1.1 	A bill for an act
1.2 	relating to higher education; providing funding and policy for the Office of Higher 
1.3 	Education, the Minnesota State Colleges and Universities, the University of 
1.4 	Minnesota, and other related programs; modifying state grant program calculation 
1.5 	parameters; providing financial aid and student loan forgiveness programs; requiring 
1.6 	reports; appropriating money;amending Minnesota Statutes 2016, sections 43A.06, 
1.7 	subdivision 1; 135A.031, subdivision 7; 135A.15, subdivision 1a; 136A.101, 
1.8 	subdivision 5a; 136A.103; 136A.125, subdivisions 2, 4; 136A.1275; 136A.1795, 
1.9 	subdivision 4; 136A.62, by adding a subdivision; 136A.646; 136A.65, subdivisions 
1.10 	1a, 4, 7; 136A.653; 136A.657, by adding a subdivision; 136A.67; 136A.68; 
1.11 	136A.685; 136A.821, by adding subdivisions; 136A.822, subdivisions 4, 6, 12, 
1.12 	13; 136A.826, subdivision 2; 136A.827, subdivisions 2, 3; 136A.828, subdivision 
1.13 	3; 136A.83; 136A.833; 136A.834, by adding a subdivision; 136A.902, subdivision 
1.14 	1; 148.89, subdivision 5; Laws 2014, chapter 312, article 1, section 15; Laws 2015, 
1.15 	chapter 69, article 3, section 20, subdivision 10; proposing coding for new law in 
1.16 	Minnesota Statutes, chapters 135A; 136A; 136F; 137; 148; 298.
1.17 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.18 	ARTICLE 1
1.19 	HIGHER EDUCATION APPROPRIATIONS

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

2.1				APPROPRIATIONS
	
2.2				Available for the Year
	
2.3				Ending June 30
	
2.4					2018
		2019

2.5
2.6	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.7	Subdivision 1.Total Appropriation
 	$
	248,436,000
	$
	247,595,000
	
2.8 	The amounts that may be spent for each 
2.9 	purpose are specified in the following 
2.10 	subdivisions.

2.11	Subd. 2.State Grants
 		188,106,000
		190,956,000
	
2.12 	If the appropriation in this subdivision for 
2.13 	either year is insufficient, the appropriation 
2.14 	for the other year is available for it.

2.15	Subd. 3.Child Care Grants
 		6,694,000
		6,694,000

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

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

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

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

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

3.16
3.17	Subd. 9.Intervention for College Attendance 
Program Grants
 		671,000
		671,000
	
3.18 	For the intervention for college attendance 
3.19 	program under Minnesota Statutes, section 
3.20 	136A.861.
3.21 	The commissioner may use no more than two 
3.22 	percent of this appropriation to administer the 
3.23 	intervention for college attendance program 
3.24 	grants.

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

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

3.27
3.28	Subd. 12.Minnesota Education Equity 
Partnership
 		45,000
		45,000

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

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

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

4.11
4.12	Subd. 16.Statewide Longitudinal Education 
Data System
 		882,000
		882,000

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

4.17
4.18	Subd. 18.MNSCU Two-Year Public College 
Program
 		3,481,000
		-0-
	
4.19 	(a) $2,780,000 in fiscal year 2018 is for 
4.20 	two-year public college program grants under 
4.21 	Laws 2015, chapter 69, article 3, section 20.
4.22 	(b) $545,000 in fiscal year 2018 is to provide 
4.23 	mentoring and outreach as specified under 
4.24 	Laws 2015, chapter 69, article 3, section 20.
4.25 	(c) $156,000 in fiscal year 2018 is for 
4.26 	information technology and administrative 
4.27 	costs associated with implementation of the 
4.28 	grant program.

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

5.28
5.29	Subd. 20.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		3,000,000
		3,000,000
	
5.30 	For spinal cord injury and traumatic brain 
5.31 	injury research grants authorized under 
5.32 	Minnesota Statutes, section 136A.901.
5.33 	The commissioner may use no more than two 
5.34 	percent of this appropriation to administer the 
5.35 	grant program under this subdivision.

6.1
6.2	Subd. 21.Summer Academic Enrichment 
Program
 		125,000
		125,000
	
6.3 	For summer academic enrichment grants under 
6.4 	Minnesota Statutes, section 136A.091.
6.5 	The commissioner may use no more than two 
6.6 	percent of this appropriation to administer the 
6.7 	grant program under this subdivision.

6.8
6.9	Subd. 22.Dual Training Competency Grants;  
Office of Higher Education
 		2,000,000
		2,000,000
	
6.10 	For training grants under Minnesota Statutes, 
6.11 	section 136A.246.
6.12 	The commissioner may use no more than two 
6.13 	percent of this appropriation to administer the 
6.14 	grant program under this subdivision.

6.15
6.16	Subd. 23.Dual Training Competency Grants;  
Department of Labor and Industry
 		200,000
		200,000
	
6.17 	For transfer to the commissioner of labor and 
6.18 	industry for identification of competency 
6.19 	standards for dual training under Minnesota 
6.20 	Statutes, section 175.45.

6.21	Subd. 24.Concurrent Enrollment Courses
 		340,000
		340,000
	
6.22 	(a) $225,000 in fiscal year 2018 and $225,000 
6.23 	in fiscal year 2019 are for grants to develop 
6.24 	new concurrent enrollment courses under 
6.25 	Minnesota Statutes, section 124D.09, 
6.26 	subdivision 10, that satisfy the elective 
6.27 	standard for career and technical education. 
6.28 	Any balance in the first year does not cancel 
6.29 	but is available in the second year.
6.30 	(b) $115,000 in fiscal year 2018 and $115,000 
6.31 	in fiscal year 2019 are for grants to 
6.32 	postsecondary institutions currently 
6.33 	sponsoring a concurrent enrollment course to 
6.34 	expand existing programs. The commissioner 
7.1 	shall determine the application process and 
7.2 	the grant amounts. The commissioner must 
7.3 	give preference to expanding programs that 
7.4 	are at capacity. Any balance in the first year 
7.5 	does not cancel but is available in the second 
7.6 	year.
7.7 	(c) By December 1 of each year, the office 
7.8 	shall submit a brief report to the chairs and 
7.9 	ranking minority members of the legislative 
7.10 	committees with jurisdiction over higher 
7.11 	education regarding:
7.12 	(1) the courses developed by grant recipients 
7.13 	and the number of students who enrolled in 
7.14 	the courses under paragraph (a); and
7.15 	(2) the programs expanded and the number of 
7.16 	students who enrolled in programs under 
7.17 	paragraph (b).

7.18	Subd. 25.Campus Sexual Assault Reporting
 		25,000
		25,000
	
7.19 	For the sexual assault reporting required under 
7.20 	Minnesota Statutes, section 135A.15.

7.21
7.22	Subd. 26.Campus Sexual Violence Prevention 
and Response Coordinator
 		150,000
		150,000
	
7.23 	For the Office of Higher Education to staff a 
7.24 	campus sexual violence prevention and 
7.25 	response coordinator to serve as a statewide 
7.26 	resource providing professional development 
7.27 	and guidance on best practices for 
7.28 	postsecondary institutions. $50,000 each year 
7.29 	are for administrative funding to conduct 
7.30 	trainings and provide materials to 
7.31 	postsecondary institutions.

7.32
7.33	Subd. 27.Addiction Medicine Graduate 
Fellowship Program
 		210,000
		-0-
	
8.1 	For the addiction medicine graduate fellowship 
8.2 	program under Laws 2016, chapter 189, article 
8.3 	1, section 2, subdivision 4.

8.4
8.5	Subd. 28.Student and Employer Connection 
Information System
 		405,000
		405,000
	
8.6 	For a grant to the Minnesota Chamber 
8.7 	Foundation for the creation of a web-based 
8.8 	job and intern-seeking software tool that blind 
8.9 	matches the needs of employers located in 
8.10 	Minnesota with the individual profiles of high 
8.11 	school seniors and postsecondary students 
8.12 	attending Minnesota high schools and 
8.13 	postsecondary institutions. No more than two 
8.14 	percent of this appropriation may be used for 
8.15 	administrative expenses of the foundation. The 
8.16 	foundation must report by January 15, 2019, 
8.17 	on activities under this subdivision to the 
8.18 	chairs and ranking minority members of the 
8.19 	legislative committees with jurisdiction over 
8.20 	higher education finance.

8.21
8.22	Subd. 29.Emergency Assistance for 
Postsecondary Students
 		175,000
		175,000
	
8.23 	(a) This appropriation is for the Office of 
8.24 	Higher Education to allocate grant funds on a 
8.25 	matching basis to schools with a demonstrable 
8.26 	homeless student population.
8.27 	(b) This appropriation shall be used to meet 
8.28 	immediate student needs that could result in 
8.29 	a student not completing the term or their 
8.30 	program including, but not limited to, 
8.31 	emergency housing, food, and transportation. 
8.32 	Emergency assistance does not impact the 
8.33 	amount of state financial aid received.
8.34 	(c) The commissioner shall determine the 
8.35 	application process and the grant amounts. 
9.1 	Any balance in the first year does not cancel 
9.2 	but shall be available in the second year. The 
9.3 	Office of Higher Education shall partner with 
9.4 	interested postsecondary institutions, other 
9.5 	state agencies, and student groups to establish 
9.6 	the programs.

9.7	Subd. 30.Grants to Teacher Candidates
 		500,000
		500,000
	
9.8 	For grants to teacher candidates under 
9.9 	Minnesota Statutes, section 136A.1275. This 
9.10 	appropriation is in addition to the money 
9.11 	available under Laws 2016, chapter 189, 
9.12 	article 25, section 62, subdivision 11.
9.13 	The commissioner may use no more than two 
9.14 	percent of the appropriation for administration 
9.15 	of the program.

9.16	Subd. 31.Teacher Shortage Loan Forgiveness
 		200,000
		200,000
	
9.17 	For the loan forgiveness program under 
9.18 	Minnesota Statutes, section 136A.1791.
9.19 	The commissioner may use no more than two 
9.20 	percent of this appropriation to administer the 
9.21 	program under this subdivision.

9.22
9.23	Subd. 32.Large Animal Veterinarian Loan 
Forgiveness Program
 		375,000
		375,000
	
9.24 	For the large animal veterinarian loan 
9.25 	forgiveness program under Minnesota Statutes, 
9.26 	section 136A.1795.

9.27
9.28	Subd. 33.Agricultural Educators Loan 
Forgiveness
 		50,000
		50,000
	
9.29 	For deposit in the agricultural education loan 
9.30 	forgiveness account.

9.31
9.32	Subd. 34.Aviation Degree Loan Forgiveness 
Program
 		25,000
		25,000
	
10.1 	For the aviation degree loan forgiveness 
10.2 	program under Minnesota Statutes, section 
10.3 	136A.1789.

10.4
10.5	Subd. 35.Grants for Students with Intellectual 
and Developmental Disabilities
 		200,000
		200,000
	
10.6 	For grants for students with intellectual and 
10.7 	developmental disabilities under Minnesota 
10.8 	Statutes, section 136A.1215.

10.9	Subd. 36.Loan Repayment Assistance Program
 		25,000
		25,000
	
10.10 	For a grant to the Loan Repayment Assistance 
10.11 	Program of Minnesota to provide education 
10.12 	debt relief to attorneys with full-time 
10.13 	employment providing legal advice or 
10.14 	representation to low-income clients or support 
10.15 	services for this work.

10.16	Subd. 37.Minnesota Life College
 		1,000,000
		1,000,000
	
10.17 	For a grant to Minnesota Life College for 
10.18 	need-based scholarships and tuition reduction.

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

10.20	Subd. 39.Balances Forward
 					
10.21 	A balance in the first year under this section 
10.22 	does not cancel, but is available for the second 
10.23 	year.

10.24	Subd. 40.Transfers
 					
10.25 	The commissioner of the Office of Higher 
10.26 	Education may transfer unencumbered 
10.27 	balances from the appropriations in this 
10.28 	section to the state grant appropriation, the 
10.29 	interstate tuition reciprocity appropriation, the 
10.30 	child care grant appropriation, the Indian 
10.31 	scholarship appropriation, the state work-study 
10.32 	appropriation, the get ready appropriation, and 
10.33 	the public safety officers' survivors 
10.34 	appropriation. Transfers from the child care 
11.1 	or state work-study appropriations may only 
11.2 	be made to the extent there is a projected 
11.3 	surplus in the appropriation. A transfer may 
11.4 	be made only with prior written notice to the 
11.5 	chairs and ranking minority members of the 
11.6 	senate and house of representatives 
11.7 	committees with jurisdiction over higher 
11.8 	education finance.

11.911.10
11.11
	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

11.12	Subdivision 1.Total Appropriation
 	$
	709,748,000
	$
	714,640,000
	
11.13 	The amounts that may be spent for each 
11.14 	purpose are specified in the following 
11.15 	subdivisions.

11.16	Subd. 2.Central Office and Shared Services Unit
 		33,074,000
		33,074,000
	
11.17 	For the Office of the Chancellor and the 
11.18 	Shared Services Division.
11.19 	Notwithstanding section 136F.06, subdivision 
11.20 	3, the Board of Trustees must not renew its 
11.21 	existing lease for the central office location, 
11.22 	and must explore co-locating the central office 
11.23 	on an existing system campus or campuses.

