HF 2175

as introduced - 89th Legislature (2015 - 2016) Posted on 04/18/2016 04:36pm

A bill for an act
relating to education finance; creating and modifying certain financial assistance
and loan programs for teachers; requiring rulemaking; appropriating money;
amending Minnesota Statutes 2014, sections 119B.011, subdivision 15; 122A.63,
subdivisions 4, 5, 6; 136A.162; 256J.21, subdivision 2; 290.01, subdivision 19b;
proposing coding for new law in Minnesota Statutes, chapter 122A.

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

Section 1.

Minnesota Statutes 2014, section 119B.011, subdivision 15, is amended to
read:

Subd. 15.

Income.

"Income" means earned or unearned income received by all
family members, including public assistance cash benefits and at-home infant child
care subsidy payments, unless specifically excluded and child support and maintenance
distributed to the family under section 256.741, subdivision 15. The following are excluded
from income: funds used to pay for health insurance premiums for family members,
Supplemental Security Income, scholarships, work-study income, deleted text begin and deleted text end grants new text begin , and other
financial assistance, including loan forgiveness, new text end that cover costs or reimbursement for
tuition, fees, books, and educational supplies; student loans for tuition, fees, books,
supplies, and living expenses; state and federal earned income tax credits; assistance
specifically excluded as income by law; in-kind income such as food support, energy
assistance, foster care assistance, medical assistance, child care assistance, and housing
subsidies; earned income of full-time or part-time students up to the age of 19, who have not
earned a high school diploma or GED high school equivalency diploma including earnings
from summer employment; grant awards under the family subsidy program; nonrecurring
lump-sum income only to the extent that it is earmarked and used for the purpose for which
it is paid; and any income assigned to the public authority according to section 256.741.

Sec. 2.

Minnesota Statutes 2014, section 122A.63, subdivision 4, is amended to read:

Subd. 4.

Grant amount.

The commissioner may award a joint grant in the amount
it determines to be appropriate. The grant shall include money for the postsecondary
institution, school district, new text begin and new text end student scholarships deleted text begin , and student loans deleted text end . new text begin The commissioner
may reallocate any unspent funds to one or more of the four joint grant recipients
identified in subdivision 1.
new text end

Sec. 3.

Minnesota Statutes 2014, section 122A.63, subdivision 5, is amended to read:

Subd. 5.

Information to student applicants.

At the time a student applies for
a scholarship deleted text begin and loan deleted text end , the student shall be provided information about the fields of
licensure needed by school districts in the part of the state within which the district
receiving the joint grant is located. The information shall be acquired and periodically
updated by the recipients of the joint grant. Information provided to students shall clearly
state that scholarship deleted text begin and loan deleted text end decisions are not based upon the field of licensure selected
by the student.

Sec. 4.

Minnesota Statutes 2014, section 122A.63, subdivision 6, is amended to read:

Subd. 6.

Eligibility for scholarships deleted text begin and loans deleted text end .

The following new text begin American new text end Indian
people are eligible for scholarships:

(1) a student, including a teacher aide employed by a district receiving a joint grant,
who intends to become a teacher and who is enrolled in a postsecondary institution
receiving a joint grant;

(2) a licensed employee of a district receiving a joint grant, who is enrolled in a
master of education program; and

(3) a student who, after applying for federal and state financial aid and deleted text begin an deleted text end new text begin the
Minnesota new text end Indian scholarship according to section 136A.126, has deleted text begin financial needs that
remain deleted text end unmet deleted text begin . deleted text end financial need deleted text begin shall be determined according to the congressional
methodology for needs determination or as otherwise set in federal law deleted text end new text begin as defined by
section 136A.101 new text end .

deleted text begin A person who has actual living expenses in addition to those addressed by the
congressional methodology for needs determination, or as otherwise set in federal law,
may receive a loan according to criteria established by the commissioner. A contract shall
be executed between the state and the student for the amount and terms of the loan.
deleted text end

Sec. 5.

