HF 1041

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/25/2021 07:36pm

A bill for an act
relating to higher education; strengthening the Increase Teachers of Color Act in
higher education; creating a new scholarship program for aspiring teachers of
color; modifying provisions for student teacher grants and teacher shortage loan
forgiveness; requiring a report; appropriating money; amending Minnesota Statutes
2020, sections 136A.1275; 136A.1791; proposing coding for new law in Minnesota
Statutes, chapter 136A; repealing Minnesota Rules, parts 4830.9100; 4830.9110;
4830.9120; 4830.9130, subparts 2, 3.

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

Section 1.

new text begin [136A.1274] ASPIRING MINNESOTA TEACHERS OF COLOR
SCHOLARSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Scholarship program established. new text end

new text begin The commissioner must establish a
scholarship program to support undergraduate and graduate students who are preparing to
become teachers, have demonstrated financial need, and belong to racial or ethnic groups
underrepresented in the state's teacher workforce.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible for a scholarship under this section, an applicant
must:
new text end

new text begin (1) be admitted and enrolled in a teacher preparation program approved by the
Professional Educator Licensing and Standards Board and be seeking initial licensure, or
be enrolled in an eligible institution under section 136A.103 and be completing a two-year
program specifically designed to prepare early childhood educators;
new text end

new text begin (2) affirm to the teacher preparation program or the Office of Higher Education that the
applicant is a person of color or American Indian;
new text end

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

new text begin (4) demonstrate financial need based on criteria developed by the commissioner.
new text end

new text begin (b) An eligible applicant may receive a scholarship award more than once, but may
receive a total of no more than $25,000 in scholarship awards from the program.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship award amount. new text end

new text begin (a) The commissioner shall establish the
scholarship award amount based upon the anticipated number of eligible applicants and the
funds available for the program. The established award amount is subject to the requirements
of paragraphs (b) through (e) of this subdivision. If the funds available for the program are
insufficient to make full awards to all eligible applicants, the commissioner must reduce
the established scholarship award amount.
new text end

new text begin (b) The maximum award amount is $10,000 per year for full-time study prior to student
teaching. For undergraduate students, full-time study means enrollment in a minimum of
12 or more credits per term. For graduate students, full-time study means enrollment that
the institution deems sufficient to confer full-time graduate student status.
new text end

new text begin (c) If an eligible applicant is enrolled in a program for one term during the academic
year, the maximum award amount is $5,000. If an eligible applicant is enrolled part time,
the award amount must be prorated on a per-credit basis.
new text end

new text begin (d) Subject to the funds available for the program, and subject to the limitation in
paragraph (e), the minimum award amount established under this section for full-time study
must be no less than $1,000 per year.
new text end

new text begin (e) An eligible applicant's individual award amount must not exceed the applicant's cost
of attendance after deducting: (1) the sum of all state or federal grants and gift aid received,
including a Pell Grant and state grant; (2) the sum of all institutional grants, scholarships,
tuition waivers, and tuition remission amounts; and (3) the amount of any private grants or
scholarships.
new text end

new text begin (f) Established award amounts are not rulemaking for purposes of chapter 14 or section
14.386.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must establish an application process
for individual students and institutions on behalf of all eligible students at the institution
and other guidelines for implementing the scholarship program.
new text end

new text begin (b) The commissioner must give equal consideration to all eligible applicants regardless
of the order the application was received before the application deadline.
new text end

new text begin (c) A scholarship award must be paid to the eligible applicant's teacher preparation
institution on behalf of the eligible applicant. Awards may be paid only when the institution
has confirmed to the commissioner the applicant's name, racial or ethnic identity, gender,
licensure area sought, and enrollment status.
new text end

