1.1 	A bill for an act
1.2 	relating to higher education; establishing a program to provide grants to student 
1.3 	teachers; providing an income tax subtraction for certain grants;amending 
1.4 	Minnesota Statutes 2020, section 290.0132, by adding a subdivision; Laws 2021, 
1.5 	First Special Session chapter 2, article 1, section 2, subdivisions 1, 25, 26; proposing 
1.6 	coding for new law in Minnesota Statutes, chapter 136A; repealing Minnesota 
1.7 	Statutes 2021 Supplement, sections 136A.1274; 136A.1275.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. [136A.1272] STUDENT TEACHER GRANTS FOR STUDENT 
1.10 	TEACHERS.
1.11 		Subdivision 1.Establishment. The commissioner of the Office of Higher Education 
1.12 	must establish a program to provide grants to student teachers.
1.13 		Subd. 2.Eligibility. To be eligible for a grant under this section, a student teacher must:
1.14 	(1) be enrolled in a Professional Educator Licensing and Standards Board-approved 
1.15 	teacher preparation program that requires at least 12 weeks of student teaching in order to 
1.16 	be recommended for any Tier 3 teaching license; and
1.17 	(2) be meeting satisfactory academic progress as defined under section 136A.101, 
1.18 	subdivision 10.
1.19 		Subd. 3.Administration. (a) The commissioner must establish an application process 
1.20 	and other guidelines for implementing the program. The commissioner must notify grant 
1.21 	recipients of their award amounts by the following dates:
1.22 	(1) for fall student teaching placements, recipients must be notified by August 15;
2.1 	(2) for spring student teaching placements, recipients must be notified by December 1; 
2.2 	and
2.3 	(3) for summer student teaching placements, recipients must be notified by May 1.
2.4 	These notification deadlines do not apply in cases where grants are awarded to student 
2.5 	teachers who applied after application deadlines and funds remained after the initial round 
2.6 	of grants were awarded.
2.7 	(b) The commissioner must determine each academic year the grant amount up to $7,500 
2.8 	based on the amount of available funding and the number of eligible applicants.
2.9 	(c) The commissioner must give equal consideration to all eligible applicants regardless 
2.10 	of the order the application was received before the application deadline.
2.11 		Subd. 4.Reporting. By February 15 of each year, the commissioner must submit a 
2.12 	report on the details of the program under this section to the chairs and ranking minority 
2.13 	members of the legislative committees with jurisdiction over E-12 and higher education 
2.14 	finance and policy. The report must include the following information:
2.15 	(1) the number of eligible applicants and the number of student teachers receiving an 
2.16 	award, each broken down by postsecondary institution;
2.17 	(2) the total number of awards, the total dollar amount of all awards, and the average 
2.18 	award amount; and
2.19 	(3) other summary data identified by the commissioner as outcome indicators.

2.20 	Sec. 2. Minnesota Statutes 2020, section 290.0132, is amended by adding a subdivision 
2.21 	to read:
2.22 		Subd. 31.Student teacher grants. The portion of a grant issued under section 136A.1272 
2.23 	that is not used for qualified tuition and related expenses, as defined in Internal Revenue 
2.24 	Code, section 117, paragraph (b), clause (2), is a subtraction.

2.25 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.26 	31, 2021.

2.27 	Sec. 3. Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 1, is 
2.28 	amended to read:

2.302.29
	Subdivision 1.Total Appropriation
 	$
	271,702,000
	$
	274,269,000
272,769,000
	
3.1 	The amounts that may be spent for each 
3.2 	purpose are specified in the following 
3.3 	subdivisions.

3.4 	Sec. 4. Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 25, is 
3.5 	amended to read:

3.6
3.7	Subd. 25.Grants to Student Teachers in 
Shortage Areas
 		500,000
		500,000 0
	
3.8 	For grants to student teachers in shortage areas 
3.9 	under Minnesota Statutes, section 136A.1275.
3.10 	The commissioner may use no more than three 
3.11 	percent of the appropriation for administration 
3.12 	of the program.

3.13 	Sec. 5. Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 26, is 
3.14 	amended to read:

3.15
3.16	Subd. 26.Grants to Underrepresented Student 
Teachers
 		1,000,000
		1,000,000 0
	
3.17 	For grants to underrepresented student teachers 
3.18 	under Minnesota Statutes, section 136A.1274.
3.19 	The commissioner may use no more than three 
3.20 	percent of the appropriation for administration 
3.21 	of the program.
3.22 	The base for this appropriation is $1,125,000 
3.23 	in fiscal year 2024 and later.

3.24 	Sec. 6. APPROPRIATION.
 3.25 	$....... in fiscal year 2023 is appropriated from the general fund to the commissioner of 
3.26 	the Office of Higher Education for the grant program under Minnesota Statutes, section 
3.27 	136A.1272. This appropriation may be used for grants for 2022 summer teaching placements 
3.28 	under Minnesota Statutes, sections 136A.1274 and 136A.1275, if those placements would 
3.29 	have been funded by fiscal year 2023 appropriations for those programs.

3.30 	Sec. 7. REPEALER.
 3.31 	Minnesota Statutes 2021 Supplement, sections 136A.1274; and 136A.1275, are repealed.

APPENDIX 

Repealed Minnesota Statutes: 22-05730 

136A.1274 UNDERREPRESENTED STUDENT TEACHER GRANTS.Subdivision 1.Establishment. 
The commissioner of the Office of Higher Education must establish a grant program for student teaching stipends for low-income students who belong to an underrepresented racial or ethnic group. 

