1.1 	A bill for an act
1.2 	relating to higher education; providing funding and policy changes for the Office 
1.3 	of Higher Education, the Minnesota State Colleges and Universities, the University 
1.4 	of Minnesota, and other related programs; modifying state grant program calculation 
1.5 	parameters; requiring reports; appropriating money;amending Minnesota Statutes 
1.6 	2016, sections 43A.06, subdivision 1; 135A.031, subdivision 7; 135A.15, 
1.7 	subdivision 1a; 136A.101, subdivision 5a; 136A.103; 136A.125, subdivisions 2, 
1.8 	4; 136A.1795, subdivision 4; 136A.62, by adding a subdivision; 136A.646; 
1.9 	136A.65, subdivisions 1a, 4, 7; 136A.653; 136A.657, by adding a subdivision; 
1.10 	136A.67; 136A.68; 136A.685; 136A.821, by adding subdivisions; 136A.822, 
1.11 	subdivisions 4, 6, 12, 13; 136A.826, subdivision 2; 136A.827, subdivisions 2, 3; 
1.12 	136A.828, subdivision 3; 136A.83; 136A.833; 136A.834, by adding a subdivision; 
1.13 	136A.902, subdivision 1; 148.89, subdivision 5; Laws 2015, chapter 69, article 3, 
1.14 	section 20, subdivision 10; proposing coding for new law in Minnesota Statutes, 
1.15 	chapters 135A; 136A; 136F; 137; 148.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	HIGHER EDUCATION APPROPRIATIONS

1.19	Section 1. HIGHER EDUCATION APPROPRIATIONS.
 	
1.20 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.21 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.22 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.23 	The figures "2018" and "2019" used in this article mean that the appropriations listed under 
1.24 	them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. 
1.25 	"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" 
1.26 	is fiscal years 2018 and 2019.

1.27				APPROPRIATIONS
	
1.28				Available for the Year
	
2.1				Ending June 30
	
2.2					2018
		2019

2.3
2.4	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.5	Subdivision 1.Total Appropriation
 	$
	252,725,000
	$
	248,535,000
	
2.6 	The amounts that may be spent for each 
2.7 	purpose are specified in the following 
2.8 	subdivisions.

2.9	Subd. 2.State Grants
 		193,281,000
		193,281,000
	
2.10 	If the appropriation in this subdivision for 
2.11 	either year is insufficient, the appropriation 
2.12 	for the other year is available for it.

2.13	Subd. 3.Child Care Grants
 		6,708,000
		6,709,000

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

2.15	Subd. 5.Interstate Tuition Reciprocity
 		11,018,000
		11,018,000
	
2.16 	If the appropriation in this subdivision for 
2.17 	either year is insufficient, the appropriation 
2.18 	for the other year is available to meet 
2.19 	reciprocity contract obligations.

2.20	Subd. 6.Safety Officer's Survivors
 		100,000
		100,000
	
2.21 	(a) This appropriation is to provide educational 
2.22 	benefits under Minnesota Statutes, section 
2.23 	299A.45, to eligible dependent children and 
2.24 	to the spouses of public safety officers killed 
2.25 	in the line of duty.
2.26 	(b) If the appropriation in this subdivision for 
2.27 	either year is insufficient, the appropriation 
2.28 	for the other year is available for it.

2.29	Subd. 7.Indian Scholarships
 		3,500,000
		3,500,000
	
2.30 	The commissioner must contract with or 
2.31 	employ at least one person with demonstrated 
2.32 	competence in American Indian culture and 
2.33 	residing in or near the city of Bemidji to assist 
3.1 	students with the scholarships under 
3.2 	Minnesota Statutes, section 136A.126, and 
3.3 	with other information about financial aid for 
3.4 	which the students may be eligible. Bemidji 
3.5 	State University must provide office space at 
3.6 	no cost to the Minnesota Office of Higher 
3.7 	Education for purposes of administering the 
3.8 	American Indian scholarship program under 
3.9 	Minnesota Statutes, section 136A.126. This 
3.10 	appropriation includes funding to administer 
3.11 	the American Indian scholarship program.

3.12	Subd. 8.Tribal College Grants
 		150,000
		150,000
	
3.13 	For tribal college assistance grants under 
3.14 	Minnesota Statutes, section 136A.1796.

3.15
3.16	Subd. 9.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
3.17 	(a) For the intervention for college attendance 
3.18 	program under Minnesota Statutes, section 
3.19 	136A.861.
3.20 	(b) This appropriation includes funding to 
3.21 	administer the intervention for college 
3.22 	attendance program grants.

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

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

3.25
3.26	Subd. 12.Minnesota Education Equity 
Partnership
 		45,000
		45,000

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

3.28
3.29	Subd. 14.United Family Medicine Residency 
Program
 		501,000
		501,000
	
3.30 	For a grant to United Family Medicine 
3.31 	residency program. This appropriation shall 
3.32 	be used to support up to 21 resident physicians 
3.33 	each year in family practice at United Family 
3.34 	Medicine residency programs and shall 
3.35 	prepare doctors to practice family care 
4.1 	medicine in underserved rural and urban areas 
4.2 	of the state. It is intended that this program 
4.3 	will improve health care in underserved 
4.4 	communities, provide affordable access to 
4.5 	appropriate medical care, and manage the 
4.6 	treatment of patients in a cost-effective 
4.7 	manner.

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

4.94.10
	Subd. 16.Statewide Longitudinal Education 
Data System
 		882,000
		882,000

4.11	Subd. 17.Hennepin County Medical Center
 		645,000
		645,000
	
4.12 	For transfer to Hennepin County Medical 
4.13 	Center for graduate family medical education 
4.14 	programs at Hennepin County Medical Center.

4.15
4.16	Subd. 18.MNSCU Two-Year Public College 
Program
 		3,481,000
		0
	
4.17 	For the MNSCU two-year public college 
4.18 	program under Laws 2015, chapter 69, article 
4.19 	3, section 20.

4.20	Subd. 19.College Possible
 		250,000
		250,000
	
4.21 	(a) This appropriation is for immediate transfer 
4.22 	to College Possible to support programs of 
4.23 	college admission and college graduation for 
4.24 	low-income students through an intensive 
4.25 	curriculum of coaching and support at both 
4.26 	the high school and postsecondary level.
4.27 	(b) This appropriation must, to the extent 
4.28 	possible, be proportionately allocated between 
4.29 	students from greater Minnesota and students 
4.30 	in the seven-county metropolitan area.
4.31 	(c) This appropriation must be used by College 
4.32 	Possible only for programs supporting students 
4.33 	who are residents of Minnesota and attending 
4.34 	colleges or universities within Minnesota.
5.1 	(d) By February 1 of each year, College 
5.2 	Possible must report to the chairs and ranking 
5.3 	minority members of the legislative 
5.4 	committees and divisions with jurisdiction 
5.5 	over higher education and E-12 education on 
5.6 	activities funded by this appropriation. The 
5.7 	report must include, but is not limited to, 
5.8 	information about the expansion of College 
5.9 	Possible in Minnesota, the number of College 
5.10 	Possible coaches hired, the expansion within 
5.11 	existing partner high schools, the expansion 
5.12 	of high school partnerships, the number of 
5.13 	high school and college students served, the 
5.14 	total hours of community service by high 
5.15 	school and college students, and a list of 
5.16 	communities and organizations benefiting 
5.17 	from student service hours.

5.18
5.19	Subd. 20.Addiction Medicine Graduate 
Fellowship Program
 		210,000
		0
	
5.20 	For the addiction medicine graduate fellowship 
5.21 	program under Laws 2016, chapter 189, article 
5.22 	1, section 2, subdivision 4.

5.23
5.24	Subd. 21.Large Animal Veterinarian Loan 
Forgiveness Program
 		250,000
		0
	
5.25 	For the large animal veterinarian loan 
5.26 	forgiveness program under Minnesota Statutes, 
5.27 	section 136A.1795. This is a onetime 
5.28 	appropriation and is available until June 30, 
5.29 	2024.

5.30
5.31	Subd. 22.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		2,000,000
		2,000,000
	
5.32 	(a) For spinal cord injury and traumatic brain 
5.33 	injury research grants authorized under 
5.34 	Minnesota Statutes, section 136A.901.
6.1 	(b) The commissioner may use no more than 
6.2 	three percent of this appropriation to 
6.3 	administer the grant program under this 
6.4 	subdivision.

6.5
6.6	Subd. 23.Summer Academic Enrichment 
Program
 		200,000
		200,000
	
6.7 	(a) For summer academic enrichment grants 
6.8 	under Minnesota Statutes, section 136A.091.
6.9 	(b) The commissioner may use no more than 
6.10 	three percent of this appropriation to 
6.11 	administer the grant program under this 
6.12 	subdivision.

6.13
6.14	Subd. 24.Dual Training Competency Grants; 
Office of Higher Education
 		2,000,000
		2,000,000
	
6.15 	(a) For training grants under Minnesota 
6.16 	Statutes, section 136A.246.
6.17 	(b) The commissioner may use no more than 
6.18 	three percent of this appropriation to 
6.19 	administer the grant program under this 
6.20 	subdivision.

6.21
6.22	Subd. 25.Dual Training Competency Grants; 
Department of Labor and Industry
 		200,000
		200,000
	
6.23 	For transfer to the commissioner of labor and 
6.24 	industry for identification of competency 
6.25 	standards for dual training under Minnesota 
6.26 	Statutes, section 175.45.

6.27	Subd. 26.Concurrent Enrollment Courses
 		340,000
		340,000
	
6.28 	(a) $225,000 in fiscal year 2018 and $225,000 
6.29 	in fiscal year 2019 are for grants to develop 
6.30 	new concurrent enrollment courses under 
6.31 	Minnesota Statutes, section 124D.09, 
6.32 	subdivision 10, that satisfy the elective 
6.33 	standard for career and technical education. 
6.34 	Any balance in the first year does not cancel 
6.35 	but is available in the second year.
7.1 	(b) $115,000 in fiscal year 2018 and $115,000 
7.2 	in fiscal year 2019 are for grants to 
7.3 	postsecondary institutions currently 
7.4 	sponsoring a concurrent enrollment course to 
7.5 	expand existing programs. The commissioner 
7.6 	shall determine the application process and 
7.7 	the grant amounts. The commissioner must 
7.8 	give preference to expanding programs that 
7.9 	are at capacity. Any balance in the first year 
7.10 	does not cancel but is available in the second 
7.11 	year.
7.12 	(c) By December 1 of each year, the office 
7.13 	shall submit a brief report to the chairs and 
7.14 	ranking minority members of the legislative 
7.15 	committees with jurisdiction over higher 
7.16 	education regarding:
7.17 	(1) the courses developed by grant recipients 
7.18 	and the number of students who enrolled in 
7.19 	the courses under paragraph (a); and
7.20 	(2) the programs expanded and the number of 
7.21 	students who enrolled in programs under 
7.22 	paragraph (b).

7.23	Subd. 27.Student Loan Debt Counseling
 		200,000
		200,000
	
7.24 	For student loan debt counseling under 
7.25 	Minnesota Statutes, section 136A.1705.

7.26	Subd. 28.Campus Sexual Assault Reporting
 		25,000
		25,000
	
7.27 	For the sexual assault reporting required under 
7.28 	Minnesota Statutes, section 135A.15.

7.29	Subd. 29.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
	
7.30 	(a) For the loan forgiveness program under 
7.31 	Minnesota Statutes, section 136A.1791.
8.1 	(b) The commissioner may use no more than 
8.2 	three percent of this appropriation to 
8.3 	administer the program under this subdivision.

8.4
8.5	Subd. 30.Student and Employer Connection 
Information System
 		405,000
		405,000
	
8.6 	For a grant to the Saint Paul Foundation in 
8.7 	accordance with Laws 2016, chapter 189, 
8.8 	article 1, section 2, subdivision 5. The 
8.9 	foundation must report by January 15 of each 
8.10 	year on activities under this subdivision to the 
8.11 	chairs and ranking minority members of the 
8.12 	legislative committees with jurisdiction over 
8.13 	higher education finance.

8.14
8.15	Subd. 31.Grants for Students with Intellectual 
and Developmental Disabilities
 		375,000
		375,000
	
8.16 	For grants for students with intellectual and 
8.17 	developmental disabilities under Minnesota 
8.18 	Statutes, section 136A.1215.

8.19
8.20	Subd. 32.Agricultural Educators Loan 
Forgiveness
 		250,000
		0
	
8.21 	For deposit in the agricultural education loan 
8.22 	forgiveness account.

8.23	Subd. 33.Loan Repayment Assistance Program
 		50,000
		50,000
	
8.24 	For a grant to the Loan Repayment Assistance 
8.25 	Program of Minnesota to provide education 
8.26 	debt relief to attorneys with full-time 
8.27 	employment providing legal advice or 
8.28 	representation to low-income clients or support 
8.29 	services for this work.

8.30	Subd. 34.Minnesota Life College
 		1,000,000
		1,000,000
	
8.31 	For a grant to Minnesota Life College for 
8.32 	need-based scholarships and tuition reduction.

8.33
8.34	Subd. 35.Aviation Degree Loan Forgiveness 
Program
 		50,000
		50,000
	
9.1 	For the aviation degree loan forgiveness 
9.2 	program under Minnesota Statutes, section 
9.3 	136A.1789.

9.4
9.5	Subd. 36.Greater Minnesota Loan Forgiveness 
Program
 		150,000
		150,000
	
9.6 	For the greater Minnesota loan forgiveness 
9.7 	program under Minnesota Statutes, section 
9.8 	136A.1788.

9.99.10
	Subd. 37.Teacher Candidates of Color 
Scholarship Program
 		200,000
		200,000
	
9.11 	For the teacher candidates of color scholarship 
9.12 	program under Minnesota Statutes, section 
9.13 	136A.1265.

9.14	Subd. 38.Agency Administration
 		2,564,000
		2,564,000

9.15	Subd. 39.Balances Forward
 					
9.16 	A balance in the first year under this section 
9.17 	does not cancel, but is available for the second 
9.18 	year.

9.19	Subd. 40.Transfers
 					
9.20 	The Minnesota Office of Higher Education 
9.21 	may transfer unencumbered balances from the 
9.22 	appropriations in this section to the state grant 
9.23 	appropriation, the interstate tuition reciprocity 
9.24 	appropriation, the child care grant 
9.25 	appropriation, the Indian scholarship 
9.26 	appropriation, the state work-study 
9.27 	appropriation, the get ready appropriation, and 
9.28 	the public safety officers' survivors 
9.29 	appropriation. Transfers from the child care 
9.30 	or state work-study appropriations may only 
9.31 	be made to the extent there is a projected 
9.32 	surplus in the appropriation. A transfer may 
9.33 	be made only with prior written notice to the 
9.34 	chairs and ranking minority members of the 
9.35 	senate and house of representatives 
10.1 	committees and divisions with jurisdiction 
10.2 	over higher education finance.