new text begin [122A.80] TEACHMN.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "High needs area" means a high needs area as defined in the Department of
Education biannual teacher supply and demand report under section 127A.05, subdivision
6, or other surveys conducted by the Department of Education that provide indicators for
teacher supply and demand needs not captured by the teacher supply and demand report.
new text end

new text begin (c) "High needs school" means a school that:
new text end

new text begin (1) is a focus or priority school under the multiple measurement rating;
new text end

new text begin (2) has a concentration of students above the state average for free and reduced-price
lunch; or
new text end

new text begin (3) is geographically isolated and experiencing a teacher shortage.
new text end

new text begin (d) "Qualified candidate" means a teacher candidate enrolled in a Minnesota teacher
licensure program who meets the program eligibility requirements in subdivision 3 and in
rules or procedures adopted under subdivision 7.
new text end

new text begin Subd. 2. new text end

new text begin Account. new text end

new text begin An account is created within the Office of Higher Education
to disburse fixed-rate forgivable loans to qualified candidates under this section. Unused
funds appropriated to the Department of Education and transferred to the Office of Higher
Eduction in a given fiscal year will be carried over for loans and program administrative
costs in future years. Principal and interest payments on unforgiven loans shall be credited
to the account and shall be carried over and do not cancel and may be used for administrative
program costs not covered by the appropriated amount and for issuing new loans.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin A candidate may apply to the commissioner of the Office of
Higher Education to receive a forgivable loan under this section. The commissioner must
award loans to candidates enrolling in programs in high needs areas and to candidates
expressing interest in teaching in high needs schools based on shortages and geographical
distribution, and must take into consideration diversifying the teacher workforce. The
application must include a letter of support or character reference from a professional
supervisor or colleague or academic professor who is not related to the applicant.
new text end

new text begin Subd. 4. new text end

new text begin Loan requirements. new text end

new text begin Interest accrues both during and after a borrower's
postsecondary enrollment and is capitalized at the time of repayment. At the time of
receiving the loan, a candidate must commit to seeking a qualified position in a Minnesota
school district for four years upon completion of teacher preparation as a full-time teacher
as verified through the Staff Automated Reporting (STAR) system. Candidates who do not
complete the four-year service commitment may be required to repay the loan.
new text end

new text begin Subd. 5. new text end

new text begin Usage. new text end

new text begin The loan may only be used for tuition and related living and
miscellaneous expenses required to complete teacher preparation and attain licensure.
new text end

new text begin Subd. 6. new text end

new text begin Forgiveness and repayment. new text end

new text begin (a) If a borrower's eligibility for the loan
is based on the candidate's enrollment in a program in a high needs area, the borrower's
student loan payment shall be deferred if the candidate completed the program and obtains
a full-time position in that discipline. Upon completing four years of teaching in that
discipline, the loan obligation shall be forgiven in the full amount of principal plus accrued
interest. Except as allowed under paragraph (c), a student borrower has up to five years
from graduation or school termination to fulfill the teaching obligation.
new text end

new text begin (b) If a borrower's eligibility for the loan is based on the candidate's employment in
a high needs school, the borrower's student loan payment shall be deferred if the candidate
obtains a full-time position in a high needs school at the time of hire. Upon completing
four years of teaching at that school or another high needs school at the time of hire, the
loan obligation shall be forgiven in the full amount of principal plus accrued interest.
Except as allowed under paragraph (c), a student borrower has up to five years from
graduation or school termination to fulfill the teaching obligation.
new text end

new text begin (c) An appeals process shall be established for special circumstances, such as a
temporary medical leave of absence or layoff, which may allow the qualifying term to be
extended.
new text end

new text begin (d) For loans not in deferral under paragraph (a) or (b), loan payments are deferred
for up to 12 months or until the borrower obtains employment in a nonqualified position,
whichever is first. At that time, monthly loan payments will be required from the borrower
until the loan is paid in full or the loan is deferred under paragraph (a) or (b).
new text end

new text begin Subd. 7. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of education shall adopt rules or
procedures, in consultation with the Office of Higher Education, to implement this section,
including:
new text end

new text begin (1) additional eligibility and renewal criteria;
new text end

new text begin (2) annual and lifetime maximum awards per student;
new text end

new text begin (3) how the loan funds will be disbursed;
new text end

new text begin (4) the interest rate for the loans;
new text end

new text begin (5) service fulfillment and repayment criteria; and
new text end

new text begin (6) an appeals process consistent with subdivision 6.
new text end

Sec. 6.