Subd. 2.Eligibility. 
To be eligible for a grant under this section, a student teacher must: 

(1) be enrolled in a Professional Educator Licensing and Standards Board-approved teacher preparation program that requires at least 12 weeks of student teaching in order to be recommended for any Tier 3 teaching license; 

(2) demonstrate financial need based on criteria established by the commissioner under subdivision 3; 

(3) be meeting satisfactory academic progress as defined under section 136A.101, subdivision 10; and 

(4) belong to a racial or ethnic group underrepresented in the Minnesota teacher workforce. 

Subd. 3.Administration. 
(a) The commissioner must establish an application process and other guidelines for implementing this program. The commissioner must notify grant recipients of their award amounts by the following dates: 

(1) for fall student teaching placements, recipients must be notified by August 15; 

(2) for spring student teaching placements, recipients must be notified by December 1; and 

(3) for summer student teaching placements, recipients must be notified by May 1. 

These notification deadlines do not apply in cases where grants are awarded to student teachers who applied after application deadlines and funds remained after the initial round of grants were awarded. 

(b) The commissioner must determine each academic year the stipend amount up to $7,500 based on the amount of available funding, the number of eligible applicants, and the financial need of the applicants. 

(c) The commissioner must give equal consideration to all eligible applicants regardless of the order the application was received before the application deadline. 

(d) If there are insufficient funds to provide an award to all eligible applicants, the commissioner shall prioritize the awards to eligible applicants based on: 

(1) the financial need of an applicant; and 

(2) the statewide distribution of funds. 

Subd. 4.Reporting. 
By February 15 of each year, the commissioner must submit a report on the details of the program under this section to the legislative committees with jurisdiction over E-12 and higher education finance and policy. The report must include the following information: 

(1) the number of eligible applicants and the number of teacher candidates receiving an award, each broken down by postsecondary institution; 

(2) the total number of awards, the total dollar amount of all awards, and the average award amount; and 

(3) other summary data identified by the commissioner as outcome indicators. 

136A.1275 STUDENT TEACHER GRANTS IN SHORTAGE AREAS.Subdivision 1.Establishment. 
(a) The commissioner of the Office of Higher Education must establish a grant program for student teaching stipends for low-income students who intend to teach in a license shortage area or rural school district after graduating and receiving their teaching license. 

(b) "License shortage area" means a licensure area that is identified as a shortage area by the Professional Educator Licensing and Standards Board in coordination with the commissioner using data collected for the teacher supply and demand report under section 122A.091, subdivision 5, provided that only licensure areas within the following fields may be identified as a license shortage area for purposes of this section: 

(1) English as a second language; 

(2) early childhood; 

(3) special education; 

(4) career and technical education; 

(5) science, technology, engineering, arts, and math; and 

(6) world languages. 

(c) "Rural school district" means a school district with fewer than 30 resident pupil units under section 126C.05, subdivision 6, per square mile. 

Subd. 2.Eligibility. 
To be eligible for a grant under this section, a student teacher must: 

(1) be enrolled in a Professional Educator Licensing and Standards Board-approved teacher preparation program that requires at least 12 weeks of student teaching; 

(2) demonstrate financial need based on criteria established by the commissioner under subdivision 3; 

(3) be meeting satisfactory academic progress as defined under section 136A.101, subdivision 10; and 

(4) intend to teach in a rural school district or intend to teach in a license shortage area. Intent to teach in a license shortage area must be verified based on the teacher license field the student is pursuing. To verify intent to teach in a rural school district, the student must submit to the commissioner a completed affidavit, prescribed by the commissioner, affirming the student's intent to teach in a rural district following graduation. Upon obtaining employment after graduating, the teacher shall report to the office the name of the school district in which the teacher is teaching. 

Subd. 3.Administration. 
(a) The commissioner must establish an application process and other guidelines for implementing this program. The commissioner must notify grant recipients of their award amounts by the following dates: 

(1) for fall student teaching placements, recipients must be notified by August 15; 

(2) for spring student teaching placements, recipients must be notified by December 1; and 

(3) for summer student teaching placements, recipients must be notified by May 1. 

These notification deadlines do not apply in cases where grants are awarded to student teachers who applied after application deadlines and funds remained after the initial round of grants were awarded. 

(b) The commissioner must determine each academic year the stipend amount up to $7,500 based on the amount of available funding, the number of eligible applicants, and the financial need of the applicants. 

(c) The commissioner must give equal consideration to all eligible applicants regardless of the order the application was received before the application deadline. 

(d) If there are insufficient funds to provide an award to all eligible applicants, the commissioner shall prioritize the awards to eligible participants based on: 

(1) the financial need of an applicant; and 

(2) whether the applicant intends to teach in both a rural school district and a license shortage area. 

Subd. 4.Reporting. 
(a) By February 1 of each year, the commissioner must submit a report to the chairs and ranking minority members of the legislative committees with jurisdiction over E-12 and higher education finance and policy. The report must include the following information: 

(1) the total number of awards, the total dollar amount of all awards, and the average award amount; 

(2) the number of eligible applicants and the number of student teachers receiving an award, each broken down by postsecondary institution; 

(3) the licensure areas and school districts in which the student teachers taught; and 

(4) other summary data identified by the commissioner as outcome indicators, including how many student teachers awarded a rural teacher grant were employed in a rural school district after graduation. 

(b) By July 1 of each odd numbered year, the commissioner must update and post on the office's website a list of licensure shortage areas eligible for a grant under this section.