10.3
10.4
10.5	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

10.6	Subdivision 1.Total Appropriation
 	$
	715,237,000
	$
	724,995,000
	
10.7 	The amounts that may be spent for each 
10.8 	purpose are specified in the following 
10.9 	subdivisions.

10.10	Subd. 2.Central Office and Shared Services Unit
 		33,074,000
		33,074,000
	
10.11 	For the Office of the Chancellor and the 
10.12 	Shared Services Division.

10.13	Subd. 3.Operations and Maintenance
 		678,048,000
		687,806,000
	
10.14 	This appropriation includes $35,071,000 in 
10.15 	fiscal year 2018 and $44,929,000 in fiscal year 
10.16 	2019 for student tuition relief. The Board of 
10.17 	Trustees must establish tuition rates as 
10.18 	follows:
10.19 	(1) for the 2017-2018 academic year, the 
10.20 	tuition rate at colleges must not exceed the 
10.21 	2016-2017 academic year rate; and
10.22 	(2) for the 2018-2019 academic year, the 
10.23 	tuition rate at universities must not exceed the 
10.24 	2017-2018 academic year rate, and the tuition 
10.25 	rate at colleges must be reduced by at least 
10.26 	one percent compared to the 2017-2018 
10.27 	academic year rate.
10.28 	The student tuition relief may not be offset by 
10.29 	increases in mandatory fees, charges, or other 
10.30 	assessments to the student.
10.31 	This appropriation includes $500,000 in fiscal 
10.32 	year 2018 and $500,000 in fiscal year 2019 
10.33 	for a program for students with intellectual 
11.1 	and developmental disabilities under 
11.2 	Minnesota Statutes, section 136F.38.
11.3 	Of this amount, $150,000 in each year is 
11.4 	designated for the existing programs for 
11.5 	students with intellectual and developmental 
11.6 	disabilities at Ridgewater College and Central 
11.7 	Lakes College.
11.8 	This appropriation includes $5,000,000 in 
11.9 	fiscal year 2018 and $5,000,000 in fiscal year 
11.10 	2019 for upgrading the Integrated Statewide 
11.11 	Record System.
11.12 	This appropriation includes $1,250,000 in 
11.13 	fiscal year 2018 and $1,250,000 in fiscal year 
11.14 	2019 for workforce development scholarships 
11.15 	under Minnesota Statutes, section 136F.38.
11.16 	$140,000 each year is for transfer to the Cook 
11.17 	County Higher Education Board to provide 
11.18 	educational programming and academic 
11.19 	support services to remote regions in 
11.20 	northeastern Minnesota. The Cook County 
11.21 	Higher Education Board shall continue to 
11.22 	provide information to the Board of Trustees 
11.23 	on the number of students served, credit hours 
11.24 	delivered, and services provided to students.
11.25 	$175,000 in fiscal year 2018 and $175,000 in 
11.26 	fiscal year 2019 are for the 
11.27 	veterans-to-agriculture pilot program 
11.28 	established by Laws 2015, chapter 69, article 
11.29 	1, section 4, subdivision 3. The program shall 
11.30 	continue to conform to the requirements of 
11.31 	that subdivision. The appropriation shall be 
11.32 	used to support, in equal amounts, up to six 
11.33 	program sites statewide. No more than two 
11.34 	percent of the total appropriation provided by 
12.1 	this section may be used for administrative 
12.2 	purposes at the system level.
12.3 	No later than December 15, 2018, the program 
12.4 	shall report to the committees of the house of 
12.5 	representatives and the senate with jurisdiction 
12.6 	over issues related to agriculture, veterans 
12.7 	affairs, and higher education on program 
12.8 	operations, including information on 
12.9 	participation rates, new job placements, and 
12.10 	any unmet needs.
12.11 	$100,000 in fiscal year 2018 is for use by 
12.12 	Winona State University for HealthForce 
12.13 	Minnesota to develop educational materials 
12.14 	that increase awareness of career opportunities 
12.15 	available in the field of senior care. The 
12.16 	educational materials developed under this 
12.17 	provision must be appropriate for students in 
12.18 	K-12 education settings, dislocated workers, 
12.19 	and rural communities. Materials must be 
12.20 	developed in collaboration with employers 
12.21 	and trade organizations representing 
12.22 	employers in the field of senior care.
12.23 	Winona State University shall submit a report 
12.24 	by February 1, 2019, to the chairs and ranking 
12.25 	minority members of the legislative 
12.26 	committees with jurisdiction over higher 
12.27 	education finance and policy. The report must 
12.28 	include information about the materials 
12.29 	developed, to whom materials were 
12.30 	distributed, and identify any collaborations 
12.31 	with employers and trade organizations.
12.32 	Five percent of the fiscal year 2019 
12.33 	appropriation specified in this subdivision is 
12.34 	available according to the schedule in clauses 
12.35 	(1) to (5) in fiscal year 2019 when the Board 
13.1 	of Trustees of the Minnesota State Colleges 
13.2 	and Universities demonstrates to the 
13.3 	commissioner of management and budget that 
13.4 	the board has met the following specified 
13.5 	number of performance goals:
13.6 	(1) 100 percent if the board meets three, four, 
13.7 	or five goals;
13.8 	(2) 67 percent if two of the goals are met;
13.9 	(3) 33 percent if one of the goals are met; and
13.10 	(4) zero percent if none of the goals are met.
13.11 	The performance goals are:
13.12 	(1) increase by at least four percent in fiscal 
13.13 	year 2017, compared to fiscal year 2010, 
13.14 	degrees, diplomas, and certificates conferred 
13.15 	and provide a report to the chairs and ranking 
13.16 	minority members of the legislative 
13.17 	committees with jurisdiction over higher 
13.18 	education on the separate changes in the 
13.19 	number of degrees, diplomas, and certificates 
13.20 	conferred;
13.21 	(2) increase by at least five percent the fiscal 
13.22 	year 2017-related employment rate for 2016 
13.23 	graduates, compared to the 2013 rate for 2012 
13.24 	graduates;
13.25 	(3) for fiscal year 2018, reallocate $22,000,000 
13.26 	of costs. The Board of Trustees is requested 
13.27 	to redirect those funds to invest in direct 
13.28 	mission activities, stem growth in tuition and 
13.29 	student fees, and to programs that benefit 
13.30 	students;
13.31 	(4) decrease by at least ten percent the fiscal 
13.32 	year 2017 headcount of students enrolled in 
13.33 	developmental courses compared to fiscal year 
14.1 	2015 headcount of students enrolled in 
14.2 	developmental courses; and
14.3 	(5) increase by at least five percent the fiscal 
14.4 	year 2017 degrees awarded to students who 
14.5 	took no more than 128 credits for a 
14.6 	baccalaureate degree and 68 credits for 
14.7 	associate in arts, associate of science, or 
14.8 	associate in fine arts degrees, as compared to 
14.9 	the rate for 2013 graduates.
14.10 	By August 1, 2017, the Board of Trustees and 
14.11 	the Minnesota Office of Higher Education 
14.12 	must agree on specific numerical indicators 
14.13 	and definitions for each of the five goals that 
14.14 	will be used to demonstrate the Minnesota 
14.15 	State Colleges and Universities' attainment of 
14.16 	each goal. On or before April 1, 2018, the 
14.17 	Board of Trustees must report to the legislative 
14.18 	committees with primary jurisdiction over 
14.19 	higher education finance and policy the 
14.20 	progress of the Minnesota State Colleges and 
14.21 	Universities toward attaining the goals. The 
14.22 	appropriation base for the next biennium shall 
14.23 	include appropriations not made available 
14.24 	under this subdivision for failure to meet 
14.25 	performance goals. All of the appropriation 
14.26 	that is not available due to failure to meet 
14.27 	performance goals is appropriated to the 
14.28 	commissioner of the Office of Higher 
14.29 	Education for fiscal year 2019 for the purpose 
14.30 	of the state grant program under Minnesota 
14.31 	Statutes, section 136A.121.
14.32 	Performance metrics are intended to facilitate 
14.33 	progress toward the attainment goal under 
14.34 	Minnesota Statutes, section 135A.012.

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

15.1
15.2	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

15.3	Subdivision 1.Total Appropriation
 	$
	638,556,000
	$
	640,556,000

15.4	Appropriations by Fund
	
15.5	General
	636,399,000
	638,399,000
	
15.6	Health Care Access
	2,157,000
	2,157,000
	
15.7 	The amounts that may be spent for each 
15.8 	purpose are specified in the following 
15.9 	subdivisions.

15.10	Subd. 2.Operations and Maintenance
 		567,961,000
		569,961,000
	
15.11 	This appropriation includes funding for 
15.12 	operation and maintenance of the system. Of 
15.13 	the amount appropriated in this subdivision:
15.14 	$6,800,000 in fiscal year 2018 and $8,800,000 
15.15 	in fiscal year 2019 are for health training 
15.16 	restoration. This appropriation must be used 
15.17 	to support all of the following:
15.18 	(1) faculty physicians who teach at eight 
15.19 	residency program sites, including medical 
15.20 	resident and student training programs in the 
15.21 	Department of Family Medicine;
15.22 	(2) the Mobile Dental Clinic; and
15.23 	(3) expansion of geriatric education and family 
15.24 	programs.
15.25 	$1,000,000 in fiscal year 2018 and $1,000,000 
15.26 	in fiscal year 2019 are for the Minnesota 
15.27 	Discovery, Research, and Innovation Economy 
15.28 	program. This appropriation is to advance 
15.29 	research strengths to fight cancer, strengthen 
15.30 	communities, improve water quality, and 
15.31 	advance data.
15.32 	$300,000 in fiscal year 2018 and $300,000 in 
15.33 	fiscal year 2019 are for a program for students 
16.1 	with intellectual and developmental disabilities 
16.2 	under Minnesota Statutes, section 137.45.
16.3 	$750,000 in fiscal year 2018 and $750,000 in 
16.4 	fiscal year 2019 are for the University of 
16.5 	Minnesota, Morris branch, to cover the costs 
16.6 	of tuition waivers under Minnesota Statutes, 
16.7 	section 137.16.
16.8 	Five percent of the fiscal year 2019 
16.9 	appropriation specified in this subdivision is 
16.10 	available according to the schedule in clauses 
16.11 	(1) to (5) in fiscal year 2019 when the Board 
16.12 	of Regents of the University of Minnesota 
16.13 	demonstrates to the commissioner of 
16.14 	management and budget that the board has 
16.15 	met the following specified number of 
16.16 	performance goals:
16.17 	(1) 100 percent if the board meets three, four, 
16.18 	or five goals;
16.19 	(2) 67 percent if two of the goals are met;
16.20 	(3) 33 percent if one of the goals are met; and
16.21 	(4) zero percent if none of the goals are met.
16.22 	The performance goals are:
16.23 	(1) increase by at least one percent the 
16.24 	four-year, five-year, or six-year undergraduate 
16.25 	graduation rates, averaged over three years, 
16.26 	for students of color systemwide at the 
16.27 	University of Minnesota reported in fall 2018 
16.28 	over fall 2016. The average rate for fall 2016 
16.29 	is calculated with the graduation rates reported 
16.30 	in fall 2014, 2015, and 2016;
16.31 	(2) increase by at least two percent the total 
16.32 	number of undergraduate STEM degrees, 
16.33 	averaged over three years, conferred 
17.1 	systemwide by the University of Minnesota 
17.2 	reported in fiscal year 2018 over fiscal year 
17.3 	2016. The averaged number for fiscal year 
17.4 	2016 is calculated with the fiscal year 2014, 
17.5 	2015, and 2016 numbers;
17.6 	(3) increase by at least one percent the 
17.7 	four-year undergraduate graduation rate at the 
17.8 	University of Minnesota reported in fall 2018 
17.9 	over fall 2016. The average rate for fall 2016 
17.10 	is calculated with the graduation rates reported 
17.11 	in fall 2014, 2015, and 2016. The averaged 
17.12 	number for fiscal year 2016 is calculated with 
17.13 	the fiscal year 2014, 2015, and 2016 numbers;
17.14 	(4) for fiscal year 2018, reallocate $15,000,000 
17.15 	of administrative costs. The Board of Regents 
17.16 	is requested to redirect those funds to invest 
17.17 	in direct mission activities, stem growth in 
17.18 	cost of attendance, and to programs that 
17.19 	benefit students; and
17.20 	(5) increase licensing disclosures by three 
17.21 	percent for fiscal year 2018 over fiscal year 
17.22 	2017.
17.23 	By August 1, 2017, the Board of Regents and 
17.24 	the Office of Higher Education must agree on 
17.25 	specific numerical indicators and definitions 
17.26 	for each of the five goals that will be used to 
17.27 	demonstrate the University of Minnesota's 
17.28 	attainment of each goal. On or before April 1, 
17.29 	2018, the Board of Regents must report to the 
17.30 	legislative committees with primary 
17.31 	jurisdiction over higher education finance and 
17.32 	policy the progress of the University of 
17.33 	Minnesota toward attaining the goals. The 
17.34 	appropriation base for the next biennium shall 
17.35 	include appropriations not made available 
18.1 	under this subdivision for failure to meet 
18.2 	performance goals. All of the appropriation 
18.3 	that is not available due to failure to meet 
18.4 	performance goals is appropriated to the 
18.5 	commissioner of the Office of Higher 
18.6 	Education for fiscal year 2019 for the purpose 
18.7 	of the state grant program under Minnesota 
18.8 	Statutes, section 136A.121.
18.9 	Performance metrics are intended to facilitate 
18.10 	progress toward the attainment goal under 
18.11 	Minnesota Statutes, section 135A.012.

18.12	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
18.13 	This appropriation is from the health care 
18.14 	access fund.

18.15	Subd. 4.Special Appropriations

18.16	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
18.17 	For the Agricultural Experiment Station and 
18.18 	the Minnesota Extension Service:
18.19 	(1) the agricultural experiment stations and 
18.20 	Minnesota Extension Service must convene 
18.21 	agricultural advisory groups to focus research, 
18.22 	education, and extension activities on producer 
18.23 	needs and implement an outreach strategy that 
18.24 	more effectively and rapidly transfers research 
18.25 	results and best practices to producers 
18.26 	throughout the state;
18.27 	(2) this appropriation includes funding for 
18.28 	research and outreach on the production of 
18.29 	renewable energy from Minnesota biomass 
18.30 	resources, including agronomic crops, plant 
18.31 	and animal wastes, and native plants or trees. 
18.32 	The following areas should be prioritized and 
18.33 	carried out in consultation with Minnesota 
19.1 	producers, renewable energy, and bioenergy 
19.2 	organizations:
19.3 	(i) biofuel and other energy production from 
19.4 	perennial crops, small grains, row crops, and 
19.5 	forestry products in conjunction with the 
19.6 	Natural Resources Research Institute (NRRI);
19.7 	(ii) alternative bioenergy crops and cropping 
19.8 	systems; and
19.9 	(iii) biofuel coproducts used for livestock feed;
19.10 	(3) this appropriation includes funding for the 
19.11 	College of Food, Agricultural, and Natural 
19.12 	Resources Sciences to establish and provide 
19.13 	leadership for organic agronomic, 
19.14 	horticultural, livestock, and food systems 
19.15 	research, education, and outreach and for the 
19.16 	purchase of state-of-the-art laboratory, 
19.17 	planting, tilling, harvesting, and processing 
19.18 	equipment necessary for this project;
19.19 	(4) this appropriation includes funding for 
19.20 	research efforts that demonstrate a renewed 
19.21 	emphasis on the needs of the state's agriculture 
19.22 	community. The following areas should be 
19.23 	prioritized and carried out in consultation with 
19.24 	Minnesota farm organizations:
19.25 	(i) vegetable crop research with priority for 
19.26 	extending the Minnesota vegetable growing 
19.27 	season;
19.28 	(ii) fertilizer and soil fertility research and 
19.29 	development;
19.30 	(iii) soil, groundwater, and surface water 
19.31 	conservation practices and contaminant 
19.32 	reduction research;
20.1 	(iv) discovering and developing plant varieties 
20.2 	that use nutrients more efficiently;
20.3 	(v) breeding and development of turf seed and 
20.4 	other biomass resources in all three Minnesota 
20.5 	biomes;
20.6 	(vi) development of new disease-resistant and 
20.7 	pest-resistant varieties of turf and agronomic 
20.8 	crops;
20.9 	(vii) utilizing plant and livestock cells to treat 
20.10 	and cure human diseases;
20.11 	(viii) the development of dairy coproducts;
20.12 	(ix) a rapid agricultural response fund for 
20.13 	current or emerging animal, plant, and insect 
20.14 	problems affecting production or food safety;
20.15 	(x) crop pest and animal disease research;
20.16 	(xi) developing animal agriculture that is 
20.17 	capable of sustainably feeding the world;
20.18 	(xii) consumer food safety education and 
20.19 	outreach;
20.20 	(xiii) programs to meet the research and 
20.21 	outreach needs of organic livestock and crop 
20.22 	farmers; and
20.23 	(xiv) alternative bioenergy crops and cropping 
20.24 	systems; and growing, harvesting, and 
20.25 	transporting biomass plant material; and
20.26 	(5) by February 1, 2019, the Board of Regents 
20.27 	must submit a report to the legislative 
20.28 	committees and divisions with jurisdiction 
20.29 	over agriculture and higher education finance 
20.30 	on the status and outcomes of research and 
20.31 	initiatives funded in this paragraph.

