HF 2431

as introduced - 94th Legislature (2025 - 2026) Posted on 03/17/2025 02:59pm

A bill for an act
relating to higher education; providing funding and policy-related changes for the
Office of Higher Education, Minnesota State Colleges and Universities, the
University of Minnesota, and the Mayo Clinic; modifying certain scholarship and
student aid programs; creating and modifying grant programs to higher education
institutions; providing authority to the Office of Higher Education for treatment
of certain appropriations; providing for certain policy changes to student financial
aid, institution eligibility, institutional licensure provisions, student loan programs,
and institutional grant programs; requiring reports; appropriating money; amending
Minnesota Statutes 2024, sections 135A.137; 136A.01, by adding a subdivision;
136A.101, subdivision 5a; 136A.103; 136A.121, subdivisions 5, 6, 7, 13;
136A.1465, subdivisions 1, 2, by adding a subdivision; 136A.155; 136A.162;
136A.1701, subdivision 4; 136A.1796; 136A.658; 136A.69, subdivision 1;
136A.82; 136A.821, subdivisions 4, 5, by adding subdivisions; 136A.822,
subdivisions 3, 6, 8, 13; 136A.824, subdivisions 1, 2, 6, 7; 136A.833; 136A.834,
subdivisions 1, 5; repealing Minnesota Statutes 2024, sections 136A.69,
subdivisions 3, 5; 136A.824, subdivisions 3, 5.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin OFFICE OF HIGHER EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 370,206,000 new text end

new text begin $ new text end

new text begin 370,425,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin State Grants new text end

new text begin 232,566,000 new text end

new text begin 232,566,000 new text end

new text begin (a) If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin (b) The base for this appropriation is $....... for
fiscal year 2028 and later.
new text end

new text begin Subd. 3. new text end new text begin Child Care Grants new text end

new text begin 6,694,000 new text end

new text begin 6,694,000 new text end

new text begin Subd. 4. new text end new text begin State Work-Study new text end

new text begin 14,502,000 new text end

new text begin 14,502,000 new text end

new text begin Subd. 5. new text end new text begin Interstate Tuition Reciprocity new text end

new text begin 8,500,000 new text end

new text begin 8,500,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.
new text end

new text begin Subd. 6. new text end new text begin Safety Officer's Survivors new text end

new text begin 100,000 new text end

new text begin 100,000 new text end

new text begin This appropriation is to provide educational
benefits under Minnesota Statutes, section
299A.45, to eligible dependent children and
to the spouses of public safety officers killed
in the line of duty.
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 7. new text end new text begin Indian Scholarships new text end

new text begin 3,500,000 new text end

new text begin 3,500,000 new text end

new text begin The commissioner must contract with or
employ at least one person with demonstrated
competence in American Indian culture and
residing in or near the city of Bemidji to assist
students with the scholarships under
Minnesota Statutes, section 136A.126, and
with other information about financial aid for
which the students may be eligible. This
appropriation includes funding to administer
the American Indian scholarship program.
new text end

new text begin Subd. 8. new text end new text begin Tribal College Supplemental Assistance Grants new text end

new text begin 3,150,000 new text end

new text begin 3,150,000 new text end

new text begin (a) For Tribal college assistance grants under
Minnesota Statutes, section 136A.1796.
new text end

new text begin (b) A Tribal college must use grant funds
received under this section to supplement, not
supplant, any existing funding. Each eligible
Tribal college may receive a minimum grant
in an amount no less than $1,000,000 and no
more than $1,050,000, subject to available
appropriations.
new text end

new text begin (c) The commissioner may use no more than
three percent of this appropriation to
administer the program grants.
new text end

new text begin Subd. 9. new text end new text begin Intervention for College Attendance Program Grants new text end

new text begin 1,142,000 new text end

new text begin 1,142,000 new text end

new text begin For the intervention for college attendance
program under Minnesota Statutes, section
136A.861.
new text end

new text begin The commissioner may use no more than three
percent of this appropriation to administer the
program grants.
new text end

new text begin Subd. 10. new text end new text begin Student-Parent Information new text end

