to 141.32 shall not apply to the following:
54.29 	(1) public postsecondary institutions;
54.30 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
54.31 	(3) private career schools of nursing accredited by the state Board of Nursing or an 
54.32 	equivalent public board of another state or foreign country;
55.1 	(4) private schools complying with the requirements of section 120A.22, subdivision 
55.2 	4;
55.3 	(5) courses taught to students in a valid apprenticeship program taught by or 
55.4 	required by a trade union;
55.5 	(6) private career schools exclusively engaged in training physically or mentally 
55.6 	disabled persons for the state of Minnesota;
55.7 	(7) private career schools licensed by boards authorized under Minnesota law to 
55.8 	issue licenses except private career schools required to obtain a private career school 
55.9 	license due to the use of "academy," "institute," "college," or "university" in their names;
55.10 	(8) private career schools and educational programs, or training programs, contracted 
55.11 	for by persons, firms, corporations, government agencies, or associations, for the training 
55.12 	of their own employees, for which no fee is charged the employee;
55.13 	(9) private career schools engaged exclusively in the teaching of purely avocational, 
55.14 	recreational, or remedial subjects as determined by the office except private career schools 
55.15 	required to obtain a private career school license due to the use of "academy," "institute," 
55.16 	"college," or "university" in their names unless the school used "academy" or "institute" in 
55.17 	its name prior to August 1, 2008;
55.18 	(10) classes, courses, or programs conducted by a bona fide trade, professional, or 
55.19 	fraternal organization, solely for that organization's membership;
55.20 	(11) programs in the fine arts provided by organizations exempt from taxation 
55.21 	under section 290.05 and registered with the attorney general under chapter 309. For 
55.22 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
55.23 	artistic performance of works of the imagination which are engaged in for the primary 
55.24 	purpose of creative expression rather than commercial sale or employment. In making 
55.25 	this determination the office may seek the advice and recommendation of the Minnesota 
55.26 	Board of the Arts;
55.27 	(12) classes, courses, or programs intended to fulfill the continuing education 
55.28 	requirements for licensure or certification in a profession, that have been approved by a 
55.29 	legislatively or judicially established board or agency responsible for regulating the practice 
55.30 	of the profession, and that are offered exclusively to an individual practicing the profession;
55.31 	(13) classes, courses, or programs intended to prepare students to sit for 
55.32 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
55.33 	entrance examinations;
55.34 	(14) classes, courses, or programs providing 16 or fewer clock hours of instruction 
55.35 	that are not part of the curriculum for an occupation or entry level employment except 
56.1 	private career schools required to obtain a private career school license due to the use of 
56.2 	"academy," "institute," "college," or "university" in their names;
56.3 	(15) classes, courses, or programs providing instruction in personal development, 
56.4 	modeling, or acting;
56.5 	(16) training or instructional programs, in which one instructor teaches an individual 
56.6 	student, that are not part of the curriculum for an occupation or are not intended to prepare 
56.7 	a person for entry level employment;
56.8 	(17) private career schools with no physical presence in Minnesota, as determined 
56.9 	by the office, engaged exclusively in offering distance instruction that are located in and 
56.10 	regulated by other states or jurisdictions; and
56.11 	(18) private career schools providing exclusively training, instructional programs, 
56.12 	or courses where tuition, fees, and any other charges for a student to participate do not 
56.13 	exceed $100.

56.14 	Sec. 44. Minnesota Statutes 2014, section 197.75, subdivision 1, is amended to read:
56.15 		Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 
56.16 	section.
56.17 	(b) "Commissioner" means the commissioner of veterans affairs.
56.18 	(c) "Deceased veteran" means a veteran who has died as a result of the person's 
56.19 	military service, as determined by the United States Veterans Administration, and who 
56.20 	was a resident of this state: (1) within six months of entering the United States armed 
56.21 	forces, or (2) for the six months preceding the veteran's date of death.
56.22 	(d) "Eligible child" means a person who:
56.23 	(1) is the natural or adopted child or stepchild of a deceased veteran; and
56.24 	(2) is a student making satisfactory academic progress at an eligible institution 
56.25 	of higher education.
56.26 	(e) "Eligible institution" means a postsecondary educational institution located in 
56.27 	this state that either (1) is operated by this state or the Board of Regents of the University 
56.28 	of Minnesota, or (2) is operated publicly or privately and, as determined by the office, 
56.29 	maintains academic standards substantially equivalent to those of comparable institutions 
56.30 	operated in this state is licensed or registered with the Office of Higher Education.
56.31 	(f) "Eligible spouse" means the surviving spouse of a deceased veteran.
56.32 	(g) "Eligible veteran" means a veteran who:
56.33 	(1) is a student making satisfactory academic progress at an eligible institution 
56.34 	of higher education;
57.1 	(2) had Minnesota as the person's state of residence at the time of the person's 
57.2 	enlistment or any reenlistment into the United States armed forces, as shown by the 
57.3 	person's federal form DD-214 or other official documentation to the satisfaction of the 
57.4 	commissioner;
57.5 	(3) except for benefits under this section, has no remaining military or veteran-related 
57.6 	educational assistance benefits for which the person may have been entitled; and
57.7 	(4) while using the educational assistance authorized in this section, remains a 
57.8 	resident student as defined in section 136A.101, subdivision 8.
57.9 	(h) "Satisfactory academic progress" has the meaning given in section 136A.101, 
57.10 	subdivision 10.
57.11 	(i) "Student" has the meaning given in section 136A.101, subdivision 7.
57.12 	(j) "Veteran" has the meaning given in section 197.447.

57.13 	Sec. 45. Minnesota Statutes 2014, section 261.23, is amended to read:
57.14 	261.23 COSTS OF HOSPITALIZATION.
57.15 	The costs of hospitalization of such indigent persons exclusive of medical and 
57.16 	surgical care and treatment shall not exceed in amount the full rates fixed and charged 
57.17 	by the Minnesota general hospital under the provisions of sections 158.01 to 158.11 for 
57.18 	the hospitalization of such indigent patients. For indigent persons hospitalized pursuant 
57.19 	to sections 261.21 to 261.232, the state shall pay 90 percent of the cost allowable under 
57.20 	the general assistance medical care program and ten percent of the allowable cost of 
57.21 	hospitalization shall be paid by the county of the residence of the indigent persons at 
57.22 	the times provided for in the contract; and in case of an injury or emergency requiring 
57.23 	immediate surgical or medical treatment, for a period not to exceed 72 hours, 90 percent 
57.24 	of the cost allowable under the general assistance medical care program shall be paid by 
57.25 	the state and ten percent of the cost shall be paid by the county from which the patient, if 
57.26 	indigent, is certified. State payments for services rendered pursuant to this section shall 
57.27 	be ratably reduced to the same extent and during the same time period as payments are 
57.28 	reduced under section 256D.03, subdivision 4, paragraph (c). If the county of residence 
57.29 	of the patient is not the county in which the patient has legal settlement for the purposes 
57.30 	of poor relief, then the county of residence may seek reimbursement from the county 
57.31 	in which the patient has settlement for the purposes of poor relief for all costs it has 
57.32 	necessarily incurred and paid in connection with the hospitalization of said patient.

57.33 	Sec. 46. REVISOR'S INSTRUCTION.
 58.1 	(a) The revisor of statutes shall renumber the provisions of Minnesota Statutes 
58.2 	listed in Column A to the references listed in Column B. The revisor shall also make 
58.3 	necessary cross-reference, grammatical, or terminology changes in Minnesota Statutes and 
58.4 	Minnesota Rules consistent with the renumbering, including changing the word "school" 
58.5 	to "private career school" wherever the word appears in sections 141.20 to 141.37.

58.6		Column A
	Column B
	
58.7		141.20
	136A.82
	
58.8		141.21
	136A.821
	
58.9		141.25
	136A.822
	
58.10		141.251
	136A.823
	
58.11		141.255
	136A.824
	
58.12		141.26
	136A.825
	
58.13		141.265
	136A.826
	
58.14		141.271
	136A.827
	
58.15		141.28
	136A.828
	
58.16		141.29
	136A.829
	
58.17		141.30
	136A.83
	
58.18		141.31
	136A.831
	
58.19		141.32
	136A.832
	
58.20		141.35
	136A.833
	
58.21		141.37
	136A.834
	
58.22 	(b) The revisor of statutes shall make any necessary cross-reference change in 
58.23 	Minnesota Statutes or Minnesota Rules resulting from repealers in this act.

58.24 	Sec. 47.  REPEALER.
 58.25 	Minnesota Statutes 2014, sections 136A.127, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 9b, 
58.26 	10, 10a, 11, and 14; 136A.862; 141.271, subdivisions 4 and 6; 158.01; 158.02; 158.03; 
58.27 	158.04; 158.05; 158.06; 158.07; 158.08; 158.09; 158.091; 158.10; 158.11; and 158.12, are 
58.28 	repealed.

58.29 	ARTICLE 3
58.30 	HIGHER EDUCATION POLICY

58.31 	Section 1. Minnesota Statutes 2014, section 5.41, subdivision 2, is amended to read:
58.32 		Subd. 2.Report. (a) A postsecondary institution must file by November 1 of each 
58.33 	year a report on its programs with the secretary of state. The report must contain the 
58.34 	following information from the previous academic year, including summer terms:
58.35 	(1) deaths of program participants that occurred during program participation as a 
58.36 	result of program participation; and
59.1 	(2) accidents and illnesses that occurred during program participation as a result of 
59.2 	program participation and that required hospitalization; and
59.3 	(3) country, primary program host, and program type for all incidents reported in 
59.4 	clauses (1) and (2).
59.5 	For purposes of this paragraph, "primary program host" is the institution or 
59.6 	organization responsible for or in control of the majority of decisions being made on 
59.7 	the program including, but not limited to, student housing, local transportation, and 
59.8 	emergency response and support.
59.9 	Information reported under clause (1) may be supplemented by a brief explanatory 
59.10 	statement.
59.11 	(b) A postsecondary institution must request, but not mandate, hospitalization and 
59.12 	incident disclosure from students upon completion of the program.
59.13 	(c) A postsecondary institution must report to the secretary of state annually by 
59.14 	November 1 whether its program complies with health and safety standards set by the 
59.15 	Forum on Education Abroad or a similar study abroad program standard setting agency.

59.16 	Sec. 2. Minnesota Statutes 2014, section 5.41, subdivision 3, is amended to read:
59.17 		Subd. 3.Secretary of state; publication of program information. (a) The secretary 
59.18 	of state must publish the reports required by subdivision 2 on its Web site in a format that 
59.19 	facilitates identifying information related to a particular postsecondary institution.
59.20 	(b) The secretary of state shall publish on its Web site the best available information 
59.21 	by countrylinks to the United States Department of State's Consular Information Program 
59.22 	which informs the public of conditions abroad that may affect their safety and security. The 
59.23 	secretary of state shall also publish links to the publicly available reports on sexual assaults 
59.24 	and other criminal acts affecting study abroad program participants during program 
59.25 	participation. This information shall not be limited to programs subject to this section.