20.32	(b) Health Sciences
		9,204,000
		9,204,000
	
21.1 	$346,000 each year is to support up to 12 
21.2 	resident physicians in the St. Cloud Hospital 
21.3 	family practice residency program. The 
21.4 	program must prepare doctors to practice 
21.5 	primary care medicine in rural areas of the 
21.6 	state. The legislature intends this program to 
21.7 	improve health care in rural communities, 
21.8 	provide affordable access to appropriate 
21.9 	medical care, and manage the treatment of 
21.10 	patients in a more cost-effective manner. The 
21.11 	remainder of this appropriation is for the rural 
21.12 	physicians associates program; the Veterinary 
21.13 	Diagnostic Laboratory; health sciences 
21.14 	research; dental care; the Biomedical 
21.15 	Engineering Center; and the collaborative 
21.16 	partnership between the University of 
21.17 	Minnesota and Mayo Clinic for regenerative 
21.18 	medicine, research, clinical translation, and 
21.19 	commercialization.

21.20	(c) Institute of Technology
		1,140,000
		1,140,000
	
21.21 	For the geological survey and the talented 
21.22 	youth mathematics program.

21.23	(d) System Special
		7,181,000
		7,181,000
	
21.24 	For general research, the Labor Education 
21.25 	Service, Natural Resources Research Institute, 
21.26 	Center for Urban and Regional Affairs, Bell 
21.27 	Museum of Natural History, and the 
21.28 	Humphrey exhibit.
21.29 	Of this amount, $2,000,000 in fiscal year 2018 
21.30 	and $2,000,000 in fiscal year 2019 are for the 
21.31 	Natural Resources Research Institute to invest 
21.32 	in applied research for economic development.

21.33
21.34	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,991,000
		7,991,000
	
22.1 	This appropriation is for the following 
22.2 	activities:
22.3 	(1) $7,491,000 in fiscal year 2018 and 
22.4 	$7,491,000 in fiscal year 2019 are for the 
22.5 	direct and indirect expenses of the 
22.6 	collaborative research partnership between the 
22.7 	University of Minnesota and the Mayo 
22.8 	Foundation for research in biotechnology and 
22.9 	medical genomics. An annual report on the 
22.10 	expenditure of these funds must be submitted 
22.11 	to the governor and the chairs of the legislative 
22.12 	committee responsible for higher education 
22.13 	finance by June 30 of each fiscal year.
22.14 	(2) $500,000 in fiscal year 2018 and $500,000 
22.15 	in fiscal year 2019 are to award competitive 
22.16 	grants to conduct research into the prevention, 
22.17 	treatment, causes, and cures of Alzheimer's 
22.18 	disease and other dementias.

22.19	Subd. 5.Academic Health Center
 					
22.20 	The appropriation for Academic Health Center 
22.21 	funding under Minnesota Statutes, section 
22.22 	297F.10, is estimated to be $22,250,000 each 
22.23 	year.

22.24	Sec. 5. MAYO CLINIC

22.25	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
22.26 	The amounts that may be spent are specified 
22.27 	in the following subdivisions.

22.28	Subd. 2.Medical School
 		665,000
		665,000
	
22.29 	The state must pay a capitation each year for 
22.30 	each student who is a resident of Minnesota. 
22.31 	The appropriation may be transferred between 
22.32 	each year of the biennium to accommodate 
22.33 	enrollment fluctuations. It is intended that 
23.1 	during the biennium the Mayo Clinic use the 
23.2 	capitation money to increase the number of 
23.3 	doctors practicing in rural areas in need of 
23.4 	doctors.

23.5
23.6	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
23.7 	The state must pay stipend support for up to 
23.8 	27 residents each year.

23.9 	ARTICLE 2
23.10 	PUBLIC POSTSECONDARY EDUCATION

23.11 	Section 1. Minnesota Statutes 2016, section 43A.06, subdivision 1, is amended to read:
23.12 		Subdivision 1.General. (a) The commissioner shall perform the duties assigned to the 
23.13 	commissioner by sections 3.855, 179A.01 to 179A.25 and this section.
23.14 	(b) The commissioner shall be the state labor negotiator for purposes of negotiating and 
23.15 	administering agreements with exclusive representatives of employees and shall perform 
23.16 	any other duties delegated by the commissioner subject to the limitations in paragraph (c).
23.17 	(c) The Board of Trustees of the Minnesota State Colleges and Universities may exercise 
23.18 	the powers under this section for employees included in the units provided in clauses (9), 
23.19 	(10), and (11) of section 179A.10, subdivision 2, except with respect to sections 43A.22 to 
23.20 	43A.31, which shall continue to be the responsibility of the commissioner. The commissioner 
23.21 	shall have the right to review and comment to the Minnesota State Colleges and Universities 
23.22 	on the board's final proposals prior to exchange of final positions with the designated 
23.23 	bargaining units as well as any requests for interest arbitration. The legislature encourages 
23.24 	the Board of Trustees, in coordination with the commissioner of management and budget 
23.25 	and the Board of Regents of the University of Minnesota, to endeavor in collective bargaining 
23.26 	negotiations to seek fiscal balance recognizing the ability of the employer to fund the 
23.27 	agreements or awards. When submitting a proposed collective bargaining agreement to the 
23.28 	Legislative Coordinating Commission and the legislature under section 3.855, subdivision 
23.29 	2, the Board of Trustees must use procedures and assumptions consistent with those used 
23.30 	by the commissioner in calculating the costs of the proposed contract. The Legislative 
23.31 	Coordinating Commission must, when considering a collective bargaining agreement or 
23.32 	arbitration award submitted by the Board of Trustees, evaluate market conditions affecting 
23.33 	the employees in the bargaining unit, equity with other bargaining units in the executive 
23.34 	branch, and the ability of the trustees and the state to fund the agreement or award.

24.1 	Sec. 2. Minnesota Statutes 2016, section 135A.031, subdivision 7, is amended to read:
24.2 		Subd. 7.Reports. (a) The University of Minnesota and the Minnesota State Colleges 
24.3 	and Universities systems shall include in their biennial budget proposals to the legislature:
24.4 	(1) a five-year history of systemwide expenditures, reported by:
24.5 	(i) functional areas, including instruction, research, public service, student financial aid, 
24.6 	and auxiliary services, and including direct costs and indirect costs, such as institutional 
24.7 	support, academic support, student services, and facilities management, associated with 
24.8 	each functional area; and
24.9 	(ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
24.10 	(2) a five-year history of the system's total instructional expenditures per full-year 
24.11 	equivalent student, by level of instruction, including upper-division undergraduate, 
24.12 	lower-division undergraduate, graduate, professional, and other categories of instructional 
24.13 	programs offered by the system;
24.14 	(3) a five-year history of the system's total revenues by funding source, including tuition, 
24.15 	state operations and maintenance appropriations, state special appropriations, other restricted 
24.16 	state funds, federal appropriations, sponsored research funds, gifts, auxiliary revenue, indirect 
24.17 	cost recovery, and any other revenue sources;
24.18 	(4) an explanation describing how state appropriations made to the system in the previous 
24.19 	biennium were allocated and the methodology used to determine the allocation;
24.20 	(5) data describing how the institution reallocated resources to advance the priorities set 
24.21 	forth in the budget submitted under section 135A.034 and the statewide objectives under 
24.22 	section 135A.011. The information must indicate whether instruction and support programs 
24.23 	received a reduction in or additional resources. The total amount reallocated must be clearly 
24.24 	explained;
24.25 	(6) the tuition rates and fees established by the governing board in each of the past ten 
24.26 	years and comparison data for peer institutions and national averages;
24.27 	(7) data on the number and proportion of students graduating within four, five, and six 
24.28 	years from universities and within three years from colleges as reported in the integrated 
24.29 	postsecondary education data system. These data must be provided for each institution by 
24.30 	race, ethnicity, and gender. Data and information must be submitted that describe the system's 
24.31 	plan and progress toward attaining the goals set forth in the plan to increase the number and 
24.32 	proportion of students that graduate within four, five, or six years from a university or within 
24.33 	three years from a college;
25.1 	(8) data on, and the methodology used to measure, the number of students traditionally 
25.2 	underrepresented in higher education enrolled at the system's institutions. Data and 
25.3 	information must be submitted that describe the system's plan and progress toward attaining 
25.4 	the goals set forth in the plan to increase the recruitment, retention, and timely graduation 
25.5 	of students traditionally underrepresented in higher education; and
25.6 	(9) data on the revenue received from all sources to support research or workforce 
25.7 	development activities or the system's efforts to license, sell, or otherwise market products, 
25.8 	ideas, technology, and related inventions created in whole or in part by the system. Data 
25.9 	and information must be submitted that describe the system's plan and progress toward 
25.10 	attaining the goals set forth in the plan to increase the revenue received to support research 
25.11 	or workforce development activities or revenue received from the licensing, sale, or other 
25.12 	marketing and technology transfer activities by the system.; and
25.13 	(10) data on work completed by any consultant who is not an employee of the system 
25.14 	for which the system paid in excess of $500,000. Data must include the name of the 
25.15 	consultant, the total cost incurred, a description of the work completed, and a description 
25.16 	of the reasons for using an outside consultant and not internal staff.
25.17 	(b) Data required by this subdivision shall be submitted by the public postsecondary 
25.18 	systems to the Minnesota Office of Higher Education and the Department of Management 
25.19 	and Budget and included in the biennial budget document. Representatives from each system, 
25.20 	in consultation with the commissioner of management and budget and the commissioner 
25.21 	of the Office of Higher Education, shall develop consistent reporting practices for this 
25.22 	purpose.
25.23 	(c) To the extent practicable, each system shall develop the ability to respond to legislative 
25.24 	requests for financial analyses that are more detailed than those required by this subdivision, 
25.25 	including but not limited to analyses that show expenditures or revenues by institution or 
25.26 	program, or in multiple categories of expenditures or revenues, and analyses that show 
25.27 	revenue sources for particular types of expenditures.

25.28 	Sec. 3. [135A.0432] AUTOMATIC ADMISSION.
25.29 		Subdivision 1.Automatic admission. Each Minnesota public postsecondary institution 
25.30 	must admit an applicant to the institution as an undergraduate student in a baccalaureate 
25.31 	program if:
25.32 	(1) the applicant graduated with a grade point average in the top ten percent of the 
25.33 	applicant's high school graduating class;
26.1 	(2) the applicant graduated from high school in one of the two years preceding the 
26.2 	academic year for which the applicant is applying for admission;
26.3 	(3) the applicant graduated from a public or private Minnesota high school; and
26.4 	(4) the applicant was a resident of Minnesota for at least the past two years of the 
26.5 	applicant's period of attendance at the Minnesota high school.
26.6 		Subd. 2.Applicant qualification. To qualify for admission under subdivision 1 of this 
26.7 	section, the applicant must:
26.8 	(1) submit an application before the expiration of the application filing deadline 
26.9 	established by the institution; and
26.10 	(2) provide a high school transcript or diploma that satisfies the requirements of 
26.11 	subdivision 1 of this section.
26.12 		Subd. 3.Other admissions. A graduating student who does not qualify for automatic 
26.13 	admission under subdivision 1 of this section may apply to any Minnesota public 
26.14 	postsecondary institution. The institution, after admitting students under subdivision 1, may 
26.15 	admit other applications for admission pursuant to the institution's standard admission 
26.16 	policies.
26.17 		Subd. 4.Scholarship dollars. The average amount of scholarship dollars per student 
26.18 	received by out-of-state students may not exceed the average amount of scholarship dollars 
26.19 	per student received by students admitted under this section.
26.20 		Subd. 5.University of Minnesota. The Board of Regents of the University of Minnesota 
26.21 	is requested to adopt a policy implementing this section.
26.22 		Subd. 6.Reporting requirement. By January 15 of each year, both the Board of Trustees 
26.23 	of the Minnesota State College and Universities and the Board of Regents of the University 
26.24 	of Minnesota must submit a report on automatic admissions to the chairs and ranking 
26.25 	minority members of the committees in the house of representatives and the senate with 
26.26 	jurisdiction over higher education finance and policy. The report must describe, in summary 
26.27 	form, the students admitted under subdivision 1 of this section including, but not limited 
26.28 	to, information regarding:
26.29 	(1) admission and matriculation;
26.30 	(2) retention;
26.31 	(3) academic performance;
26.32 	(4) program outcomes; and
27.1 	(5) demographic information including race, ethnicity, economic status, and geographic 
27.2 	distribution.

27.3 	EFFECTIVE DATE. This section is effective beginning in the 2018-2019 academic 
27.4 	year.

27.5 	Sec. 4. [135A.0434] MANDATORY STUDENT ACTIVITY FEES PROHIBITED.
27.6 		Subdivision 1.Mandatory fee prohibition. (a) The governing board of a public 
27.7 	postsecondary institution must not impose on students any mandatory fee funding 
27.8 	noninstructional student programs, activities, groups, or services.
27.9 	(b) This section does not prohibit mandatory fees paid by students that are directly related 
27.10 	to academic, administrative, or health services.
27.11 	(c) The Board of Regents of the University of Minnesota is requested to adopt a policy 
27.12 	implementing this section.
27.13 		Subd. 2.Penalty. If the Board of Regents of the University of Minnesota imposes a 
27.14 	mandatory fee in violation of this section, the commissioner of management and budget 
27.15 	must deduct an amount equal to the net revenue generated by that fee from the university's 
27.16 	appropriation base in the first year of the next biennium.

27.17 	Sec. 5. [135A.158] INFORMATION PROVIDED TO STUDENT PARENTS AND 
27.18 	PREGNANT STUDENTS.
27.19 	A public or regionally accredited private postsecondary educational institution must 
27.20 	provide information according to this section to students who are parents of one or more 
27.21 	children age 12 or younger, and to students who notify the institution that they are pregnant. 
27.22 	The information must include a fact sheet on the legal rights of student parents and pregnant 
27.23 	students and a list of resources to support student parents and pregnant students. The list of 
27.24 	resources may include resources for prenatal care, child care, transportation, and housing. 
27.25 	This information must be available in languages that reflect the primary languages of the 
27.26 	institution's student body.

27.27 	Sec. 6. [136F.38] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
27.28 	DEVELOPMENTAL DISABILITIES.
27.29 		Subdivision 1.Program required. The Board of Trustees of the Minnesota State Colleges 
27.30 	and Universities must offer an academic program for students with intellectual and 
27.31 	developmental disabilities, consistent with subdivisions 2 to 4.
28.1 		Subd. 2.Program locations. The program must be offered at no fewer than two college 
28.2 	or university campuses. The board must choose the campuses based on:
28.3 	(1) the ability to offer a robust program using existing facilities and resources; and
28.4 	(2) a goal to provide the program in diverse geographic regions of the state.
28.5 		Subd. 3.Enrollment and admission. A campus offering a program must establish an 
28.6 	enrollment goal of at least 15 incoming students per academic year. The board must establish 
28.7 	an application process for the program. A student who successfully completes the program 
28.8 	must be awarded a certificate, diploma, or other appropriate academic credential.
28.9 		Subd. 4.Curriculum and activities. (a) The program must provide an inclusive, 
28.10 	full-time, two-year residential college experience for students with intellectual and 
28.11 	developmental disabilities. The curriculum must include:
28.12 	(1) core courses that develop life skills, financial literacy, and the ability to live 
28.13 	independently;
28.14 	(2) rigorous academic work in a student's chosen field of study; and
28.15 	(3) an internship, apprenticeship, or other skills-based experience to prepare for 
28.16 	meaningful employment upon completion of the program.
28.17 	(b) In addition to academic requirements, the program must allow participating students 
28.18 	the opportunity to engage fully in campus life. Program activities must include, but are not 
28.19 	limited to:
28.20 	(1) the establishment of on-campus mentoring and peer support communities; and
28.21 	(2) opportunities for personal growth through leadership development and other 
28.22 	community engagement activities.
28.23 	(c) A participating campus may tailor its program curriculum and activities to highlight 
28.24 	academic programs, student and community life experiences, and employment opportunities 
28.25 	unique to that campus or the region of the state where the campus is located.
28.26 		Subd. 5.Reporting. By January 15 of each year, the board must submit a report on the 
28.27 	program to the chairs and ranking minority members of the committees in the house of 
28.28 	representatives and the senate with jurisdiction over higher education finance and policy. 
28.29 	The report must include, but need not be limited to, information regarding:
28.30 	(1) the number of students participating in the program;
28.31 	(2) program goals and outcomes; and
29.1 	(3) the success rate of participants.