11.24	Subd. 3.Operations and Maintenance
 		672,559,000
		677,451,000
	
11.25 	(a) Of this amount, the Board of Trustees must 
11.26 	transfer $100,000 for each campus not located 
11.27 	in a metropolitan county, as defined in 
11.28 	Minnesota Statutes, section 473.121, 
11.29 	subdivision 4, in each year to the president of 
11.30 	each institution that includes such a campus, 
11.31 	provided that no institution may receive more 
11.32 	than $300,000 under this paragraph. Funds 
11.33 	appropriated under this paragraph are for 
12.1 	enrollment, new program, and student success 
12.2 	initiatives.
12.3 	(b) The Board of Trustees must establish 
12.4 	tuition rates as follows:
12.5 	(1) for the 2017-2018 academic year, the 
12.6 	tuition rate at colleges must not exceed the 
12.7 	2016-2017 academic year rate; and
12.8 	(2) for the 2018-2019 academic year, the 
12.9 	tuition rate at universities must not exceed the 
12.10 	2017-2018 academic year rate, and the tuition 
12.11 	rate at colleges must be reduced by at least 
12.12 	one percent compared to the 2017-2018 
12.13 	academic year rate.
12.14 	The student tuition relief may not be offset by 
12.15 	increases in mandatory fees, charges, or other 
12.16 	assessments to the student.
12.17 	(c) The Board of Trustees is requested to help 
12.18 	Minnesota close the attainment gap by funding 
12.19 	activities which improve retention and 
12.20 	completion for students of color.
12.21 	(d) This appropriation includes $500,000 in 
12.22 	fiscal year 2018 and $500,000 in fiscal year 
12.23 	2019 for workforce development scholarships 
12.24 	under Minnesota Statutes, section 136F.38.
12.25 	(e) $200,000 each year is for transfer to the 
12.26 	Cook County Higher Education Board to 
12.27 	provide educational programming and 
12.28 	academic support services to remote regions 
12.29 	in northeastern Minnesota. The Cook County 
12.30 	Higher Education Board shall continue to 
12.31 	provide information to the Board of Trustees 
12.32 	on the number of students served, credit hours 
12.33 	delivered, and services provided to students.
13.1 	(f) $50,000 in fiscal year 2018 and $50,000 in 
13.2 	fiscal year 2019 are for developing and 
13.3 	teaching online agricultural courses by farm 
13.4 	business management faculty at colleges that 
13.5 	offer farm business management.
13.6 	(g) $175,000 in fiscal year 2018 and $175,000 
13.7 	in fiscal year 2019 are for the 
13.8 	veterans-to-agriculture pilot program 
13.9 	established by Laws 2015, chapter 69, article 
13.10 	1, section 4, subdivision 3. The program shall 
13.11 	continue to conform to the requirements of 
13.12 	that subdivision. The appropriation shall be 
13.13 	used to support, in equal amounts, up to six 
13.14 	program sites statewide. No more than two 
13.15 	percent of the total appropriation provided by 
13.16 	this section may be used for administrative 
13.17 	purposes at the system level.
13.18 	No later than December 15, 2018, the program 
13.19 	shall report to the committees of the house of 
13.20 	representatives and the senate with jurisdiction 
13.21 	over issues related to agriculture, veterans 
13.22 	affairs, and higher education on program 
13.23 	operations, including information on 
13.24 	participation rates, new job placements, and 
13.25 	any unmet needs.
13.26 	(h) This appropriation includes $40,000 in 
13.27 	fiscal year 2018 and $40,000 in fiscal year 
13.28 	2019 to implement the sexual assault policies 
13.29 	required under Minnesota Statutes, section 
13.30 	135A.15.
13.31 	(i) This appropriation includes $3,000,000 in 
13.32 	fiscal year 2018 and $5,000,000 in fiscal year 
13.33 	2019 for upgrading the Integrated Statewide 
13.34 	Record System.
14.1 	(j) $100,000 in fiscal year 2018 is for use by 
14.2 	Winona State University for HealthForce 
14.3 	Minnesota to develop educational materials 
14.4 	that increase awareness of career opportunities 
14.5 	available in the field of senior care. The 
14.6 	educational materials developed under this 
14.7 	provision must be appropriate for students in 
14.8 	K-12 education settings, dislocated workers, 
14.9 	and rural communities. Materials must be 
14.10 	developed in collaboration with employers 
14.11 	and trade organizations representing 
14.12 	employers in the field of senior care.
14.13 	Winona State University shall submit a report 
14.14 	by February 1, 2019, to the chairs and ranking 
14.15 	minority members of the legislative 
14.16 	committees with jurisdiction over higher 
14.17 	education finance and policy. The report must 
14.18 	include information about the materials 
14.19 	developed, to whom materials were 
14.20 	distributed, and identify any collaborations 
14.21 	with employers and trade organizations.

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

14.23
14.24	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

14.25	Subdivision 1.Total Appropriation
 	$
	636,868,000
	$
	638,818,000

14.26	Appropriations by Fund
	
14.27		2018
	2019
	
14.28	General
	634,711,000
	636,661,000
	
14.29	Health Care Access
	2,157,000
	2,157,000
	
14.30 	The amounts that may be spent for each 
14.31 	purpose are specified in the following 
14.32 	subdivisions.

14.33	Subd. 2.Operations and Maintenance
 		567,273,000
		569,223,000
	
15.1 	(a) $15,000,000 in fiscal year 2018 and 
15.2 	$15,000,000 in fiscal year 2019 are to: (1) 
15.3 	increase the medical school's research 
15.4 	capacity; (2) improve the medical school's 
15.5 	ranking in National Institutes of Health 
15.6 	funding; (3) ensure the medical school's 
15.7 	national prominence by attracting and 
15.8 	retaining world-class faculty, staff, and 
15.9 	students; (4) invest in physician training 
15.10 	programs in rural and underserved 
15.11 	communities; and (5) translate the medical 
15.12 	school's research discoveries into new 
15.13 	treatments and cures to improve the health of 
15.14 	Minnesotans.
15.15 	(b) $6,800,000 in fiscal year 2018 and 
15.16 	$8,800,000 in fiscal year 2019 are for health 
15.17 	training restoration. This appropriation must 
15.18 	be used to support all of the following: (1) 
15.19 	faculty physicians who teach at eight residency 
15.20 	program sites, including medical resident and 
15.21 	student training programs in the Department 
15.22 	of Family Medicine; (2) the Mobile Dental 
15.23 	Clinic; and (3) expansion of geriatric 
15.24 	education and family programs.
15.25 	(c) $1,000,000 in fiscal year 2018 and 
15.26 	$1,000,000 in fiscal year 2019 are for the 
15.27 	Minnesota Discovery, Research, and 
15.28 	InnoVation Economy funding program for 
15.29 	cancer care research.
15.30 	(d) $50,000 in fiscal year 2018 is to develop 
15.31 	and implement a plan to offer the academic 
15.32 	program for students with intellectual and 
15.33 	developmental disabilities required in article 
15.34 	2, section 17. The Board of Regents must 
15.35 	submit a report on the plan to the chairs and 
16.1 	ranking minority members of the committees 
16.2 	of the legislature with jurisdiction over higher 
16.3 	education finance and policy no later than 
16.4 	January 15, 2018. The report must describe 
16.5 	program plans, including strategies for 
16.6 	recruitment of applicants, and strategies to 
16.7 	address anticipated program needs that cannot 
16.8 	be filled using existing campus or system 
16.9 	resources. This is a onetime appropriation.
16.10 	(e) $500,000 in fiscal year 2018 and $500,000 
16.11 	in fiscal year 2019 are for the University of 
16.12 	Minnesota, Morris branch, to cover the costs 
16.13 	of tuition waivers under Minnesota Statutes, 
16.14 	section 137.16.

16.15	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
16.16 	This appropriation is from the health care 
16.17 	access fund.

16.18	Subd. 4.Special Appropriations

16.19	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
16.20 	For the Agricultural Experiment Station and 
16.21 	the Minnesota Extension Service:
16.22 	(1) the agricultural experiment stations and 
16.23 	Minnesota Extension Service must convene 
16.24 	agricultural advisory groups to focus research, 
16.25 	education, and extension activities on producer 
16.26 	needs and implement an outreach strategy that 
16.27 	more effectively and rapidly transfers research 
16.28 	results and best practices to producers 
16.29 	throughout the state;
16.30 	(2) this appropriation includes funding for 
16.31 	research and outreach on the production of 
16.32 	renewable energy from Minnesota biomass 
16.33 	resources, including agronomic crops, plant 
16.34 	and animal wastes, and native plants or trees. 
17.1 	The following areas should be prioritized and 
17.2 	carried out in consultation with Minnesota 
17.3 	producers, renewable energy, and bioenergy 
17.4 	organizations:
17.5 	(i) biofuel and other energy production from 
17.6 	perennial crops, small grains, row crops, and 
17.7 	forestry products in conjunction with the 
17.8 	Natural Resources Research Institute (NRRI);
17.9 	(ii) alternative bioenergy crops and cropping 
17.10 	systems; and
17.11 	(iii) biofuel coproducts used for livestock feed;
17.12 	(3) this appropriation includes funding for the 
17.13 	College of Food, Agricultural, and Natural 
17.14 	Resources Sciences to establish and provide 
17.15 	leadership for organic agronomic, 
17.16 	horticultural, livestock, and food systems 
17.17 	research, education, and outreach and for the 
17.18 	purchase of state-of-the-art laboratory, 
17.19 	planting, tilling, harvesting, and processing 
17.20 	equipment necessary for this project;
17.21 	(4) this appropriation includes funding for 
17.22 	research efforts that demonstrate a renewed 
17.23 	emphasis on the needs of the state's agriculture 
17.24 	community. The following areas should be 
17.25 	prioritized and carried out in consultation with 
17.26 	Minnesota farm organizations:
17.27 	(i) vegetable crop research with priority for 
17.28 	extending the Minnesota vegetable growing 
17.29 	season;
17.30 	(ii) fertilizer and soil fertility research and 
17.31 	development;
18.1 	(iii) soil, groundwater, and surface water 
18.2 	conservation practices and contaminant 
18.3 	reduction research;
18.4 	(iv) discovering and developing plant varieties 
18.5 	that use nutrients more efficiently;
18.6 	(v) breeding and development of turf seed and 
18.7 	other biomass resources in all three Minnesota 
18.8 	biomes;
18.9 	(vi) development of new disease-resistant and 
18.10 	pest-resistant varieties of turf and agronomic 
18.11 	crops;
18.12 	(vii) utilizing plant and livestock cells to treat 
18.13 	and cure human diseases;
18.14 	(viii) the development of dairy coproducts;
18.15 	(ix) a rapid agricultural response fund for 
18.16 	current or emerging animal, plant, and insect 
18.17 	problems affecting production or food safety;
18.18 	(x) crop pest and animal disease research;
18.19 	(xi) developing animal agriculture that is 
18.20 	capable of sustainably feeding the world;
18.21 	(xii) consumer food safety education and 
18.22 	outreach;
18.23 	(xiii) programs to meet the research and 
18.24 	outreach needs of organic livestock and crop 
18.25 	farmers; and
18.26 	(xiv) alternative bioenergy crops and cropping 
18.27 	systems; and growing, harvesting, and 
18.28 	transporting biomass plant material; and
18.29 	(5) by February 1, 2019, the Board of Regents 
18.30 	must submit a report to the legislative 
18.31 	committees and divisions with jurisdiction 
18.32 	over agriculture and higher education finance 
19.1 	on the status and outcomes of research and 
19.2 	initiatives funded in this paragraph.

19.3	(b) Health Sciences
		9,204,000
		9,204,000
	
19.4 	$346,000 each year is to support up to 12 
19.5 	resident physicians in the St. Cloud Hospital 
19.6 	family practice residency program. The 
19.7 	program must prepare doctors to practice 
19.8 	primary care medicine in rural areas of the 
19.9 	state. The legislature intends this program to 
19.10 	improve health care in rural communities, 
19.11 	provide affordable access to appropriate 
19.12 	medical care, and manage the treatment of 
19.13 	patients in a more cost-effective manner. The 
19.14 	remainder of this appropriation is for the rural 
19.15 	physicians associates program; the Veterinary 
19.16 	Diagnostic Laboratory; health sciences 
19.17 	research; dental care; the Biomedical 
19.18 	Engineering Center; and the collaborative 
19.19 	partnership between the University of 
19.20 	Minnesota and Mayo Clinic for regenerative 
19.21 	medicine, research, clinical translation, and 
19.22 	commercialization.

19.23	(c) Institute of Technology
		1,140,000
		1,140,000
	
19.24 	For the geological survey and the talented 
19.25 	youth mathematics program.

19.26	(d) System Special
		6,181,000
		6,181,000
	
19.27 	For general research, the Labor Education 
19.28 	Service, Natural Resources Research Institute, 
19.29 	Center for Urban and Regional Affairs, Bell 
19.30 	Museum of Natural History, and the 
19.31 	Humphrey exhibit.
19.32 	$1,000,000 in fiscal year 2018 and $1,000,000 
19.33 	in fiscal year 2019 are for the Natural 
20.1 	Resources Research Institute to invest in 
20.2 	applied research for economic development.

20.3
20.4	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,991,000
		7,991,000
	
20.5 	This appropriation is for the following 
20.6 	activities:
20.7 	(1) $7,491,000 in fiscal year 2018 and 
20.8 	$7,491,000 in fiscal year 2019 are for the 
20.9 	direct and indirect expenses of the 
20.10 	collaborative research partnership between the 
20.11 	University of Minnesota and the Mayo 
20.12 	Foundation for research in biotechnology and 
20.13 	medical genomics. An annual report on the 
20.14 	expenditure of these funds must be submitted 
20.15 	to the governor and the chairs of the legislative 
20.16 	committees responsible for higher education 
20.17 	finance by June 30 of each fiscal year.
20.18 	(2) $500,000 in fiscal year 2018 and $500,000 
20.19 	in fiscal year 2019 are to award competitive 
20.20 	grants to conduct research into the prevention, 
20.21 	treatment, causes, and cures of Alzheimer's 
20.22 	disease and other dementias.

20.23	Subd. 5.Academic Health Center
 					
20.24 	The appropriation for Academic Health Center 
20.25 	funding under Minnesota Statutes, section 
20.26 	297F.10, is estimated to be $22,250,000 each 
20.27 	year.

20.28	Sec. 5. MAYO CLINIC

20.29	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
20.30 	The amounts that may be spent are specified 
20.31 	in the following subdivisions.

20.32	Subd. 2.Medical School
 		665,000
		665,000
	
21.1 	The state must pay a capitation each year for 
21.2 	each student who is a resident of Minnesota. 
21.3 	The appropriation may be transferred between 
21.4 	each year of the biennium to accommodate 
21.5 	enrollment fluctuations. It is intended that 
21.6 	during the biennium the Mayo Clinic use the 
21.7 	capitation money to increase the number of 
21.8 	doctors practicing in rural areas in need of 
21.9 	doctors.

21.10
21.11	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
21.12 	The state must pay stipend support for up to 
21.13 	27 residents each year.