59.26 	Sec. 3. Minnesota Statutes 2014, section 124D.09, is amended by adding a subdivision 
59.27 	to read:
59.28 		Subd. 10a.Concurrent enrollment participant survey. (a) Postsecondary 
59.29 	institutions offering courses taught by the secondary teacher according to subdivision 
59.30 	10, and are members in the National Alliance of Concurrent Enrollment Partnerships 
59.31 	(NACEP), must report all required NACEP evaluative survey results by September 1 of 
59.32 	each year to the commissioners of the Office of Higher Education and the Department of 
59.33 	Education. The commissioners must report by December 1 of each year to the committees 
59.34 	of the legislature having jurisdiction over early education through grade 12 education. 
60.1 	(b) Postsecondary institutions that have not adopted and implemented the NACEP 
60.2 	program standards and required evidence for accreditation, are required to conduct an 
60.3 	annual survey of concurrent enrolled students who successfully completed the course 
60.4 	who are one year out of high school, beginning with the high school graduating class 
60.5 	of 2016. By September 1 of each year, the postsecondary institutions must report the 
60.6 	evaluative survey results to the commissioners of the Office of Higher Education and the 
60.7 	Department of Education. The commissioner must report by December 1 of each year to 
60.8 	the committees of the legislature having jurisdiction over early education through grade 
60.9 	12 education. The survey must include, at a minimum, the following student information:
60.10 	(1) the participant's future education plans, including the highest degree or 
60.11 	certification planned;
60.12 	(2) whether the participant is enrolled or plans to enroll in a Minnesota postsecondary 
60.13 	institution, either public or private;
60.14 	(3) the number of credits accepted or denied by postsecondary institutions;
60.15 	(4) the college or university attended;
60.16 	(5) the participant's satisfaction level with the concurrent enrollment program;
60.17 	(6) the participant's demographics, such as gender, parent education level, 
60.18 	qualification for free or reduced-price lunch in high school, Pell grant qualification and 
60.19 	ethnicity; and
60.20 	(7) a place for participants to provide comments.

60.21 	Sec. 4. Minnesota Statutes 2014, section 124D.09, is amended by adding a subdivision 
60.22 	to read:
60.23 		Subd. 10b.Concurrent Enrollment Advisory Board; membership; duties. (a) 
60.24 	A postsecondary institution offering courses taught by the secondary teacher according 
60.25 	to subdivision 10, must establish an advisory board. The purpose of the advisory board 
60.26 	is to engage stakeholders in concurrent enrollment decisions. The duties of the board 
60.27 	must include the following:
60.28 	(1) providing strategic advice and input relating to concurrent enrollment issues;
60.29 	(2) recommend and review proposals for concurrent enrollment course offerings;
60.30 	(3) serve as a coordinating entity between secondary education and postsecondary 
60.31 	institutions; and
60.32 	(4) increase the understanding and collaboration among concurrent enrollment 
60.33 	partners, stakeholders, the legislature, and the public.
60.34 	(b) The advisory board at each institution must consist of 16 members in addition to 
60.35 	a concurrent enrollment faculty coordinator who shall serve as the chair and convene the 
61.1 	meetings. A postsecondary institution may elect to have an advisory board of less than 16 
61.2 	members if the institution determines that the extent of its concurrent program warrants 
61.3 	a smaller board. Except for the original members, advisory board members must serve 
61.4 	three-year staggered terms. Advisory board members, appointed by the postsecondary 
61.5 	institution, must be balanced based on geography, school size, and include, if practical, 
61.6 	representatives from the following:
61.7 	(1) postsecondary faculty members;
61.8 	(2) school superintendents;
61.9 	(3) high school principals;
61.10 	(4) concurrent enrollment teachers;
61.11 	(5) high school counselors;
61.12 	(6) charter school administrators;
61.13 	(7) school board members; 
61.14 	(8) secondary academic administrators;
61.15 	(9) parents; and
61.16 	(10) other local organizations.
61.17 	(c) Members of the board serve without compensation.
61.18 	(d) The board shall report to the postsecondary institution periodically as requested 
61.19 	by the postsecondary institution to provide advice and proposals described in paragraph (a).
61.20 	(e) The postsecondary institution shall provide administrative services and meeting 
61.21 	space for the board to do its work.
61.22 	(f) A board established under this section expires when the postsecondary institution 
61.23 	no longer offers concurrent enrollment course offerings.
61.24 	(g) The postsecondary institution shall appoint the first members to the advisory 
61.25 	board by October 31, 2015, or by October 15 following the year it establishes a concurrent 
61.26 	enrollment program. The postsecondary institution shall designate the terms of the first 
61.27 	members so that an approximately equal number serve terms of two, three, and four years.

61.28 	Sec. 5. Minnesota Statutes 2014, section 124D.091, subdivision 1, is amended to read:
61.29 		Subdivision 1.Accreditation. To establish a uniform standard by which 
61.30 	concurrent enrollment courses and professional development activities may be measured, 
61.31 	postsecondary institutions are encouraged to apply for accreditation bymust adopt and 
61.32 	implement the National Alliance of Concurrent Enrollment Partnership Partnership's 
61.33 	program standards and required evidence for accreditation by the 2020-2021 school year 
61.34 	and later.

62.1 	Sec. 6. [135A.012] HIGHER EDUCATION ATTAINMENT GOAL.
62.2 		Subdivision 1.Purpose. This section sets a goal for postsecondary education 
62.3 	attainment for Minnesota residents.
62.4 		Subd. 2.Postsecondary credentials. The number of Minnesota residents ages 25 
62.5 	to 44 years, who hold postsecondary degrees or certificates, should be increased to at 
62.6 	least 70 percent by 2025.
62.7 		Subd. 3.Rights not created. The attainment goal in this section is not to the 
62.8 	exclusion of any other goals and does not confer a right or create a claim for any person.
62.9 		Subd. 4.Data development and analyses. The Office of Higher Education shall 
62.10 	work with the state demographer's office to measure progress towards the attainment of 
62.11 	the goal specified in subdivision 2. The United States Census Bureau data shall be used to 
62.12 	calculate the number of individuals in the state who hold a postsecondary degree. The 
62.13 	Office of Higher Education, demographer's office, and the Department of Employment 
62.14 	and Economic Development shall develop a methodology to estimate the number of 
62.15 	individuals that hold a certificate awarded by a postsecondary institution as their highest 
62.16 	educational credential using data available at the time that the analysis is completed.
62.17 		Subd. 5.Reporting. (a) Beginning in 2016 and every year thereafter, the Office of 
62.18 	Higher Education, in collaboration with the state demographer's office, shall, by October 
62.19 	15, report to the chairs and ranking minority members of the legislative committees with 
62.20 	primary jurisdiction over higher education policy and finance on the progress towards 
62.21 	meeting or exceeding the goal of this section.
62.22 	(b) Meeting and maintaining the goal of 70 percent of Minnesota residents ages 25 
62.23 	to 44 years, holding a postsecondary degree or certificate will likely be difficult without 
62.24 	achieving attainment rates that are comparable across all race and ethnicity groups. The 
62.25 	Office of Higher Education shall utilize benchmarks of 30 percent or higher and 50 percent 
62.26 	or higher to report progress by race and ethnicity groups toward meeting the educational 
62.27 	attainment rate goal of 70 percent.

62.28 	Sec. 7. [136A.091] SUMMER ACADEMIC ENRICHMENT PROGRAM.
62.29 		Subdivision 1.Establishment. The summer academic enrichment program is 
62.30 	established to enable elementary and secondary students to attend academic summer 
62.31 	programs sponsored by postsecondary institutions and nonprofit organizations.
62.32 		Subd. 2.Eligibility. To be eligible for a program stipend, a student shall:
62.33 	(1) be a resident of Minnesota;
62.34 	(2) attend an eligible office-approved program;
62.35 	(3) be in grades 3 through 12, but not have completed high school; 
63.1 	(4) meet income requirements for free or reduced-price school meals; and
63.2 	(5) be 19 years of age or younger.
63.3 		Subd. 3.Financial need. Need for financial assistance is based on student 
63.4 	eligibility for free or reduced-price school meals. Student eligibility shall be verified by 
63.5 	sponsors of approved academic programs. The office shall award stipends for students 
63.6 	within the limits of available appropriations for this section. If the amount appropriated 
63.7 	is insufficient, the office shall allocate the available appropriation in the manner it 
63.8 	determines. A stipend must not exceed $1,000 per student.
63.9 		Subd. 4.Eligible program sponsors. (a) A program stipend may be used only at an 
63.10 	eligible sponsor that is a postsecondary institution or nonprofit educational organization. 
63.11 	A Minnesota public postsecondary institution is an eligible program sponsor. A private 
63.12 	postsecondary institution is an eligible program sponsor if it:
63.13 	(1) is accredited by an agency recognized by the United States Department of 
63.14 	Education for purposes of eligibility to participate in title IV federal financial aid programs;
63.15 	(2) offers an associate or baccalaureate degree program approved under sections 
63.16 	136A.61 to 136A.71; and
63.17 	(3) is located in Minnesota.
63.18 	(b) A nonprofit educational organization is an eligible program sponsor if it:
63.19 	(1) is incorporated;
63.20 	(2) has had favorable financial performance with federal or state funds; and
63.21 	(3) has not had significant audit findings.
63.22 		Subd. 5.Eligible programs. A program stipend may be used only for an eligible 
63.23 	program. To be eligible, a program must:
63.24 	(1) provide, as its primary purpose, academic instruction for student enrichment in 
63.25 	core curricular areas of English and language arts, humanities, social studies, science, 
63.26 	mathematics, fine arts, performing arts, and world languages and culture;
63.27 	(2) not be offered for credit to postsecondary students;
63.28 	(3) not provide remedial instruction;
63.29 	(4) meet any other program requirements established by the office; and
63.30 	(5) be approved by the commissioner.
63.31 		Subd. 6.Information. The office shall assemble and distribute information about 
63.32 	eligible student participants, program stipends, and eligible programs. 
63.33 		Subd. 7.Administration. The office shall determine the time and manner of 
63.34 	program applications, program approval, stipend applications, and final awards.
64.1 		Subd. 8.Program evaluation. Each program sponsor must annually submit a 
64.2 	report to the office stating its program goals, activities, and stipend recipient eligibility and 
64.3 	demographic information.
64.4 		Subd. 9.Report. Annually, the office shall submit a report to the legislative 
64.5 	committees with jurisdiction over higher education finance regarding the program 
64.6 	providers, stipend recipients, and program activities. The report shall include information 
64.7 	about the students served, the organizations providing services, program goals and 
64.8 	outcomes, and student outcomes.