29.2 	EFFECTIVE DATE. This section is effective for the 2018-2019 academic year and 
29.3 	later.

29.4 	Sec. 7. [136F.38] WORKFORCE DEVELOPMENT SCHOLARSHIPS.
29.5 		Subdivision 1.Program established. The board shall develop a scholarship program 
29.6 	to incentivize new students to enter high-demand occupations upon graduation.
29.7 		Subd. 2.Scholarship awards. The program shall award scholarships at the beginning 
29.8 	of an academic term, in the amount of $2,500, to be distributed evenly between two terms.
29.9 		Subd. 3.Program eligibility. (a) Scholarships shall be awarded only to a student eligible 
29.10 	for resident tuition, as defined in section 135A.043, who is enrolled in any of the following 
29.11 	programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health 
29.12 	care services; or (4) information technology.
29.13 	(b) The student must be enrolled for at least nine credits at a two-year college in the 
29.14 	Minnesota State Colleges and Universities system.
29.15 		Subd. 4.Renewal; cap. A student who has received a scholarship may apply again but 
29.16 	total lifetime awards are not to exceed $5,000 per student. Students may only be awarded 
29.17 	a second scholarship upon completion of two academic terms.
29.18 		Subd. 5.Administration. (a) The board shall establish an application process and other 
29.19 	guidelines for implementing this program.
29.20 	(b) The board shall give preference to students in financial need.
29.21 		Subd. 6.Report required. The board must submit an annual report by February 1 of 
29.22 	each year about the scholarship awards to the chairs and ranking minority members of the 
29.23 	senate and house of representatives committees with jurisdiction over higher education 
29.24 	finance and policy. The first report is due no later than February 1, 2019. The annual report 
29.25 	shall describe the following:
29.26 	(1) the number of students receiving a scholarship at each two-year college during the 
29.27 	previous fiscal year;
29.28 	(2) the number of scholarships awarded for each program of study or certification 
29.29 	described in subdivision 3, paragraph (a);
29.30 	(3) the number of scholarship recipients who completed a program of study or certification 
29.31 	described in subdivision 3, paragraph (a);
30.1 	(4) the number of scholarship recipients who secured employment by their graduation 
30.2 	date and those who secured employment within three months of their graduation date;
30.3 	(5) a list of occupations scholarship recipients are entering; and
30.4 	(6) the number of students who were denied a scholarship.

30.5 	Sec. 8. [137.45] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
30.6 	DEVELOPMENTAL DISABILITIES.
30.7 	The Board of Regents of the University of Minnesota is requested to offer an academic 
30.8 	program for students with intellectual and developmental disabilities, consistent with the 
30.9 	requirements of section 136F.38, subdivisions 2 to 5.

30.10 	EFFECTIVE DATE. This section is effective for the 2018-2019 academic year and 
30.11 	later.

30.12 	Sec. 9. Minnesota Statutes 2016, section 148.89, subdivision 5, is amended to read:
30.13 		Subd. 5.Practice of psychology. "Practice of psychology" means the observation, 
30.14 	description, evaluation, interpretation, or modification of human behavior by the application 
30.15 	of psychological principles, methods, or procedures for any reason, including to prevent, 
30.16 	eliminate, or manage symptomatic, maladaptive, or undesired behavior and to enhance 
30.17 	interpersonal relationships, work, life and developmental adjustment, personal and 
30.18 	organizational effectiveness, behavioral health, and mental health. The practice of psychology 
30.19 	includes, but is not limited to, the following services, regardless of whether the provider 
30.20 	receives payment for the services:
30.21 	(1) psychological research and teaching of psychology subject to the exemptions in 
30.22 	section 148.9075;
30.23 	(2) assessment, including psychological testing and other means of evaluating personal 
30.24 	characteristics such as intelligence, personality, abilities, interests, aptitudes, and 
30.25 	neuropsychological functioning;
30.26 	(3) a psychological report, whether written or oral, including testimony of a provider as 
30.27 	an expert witness, concerning the characteristics of an individual or entity;
30.28 	(4) psychotherapy, including but not limited to, categories such as behavioral, cognitive, 
30.29 	emotive, systems, psychophysiological, or insight-oriented therapies; counseling; hypnosis; 
30.30 	and diagnosis and treatment of:
30.31 	(i) mental and emotional disorder or disability;
31.1 	(ii) alcohol and substance dependence or abuse;
31.2 	(iii) disorders of habit or conduct;
31.3 	(iv) the psychological aspects of physical illness or condition, accident, injury, or 
31.4 	disability, including the psychological impact of medications;
31.5 	(v) life adjustment issues, including work-related and bereavement issues; and
31.6 	(vi) child, family, or relationship issues;
31.7 	(5) psychoeducational services and treatment; and
31.8 	(6) consultation and supervision.

31.9 	Sec. 10. [148.9075] LICENSURE EXEMPTIONS.
31.10 		Subdivision 1.Teaching and research. Nothing in sections 148.88 to 148.98 shall be 
31.11 	construed to prevent a person employed in a secondary, postsecondary, or graduate institution 
31.12 	from teaching and conducting research in psychology within an educational institution that 
31.13 	is recognized by a regional accrediting organization or by a federal, state, county, or local 
31.14 	government institution, agency, or research facility, so long as:
31.15 	(1) the institution, agency, or facility provides appropriate oversight mechanisms to 
31.16 	ensure public protections; and
31.17 	(2) the person is not providing direct clinical services to a client or clients as defined in 
31.18 	sections 148.88 to 148.98.
31.19 		Subd. 2.Students. Nothing in sections 148.88 to 148.98 shall prohibit the practice of 
31.20 	psychology under qualified supervision by practicum psychology students, predoctoral 
31.21 	psychology interns, or an individual who has earned a doctoral degree in psychology and 
31.22 	is in the process of completing their postdoctoral supervised psychological employment.

31.23 	ARTICLE 3
31.24 	OFFICE OF HIGHER EDUCATION

31.25 	Section 1. [136A.055] DEVELOPMENTAL EDUCATION REPORTING.
31.26 	(a) The commissioner must report on the department's Web site the following summary 
31.27 	data on students who graduated from a Minnesota high school and are attending a public 
31.28 	postsecondary institution in Minnesota:
31.29 	(1) the number of students placed in supplemental or developmental education;
32.1 	(2) the number of students who complete supplemental or developmental education 
32.2 	within one academic year;
32.3 	(3) the number of students that complete gateway courses in one academic year; and
32.4 	(4) time to complete a degree or certificate at a postsecondary institution.
32.5 	(b) Summary data must be aggregated by school district, high school, and postsecondary 
32.6 	institution. Summary data must be disaggregated by race, ethnicity, free or reduced-price 
32.7 	lunch eligibility, and age.
32.8 	(c) The commissioner must post the initial data on the department's Web site on or before 
32.9 	October 1, 2017, and must update the data at least annually thereafter.

32.10 	Sec. 2. Minnesota Statutes 2016, section 136A.101, subdivision 5a, is amended to read:
32.11 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means the 
32.12 	amount of a family's contribution to a student's cost of attendance, as determined by a federal 
32.13 	need analysis. For dependent students, the assigned family responsibility is 94 85 percent 
32.14 	of the parental contribution. For independent students with dependents other than a spouse, 
32.15 	the assigned family responsibility is 86 77 percent of the student contribution. For 
32.16 	independent students without dependents other than a spouse, the assigned family 
32.17 	responsibility is 50 41 percent of the student contribution.

32.18 	Sec. 3. [136A.1215] GRANTS FOR STUDENTS WITH INTELLECTUAL AND 
32.19 	DEVELOPMENTAL DISABILITIES.
32.20 		Subdivision 1.Establishment. A program is established to provide financial assistance 
32.21 	to students with intellectual and developmental disabilities that attend a Minnesota 
32.22 	postsecondary institution.
32.23 		Subd. 2.Eligible students. A postsecondary student is eligible for a grant under this 
32.24 	section if the student:
32.25 	(1) meets the eligibility requirements in section 136A.121, subdivision 2;
32.26 	(2) is a student with an intellectual disability, as defined in Code of Federal Regulations, 
32.27 	title 34, section 668.231, and is enrolled in a comprehensive transition and postsecondary 
32.28 	program under that section; and
32.29 	(3) attends an eligible institution, as defined in section 136A.101, subdivision 4.
32.30 		Subd. 3.Application. To receive a grant under this section, a student must apply in the 
32.31 	form and manner specified by the commissioner.
33.1 		Subd. 4.Grant amounts. (a) The amount of a grant under this section equals the tuition 
33.2 	and fees at the student's postsecondary institution, minus:
33.3 	(1) any Pell or state grants the student receives; and
33.4 	(2) any institutional aid the student receives.
33.5 	(b) If appropriations are insufficient to provide the full amount calculated under paragraph 
33.6 	(a) to all eligible applicants, the commissioner must reduce the grants of all recipients 
33.7 	proportionally.
33.8 		Subd. 5.Reporting. By February 15 of each year, the commissioner of higher education 
33.9 	must submit a report on the details of the program under this section to the legislative 
33.10 	committees with jurisdiction over higher education finance and policy. The report must 
33.11 	include the following information, broken out by postsecondary institution:
33.12 	(1) the number of students receiving an award;
33.13 	(2) the average and total award amounts; and
33.14 	(3) summary demographic data on award recipients.

33.15 	Sec. 4. Minnesota Statutes 2016, section 136A.125, subdivision 2, is amended to read:
33.16 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if the 
33.17 	applicant:
33.18 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the 
33.19 	state of Minnesota;
33.20 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled 
33.21 	as defined in section 125A.02, and who is receiving or will receive care on a regular basis 
33.22 	from a licensed or legal, nonlicensed caregiver;
33.23 	(3) is income eligible as determined by the office's policies and rules, but is not a recipient 
33.24 	of assistance from the Minnesota family investment program;
33.25 	(4) either has not earned a baccalaureate degree and has been enrolled full time less than 
33.26 	eight ten semesters or the equivalent, or has earned a baccalaureate degree and has been 
33.27 	enrolled full time less than eight ten semesters or the equivalent in a graduate or professional 
33.28 	degree program;
33.29 	(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate, 
33.30 	graduate, or professional degree, diploma, or certificate;
34.1 	(6) is enrolled in at least six credits in an undergraduate program or one credit in a 
34.2 	graduate or professional program in an eligible institution; and
34.3 	(7) is in good academic standing and making satisfactory academic progress.
34.4 	(b) A student who withdraws from enrollment for active military service after December 
34.5 	31, 2002, because the student was ordered to active military service as defined in section 
34.6 	190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical 
34.7 	professional, that substantially limits the student's ability to complete the term is entitled to 
34.8 	an additional semester or the equivalent of grant eligibility and will be considered to be in 
34.9 	continuing enrollment status upon return.

34.10 	Sec. 5. Minnesota Statutes 2016, section 136A.125, subdivision 4, is amended to read:
34.11 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant must be 
34.12 	based on:
34.13 	(1) the income of the applicant and the applicant's spouse;
34.14 	(2) the number in the applicant's family, as defined by the office; and
34.15 	(3) the number of eligible children in the applicant's family.
34.16 	(b) The maximum award to the applicant shall be $2,800 $3,000 for each eligible child 
34.17 	per academic year, except that the campus financial aid officer may apply to the office for 
34.18 	approval to increase grants by up to ten percent to compensate for higher market charges 
34.19 	for infant care in a community. The office shall develop policies to determine community 
34.20 	market costs and review institutional requests for compensatory grant increases to ensure 
34.21 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
34.22 	that will be awarded per child based on the factors in this subdivision. The chart shall include 
34.23 	a range of income and family size.
34.24 	(c) Applicants with family incomes at or below a percentage of the federal poverty level, 
34.25 	as determined by the commissioner, will qualify for the maximum award. The commissioner 
34.26 	shall attempt to set the percentage at a level estimated to fully expend the available 
34.27 	appropriation for child care grants. Applicants with family incomes exceeding that threshold 
34.28 	will receive the maximum award minus ten percent of their income exceeding that threshold. 
34.29 	If the result is less than zero, the grant is zero.
34.30 	(d) The academic year award amount must be disbursed by academic term using the 
34.31 	following formula:
34.32 	(1) the academic year amount described in paragraph (b);
35.1 	(2) divided by the number of terms in the academic year;
35.2 	(3) divided by 15 for undergraduate students and six for graduate and professional 
35.3 	students; and
35.4 	(4) multiplied by the number of credits for which the student is enrolled that academic 
35.5 	term, up to 15 credits for undergraduate students and six for graduate and professional 
35.6 	students.
35.7 	(e) Payments shall be made each academic term to the student or to the child care 
35.8 	provider, as determined by the institution. Institutions may make payments more than once 
35.9 	within the academic term.

35.10 	Sec. 6. [136A.1265] TEACHER CANDIDATES OF COLOR SCHOLARSHIPS.
35.11 		Subdivision 1.Definitions. (a) For the purposes of this section, the following terms have 
35.12 	the meanings given.
35.13 	(b) "Full-time study" means:
35.14 	(1) for an undergraduate student, enrollment in at least 15 credits or the equivalent; and
35.15 	(2) for a graduate student, enrollment in a number of credits that the student's institution  
35.16 	deems to be full time.
35.17 	(c) "Part-time study" means enrollment in fewer credits than are required to qualify as 
35.18 	full time under paragraph (b).
35.19 	(d) "Underrepresented racial or ethnic group" means a racial or ethnic group for which 
35.20 	the commissioner of education has determined that the percentage of Minnesota teachers 
35.21 	of the group, as measured under section 127A.05, subdivision 6, is lower than the percentage 
35.22 	of Minnesota students of the group as measured under section 120B.35, subdivision 3.
35.23 		Subd. 2.Establishment. A scholarship program for teacher candidates of color is 
35.24 	established to provide scholarships to qualified candidates with financial needs.
35.25 		Subd. 3.Eligibility. A person may apply for a scholarship if the person:
35.26 	(1) has been admitted to a teacher preparation program approved by the Board of Teaching 
35.27 	at an eligible institution located in Minnesota;
35.28 	(2) self-identifies to the teacher preparation program as a member of an underrepresented 
35.29 	racial or ethnic group;
35.30 	(3) is making satisfactory academic progress;
36.1 	(4) is a resident student; and
36.2 	(5) has a family adjusted gross income of $125,000 or less.
36.3 		Subd. 4.Amount. (a) The commissioner must establish scholarship amounts based upon 
36.4 	the financial need of eligible students. The commissioner must set scholarship amounts at 
36.5 	a level estimated to fully expend appropriations available for the program. Established 
36.6 	amounts are not rulemaking for purposes of chapter 14 or section 14.386.
36.7 	(b) A scholarship under this section must not exceed:
36.8 	(1) $10,000 per year; or
36.9 	(2) a student's cost of attendance minus the student's expected family contribution, as 
36.10 	determined by the federal need analysis.
36.11 	(c) The minimum scholarship under this section is $1,000 per year.
36.12 	(d) The amounts determined under paragraphs (a), (b), and (c) are for full-time study. 
36.13 	The amounts must be reduced and prorated per credit for part-time study.
36.14 	(e) The maximum total amount of scholarships from this scholarship per candidate is 
36.15 	$25,000.
36.16 		Subd. 5.Application. To apply for a scholarship, an eligible institution must submit an 
36.17 	application to the commissioner on behalf of an eligible student. The application must be 
36.18 	made in a form and manner specified by the commissioner, and must include a candidate's 
36.19 	name, self-identified racial and ethnic identity, gender, licensure area sought, and full-time 
36.20 	or part-time status.
36.21 		Subd. 6.Distribution. The commissioner must distribute scholarship funds to eligible 
36.22 	institutions on behalf of scholarship recipients. Institutions must distribute funds directly 
36.23 	to students.