21.14 	ARTICLE 2
21.15 	HIGHER EDUCATION POLICY

21.16 	Section 1. Minnesota Statutes 2016, section 43A.06, subdivision 1, is amended to read:
21.17 		Subdivision 1.General. (a) The commissioner shall perform the duties assigned to the 
21.18 	commissioner by sections 3.855, 179A.01 to 179A.25 and this section.
21.19 	(b) The commissioner shall be the state labor negotiator for purposes of negotiating and 
21.20 	administering agreements with exclusive representatives of employees and shall perform 
21.21 	any other duties delegated by the commissioner subject to the limitations in paragraph (c).
21.22 	(c) The Board of Trustees of the Minnesota State Colleges and Universities may exercise 
21.23 	the powers under this section for employees included in the units provided in clauses (9), 
21.24 	(10), and (11) of section 179A.10, subdivision 2, except with respect to sections 43A.22 to 
21.25 	43A.31, which shall continue to be the responsibility of the commissioner. The commissioner 
21.26 	shall have the right to review and comment to the Minnesota State Colleges and Universities 
21.27 	on the board's final proposals prior to exchange of final positions with the designated 
21.28 	bargaining units as well as any requests for interest arbitration. The legislature encourages 
21.29 	the Board of Trustees, in coordination with the commissioner of management and budget 
21.30 	and the Board of Regents of the University of Minnesota, to endeavor in collective bargaining 
21.31 	negotiations to seek fiscal balance recognizing the ability of the employer to fund the 
21.32 	agreements or awards. When submitting a proposed collective bargaining agreement to the 
21.33 	Legislative Coordinating Commission and the legislature under section 3.855, subdivision 
21.34 	2, the Board of Trustees must use procedures and assumptions consistent with those used 
22.1 	by the commissioner in calculating the costs of the proposed contract. The Legislative 
22.2 	Coordinating Commission must, when considering a collective bargaining agreement or 
22.3 	arbitration award submitted by the Board of Trustees, evaluate market conditions affecting 
22.4 	the employees in the bargaining unit, equity with other bargaining units in the executive 
22.5 	branch, and the ability of the trustees and the state to fund the agreement or award.

22.6 	Sec. 2. Minnesota Statutes 2016, section 135A.031, subdivision 7, is amended to read:
22.7 		Subd. 7.Reports. (a) The University of Minnesota and the Minnesota State Colleges 
22.8 	and Universities systems shall include in their biennial budget proposals to the legislature:
22.9 	(1) a five-year history of systemwide expenditures, reported by:
22.10 	(i) functional areas, including instruction, research, public service, student financial aid, 
22.11 	and auxiliary services, and including direct costs and indirect costs, such as institutional 
22.12 	support, academic support, student services, and facilities management, associated with 
22.13 	each functional area; and
22.14 	(ii) objects of expenditure, such as salaries, benefits, supplies, and equipment, including 
22.15 	a full explanation of all material changes to the expenditure categories when compared to 
22.16 	the prior fiscal year;
22.17 	(2) a five-year history of the system's total instructional expenditures per full-year 
22.18 	equivalent student, by level of instruction, including upper-division undergraduate, 
22.19 	lower-division undergraduate, graduate, professional, and other categories of instructional 
22.20 	programs offered by the system;
22.21 	(3) a five-year history of the system's total revenues by funding source, including tuition, 
22.22 	state operations and maintenance appropriations, state special appropriations, other restricted 
22.23 	state funds, federal appropriations, sponsored research funds, gifts, auxiliary revenue, indirect 
22.24 	cost recovery, and any other revenue sources;
22.25 	(4) an explanation describing how state appropriations made to the system in the previous 
22.26 	biennium were allocated and the methodology used to determine the allocation;
22.27 	(5) data describing how the institution reallocated resources to advance the priorities set 
22.28 	forth in the budget submitted under section 135A.034 and the statewide objectives under 
22.29 	section 135A.011. The information must indicate whether instruction and support programs 
22.30 	received a reduction in or additional resources. The total amount reallocated must be clearly 
22.31 	explained;
23.1 	(6) the tuition rates and fees established by the governing board in each of the past ten 
23.2 	years and comparison data for peer institutions and national averages;
23.3 	(7) data on the number and proportion of students graduating within four, five, and six 
23.4 	years from universities and within three years from colleges as reported in the integrated 
23.5 	postsecondary education data system. These data must be provided for each institution by 
23.6 	race, ethnicity, and gender. Data and information must be submitted that describe the system's 
23.7 	plan and progress toward attaining the goals set forth in the plan to increase the number and 
23.8 	proportion of students that graduate within four, five, or six years from a university or within 
23.9 	three years from a college;
23.10 	(8) data on, and the methodology used to measure, the number of students traditionally 
23.11 	underrepresented in higher education enrolled at the system's institutions. Data and 
23.12 	information must be submitted that describe the system's plan and progress toward attaining 
23.13 	the goals set forth in the plan to increase the recruitment, retention, and timely graduation 
23.14 	of students traditionally underrepresented in higher education; and
23.15 	(9) data on the revenue received from all sources to support research or workforce 
23.16 	development activities or the system's efforts to license, sell, or otherwise market products, 
23.17 	ideas, technology, and related inventions created in whole or in part by the system. Data 
23.18 	and information must be submitted that describe the system's plan and progress toward 
23.19 	attaining the goals set forth in the plan to increase the revenue received to support research 
23.20 	or workforce development activities or revenue received from the licensing, sale, or other 
23.21 	marketing and technology transfer activities by the system;
23.22 	(10) data on consulting contracts from the last two completed fiscal years for which the 
23.23 	work is performed by a consultant who is not an employee of the system, for which the 
23.24 	system paid in excess of $500,000. Data must include the name of the consultant, the total 
23.25 	value of the contract, a description of the work completed, and a description of the reasons 
23.26 	for using an outside consultant and not internal staff. Consulting contracts are defined as 
23.27 	contracts from management, investment and financial advisory services, project management, 
23.28 	computer/technology advisory services, and construction project management; and
23.29 	(11) aggregate data on the following:
23.30 	(i) student demographics;
23.31 	(ii) a five-year history of student enrollment, including student enrollment by legislative 
23.32 	district;
23.33 	(iii) a five-year history of student debt;
24.1 	(iv) a five-year history of mandatory student fees by campus;
24.2 	(v) employee head count and employee demographics;
24.3 	(vi) facilities, including physical space overview, condition, square footage, distribution 
24.4 	by region, any deferred maintenance, and capital bonding requested and received;
24.5 	(vii) administrative costs, including the definition of "administrators" used by the system, 
24.6 	the total number of "administrators" as percent of total employee head count, and system 
24.7 	office budget for Minnesota State Colleges and Universities as percent of total system 
24.8 	general fund revenue; and
24.9 	(viii) college and university operating budgets.
24.10 	(b) Data required by this subdivision shall be submitted by the public postsecondary 
24.11 	systems to the Minnesota Office of Higher Education and the Department of Management 
24.12 	and Budget and included in the biennial budget document. Representatives from each system, 
24.13 	in consultation with the commissioner of management and budget and the commissioner 
24.14 	of the Office of Higher Education, shall develop consistent reporting practices for this 
24.15 	purpose.
24.16 	(c) To the extent practicable, each system shall develop the ability to respond to legislative 
24.17 	requests for financial analyses that are more detailed than those required by this subdivision, 
24.18 	including but not limited to analyses that show expenditures or revenues by institution or 
24.19 	program, or in multiple categories of expenditures or revenues, and analyses that show 
24.20 	revenue sources for particular types of expenditures.

24.21 	Sec. 3. [135A.0434] MANDATORY STUDENT ACTIVITY FEES PROHIBITED.
24.22 		Subdivision 1.Mandatory fee prohibition. (a) The governing board of a public 
24.23 	postsecondary institution must not impose on students any mandatory fee funding 
24.24 	noninstructional student programs, activities, groups, or services.
24.25 	(b) This section does not prohibit mandatory fees paid by students that are directly related 
24.26 	to academic, administrative, or health services.
24.27 	(c) The Board of Regents of the University of Minnesota is requested to adopt a policy 
24.28 	implementing this section.
24.29 		Subd. 2.Penalty. If the Board of Regents of the University of Minnesota imposes a 
24.30 	mandatory fee in violation of this section, the commissioner of management and budget 
24.31 	must deduct an amount equal to the net revenue generated by that fee from the university's 
24.32 	appropriation base in the first year of the next biennium.

25.1 	Sec. 4. [135A.158] INFORMATION PROVIDED TO STUDENT PARENTS AND 
25.2 	PREGNANT STUDENTS.
25.3 	A public or regionally accredited private postsecondary educational institution must 
25.4 	provide information according to this section to students who are parents of one or more 
25.5 	children age 12 or younger, and to students who notify the institution that they are pregnant. 
25.6 	The information must include a fact sheet on the legal rights of student parents and pregnant 
25.7 	students and a list of resources to support student parents and pregnant students. The list of 
25.8 	resources may include resources for prenatal care, child care, transportation, and housing. 
25.9 	This information must be available in languages that reflect the primary languages of the 
25.10 	institution's student body.

25.11 	Sec. 5. [136A.055] DEVELOPMENTAL EDUCATION REPORTING.
25.12 	(a) The commissioner must report on the department's Web site the following summary 
25.13 	data on students who graduated from a Minnesota high school and are attending a public 
25.14 	postsecondary institution in Minnesota, limited to the most recent academic school year:
25.15 	(1) the number of students placed in supplemental or developmental education;
25.16 	(2) the number of students who complete supplemental or developmental education 
25.17 	within one academic year;
25.18 	(3) the number of students that complete gateway courses in one academic year; and
25.19 	(4) time to complete a degree or certificate at a postsecondary institution.
25.20 	(b) Summary data must be aggregated by school district, high school, and postsecondary 
25.21 	institution. Summary data must be disaggregated by race, ethnicity, free or reduced-price 
25.22 	lunch eligibility, and age.
25.23 	(c) The commissioner must post the initial data on the department's Web site on or before 
25.24 	February 15, 2018, and must update the data at least annually thereafter.

25.25 	Sec. 6. Minnesota Statutes 2016, section 136A.101, subdivision 5a, is amended to read:
25.26 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means the 
25.27 	amount of a family's contribution to a student's cost of attendance, as determined by a federal 
25.28 	need analysis. For dependent students, the assigned family responsibility is 94 90 percent 
25.29 	of the parental contribution. For independent students with dependents other than a spouse, 
25.30 	the assigned family responsibility is 86 82 percent of the student contribution. For 
26.1 	independent students without dependents other than a spouse, the assigned family 
26.2 	responsibility is 50 46 percent of the student contribution.

26.3 	Sec. 7. [136A.1215] GRANTS FOR STUDENTS WITH INTELLECTUAL AND 
26.4 	DEVELOPMENTAL DISABILITIES.
26.5 		Subdivision 1.Establishment. A program is established to provide financial assistance 
26.6 	to students with intellectual and developmental disabilities that attend a Minnesota 
26.7 	postsecondary institution.
26.8 		Subd. 2.Eligible students. A postsecondary student is eligible for a grant under this 
26.9 	section if the student:
26.10 	(1) meets the eligibility requirements in section 136A.121, subdivision 2;
26.11 	(2) is a student with an intellectual disability, as defined in Code of Federal Regulations, 
26.12 	title 34, section 668.231, and is enrolled in a comprehensive transition and postsecondary 
26.13 	program under that section; and
26.14 	(3) attends an eligible institution, as defined in section 136A.101, subdivision 4.
26.15 		Subd. 3.Application. To receive a grant under this section, a student must apply in the 
26.16 	form and manner specified by the commissioner.
26.17 		Subd. 4.Grant amounts. (a) The amount of a grant under this section equals the tuition 
26.18 	and fees at the student's postsecondary institution, minus:
26.19 	(1) any Pell or state grants the student receives; and
26.20 	(2) any institutional aid the student receives.
26.21 	(b) If appropriations are insufficient to provide the full amount calculated under paragraph 
26.22 	(a) to all eligible applicants, the commissioner must reduce the grants of all recipients 
26.23 	proportionally.
26.24 		Subd. 5.Reporting. By February 15 of each year, the commissioner of higher education 
26.25 	must submit a report on the details of the program under this section to the legislative 
26.26 	committees with jurisdiction over higher education finance and policy. The report must 
26.27 	include the following information, broken out by postsecondary institution:
26.28 	(1) the number of students receiving an award;
26.29 	(2) the average and total award amounts; and
26.30 	(3) summary demographic data on award recipients.

27.1 	Sec. 8. Minnesota Statutes 2016, section 136A.125, subdivision 2, is amended to read:
27.2 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if the 
27.3 	applicant:
27.4 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the 
27.5 	state of Minnesota;
27.6 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled 
27.7 	as defined in section 125A.02, and who is receiving or will receive care on a regular basis 
27.8 	from a licensed or legal, nonlicensed caregiver;
27.9 	(3) is income eligible as determined by the office's policies and rules, but is not a recipient 
27.10 	of assistance from the Minnesota family investment program;
27.11 	(4) either has not earned a baccalaureate degree and has been enrolled full time less than 
27.12 	eight ten semesters or the equivalent, or has earned a baccalaureate degree and has been 
27.13 	enrolled full time less than eight ten semesters or the equivalent in a graduate or professional 
27.14 	degree program;
27.15 	(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate, 
27.16 	graduate, or professional degree, diploma, or certificate;
27.17 	(6) is enrolled in at least six credits in an undergraduate program or one credit in a 
27.18 	graduate or professional program in an eligible institution; and
27.19 	(7) is in good academic standing and making satisfactory academic progress.
27.20 	(b) A student who withdraws from enrollment for active military service after December 
27.21 	31, 2002, because the student was ordered to active military service as defined in section 
27.22 	190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical 
27.23 	professional, that substantially limits the student's ability to complete the term is entitled to 
27.24 	an additional semester or the equivalent of grant eligibility and will be considered to be in 
27.25 	continuing enrollment status upon return.

27.26 	Sec. 9. Minnesota Statutes 2016, section 136A.125, subdivision 4, is amended to read:
27.27 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant must be 
27.28 	based on:
27.29 	(1) the income of the applicant and the applicant's spouse;
27.30 	(2) the number in the applicant's family, as defined by the office; and
27.31 	(3) the number of eligible children in the applicant's family.
28.1 	(b) The maximum award to the applicant shall be $2,800 $3,000 for each eligible child 
28.2 	per academic year, except that the campus financial aid officer may apply to the office for 
28.3 	approval to increase grants by up to ten percent to compensate for higher market charges 
28.4 	for infant care in a community. The office shall develop policies to determine community 
28.5 	market costs and review institutional requests for compensatory grant increases to ensure 
28.6 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
28.7 	that will be awarded per child based on the factors in this subdivision. The chart shall include 
28.8 	a range of income and family size.
28.9 	(c) Applicants with family incomes at or below a percentage of the federal poverty level, 
28.10 	as determined by the commissioner, will qualify for the maximum award. The commissioner 
28.11 	shall attempt to set the percentage at a level estimated to fully expend the available 
28.12 	appropriation for child care grants. Applicants with family incomes exceeding that threshold 
28.13 	will receive the maximum award minus ten percent of their income exceeding that threshold. 
28.14 	If the result is less than zero, the grant is zero.
28.15 	(d) The academic year award amount must be disbursed by academic term using the 
28.16 	following formula:
28.17 	(1) the academic year amount described in paragraph (b);
28.18 	(2) divided by the number of terms in the academic year;
28.19 	(3) divided by 15 for undergraduate students and six for graduate and professional 
28.20 	students; and
28.21 	(4) multiplied by the number of credits for which the student is enrolled that academic 
28.22 	term, up to 15 credits for undergraduate students and six for graduate and professional 
28.23 	students.
28.24 	(e) Payments shall be made each academic term to the student or to the child care 
28.25 	provider, as determined by the institution. Institutions may make payments more than once 
28.26 	within the academic term.