64.9 	EFFECTIVE DATE. Subdivision 9 is effective January 1, 2016.

64.10 	Sec. 8. Minnesota Statutes 2014, section 136A.101, subdivision 8, is amended to read:
64.11 		Subd. 8.Resident student. "Resident student" means a student who meets one of 
64.12 	the following conditions:
64.13 	(1) a student who has resided in Minnesota for purposes other than postsecondary 
64.14 	education for at least 12 months without being enrolled at a postsecondary educational 
64.15 	institution for more than five credits in any term;
64.16 	(2) a dependent student whose parent or legal guardian resides in Minnesota at the 
64.17 	time the student applies;
64.18 	(3) a student who graduated from a Minnesota high school, if the student was a 
64.19 	resident of Minnesota during the student's period of attendance at the Minnesota high school 
64.20 	and the student is physically attending a Minnesota postsecondary educational institution;
64.21 	(4) a student who, after residing in the state for a minimum of one year, earned a 
64.22 	high school equivalency certificate in Minnesota;
64.23 	(5) a member, spouse, or dependent of a member of the armed forces of the United 
64.24 	States stationed in Minnesota on active federal military service as defined in section 
64.25 	190.05, subdivision 5c;
64.26 	(6) a spouse or dependent of a veteran, as defined in section 197.447, if the veteran 
64.27 	is a Minnesota resident;
64.28 	(7) a person or spouse of a person who relocated to Minnesota from an area that 
64.29 	is declared a presidential disaster area within the preceding 12 months if the disaster 
64.30 	interrupted the person's postsecondary education;
64.31 	(8) a person defined as a refugee under United States Code, title 8, section 
64.32 	1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
64.33 	continued to reside in Minnesota; or
64.34 	(9) a student eligible for resident tuition under section 135A.043.; or
65.1 	(10) an active member, or a spouse or dependent of that member, of the state's 
65.2 	National Guard who resides in Minnesota or an active member, or a spouse or dependent 
65.3 	of that member, of the reserve component of the United States armed forces whose duty 
65.4 	station is located in Minnesota and who resides in Minnesota.

65.5 	Sec. 9. Minnesota Statutes 2014, section 136A.121, subdivision 20, is amended to read:
65.6 		Subd. 20.Institution reporting. (a) Each institution receiving financial aid under 
65.7 	this section must annually report by December 31 to the office the following for its 
65.8 	undergraduate programs each award level:
65.9 	(1) enrollment, persistence, and graduation data for all students, including aggregate 
65.10 	subgroup information on state and federal Pell grant recipients; and
65.11 	(2) the job placement rate and salary and wage information for graduates of each 
65.12 	program that is either designed or advertised to lead to a particular type of job or advertised 
65.13 	or promoted with a claim regarding job placement, as is practicable; and
65.14 	(3) the student debt-to-earnings ratioaggregate awarded financial aid information for 
65.15 	all students, and cumulative debt of all graduates by race and ethnicity, gender, and income.
65.16 	(b) Using the data submitted to the office by institutions pursuant to paragraph (a), 
65.17 	as well as other data available to the office, the office shall provide the following on its 
65.18 	Internet Web site by placing a prominent link on its Web site home page:
65.19 	(1) the information submitted by an institution pursuantincluding, but not limited to, 
65.20 	persistence and completion, debt of graduates, employment and wage information, and 
65.21 	other relevant data for each institution subject to paragraph (a), which shall be made 
65.22 	available in a searchable database; and
65.23 	(2) other information and links that are useful to students and parents who are in 
65.24 	the process of selecting a college or university. This information may include, but is 
65.25 	not limited to, local occupational profiles.
65.26 	(c) The office shall provide a standard format and instructions for institutions 
65.27 	supplying the information required under paragraph (a).
65.28 	(d) The office shall provide an electronic copy of the information provided on its 
65.29 	Internet Web site under paragraph (b) to each public and private high school in the state 
65.30 	and each workforce center operated by the Department of Employment and Economic 
65.31 	Development. The copy must contain information formatted by institution so that 
65.32 	comparison can be easily made between institutions. High schools are encouraged to make 
65.33 	the information  available to students, including through individual counseling sessions 
65.34 	with students. Workforce centers shall make the information available to job seekers, 
65.35 	those seeking career counseling, and others as determined by the centers.

66.1 	Sec. 10. [136A.1791] TEACHER SHORTAGE LOAN FORGIVENESS 
66.2 	PROGRAM.
66.3 		Subdivision 1.Definitions. (a) The terms used in this section have the meanings 
66.4 	given them in this subdivision.
66.5 	(b) "Qualified educational loan" means a government, commercial, or foundation 
66.6 	loan for actual costs paid for tuition and reasonable educational and living expenses 
66.7 	related to a teacher's preparation or further education. 
66.8 	(c) "School district" means an independent school district, special school district, 
66.9 	intermediate district, education district, special education cooperative, service cooperative, 
66.10 	a cooperative center for vocational education, or a charter school located in Minnesota.
66.11 	(d) "Teacher" means an individual holding a teaching license issued by the licensing 
66.12 	division in the Department of Education on behalf of the Board of Teaching who is 
66.13 	employed by a school district to provide classroom instruction in a teacher shortage area.
66.14 	(e) "Teacher shortage area" means the licensure fields and economic development 
66.15 	regions reported by the commissioner of education as experiencing a teacher shortage.
66.16 	(f) "Commissioner" means the commissioner of the Office of Higher Education 
66.17 	unless indicated otherwise.
66.18 		Subd. 2.Program established; administration. The commissioner shall establish 
66.19 	and administer a teacher shortage loan forgiveness program. A teacher is eligible for the 
66.20 	program if the teacher is teaching in a licensure field and in an economic development 
66.21 	region with an identified teacher shortage under subdivision 3 and complies with the 
66.22 	requirements of this section. 
66.23 		Subd. 3.Use of report on teacher shortage areas. The commissioner of education 
66.24 	shall use the teacher supply and demand report to the legislature to identify the licensure 
66.25 	fields and economic development regions in Minnesota experiencing a teacher shortage.
66.26 		Subd. 4.Application for loan forgiveness. Each applicant for loan forgiveness, 
66.27 	according to rules adopted by the commissioner, shall:
66.28 	(1) apply for teacher shortage loan forgiveness and promptly submit any additional 
66.29 	information required by the commissioner;
66.30 	(2) annually reapply for up to five consecutive school years and submit information 
66.31 	the commissioner requires to determine the applicant's continued eligibility for loan 
66.32 	forgiveness; and
66.33 	(3) submit to the commissioner a completed affidavit, prescribed by the 
66.34 	commissioner, affirming the teacher is teaching in a licensure field and in an economic 
66.35 	development region identified by the commissioner as experiencing a teacher shortage.
67.1 		Subd. 5.Amount of loan forgiveness. (a) To the extent funding is available, the 
67.2 	annual amount of teacher shortage loan forgiveness for an approved applicant shall not 
67.3 	exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, 
67.4 	including principal and interest, whichever amount is less.
67.5 	(b) Recipients must secure their own qualified educational loans. Teachers who 
67.6 	graduate from an approved teacher preparation program or teachers who add a licensure 
67.7 	field, consistent with the teacher shortage requirements of this section, are eligible to 
67.8 	apply for the loan forgiveness program.
67.9 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements 
67.10 	directly to the participant of the amount for which a participant is eligible, for each year 
67.11 	that a participant is eligible.
67.12 	(b) Within 60 days of receipt of a disbursement, the participant must provide the 
67.13 	commissioner with verification that the full amount of loan repayment disbursement has 
67.14 	been applied toward the designated loans. A participant that previously received funds 
67.15 	under this section but has not provided the commissioner with such verification is not 
67.16 	eligible to receive additional funds.
67.17 		Subd. 7.Penalties. (a) A teacher who submits a false or misleading application or 
67.18 	other false or misleading information to the commissioner may:
67.19 	(1) have his or her teaching license suspended or revoked under section 122A.20;
67.20 	(2) be disciplined by the teacher's employing school district; or
67.21 	(3) be required by the commissioner to repay the total amount of the loan forgiveness 
67.22 	he or she received under this program, plus interest at a rate established under section 
67.23 	270C.40.
67.24 	(b) The commissioner must deposit any repayments received under paragraph (a) 
67.25 	in the fund established in subdivision 8.
67.26 		Subd. 8.Fund established. A teacher shortage loan forgiveness repayment fund 
67.27 	is created for depositing money appropriated to or received by the commissioner for the 
67.28 	program. Money deposited in the fund shall not revert to any state fund at the end of 
67.29 	any fiscal year but remains in the loan forgiveness repayment fund and is continuously 
67.30 	available for loan forgiveness under this section.
67.31 		Subd. 9.Annual reporting. By February 1 of each year, the commissioner must 
67.32 	report to the chairs of the K-12 and higher education committees of the legislature on the 
67.33 	number of individuals who received loan forgiveness under this section, the licensure 
67.34 	areas and economic development regions in which the teachers taught, the average amount 
67.35 	paid to a teacher participating in the program, and other summary data identified by the 
67.36 	commissioner as outcome indicators.
68.1 		Subd. 10.Rulemaking. The commissioner shall adopt rules under chapter 14 to 
68.2 	administer this section.

68.3 	Sec. 11. [136A.246] DUAL TRAINING COMPETENCY GRANTS.
68.4 		Subdivision 1.Program created. The commissioner shall make grants for the 
68.5 	training of employees to achieve the competency standard for an occupation identified by 
68.6 	the commissioner of labor and industry under section 175.45 and Laws 2014, chapter 312, 
68.7 	article 3, section 21. "Competency standard" has the meaning given in section 175.45, 
68.8 	subdivision 2.
68.9 		Subd. 2.Eligible grantees. An employer or an organization representing the 
68.10 	employer is eligible to apply for a grant to train employees if the employer has an 
68.11 	employee who is in or is to be trained to be in an occupation for which a competency 
68.12 	standard has been identified and the employee has not attained the competency standard 
68.13 	prior to the commencement of the planned training. Training need not address all aspects 
68.14 	of a competency standard but may address only the competencies of a standard that an 
68.15 	employee is lacking. Employees who have previously received a grant under this program 
68.16 	are not eligible to receive another grant.
68.17 		Subd. 3.Training institution or program. Prior to applying for a grant, the 
68.18 	employer must have an agreement with a training institution or program to provide the 
68.19 	employee competency standard training. The training may be provided by any institution 
68.20 	or program having trainers qualified to instruct on the competency standard.
68.21 		Subd. 4.Application. Applications must be made to the commissioner on a form 
68.22 	provided by the commissioner. The commissioner must, to the extent possible, make 
68.23 	the application form as short and simple to complete as is reasonably possible. The 
68.24 	commissioner shall establish a schedule for applications and grants. The application 
68.25 	must include, without limitation: 
68.26 	(1) the projected number of employee trainees; 
68.27 	(2) the competency standard for which training will be provided;
68.28 	(3) any credential the employee will receive upon completion of training;
68.29 	(4) the name and address of the training institution or program and a signed 
68.30 	statement by the institution or program that it is able and agrees to provide the training; 
68.31 	(5) the period of the training; and 
68.32 	(6) the cost of the training charged by the training institution or program and certified 
68.33 	by the institution or program.
68.34 	An application may be made for training of employees of multiple employers either 
68.35 	by the employers or by an organization on their behalf.
69.1 		Subd. 5.Grant criteria. The commissioner shall, to the extent there are sufficient 
69.2 	applications, make at least an equal dollar amount of grants for training for employees 
69.3 	whose work site is projected to be outside the metropolitan area as defined in section 
69.4 	473.121, subdivision 2, as for employees whose work site is projected to be within the 
69.5 	metropolitan area. In determining the award of grants, the commissioner must consider, 
69.6 	among other factors:
69.7 	(1) the aggregate state and regional need for employees with the competency to 
69.8 	be trained; 
69.9 	(2) the competency standards developed by the commissioner of labor and industry 
69.10 	as part of the Minnesota PIPELINE Project;
69.11 	(3) the per employee cost of training; 
69.12 	(4) the additional employment opportunities for employees because of the training; 
69.13 	(5) projected increases in compensation for employees receiving the training; and 
69.14 	(6) the amount of employer training cost match, if required, on both a per employee 
69.15 	and aggregate basis.
69.16 		Subd. 6.Employer match. A large employer must pay for at least 25 percent of 
69.17 	the training institution's or program's charge for the training to the training institution or 
69.18 	program. For the purpose of this subdivision, a "large employer" means a business with 
69.19 	more than $25,000,000 in annual revenue in the previous calendar year.
69.20 		Subd. 7.Payment of grant. The commissioner shall make grant payments to the 
69.21 	training institution or program in a manner determined by the commissioner after receiving 
69.22 	notice from the institution or program that the employer has paid the employer match.
69.23 		Subd. 8.Grant amounts. The maximum grant for an application is $150,000. The 
69.24 	maximum cost of training payable by the grant may not exceed $6,000 per employee.
69.25 	A grant for a particular employee must be reduced by the amounts of any federal 
69.26 	Pell grant received, or state grant the employee is eligible to receive for the training and an 
69.27 	employee must apply for those grants as a condition of payment for training that employee 
69.28 	under this section.
69.29 		Subd. 9.Reporting. Commencing in 2017, the commissioner shall annually by 
69.30 	February 1 report on the activity of the grant program for the preceding fiscal year to the 
69.31 	chairs of the legislative committees with jurisdiction over workforce policy and finance. 
69.32 	At a minimum, the report must include:
69.33 	(1) research and analysis on the costs and benefits of the grants for employees and 
69.34 	employers;
69.35 	(2) the number of employees who commenced training and the number who 
69.36 	completed training; and
70.1 	(3) recommendations, if any, for changes to the program.