36.24 	Sec. 7. [136A.1705] STUDENT LOAN DEBT COUNSELING.
36.25 		Subdivision 1.Grant. A program is established under the Office of Higher Education 
36.26 	to provide a grant to a Minnesota-based nonprofit qualified debt counseling organization 
36.27 	to provide individual student loan debt repayment counseling to borrowers who are Minnesota 
36.28 	residents concerning loans obtained to attend a postsecondary institution. The number of 
36.29 	individuals receiving counseling may be limited to those capable of being served with 
36.30 	available appropriations for that purpose. A goal of the counseling program is to provide 
36.31 	two counseling sessions to at least 75 percent of borrowers receiving counseling.
37.1 	The purpose of the counseling is to assist borrowers to:
37.2 	(1) understand their loan and repayment options;
37.3 	(2) manage loan repayment; and
37.4 	(3) develop a workable budget based on the borrower's full financial situation regarding 
37.5 	income, expenses, and other debt.
37.6 		Subd. 2.Qualified debt counseling organization. A qualified debt counseling 
37.7 	organization is an organization that:
37.8 	(1) has experience in providing individualized student loan counseling;
37.9 	(2) employs certified financial loan counselors; and
37.10 	(3) is based in Minnesota and has offices at multiple rural and metropolitan area locations 
37.11 	in the state to provide in-person counseling.
37.12 		Subd. 3.Grant application and award. (a) Applications for a grant shall be on a form 
37.13 	created by the commissioner and on a schedule set by the commissioner. Among other 
37.14 	provisions, the application must include a description of:
37.15 	(1) the characteristics of borrowers to be served;
37.16 	(2) the services to be provided and a timeline for implementation of the services;
37.17 	(3) how the services provided will help borrowers manage loan repayment;
37.18 	(4) specific program outcome goals and performance measures for each goal; and
37.19 	(5) how the services will be evaluated to determine whether the program goals were 
37.20 	met.
37.21 	(b) The commissioner shall select one grant recipient for a two-year award every two 
37.22 	years. A grant may be renewed biennially.
37.23 		Subd. 4.Program evaluation. (a) The grant recipient must submit a report to the 
37.24 	commissioner by January 15 of the second year of the grant award. The report must evaluate 
37.25 	and measure the extent to which program outcome goals have been met.
37.26 	(b) The grant recipient must collect, analyze, and report on participation and outcome 
37.27 	data that enable the office to verify the outcomes.
37.28 	(c) The evaluation must include information on the number of borrowers served with 
37.29 	on-time student loan payments, the numbers who brought their loans into good standing, 
37.30 	the number of student loan defaults, the number who developed a monthly budget plan, and 
38.1 	other information required by the commissioner. Recipients of the counseling must be 
38.2 	surveyed on their opinions about the usefulness of the counseling and the survey results 
38.3 	must be included in the report.
38.4 		Subd. 5.Report to legislature. By February 1 of the second year of each grant award, 
38.5 	the commissioner must submit a report to the committees in the legislature with jurisdiction 
38.6 	over higher education finance regarding grant program outcomes.

38.7 	Sec. 8. [136A.1788] GREATER MINNESOTA LOAN FORGIVENESS PROGRAM.
38.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
38.9 	the meanings given.
38.10 	(b) "Greater Minnesota" means the geographic areas in Minnesota located outside of 
38.11 	the metropolitan area as defined in section 473.121, subdivision 2.
38.12 	(c) "Debt-to-income ratio" means an applicant's monthly student loan payment obligation 
38.13 	under a ten-year standard repayment plan, divided by the applicant's monthly gross income.
38.14 	(d) "Qualifying educational institution" means an institution of higher education that 
38.15 	had in effect at the time of an applicant's attendance a program participation agreement 
38.16 	under United States Code, title 20, chapter 28, subchapter IV, part F, section 1094.
38.17 	(e) "Qualifying position" means a position as an employee, as defined in section 181.723, 
38.18 	subdivision 3, for which the primary work site is located in greater Minnesota.
38.19 	(f) "Qualifying student loan" means a government, commercial, or foundation loan for 
38.20 	actual costs paid for tuition and reasonable educational and living expenses related to 
38.21 	attending a qualifying educational institution.
38.22 	(g) "Working full time" means working an average of at least 30 hours per week.
38.23 		Subd. 2.Program established. (a) The commissioner must establish a greater Minnesota 
38.24 	loan forgiveness program for individuals who work in a qualifying position.
38.25 	(b) Appropriations to the program do not cancel and are available until expended.
38.26 		Subd. 3.Eligibility. (a) To be eligible to receive loan forgiveness under this section, an 
38.27 	applicant must:
38.28 	(1) be a Minnesota resident;
38.29 	(2) have a qualifying student loan balance;
38.30 	(3) have earned a degree, diploma, or certificate from a qualifying educational institution;
39.1 	(4) have worked full time for a 12-month period in one or more qualifying positions; 
39.2 	and
39.3 	(5) have a debt-to-income ratio of at least 0.10.
39.4 	(b) An eligible applicant may receive one loan forgiveness award of the amount specified 
39.5 	in this section for each 12-month period that the applicant works for a qualifying employer. 
39.6 	An individual may receive a loan forgiveness award under this section no more than five 
39.7 	times.
39.8 		Subd. 4.Application. (a) To be considered for a loan forgiveness award, an applicant 
39.9 	must apply in a form and manner specified by the commissioner.
39.10 	(b) An applicant must reapply to the commissioner each year that the applicant wishes 
39.11 	to receive an award. The application must include proof that the participant has worked full 
39.12 	time for a 12-month period for one or more qualifying employers.
39.13 		Subd. 5.Prioritization of applicants. If appropriations for the program under this 
39.14 	section are insufficient to provide a loan forgiveness award to each eligible applicant, the 
39.15 	commissioner must preferentially award loan forgiveness to applicants:
39.16 	(1) with a qualifying student loan balance of at least $5,000; and
39.17 	(2) working in occupations that do not qualify for other state or federal loan forgiveness 
39.18 	programs that are limited to particular occupations.
39.19 		Subd. 6.Amount of forgiveness. (a) The commissioner must provide a loan forgiveness 
39.20 	award to an eligible applicant on a funds available basis, as provided in this section.
39.21 	(b) For each year of qualifying full-time work a participant completes, the participant 
39.22 	is eligible for a loan forgiveness award equal to the lesser of:
39.23 	(1) $3,000;
39.24 	(2) ten percent of the remaining balance of a participant's qualifying student loans the 
39.25 	first year a participant received an award under this section; or
39.26 	(3) the remaining balance of a participant's qualifying student loans.
39.27 		Subd. 7.Disbursement. The commissioner must disburse an award under this section 
39.28 	directly to the participant's student loan servicer or servicers.
39.29 		Subd. 8.Fund established. A greater Minnesota loan forgiveness fund is created for 
39.30 	depositing money appropriated to or received by the commissioner for the program. Money 
40.1 	deposited in the fund shall not revert to any state fund at the end of any fiscal year but 
40.2 	remains in the fund and is continuously available for loan forgiveness under this section.
40.3 		Subd. 9.Reporting. By February 1 of each year, the commissioner must annually report 
40.4 	to the legislative committees with jurisdiction over higher education and economic 
40.5 	development on the results of the program in the previous year. At a minimum, the report 
40.6 	must include data on:
40.7 	(1) the number of applicants;
40.8 	(2) the highest degree obtained by applicants;
40.9 	(3) the industries in which applicants worked;
40.10 	(4) the counties in which applicants worked and resided;
40.11 	(5) the average student loan balance of applicants;
40.12 	(6) the mean and median loan forgiveness award;
40.13 	(7) the total amount of debt forgiven under the program;
40.14 	(8) the mean and median income of applicants;
40.15 	(9) the mean debt-to-income ratio of applicants; and
40.16 	(10) the number of greater Minnesota loan forgiveness awards that award recipients 
40.17 	received previously.

40.18 	Sec. 9. [136A.1789] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.
40.19 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
40.20 	have the meanings given them.
40.21 	(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's 
40.22 	or bachelor's degree from a postsecondary institution located in Minnesota, and (2) has 
40.23 	obtained an aviation mechanic's certificate from the Federal Aviation Administration.
40.24 	(c) "Qualified education loan" means a government, commercial, or foundation loan 
40.25 	used by an individual for actual costs paid for tuition to a postsecondary institution located 
40.26 	in Minnesota for a professional flight training degree.
40.27 	(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's 
40.28 	degree in professional flight training from a postsecondary institution located in Minnesota, 
40.29 	and (2) is in the process of obtaining or has obtained an airline transport pilot certificate.
41.1 		Subd. 2.Creation of account. (a) An aviation degree loan forgiveness program account 
41.2 	is established to provide qualified pilots and qualified aircraft technicians with financial 
41.3 	assistance in repaying qualified education loans. The commissioner must use money from 
41.4 	the account to establish and administer the aviation degree loan forgiveness program.
41.5 	(b) Appropriations made to the aviation degree loan forgiveness program account do 
41.6 	not cancel and are available until expended.
41.7 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program 
41.8 	under this section, an individual must:
41.9 	(1) be a qualified pilot or qualified aircraft technician;
41.10 	(2) have qualified education loans;
41.11 	(3) reside in Minnesota; and
41.12 	(4) submit an application to the commissioner in the form and manner prescribed by the 
41.13 	commissioner.
41.14 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
41.15 	one-year full-time service obligation according to subdivision 4. To complete the service 
41.16 	obligation, the applicant must work full time in Minnesota as a qualified pilot or qualified 
41.17 	aircraft technician. A participant must complete one year of service under this paragraph 
41.18 	for each year the participant receives an award under this section.
41.19 		Subd. 4.Service obligation. (a) Before receiving loan repayment disbursements and as 
41.20 	requested, a participant must verify to the commissioner that the participant is employed in 
41.21 	a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
41.22 	(b) If a participant does not fulfill the required service obligation, the commissioner 
41.23 	must collect from the participant the total amount paid to the participant under the loan 
41.24 	forgiveness program plus interest at a rate established according to section 270C.40. The 
41.25 	commissioner must deposit the money collected in the aviation degree loan forgiveness 
41.26 	account. The commissioner must allow waivers of all or part of the money owed the 
41.27 	commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented 
41.28 	fulfillment of the minimum service commitment.
41.29 		Subd. 5.Loan forgiveness. (a) The commissioner may select eligible applicants each 
41.30 	year for participation in the aviation degree loan forgiveness program, within the limits of 
41.31 	available funding. Applicants are responsible for securing their own qualified education 
41.32 	loans.
42.1 	(b) For each year that the participant meets the eligibility requirements under subdivision 
42.2 	3, the commissioner must make annual disbursements directly to:
42.3 	(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified 
42.4 	education loans, whichever is less; and
42.5 	(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's 
42.6 	qualified education loans, whichever is less.
42.7 	(c) An individual may receive disbursements under this section for a maximum of five 
42.8 	years.
42.9 	(d) The participant must provide the commissioner with verification that the full amount 
42.10 	of the loan repayment disbursement received by the participant has been applied toward the 
42.11 	designated qualified education loan. After each disbursement, verification must be received 
42.12 	by the commissioner and approved before the next repayment disbursement is made.
42.13 	(e) If the participant receives a disbursement in the participant's fifth year of eligibility, 
42.14 	the participant must provide the commissioner with verification that the full amount of the 
42.15 	participant's final loan repayment disbursement was applied toward the designated qualified 
42.16 	education loan. If a participant does not provide the verification as required under this 
42.17 	paragraph within six months of receipt of the final disbursement, the commissioner must 
42.18 	collect from the participant the amount of the final disbursement. The commissioner must 
42.19 	deposit the money collected in the aviation degree loan forgiveness program account.
42.20 		Subd. 6.Rules. The commissioner may adopt rules to implement this section.

42.21 	Sec. 10. [136A.1794] AGRICULTURAL EDUCATION LOAN FORGIVENESS 
42.22 	PROGRAM.
42.23 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
42.24 	have the meanings given.
42.25 	(b) "Qualified education loan" means a government, commercial, or foundation loan for 
42.26 	actual costs paid for tuition, reasonable education expenses, and reasonable living expenses 
42.27 	related to the graduate or undergraduate education of a qualified teacher.
42.28 	(c) "Qualified teacher" means a teacher licensed under chapter 122A who:
42.29 	(1) is employed in a nonadministrative position teaching agricultural education in any 
42.30 	grade from grades 5 through 12 at a Minnesota school during the current year; and
43.1 	(2) has completed an undergraduate or graduate program in agricultural education at a 
43.2 	college or university approved by the state of Minnesota to prepare persons for teacher 
43.3 	licensure.
43.4 	(d) "School" means the following:
43.5 	(1) a school or program operated by a school district or a group of school districts;
43.6 	(2) a tribal contract school eligible to receive aid according to section 124D.83;
43.7 	(3) a charter school; or
43.8 	(4) a private school.
43.9 		Subd. 2.Account; appropriation. An agricultural education loan forgiveness account 
43.10 	is established in the special revenue fund to provide qualified teachers with financial 
43.11 	assistance to repay qualified education loans. Money in the account, including interest, is 
43.12 	appropriated to the commissioner for purposes of this section.
43.13 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program 
43.14 	under this section, an individual must:
43.15 	(1) be a qualified teacher;
43.16 	(2) have qualified education loans; and
43.17 	(3) submit an application to the commissioner in the form and manner prescribed by the 
43.18 	commissioner.
43.19 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
43.20 	one-year full-time service obligation according to subdivision 4. To complete the service 
43.21 	obligation, the applicant must work full time in Minnesota as a qualified teacher. A participant 
43.22 	must complete one year of service under this paragraph for each year the participant receives 
43.23 	an award under this section.
43.24 		Subd. 4.Service obligation. (a) Before receiving loan repayment disbursements and as 
43.25 	requested, a participant must verify to the commissioner that the participant is employed in 
43.26 	a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
43.27 	(b) If a participant does not fulfill the required service obligation, the commissioner 
43.28 	must collect from the participant the total amount paid to the participant under the loan 
43.29 	forgiveness program plus interest at a rate established according to section 270C.40. The 
43.30 	commissioner must deposit the money collected in the agricultural education loan forgiveness 
43.31 	account. The commissioner must allow waivers of all or part of the money owed the 
44.1 	commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented 
44.2 	fulfillment of the minimum service commitment.
44.3 		Subd. 5.Loan forgiveness. (a) The commissioner may select eligible applicants each 
44.4 	year for participation in the agricultural education loan forgiveness program, within the 
44.5 	limits of available funding. Applicants are responsible for securing their own qualified 
44.6 	education loans.
44.7 	(b) The commissioner must make annual disbursements directly to the eligible participant 
44.8 	of $3,000 or the balance of the participant's qualified education loans, whichever is less, 
44.9 	for each year that the participant meets the eligibility requirements under subdivision 3, up 
44.10 	to a maximum of five years.
44.11 	(c) The participant must provide the commissioner with verification that the full amount 
44.12 	of the loan repayment disbursement received by the participant has been applied toward the 
44.13 	designated qualified education loan. After each disbursement, verification must be received 
44.14 	by the commissioner and approved before the next repayment disbursement is made.