new text begin [122A.81] STEPPING UP FOR KIDS; FINANCIAL ASSISTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "High needs area" means a high needs area as defined in the Department of
Education biannual teacher supply and demand report under section 127A.05, subdivision
6, or other surveys conducted by the Department of Education that provide indicators for
teacher supply and demand needs not captured by the teacher supply and demand report.
new text end

new text begin (c) "High needs school" means a school that:
new text end

new text begin (1) is a focus or priority school under the multiple measurement rating;
new text end

new text begin (2) has a concentration of students above the state average for free and reduced-price
lunch; or
new text end

new text begin (3) is geographically isolated and experiencing a teacher shortage.
new text end

new text begin (d) "Qualified candidate" means a paraprofessional currently employed in a
Minnesota school who has been admitted to a Minnesota teacher licensure program and
meets the program eligibility requirements in subdivision 3 and in rules adopted under
subdivision 5.
new text end

new text begin Subd. 2. new text end

new text begin Account. new text end

new text begin An account is created within the Office of Higher Education
to disburse financial assistance for paraprofessionals when enrolled in a program in
Minnesota leading to teacher licensure. Unused funds appropriated to the Department of
Education in a given fiscal year shall be transferred to the Office of Higher Education and
carried over for stepping up for kids financial assistance and program and administrative
costs in future years.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) A qualified candidate may apply to the commissioner of
the Office of Higher Education to receive financial assistance under this section. The
commissioner of the Office of Higher Education shall award financial assistance in high
needs areas and high needs schools based on shortages, geographical distribution, or other
surveys conducted by the Department of Education and must take into consideration
diversifying the teacher workforce. The application must include a letter of support from
the school district administrator where the paraprofessional is employed.
new text end

new text begin (b) Candidates must commit to remain employed in a Minnesota school district for
four years upon completion of teacher preparation as verified through the Staff Automated
Reporting (STAR) system. Candidates who do not complete the four-year service
commitment may be required to repay the financial assistance.
new text end

new text begin Subd. 4. new text end

new text begin Usage. new text end

new text begin The financial assistance may only be used for tuition and related
living and miscellaneous expenses required to complete teacher preparation and attain
licensure.
new text end

new text begin Subd. 5. new text end

new text begin Rulemaking. new text end

new text begin The commissioner of education shall adopt rules or
procedures, in consultation with the Office of Higher Education, to implement this section,
including:
new text end

new text begin (1) additional eligibility and renewal criteria;
new text end

new text begin (2) annual and lifetime maximum awards per student; and
new text end

new text begin (3) service fulfillment and repayment criteria.
new text end

Sec. 7.

Minnesota Statutes 2014, section 136A.162, is amended to read:

136A.162 CLASSIFICATION OF DATA.

(a) Except as provided in paragraphs (b) and (c), data on applicants for financial
assistance collected and used by the office for student financial aid programs administered
by that office new text begin , including the programs under sections 122A.80 and 122A.81, new text end are private
data on individuals as defined in section 13.02, subdivision 12.

(b) Data on applicants may be disclosed to the commissioner of human services to the
extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5).

(c) The following data collected in the Minnesota supplemental loan program under
section 136A.1701 may be disclosed to a consumer credit reporting agency only if the
borrower and the cosigner give informed consent, according to section 13.05, subdivision
4, at the time of application for a loan:

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

(8) the number of late payments in previous 12 months;

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 8.

Minnesota Statutes 2014, section 256J.21, subdivision 2, is amended to read:

Subd. 2.

Income exclusions.

The following must be excluded in determining a
family's available income:

(1) payments for basic care, difficulty of care, and clothing allowances received for
providing family foster care to children or adults under Minnesota Rules, parts 9555.5050
to 9555.6265, 9560.0521, and 9560.0650 to 9560.0655, payments for family foster care
for children under section 260C.4411 or chapter 256N, and payments received and used
for care and maintenance of a third-party beneficiary who is not a household member;

(2) reimbursements for employment training received through the Workforce
Investment Act of 1998, United States Code, title 20, chapter 73, section 9201;

(3) reimbursement for out-of-pocket expenses incurred while performing volunteer
services, jury duty, employment, or informal carpooling arrangements directly related to
employment;

(4) all educational assistance, new text begin including loan forgiveness, new text end except the county agency
must count graduate student teaching assistantships, fellowships, and other similar paid
work as earned income and, after allowing deductions for any unmet and necessary
educational expenses, shall count scholarships or grants awarded to graduate students that
do not require teaching or research as unearned income;