new text begin Subd. 5. new text end

new text begin Creation of account. new text end

new text begin An aspiring teachers of color scholarship account is
established in the special revenue fund. Money in the account is appropriated to the
commissioner to fund scholarships to student teachers belonging to a racial or ethnic group
underrepresented in the teacher workforce. Appropriations from the account do not cancel
and are available until expended.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By July 15 of each year, the commissioner must submit an interim
report on the scholarship program based on available data to the legislative committees with
jurisdiction over higher education finance and policy. By December 15 of each year, the
commissioner must submit a full report on the details of the scholarship program for the
previous fiscal year to the legislative committees with jurisdiction over higher education
finance and policy. The reports must also be made available on the Office of Higher
Education's website. The reports must include the following information:
new text end

new text begin (1) the balance of the aspiring teachers of color scholarship account in the special revenue
fund;
new text end

new text begin (2) the number of applicants and the number of award recipients, each broken down by
postsecondary institution with ten or more recipients;
new text end

new text begin (3) the total number of awards, the total dollar amount of all awards, and the average
award amount; and
new text end

new text begin (4) summary data on the racial or ethnic identity, gender, licensure area sought, and
enrollment status of all applicants and award recipients.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, and initial scholarships
must be awarded by November 1, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 136A.1275, is amended to read:

136A.1275 new text begin STUDENT new text end TEACHER deleted text begin CANDIDATE deleted text end GRANTS.

Subdivision 1.

Establishment.

deleted text begin (a) deleted text end The commissioner of the Office of Higher Education
must establish a grant program for student teaching stipends for low-income students enrolled
in a Professional Educator Licensing and Standards Board-approved teacher preparation
program who deleted text begin intend to teach deleted text end new text begin are student teaching new text end in a new text begin licensure new text end shortage area deleted text begin after graduating
and receiving their teaching license deleted text end or belong to deleted text begin an underrepresented deleted text end new text begin a new text end racial or ethnic group new text begin
underrepresented in the teacher workforce new text end .

deleted text begin (b) "Shortage area" means a license field or economic development region within
Minnesota defined as a shortage area by the Professional Educator Licensing and Standards
Board in coordination with the commissioner using data collected for the teacher supply
and demand report under section 122A.091, subdivision 5.
deleted text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the following terms have the
meanings given.
new text end

new text begin (b) "Economic development region" means an area so designated in the governor's
executive order number 83-15, dated March 15, 1983.
new text end

new text begin (c) "Licensure shortage area" means a licensure field within an economic development
region experiencing a shortage of Tier 3 or Tier 4 licensed teachers as determined by the
Professional Educator Licensing and Standards Board using data collected for the teacher
supply and demand report under section 122A.091, subdivision 5, and the tiered license
and special permission report in accordance with Minnesota Rules, part 8710.0310, subpart
8. The severity of a licensure shortage area is determined by the percentage of teachers
working in a licensure field not holding a Tier 3 or Tier 4 license in that field where there
are at least ten teachers in the economic development region working within that licensure
field.
new text end

new text begin (d) "Permanent residence" means:
new text end

new text begin (1) the address listed on the student teacher's most recent Free Application for Federal
Student Aid (FAFSA) or state financial aid application; or
new text end

new text begin (2) the economic development region in which the student teacher graduated from high
school.
new text end

Subd. 2.

Eligibility.

new text begin (a) new text end To be eligible for a grant under this section, a new text begin student new text end teacher
deleted text begin candidate deleted text end must:

new text begin (1) meet all of the following criteria:
new text end

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

deleted text begin (2) deleted text end new text begin (ii) new text end demonstrate financial need based on criteria established by the commissioner
under subdivision 3; new text begin and
new text end

deleted text begin (3) deleted text end new text begin (iii) new text end be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10; and

new text begin (2) meet one of the following criteria:
new text end

deleted text begin (4) intend to teach in a shortage area deleted text end new text begin (i) be student teaching in one of the ten most severe
licensure shortage areas in the economic development region where either the student
teacher's student teaching site or permanent residence is located in the year the student
teacher receives a grant; new text end or

deleted text begin belong to a racial or ethnic group underrepresented in the Minnesota teacher workforce.
Intent can be documented based on the teacher license field the student is pursuing or a
statement of intent to teach in an economic development region defined as a shortage area
in the year the student receives a grant deleted text end new text begin (ii) affirm to the teacher preparation program or the
Office of Higher Education that the applicant is a person of color or American Indian new text end .