28.27 	Sec. 10. Minnesota Statutes 2016, section 136A.1275, is amended to read:
28.28 	136A.1275 GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS
28.29 	TEACHER CANDIDATE GRANTS.
28.30 		Subdivision 1.Establishment. (a) The commissioner of the Office of Higher Education 
28.31 	must establish a grant program for student teaching stipends for low-income students enrolled 
28.32 	in a Board of Teaching-approved teacher preparation program who are interested in teaching 
29.1 	in a high needs subject area or region intend to teach in a shortage area after graduating and 
29.2 	receiving their teaching license or belong to an underrepresented racial or ethnic group. For 
29.3 	purposes of this section, "high needs subject area or region" means a shortage of teachers 
29.4 	teaching in particular subject areas or a shortage of teachers teaching in particular regions 
29.5 	of the state identified in the commissioner of education's biennial survey of districts under 
29.6 	section 127A.05, subdivision 6, or in another Department of Education survey on teacher 
29.7 	shortages.
29.8 	(b) "Shortage area" means a license field or economic development region within 
29.9 	Minnesota defined as a shortage area by the Department of Education using data collected 
29.10 	for the teacher supply and demand report under section 127A.05, subdivision 6, or other 
29.11 	surveys conducted by the Department of Education that provide indicators for teacher supply 
29.12 	and demand.
29.13 		Subd. 2.Eligibility. To be eligible for a grant under this section, a teacher candidate 
29.14 	must:
29.15 	(1) be enrolled in a Board of Teaching-approved teacher preparation program that requires 
29.16 	at least 12 weeks of student teaching and results in the teacher candidate receiving in order 
29.17 	to be recommended for a full professional teaching license enabling the licensee to teach 
29.18 	in a high needs subject area or region; and
29.19 	(2) demonstrate financial need based on criteria established by the commissioner under 
29.20 	subdivision 3;
29.21 	(3) intend to teach in a shortage area or belong to an underrepresented racial or ethnic 
29.22 	group; and
29.23 	(4) be meeting satisfactory academic progress as defined under section 136A.101, 
29.24 	subdivision 10.
29.25 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
29.26 	application process and other guidelines for implementing this program, including repayment 
29.27 	responsibilities for stipend recipients who do not complete student teaching or who leave 
29.28 	Minnesota to teach in another state during the first year after student teaching.
29.29 	(b) The commissioner must determine each academic year the stipend amount up to 
29.30 	$7,500 based on the amount of available funding and, the number of eligible applicants, 
29.31 	and the financial need of the applicants.
29.32 	(c) The percentage of the total award reserved for teacher candidates who identify as 
29.33 	belonging to an underrepresented racial or ethnic group must be equal to or greater than the 
30.1 	total percentage of students of underrepresented racial or ethnic groups as measured under 
30.2 	section 120B.35, subdivision 3. If this percentage cannot be met because of a lack of 
30.3 	qualifying candidates, the remaining amount may be awarded to teacher candidates who 
30.4 	intend to teach in a shortage area.

30.5 	Sec. 11. [136A.1789] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.
30.6 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
30.7 	have the meanings given them.
30.8 	(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's 
30.9 	or bachelor's degree from a postsecondary institution located in Minnesota, and (2) has 
30.10 	obtained an aviation mechanic's certificate from the Federal Aviation Administration.
30.11 	(c) "Qualified education loan" means a government, commercial, or foundation loan 
30.12 	used by an individual for actual costs paid for tuition to a postsecondary institution located 
30.13 	in Minnesota for a professional flight training degree.
30.14 	(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's 
30.15 	degree in professional flight training from a postsecondary institution located in Minnesota, 
30.16 	and (2) is in the process of obtaining or has obtained an airline transport pilot certificate.
30.17 		Subd. 2.Creation of account. (a) An aviation degree loan forgiveness program account 
30.18 	is established to provide qualified pilots and qualified aircraft technicians with financial 
30.19 	assistance in repaying qualified education loans. The commissioner must use money from 
30.20 	the account to establish and administer the aviation degree loan forgiveness program.
30.21 	(b) Appropriations made to the aviation degree loan forgiveness program account do 
30.22 	not cancel and are available until expended.
30.23 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program 
30.24 	under this section, an individual must:
30.25 	(1) be a qualified pilot or qualified aircraft technician;
30.26 	(2) have qualified education loans;
30.27 	(3) reside in Minnesota; and
30.28 	(4) submit an application to the commissioner in the form and manner prescribed by the 
30.29 	commissioner.
30.30 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
30.31 	one-year full-time service obligation according to subdivision 4. To complete the service 
31.1 	obligation, the applicant must work full time in Minnesota as a qualified pilot or qualified 
31.2 	aircraft technician. A participant must complete one year of service under this paragraph 
31.3 	for each year the participant receives an award under this section.
31.4 		Subd. 4.Service obligation. (a) Before receiving loan repayment disbursements and as 
31.5 	requested, a participant must verify to the commissioner that the participant is employed in 
31.6 	a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
31.7 	(b) If a participant does not fulfill the required service obligation, the commissioner 
31.8 	must collect from the participant the total amount paid to the participant under the loan 
31.9 	forgiveness program plus interest at a rate established according to section 270C.40. The 
31.10 	commissioner must deposit the money collected in the aviation degree loan forgiveness 
31.11 	account. The commissioner must allow waivers of all or part of the money owed the 
31.12 	commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented 
31.13 	fulfillment of the minimum service commitment.
31.14 		Subd. 5.Loan forgiveness. (a) The commissioner may select eligible applicants each 
31.15 	year for participation in the aviation degree loan forgiveness program, within the limits of 
31.16 	available funding. Applicants are responsible for securing their own qualified education 
31.17 	loans.
31.18 	(b) For each year that the participant meets the eligibility requirements under subdivision 
31.19 	3, the commissioner must make annual disbursements directly to:
31.20 	(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified 
31.21 	education loans, whichever is less; and
31.22 	(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's 
31.23 	qualified education loans, whichever is less.
31.24 	(c) An individual may receive disbursements under this section for a maximum of five 
31.25 	years.
31.26 	(d) The participant must provide the commissioner with verification that the full amount 
31.27 	of the loan repayment disbursement received by the participant has been applied toward the 
31.28 	designated qualified education loan. After each disbursement, verification must be received 
31.29 	by the commissioner and approved before the next repayment disbursement is made.
31.30 	(e) If the participant receives a disbursement in the participant's fifth year of eligibility, 
31.31 	the participant must provide the commissioner with verification that the full amount of the 
31.32 	participant's final loan repayment disbursement was applied toward the designated qualified 
31.33 	education loan. If a participant does not provide the verification as required under this 
32.1 	paragraph within six months of receipt of the final disbursement, the commissioner must 
32.2 	collect from the participant the amount of the final disbursement. The commissioner must 
32.3 	deposit the money collected in the aviation degree loan forgiveness program account.
32.4 		Subd. 6.Rules. The commissioner may adopt rules to implement this section.

32.5 	Sec. 12. [136A.1794] AGRICULTURAL EDUCATION LOAN FORGIVENESS 
32.6 	PROGRAM.
32.7 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
32.8 	have the meanings given.
32.9 	(b) "Qualified education loan" means a government, commercial, or foundation loan for 
32.10 	actual costs paid for tuition, reasonable education expenses, and reasonable living expenses 
32.11 	related to the graduate or undergraduate education of a qualified teacher.
32.12 	(c) "Qualified teacher" means a teacher licensed under chapter 122A who:
32.13 	(1) is employed in a nonadministrative position teaching agricultural education in any 
32.14 	grade from grades 5 through 12 at a Minnesota school during the current year; and
32.15 	(2) has completed an undergraduate or graduate program in agricultural education at a 
32.16 	college or university approved by the state of Minnesota to prepare persons for teacher 
32.17 	licensure.
32.18 	(d) "School" means the following:
32.19 	(1) a school or program operated by a school district or a group of school districts;
32.20 	(2) a tribal contract school eligible to receive aid according to section 124D.83;
32.21 	(3) a charter school; or
32.22 	(4) a private school.
32.23 		Subd. 2.Account; appropriation. An agricultural education loan forgiveness account 
32.24 	is established in the special revenue fund to provide qualified teachers with financial 
32.25 	assistance to repay qualified education loans. Money in the account, including interest, is 
32.26 	appropriated to the commissioner for purposes of this section.
32.27 		Subd. 3.Eligibility. (a) To be eligible to participate in the loan forgiveness program 
32.28 	under this section, an individual must:
32.29 	(1) be a qualified teacher;
32.30 	(2) have qualified education loans; and
33.1 	(3) submit an application to the commissioner in the form and manner prescribed by the 
33.2 	commissioner.
33.3 	(b) An applicant selected to participate must sign a contract to agree to serve a minimum 
33.4 	one-year full-time service obligation according to subdivision 4. To complete the service 
33.5 	obligation, the applicant must work full time in Minnesota as a qualified teacher. A participant 
33.6 	must complete one year of service under this paragraph for each year the participant receives 
33.7 	an award under this section.
33.8 		Subd. 4.Service obligation. (a) Before receiving loan repayment disbursements and as 
33.9 	requested, a participant must verify to the commissioner that the participant is employed in 
33.10 	a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
33.11 	(b) If a participant does not fulfill the required service obligation, the commissioner 
33.12 	must collect from the participant the total amount paid to the participant under the loan 
33.13 	forgiveness program plus interest at a rate established according to section 270C.40. The 
33.14 	commissioner must deposit the money collected in the agricultural education loan forgiveness 
33.15 	account. The commissioner must allow waivers of all or part of the money owed the 
33.16 	commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented 
33.17 	fulfillment of the minimum service commitment.
33.18 		Subd. 5.Loan forgiveness. (a) The commissioner may select eligible applicants each 
33.19 	year for participation in the agricultural education loan forgiveness program, within the 
33.20 	limits of available funding. Applicants are responsible for securing their own qualified 
33.21 	education loans.
33.22 	(b) The commissioner must make annual disbursements directly to the eligible participant 
33.23 	of $3,000 or the balance of the participant's qualified education loans, whichever is less, 
33.24 	for each year that the participant meets the eligibility requirements under subdivision 3, up 
33.25 	to a maximum of five years.
33.26 	(c) The participant must provide the commissioner with verification that the full amount 
33.27 	of the loan repayment disbursement received by the participant has been applied toward the 
33.28 	designated qualified education loan. After each disbursement, verification must be received 
33.29 	by the commissioner and approved before the next repayment disbursement is made.

33.30 	Sec. 13. Minnesota Statutes 2016, section 136A.653, is amended by adding a subdivision 
33.31 	to read:
33.32 		Subd. 5.Regionally accredited institutions in Minnesota. (a) A regionally accredited 
33.33 	postsecondary institution with its primary physical location in Minnesota is exempt from 
34.1 	the provisions of sections 136A.61 to 136A.71, including related fees, when it creates new 
34.2 	or modifies existing:
34.3 	(1) majors, minors, concentrations, specializations, and areas of emphasis within approved 
34.4 	degrees;
34.5 	(2) nondegree programs within approved degrees;
34.6 	(3) underlying curriculum or courses;
34.7 	(4) modes of delivery; and
34.8 	(5) locations.
34.9 	(b) The institution must annually notify the commissioner of the exempt actions listed 
34.10 	in paragraph (a) and, upon the commissioner's request, must provide additional information 
34.11 	about the action.
34.12 	(c) The institution must notify the commissioner within 60 days of a program closing.
34.13 	(d) Nothing in this subdivision exempts an institution from the annual registration and 
34.14 	degree approval requirements of sections 136A.61 to 136A.71.

34.15 	Sec. 14. Minnesota Statutes 2016, section 136A.685, is amended to read:
34.16 	136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR 
34.17 	MISREPRESENTATION.
34.18 	The office shall not provide may revoke, or deny an application for, registration or degree 
34.19 	or name approval to a school if there has been a criminal, civil, or administrative adjudication 
34.20 	of fraud or misrepresentation in Minnesota or in another state or jurisdiction against the 
34.21 	school or its owner, officers, agents, or sponsoring organization. If the adjudication was 
34.22 	related to a particular academic program, the office may revoke degree approval, or deny 
34.23 	an application for degree approval, for that program only.
34.24 	The adjudication of fraud or misrepresentation is sufficient cause for the office to 
34.25 	determine that a school:
34.26 	(1) does not qualify for exemption under section 136A.657; or
34.27 	(2) is not approved to grant degrees or to use the term "academy," "college," "institute," 
34.28 	or "university" in its name.

35.1 	Sec. 15. Minnesota Statutes 2016, section 136A.902, subdivision 1, is amended to read:
35.2 		Subdivision 1.Membership. The commissioner shall appoint a 12-member14-member
35.3 	advisory council consisting of:
35.4 	(1) one member representing the University of Minnesota Medical School;
35.5 	(2) one member representing the Mayo Medical School;
35.6 	(3) one member representing the Courage Kenny Rehabilitation Center;
35.7 	(4) one member representing Hennepin County Medical Center;
35.8 	(5) one member who is a neurosurgeon;
35.9 	(6) one member who has a spinal cord injury;
35.10 	(7) one member who is a family member of a person with a spinal cord injury;
35.11 	(8) one member who has a traumatic brain injury;
35.12 	(9) one member who is a veteran who has a spinal cord injury or a traumatic brain injury;
35.13 	(10) one member who is a veteran who has a traumatic brain injury;
35.14 	(11) one member who is a family member of a person with a traumatic brain injury;
35.15 	(11) (12) one member who is a physician specializing in the treatment of spinal cord 
35.16 	injury representing Gillette Children's Specialty Healthcare; and
35.17 	(12) (13) one member who is a physician specializing in the treatment of traumatic brain 
35.18 	injury; and
35.19 	(14) one member representing Gillette Children's Specialty Healthcare.