44.15 	Sec. 11. Minnesota Statutes 2016, section 136A.653, is amended by adding a subdivision 
44.16 	to read:
44.17 		Subd. 5.Regionally accredited nonprofit institutions in Minnesota. (a) A regionally 
44.18 	accredited nonprofit postsecondary institution with its primary physical location in Minnesota 
44.19 	is exempt from the provisions of sections 136A.61 to 136A.71 when it creates new or 
44.20 	modifies existing:
44.21 	(1) majors, minors, concentrations, specializations, and areas of emphasis within approved 
44.22 	degrees;
44.23 	(2) nondegree programs within approved degrees;
44.24 	(3) underlying curriculum or courses;
44.25 	(4) modes of delivery;
44.26 	(5) locations; and
44.27 	(6) fees related to clauses (1) to (5).
44.28 	(b) The institution must annually notify the commissioner of the exempt actions listed 
44.29 	in paragraph (a) and, upon the commissioner's request, must provide additional information 
44.30 	about the action.
44.31 	(c) The institution must notify the commissioner within 60 days of a program closing.
45.1 	(d) Nothing in this subdivision exempts an institution from the annual registration and 
45.2 	degree approval requirements of sections 136A.61 to 136A.71.

45.3 	Sec. 12. Minnesota Statutes 2016, section 136A.685, is amended to read:
45.4 	136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR 
45.5 	MISREPRESENTATION.
45.6 	The office shall not provide may revoke, or deny an application for, registration or degree 
45.7 	or name approval to a school if there has been a criminal, civil, or administrative adjudication 
45.8 	of fraud or misrepresentation in Minnesota or in another state or jurisdiction against the 
45.9 	school or its owner, officers, agents, or sponsoring organization. If the adjudication was 
45.10 	related to a particular academic program, the office may revoke degree approval, or deny 
45.11 	an application for degree approval, for that program only.
45.12 	The adjudication of fraud or misrepresentation is sufficient cause for the office to 
45.13 	determine that a school:
45.14 	(1) does not qualify for exemption under section 136A.657; or
45.15 	(2) is not approved to grant degrees or to use the term "academy," "college," "institute," 
45.16 	or "university" in its name.

45.17 	Sec. 13. Minnesota Statutes 2016, section 136A.902, subdivision 1, is amended to read:
45.18 		Subdivision 1.Membership. The commissioner shall appoint a 12-member14-member
45.19 	advisory council consisting of:
45.20 	(1) one member representing the University of Minnesota Medical School;
45.21 	(2) one member representing the Mayo Medical School;
45.22 	(3) one member representing the Courage Kenny Rehabilitation Center;
45.23 	(4) one member representing Hennepin County Medical Center;
45.24 	(5) one member who is a neurosurgeon;
45.25 	(6) one member who has a spinal cord injury;
45.26 	(7) one member who is a family member of a person with a spinal cord injury;
45.27 	(8) one member who has a traumatic brain injury;
45.28 	(9) one member who is a veteran who has a spinal cord injury or a traumatic brain injury;
45.29 	(10) one member who is a veteran who has a traumatic brain injury;
46.1 	(11) one member who is a family member of a person with a traumatic brain injury;
46.2 	(11) (12) one member who is a physician specializing in the treatment of spinal cord 
46.3 	injury representing Gillette Children's Specialty Healthcare; and
46.4 	(12) (13) one member who is a physician specializing in the treatment of traumatic brain 
46.5 	injury; and
46.6 	(14) one member representing Gillette Children's Specialty Healthcare.

46.7 	Sec. 14. STATE GRANT REPORT.
 46.8 	(a) The commissioner of higher education must report to the legislature the estimated 
46.9 	amount of funding necessary for the state grant program to fully meet the financial aid needs 
46.10 	of lower- and middle-income Minnesota college students based on the program's shared 
46.11 	responsibility design. The report must include an estimate of:
46.12 	(1) the amount a student should be expected to contribute toward the cost of education 
46.13 	through borrowing and employment;
46.14 	(2) the amount a student's family should be expected to contribute toward the cost of 
46.15 	education, based on the family's financial circumstances;
46.16 	(3) the actual living and miscellaneous expenses of a student, including room, board, 
46.17 	transportation, and the cost of textbooks; and
46.18 	(4) equitable tuition maximums for public and nonprofit institutions that reflect both 
46.19 	tuition charged and the subsidy provided to all students at public institutions received through 
46.20 	direct appropriations.
46.21 	(b) The commissioner must submit the report to the higher education committees of the 
46.22 	legislature by October 15, 2017.

46.23 	ARTICLE 4
46.24 	OFFICE OF HIGHER EDUCATION AGENCY POLICY

46.25 	Section 1. Minnesota Statutes 2016, section 135A.15, subdivision 1a, is amended to read:
46.26 		Subd. 1a.Sexual assault definition. For the purposes of this section, "sexual assault" 
46.27 	means forcible sex offenses rape, sex offenses - fondling, or sex offenses - statutory rape
46.28 	as defined in Code of Federal Regulations, title 34, part 668, subpart D, appendix A, as 
46.29 	amended.

47.1 	Sec. 2. Minnesota Statutes 2016, section 136A.103, is amended to read:
47.2 	136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.
47.3 	(a) A postsecondary institution is eligible for state student aid under chapter 136A and 
47.4 	sections 197.791 and 299A.45, if the institution is located in this state and:
47.5 	(1) is operated by this state or the Board of Regents of the University of Minnesota; or
47.6 	(2) is operated privately and, as determined by the office, meets the requirements of 
47.7 	paragraph (b).
47.8 	(b) A private institution must:
47.9 	(1) maintain academic standards substantially equivalent to those of comparable 
47.10 	institutions operated in this state;
47.11 	(2) be licensed or registered as a postsecondary institution by the office; and
47.12 	(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of 
47.13 	the Higher Education Act of 1965, Public Law 89-329, as amended; or
47.14 	(ii) if an institution was participating in state student aid programs as of June 30, 2010, 
47.15 	and the institution did not participate in the federal Pell Grant program by June 30, 2010, 
47.16 	the institution must require every student who enrolls to sign a disclosure form, provided 
47.17 	by the office, stating that the institution is not participating in the federal Pell Grant program.
47.18 	(c) An institution that offers only graduate-level degrees or graduate-level nondegree 
47.19 	programs, or that offers only degrees or programs that do not meet the required minimum 
47.20 	program length to participate in the federal Pell Grant program, is an eligible institution if 
47.21 	the institution is licensed or registered as a postsecondary institution by the office.
47.22 	(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes 
47.23 	ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell 
47.24 	Grant program within four calendar years of the first ownership change to continue eligibility.
47.25 	(e) An institution that loses its eligibility for the federal Pell Grant program is not an 
47.26 	eligible institution.
47.27 	(f) An institution must maintain adequate administrative and financial standards and 
47.28 	compliance with all state statutes, rules, and administrative policies related to state financial 
47.29 	aid programs.

48.1 	Sec. 3. Minnesota Statutes 2016, section 136A.1795, subdivision 4, is amended to read:
48.2 		Subd. 4.Loan forgiveness. (a) The commissioner may select a maximum of five 
48.3 	applicants each year for participation in the loan forgiveness program, within the limits of 
48.4 	available funding. Applicants are responsible for securing their own qualified educational 
48.5 	loans.
48.6 	(b) The commissioner must select participants based on their suitability for practice 
48.7 	serving the designated rural area, as indicated by experience or training. The commissioner 
48.8 	must give preference to applicants closest to completing their training.
48.9 	(c) The commissioner must make annual disbursements directly to the participant of 
48.10 	$15,000 or the balance of the participant's qualifying educational loans, whichever is less, 
48.11 	for each year that a participant meets the service obligation required under subdivision 3, 
48.12 	paragraph (b), up to a maximum of five years.
48.13 	(d) Before receiving loan repayment disbursements and as requested, the participant 
48.14 	must complete and return to the commissioner an affidavit a confirmation of practice form 
48.15 	provided by the commissioner verifying that the participant is practicing as required under 
48.16 	subdivision 2, paragraph (a). The participant must provide the commissioner with verification 
48.17 	that the full amount of loan repayment disbursement received by the participant has been 
48.18 	applied toward the designated loans. After each disbursement, verification must be received 
48.19 	by the commissioner and approved before the next loan repayment disbursement is made.
48.20 	(e) Participants who move their practice remain eligible for loan repayment as long as 
48.21 	they practice as required under subdivision 2, paragraph (a).

48.22 	Sec. 4. Minnesota Statutes 2016, section 136A.62, is amended by adding a subdivision to 
48.23 	read:
48.24 		Subd. 8.Entity. "Entity" means a specific school or campus location.

48.25 	Sec. 5. Minnesota Statutes 2016, section 136A.646, is amended to read:
48.26 	136A.646 ADDITIONAL SECURITY.
48.27 	(a) In the eventNew schools that have been granted conditional approval for degrees or 
48.28 	names to allow them the opportunity to apply for and receive accreditation under section 
48.29 	136A.65, subdivision 7, or any registered institution that is notified by the United States 
48.30 	Department of Education that it has fallen below minimum financial standards and that its 
48.31 	continued participation in Title IV will be conditioned upon its satisfying either the Zone 
48.32 	Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter 
49.1 	of Credit Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), 
49.2 	the institution shall provide a surety bond conditioned upon the faithful performance of all 
49.3 	contracts and agreements with students in a sum equal to the "letter of credit" required by 
49.4 	the United States Department of Education in the Letter of Credit Alternative, but in no 
49.5 	event shall such bond be less than $10,000 nor more than $250,000.
49.6 	(b) In lieu of a bond, the applicant may deposit with the commissioner of management 
49.7 	and budget:
49.8 	(1) a sum equal to the amount of the required surety bond in cash; or
49.9 	(2) securities, as may be legally purchased by savings banks or for trust funds, in an 
49.10 	aggregate market value equal to the amount of the required surety bond.; or
49.11 	(3) an irrevocable letter of credit issued by a financial institution to the amount of the 
49.12 	required surety bond.
49.13 	(c) The surety of any bond may cancel it upon giving 60 days' notice in writing to the 
49.14 	office and shall be relieved of liability for any breach of condition occurring after the 
49.15 	effective date of cancellation.
49.16 	(d) In the event of a school closure, the additional security must first be used to destroy 
49.17 	any private educational data under section 13.32 left at a physical campus in Minnesota 
49.18 	after all other governmental agencies have recovered or retrieved records under their record 
49.19 	retention policies. Any remaining funds must then be used to reimburse tuition and fee costs 
49.20 	to students that were enrolled at the time of the closure or had withdrawn in the previous 
49.21 	120 calendar days but did not graduate. Priority for refunds will be given to students in the 
49.22 	following order:
49.23 	(1) cash payments made by the student or on behalf of a student;
49.24 	(2) private student loans; and
49.25 	(3) Veteran Administration education benefits that are not restored by the Veteran 
49.26 	Administration. If there are additional security funds remaining, the additional security 
49.27 	funds may be used to cover any administrative costs incurred by the office related to the 
49.28 	closure of the school.

49.29 	Sec. 6. Minnesota Statutes 2016, section 136A.65, subdivision 1a, is amended to read:
49.30 		Subd. 1a.Accreditation; requirement. (a) A school must not be registered or authorized 
49.31 	to offer any degree at any level unless the school is accredited has institutional accreditation
49.32 	by an agency recognized by the United States Department of Education for purposes of 
50.1 	eligibility to participate in Title IV federal financial aid programs. Any registered school 
50.2 	undergoing institutional accreditation shall inform the office of site visits by the accrediting 
50.3 	agency and provide office staff the opportunity to attend the visits, including excluding any 
50.4 	exit interviews. The institution must provide the office with a copy of the final report upon 
50.5 	receipt request of the office.
50.6 	(b) A school must not be authorized to offer any degree unless the program has 
50.7 	programmatic accreditation or the school has institutional accreditation by an agency 
50.8 	recognized by the United States Department of Education for purposes of eligibility to 
50.9 	participate in Title IV federal financial aid programs. Any program offered by a registered 
50.10 	school that does not have institutional accreditation and is undergoing programmatic 
50.11 	accreditation shall inform the office of site visits by the accrediting agency and provide 
50.12 	office staff the opportunity to attend the visits, excluding any exit interviews. The school 
50.13 	must provide the office with a copy of the final report by the accreditor upon request of the 
50.14 	office.

50.15 	Sec. 7. Minnesota Statutes 2016, section 136A.65, subdivision 4, is amended to read:
50.16 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have its 
50.17 	degree or degrees and name approved must substantially meet the following criteria:
50.18 	(1) the school has an organizational framework with administrative and teaching personnel 
50.19 	to provide the educational programs offered;
50.20 	(2) the school has financial resources sufficient to meet the school's financial obligations, 
50.21 	including refunding tuition and other charges consistent with its stated policy if the institution 
50.22 	is dissolved, or if claims for refunds are made, to provide service to the students as promised, 
50.23 	and to provide educational programs leading to degrees as offered;
50.24 	(3) the school operates in conformity with generally accepted budgeting and accounting 
50.25 	principles according to the type of school;
50.26 	(4) the school provides an educational program leading to the degree it offers;
50.27 	(5) the school provides appropriate and accessible library, laboratory, and other physical 
50.28 	facilities to support the educational program offered;
50.29 	(6) the school has a policy on freedom or limitation of expression and inquiry for faculty 
50.30 	and students which is published or available on request;
50.31 	(7) the school uses only publications and advertisements which are truthful and do not 
50.32 	give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school, 
51.1 	its personnel, programs, services, or occupational opportunities for its graduates for promotion 
51.2 	and student recruitment;
51.3 	(8) the school's compensated recruiting agents who are operating in Minnesota identify 
51.4 	themselves as agents of the school when talking to or corresponding with students and 
51.5 	prospective students;
51.6 	(9) the school provides information to students and prospective students concerning:
51.7 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
51.8 	suspension, and dismissal;
51.9 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
51.10 	and experience and for courses offered by the school;
51.11 	(iii) current schedules of fees, charges for tuition, required supplies, student activities, 
51.12 	housing, and all other standard charges;
51.13 	(iv) policies regarding refunds and adjustments for withdrawal or modification of 
51.14 	enrollment status; and
51.15 	(v) procedures and standards used for selection of recipients and the terms of payment 
51.16 	and repayment for any financial aid program; and
51.17 	(10) the school must not withhold a student's official transcript because the student is 
51.18 	in arrears or in default on any loan issued by the school to the student if the loan qualifies 
51.19 	as an institutional loan under United States Code, title 11, section 523(a)(8)(b).
51.20 	(b) An application for degree approval must also include:
51.21 	(i) title of degree and formal recognition awarded;
51.22 	(ii) location where such degree will be offered;
51.23 	(iii) proposed implementation date of the degree;
51.24 	(iv) admissions requirements for the degree;
51.25 	(v) length of the degree;
51.26 	(vi) projected enrollment for a period of five years;
51.27 	(vii) the curriculum required for the degree, including course syllabi or outlines;
51.28 	(viii) statement of academic and administrative mechanisms planned for monitoring the 
51.29 	quality of the proposed degree;
51.30 	(ix) statement of satisfaction of professional licensure criteria, if applicable;
52.1 	(x) documentation of the availability of clinical, internship, externship, or practicum 
52.2 	sites, if applicable; and
52.3 	(xi) statement of how the degree fulfills the institution's mission and goals, complements 
52.4 	existing degrees, and contributes to the school's viability.