new text begin (b) A student teacher may be eligible under the criteria in paragraph (a), clause (2), item
(ii), so long as the aggregate percentage of teachers of color and American Indian teachers
in the state, as determined by the Professional Educator Licensing and Standards Board, is
lower than the aggregate percentage of kindergarten through grade 12 students of color and
kindergarten through grade 12 American Indian students in the state, as determined by the
commissioner of education under section 120B.35, subdivision 3. Only individuals who
close the gap between these percentages are eligible under this criteria.
new text end

Subd. 3.

Administration deleted text begin ; repayment deleted text end .

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

new text begin (1) for fall student teaching placements, recipients must be notified by August 1;
new text end

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

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

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

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

deleted text begin (c) The percentage of the total award funds available at the beginning of the fiscal year
reserved for teacher candidates who identify as belonging to a racial or ethnic group
underrepresented in the deleted text end deleted text begin Minnesota teacher workforce must be equal to or greater than the
total percentage of students of racial or ethnic groups underrepresented in the Minnesota
teacher workforce as measured under section 120B.35, subdivision 3. If this percentage
cannot be met because of a lack of qualifying candidates, the remaining amount may be
awarded to teacher candidates who intend to teach in a shortage area.
deleted text end

new text begin (c) The amount reserved under this paragraph seeks to improve all students' access to
effective and diverse teachers under sections 120B.11 and 124D.861. So long as the aggregate
percentage of teachers of color and American Indian teachers in the state, as determined by
the Professional Educator Licensing and Standards Board, is lower than the aggregate
percentage of kindergarten through grade 12 students of color and kindergarten through
grade 12 American Indian students in the state, as determined by the commissioner of
education under section 120B.35, subdivision 3, the commissioner must reserve a percentage
of the grant program's unrestricted appropriation for those student teachers eligible for a
grant under the criteria in subdivision 2, paragraph (a), clause (2), item (ii). The percentage
reserved under this paragraph must be equal to or greater than the aggregate percentage of
kindergarten through grade 12 students of color and kindergarten through grade 12 American
Indian students in the state, as determined by the commissioner of education under section
120B.35, subdivision 3. If the reserved amount cannot be fully spent because of a lack of
qualifying applicants, the remaining amount must be transferred to the student teacher grant
program reserve account established in subdivision 4. If the reserved amount is insufficient
to make full awards to all qualifying applicants, the commissioner shall use funds available
in the student teacher grant program reserve account to increase grant awards up to the full
award amount or evenly across applicants, based on the available funds in the account.
new text end

new text begin (d) The commissioner must give equal consideration to all applicants regardless of the
order the application was received before the application deadline. If the funds available
for this program are insufficient to make full awards to eligible applicants, the commissioner
must give priority for awarding grants to eligible applicants pursuing the most severe
licensure shortage areas in their respective economic development regions.
new text end

new text begin Subd. 4. new text end

new text begin Creation of account. new text end

new text begin A student teacher grant program reserve account is
established in the special revenue fund. Money in the account is appropriated to the
commissioner to fund grants to student teachers eligible for a grant under the criteria in
subdivision 2, paragraph (a), clause (2), item (ii). Appropriations from the account do not
cancel and are available until expended.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

new text begin (a) By July 15 of each year, the commissioner must submit a report
on the details of the program under this section for the previous fiscal year to the legislative
committees with jurisdiction over higher education finance and policy. The report must
include the following information:
new text end

new text begin (1) the balance of the student teacher grant program reserve account in the special revenue
fund;
new text end