35.20 	Sec. 16. [136F.38] WORKFORCE DEVELOPMENT SCHOLARSHIPS.
35.21 		Subdivision 1.Program established. The board shall develop a scholarship program 
35.22 	to incentivize new students to enter high-demand occupations upon graduation.
35.23 		Subd. 2.Scholarship awards. The program shall award scholarships at the beginning 
35.24 	of an academic term, in the amount of $2,500, to be distributed evenly between two terms.
35.25 		Subd. 3.Program eligibility. (a) Scholarships shall be awarded only to a student eligible 
35.26 	for resident tuition, as defined in section 135A.043, who is enrolled in any of the following 
35.27 	programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health 
35.28 	care services; or (4) information technology.
36.1 	(b) The student must be enrolled for at least nine credits at a two-year college in the 
36.2 	Minnesota State Colleges and Universities system.
36.3 		Subd. 4.Renewal; cap. A student who has received a scholarship may apply again but 
36.4 	total lifetime awards are not to exceed $5,000 per student. Students may only be awarded 
36.5 	a second scholarship upon completion of two academic terms.
36.6 		Subd. 5.Administration. (a) The board shall establish an application process and other 
36.7 	guidelines for implementing this program.
36.8 	(b) The board shall give preference to students in financial need.
36.9 		Subd. 6.Report required. The board must submit an annual report by February 1 of 
36.10 	each year about the scholarship awards to the chairs and ranking minority members of the 
36.11 	senate and house of representatives committees with jurisdiction over higher education 
36.12 	finance and policy. The first report is due no later than February 1, 2019. The annual report 
36.13 	shall describe the following:
36.14 	(1) the number of students receiving a scholarship at each two-year college during the 
36.15 	previous fiscal year;
36.16 	(2) the number of scholarships awarded for each program of study or certification 
36.17 	described in subdivision 3, paragraph (a);
36.18 	(3) the number of scholarship recipients who completed a program of study or certification 
36.19 	described in subdivision 3, paragraph (a);
36.20 	(4) the number of scholarship recipients who secured employment by their graduation 
36.21 	date and those who secured employment within three months of their graduation date;
36.22 	(5) a list of occupations scholarship recipients are entering; and
36.23 	(6) the number of students who were denied a scholarship.

36.24 	Sec. 17. [137.45] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND 
36.25 	DEVELOPMENTAL DISABILITIES.
36.26 		Subdivision 1.Program required. The Board of Regents of the University of Minnesota 
36.27 	is requested to offer an academic program consistent with the requirements of this section 
36.28 	for students with intellectual and developmental disabilities at the University of 
36.29 	Minnesota-Morris.
36.30 		Subd. 2.Enrollment and admission. The program must establish an enrollment goal 
36.31 	of at least 15 incoming students per academic year. The board is requested to establish an 
37.1 	application process for the program. A student who successfully completes the program 
37.2 	must be awarded a certificate, diploma, or other appropriate academic credential.
37.3 		Subd. 3.Curriculum and activities. (a) The program must provide an inclusive, 
37.4 	full-time, two-year residential college experience for students with intellectual and 
37.5 	developmental disabilities. The curriculum must include:
37.6 	(1) core courses that develop life skills, financial literacy, and the ability to live 
37.7 	independently;
37.8 	(2) rigorous academic work in a student's chosen field of study; and
37.9 	(3) an internship, apprenticeship, or other skills-based experience to prepare for 
37.10 	meaningful employment upon completion of the program.
37.11 	(b) In addition to academic requirements, the program must allow participating students 
37.12 	the opportunity to engage fully in campus life. Program activities must include, but are not 
37.13 	limited to:
37.14 	(1) the establishment of on-campus mentoring and peer support communities; and
37.15 	(2) opportunities for personal growth through leadership development and other 
37.16 	community engagement activities.
37.17 	(c) The program may tailor its curriculum and activities to highlight academic programs, 
37.18 	student and community life experiences, and employment opportunities unique to the campus 
37.19 	or the region where the campus is located.
37.20 		Subd. 4.Reporting. By January 15 of each year, the board must submit a report on the 
37.21 	program to the chairs and ranking minority members of the committees in the house of 
37.22 	representatives and the senate with jurisdiction over higher education finance and policy. 
37.23 	The report must include, but need not be limited to, information regarding:
37.24 	(1) the number of students participating in the program;
37.25 	(2) program goals and outcomes; and
37.26 	(3) the success rate of participants.

37.27 	EFFECTIVE DATE. This section is effective beginning in the 2018-2019 academic 
37.28 	year.

37.29 	Sec. 18. [137.47] FETAL TISSUE RESEARCH.
37.30 		Subdivision 1.Definitions. (a) For purposes of this section, the terms in this subdivision 
37.31 	have the meanings given them.
38.1 	(b) "Aborted fetal tissue" means fetal tissue that is available as a result of an elective 
38.2 	abortion.
38.3 	(c) "Fetal tissue" means any body part, organ, or cell of an unborn human child. Fetal 
38.4 	tissue does not include tissue or cells obtained from a placenta, umbilical cord, or amniotic 
38.5 	fluid.
38.6 	(d) "Institutional Review Board" or "IRB" means the University of Minnesota's 
38.7 	Institutional Review Board, the primary unit responsible for oversight of human subjects 
38.8 	research protections.
38.9 	(e) "Fetal Tissue Research Committee" or "FTR" means an oversight committee at the 
38.10 	University of Minnesota with the responsibility to oversee, review, and approve or deny 
38.11 	research using fetal tissue.
38.12 	(f) "Non-aborted fetal tissue" means fetal tissue that is available as a result of a 
38.13 	miscarriage or stillbirth, or fetal tissue from a living unborn child.
38.14 	(g) "Research" means systematic investigation, including development, testing, and 
38.15 	evaluation, designed to develop or contribute to generalizable knowledge. Research does 
38.16 	not include a procedure or test administered to a particular patient by a physician for medical 
38.17 	purposes.
38.18 		Subd. 2.Approval by the Fetal Tissue Research Committee. (a) A researcher at the 
38.19 	University of Minnesota must obtain approval from the FTR before conducting research 
38.20 	using fetal tissue. The FTR must consider whether alternatives to fetal tissue would be 
38.21 	sufficient for the research. If the proposed research involves aborted fetal tissue, the 
38.22 	researcher must provide a written narrative justifying the use of aborted fetal tissue and 
38.23 	discussing whether alternatives to aborted fetal tissue, including non-aborted fetal tissue, 
38.24 	can be used.
38.25 	(b) The FTR must submit its decision to the IRB. The IRB is requested to review the 
38.26 	conclusions of the FTR to ensure that all alternatives have been considered.
38.27 		Subd. 3.Legislative report. (a) No later than January 15 of each year, the Board of 
38.28 	Regents must submit a report to the chairs and ranking minority members of the legislative 
38.29 	committees with jurisdiction over higher education policy and finance and health and human 
38.30 	services policy and finance. The report must describe:
38.31 	(1) all fetal tissue research proposals submitted to the FTR or IRB, including any written 
38.32 	narrative required under subdivision 2;
38.33 	(2) whether the research proposal involved aborted fetal tissue;
39.1 	(3) action by the FTR or IRB on all fetal tissue research proposals, including whether 
39.2 	the proposal was approved by the FTR or IRB;
39.3 	(4) a list of all new or ongoing fetal tissue research projects at the university, including:
39.4 	(i) the date that the project was approved by the FTR or IRB;
39.5 	(ii) the source of funding for the project;
39.6 	(iii) the goal or purpose of the project;
39.7 	(iv) whether the fetal tissue used is aborted fetal tissue or non-aborted fetal tissue;
39.8 	(v) the source of the fetal tissue used;
39.9 	(vi) references to any publicly available information about the project, such as National 
39.10 	Institutes of Health grant award information; and
39.11 	(vii) references to any publications resulting from the project.
39.12 	(b) The report must not include a researcher's name, other identifying information, 
39.13 	contact information, or the location of a laboratory or office.
39.14 		Subd. 4.Education on compliance to applicable laws and policies. The University 
39.15 	of Minnesota is requested to conduct education programs for all students and employees 
39.16 	engaged in research on fetal tissue. Programs are requested to include mandatory 
39.17 	comprehensive training on applicable federal and state laws, university policies and 
39.18 	procedures, and other professional standards related to the respectful, humane, and ethical 
39.19 	treatment of fetal tissue in research.

39.20 	Sec. 19. Minnesota Statutes 2016, section 148.89, subdivision 5, is amended to read:
39.21 		Subd. 5.Practice of psychology. "Practice of psychology" means the observation, 
39.22 	description, evaluation, interpretation, or modification of human behavior by the application 
39.23 	of psychological principles, methods, or procedures for any reason, including to prevent, 
39.24 	eliminate, or manage symptomatic, maladaptive, or undesired behavior and to enhance 
39.25 	interpersonal relationships, work, life and developmental adjustment, personal and 
39.26 	organizational effectiveness, behavioral health, and mental health. The practice of psychology 
39.27 	includes, but is not limited to, the following services, regardless of whether the provider 
39.28 	receives payment for the services:
39.29 	(1) psychological research and teaching of psychology subject to the exemptions in 
39.30 	section 148.9075;
40.1 	(2) assessment, including psychological testing and other means of evaluating personal 
40.2 	characteristics such as intelligence, personality, abilities, interests, aptitudes, and 
40.3 	neuropsychological functioning;
40.4 	(3) a psychological report, whether written or oral, including testimony of a provider as 
40.5 	an expert witness, concerning the characteristics of an individual or entity;
40.6 	(4) psychotherapy, including but not limited to, categories such as behavioral, cognitive, 
40.7 	emotive, systems, psychophysiological, or insight-oriented therapies; counseling; hypnosis; 
40.8 	and diagnosis and treatment of:
40.9 	(i) mental and emotional disorder or disability;
40.10 	(ii) alcohol and substance dependence or abuse;
40.11 	(iii) disorders of habit or conduct;
40.12 	(iv) the psychological aspects of physical illness or condition, accident, injury, or 
40.13 	disability, including the psychological impact of medications;
40.14 	(v) life adjustment issues, including work-related and bereavement issues; and
40.15 	(vi) child, family, or relationship issues;
40.16 	(5) psychoeducational services and treatment; and
40.17 	(6) consultation and supervision.

40.18 	Sec. 20. [148.9075] LICENSURE EXEMPTIONS.
40.19 		Subdivision 1.Teaching and research. Nothing in sections 148.88 to 148.98 shall be 
40.20 	construed to prevent a person employed in a secondary, postsecondary, or graduate institution 
40.21 	from teaching and conducting research in psychology within an educational institution that 
40.22 	is recognized by a regional accrediting organization or by a federal, state, county, or local 
40.23 	government institution, agency, or research facility, so long as:
40.24 	(1) the institution, agency, or facility provides appropriate oversight mechanisms to 
40.25 	ensure public protections; and
40.26 	(2) the person is not providing direct clinical services to a client or clients as defined in 
40.27 	sections 148.88 to 148.98.
40.28 		Subd. 2.Students. Nothing in sections 148.88 to 148.98 shall prohibit the practice of 
40.29 	psychology under qualified supervision by a practicum psychology student, a predoctoral 
40.30 	psychology intern, or an individual who has earned a doctoral degree in psychology and is 
40.31 	in the process of completing their postdoctoral supervised psychological employment.

41.1 	Sec. 21. [298.2215] COUNTY SCHOLARSHIP PROGRAM.
41.2 		Subdivision 1.Establishment. A county may establish a scholarship fund from any 
41.3 	unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or 
41.4 	298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used 
41.5 	at a two-year Minnesota State Colleges and Universities institution within the county. The 
41.6 	county shall establish procedures for applying for and distributing the scholarships.
41.7 		Subd. 2.Eligibility. An applicant for a scholarship under this section must be a resident 
41.8 	of the county at the time of the applicant's high school graduation. The county may establish 
41.9 	additional eligibility criteria.

41.10 	Sec. 22. Laws 2014, chapter 312, article 1, section 15, is amended to read:
41.11 	Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.
 41.12 	(a) For fiscal years 2016 to 2041 2017, $3,500,000 is added to the base operations and 
41.13 	maintenance appropriation to the Board of Regents of the University of Minnesota in Laws 
41.14 	2013, chapter 99, article 1, section 5.
41.15 	(b) For fiscal years 2018 to 2040, $3,312,000 is added to the base operations and 
41.16 	maintenance appropriation to the Board of Regents of the University of Minnesota in Laws 
41.17 	2013, chapter 99, article 1, section 5.

41.18 	Sec. 23. DEVELOPMENTAL EDUCATION REFORM.
 41.19 	(a) The Board of Trustees of the Minnesota State Colleges and Universities shall create 
41.20 	a plan to reform developmental education offerings on system campuses aimed at reducing 
41.21 	the number of students placed into developmental education. The plan must include, but is 
41.22 	not limited to:
41.23 	(1) a systemwide multiple measures placement plan to guide campuses in placement of 
41.24 	students into developmental education courses;
41.25 	(2) uniform cut scores for student placement, where appropriate, which will lead to fewer 
41.26 	students being placed into developmental education courses;
41.27 	(3) other identified system policy changes, including an appeals process, that will decrease 
41.28 	the number of students being placed into developmental education courses;
41.29 	(4) accelerated pathways in mathematics, reading, and composition to ensure students 
41.30 	can complete developmental education work in no more than one year, including allowing 
41.31 	for students to complete college-level gateway courses in one year whenever possible;
42.1 	(5) a comprehensive examination of the cost structure of developmental education, 
42.2 	including potential financial incentives for students or other mechanisms to lower the cost 
42.3 	of developmental offerings for students; and
42.4 	(6) identified best practices and targeted support strategies such as the use of supplemental 
42.5 	instruction, that may be used on every system campus around developmental education 
42.6 	offerings.
42.7 	(b) The plan must include deadlines for implementation of proposed changes and must 
42.8 	be submitted to the chairs and ranking minority members of the legislative committees with 
42.9 	jurisdiction over higher education finance and policy by February 15, 2018.
42.10 	(c) The plan, in its entirety, shall be implemented by the start of the 2020-2021 academic 
42.11 	term, with individual provisions being implemented earlier as dictated by the plan.

42.12 	Sec. 24. GREATER MINNESOTA OUTREACH AND RECRUITMENT.
 42.13 	The Board of Regents of the University of Minnesota is requested to develop a plan to 
42.14 	conduct outreach and recruitment of students from Minnesota, specifically identifying 
42.15 	mechanisms to increase the number of students from greater Minnesota who are admitted 
42.16 	to the university campus located in the metropolitan area. Greater Minnesota is defined as 
42.17 	any area other than the area described in Minnesota Statutes, section 473.121, subdivision 
42.18 	4. The plan must be submitted to the chairs and ranking members of the senate and house 
42.19 	of representatives legislative committees with jurisdiction over higher education finance 
42.20 	and policy by February 15, 2018.