52.5 	Sec. 8. Minnesota Statutes 2016, section 136A.65, subdivision 7, is amended to read:
52.6 		Subd. 7.Conditional approval. (a) The office may grant a school a one-year conditional 
52.7 	approval for a degree or use of a term in its name for a period of less than one year if doing 
52.8 	so would be in the best interests of currently enrolled students or prospective students.
52.9 	Conditional approval of a degree or use of a term under this paragraph must not exceed a 
52.10 	period of three years.
52.11 	(b) The office may grant new schools may be granted and programs a one-year conditional 
52.12 	approval for degrees or names annually for a period not to exceed five yearsuse of a term 
52.13 	in its name to allow them the school the opportunity to apply for and receive accreditation 
52.14 	as required in subdivision 1a. Conditional approval of a school or program under this 
52.15 	paragraph must not exceed a period of five years. A new school or program granted 
52.16 	conditional approval may be allowed to continue as a registered institution in order to 
52.17 	complete an accreditation process upon terms and conditions the office determines.
52.18 	(c) The office may grant a registered school a one-year conditional approval for degrees 
52.19 	or use of a term in its name to allow the school the opportunity to apply for and receive 
52.20 	accreditation as required in subdivision 1a if the school's accrediting agency is no longer 
52.21 	recognized by the United States Department of Education for purposes of eligibility to 
52.22 	participate in Title IV federal financial aid programs. The office must not grant conditional 
52.23 	approvals under this paragraph to a school for a period of more than five years.
52.24 	(d) The office may grant a registered school a one-year conditional approval for degrees 
52.25 	or use of a term in its name to allow the school to change to a different accrediting agency 
52.26 	recognized by the United States Department of Education for purposes of eligibility to 
52.27 	participate in Title IV federal financial aid programs. The office must not grant conditional 
52.28 	approvals under this paragraph to a school for a period of more than five years.

52.29 	Sec. 9. Minnesota Statutes 2016, section 136A.653, is amended to read:
52.30 	136A.653 EXEMPTIONS.
52.31 		Subdivision 1.Application. A school that seeks an exemption from the provisions of 
52.32 	sections 136A.61 to 136A.71 must apply to the office to establish that the school meets the 
53.1 	requirements of an exemption. An exemption expires two years from the date of approval 
53.2 	or until a school adds a new program or makes a modification equal to or greater than 25 
53.3 	percent to an existing educational program. If a school is reapplying for an exemption, the 
53.4 	application must be submitted to the office 90 days before the current exemption expires.
53.5 		Subdivision 1. Subd. 1a.Exemption Private career schools. A school that is subject 
53.6 	to licensing by the office under sections 136A.82 to 136A.834 is exempt from the provisions 
53.7 	of sections 136A.61 to 136A.71. The determination of the office as to whether a particular 
53.8 	school is subject to regulation under sections 136A.82 to 136A.834 is final for the purposes 
53.9 	of this exemption.
53.10 		Subd. 2.Educational program; nonprofit organizations. Educational programs which 
53.11 	are sponsored by a bona fide and nonprofit trade, labor, business, professional or fraternal 
53.12 	organization, which programs are conducted solely for that organization's membership or 
53.13 	for the members of the particular industries or professions served by that organization, and 
53.14 	which are not available to the public on a fee basis, are exempted from the provisions of 
53.15 	sections 136A.61 to 136A.71.
53.16 		Subd. 3.Educational program; business firms. Educational programs which are 
53.17 	sponsored by a business firm for the training of its employees or the employees of other 
53.18 	business firms with which it has contracted to provide educational services at no cost to the 
53.19 	employees are exempted from the provisions of sections 136A.61 to 136A.71.
53.20 		Subd. 3a.Tuition-free educational courses. A school, including a school using an 
53.21 	online platform service, offering training, courses, or programs is exempt from sections 
53.22 	136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota. A 
53.23 	course will be considered tuition-free if the school charges no tuition and the required fees 
53.24 	and other required charges paid by the student for the course tuition, fees, and any other 
53.25 	charges for a student to participate do not exceed two percent of the most recent average 
53.26 	undergraduate tuition and required fees as of January 1 of the current year charged for 
53.27 	full-time students at all degree-granting institutions as published annually by the United 
53.28 	States Department of Education as of January 1 of each year. To qualify for an exemption, 
53.29 	a school or online platform service must prominently display a notice comparable to the 
53.30 	following: "IMPORTANT: Each educational institution makes its own decision regarding 
53.31 	whether to accept completed coursework for credit. Check with your university or college."
53.32 		Subd. 4.Voluntary submission. Any school or program exempted from the provisions 
53.33 	of sections 136A.61 to 136A.71 by the provisions of this section may voluntarily submit to 
53.34 	the provisions of those sections.

54.1 	Sec. 10. Minnesota Statutes 2016, section 136A.657, is amended by adding a subdivision 
54.2 	to read:
54.3 		Subd. 5.Application. A school that seeks an exemption from the provisions of sections 
54.4 	136A.61 to 136A.71 must apply to the office to establish that the school meets the 
54.5 	requirements of an exemption. An exemption expires two years from the date of approval 
54.6 	or when a school adds a new program or makes a modification equal to or greater than 25 
54.7 	percent to an existing educational program. If a school is reapplying for an exemption, the 
54.8 	application must be submitted to the office 90 days before the current exemption expires.

54.9 	Sec. 11. Minnesota Statutes 2016, section 136A.67, is amended to read:
54.10 	136A.67 REGISTRATION REPRESENTATIONS.
54.11 	No school and none of its officials or employees shall advertise or represent in any 
54.12 	manner that such school is approved or accredited by the office or the state of Minnesota, 
54.13 	except a school which is duly registered with the office, or any of its officials or employees, 
54.14 	may represent in advertising and shall disclose in catalogues, applications, and enrollment 
54.15 	materials that the school is registered with the office by prominently displaying the following 
54.16 	statement: "(Name of school) is registered with the office Minnesota Office of Higher 
54.17 	Education pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of 
54.18 	the institution. Credits earned at the institution may not transfer to all other institutions." In 
54.19 	addition, all registered schools shall publish in the school catalog or student handbook the 
54.20 	name, street address, telephone number, and Web site address of the office.

54.21 	Sec. 12. [136A.672] STUDENT COMPLAINTS.
54.22 		Subdivision 1.Authority. The office has the authority to review and take appropriate 
54.23 	action on student complaints from schools covered under the provisions of sections 136A.61 
54.24 	to 136A.71.
54.25 		Subd. 2.Complaint. A complaint must be in writing, be signed by a student, and state 
54.26 	how the school's policies and procedures or sections 136A.61 to 136A.71 were violated. 
54.27 	Student complaints shall be limited to complaints that occurred within six years from the 
54.28 	date the concern should have been discovered with reasonable effort and after the student 
54.29 	has utilized the school's internal complaint process. Students do not have to utilize a school's 
54.30 	internal complaint process before the office has authority when the student is alleging fraud 
54.31 	or misrepresentation. The office shall not investigate grade disputes, student conduct 
54.32 	proceedings, disability accommodation requests, and discrimination claims, including Title 
54.33 	IX complaints.
55.1 		Subd. 3.Investigation. The office shall initiate an investigation upon receipt of a 
55.2 	complaint within the authority of subdivision 2. A school involved in an investigation shall 
55.3 	be informed of the alleged violations and the processes of the investigation. A school 
55.4 	involved in an investigation shall respond to the alleged violations and provide requested 
55.5 	documentation to the office. Upon completing an investigation, the office shall inform the 
55.6 	school and the student of the investigation outcome.
55.7 		Subd. 4.Penalties. If violations are found, the office may require remedial action by 
55.8 	the school or assign a penalty under section 136A.705. Remedial action may include student 
55.9 	notification of violations, adjustments to the school's policies and procedures, and tuition 
55.10 	or fee refunds to impacted students.

55.11 	Sec. 13. Minnesota Statutes 2016, section 136A.68, is amended to read:
55.12 	136A.68 RECORDS.
55.13 	A registered school shall maintain a permanent record for each student for 50 years from 
55.14 	the last date of the student's attendance. A registered school offering distance instruction to 
55.15 	a student located in Minnesota shall maintain a permanent record for each Minnesota student 
55.16 	for 50 years from the last date of the student's attendance. Records include a student's 
55.17 	academic transcript, documents, and files containing student data about academic credits 
55.18 	earned, courses completed, grades awarded, degrees awarded, and periods of attendance. 
55.19 	To preserve permanent records, a school shall submit a plan that meets the following 
55.20 	requirements:
55.21 	(1) at least one copy of the records must be held in a secure, fireproof depository or 
55.22 	duplicate records must be maintained off site in a secure location and in a manner approved 
55.23 	by the office;
55.24 	(2) an appropriate official must be designated to provide a student with copies of records 
55.25 	or a transcript upon request;
55.26 	(3) an alternative method approved by the office of complying with clauses (1) and (2) 
55.27 	must be established if the school ceases to exist; and
55.28 	(4) if the school has no binding agreement approved by the office for preserving student 
55.29 	records, a continuous surety bond or an irrevocable letter of credit issued by a financial 
55.30 	institution must be filed with the office in an amount not to exceed $20,000. The bond or 
55.31 	irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure, 
55.32 	the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover, 
55.33 	maintain, digitize, and destroy academic records.

56.1 	Sec. 14. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision 
56.2 	to read:
56.3 		Subd. 13.Compliance audit. "Compliance audit" means an audit of a school's compliance 
56.4 	with federal requirements related to its participation in federal Title IV student aid programs 
56.5 	or other federal grant programs performed under either Uniform Grant Guidance, including 
56.6 	predecessor Federal Circular A-133, or the United States Department of Education's audit 
56.7 	guide, Audits of Federal Student Financial Assistance Programs at Participating Institutions 
56.8 	and Institution Servicers.

56.9 	Sec. 15. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision 
56.10 	to read:
56.11 		Subd. 14.Entity. "Entity" means a specific school or campus location.

56.12 	Sec. 16. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision 
56.13 	to read:
56.14 		Subd. 15.Higher-level entity. "Higher-level entity" means a corporate parent or ultimate 
56.15 	parent company or, in the case of a public school, the larger public system of which an 
56.16 	entity is a part.

56.17 	Sec. 17. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision 
56.18 	to read:
56.19 		Subd. 16.Audited financial statements. "Audited financial statements" means the 
56.20 	financial statements of an entity or higher-level entity that have been examined by a certified 
56.21 	public accountant or an equivalent government agency for public entities that include (1) 
56.22 	an auditor's report, a statement of financial position, an income statement, a statement of 
56.23 	cash flows, and notes to the financial statements or (2) the required equivalents for public 
56.24 	entities as determined by the Financial Accounting Standards Board, the Governmental 
56.25 	Accounting Standards Board, or the Securities and Exchange Commission.

56.26 	Sec. 18. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision 
56.27 	to read:
56.28 		Subd. 17.Review-level engagement. "Review-level engagement" means a service 
56.29 	performed by a certified public accountant that provides limited assurance that there are no 
56.30 	material modifications that need to be made to an entity's financial statements in order for 
57.1 	them to conform to generally accepted accounting principles. Review-level engagement 
57.2 	provides fewer assurances than those reported under audited financial statements.

57.3 	Sec. 19. Minnesota Statutes 2016, section 136A.822, subdivision 4, is amended to read:
57.4 		Subd. 4.Application. Application for a license shall be on forms prepared and furnished 
57.5 	by the office, and shall include the following and other information as the office may require:
57.6 	(1) the title or name of the private career school, ownership and controlling officers, 
57.7 	members, managing employees, and director;
57.8 	(2) the specific programs which will be offered and the specific purposes of the 
57.9 	instruction;
57.10 	(3) the place or places where the instruction will be given;
57.11 	(4) a listing of the equipment available for instruction in each program;
57.12 	(5) the maximum enrollment to be accommodated with equipment available in each 
57.13 	specified program;
57.14 	(6) the qualifications of instructors and supervisors in each specified program;
57.15 	(7) financial documents related to the entity's and higher-level entity's most recently 
57.16 	completed fiscal year:
57.17 	(i) annual gross revenues from all sources;
57.18 	(ii) financial statements subjected to a review level engagement or, if requested by the 
57.19 	office, audited financial statements;
57.20 	(iii) a school's most recent compliance audit, if applicable; and
57.21 	(iv) a current balance sheet, income statement, and adequate supporting documentation, 
57.22 	prepared and certified by an independent public accountant or CPA;
57.23 	(8) copies of all media advertising and promotional literature and brochures or electronic 
57.24 	display currently used or reasonably expected to be used by the private career school;
57.25 	(9) copies of all Minnesota enrollment agreement forms and contract forms and all 
57.26 	enrollment agreement forms and contract forms used in Minnesota; and
57.27 	(10) gross income earned in the preceding year from student tuition, fees, and other 
57.28 	required institutional charges, unless the private career school files with the office a surety 
57.29 	bond equal to at least $250,000 as described in subdivision 6.

58.1 	Sec. 20. Minnesota Statutes 2016, section 136A.822, subdivision 6, is amended to read:
58.2 		Subd. 6.Bond. (a) No license shall be issued to any private career school which 
58.3 	maintains, conducts, solicits for, or advertises within the state of Minnesota any program, 
58.4 	unless the applicant files with the office a continuous corporate surety bond written by a 
58.5 	company authorized to do business in Minnesota conditioned upon the faithful performance 
58.6 	of all contracts and agreements with students made by the applicant.
58.7 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's gross
58.8 	net income from student tuition, fees, and other required institutional charges collected, but 
58.9 	in no event less than $10,000 nor greater than $250,000, except that a private career school 
58.10 	may deposit a greater amount at its own discretion. A private career school in each annual 
58.11 	application for licensure must compute the amount of the surety bond and verify that the 
58.12 	amount of the surety bond complies with this subdivision, unless the private career school 
58.13 	maintains a surety bond equal to at least $250,000. A private career school that operates at 
58.14 	two or more locations may combine gross net income from student tuition, fees, and other 
58.15 	required institutional charges collected for all locations for the purpose of determining the 
58.16 	annual surety bond requirement. The gross net tuition and fees used to determine the amount 
58.17 	of the surety bond required for a private career school having a license for the sole purpose 
58.18 	of recruiting students in Minnesota shall be only that paid to the private career school by 
58.19 	the students recruited from Minnesota.
58.20 	(2) A person required to obtain a private career school license due to the use of 
58.21 	"academy," "institute," "college," or "university" in its name and which is also licensed by 
58.22 	another state agency or board, except not including those schools licensed exclusively in 
58.23 	order to participate in state grants or SELF loan financial aid programs, shall be required 
58.24 	to provide a school bond of $10,000.
58.25 	(c) The bond shall run to the state of Minnesota and to any person who may have a cause 
58.26 	of action against the applicant arising at any time after the bond is filed and before it is 
58.27 	canceled for breach of any contract or agreement made by the applicant with any student. 
58.28 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
58.29 	exceed the principal sum deposited by the private career school under paragraph (b). The 
58.30 	surety of any bond may cancel it upon giving 60 days' notice in writing to the office and 
58.31 	shall be relieved of liability for any breach of condition occurring after the effective date 
58.32 	of cancellation.
58.33 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
58.34 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
59.1 	letter of credit issued by a financial institution equal to the amount of the required surety 
59.2 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
59.3 	aggregate market value equal to the amount of the required surety bond.
59.4 	(e) Failure of a private career school to post and maintain the required surety bond or 
59.5 	deposit under paragraph (d) shall may result in denial, suspension, or revocation of the 
59.6 	school's license.

59.7 	Sec. 21. Minnesota Statutes 2016, section 136A.822, subdivision 12, is amended to read:
59.8 		Subd. 12.Permanent records. A private career school licensed under sections 136A.82 
59.9 	to 136A.834 and located in Minnesota shall maintain a permanent record for each student 
59.10 	for 50 years from the last date of the student's attendance. A private career school licensed 
59.11 	under this chapter and offering distance instruction to a student located in Minnesota shall 
59.12 	maintain a permanent record for each Minnesota student for 50 years from the last date of 
59.13 	the student's attendance. Records include school transcripts, documents, and files containing 
59.14 	student data about academic credits earned, courses completed, grades awarded, degrees 
59.15 	awarded, and periods of attendance. To preserve permanent records, a private career school 
59.16 	shall submit a plan that meets the following requirements:
59.17 	(1) at least one copy of the records must be held in a secure, fireproof depository;
59.18 	(2) an appropriate official must be designated to provide a student with copies of records 
59.19 	or a transcript upon request;
59.20 	(3) an alternative method, approved by the office, of complying with clauses (1) and (2) 
59.21 	must be established if the private career school ceases to exist; and
59.22 	(4) a continuous surety bond or irrevocable letter of credit issued by a financial institution 
59.23 	must be filed with the office in an amount not to exceed $20,000 if the private career school 
59.24 	has no binding agreement approved by the office, for preserving student records. The bond 
59.25 	or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school 
59.26 	closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve, 
59.27 	recover, maintain, digitize, and destroy academic records.