new text begin (2) the licensure shortage areas giving rise to award eligibility, organized by economic
development region;
new text end

new text begin (3) the extent of racial or ethnic underrepresentation in the teacher workforce statewide
and broken down by economic development region; and
new text end

new text begin (4) separately for each eligibility criteria under subdivision 2, paragraph (a), clause (2):
new text end

new text begin (i) the number of eligible applicants and the number of student teachers receiving an
award, each broken down by postsecondary institution; and
new text end

new text begin (ii) the total number of awards, the total dollar amount of all awards, and the average
award amount.
new text end

new text begin (b) Within 60 days after each round of award notifications required under subdivision
3, paragraph (a), the commissioner must publish on the Office of Higher Education's website
an interim report with data on the most recent round of grant awards. The report must include
the same information required to be included in the report under paragraph (a).
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, except that the commissioner
may delay notification to student teachers receiving grants for the fall 2021 term until August
15, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 136A.1791, is amended to read:

136A.1791 TEACHER SHORTAGE LOAN FORGIVENESS PROGRAM.

Subdivision 1.

Definitions.

(a) The terms used in this section have the meanings given
them in this subdivision.

(b) "Qualified educational loan" means a government, commercial, or foundation loan
for actual costs paid for tuition and reasonable educational and living expenses related to a
teacher's preparation or further education.

(c) "School district" means an independent school district, special school district,
intermediate district, education district, special education cooperative, service cooperative,
a cooperative center for vocational education, or a charter school located in Minnesota.

(d) "Teacher" means deleted text begin an individual holding a teaching license issued by deleted text end new text begin :
new text end

new text begin (1) a classroom teacher or other similar professional employee required by law to hold
a license or permission from new text end the Professional Educator Licensing and Standards Board who
is employed by a school district deleted text begin to provide classroom instruction. deleted text end new text begin ; or
new text end

new text begin (2) a Head Start or Early Head Start nonlicensed early childhood professional employed
by a Head Start program under section 119A.50.
new text end

(e) deleted text begin "Teacher shortage area" means: deleted text end new text begin "Licensure shortage area" has the meaning given in
section 136A.1275.
new text end

deleted text begin (1) the licensure fields and economic development regions reported by the Professional
Educator Licensing and Standards Board in coordination with the commissioner as
experiencing a teacher shortage; and
deleted text end

deleted text begin (2) economic development regions where there is a shortage of licensed teachers who
reflect the racial or ethnic diversity of students in the region as reported by the Professional
Educator Licensing and Standards Board in coordination with the commissioner.
deleted text end

(f) "Commissioner" means the commissioner of the Office of Higher Education unless
indicated otherwise.

new text begin (g) "Economic development region" means an area so designated in the governor's
executive order number 83-15, dated March 15, 1983.
new text end

Subd. 2.

Program established; administration.

new text begin (a) new text end The commissioner deleted text begin shall deleted text end new text begin must new text end
establish and administer a teacher shortage loan forgiveness program. deleted text begin A teacher is eligible
for the program if the teacher is teaching in an identified teacher shortage area under
subdivision 3 and complies with the requirements of this section.
deleted text end

new text begin (b) The commissioner must give equal consideration to all applicants regardless of the
order the application was received before the application deadline. If the amount appropriated
for this program is insufficient to make full awards to eligible applicants, the commissioner
must give priority for awarding loan forgiveness to: first, applicants with the greatest financial
need considering the applicant's income, household size, and total qualified educational
loan; and, second, applicants teaching in the most severe licensure shortage areas in the
economic development region where they teach.
new text end

new text begin (c) The commissioner must ensure an equitable distribution of student loan repayment
funds to teachers across all economic development regions using a method determined by
the commissioner. Funds reserved under paragraph (d) must be allocated separately.
new text end