42.21 	Sec. 25. UNIVERSITY OF MINNESOTA FETAL TISSUE RESEARCH; 
42.22 	LEGISLATIVE AUDITOR REVIEW.
 42.23 	(a) The legislative auditor is requested to complete a comprehensive review of the use 
42.24 	of fetal tissue in research activities at the University of Minnesota. The review must include:
42.25 	(1) the total number of research activities in which fetal tissue is currently or has been 
42.26 	previously used, including those that are in progress and those that have been completed;
42.27 	(2) the cost of acquiring fetal tissues for use in research activities, itemized by the source 
42.28 	of funds used for procurement, including funds from federal, state, and other public sources, 
42.29 	and funds derived from student tuition and fees;
42.30 	(3) the extent to which the conduct of the research activities complies with applicable 
42.31 	federal and state laws related to acquisition, sale, handling, and disposition of human tissues, 
42.32 	including fetal tissues;
43.1 	(4) the extent to which the conduct of the research activities complies with applicable 
43.2 	Board of Regents policies and procedures related to acquisition, sale, handling, and 
43.3 	disposition of human tissues, including fetal tissues; and
43.4 	(5) whether applicable Board of Regents policies include provisions to ensure fetal tissue 
43.5 	is used in research activities only when necessary, and to ensure that the research activities 
43.6 	are conducted in an ethical manner, including whether procedures and protocols for oversight 
43.7 	have been implemented to verify compliance with these policies.
43.8 	(b) As used in this section, "research activities" include any academic fetal tissue research 
43.9 	or fetal tissue transplantation research activity or program conducted in a University of 
43.10 	Minnesota facility, or that is supported, directly or indirectly, by University of Minnesota 
43.11 	funds.

43.12 	EFFECTIVE DATE. This section is effective the day following final enactment. The 
43.13 	legislative auditor is requested to complete the review no later than one year following final 
43.14 	enactment.

43.15 	Sec. 26. STATE GRANT REPORT.
 43.16 	(a) The commissioner of higher education must report to the legislature the estimated 
43.17 	amount of funding necessary for the state grant program to fully meet the financial aid needs 
43.18 	of lower- and middle-income Minnesota college students based on the program's shared 
43.19 	responsibility design. The report must include an estimate of:
43.20 	(1) the amount a student should be expected to contribute toward the cost of education 
43.21 	through borrowing and employment;
43.22 	(2) the amount a student's family should be expected to contribute toward the cost of 
43.23 	education, based on the family's financial circumstances;
43.24 	(3) the actual living and miscellaneous expenses of a student, including room, board, 
43.25 	transportation, and the cost of textbooks; and
43.26 	(4) equitable tuition maximums for public and nonprofit institutions that reflect both 
43.27 	tuition charged and the subsidy provided to all students at public institutions received through 
43.28 	direct appropriations.
43.29 	(b) The commissioner must submit the report to the higher education committees of the 
43.30 	legislature by October 15, 2017.

44.1 	Sec. 27. UNIVERSITY OF MINNESOTA TUITION.
 44.2 	(a) For the 2018-2019 and 2019-2020 academic years, the Board of Regents of the 
44.3 	University of Minnesota is encouraged to continue to adopt tuition schedules for the 
44.4 	University of Minnesota Twin Cities campus that:
44.5 	(1) move the nonresident undergraduate tuition rate for a full-time student toward the 
44.6 	median nonresident undergraduate tuition rate for public Big Ten universities;
44.7 	(2) move the resident undergraduate tuition rate for a full-time student toward the median 
44.8 	of resident undergraduate tuition rates for public Big Ten universities;
44.9 	(3) move the nonresident graduate tuition rate in each graduate program for a full-time 
44.10 	student toward the median of nonresident graduate tuition rates for public Big Ten universities 
44.11 	with a similar program; and
44.12 	(4) move the resident graduate tuition rate in each graduate program for a full-time 
44.13 	student toward the median of resident graduate tuition rates for public Big Ten universities 
44.14 	with a similar program.
44.15 	(b) For purposes of this section, "public Big Ten university" means the flagship campus 
44.16 	for public universities that are members of the Big Ten Conference.

44.17 	Sec. 28. LIVING AND MISCELLANEOUS EXPENSE ALLOWANCE.
 44.18 	The living and miscellaneous expense allowance for the state grant program under 
44.19 	Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2019, is set at 
44.20 	$9,320 for each fiscal year of the biennium.

44.21 	Sec. 29. ONGOING APPROPRIATION.
 44.22 	The appropriation under Laws 2016, chapter 189, article 25, section 62, subdivision 11, 
44.23 	may be used to provide grants for any purpose under Minnesota Statutes, section 136A.1275.

44.24 	ARTICLE 3
44.25 	OFFICE OF HIGHER EDUCATION AGENCY POLICY

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

45.1 	Sec. 2. Minnesota Statutes 2016, section 136A.103, is amended to read:
45.2 	136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.
45.3 	(a) A postsecondary institution is eligible for state student aid under chapter 136A and 
45.4 	sections 197.791 and 299A.45, if the institution is located in this state and:
45.5 	(1) is operated by this state or the Board of Regents of the University of Minnesota; or
45.6 	(2) is operated privately and, as determined by the office, meets the requirements of 
45.7 	paragraph (b).
45.8 	(b) A private institution must:
45.9 	(1) maintain academic standards substantially equivalent to those of comparable 
45.10 	institutions operated in this state;
45.11 	(2) be licensed or registered as a postsecondary institution by the office; and
45.12 	(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of 
45.13 	the Higher Education Act of 1965, Public Law 89-329, as amended; or
45.14 	(ii) if an institution was participating in state student aid programs as of June 30, 2010, 
45.15 	and the institution did not participate in the federal Pell Grant program by June 30, 2010, 
45.16 	the institution must require every student who enrolls to sign a disclosure form, provided 
45.17 	by the office, stating that the institution is not participating in the federal Pell Grant program.
45.18 	(c) An institution that offers only graduate-level degrees or graduate-level nondegree 
45.19 	programs, or that offers only degrees or programs that do not meet the required minimum 
45.20 	program length to participate in the federal Pell Grant program, is an eligible institution if 
45.21 	the institution is licensed or registered as a postsecondary institution by the office.
45.22 	(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes 
45.23 	ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell 
45.24 	Grant program within four calendar years of the first ownership change to continue eligibility.
45.25 	(e) An institution that loses its eligibility for the federal Pell Grant program is not an 
45.26 	eligible institution.
45.27 	(f) An institution must maintain adequate administrative and financial standards and 
45.28 	compliance with all state statutes, rules, and administrative policies related to state financial 
45.29 	aid programs.

46.1 	Sec. 3. Minnesota Statutes 2016, section 136A.1795, subdivision 4, is amended to read:
46.2 		Subd. 4.Loan forgiveness. (a) The commissioner may select a maximum of five 
46.3 	applicants each year for participation in the loan forgiveness program, within the limits of 
46.4 	available funding. Applicants are responsible for securing their own qualified educational 
46.5 	loans.
46.6 	(b) The commissioner must select participants based on their suitability for practice 
46.7 	serving the designated rural area, as indicated by experience or training. The commissioner 
46.8 	must give preference to applicants closest to completing their training.
46.9 	(c) The commissioner must make annual disbursements directly to the participant of 
46.10 	$15,000 or the balance of the participant's qualifying educational loans, whichever is less, 
46.11 	for each year that a participant meets the service obligation required under subdivision 3, 
46.12 	paragraph (b), up to a maximum of five years.
46.13 	(d) Before receiving loan repayment disbursements and as requested, the participant 
46.14 	must complete and return to the commissioner an affidavit a confirmation of practice form 
46.15 	provided by the commissioner verifying that the participant is practicing as required under 
46.16 	subdivision 2, paragraph (a). The participant must provide the commissioner with verification 
46.17 	that the full amount of loan repayment disbursement received by the participant has been 
46.18 	applied toward the designated loans. After each disbursement, verification must be received 
46.19 	by the commissioner and approved before the next loan repayment disbursement is made.
46.20 	(e) Participants who move their practice remain eligible for loan repayment as long as 
46.21 	they practice as required under subdivision 2, paragraph (a).

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

46.25 	Sec. 5. Minnesota Statutes 2016, section 136A.646, is amended to read:
46.26 	136A.646 ADDITIONAL SECURITY.
46.27 	(a) In the eventNew schools that have been granted conditional approval for degrees or 
46.28 	names to allow them the opportunity to apply for and receive accreditation under section 
46.29 	136A.65, subdivision 7, or any registered institution that is notified by the United States 
46.30 	Department of Education that it has fallen below minimum financial standards and that its 
46.31 	continued participation in Title IV will be conditioned upon its satisfying either the Zone 
46.32 	Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter 
47.1 	of Credit Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), 
47.2 	the institution shall provide a surety bond conditioned upon the faithful performance of all 
47.3 	contracts and agreements with students in a sum equal to the "letter of credit" required by 
47.4 	the United States Department of Education in the Letter of Credit Alternative, but in no 
47.5 	event shall such bond be less than $10,000 nor more than $250,000.
47.6 	(b) In lieu of a bond, the applicant may deposit with the commissioner of management 
47.7 	and budget:
47.8 	(1) a sum equal to the amount of the required surety bond in cash; or
47.9 	(2) securities, as may be legally purchased by savings banks or for trust funds, in an 
47.10 	aggregate market value equal to the amount of the required surety bond.; or
47.11 	(3) an irrevocable letter of credit issued by a financial institution to the amount of the 
47.12 	required surety bond.
47.13 	(c) The surety of any bond may cancel it upon giving 60 days' notice in writing to the 
47.14 	office and shall be relieved of liability for any breach of condition occurring after the 
47.15 	effective date of cancellation.
47.16 	(d) In the event of a school closure, the additional security must first be used to destroy 
47.17 	any private educational data under section 13.32 left at a physical campus in Minnesota 
47.18 	after all other governmental agencies have recovered or retrieved records under their record 
47.19 	retention policies. Any remaining funds must then be used to reimburse tuition and fee costs 
47.20 	to students that were enrolled at the time of the closure or had withdrawn in the previous 
47.21 	120 calendar days but did not graduate. Priority for refunds will be given to students in the 
47.22 	following order:
47.23 	(1) cash payments made by the student or on behalf of a student;
47.24 	(2) private student loans; and
47.25 	(3) Veteran Administration education benefits that are not restored by the Veteran 
47.26 	Administration. If there are additional security funds remaining, the additional security 
47.27 	funds may be used to cover any administrative costs incurred by the office related to the 
47.28 	closure of the school.

47.29 	Sec. 6. Minnesota Statutes 2016, section 136A.65, subdivision 1a, is amended to read:
47.30 		Subd. 1a.Accreditation; requirement. (a) A school must not be registered or authorized 
47.31 	to offer any degree at any level unless the school is accredited has institutional accreditation
47.32 	by an agency recognized by the United States Department of Education for purposes of 
48.1 	eligibility to participate in Title IV federal financial aid programs. Any registered school 
48.2 	undergoing institutional accreditation shall inform the office of site visits by the accrediting 
48.3 	agency and provide office staff the opportunity to attend the visits, including excluding any 
48.4 	exit interviews. The institution must provide the office with a copy of the final report upon 
48.5 	receipt request of the office.
48.6 	(b) A school must not be authorized to offer any degree unless the program has 
48.7 	programmatic accreditation or the school has institutional accreditation by an agency 
48.8 	recognized by the United States Department of Education for purposes of eligibility to 
48.9 	participate in Title IV federal financial aid programs. Any program offered by a registered 
48.10 	school that does not have institutional accreditation and is undergoing programmatic 
48.11 	accreditation shall inform the office of site visits by the accrediting agency and provide 
48.12 	office staff the opportunity to attend the visits, excluding any exit interviews. The school 
48.13 	must provide the office with a copy of the final report by the accreditor upon request of the 
48.14 	office.

48.15 	Sec. 7. Minnesota Statutes 2016, section 136A.65, subdivision 4, is amended to read:
48.16 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have its 
48.17 	degree or degrees and name approved must substantially meet the following criteria:
48.18 	(1) the school has an organizational framework with administrative and teaching personnel 
48.19 	to provide the educational programs offered;
48.20 	(2) the school has financial resources sufficient to meet the school's financial obligations, 
48.21 	including refunding tuition and other charges consistent with its stated policy if the institution 
48.22 	is dissolved, or if claims for refunds are made, to provide service to the students as promised, 
48.23 	and to provide educational programs leading to degrees as offered;
48.24 	(3) the school operates in conformity with generally accepted budgeting and accounting 
48.25 	principles according to the type of school;
48.26 	(4) the school provides an educational program leading to the degree it offers;
48.27 	(5) the school provides appropriate and accessible library, laboratory, and other physical 
48.28 	facilities to support the educational program offered;
48.29 	(6) the school has a policy on freedom or limitation of expression and inquiry for faculty 
48.30 	and students which is published or available on request;
48.31 	(7) the school uses only publications and advertisements which are truthful and do not 
48.32 	give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school, 
49.1 	its personnel, programs, services, or occupational opportunities for its graduates for promotion 
49.2 	and student recruitment;
49.3 	(8) the school's compensated recruiting agents who are operating in Minnesota identify 
49.4 	themselves as agents of the school when talking to or corresponding with students and 
49.5 	prospective students;
49.6 	(9) the school provides information to students and prospective students concerning:
49.7 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
49.8 	suspension, and dismissal;
49.9 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
49.10 	and experience and for courses offered by the school;
49.11 	(iii) current schedules of fees, charges for tuition, required supplies, student activities, 
49.12 	housing, and all other standard charges;
49.13 	(iv) policies regarding refunds and adjustments for withdrawal or modification of 
49.14 	enrollment status; and
49.15 	(v) procedures and standards used for selection of recipients and the terms of payment 
49.16 	and repayment for any financial aid program; and
49.17 	(10) the school must not withhold a student's official transcript because the student is 
49.18 	in arrears or in default on any loan issued by the school to the student if the loan qualifies 
49.19 	as an institutional loan under United States Code, title 11, section 523(a)(8)(b).
49.20 	(b) An application for degree approval must also include:
49.21 	(i) title of degree and formal recognition awarded;
49.22 	(ii) location where such degree will be offered;
49.23 	(iii) proposed implementation date of the degree;
49.24 	(iv) admissions requirements for the degree;
49.25 	(v) length of the degree;
49.26 	(vi) projected enrollment for a period of five years;
49.27 	(vii) the curriculum required for the degree, including course syllabi or outlines;
49.28 	(viii) statement of academic and administrative mechanisms planned for monitoring the 
49.29 	quality of the proposed degree;
49.30 	(ix) statement of satisfaction of professional licensure criteria, if applicable;
50.1 	(x) documentation of the availability of clinical, internship, externship, or practicum 
50.2 	sites, if applicable; and
50.3 	(xi) statement of how the degree fulfills the institution's mission and goals, complements 
50.4 	existing degrees, and contributes to the school's viability.