(5) loans, regardless of purpose, from public or private lending institutions,
governmental lending institutions, or governmental agencies;

(6) loans from private individuals, regardless of purpose, provided an applicant or
participant documents that the lender expects repayment;

(7)(i) state income tax refunds; and

(ii) federal income tax refunds;

(8)(i) federal earned income credits;

(ii) Minnesota working family credits;

(iii) state homeowners and renters credits under chapter 290A; and

(iv) federal or state tax rebates;

(9) funds received for reimbursement, replacement, or rebate of personal or real
property when these payments are made by public agencies, awarded by a court, solicited
through public appeal, or made as a grant by a federal agency, state or local government,
or disaster assistance organizations, subsequent to a presidential declaration of disaster;

(10) the portion of an insurance settlement that is used to pay medical, funeral, and
burial expenses, or to repair or replace insured property;

(11) reimbursements for medical expenses that cannot be paid by medical assistance;

(12) payments by a vocational rehabilitation program administered by the state
under chapter 268A, except those payments that are for current living expenses;

(13) in-kind income, including any payments directly made by a third party to a
provider of goods and services;

(14) assistance payments to correct underpayments, but only for the month in which
the payment is received;

(15) payments for short-term emergency needs under section 256J.626, subdivision 2;

(16) funeral and cemetery payments as provided by section 256.935;

(17) nonrecurring cash gifts of $30 or less, not exceeding $30 per participant in
a calendar month;

(18) any form of energy assistance payment made through Public Law 97-35,
Low-Income Home Energy Assistance Act of 1981, payments made directly to energy
providers by other public and private agencies, and any form of credit or rebate payment
issued by energy providers;

(19) Supplemental Security Income (SSI), including retroactive SSI payments and
other income of an SSI recipient, except as described in section 256J.37, subdivision 3b;

(20) Minnesota supplemental aid, including retroactive payments;

(21) proceeds from the sale of real or personal property;

(22) adoption or kinship assistance payments under chapter 256N or 259A;

(23) state-funded family subsidy program payments made under section 252.32 to
help families care for children with developmental disabilities, consumer support grant
funds under section 256.476, and resources and services for a disabled household member
under one of the home and community-based waiver services programs under chapter 256B;

(24) interest payments and dividends from property that is not excluded from and
that does not exceed the asset limit;

(25) rent rebates;

(26) income earned by a minor caregiver, minor child through age 6, or a minor
child who is at least a half-time student in an approved elementary or secondary education
program;

(27) income earned by a caregiver under age 20 who is at least a half-time student in
an approved elementary or secondary education program;

(28) MFIP child care payments under section 119B.05;

(29) all other payments made through MFIP to support a caregiver's pursuit of
greater economic stability;

(30) income a participant receives related to shared living expenses;

(31) reverse mortgages;

(32) benefits provided by the Child Nutrition Act of 1966, United States Code, title
42, chapter 13A, sections 1771 to 1790;

(33) benefits provided by the women, infants, and children (WIC) nutrition program,
United States Code, title 42, chapter 13A, section 1786;

(34) benefits from the National School Lunch Act, United States Code, title 42,
chapter 13, sections 1751 to 1769e;

(35) relocation assistance for displaced persons under the Uniform Relocation
Assistance and Real Property Acquisition Policies Act of 1970, United States Code, title
42, chapter 61, subchapter II, section 4636, or the National Housing Act, United States
Code, title 12, chapter 13, sections 1701 to 1750jj;

(36) benefits from the Trade Act of 1974, United States Code, title 19, chapter
12, part 2, sections 2271 to 2322;

(37) war reparations payments to Japanese Americans and Aleuts under United
States Code, title 50, sections 1989 to 1989d;

(38) payments to veterans or their dependents as a result of legal settlements
regarding Agent Orange or other chemical exposure under Public Law 101-239, section
10405, paragraph (a)(2)(E);

(39) income that is otherwise specifically excluded from MFIP consideration in
federal law, state law, or federal regulation;

(40) security and utility deposit refunds;

(41) American Indian tribal land settlements excluded under Public Laws 98-123,
98-124, and 99-377 to the Mississippi Band Chippewa Indians of White Earth, Leech
Lake, and Mille Lacs reservations and payments to members of the White Earth Band,
under United States Code, title 25, chapter 9, section 331, and chapter 16, section 1407;