new text begin (d) The amount reserved under this paragraph seeks to improve all students' access to
effective and diverse teachers under sections 120B.11 and 124D.861. So long as the aggregate
percentage of teachers of color and American Indian teachers in the state, as determined by
the Professional Educator Licensing and Standards Board, is lower than the aggregate
percentage of kindergarten through grade 12 students of color and kindergarten through
grade 12 American Indian students in the state, as determined by the commissioner of
education under section 120B.35, subdivision 3, the commissioner must reserve a percentage
of the loan forgiveness program's available funds for those teachers eligible for loan
forgiveness under the criteria in subdivision 4, paragraph (b), clause (2). The percentage
reserved under this paragraph must be equal to or greater than the aggregate percentage of
kindergarten through grade 12 students of color and kindergarten through grade 12 American
Indian students in the state, as determined by the commissioner of education under section
120B.35, subdivision 3.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Report on teacher shortage areas. deleted text end

deleted text begin Using data collected for the teacher supply
and demand report to the legislature under section 122A.091, subdivision 5, the Professional
Educator Licensing and Standards Board shall identify the licensure fields and economic
development regions in Minnesota experiencing a teacher shortage.
deleted text end

Subd. 4.

Application for loan forgiveness new text begin ; eligibility new text end .

new text begin (a) new text end Each applicant for loan
forgiveness deleted text begin , according to rules adopted by the commissioner, shall deleted text end new text begin must new text end :

(1) apply for teacher shortage loan forgiveness and promptly submit any additional
information required by the commissioner; and

(2) submit to the commissioner a completed affidavit, prescribed by the commissioner,
affirming the teacher is deleted text begin teaching in: (i) a licensure field identified by the commissioner as
experiencing a teacher shortage; or (ii) an economic development region identified by the
commissioner as experiencing a teacher shortage deleted text end new text begin eligible for loan forgiveness new text end .

new text begin (b) To be eligible for loan forgiveness under this section, a teacher must have taught in
Minnesota for at least one complete school year and:
new text end

new text begin (1) be currently teaching in one of the ten most severe licensure shortage areas in the
teacher's economic development region; or
new text end

new text begin (2) be currently teaching in Minnesota and self-identify to the commissioner as a person
of color or American Indian.
new text end

new text begin (c) A teacher may be eligible under the criteria in paragraph (b), clause (2), so long as
the aggregate percentage of teachers of color and American Indian teachers in the state, as
determined by the Professional Educator Licensing and Standards Board, is lower than the
aggregate percentage of kindergarten through grade 12 students of color and kindergarten
through grade 12 American Indian students in the state, as determined by the commissioner
of education under section 120B.35, subdivision 3. Only individuals who close the gap
between these percentages are eligible under this criteria.
new text end

Subd. 5.

Amount of loan forgiveness.

(a) To the extent funding is available, the annual
amount of teacher shortage loan forgiveness for an approved applicant deleted text begin shall deleted text end new text begin must new text end not exceed
deleted text begin $1,000 deleted text end new text begin $2,000 new text end or the cumulative balance of the applicant's qualified educational loans,
including principal and interest, whichever amount is less.

(b) Recipients must secure their own qualified educational loans. Teachers who graduate
from an approved teacher preparation program or teachers who add a licensure field,
consistent with the teacher shortage requirements of this section, are eligible to apply for
the loan forgiveness program.

(c) No teacher deleted text begin shall deleted text end new text begin may new text end receive more than deleted text begin five deleted text end new text begin ten new text end annual awards.

new text begin (d) Notwithstanding paragraph (a), an approved applicant who meets both eligibility
criteria under subdivision 4, paragraph (b), clauses (1) and (2), may receive an annual amount
of up to $3,000 or the cumulative balance of the applicant's qualified educational loans,
including principal and interest, whichever amount is less.
new text end

Subd. 6.

Disbursement.

(a) The commissioner must make annual disbursements directly
to the participant of the amount for which a participant is eligible, for each year that a
participant is eligible.