50.5 	Sec. 8. Minnesota Statutes 2016, section 136A.65, subdivision 7, is amended to read:
50.6 		Subd. 7.Conditional approval. (a) The office may grant a school a one-year conditional 
50.7 	approval for a degree or use of a term in its name for a period of less than one year if doing 
50.8 	so would be in the best interests of currently enrolled students or prospective students.
50.9 	Conditional approval of a degree or use of a term under this paragraph must not exceed a 
50.10 	period of three years.
50.11 	(b) The office may grant new schools may be granted and programs a one-year conditional 
50.12 	approval for degrees or names annually for a period not to exceed five yearsuse of a term 
50.13 	in its name to allow them the school the opportunity to apply for and receive accreditation 
50.14 	as required in subdivision 1a. Conditional approval of a school or program under this 
50.15 	paragraph must not exceed a period of five years. A new school or program granted 
50.16 	conditional approval may be allowed to continue as a registered institution in order to 
50.17 	complete an accreditation process upon terms and conditions the office determines.
50.18 	(c) The office may grant a registered school a one-year conditional approval for degrees 
50.19 	or use of a term in its name to allow the school the opportunity to apply for and receive 
50.20 	accreditation as required in subdivision 1a if the school's accrediting agency is no longer 
50.21 	recognized by the United States Department of Education for purposes of eligibility to 
50.22 	participate in Title IV federal financial aid programs. The office must not grant conditional 
50.23 	approvals under this paragraph to a school for a period of more than five years.
50.24 	(d) The office may grant a registered school a one-year conditional approval for degrees 
50.25 	or use of a term in its name to allow the school to change to a different accrediting agency 
50.26 	recognized by the United States Department of Education for purposes of eligibility to 
50.27 	participate in Title IV federal financial aid programs. The office must not grant conditional 
50.28 	approvals under this paragraph to a school for a period of more than five years.

50.29 	Sec. 9. Minnesota Statutes 2016, section 136A.653, is amended to read:
50.30 	136A.653 EXEMPTIONS.
50.31 		Subdivision 1.Application. A school that seeks an exemption under this section from 
50.32 	the provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the 
51.1 	school meets the requirements of an exemption. An exemption expires two years from the 
51.2 	date of approval or until a school adds a new program or makes a modification equal to or 
51.3 	greater than 25 percent to an existing educational program. If a school is reapplying for an 
51.4 	exemption, the application must be submitted to the office 90 days before the current 
51.5 	exemption expires.
51.6 		Subdivision 1. Subd. 1a.Exemption Private career schools. A school that is subject 
51.7 	to licensing by the office under sections 136A.82 to 136A.834 is exempt from the provisions 
51.8 	of sections 136A.61 to 136A.71. The determination of the office as to whether a particular 
51.9 	school is subject to regulation under sections 136A.82 to 136A.834 is final for the purposes 
51.10 	of this exemption.
51.11 		Subd. 2.Educational program; nonprofit organizations. Educational programs which 
51.12 	are sponsored by a bona fide and nonprofit trade, labor, business, professional or fraternal 
51.13 	organization, which programs are conducted solely for that organization's membership or 
51.14 	for the members of the particular industries or professions served by that organization, and 
51.15 	which are not available to the public on a fee basis, are exempted from the provisions of 
51.16 	sections 136A.61 to 136A.71.
51.17 		Subd. 3.Educational program; business firms. Educational programs which are 
51.18 	sponsored by a business firm for the training of its employees or the employees of other 
51.19 	business firms with which it has contracted to provide educational services at no cost to the 
51.20 	employees are exempted from the provisions of sections 136A.61 to 136A.71.
51.21 		Subd. 3a.Tuition-free educational courses. A school, including a school using an 
51.22 	online platform service, offering training, courses, or programs is exempt from sections 
51.23 	136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota. A 
51.24 	course will be considered tuition-free if the school charges no tuition and the required fees 
51.25 	and other required charges paid by the student for the course tuition, fees, and any other 
51.26 	charges for a student to participate do not exceed two percent of the most recent average 
51.27 	undergraduate tuition and required fees as of January 1 of the current year charged for 
51.28 	full-time students at all degree-granting institutions as published annually by the United 
51.29 	States Department of Education as of January 1 of each year. To qualify for an exemption, 
51.30 	a school or online platform service must prominently display a notice comparable to the 
51.31 	following: "IMPORTANT: Each educational institution makes its own decision regarding 
51.32 	whether to accept completed coursework for credit. Check with your university or college."
52.1 		Subd. 4.Voluntary submission. Any school or program exempted from the provisions 
52.2 	of sections 136A.61 to 136A.71 by the provisions of this section may voluntarily submit to 
52.3 	the provisions of those sections.

52.4 	Sec. 10. Minnesota Statutes 2016, section 136A.657, is amended by adding a subdivision 
52.5 	to read:
52.6 		Subd. 5.Application. A school that seeks an exemption under this section from the 
52.7 	provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the 
52.8 	school meets the requirements of an exemption. An exemption expires two years from the 
52.9 	date of approval or when a school adds a new program or makes a modification equal to or 
52.10 	greater than 25 percent to an existing educational program. If a school is reapplying for an 
52.11 	exemption, the application must be submitted to the office 90 days before the current 
52.12 	exemption expires.

52.13 	Sec. 11. Minnesota Statutes 2016, section 136A.67, is amended to read:
52.14 	136A.67 REGISTRATION REPRESENTATIONS.
52.15 	No school and none of its officials or employees shall advertise or represent in any 
52.16 	manner that such school is approved or accredited by the office or the state of Minnesota, 
52.17 	except a school which is duly registered with the office, or any of its officials or employees, 
52.18 	may represent in advertising and shall disclose in catalogues, applications, and enrollment 
52.19 	materials that the school is registered with the office by prominently displaying the following 
52.20 	statement: "(Name of school) is registered with the office Minnesota Office of Higher 
52.21 	Education pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of 
52.22 	the institution. Credits earned at the institution may not transfer to all other institutions." In 
52.23 	addition, all registered schools shall publish in the school catalog or student handbook the 
52.24 	name, street address, telephone number, and Web site address of the office.

52.25 	Sec. 12. [136A.672] STUDENT COMPLAINTS.
52.26 		Subdivision 1.Authority. The office has the authority to review and take appropriate 
52.27 	action on student complaints from schools covered under the provisions of sections 136A.61 
52.28 	to 136A.71.
52.29 		Subd. 2.Complaint. A complaint must be in writing, be signed by a student, and state 
52.30 	how the school's policies and procedures or sections 136A.61 to 136A.71 were violated. 
52.31 	Student complaints shall be limited to complaints that occurred within six years from the 
52.32 	date the concern should have been discovered with reasonable effort and after the student 
53.1 	has utilized the school's internal complaint process. Students do not have to utilize a school's 
53.2 	internal complaint process before the office has authority when the student is alleging fraud 
53.3 	or misrepresentation. The office shall not investigate grade disputes, student conduct 
53.4 	proceedings, disability accommodation requests, and discrimination claims, including Title 
53.5 	IX complaints.
53.6 		Subd. 3.Investigation. The office shall initiate an investigation upon receipt of a 
53.7 	complaint within the authority of subdivision 2. A school involved in an investigation shall 
53.8 	be informed of the alleged violations and the processes of the investigation. A school 
53.9 	involved in an investigation shall respond to the alleged violations and provide requested 
53.10 	documentation to the office. Upon completing an investigation, the office shall inform the 
53.11 	school and the student of the investigation outcome.
53.12 		Subd. 4.Penalties. If violations are found, the office may require remedial action by 
53.13 	the school or assign a penalty under section 136A.705. Remedial action may include student 
53.14 	notification of violations, adjustments to the school's policies and procedures, and tuition 
53.15 	or fee refunds to impacted students.
53.16 		Subd. 5.Contested case hearing. The school or the office may initiate a contested case 
53.17 	hearing under chapter 14 if attempts at a resolution are unsuccessful or within 30 days of 
53.18 	the date the school is notified of the action of the office. The prevailing party may recover 
53.19 	costs, disbursements, and reasonable attorney fees, as determined by the court or 
53.20 	administrative law judge.

53.21 	Sec. 13. Minnesota Statutes 2016, section 136A.68, is amended to read:
53.22 	136A.68 RECORDS.
53.23 	A registered school shall maintain a permanent record for each student for 50 years from 
53.24 	the last date of the student's attendance. A registered school offering distance instruction to 
53.25 	a student located in Minnesota shall maintain a permanent record for each Minnesota student 
53.26 	for 50 years from the last date of the student's attendance. Records include a student's 
53.27 	academic transcript, documents, and files containing student data about academic credits 
53.28 	earned, courses completed, grades awarded, degrees awarded, and periods of attendance. 
53.29 	To preserve permanent records, a school shall submit a plan that meets the following 
53.30 	requirements:
53.31 	(1) at least one copy of the records must be held in a secure, fireproof depository or 
53.32 	duplicate records must be maintained off site in a secure location and in a manner approved 
53.33 	by the office;
54.1 	(2) an appropriate official must be designated to provide a student with copies of records 
54.2 	or a transcript upon request;
54.3 	(3) an alternative method approved by the office of complying with clauses (1) and (2) 
54.4 	must be established if the school ceases to exist; and
54.5 	(4) if the school has no binding agreement approved by the office for preserving student 
54.6 	records, a continuous surety bond or an irrevocable letter of credit issued by a financial 
54.7 	institution must be filed with the office in an amount not to exceed $20,000. The bond or 
54.8 	irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure, 
54.9 	the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover, 
54.10 	maintain, digitize, and destroy academic records.

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

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

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

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

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

55.12 	Sec. 19. Minnesota Statutes 2016, section 136A.822, subdivision 4, is amended to read:
55.13 		Subd. 4.Application. Application for a license shall be on forms prepared and furnished 
55.14 	by the office, and shall include the following and other information as the office may require:
55.15 	(1) the title or name of the private career school, ownership and controlling officers, 
55.16 	members, managing employees, and director;
55.17 	(2) the specific programs which will be offered and the specific purposes of the 
55.18 	instruction;
55.19 	(3) the place or places where the instruction will be given;
55.20 	(4) a listing of the equipment available for instruction in each program;
55.21 	(5) the maximum enrollment to be accommodated with equipment available in each 
55.22 	specified program;
55.23 	(6) the qualifications of instructors and supervisors in each specified program;
55.24 	(7) financial documents related to the entity's and higher-level entity's most recently 
55.25 	completed fiscal year:
55.26 	(i) annual gross revenues from all sources;
55.27 	(ii) financial statements subjected to a review level engagement or, if requested by the 
55.28 	office, audited financial statements;
55.29 	(iii) a school's most recent compliance audit, if applicable; and
56.1 	(iv) a current balance sheet, income statement, and adequate supporting documentation, 
56.2 	prepared and certified by an independent public accountant or CPA;
56.3 	(8) copies of all media advertising and promotional literature and brochures or electronic 
56.4 	display currently used or reasonably expected to be used by the private career school;
56.5 	(9) copies of all Minnesota enrollment agreement forms and contract forms and all 
56.6 	enrollment agreement forms and contract forms used in Minnesota; and
56.7 	(10) gross income earned in the preceding year from student tuition, fees, and other 
56.8 	required institutional charges, unless the private career school files with the office a surety 
56.9 	bond equal to at least $250,000 as described in subdivision 6.

56.10 	Sec. 20. Minnesota Statutes 2016, section 136A.822, subdivision 6, is amended to read:
56.11 		Subd. 6.Bond. (a) No license shall be issued to any private career school which 
56.12 	maintains, conducts, solicits for, or advertises within the state of Minnesota any program, 
56.13 	unless the applicant files with the office a continuous corporate surety bond written by a 
56.14 	company authorized to do business in Minnesota conditioned upon the faithful performance 
56.15 	of all contracts and agreements with students made by the applicant.
56.16 	(b)(1) The amount of the surety bond shall be ten percent of the preceding year's gross
56.17 	net income from student tuition, fees, and other required institutional charges collected, but 
56.18 	in no event less than $10,000 nor greater than $250,000, except that a private career school 
56.19 	may deposit a greater amount at its own discretion. A private career school in each annual 
56.20 	application for licensure must compute the amount of the surety bond and verify that the 
56.21 	amount of the surety bond complies with this subdivision, unless the private career school 
56.22 	maintains a surety bond equal to at least $250,000. A private career school that operates at 
56.23 	two or more locations may combine gross net income from student tuition, fees, and other 
56.24 	required institutional charges collected for all locations for the purpose of determining the 
56.25 	annual surety bond requirement. The gross net tuition and fees used to determine the amount 
56.26 	of the surety bond required for a private career school having a license for the sole purpose 
56.27 	of recruiting students in Minnesota shall be only that paid to the private career school by 
56.28 	the students recruited from Minnesota.
56.29 	(2) A person required to obtain a private career school license due to the use of 
56.30 	"academy," "institute," "college," or "university" in its name and which is also licensed by 
56.31 	another state agency or board, except not including those schools licensed exclusively in 
56.32 	order to participate in state grants or SELF loan financial aid programs, shall be required 
56.33 	to provide a school bond of $10,000.
57.1 	(c) The bond shall run to the state of Minnesota and to any person who may have a cause 
57.2 	of action against the applicant arising at any time after the bond is filed and before it is 
57.3 	canceled for breach of any contract or agreement made by the applicant with any student. 
57.4 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
57.5 	exceed the principal sum deposited by the private career school under paragraph (b). The 
57.6 	surety of any bond may cancel it upon giving 60 days' notice in writing to the office and 
57.7 	shall be relieved of liability for any breach of condition occurring after the effective date 
57.8 	of cancellation.
57.9 	(d) In lieu of bond, the applicant may deposit with the commissioner of management 
57.10 	and budget a sum equal to the amount of the required surety bond in cash, an irrevocable 
57.11 	letter of credit issued by a financial institution equal to the amount of the required surety 
57.12 	bond, or securities as may be legally purchased by savings banks or for trust funds in an 
57.13 	aggregate market value equal to the amount of the required surety bond.
57.14 	(e) Failure of a private career school to post and maintain the required surety bond or 
57.15 	deposit under paragraph (d) shall may result in denial, suspension, or revocation of the 
57.16 	school's license.