70.2 	Sec. 12. Minnesota Statutes 2014, section 136A.861, subdivision 1, is amended to read:
70.3 		Subdivision 1.Grants. (a) The commissioner shall award grants to foster 
70.4 	postsecondary attendance and retention by providing outreach services to historically 
70.5 	underserved students in grades six through 12 and historically underrepresented college 
70.6 	students. Grants must be awarded to programs that provide precollege services, including, 
70.7 	but not limited to:
70.8 	(1) academic counseling;
70.9 	(2) mentoring;
70.10 	(3) fostering and improving parental involvement in planning for and facilitating a 
70.11 	college education;
70.12 	(4) services for students with English as a second language;
70.13 	(5) academic enrichment activities;
70.14 	(6) tutoring;
70.15 	(7) career awareness and exploration;
70.16 	(8) orientation to college life;
70.17 	(9) assistance with high school course selection and information about college 
70.18 	admission requirements; and
70.19 	(10) financial aid counseling.
70.20 	(b) To the extent there are sufficient applications, the commissioner shall award 
70.21 	an approximate equal amount of grants for program-eligible students who are from 
70.22 	communities located outside the metropolitan area, as defined in section 473.121, 
70.23 	subdivision 2, as for students from communities within the metropolitan area. If necessary 
70.24 	to achieve the approximately equal metropolitan area and nonmetropolitan area allocation, 
70.25 	the commissioner may award a preference to a nonmetropolitan area application in the 
70.26 	form of five points on a one hundred point application review scale.
70.27 	(b) (c) Grants shall be awarded to postsecondary institutions, professional 
70.28 	organizations, community-based organizations, or others deemed appropriate by the 
70.29 	commissioner.
70.30 	(c) (d) Grants shall be awarded for one year and may be renewed for a second year 
70.31 	with documentation to the office of successful program outcomes.

70.32 	Sec. 13. [136A.901] SPINAL CORD INJURY AND TRAUMATIC BRAIN 
70.33 	INJURY RESEARCH GRANT PROGRAM.
71.1 		Subdivision 1.Grant program. The commissioner shall establish a grant program 
71.2 	to award grants to institutions in Minnesota for research into spinal cord injuries and 
71.3 	traumatic brain injuries. Grants shall be awarded to conduct research into new and 
71.4 	innovative treatments and rehabilitative efforts for the functional improvement of people 
71.5 	with spinal cord and traumatic brain injuries. Research topics may include, but are not 
71.6 	limited to, pharmaceutical, medical device, brain stimulus, and rehabilitative approaches 
71.7 	and techniques. The commissioner, in consultation with the advisory council established 
71.8 	under section 136A.902, shall award 50 percent of the grant funds for research involving 
71.9 	spinal cord injuries and 50 percent to research involving traumatic brain injuries. In 
71.10 	addition to the amounts appropriated by law, the commissioner may accept additional 
71.11 	funds from private and public sources. Amounts received from these sources are 
71.12 	appropriated to the commissioner for the purposes of issuing grants under this section.
71.13 		Subd. 2.Report. By January 15, 2016, and each January 15 thereafter, the 
71.14 	commissioner shall submit a report to the chairs and ranking minority members of the 
71.15 	senate and house of representatives committees having jurisdiction over the Office of 
71.16 	Higher Education, specifying the institutions receiving grants under this section and the 
71.17 	purposes for which the grant funds were used.

71.18 	Sec. 14. [136A.902] SPINAL CORD AND TRAUMATIC BRAIN INJURY  
71.19 	ADVISORY COUNCIL.
71.20 		Subdivision 1.Membership. The commissioner shall appoint a 12-member 
71.21 	advisory council consisting of:
71.22 	(1) one member representing the University of Minnesota Medical School;
71.23 	(2) one member representing the Mayo Medical School;
71.24 	(3) one member representing the Courage Kenny Rehabilitation Center;
71.25 	(4) one member representing Hennepin County Medical Center;
71.26 	(5) one member who is a neurosurgeon;
71.27 	(6) one member who has a spinal cord injury;
71.28 	(7) one member who is a family member of a person with a spinal cord injury;
71.29 	(8) one member who has a traumatic brain injury;
71.30 	(9) one member who is a veteran who has a spinal cord injury or a traumatic brain 
71.31 	injury;
71.32 	(10) one member who is a family member of a person with a traumatic brain injury;
71.33 	(11) one member who is a physician specializing in the treatment of spinal cord 
71.34 	injury representing Gillette Children's Specialty Healthcare; and
72.1 	(12) one member who is a physician specializing in the treatment of traumatic 
72.2 	brain injury.
72.3 		Subd. 2.Organization. The advisory council shall be organized and administered 
72.4 	under section 15.059, except that subdivision 2 shall not apply. Except as provided in 
72.5 	subdivision 4, the commissioner shall appoint council members to two-year terms and 
72.6 	appoint one member as chair. The advisory council does not expire.
72.7 		Subd. 3.First appointments and first meeting. The commissioner shall appoint 
72.8 	the first members of the council by September 1, 2015. The chair shall convene the first 
72.9 	meeting by November 1, 2015.
72.10 		Subd. 4.Terms of initial council members. The commissioner shall designate six 
72.11 	of the initial council members to serve one-year terms and six to serve two-year terms.
72.12 		Subd. 5.Conflict of interest. Council members must disclose in a written statement 
72.13 	any financial interest in any organization that the council recommends to receive a grant. 
72.14 	The written statement must accompany the grant recommendations and must explain the 
72.15 	nature of the conflict. The council is not subject to policies developed by the commissioner 
72.16 	of administration under section 16B.98.
72.17 		Subd. 6.Duties. The advisory council shall:
72.18 	(1) develop criteria for evaluating and awarding the research grants under section 
72.19 	136A.901;
72.20 	(2) review research proposals and make recommendations by January 15 of each 
72.21 	year to the commissioner for purposes of awarding grants under section 136A.901; and
72.22 	(3) perform other duties as authorized by the commissioner.

72.23 	Sec. 15. [136F.302] REGULATING THE ASSIGNMENT OF STUDENTS TO 
72.24 	REMEDIAL COURSES.
72.25 		Subdivision 1.ACT college ready score. A state college or university may not 
72.26 	require an individual to take a remedial, noncredit course in a subject area if the individual 
72.27 	has received a college ready ACT score in that subject area.
72.28 		Subd. 2.Testing process for determining if remediating is necessary. A college 
72.29 	or university testing process used to determine whether an individual is placed in a 
72.30 	remedial, noncredit course must comply with this subdivision. Prior to taking a test, an 
72.31 	individual must be given reasonable time and opportunity to review materials provided by 
72.32 	the college or university covering the material to be tested which must include a sample 
72.33 	test. An individual who is required to take a remedial, noncredit course as a result of a 
72.34 	test given by a college or university must be given an opportunity to retake the test at the 
72.35 	earliest time determined by the individual when testing is otherwise offered. The college 
73.1 	or university must provide an individual with study materials for the purpose of retaking 
73.2 	and passing the test.

73.3 	Sec. 16. [136F.303] DEGREE AND CERTIFICATE COMPLETION; REPORT.
73.4 	Beginning in 2018, the board shall annually by January 15, report to the chairs 
73.5 	and ranking minority members of the legislature with primary jurisdiction over higher 
73.6 	education finance on its activities and achievements related to the goal of improving 
73.7 	timely completion of degrees and certificates. The report must, at a minimum, include 
73.8 	for the previous academic year:
73.9 	(1) the percent of students placed in remedial education;
73.10 	(2) the percent of students who complete remediation within one academic year;
73.11 	(3) the percent of students that complete college-level gateway courses in one 
73.12 	academic year;
73.13 	(4) the percent of students who complete 30 semester credits per academic year;
73.14 	(5) the student retention rate;
73.15 	(6) time to complete a degree or certificate; and
73.16 	(7) credits earned by those completing a degree or certificate or other program.
73.17 	The report must disaggregate data for each college and university by race, ethnicity, Pell 
73.18 	Grant eligibility, and age and provide aggregate data.