(b) Within 60 days of the disbursement date, the participant must provide the
commissioner with verification that the full amount of loan repayment disbursement has
been applied toward the designated loans. A participant that previously received funds under
this section but has not provided the commissioner with such verification is not eligible to
receive additional funds.

Subd. 7.

Penalties.

(a) A teacher who submits a false or misleading application or other
false or misleading information to the commissioner may:

(1) have his or her teaching license suspended or revoked under section 122A.20;

(2) be disciplined by the teacher's employing school district; or

(3) be required by the commissioner to repay the total amount of the loan forgiveness
he or she received under this program, plus interest at a rate established under section
270C.40.

(b) The commissioner must deposit any repayments received under paragraph (a) in the
fund established in subdivision 8.

Subd. 8.

Account established.

A teacher shortage loan forgiveness repayment account
is created in the special revenue fund for depositing money appropriated to or received by
the commissioner for the program. Money deposited in the account is appropriated to the
commissioner, does not cancel, and is continuously available for loan forgiveness under
this section.

Subd. 9.

Annual reporting.

By February 1 of each year, the commissioner must report
to the chairs of the kindergarten through grade 12 and higher education committees of the
legislature on new text begin :
new text end

new text begin (1) the balance of the teacher shortage loan forgiveness repayment account in the special
revenue fund;
new text end

new text begin (2) the amounts of funds allocated among the economic development regions;
new text end

new text begin (3) new text end the number of new text begin eligible new text end individuals who new text begin applied for loan forgiveness and the number
of individuals who new text end received loan forgiveness under this section deleted text begin , deleted text end new text begin and the basis for their
eligibility;
new text end

new text begin (4) new text end the race or ethnicity of the teachers participating in the program deleted text begin , deleted text end new text begin ;
new text end

new text begin (5) new text end the licensure new text begin shortage new text end areas and economic development regions in which the teachers
taught deleted text begin , deleted text end new text begin ;
new text end

new text begin (6) for recipients, the total amount of the all qualified education loan debts stated, the
average amount of qualified loan debt, and the range in amount of loan debt stated;
new text end

new text begin (7) new text end the average amount paid to a teacher participating in the program deleted text begin , deleted text end new text begin ; new text end and

new text begin (8) new text end other summary data identified by the commissioner as outcome indicators.

deleted text begin Subd. 10. deleted text end

deleted text begin Rulemaking. deleted text end

deleted text begin The commissioner shall adopt rules under chapter 14 to
administer this section.
deleted text end

Sec. 4. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Aspiring teachers of color scholarships. new text end

new text begin (a) $10,150,000 in fiscal year
2022 and $16,150,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of the Office of Higher Education for transfer to the aspiring teachers of color
account in the special revenue fund under Minnesota Statutes, section 136A.1274, subdivision
4.
new text end

new text begin (b) The commissioner of the Office of Higher Education may use no more than $150,000
of the appropriation amount in this subdivision to administer the program.
new text end

new text begin (c) The base appropriation for fiscal year 2024 and later is $16,150,000.
new text end

new text begin Subd. 2. new text end

new text begin Student teacher grants. new text end

new text begin (a) $2,318,000 in fiscal year 2022 and $3,100,000 in
fiscal year 2023 are appropriated from the general fund to the commissioner of the Office
of Higher Education for student teacher grants under Minnesota Statutes, section 136A.1275.
new text end

new text begin (b) In each fiscal year, $500,000 of the appropriation must be allocated according to the
formula in Minnesota Statutes, section 136A.1275, subdivision 3, paragraph (c).
new text end

new text begin (c) In addition to any amount reserved under paragraph (b), $1,818,000 of the
appropriation for fiscal year 2022 and $2,600,000 of the appropriation for fiscal year 2023
are reserved for student teachers eligible for a grant under the criteria established in
Minnesota Statutes, section 136A.1275, subdivision 2, paragraph (a), clause (2), item (ii).
If these amounts cannot be fully spent because of a lack of qualifying applicants, any
remainder must be transferred to the student teacher grant program reserve account in the
special revenue fund established under Minnesota Statutes, section 136A.1275, subdivision
4.
new text end