57.17 	Sec. 21. Minnesota Statutes 2016, section 136A.822, subdivision 12, is amended to read:
57.18 		Subd. 12.Permanent records. A private career school licensed under sections 136A.82 
57.19 	to 136A.834 and located in Minnesota shall maintain a permanent record for each student 
57.20 	for 50 years from the last date of the student's attendance. A private career school licensed 
57.21 	under this chapter and offering distance instruction to a student located in Minnesota shall 
57.22 	maintain a permanent record for each Minnesota student for 50 years from the last date of 
57.23 	the student's attendance. Records include school transcripts, documents, and files containing 
57.24 	student data about academic credits earned, courses completed, grades awarded, degrees 
57.25 	awarded, and periods of attendance. To preserve permanent records, a private career school 
57.26 	shall submit a plan that meets the following requirements:
57.27 	(1) at least one copy of the records must be held in a secure, fireproof depository;
57.28 	(2) an appropriate official must be designated to provide a student with copies of records 
57.29 	or a transcript upon request;
57.30 	(3) an alternative method, approved by the office, of complying with clauses (1) and (2) 
57.31 	must be established if the private career school ceases to exist; and
57.32 	(4) a continuous surety bond or irrevocable letter of credit issued by a financial institution 
57.33 	must be filed with the office in an amount not to exceed $20,000 if the private career school 
58.1 	has no binding agreement approved by the office, for preserving student records. The bond 
58.2 	or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school 
58.3 	closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve, 
58.4 	recover, maintain, digitize, and destroy academic records.

58.5 	Sec. 22. Minnesota Statutes 2016, section 136A.822, subdivision 13, is amended to read:
58.6 		Subd. 13.Private career schools licensed by another state agency or board. A private 
58.7 	career school required to obtain a private career school license due to the use of "academy," 
58.8 	"institute," "college," or "university" in its name or licensed for the purpose of participating 
58.9 	in state financial aid under chapter 136A, and which is also licensed by another state agency 
58.10 	or board shall be required to satisfy only the requirements of subdivisions 4, clauses (1), 
58.11 	(2), (3), (5), (7), (8), and (10); 5; 6, paragraph (b), clause (2); 8, clauses (1), (4), (7), (8),
58.12 	and (9); 9; 10, clause (13); and 12. If a school is licensed to participate in state financial aid 
58.13 	under this chapter, the school must follow the refund policy in section 136A.827, even if 
58.14 	that section conflicts with the refund policy of the licensing agency or board. A distance 
58.15 	education private career school located in another state, or a school licensed to recruit 
58.16 	Minnesota residents for attendance at a school outside of this state, or a school licensed by 
58.17 	another state agency as its primary licensing body, may continue to use the school's name 
58.18 	as permitted by its home state or its primary licensing body.

58.19 	Sec. 23. Minnesota Statutes 2016, section 136A.826, subdivision 2, is amended to read:
58.20 		Subd. 2.Contract information. A contract or enrollment agreement used by a private 
58.21 	career school must include at least the following:
58.22 	(1) the name and address of the private career school, clearly stated;
58.23 	(2) a clear and conspicuous disclosure that the agreement is a legally binding instrument 
58.24 	upon written acceptance of the student by the private career school unless canceled under 
58.25 	section 136A.827;
58.26 	(3) the private career school's cancellation and refund policy that shall be clearly and 
58.27 	conspicuously entitled "Buyer's Right to Cancel";
58.28 	(4) a clear statement of total cost of the program including tuition and all other charges;
58.29 	(5) the name and description of the program, including the number of hours or credits 
58.30 	of classroom instruction, or distance instruction, that shall be included; and
58.31 	(6) a clear and conspicuous explanation of the form and means of notice the student 
58.32 	should use in the event the student elects to cancel the contract or sale, the effective date of 
59.1 	cancellation, and the name and address, e-mail address, or phone number of the seller to 
59.2 	which the notice should be sent or delivered.
59.3 	The contract or enrollment agreement must not include a wage assignment provision or a 
59.4 	confession of judgment clause.

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

59.18 	Sec. 25. Minnesota Statutes 2016, section 136A.827, subdivision 3, is amended to read:
59.19 		Subd. 3.Notice; amount. (a) A private career school shall refund all tuition, fees and 
59.20 	other charges paid by a student if the student gives written notice of cancellation within five 
59.21 	business days after the day on which the student is accepted by the private career school 
59.22 	regardless of whether the program has started.
59.23 	(b) When a student has been accepted by the private career school and gives written
59.24 	notice of cancellation following the fifth business day after the day of acceptance by the 
59.25 	private career school, but before the start of the program, in the case of resident private 
59.26 	career schools, or before the first lesson has been serviced by the private career school, in 
59.27 	the case of distance education private career schools, all tuition, fees and other charges, 
59.28 	except 15 percent of the total cost of the program but not to exceed $50, shall be refunded 
59.29 	to the student.

59.30 	Sec. 26. Minnesota Statutes 2016, section 136A.828, subdivision 3, is amended to read:
59.31 		Subd. 3.False statements. (a) A private career school, agent, or solicitor shall not make, 
59.32 	or cause to be made, any statement or representation, oral, written or visual, in connection 
60.1 	with the offering or publicizing of a program, if the private career school, agent, or solicitor 
60.2 	knows or reasonably should have known the statement or representation to be false, 
60.3 	fraudulent, deceptive, substantially inaccurate, or misleading.
60.4 	(b) Other than opinion-based statements or puffery, a school shall only make claims that 
60.5 	are evidence-based, can be validated, and are based on current conditions and not on 
60.6 	conditions that are no longer relevant.
60.7 	(c) A school shall not guarantee or imply the guarantee of employment.
60.8 	(d) A school shall not guarantee or advertise any certain wage or imply earnings greater 
60.9 	than the prevailing wage for entry-level wages in the field of study for the geographic area 
60.10 	unless advertised wages are based on verifiable wage information from graduates.
60.11 	(e) If placement statistics are used in advertising or other promotional materials, the 
60.12 	school must be able to substantiate the statistics with school records. These records must 
60.13 	be made available to the office upon request. A school is prohibited from reporting the 
60.14 	following in placement statistics:
60.15 	(1) a student required to receive a job offer or start a job to be classified as a graduate;
60.16 	(2) a graduate if the graduate held a position before enrolling in the program, unless 
60.17 	graduating enabled the graduate to maintain the position or the graduate received a promotion 
60.18 	or raise upon graduation;
60.19 	(3) a graduate who works less than 20 hours per week; and
60.20 	(4) a graduate who is not expected to maintain the position for at least 180 days.
60.21 	(f) A school shall not use endorsements, commendations, or recommendations by a 
60.22 	student in favor of a school except with the consent of the student and without any offer of 
60.23 	financial or other material compensation. Endorsements may be used only when they portray 
60.24 	current conditions.
60.25 	(g) A school may advertise that the school or its programs have been accredited by an 
60.26 	accrediting agency recognized by the United States Department of Education or the Council 
60.27 	for Higher Education Accreditation, but shall not advertise any other accreditation unless 
60.28 	approved by the office. The office may approve an institution's advertising of accreditation 
60.29 	that is not recognized by the United States Department of Education or the Council for 
60.30 	Higher Education if that accreditation is industry specific. Clear distinction must be made 
60.31 	when the school is in candidacy or application status versus full accreditation.
61.1 	(h) A school may advertise that financial aid is available, including a listing of the 
61.2 	financial aid programs in which the school participates, but federal or state financial aid 
61.3 	shall not be used as a primary incentive in advertisement, promotion, or recruitment.
61.4 	(i) A school may advertise placement or career assistance, if offered, but shall not use 
61.5 	the words "wanted," "help wanted," or "trainee," either in the headline or the body of the 
61.6 	advertisement.
61.7 	(j) A school shall not be advertised under any "help wanted," "employment," or similar 
61.8 	classification.
61.9 	(k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar 
61.10 	test.
61.11 	(l) The commissioner, at any time, may require a retraction of a false, misleading, or 
61.12 	deceptive claim. To the extent reasonable, the retraction must be published in the same 
61.13 	manner as the original claim.

61.14 	Sec. 27. [136A.8295] STUDENT COMPLAINTS.
61.15 		Subdivision 1.Authority. The office has the authority to review and take appropriate 
61.16 	action on student complaints from schools covered under the provisions of sections 136A.822 
61.17 	to 136A.834.
61.18 		Subd. 2.Complaint. A complaint must be in writing, be signed by a student, and state 
61.19 	how the school's policies and procedures or sections 136A.822 to 136A.834 were violated. 
61.20 	Student complaints shall be limited to complaints that occurred within six years from the 
61.21 	date the concern should have been discovered with reasonable effort and after the student 
61.22 	has utilized the school's internal complaint process. Students do not have to utilize a school's 
61.23 	internal complaint process before the office has authority when the student is alleging fraud 
61.24 	or misrepresentation. The office shall not investigate grade disputes, student conduct 
61.25 	proceedings, disability accommodation requests, and discrimination claims, including Title 
61.26 	IX complaints.
61.27 		Subd. 3.Investigation. The office shall initiate an investigation upon receipt of a 
61.28 	complaint within the authority of subdivision 2. A school involved in an investigation shall 
61.29 	be informed of the alleged violations and the processes of the investigation. A school 
61.30 	involved in an investigation shall respond to the alleged violations and provide requested 
61.31 	documentation to the office. Upon completion of an investigation, the office shall inform 
61.32 	the school and the student of the investigation outcome.
62.1 		Subd. 4.Penalties. If violations are found, the office may require remedial action by 
62.2 	the school or assign a penalty under section 136A.832. Remedial action may include student 
62.3 	notification of violations, adjustments to the school's policies and procedures, and tuition 
62.4 	or fee refunds to impacted students.

62.5 	Sec. 28. Minnesota Statutes 2016, section 136A.83, is amended to read:
62.6 	136A.83 INSPECTION.
62.7 	(a) The office or a delegate may inspect the instructional books and records, classrooms, 
62.8 	dormitories, tools, equipment and classes of any private career school or applicant for license 
62.9 	at any reasonable time. The office may require the submission of a certified public audit, 
62.10 	or if there is no such audit available audited financial statements. The office or a delegate 
62.11 	may inspect the financial books and records of the private career school. In no event shall 
62.12 	such financial information be used by the office to regulate or set the tuition or fees charged 
62.13 	by the private career school.
62.14 	(b) Data obtained from an inspection of the financial records of a private career school 
62.15 	or submitted to the office as part of a license application or renewal are nonpublic data as 
62.16 	defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed 
62.17 	to other members of the office, to law enforcement officials, or in connection with a legal 
62.18 	or administrative proceeding commenced to enforce a requirement of law.

62.19 	Sec. 29. Minnesota Statutes 2016, section 136A.833, is amended to read:
62.20 	136A.833 EXEMPTIONS.
62.21 		Subdivision 1.Application for exemptions. A school that seeks an exemption from the 
62.22 	provisions of sections 136A.822 to 136A.834 must apply to the office to establish that the 
62.23 	school meets the requirements of an exemption. An exemption expires two years from the 
62.24 	date of approval or when a school adds a new program or makes a modification equal to or 
62.25 	greater than 25 percent to an existing educational program. If a school is reapplying for an 
62.26 	exemption, the application must be submitted to the office 90 days before the current 
62.27 	exemption expires.
62.28 		Subd. 2.Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the 
62.29 	following:
62.30 	(1) public postsecondary institutions;
62.31 	(2) postsecondary institutions registered under sections 136A.61 to 136A.71;
63.1 	(3) private career schools of nursing accredited by the state Board of Nursing or an 
63.2 	equivalent public board of another state or foreign country;
63.3 	(4) private schools complying with the requirements of section 120A.22, subdivision 4;
63.4 	(5) courses taught to students in a valid apprenticeship program taught by or required 
63.5 	by a trade union;
63.6 	(6) private career schools exclusively engaged in training physically or mentally disabled 
63.7 	persons for the state of Minnesota;
63.8 	(7) private career schools licensed by boards authorized under Minnesota law to issue 
63.9 	licenses except private career schools required to obtain a private career school license due 
63.10 	to the use of "academy," "institute," "college," or "university" in their names;
63.11 	(8) private career schools and educational programs, or training programs, contracted 
63.12 	for by persons, firms, corporations, government agencies, or associations, for the training 
63.13 	of their own employees, for which no fee is charged the employee;
63.14 	(9) private career schools engaged exclusively in the teaching of purely avocational, 
63.15 	recreational, or remedial subjects as determined by the office except private career schools 
63.16 	required to obtain a private career school license due to the use of "academy," "institute," 
63.17 	"college," or "university" in their names unless the private career school used "academy" 
63.18 	or "institute" in its name prior to August 1, 2008;
63.19 	(10) classes, courses, or programs conducted by a bona fide trade, professional, or 
63.20 	fraternal organization, solely for that organization's membership;
63.21 	(11) programs in the fine arts provided by organizations exempt from taxation under 
63.22 	section 290.05 and registered with the attorney general under chapter 309. For the purposes 
63.23 	of this clause, "fine arts" means activities resulting in artistic creation or artistic performance 
63.24 	of works of the imagination which are engaged in for the primary purpose of creative 
63.25 	expression rather than commercial sale or employment. In making this determination the 
63.26 	office may seek the advice and recommendation of the Minnesota Board of the Arts;
63.27 	(12) classes, courses, or programs intended to fulfill the continuing education 
63.28 	requirements for licensure or certification in a profession, that have been approved by a 
63.29 	legislatively or judicially established board or agency responsible for regulating the practice 
63.30 	of the profession, and that are offered exclusively to an individual practicing the profession;
63.31 	(13) classes, courses, or programs intended to prepare students to sit for undergraduate, 
63.32 	graduate, postgraduate, or occupational licensing and occupational entrance examinations;
64.1 	(14) classes, courses, or programs providing 16 or fewer clock hours of instruction that 
64.2 	are not part of the curriculum for an occupation or entry level employment except private 
64.3 	career schools required to obtain a private career school license due to the use of "academy," 
64.4 	"institute," "college," or "university" in their names;
64.5 	(15) classes, courses, or programs providing instruction in personal development, 
64.6 	modeling, or acting;
64.7 	(16) training or instructional programs, in which one instructor teaches an individual 
64.8 	student, that are not part of the curriculum for an occupation or are not intended to prepare 
64.9 	a person for entry level employment;
64.10 	(17) private career schools with no physical presence in Minnesota, as determined by 
64.11 	the office, engaged exclusively in offering distance instruction that are located in and 
64.12 	regulated by other states or jurisdictions if the distance education instruction does not include 
64.13 	internships, externships, field placements, or clinical placements for residents of Minnesota; 
64.14 	and
64.15 	(18) private career schools providing exclusively training, instructional programs, or 
64.16 	courses where tuition, fees, and any other charges for a student to participate do not exceed 
64.17 	$100.

64.18 	Sec. 30. Minnesota Statutes 2016, section 136A.834, is amended by adding a subdivision 
64.19 	to read:
64.20 		Subd. 5.Application. A school that seeks an exemption from the provisions of sections 
64.21 	136A.82 to 136A.834 must apply to the office to establish that the school meets the 
64.22 	requirements of an exemption. An exemption expires two years from the date of approval 
64.23 	or when a school adds a new program or makes a modification equal to or greater than 25 
64.24 	percent to an existing educational program. If a school is reapplying for an exemption, the 
64.25 	application must be submitted to the office 90 days before the current exemption expires.

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

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