(42) all income of the minor parent's parents and stepparents when determining the
grant for the minor parent in households that include a minor parent living with parents or
stepparents on MFIP with other children;

(43) income of the minor parent's parents and stepparents equal to 200 percent of the
federal poverty guideline for a family size not including the minor parent and the minor
parent's child in households that include a minor parent living with parents or stepparents
not on MFIP when determining the grant for the minor parent. The remainder of income is
deemed as specified in section 256J.37, subdivision 1b;

(44) payments made to children eligible for relative custody assistance under section
257.85;

(45) vendor payments for goods and services made on behalf of a client unless the
client has the option of receiving the payment in cash;

(46) the principal portion of a contract for deed payment;

(47) cash payments to individuals enrolled for full-time service as a volunteer under
AmeriCorps programs including AmeriCorps VISTA, AmeriCorps State, AmeriCorps
National, and AmeriCorps NCCC; and

(48) housing assistance grants under section 256J.35, paragraph (a).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2014.
new text end

Sec. 9.

Minnesota Statutes 2014, section 290.01, subdivision 19b, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. No
deduction is permitted for any expense the taxpayer incurred in using the taxpayer's or
the qualifying child's vehicle to provide such transportation for a qualifying child. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code,
under the provisions of Public Law 109-1 and Public Law 111-126;

(7) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(8) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (12), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
delayed depreciation. For purposes of this clause, "delayed depreciation" means the amount
of the addition made by the taxpayer under subdivision 19a, clause (7), or subdivision 19c,
clause (12), in the case of a shareholder of an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. The resulting delayed depreciation cannot be less than zero;

(9) job opportunity building zone income as provided under section 469.316;

(10) to the extent included in federal taxable income, the amount of compensation
paid to members of the Minnesota National Guard or other reserve components of the
United States military for active service, including compensation for services performed
under the Active Guard Reserve (AGR) program. For purposes of this clause, "active
service" means (i) state active service as defined in section 190.05, subdivision 5a, clause
(1); or (ii) federally funded state active service as defined in section 190.05, subdivision
5b, and "active service" includes service performed in accordance with section 190.08,
subdivision 3;

(11) to the extent included in federal taxable income, the amount of compensation
paid to Minnesota residents who are members of the armed forces of the United States
or United Nations for active duty performed under United States Code, title 10; or the
authority of the United Nations;

(12) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(13) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (13), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (13), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(14) to the extent included in the federal taxable income of a nonresident of
Minnesota, compensation paid to a service member as defined in United States Code, title
10, section 101(a)(5), for military service as defined in the Servicemembers Civil Relief
Act, Public Law 108-189, section 101(2);

(15) to the extent included in federal taxable income, the amount of national service
educational awards received from the National Service Trust under United States Code,
title 42, sections 12601 to 12604, for service in an approved Americorps National Service
program;

(16) to the extent included in federal taxable income, discharge of indebtedness
income resulting from reacquisition of business indebtedness included in federal taxable
income under section 108(i) of the Internal Revenue Code. This subtraction applies only
to the extent that the income was included in net income in a prior year as a result of the
addition under subdivision 19a, clause (13);

(17) the amount of the net operating loss allowed under section 290.095, subdivision
11, paragraph (c);

(18) the amount of expenses not allowed for federal income tax purposes due
to claiming the railroad track maintenance credit under section 45G(a) of the Internal
Revenue Code;

(19) the amount of the limitation on itemized deductions under section 68(b) of the
Internal Revenue Code;

(20) the amount of the phaseout of personal exemptions under section 151(d) of
the Internal Revenue Code; deleted text begin and
deleted text end

(21) to the extent included in federal taxable income, the amount of qualified
transportation fringe benefits described in section 132(f)(1)(A) and (B) of the Internal
Revenue Code. The subtraction is limited to the lesser of the amount of qualified
transportation fringe benefits received in excess of the limitations under section
132(f)(2)(A) of the Internal Revenue Code for the year or the difference between the
maximum qualified parking benefits excludable under section 132(f)(2)(B) of the Internal
Revenue Code minus the amount of transit benefits excludable under section 132(f)(2)(A)
of the Internal Revenue Code new text begin ;
new text end

new text begin (22) to the extent included in federal taxable income, the amount of any loan
forgiveness under section 122A.80 for the TeachMN program; and
new text end

new text begin (23) to the extent included in federal taxable income, the amount of any financial
assistance paid under section 122A.81 for the stepping up for kids program new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2014.
new text end