73.19 	Sec. 17. Minnesota Statutes 2014, section 137.54, is amended to read:
73.20 	137.54 CONDITIONS FOR PAYMENT TO UNIVERSITY. 
73.21 	(a) Before the commissioner may make the first payment to the board authorized in 
73.22 	this section, the commissioner must certify that the board has received at least $110,750,000 
73.23 	in pledges, gifts, sponsorships, and other nonstate general fund revenue support for the 
73.24 	construction of the stadium. On July 1 of each year after certification by the commissioner, 
73.25 	but no earlier than July 1, 2007, and for so long thereafter as any bonds issued by the board 
73.26 	for the construction of the stadium are outstanding, the state must transfer to the board up 
73.27 	to $10,250,000 to reimburse the board for its stadium costs, provided that bonds issued 
73.28 	to pay the state's share of such costs shall not exceed $137,250,000. Up to $10,250,000 
73.29 	is appropriated annually from the general fund for the purpose of this section. The 
73.30 	appropriation of up to $10,250,000 per year may be made for no more than 25 years. The 
73.31 	board must certify to the commissioner the amount of the annual payments of principal and 
73.32 	interest required to service each series of bonds issued by the university for the construction 
73.33 	of the stadium, and the actual amount of the state's annual payment to the university shall 
73.34 	equal the amount required to service the bonds representing the state's share of such costs. 
74.1 	Except to the extent of the annual appropriation described in this section, the state is not 
74.2 	required to pay any part of the cost of designing or constructing the stadium.
74.3 	(b) The board may refund the bonds issued pursuant to paragraph (a) if refunding 
74.4 	is determined by the board to be in the best interest of the university. Notwithstanding 
74.5 	paragraph (a), the principal amount of bonds issued in a refunding shall not exceed 
74.6 	the lesser of $104,385,000 or the amount necessary to defease the bonds outstanding 
74.7 	immediately prior to refunding. The amount of the state's annual payment to the 
74.8 	university for the refunded bonds shall be equal to the maximum annual appropriation of 
74.9 	$10,250,000, notwithstanding the amount certified under paragraph (a). 
74.10 	(c) The board shall allocate sufficient funds, including any interest expense, from 
74.11 	the savings realized through refunding of the bonds pursuant to paragraph (b), to provide 
74.12 	$10,000,000 for predesign and design of improved health education and clinical research 
74.13 	facilities to meet the needs of the Medical School and Academic Health Center on the 
74.14 	Twin Cities campus. The facilities shall be designed to support education and research 
74.15 	that promote new innovative models of care which are patient-centered, team-based, and 
74.16 	facilitate collaboration across the health professions. The education and research facilities 
74.17 	will be collocated and designed to maximize collaboration and high-quality delivery of 
74.18 	health care. The board may in its discretion, after the $10,000,000 allocation required by 
74.19 	this paragraph, allocate to other university purposes payments from the state that exceed 
74.20 	the amount necessary to service the refunded bonds, except for savings in 2029, 2030, and 
74.21 	2031, which shall cancel to the general fund.
74.22 	(d) The board must certify to the commissioner that the per-semester student fee 
74.23 	contribution to the stadium will be at a fixed level coterminous with bonds issued by the 
74.24 	board to meet the student share of the design construction of the stadium and that the 
74.25 	student fee will not be increased to meet construction cost overruns.
74.26 	(c)(e) Before the first payment is made under paragraph (a), the board must certify 
74.27 	to the commissioner that a provision for affordable access for university students to the 
74.28 	university sporting events held at the football stadium has been made.

74.29 	Sec. 18. [175.45] COMPETENCY STANDARDS FOR DUAL TRAINING.
74.30 		Subdivision 1.Duties; goal. The commissioner of labor and industry shall identify 
74.31 	competency standards for dual training. The goal of dual training is to provide current 
74.32 	employees of an employer with training to acquire competencies that the employer 
74.33 	requires. The standards shall be identified for employment in occupations in advanced 
74.34 	manufacturing, health care services, information technology, and agriculture. Competency 
75.1 	standards are not rules and are exempt from the rulemaking provisions of chapter 14, and 
75.2 	the provisions in section 14.386 concerning exempt rules do not apply. 
75.3 		Subd. 2.Definition; competency standards.  For purposes of this section, 
75.4 	"competency standards" means the specific knowledge and skills necessary for a particular 
75.5 	occupation.
75.6 		Subd. 3.Competency standards identification process. In identifying competency 
75.7 	standards, the commissioner shall consult with the commissioner of the Office of Higher 
75.8 	Education and the commissioner of employment and economic development and convene 
75.9 	recognized industry experts, representative employers, higher education institutions, 
75.10 	representatives of the disabled community, and representatives of labor to assist in 
75.11 	identifying credible competency standards. Competency standards must be consistent 
75.12 	with, to the extent available and practical, recognized international and national standards.
75.13 		Subd. 4.Duties. The commissioner shall:
75.14 	(1) identify competency standards for entry level and higher skill levels;
75.15 	(2) verify the competency standards and skill levels and their transferability by 
75.16 	subject matter expert representatives of each respective industry;
75.17 	(3) develop models for Minnesota educational institutions to engage in providing 
75.18 	education and training to meet the competency standards established;
75.19 	(4) encourage participation by employers and labor in the standard identification 
75.20 	process for occupations in their industry; and
75.21 	(5) align dual training competency standards with other workforce initiatives.
75.22 		Subd. 5.Notification. The commissioner must communicate identified competency 
75.23 	standards to the commissioner of the Office of Higher Education for the purpose of the 
75.24 	dual training competency grant program under section 136A.246. The commissioner of 
75.25 	labor and industry shall maintain the competency standards on the department's Web site. 

75.26 	Sec. 19. Laws 2014, chapter 312, article 13, section 47, is amended to read:
75.27 	Sec. 47. RESEARCH DOGS AND CATS.
 75.28 	(a) A higher education research facility that receives public money or a facility that 
75.29 	provides research in collaboration with a higher education facility that confines dogs or 
75.30 	cats for science, education, or research purposes and plans on euthanizing a dog or cat 
75.31 	for other than science, education, or research purposes must first offer the dog or cat 
75.32 	to an animal rescue organization. A facility that is required to offer dogs or cats to an 
75.33 	animal rescue organization under this section may enter into an agreement with the animal 
75.34 	rescue organization to protect the facility. A facility that provides a dog or cat to a rescue 
76.1 	organization under this section is immune from any civil liability that otherwise might 
76.2 	result from its actions, provided that the facility is acting in good faith.
76.3 	(b) For the purposes of this section, "animal rescue organization" means any 
76.4 	nonprofit organization incorporated for the purpose of rescuing animals in need and 
76.5 	finding permanent, adoptive homes for the animals.
76.6 	(c) This section expires July 1, 2015.

76.7 	Sec. 20. MNSCU COLLEGE OCCUPATIONAL SCHOLARSHIP PILOT 
76.8 	PROGRAM.
76.9 		Subdivision 1.Pilot program administration. The commissioner of the Office 
76.10 	of Higher Education shall administer a pilot program pursuant to this section for the 
76.11 	2016-2017 and 2017-2018 academic years including summer session.
76.12 		Subd. 2.Definitions. (a) For the purpose of this section the terms defined in this 
76.13 	subdivision have the meanings given them.
76.14 	(b) "College" means a two-year college in the Minnesota State Colleges and 
76.15 	Universities system.
76.16 	(c) "Eligible individual" means an individual who:
76.17 	(1) is a resident;
76.18 	(2) has graduated from a Minnesota secondary school, has as a Minnesota resident 
76.19 	completed an adult basic education (ABE) program, or as a Minnesota resident, has passed 
76.20 	general education development (GED) testing;
76.21 	(3) first applies for a grant for the fall term immediately following secondary school 
76.22 	graduation, passing GED tests, or completing an ABE program; and
76.23 	(4) has completed a Free Application for Federal Student Aid (FAFSA).
76.24 	(d) "Grant" means a scholarship granted under this section.
76.25 	(e) "Program" means a certificate, diploma, or associate of science or associate of 
76.26 	applied science in a program area covered by the federal Carl D. Perkins Career and 
76.27 	Technical Education Act and in an occupational field designated as high demand by the 
76.28 	Department of Employment and Economic Development. "Program area" includes only 
76.29 	the areas of:
76.30 	(1) agriculture, food, and natural resources;
76.31 	(2) business management and administration;
76.32 	(3) human services;
76.33 	(4) engineering, manufacturing and technology;
76.34 	(5) arts, communications, and information systems; and
76.35 	(6) health science technology.
77.1 	(f) To the extent not inconsistent with this section, the definitions in section 
77.2 	136A.101 apply to this section.
77.3 		Subd. 3.AmeriCorps worker; exceptions. (a) Notwithstanding any contrary 
77.4 	provision of this section, an eligible individual who completes a 12-month or 24-month 
77.5 	approved AmeriCorps program commencing immediately after secondary school 
77.6 	graduation, may apply for a grant for the fall term immediately following completion of 
77.7 	the AmeriCorps program. These individuals have a two consecutive academic year grant 
77.8 	eligibility period commencing the start of that fall term.
77.9 	(b) For the purpose of this subdivision, an "approved AmeriCorps program" means a 
77.10 	program overseen by the Corporation for National and Community Service (CNCS) 
77.11 	including:
77.12 	(1) AmeriCorps Volunteer in Service to America (VISTA);
77.13 	(2) AmeriCorps National Civilian Community Corps (NCCC); or
77.14 	(3) AmeriCorps State and National.
77.15 		Subd. 4.Grants. The commissioner shall, to the extent of available funds and 
77.16 	subject to this section, make grants to eligible individuals to attend a program at a college.
77.17 		Subd. 5.Application. Application for a grant shall be made by a FAFSA and on any 
77.18 	additional form required by the commissioner and on a schedule set by the commissioner.
77.19 		Subd. 6.Income limits for grant recipients. Dependent students reporting a 
77.20 	parental federal adjusted gross income on a FAFSA of $90,000 or less are eligible for 
77.21 	a grant. Independent students reporting a family adjusted gross income on a FAFSA 
77.22 	of $90,000 or less are eligible for a grant.
77.23 		Subd. 7.Grant amount. The amount of a grant is equal to program tuition and fees 
77.24 	minus any federal Pell grant received or state grant for which the individual is eligible. 
77.25 	For the purpose of this subdivision, "fees" has the meaning given it in Minnesota Statutes, 
77.26 	section 136A.121, subdivision 6.
77.27 		Subd. 8.Eligibility period.  A grant may be made only for academic terms that are 
77.28 	during the two academic years commencing the fall term immediately after secondary 
77.29 	school graduation, completing an adult basic education program, or passing all GED tests. 
77.30 	A grant is available for up to 72 semester credits.
77.31 		Subd. 9.Satisfactory academic progress. An individual is eligible for a grant 
77.32 	if the individual is making satisfactory academic progress as defined under Minnesota 
77.33 	Statutes, section 136A.101, subdivision 10, and has a cumulative grade point average of 
77.34 	at least 2.5 on a 4.0 scale at the end of the first academic year and at the end of each 
77.35 	academic term after the first academic year.
78.1 		Subd. 10.Credit load. A grantee must have accumulated at least 30 program 
78.2 	credits by the end of the first academic year including summer term. A college must 
78.3 	certify that a grantee is carrying sufficient credits in the second grant year to complete 
78.4 	the program at the end of the second year, including summer school. The commissioner 
78.5 	shall set the terms and provide the form for certification.
78.6 		Subd. 11.Grant renewal. A grant may be renewed for a second academic year. 
78.7 	Application for renewal must be on a form provided by the commissioner and on a 
78.8 	schedule set by the commissioner.
78.9 		Subd. 12.Mentoring. A grantee must be provided mentoring. Mentoring must 
78.10 	include, but is not limited to:
78.11 	(1) communicating frequently and consistently throughout program participation;
78.12 	(2) developing a personalized student success plan. The plan must include concrete 
78.13 	steps towards program completion and job placement and identify and make contingency 
78.14 	plans for potential obstacles to program completion;
78.15 	(3) connect grantees to on-campus resources and personal development 
78.16 	opportunities; and
78.17 	(4) financial planning.
78.18 	The commissioner shall issue request for proposals to provide mentoring activities. 
78.19 	The commissioner shall select the proposal that in the commissioner's judgment 
78.20 	demonstrates the best potential within available funding for achieving success in assisting 
78.21 	students to complete programs. The commissioner may accept and select proposals 
78.22 	made by colleges.
78.23 		Subd. 13.Outreach. The commissioner may through the office and by contract 
78.24 	engage in recruitment for and promotion of the grants.
78.25 		Subd. 14.Insufficient appropriation. Grant awards shall be made based on the 
78.26 	date of receipt of application from the earliest to the latest date. If there are not sufficient 
78.27 	funds, grants shall not be prorated and eligible individuals shall be placed on a waiting 
78.28 	list. Preference shall be given to timely received renewal grant applications prior to the 
78.29 	award of new grants.
78.30 		Subd. 15.Reporting. (a) A college must report to the commissioner the following 
78.31 	information:
78.32 	(1) the number of grantees and their race, gender, and ethnicity;
78.33 	(2) grantee persistence and completion;
78.34 	(3) employment outcomes; and
78.35 	(4) other information requested by the commissioner.
79.1 	(b) The commissioner shall report annually by January 15, to the chairs and ranking 
79.2 	minority members of the legislative committees with jurisdiction over higher education 
79.3 	finance by college and in aggregate on the information submitted to the commissioner 
79.4 	under paragraph (a). The commissioner may include in the report recommendations 
79.5 	for changes in the grant program.