new text begin (d) The commissioner of the Office of Higher Education may use no more than $100,000
of the appropriation amount in this subdivision to administer the program.
new text end

new text begin Subd. 3. new text end

new text begin Teacher shortage loan forgiveness program. new text end

new text begin (a) $2,000,000 in fiscal year
2022 and $2,000,000 in fiscal year 2023 are appropriated from the general fund to the
commissioner of the Office of Higher Education for transfer to the teacher shortage loan
forgiveness repayment account in the special revenue fund under Minnesota Statutes, section
136A.1791, subdivision 8.
new text end

new text begin (b) The commissioner may use no more than three percent of the amount transferred
under this subdivision to administer the program.
new text end

new text begin (c) The base appropriation for fiscal year 2024 and later is $5,000,000.
new text end

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Rules, parts 4830.9100; 4830.9110; 4830.9120; and 4830.9130, subparts 2
and 3, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Rule: 21-02119

4830.9100 SCOPE.

Parts 4830.9110 to 4830.9130 govern the teacher shortage loan forgiveness program.

4830.9110 DEFINITIONS.

Subpart 1.

Scope.

For the purposes of parts 4830.9120 and 4830.9130, the terms defined in this part or in Minnesota Statutes, section 136A.1791, have the meanings given them.

Subp. 2.

Employed.

"Employed" means an individual currently providing classroom instruction.

Subp. 3.

Qualified educational loan.

"Qualified educational loan" means a loan, as defined in Minnesota Statutes, section 136A.1791, subdivision 1, that is not one of the following:

A.

PLUS loans made under the Federal Family Education Loan (FFEL) program or Federal Direct Loan programs to parents of dependent undergraduate students;

B.

Federal Consolidation Loans or Federal Direct Consolidation Loans that repaid a parent PLUS loan; or

C.

federal, state, commercial, or foundation loans that are in default.

Subp. 4.

Teacher shortage area.

"Teacher shortage area" means a licensure field, economic development region, or other shortage area identified by the Minnesota Department of Education. The commissioner of education shall provide an annual notice to the office identifying teacher shortage areas using the data collected for the report required under Minnesota Statutes, section 127A.05, subdivision 6.

4830.9120 ELIGIBLE PARTICIPANTS.

To be an eligible participant, an individual must:

A.

hold a teaching license issued by the licensing division in the Minnesota Department of Education on behalf of the Professional Educator Licensing and Standards Board;

B.

be employed by a school district, as defined in Minnesota Statutes, section 136A.1791, subdivision 1, paragraph (c), to provide classroom instruction in a teacher shortage area;

C.

not have received five annual awards from this program;

D.

provide a completed application;

E.

have outstanding qualified educational loan debt;

F.

not submit false or misleading information on any application to this program; and

G.

provide verification of the application of previously awarded funds toward eligible qualified educational loans, if the applicant has previously received an award.

4830.9130 APPLICATION AND DISBURSEMENT OF FUNDS.

Subp. 2.

Award amount.

The amount of an eligible participant's annual award shall not exceed $1,000 or the cumulative balance of the applicant's qualified educational loans, including principal and interest, whichever amount is less.

Subp. 3.

Funds availability.

If there are insufficient funds to provide an award to all eligible participants, the commissioner shall not prorate each award. The commissioner shall prioritize the awards to eligible participants based on:

A.

the financial need of an applicant, considering the applicant's income, household size, and total qualified educational loan;

B.

previous awards to the applicant from the teacher shortage loan forgiveness program;

C.

whether the applicant is employed in an economic development region that is a teacher shortage area;

D.

whether the applicant is employed in a teacher shortage area within the applicant's economic development region;

E.

whether the applicant is employed in a statewide teacher shortage area; and

F.

the statewide distribution of funds.