59.28 	Sec. 22. Minnesota Statutes 2016, section 136A.822, subdivision 13, is amended to read:
59.29 		Subd. 13.Private career schools licensed by another state agency or board. A private 
59.30 	career school required to obtain a private career school license due to the use of "academy," 
59.31 	"institute," "college," or "university" in its name or licensed for the purpose of participating 
59.32 	in state financial aid under chapter 136A, and which is also licensed by another state agency 
60.1 	or board shall be required to satisfy only the requirements of subdivisions 4, clauses (1), 
60.2 	(2), (3), (5), (7), (8), and (10); 5; 6, paragraph (b), clause (2); 8, clauses (1), (4), (7), (8),
60.3 	and (9); 9; 10, clause (13); and 12. If a school is licensed to participate in state financial aid 
60.4 	under this chapter, the school must follow the refund policy in section 136A.827, even if 
60.5 	that section conflicts with the refund policy of the licensing agency or board. A distance 
60.6 	education private career school located in another state, or a school licensed to recruit 
60.7 	Minnesota residents for attendance at a school outside of this state, or a school licensed by 
60.8 	another state agency as its primary licensing body, may continue to use the school's name 
60.9 	as permitted by its home state or its primary licensing body.

60.10 	Sec. 23. Minnesota Statutes 2016, section 136A.826, subdivision 2, is amended to read:
60.11 		Subd. 2.Contract information. A contract or enrollment agreement used by a private 
60.12 	career school must include at least the following:
60.13 	(1) the name and address of the private career school, clearly stated;
60.14 	(2) a clear and conspicuous disclosure that the agreement is a legally binding instrument 
60.15 	upon written acceptance of the student by the private career school unless canceled under 
60.16 	section 136A.827;
60.17 	(3) the private career school's cancellation and refund policy that shall be clearly and 
60.18 	conspicuously entitled "Buyer's Right to Cancel";
60.19 	(4) a clear statement of total cost of the program including tuition and all other charges;
60.20 	(5) the name and description of the program, including the number of hours or credits 
60.21 	of classroom instruction, or distance instruction, that shall be included; and
60.22 	(6) a clear and conspicuous explanation of the form and means of notice the student 
60.23 	should use in the event the student elects to cancel the contract or sale, the effective date of 
60.24 	cancellation, and the name and address, e-mail address, or phone number of the seller to 
60.25 	which the notice should be sent or delivered.
60.26 	The contract or enrollment agreement must not include a wage assignment provision or a 
60.27 	confession of judgment clause.

60.28 	Sec. 24. Minnesota Statutes 2016, section 136A.827, subdivision 2, is amended to read:
60.29 		Subd. 2.Private career schools using written contracts. (a) Notwithstanding anything 
60.30 	to the contrary, a private career school that uses a written contract or enrollment agreement 
60.31 	shall refund all tuition, fees and other charges paid by a student, if the student gives written
61.1 	notice of cancellation within five business days after the day on which the contract was 
61.2 	executed regardless of whether the program has started.
61.3 	(b) When a student has been accepted by the private career school and has entered into 
61.4 	a contractual agreement with the private career school and gives written notice of cancellation 
61.5 	following the fifth business day after the date of execution of contract, but before the start 
61.6 	of the program in the case of resident private career schools, or before the first lesson has 
61.7 	been serviced by the private career school in the case of distance education private career 
61.8 	schools, all tuition, fees and other charges, except 15 percent of the total cost of the program 
61.9 	but not to exceed $50, shall be refunded to the student.

61.10 	Sec. 25. Minnesota Statutes 2016, section 136A.827, subdivision 3, is amended to read:
61.11 		Subd. 3.Notice; amount. (a) A private career school shall refund all tuition, fees and 
61.12 	other charges paid by a student if the student gives written notice of cancellation within five 
61.13 	business days after the day on which the student is accepted by the private career school 
61.14 	regardless of whether the program has started.
61.15 	(b) When a student has been accepted by the private career school and gives written
61.16 	notice of cancellation following the fifth business day after the day of acceptance by the 
61.17 	private career school, but before the start of the program, in the case of resident private 
61.18 	career schools, or before the first lesson has been serviced by the private career school, in 
61.19 	the case of distance education private career schools, all tuition, fees and other charges, 
61.20 	except 15 percent of the total cost of the program but not to exceed $50, shall be refunded 
61.21 	to the student.

61.22 	Sec. 26. Minnesota Statutes 2016, section 136A.828, subdivision 3, is amended to read:
61.23 		Subd. 3.False statements. (a) A private career school, agent, or solicitor shall not make, 
61.24 	or cause to be made, any statement or representation, oral, written or visual, in connection 
61.25 	with the offering or publicizing of a program, if the private career school, agent, or solicitor 
61.26 	knows or reasonably should have known the statement or representation to be false, 
61.27 	fraudulent, deceptive, substantially inaccurate, or misleading.
61.28 	(b) Other than opinion-based statements or puffery, a school shall only make claims that 
61.29 	are evidence-based, can be validated, and are based on current conditions and not on 
61.30 	conditions that are no longer relevant.
61.31 	(c) A school shall not guarantee or imply the guarantee of employment.
62.1 	(d) A school shall not guarantee or advertise any certain wage or imply earnings greater 
62.2 	than the prevailing wage for entry-level wages in the field of study for the geographic area 
62.3 	unless advertised wages are based on verifiable wage information from graduates.
62.4 	(e) If placement statistics are used in advertising or other promotional materials, the 
62.5 	school must be able to substantiate the statistics with school records. These records must 
62.6 	be made available to the office upon request. A school is prohibited from reporting the 
62.7 	following in placement statistics:
62.8 	(1) a student required to receive a job offer or start a job to be classified as a graduate;
62.9 	(2) a graduate if the graduate held a position before enrolling in the program, unless 
62.10 	graduating enabled the graduate to maintain the position or the graduate received a promotion 
62.11 	or raise upon graduation;
62.12 	(3) a graduate who works less than 20 hours per week; and
62.13 	(4) a graduate who is not expected to maintain the position for at least 180 days.
62.14 	(f) A school shall not use endorsements, commendations, or recommendations by a 
62.15 	student in favor of a school except with the consent of the student and without any offer of 
62.16 	financial or other material compensation. Endorsements may be used only when they portray 
62.17 	current conditions.
62.18 	(g) A school may advertise that the school or its programs have been accredited by an 
62.19 	accrediting agency recognized by the United States Department of Education or the Council 
62.20 	for Higher Education Accreditation, but shall not advertise any other accreditation unless 
62.21 	approved by the office. The office may approve an institution's advertising of accreditation 
62.22 	that is not recognized by the United States Department of Education or the Council for 
62.23 	Higher Education if that accreditation is industry specific. Clear distinction must be made 
62.24 	when the school is in candidacy or application status versus full accreditation.
62.25 	(h) A school may advertise that financial aid is available, including a listing of the 
62.26 	financial aid programs in which the school participates, but federal or state financial aid 
62.27 	shall not be used as a primary incentive in advertisement, promotion, or recruitment.
62.28 	(i) A school may advertise placement or career assistance, if offered, but shall not use 
62.29 	the words "wanted," "help wanted," or "trainee," either in the headline or the body of the 
62.30 	advertisement.
62.31 	(j) A school shall not be advertised under any "help wanted," "employment," or similar 
62.32 	classification.
63.1 	(k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar 
63.2 	test.
63.3 	(l) The commissioner, at any time, may require a retraction of a false, misleading, or 
63.4 	deceptive claim. To the extent reasonable, the retraction must be published in the same 
63.5 	manner as the original claim.

63.6 	Sec. 27. [136A.8295] STUDENT COMPLAINTS.
63.7 		Subdivision 1.Authority. The office has the authority to review and take appropriate 
63.8 	action on student complaints from schools covered under the provisions of sections 136A.822 
63.9 	to 136A.834.
63.10 		Subd. 2.Complaint. A complaint must be in writing, be signed by a student, and state 
63.11 	how the school's policies and procedures or sections 136A.822 to 136A.834 were violated. 
63.12 	Student complaints shall be limited to complaints that occurred within six years from the 
63.13 	date the concern should have been discovered with reasonable effort and after the student 
63.14 	has utilized the school's internal complaint process. Students do not have to utilize a school's 
63.15 	internal complaint process before the office has authority when the student is alleging fraud 
63.16 	or misrepresentation. The office shall not investigate grade disputes, student conduct 
63.17 	proceedings, disability accommodation requests, and discrimination claims, including Title 
63.18 	IX complaints.
63.19 		Subd. 3.Investigation. The office shall initiate an investigation upon receipt of a 
63.20 	complaint within the authority of subdivision 2. A school involved in an investigation shall 
63.21 	be informed of the alleged violations and the processes of the investigation. A school 
63.22 	involved in an investigation shall respond to the alleged violations and provide requested 
63.23 	documentation to the office. Upon completion of an investigation, the office shall inform 
63.24 	the school and the student of the investigation outcome.
63.25 		Subd. 4.Penalties. If violations are found, the office may require remedial action by 
63.26 	the school or assign a penalty under section 136A.832. Remedial action may include student 
63.27 	notification of violations, adjustments to the school's policies and procedures, and tuition 
63.28 	or fee refunds to impacted students.

63.29 	Sec. 28. Minnesota Statutes 2016, section 136A.83, is amended to read:
63.30 	136A.83 INSPECTION.
63.31 	(a) The office or a delegate may inspect the instructional books and records, classrooms, 
63.32 	dormitories, tools, equipment and classes of any private career school or applicant for license 
64.1 	at any reasonable time. The office may require the submission of a certified public audit, 
64.2 	or if there is no such audit available audited financial statements. The office or a delegate 
64.3 	may inspect the financial books and records of the private career school. In no event shall 
64.4 	such financial information be used by the office to regulate or set the tuition or fees charged 
64.5 	by the private career school.
64.6 	(b) Data obtained from an inspection of the financial records of a private career school 
64.7 	or submitted to the office as part of a license application or renewal are nonpublic data as 
64.8 	defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed 
64.9 	to other members of the office, to law enforcement officials, or in connection with a legal 
64.10 	or administrative proceeding commenced to enforce a requirement of law.

64.11 	Sec. 29. Minnesota Statutes 2016, section 136A.833, is amended to read:
64.12 	136A.833 EXEMPTIONS.
64.13 		Subdivision 1.Application for exemptions. A school that seeks an exemption from the 
64.14 	provisions of sections 136A.822 to 136A.834 must apply to the office to establish that the 
64.15 	school meets the requirements of an exemption. An exemption expires two years from the 
64.16 	date of approval or when a school adds a new program or makes a modification equal to or 
64.17 	greater than 25 percent to an existing educational program. If a school is reapplying for an 
64.18 	exemption, the application must be submitted to the office 90 days before the current 
64.19 	exemption expires.
64.20 		Subd. 2.Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the 
64.21 	following:
64.22 	(1) public postsecondary institutions;
64.23 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
64.24 	(3) private career schools of nursing accredited by the state Board of Nursing or an 
64.25 	equivalent public board of another state or foreign country;
64.26 	(4) private schools complying with the requirements of section 120A.22, subdivision 4;
64.27 	(5) courses taught to students in a valid apprenticeship program taught by or required 
64.28 	by a trade union;
64.29 	(6) private career schools exclusively engaged in training physically or mentally disabled 
64.30 	persons for the state of Minnesota;
65.1 	(7) private career schools licensed by boards authorized under Minnesota law to issue 
65.2 	licenses except private career schools required to obtain a private career school license due 
65.3 	to the use of "academy," "institute," "college," or "university" in their names;
65.4 	(8) private career schools and educational programs, or training programs, contracted 
65.5 	for by persons, firms, corporations, government agencies, or associations, for the training 
65.6 	of their own employees, for which no fee is charged the employee;
65.7 	(9) private career schools engaged exclusively in the teaching of purely avocational, 
65.8 	recreational, or remedial subjects as determined by the office except private career schools 
65.9 	required to obtain a private career school license due to the use of "academy," "institute," 
65.10 	"college," or "university" in their names unless the private career school used "academy" 
65.11 	or "institute" in its name prior to August 1, 2008;
65.12 	(10) classes, courses, or programs conducted by a bona fide trade, professional, or 
65.13 	fraternal organization, solely for that organization's membership;
65.14 	(11) programs in the fine arts provided by organizations exempt from taxation under 
65.15 	section 290.05 and registered with the attorney general under chapter 309. For the purposes 
65.16 	of this clause, "fine arts" means activities resulting in artistic creation or artistic performance 
65.17 	of works of the imagination which are engaged in for the primary purpose of creative 
65.18 	expression rather than commercial sale or employment. In making this determination the 
65.19 	office may seek the advice and recommendation of the Minnesota Board of the Arts;
65.20 	(12) classes, courses, or programs intended to fulfill the continuing education 
65.21 	requirements for licensure or certification in a profession, that have been approved by a 
65.22 	legislatively or judicially established board or agency responsible for regulating the practice 
65.23 	of the profession, and that are offered exclusively to an individual practicing the profession;
65.24 	(13) classes, courses, or programs intended to prepare students to sit for undergraduate, 
65.25 	graduate, postgraduate, or occupational licensing and occupational entrance examinations;
65.26 	(14) classes, courses, or programs providing 16 or fewer clock hours of instruction that 
65.27 	are not part of the curriculum for an occupation or entry level employment except private 
65.28 	career schools required to obtain a private career school license due to the use of "academy," 
65.29 	"institute," "college," or "university" in their names;
65.30 	(15) classes, courses, or programs providing instruction in personal development, 
65.31 	modeling, or acting;
66.1 	(16) training or instructional programs, in which one instructor teaches an individual 
66.2 	student, that are not part of the curriculum for an occupation or are not intended to prepare 
66.3 	a person for entry level employment;
66.4 	(17) private career schools with no physical presence in Minnesota, as determined by 
66.5 	the office, engaged exclusively in offering distance instruction that are located in and 
66.6 	regulated by other states or jurisdictions if the distance education instruction does not include 
66.7 	internships, externships, field placements, or clinical placements for residents of Minnesota; 
66.8 	and
66.9 	(18) private career schools providing exclusively training, instructional programs, or 
66.10 	courses where tuition, fees, and any other charges for a student to participate do not exceed 
66.11 	$100.

66.12 	Sec. 30. Minnesota Statutes 2016, section 136A.834, is amended by adding a subdivision 
66.13 	to read:
66.14 		Subd. 5.Application. A school that seeks an exemption from the provisions of sections 
66.15 	136A.82 to 136A.834 must apply to the office to establish that the school meets the 
66.16 	requirements of an exemption. An exemption expires two years from the date of approval 
66.17 	or when a school adds a new program or makes a modification equal to or greater than 25 
66.18 	percent to an existing educational program. If a school is reapplying for an exemption, the 
66.19 	application must be submitted to the office 90 days before the current exemption expires.

66.20 	Sec. 31. Laws 2015, chapter 69, article 3, section 20, subdivision 10, is amended to read:
66.21 		Subd. 10.Credit load. By the end of the first academic year including summer term, a 
66.22 	grantee must have accumulated at least the lesser of 30 program credits by the end of the 
66.23 	first academic year including summer term or the number of credits that the student's program 
66.24 	is scheduled for during the first academic year. A college must certify that a grantee is 
66.25 	carrying sufficient credits in the second grant year to complete the program at the end of 
66.26 	the second year, including summer school. The commissioner shall set the terms and provide 
66.27 	the form for certification.

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