79.6 	EFFECTIVE DATE. This section is effective July 1, 2016.

79.7 	Sec. 21. BACCALAUREATE DEGREE PATHWAYS.
 79.8 		Subdivision 1.Regulate MnSCU baccalaureate transfers. The Board of Trustees 
79.9 	of the Minnesota State Colleges and Universities shall implement new transfer pathways 
79.10 	for associate of arts degrees, associate of science degrees, and associate of fine arts degrees 
79.11 	toward baccalaureate degree programs. The implementation must, to the greatest extent 
79.12 	possible, be done in accordance with the implementation plan, including its timeline, 
79.13 	developed pursuant to Laws 2014, chapter 312, article 1, section 12.
79.14 		Subd. 2.New or enhanced bachelor of applied science degrees. The board, in 
79.15 	consultation with system constituency groups, is encouraged to create a plan to enhance or 
79.16 	develop new bachelor of applied science degree programs in areas of high employment 
79.17 	need in the state to facilitate transfer pathways for students with associate of applied 
79.18 	science degrees.
79.19 		Subd. 3.Report. By March 15, 2016, the board must report to the chairs and 
79.20 	ranking minority members of the legislative committees with jurisdiction over higher 
79.21 	education on the status of implementation of transfer pathways under subdivision 1 and 
79.22 	any deviations from the implementation plan.

79.23 	Sec. 22. COLLEGE COMPLETION; MNSCU.
 79.24 	(a) The Board of Trustees of the Minnesota State Colleges and Universities shall 
79.25 	develop a comprehensive plan to encourage students to complete degrees, diplomas, or 
79.26 	certificates in their fields of study. The board must consult with students, faculty, and 
79.27 	administrators of the state colleges and universities and the Office of Higher Education to 
79.28 	create a plan that would increase program completion at each state college or university. 
79.29 	Components of this plan may include, but are not limited to:
79.30 	(1) replacing developmental or remedial courses, when appropriate, with corequisite 
79.31 	courses in which students with academic deficiencies are placed into introductory 
79.32 	credit-bearing coursework while receiving supplemental academic instruction on the 
79.33 	same subject and during the same term;
80.1 	(2) expanding intrusive advising, including the use of early alert systems or requiring 
80.2 	the approval of an advisor or counselor to register for certain classes;
80.3 	(3) developing meta-majors in broad academic disciplines as an alternative to 
80.4 	undecided majors;
80.5 	(4) making available alternative mathematics curriculum, including curriculum most 
80.6 	relevant to the student's chosen area of study;
80.7 	(5) implementing "opt-out scheduling" by automatically enrolling students in a 
80.8 	schedule of courses chosen by the student's department but allowing students to disenroll 
80.9 	from such courses if they wish;
80.10 	(6) facilitating the transfer of credits between state colleges and universities; and
80.11 	(7) strategies to encourage students to enroll full time, including the use of financial 
80.12 	assistance to reduce a student's need to work.
80.13 	(b) The development of the plan required under this section shall not discourage the 
80.14 	development or delay the implementation or expansion of existing programs to encourage 
80.15 	college completion.
80.16 	(c) The Board of Trustees of the Minnesota State Colleges and Universities shall 
80.17 	submit a report describing the plan developed under this section and an implementation 
80.18 	schedule to the legislative committees with jurisdiction over higher education policy no 
80.19 	later than January 15, 2016. This report must include identification of the financial and 
80.20 	other resources needed by state colleges or universities to implement the plan developed 
80.21 	under this section.

80.22 	Sec. 23. COLLEGE COMPLETION; UNIVERSITY OF MINNESOTA.
 80.23 	(a) The Board of Regents of the University of Minnesota is requested to develop a 
80.24 	comprehensive plan to encourage students to complete degrees, diplomas, or certificates 
80.25 	in their fields of study. The board is requested to consult with students, faculty, and 
80.26 	administrators of the University of Minnesota and the Office of Higher Education to create 
80.27 	a plan that would increase program completion among University of Minnesota students. 
80.28 	Components of this plan may include, but are not limited to:
80.29 	(1) offering interdisciplinary courses that encourage students to think across 
80.30 	disciplinary boundaries and take advantage of the universitywide intellectual expertise;
80.31 	(2) expanding undergraduate academic advising, including intrusive advising, and 
80.32 	the use of online advising tools;
80.33 	(3) assisting undecided students with personalized services to help them develop a 
80.34 	plan for major and career selection;
80.35 	(4) requiring all students to fill out, and regularly update, their four-year degree plans;
81.1 	(5) facilitating student transfers to the University of Minnesota through support of 
81.2 	the Minnesota Transfer Curriculum and other transfer tools;
81.3 	(6) developing strategies to encourage students to enroll full time and graduate 
81.4 	in four years; and
81.5 	(7) enhancing financial literacy programs that focus on low-income students.
81.6 	(b) The development of the plan required under this section shall not discourage the 
81.7 	development or delay the implementation or expansion of existing programs to encourage 
81.8 	college completion.
81.9 	(c) The Board of Regents of the University of Minnesota shall submit a report 
81.10 	describing the plan developed under this section and an implementation schedule to the 
81.11 	legislative committees with jurisdiction over higher education policy no later than January 
81.12 	15, 2016. This report must include identification of the financial and other resources 
81.13 	needed to implement the plan developed under this section.

81.14 	Sec. 24. COUNSELING FOR COLLEGE STUDENT LOAN DEBTORS.
 81.15 		Subdivision 1.Pilot program created. The commissioner of the Office of Higher 
81.16 	Education shall make a grant to a nonprofit qualified debt counseling organization to 
81.17 	provide individual student loan debt repayment counseling to borrowers who are Minnesota 
81.18 	residents concerning loans obtained to attend a Minnesota postsecondary institution. The 
81.19 	counseling shall be provided to borrowers who are 30 to 60 days delinquent when they 
81.20 	are referred to or otherwise identified by the organization as candidates for counseling. 
81.21 	The number of individuals receiving counseling may be limited to those capable of being 
81.22 	served with available appropriations for that purpose. A goal of the counseling program is 
81.23 	to provide two counseling sessions to at least 75 percent of borrowers receiving counseling.
81.24 	The purpose of the counseling is to assist borrowers to:
81.25 	(1) understand their loan and repayment options; 
81.26 	(2) manage loan repayment; and
81.27 	(3) develop a workable budget based on the borrower's full financial situation 
81.28 	regarding income, expenses, and other debt.
81.29 		Subd. 2.Qualified debt counseling organization. A qualified debt counseling 
81.30 	organization is an organization that:
81.31 	(1) has experience in providing individualized student loan counseling;
81.32 	(2) employs certified financial loan counselors; and
81.33 	(3) has offices at multiple rural and metropolitan area locations in the state to 
81.34 	provide in-person counseling.
82.1 		Subd. 3.Grant application. Applications for a grant shall be on a form created by 
82.2 	the commissioner and on a schedule set by the commissioner. Among other provisions, 
82.3 	the application must include a description of:
82.4 	(1) the characteristics of borrowers to be served;
82.5 	(2) the services to be provided and a timeline for implementation of the services;
82.6 	(3) how the services provided will help borrowers manage loan repayment;
82.7 	(4) specific program outcome goals and performance measures for each goal; and
82.8 	(5) how the services will be evaluated to determine whether the program goals 
82.9 	were met.
82.10 		Subd. 4.Grant. The commissioner shall select one grant recipient.
82.11 		Subd. 5.Program evaluation. (a) The grant recipient must submit a report to the 
82.12 	Office of Higher Education by January 15, 2017. The report must evaluate and measure 
82.13 	the extent to which program outcome goals have been met.
82.14 	(b) The grant recipient must collect, analyze, and report on participation and 
82.15 	outcome data that enable the office to verify the outcomes.
82.16 	(c) The evaluation must include information on the number of borrowers served with 
82.17 	on-time student loan payments, the number who brought their loans into good standing, 
82.18 	the number of student loan defaults, the number who developed a monthly budget plan, 
82.19 	and other information required by the commissioner. Recipients of the counseling must be 
82.20 	surveyed on their opinions about the usefulness of the counseling and the survey results 
82.21 	must be included in the report.
82.22 		Subd. 6.Report to legislature. By February 1, 2017, the commissioner must 
82.23 	submit a report to the committees in the legislature with jurisdiction over higher education 
82.24 	finance regarding grant program outcomes.

82.25 	Sec. 25. HIGHER EDUCATION ATTAINMENT GOAL; INITIAL REPORT.
 82.26 	By October 15, 2015, the Office of Higher Education, after collaborating with the 
82.27 	state demographer's office, shall report to the chairs and ranking minority members of the 
82.28 	legislative committees with primary jurisdiction over higher education policy and finance, 
82.29 	on the baseline data and methodology that will be used to measure progress towards 
82.30 	the attainment goal specified in Minnesota Statutes, section 135A.012. The report shall 
82.31 	include information about the specific data and data sources that will be used to complete 
82.32 	the analyses, and make recommendations regarding the appropriate comparison groups 
82.33 	for conducting the analyses, and the manner in which data can be disaggregated by 
82.34 	distinct racial and ethnic group categories, and timeline benchmarks for meeting the goal 
82.35 	in Minnesota Statutes, section 135A.012, subdivision 2.