Sec. 10. new text begin RULEMAKING AUTHORITY.
new text end

new text begin (a) The Board of Teaching shall adopt rules for a process for approving certificates
of advanced professional study. A certificate of advanced professional study is a credential
available only to a teacher with a full license in at least one discipline that allows for
teaching without further waiver or variance when a licensure program in the discipline
does not exist or when a teacher with a full license in the discipline cannot be found. The
certificate of advanced professional study must:
new text end

new text begin (1) have fewer requirements than the full license in the discipline;
new text end

new text begin (2) set the specific qualifications required to attain it; and
new text end

new text begin (3) maintain professional standards for teaching in that discipline.
new text end

new text begin (b) The rules adopted under paragraph (a) must limit certificates of advanced
professional study to:
new text end

new text begin (1) disciplines in which at least one geographic area of the state has a demonstrated
shortage of fully licensed teachers; and
new text end

new text begin (2) emerging disciplines where full licenses or licensure programs do not exist.
new text end

Sec. 11. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department. new text end

new text begin The sums indicated in this section are appropriated
from the general fund to the Department of Education for the fiscal years designated.
new text end

new text begin Subd. 2. new text end

new text begin American Indian teacher preparation grants. new text end

new text begin For joint grants to assist
American Indian people to become teachers under Minnesota Statutes, section 122A.63:
new text end

	new text begin $ new text end	new text begin 280,000 new text end	new text begin ..... new text end	new text begin 2016 new text end
	new text begin $ new text end	new text begin 280,000 new text end	new text begin ..... new text end	new text begin 2017 new text end

new text begin Subd. 3. new text end

new text begin TeachMN. new text end

new text begin For the TeachMN account under Minnesota Statutes, section
122A.80, subdivision 2:
new text end

	new text begin $ new text end	new text begin 10,000,000 new text end	new text begin ..... new text end	new text begin 2016 new text end
	new text begin $ new text end	new text begin 10,000,000 new text end	new text begin ..... new text end	new text begin 2017 new text end

new text begin Up to six percent of the amount each year may be used for administrative costs of
the Department of Education and the Office of Higher Education for administering the
TeachMN loan program.
new text end

new text begin $9,827,000 in fiscal year 2016 and $9,867,000 in fiscal year 2017 are for a transfer
to the Office of Higher Education for loan disbursement and administrative costs.
new text end

new text begin Unused funds appropriated to the Department of Education and transferred to the
Office of Higher Education in a given fiscal year are carried over for the TeachMN loan
program and program and administrative costs in future years.
new text end

new text begin Subd. 4. new text end

new text begin Stepping up for kids. new text end

new text begin For a transfer to the Office of Higher Education for
the stepping up for kids financial assistance account under Minnesota Statutes, section
122A.81, subdivision 2:
new text end

	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2016 new text end
	new text begin $ new text end	new text begin 2,000,000 new text end	new text begin ..... new text end	new text begin 2017 new text end

new text begin Up to six percent of the amount each year may be used for administrative costs of
the Office of Higher Education to administer the stepping up for kids financial assistance
program.
new text end

new text begin Unused funds appropriated to the Department of Education and transferred to the
Office of Higher Education in a given fiscal year are carried over for stepping up for kids
financial assistance and program and administrative costs in future years.
new text end

new text begin Subd. 5. new text end

new text begin Board of Teaching rulemaking. new text end

new text begin To the Board of Teaching for rulemaking
required under section 10:
new text end

new text begin $ new text end

new text begin 302,000 new text end

new text begin ..... new text end

new text begin 2016 new text end

new text begin Any balance in the first year does not cancel but is available in the second year.
new text end

new text begin Subd. 6. new text end

new text begin Information technology support. new text end

new text begin For information technology support
necessary for tracking certificates issued under the rules adopted in section 10:
new text end

new text begin $ new text end

new text begin 50,000 new text end

new text begin ..... new text end

new text begin 2017 new text end

new text begin The base appropriation in fiscal year 2018 and later is $50,000.
new text end