83.1 	Sec. 26. HUMAN SUBJECT RESEARCH STANDARDS; UNIVERSITY OF 
83.2 	MINNESOTA.
 83.3 	The Board of Regents of the University of Minnesota shall report monthly, 
83.4 	commencing July 1, 2015, to the chairs and ranking minority members of the legislative 
83.5 	committees with jurisdiction over higher education finance. The reports must describe 
83.6 	progress in developing and implementing a plan to conduct human subject research 
83.7 	at the university. The monthly reports must continue until the plan has been fully 
83.8 	implemented. The reports must include how the university will implement the individual 
83.9 	recommendations contained in the final report, dated February 23, 2015, titled "An 
83.10 	External Review of the Protection of Human Research Participants at the University of 
83.11 	Minnesota with Special Attention to Research with Adults who may lack Decision-Making 
83.12 	Capacity." The report was prepared pursuant to an agreement by the university with the 
83.13 	Association for the Accreditation of Human Research Protection Program (AAHRPP).
83.14 	The reports must, among other details, provide specific details about:
83.15 	(1) the changes to Institutional Review Board membership, policies, and practices;
83.16 	(2) the procedures required for obtaining and reviewing consents by individuals with 
83.17 	impaired decision-making abilities; and
83.18 	(3) the policy with respect to responding to concerns of family and others for the 
83.19 	well-being of human research subjects.

83.20 	EFFECTIVE DATE. This section is effective the day following final enactment.

83.21 	Sec. 27.  REPEALER.
 83.22 	Minnesota Rules, part 4830.7500, subparts 2a and 2b, are repealed.

83.23 	ARTICLE 4
83.24 	CAMPUS SEXUAL ASSAULT

83.25 	Section 1. Minnesota Statutes 2014, section 13.322, is amended by adding a 
83.26 	subdivision to read:
83.27 		Subd. 6.Campus sexual assault data. Data relating to allegations of sexual assault 
83.28 	at a postsecondary institution are classified under section 135A.15.

83.29 	EFFECTIVE DATE. This section is effective August 1, 2016.

83.30 	Sec. 2. Minnesota Statutes 2014, section 135A.15, is amended to read:
83.31 	135A.15 SEXUAL HARASSMENT AND VIOLENCE POLICY.
84.1 		Subdivision 1.Applicability; policy required. (a) This section applies to the 
84.2 	following postsecondary institutions:
84.3 	(1) institutions governed by the Board of Trustees of the Minnesota State Colleges 
84.4 	and Universities; and
84.5 	(2) private postsecondary institutions that offer in-person courses on a campus 
84.6 	located in Minnesota and which are eligible institutions as defined in section 136A.103, 
84.7 	provided that a private postsecondary institution with a systemwide enrollment of fewer 
84.8 	than 100 students in the previous academic year is exempt from subdivisions 4 to 10.
84.9 	Institutions governed by the Board of Regents of the University of Minnesota are 
84.10 	requested to comply with this section.
84.11 	The Board of Trustees of the Minnesota State Colleges and Universities shall, and 
84.12 	the University of Minnesota is requested to,(b) A postsecondary institution must adopt 
84.13 	a clear, understandable written policy on sexual harassment and sexual violence that 
84.14 	informs victims of their rights under the crime victims bill of rights, including the right to 
84.15 	assistance from the Crime Victims Reparations Board and the commissioner of public 
84.16 	safety. The policy must apply to students and employees and must provide information 
84.17 	about their rights and duties. The policy must apply to criminal incidents against a student 
84.18 	or employee of a postsecondary institution occurring on property owned or leased by the 
84.19 	postsecondary system or institution in which the victim is a student or employee of that 
84.20 	system or institution or at any activity, program, organization, or event sponsored by 
84.21 	the system or institution, or by a fraternity and sorority. It must include procedures for 
84.22 	reporting incidents of sexual harassment or sexual violence and for disciplinary actions 
84.23 	against violators. During student registration, each technical college, community college, 
84.24 	or state university shall, and the University of Minnesota is requested to,a postsecondary 
84.25 	institution shall provide each student with information regarding its policy. A copy of the 
84.26 	policy also shall be posted at appropriate locations on campus at all times. Each private 
84.27 	postsecondary institution that is an eligible institution as defined in section 136A.155, 
84.28 	must adopt a policy that meets the requirements of this section.
84.29 		Subd. 1a.Sexual assault definition. For the purposes of this section, "sexual 
84.30 	assault" means forcible sex offenses as defined in Code of Federal Regulations, title 34, 
84.31 	part 668, subpart D, appendix A, as amended.
84.32 		Subd. 2.Victims' rights. The policy required under subdivision 1 shall, at a 
84.33 	minimum, require that students and employees be informed of the policy, and shall 
84.34 	include provisions for:
84.35 	(1) filing criminal charges with local law enforcement officials in sexual assault cases;
85.1 	(2) the prompt assistance of campus authorities, at the request of the victim, in 
85.2 	notifying the appropriate law enforcement officials and disciplinary authorities of a 
85.3 	sexual assault incident;
85.4 	(3) allowing sexual assault victims to decide whether to report a case to law 
85.5 	enforcement;
85.6 	(4) requiring campus authorities to treat sexual assault victims with dignity;
85.7 	(5) requiring campus authorities to offer sexual assault victims fair and respectful 
85.8 	health care, counseling services, or referrals to such services;
85.9 	(6) preventing campus authorities from suggesting to a victim of sexual assault that 
85.10 	the victim is at fault for the crimes or violations that occurred;
85.11 	(7) preventing campus authorities from suggesting to a victim of sexual assault that 
85.12 	the victim should have acted in a different manner to avoid such a crime;
85.13 	(8) subject to subdivision 10, protecting the privacy of sexual assault victims by only 
85.14 	disclosing data collected under this section to the victim, persons whose work assignments 
85.15 	reasonably require access, and, at a sexual assault victim's request, police conducting 
85.16 	a criminal investigation;
85.17 	(3) (9) an investigation and resolution of a sexual assault complaint by campus 
85.18 	disciplinary authorities;
85.19 	(4) (10) a sexual assault victim's participation in and the presence of the victim's 
85.20 	attorney or other support person who is not a fact witness to the sexual assault at any 
85.21 	meeting with campus officials concerning the victim's sexual assault complaint or campus 
85.22 	disciplinary proceeding concerning a sexual assault complaint;
85.23 	(11) ensuring that a sexual assault victim may decide when to repeat a description 
85.24 	of the incident of sexual assault;
85.25 	(12) notice to a sexual assault victim of the availability of a campus or local program 
85.26 	providing sexual assault advocacy services;
85.27 	(5) (13) notice to a sexual assault victim of the outcome of any campus disciplinary 
85.28 	proceeding concerning a sexual assault complaint, consistent with laws relating to data 
85.29 	practices;
85.30 	(6) (14) the complete and prompt assistance of campus authorities, at the direction 
85.31 	of law enforcement authorities, in obtaining, securing, and maintaining evidence in 
85.32 	connection with a sexual assault incident;
85.33 	(7) (15) the assistance of campus authorities in preserving for a sexual assault 
85.34 	complainant or victim materials relevant to a campus disciplinary proceeding; and
85.35 	(8) (16) during and after the process of investigating a complaint and conducting 
85.36 	a campus disciplinary procedure, the assistance of campus personnel, in cooperation 
86.1 	with the appropriate law enforcement authorities, at a sexual assault victim's request, in 
86.2 	shielding the victim from unwanted contact with the alleged assailant, including transfer 
86.3 	of the victim to alternative classes or to alternative college-owned housing, if alternative 
86.4 	classes or housing are available and feasible.;
86.5 	(17) forbidding retaliation, and establishing a process for investigating complaints of 
86.6 	retaliation, against sexual assault victims by campus authorities, the accused, organizations 
86.7 	affiliated with the accused, other students, and other employees;
86.8 	(18) at the request of the victim, providing students who reported sexual assaults to 
86.9 	the institution and subsequently choose to transfer to another postsecondary institution 
86.10 	with information about resources for victims of sexual assault at the institution to which 
86.11 	the victim is transferring; and
86.12 	(19) consistent with laws governing access to student records, providing a student 
86.13 	who reported an incident of sexual assault with access to the student's description of the 
86.14 	incident as it was reported to the institution, including if that student transfers to another 
86.15 	postsecondary institution.
86.16 		Subd. 3.Uniform amnesty. The sexual harassment and violence policy required by 
86.17 	subdivision 1 must include a provision that a witness or victim of an incident of sexual 
86.18 	assault who reports the incident in good faith shall not be sanctioned by the institution 
86.19 	for admitting in the report to a violation of the institution's student conduct policy on the 
86.20 	personal use of drugs or alcohol.
86.21 		Subd. 4.Coordination with local law enforcement. (a) A postsecondary 
86.22 	institution must enter into a memorandum of understanding with the primary local law 
86.23 	enforcement agencies that serve its campus. The memorandum must be entered into no 
86.24 	later than January 1, 2017, and updated every two years thereafter. This memorandum 
86.25 	shall clearly delineate responsibilities and require information sharing, in accordance with 
86.26 	applicable state and federal privacy laws, about certain crimes including, but not limited 
86.27 	to, sexual assault. This memorandum of understanding shall provide:
86.28 	(1) delineation and sharing protocols of investigative responsibilities;
86.29 	(2) protocols for investigations, including standards for notification and 
86.30 	communication and measures to promote evidence preservation; and
86.31 	(3) a method of sharing information about specific crimes, when directed by the 
86.32 	victim, and a method of sharing crime details anonymously in order to better protect 
86.33 	overall campus safety.
86.34 	(b) Prior to the start of each academic year, a postsecondary institution shall 
86.35 	distribute an electronic copy of the memorandum of understanding to all employees on the 
86.36 	campus that are subject to the memorandum.
87.1 	(c) An institution is exempt from the requirement that it develop a memorandum of 
87.2 	understanding under this section if the institution and local or county law enforcement 
87.3 	agencies establish a sexual assault protocol team to facilitate effective cooperation and 
87.4 	collaboration between the institution and law enforcement.
87.5 		Subd. 5.Online reporting system. (a) A postsecondary institution must provide an 
87.6 	online reporting system to receive complaints of sexual harassment and sexual violence 
87.7 	from students and employees. The system must permit anonymous reports, provided 
87.8 	that the institution is not obligated to investigate an anonymous report unless a formal 
87.9 	report is submitted through the process established in the institution's sexual harassment 
87.10 	and sexual violence policy.
87.11 	(b) A postsecondary institution must provide students making reports under this 
87.12 	subdivision with information about who will receive and have access to the reports filed, 
87.13 	how the information gathered through the system will be used, and contact information for 
87.14 	on-campus and off-campus organizations serving victims of sexual violence.
87.15 	(c) Data collected under this subdivision is classified as private data on individuals 
87.16 	as defined by section 13.02, subdivision 12. Postsecondary institutions not otherwise 
87.17 	subject to chapter 13 must limit access to the data to only the data subject and persons 
87.18 	whose work assignments reasonably require access.
87.19 		Subd. 6.Data collection and reporting. (a) Postsecondary institutions must 
87.20 	annually report statistics on sexual assault. This report must be prepared in addition to 
87.21 	any federally required reporting on campus security, including reports required by the 
87.22 	Jeanne Clery Disclosure of Campus Security Policy and Campus Crime Statistics Act, 
87.23 	United States Code, title 20, section 1092(f). The report must include, but not be limited 
87.24 	to, the number of incidents of sexual assault reported to the institution in the previous 
87.25 	calendar year, as follows:
87.26 	(1) the number that were investigated by the institution;
87.27 	(2) the number that were referred for a disciplinary proceeding at the institution;
87.28 	(3) the number the victim chose to report to local or state law enforcement;
87.29 	(4) the number for which a campus disciplinary proceeding is pending, but has not 
87.30 	reached a final resolution;
87.31 	(5) the number in which the alleged perpetrator was found responsible by the 
87.32 	disciplinary proceeding at the institution;
87.33 	(6) the number that resulted in any action by the institution greater than a warning 
87.34 	issued to the accused;
87.35 	(7) the number that resulted in a disciplinary proceeding at the institution that closed 
87.36 	without resolution;
88.1 	(8) the number that resulted in a disciplinary proceeding at the institution that closed 
88.2 	without resolution because the accused withdrew from the institution;
88.3 	(9) the number that resulted in a disciplinary proceeding at the institution that closed 
88.4 	without resolution because the victim chose not to participate in the procedure; and
88.5 	(10) the number of reports made through the online reporting system established in 
88.6 	subdivision 5, excluding reports submitted anonymously.
88.7 	(b) If an institution previously submitted a report indicating that one or more 
88.8 	disciplinary proceedings was pending, but had not reached a final resolution, and one or 
88.9 	more of those disciplinary proceedings reached a final resolution within the previous 
88.10 	calendar year, that institution must submit updated totals from the previous year that 
88.11 	reflect the outcome of the pending case or cases.
88.12 	(c) The reports required by this subdivision must be submitted to the Office of 
88.13 	Higher Education by October 1 of each year. Each report must contain the data required 
88.14 	under paragraphs (a) and (b) from the previous calendar year.
88.15 	(d) The commissioner of the Office of Higher Education shall calculate statewide 
88.16 	numbers for each data item reported by an institution under this subdivision. The statewide 
88.17 	numbers must include data from postsecondary institutions that the commissioner could 
88.18 	not publish due to federal laws governing access to student records.
88.19 	(e) The Office of Higher Education shall publish on its Web site:
88.20 	(1) the statewide data calculated under paragraph (d); and
88.21 	(2) the data items required under paragraphs (a) and (b) for each postsecondary 
88.22 	institution in the state.
88.23 	Each postsecondary institution shall publish on the institution's Web site the data items 
88.24 	required under paragraphs (a) and (b) for that institution.
88.25 	(f) Reports and data required under this subdivision must be prepared and published 
88.26 	as summary data, as defined in section 13.02, subdivision 19, and must be consistent 
88.27 	with applicable law governing access to educational data. If an institution or the Office 
88.28 	of Higher Education does not publish data because of applicable law, the publication 
88.29 	must explain why data are not included.
88.30 		Subd. 7.Access to data; audit trail. (a) Data on incidents of sexual assault shared 
88.31 	with campus security officers or campus administrators responsible for investigating or 
88.32 	adjudicating complaints of sexual assault are classified as private data on individuals as 
88.33 	defined by section 13.02, subdivision 12, for the purposes of postsecondary institutions 
88.34 	subject to the requirements of chapter 13. Postsecondary institutions not otherwise subject 
88.35 	to chapter 13 must limit access to the data to only the data subject and persons whose 
88.36 	work assignments reasonably require access.
89.1 	(b) Only individuals with explicit authorization from an institution may enter, 
89.2 	update, or access electronic data related to an incident of sexual assault collected, created, 
89.3 	or maintained under this section. The ability of authorized individuals to enter, update, or 
89.4 	access these data must be limited through the use of role-based access that corresponds to 
89.5 	the official duties or training level of the individual and the institutional authorization that 
89.6 	grants access for that purpose. All actions in which the data related to an incident of sexual 
89.7 	assault are entered, updated, accessed, shared, or disseminated outside of the institution 
89.8 	must be recorded in a data audit trail. An institution shall immediately and permanently 
89.9 	revoke the authorization of any individual determined to have willfully entered, updated, 
89.10 	accessed, shared, or disseminated data in violation of this subdivision or any provision of 
89.11 	chapter 13. If an individual is determined to have willfully gained access to data without 
89.12 	explicit authorization, the matter shall be forwarded to a county attorney for prosecution.
89.13 		Subd. 8.Comprehensive training. (a) A postsecondary institution must provide 
89.14 	campus security officers and campus administrators responsible for investigating or 
89.15 	adjudicating complaints of sexual assault with comprehensive training on preventing and 
89.16 	responding to sexual assault in collaboration with the Bureau of Criminal Apprehension 
89.17 	or another law enforcement agency with expertise in criminal sexual conduct. The 
89.18 	training for campus security officers shall include a presentation on the dynamics of 
89.19 	sexual assault, neurobiological responses to trauma, and best practices for preventing, 
89.20 	responding to, and investigating sexual assault. The training for campus administrators 
89.21 	responsible for investigating or adjudicating complaints on sexual assault shall include 
89.22 	presentations on preventing sexual assault, responding to incidents of sexual assault, the 
89.23 	dynamics of sexual assault, neurobiological responses to trauma, and compliance with 
89.24 	state and federal laws on sexual assault.
89.25 	(b) The following categories of students who attend, or will attend, one or more 
89.26 	courses on campus or will participate in on-campus activities must be provided sexual 
89.27 	assault training:
89.28 	(1) students pursuing a degree or certificate;
89.29 	(2) students who are taking courses through the Postsecondary Enrollment Options 
89.30 	Act; and
89.31 	(3) any other categories of students determined by the institution.
89.32 	Students must complete such training no later than ten business days after the start of a 
89.33 	student's first semester of classes. Once a student completes the training, institutions must 
89.34 	document the student's completion of the training and provide proof of training completion 
89.35 	to a student at the student's request. Students enrolled at more than one institution within 
89.36 	the same system at the same time are only required to complete the training once. 
90.1 	The training shall include information about topics including but not limited to sexual 
90.2 	assault as defined in subdivision 1a; consent as defined in section 609.341, subdivision 
90.3 	4; preventing and reducing the prevalence of sexual assault; procedures for reporting 
90.4 	campus sexual assault; and campus resources on sexual assault, including organizations 
90.5 	that support victims of sexual assault.
90.6 	(c) A postsecondary institution shall annually train individuals responsible for 
90.7 	responding to reports of sexual assault. This training shall include information about 
90.8 	best practices for interacting with victims of sexual assault, including how to reduce the 
90.9 	emotional distress resulting from the reporting, investigatory, and disciplinary process.
90.10 		Subd. 9.Student health services. (a) An institution's student health service 
90.11 	providers must screen students for incidents of sexual violence and sexual harassment. 
90.12 	Student health service providers shall offer students information on resources available 
90.13 	to victims and survivors of sexual violence and sexual harassment including counseling, 
90.14 	mental health services, and procedures for reporting incidents to the institution.
90.15 	(b) Each institution offering student health or counseling services must designate an 
90.16 	existing staff member or existing staff members as confidential resources for victims of 
90.17 	sexual violence or sexual harassment. The confidential resource must be available to meet 
90.18 	with victims of sexual violence and sexual harassment. The confidential resource must 
90.19 	provide victims with information about locally available resources for victims of sexual 
90.20 	violence and sexual harassment including, but not limited to, mental health services and 
90.21 	legal assistance. The confidential resource must provide victims with information about 
90.22 	the process for reporting an incident of sexual violence and sexual harassment to campus 
90.23 	authorities or local law enforcement. The victim shall decide whether to report an incident 
90.24 	of sexual violence and sexual harassment to campus authorities or local law enforcement. 
90.25 	Confidential resources must be trained in all aspects of responding to incidents of sexual 
90.26 	violence and sexual harassment including, but not limited to, best practices for interacting 
90.27 	with victims of trauma, preserving evidence, campus disciplinary and local legal processes, 
90.28 	and locally available resources for victims. Data shared with a confidential resource is 
90.29 	classified as sexual assault communication data as defined by section 13.822, subdivision 1.
90.30 		Subd. 10.Applicability of other laws. This section does not exempt mandatory 
90.31 	reporters from the requirements of section 626.556 or 626.557 governing the reporting of 
90.32 	maltreatment of minors or vulnerable adults. Nothing in this section limits the authority of 
90.33 	an institution to comply with other applicable state or federal laws related to investigations 
90.34 	or reports of sexual harassment, sexual violence, or sexual assault.

90.35 	EFFECTIVE DATE. This section is effective August 1, 2016, except subdivision 
90.36 	9, paragraph (a), is effective January 1, 2017.

91.1 	Sec. 3. [626.891] COOPERATION WITH POSTSECONDARY INSTITUTIONS.
91.2 	Local law enforcement agencies, including law enforcement agencies operated 
91.3 	by statutory cities, home rule charter cities, and counties must enter into and honor the 
91.4 	memoranda of understanding required under section 135A.15.

91.5 	EFFECTIVE DATE. This section is effective August 1, 2016.

91.6 	ARTICLE 5
91.7 	STATE GRANT

91.8 	Section 1. Minnesota Statutes 2014, section 136A.121, subdivision 6, is amended to 
91.9 	read:
91.10 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of: 
91.11 	(1) an allowance specified in law for living and miscellaneous expenses, and (2) an 
91.12 	allowance for tuition and fees equal to the lesser of the average tuition and fees charged 
91.13 	by the institution, or a tuition and fee maximum if one is established in law. If no living 
91.14 	and miscellaneous expense allowance is established in law, the allowance is equal to the 
91.15 	federal poverty guidelines for a one person household in Minnesota for nine months. If 
91.16 	no tuition and fee maximum is established in law, the allowance for tuition and fees is 
91.17 	equal to the lesser of: (1) the average tuition and fees charged by the institution, and (2) 
91.18 	for two-year programs, an amount equal to the highest tuition and fees charged at a public 
91.19 	two-year institution, or for four-year programs, an amount equal to the highest tuition and 
91.20 	fees charged at a public university.
91.21 	(b) For a student registering for less than full time, the office shall prorate the cost of 
91.22 	attendance to the actual number of credits for which the student is enrolled.
91.23 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
91.24 	correctional institution shall consist of the tuition and fee component in paragraph (a), 
91.25 	with no allowance for living and miscellaneous expenses.
91.26 	(d) For the purpose of this subdivision, "fees" include only those fees that are 
91.27 	mandatory and charged to full-time resident students attending the institution. Fees do 
91.28 	not include charges for tools, equipment, computers, or other similar materials where the 
91.29 	student retains ownership. Fees include charges for these materials if the institution retains 
91.30 	ownership. Fees do not include optional or punitive fees.

91.31 	Sec. 2. Minnesota Statutes 2014, section 136A.121, subdivision 7a, is amended to read:
91.32 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
91.33 	office to be more than sufficient to fund projected grant demand in the second year of the 
92.1 	biennium, the office may increase the living and miscellaneous expense allowance or the 
92.2 	tuition and fee maximums in the second year of the biennium by up to an amount that 
92.3 	retains sufficient appropriations to fund the projected grant demand. The adjustment may 
92.4 	be made one or more times. In making the determination that there are more than sufficient 
92.5 	funds, the office shall balance the need for sufficient resources to meet the projected 
92.6 	demand for grants with the goal of fully allocating the appropriation for state grants. An 
92.7 	increase in the living and miscellaneous expense allowance under this subdivision does 
92.8 	not carry forward into a subsequent biennium.