new text begin 122,000 new text end

new text begin 122,000 new text end

new text begin Subd. 11. new text end new text begin Get Ready! new text end

new text begin 180,000 new text end

new text begin 180,000 new text end

new text begin Subd. 12. new text end new text begin Minnesota Education Equity Partnership new text end

new text begin 45,000 new text end

new text begin 45,000 new text end

new text begin Subd. 13. new text end new text begin Midwest Higher Education Compact new text end

new text begin 115,000 new text end

new text begin 115,000 new text end

new text begin Subd. 14. new text end new text begin United Family Medicine Residency Program new text end

new text begin 501,000 new text end

new text begin 501,000 new text end

new text begin For a grant to United Family Medicine
residency program. This appropriation shall
be used to support up to 21 resident physicians
each year in family practice at United Family
Medicine residency programs and shall
prepare doctors to practice family care
medicine in underserved rural and urban areas
of the state. It is intended that this program
will improve health care in underserved
communities, provide affordable access to
appropriate medical care, and manage the
treatment of patients in a cost-effective
manner.
new text end

new text begin Subd. 15. new text end new text begin MnLINK Gateway and Minitex new text end

new text begin 6,655,000 new text end

new text begin 6,708,000 new text end

new text begin Subd. 16. new text end new text begin Statewide Longitudinal Education Data System new text end

new text begin 2,550,000 new text end

new text begin 2,550,000 new text end

new text begin Subd. 17. new text end new text begin Hennepin Healthcare new text end

new text begin 645,000 new text end

new text begin 645,000 new text end

new text begin For a grant to Hennepin Healthcare for
graduate family medical education programs
at Hennepin Healthcare.
new text end

new text begin Subd. 18. new text end new text begin Spinal Cord Injury and Traumatic Brain Injury Research Grant Program new text end

new text begin 3,000,000 new text end

new text begin 3,000,000 new text end

new text begin For transfer to the spinal cord and traumatic
brain injury grant account in the special
revenue fund under Minnesota Statutes,
section 136A.901, subdivision 1.
new text end

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

new text begin Subd. 19. new text end new text begin Summer Academic Enrichment Program new text end

new text begin 250,000 new text end

new text begin 250,000 new text end

new text begin For summer academic enrichment grants under
Minnesota Statutes, section 136A.091.
new text end

new text begin The commissioner may use no more than three
percent of this appropriation to administer the
grant program.
new text end

new text begin Subd. 20. new text end new text begin Dual Training Competency Grants; Office of Higher Education new text end

new text begin 4,132,000 new text end

new text begin 4,132,000 new text end

new text begin (a) For transfer to the dual training account in
the special revenue fund under Minnesota
Statutes, section 136A.246, subdivision 10.
$132,000 each year is for transfer to the
Department of Labor and Industry.
new text end

new text begin (b) $1,000,000 in fiscal year 2026 and
$1,000,000 in fiscal year 2027 are for grants
to employers in the legal cannabis industry.
The base for this transfer is $1,000,000 in
fiscal year 2028 and each fiscal year thereafter.
The commissioner may use up to six percent
of the amount transferred for administrative
costs. The commissioner must give priority to
applications from employers who are, or who
are training employees who are, eligible to be
social equity applicants under Minnesota
Statutes, section 342.17. After June 30, 2027,
any unencumbered balance from this transfer
may be used for grants to any eligible
employer under Minnesota Statutes, section
136A.246.
new text end

new text begin Subd. 21. new text end new text begin Campus Sexual Assault Reporting new text end

new text begin 25,000 new text end

new text begin 25,000 new text end

new text begin For the sexual assault reporting required under
Minnesota Statutes, section 135A.15.
new text end

new text begin Subd. 22. new text end new text begin Campus Sexual Violence Prevention and Response Coordinator new text end

new text begin 150,000 new text end

new text begin 150,000 new text end

new text begin For the Office of Higher Education to staff a
campus sexual violence prevention and
response coordinator to serve as a statewide
resource providing professional development
and guidance on best practices for
postsecondary institutions. $50,000 each year
is for administrative funding to conduct
trainings and provide materials to
postsecondary institutions.
new text end

new text begin Subd. 23. new text end new text begin Emergency Assistance for Postsecondary Students new text end

new text begin 3,579,000 new text end

new text begin 3,579,000 new text end

new text begin (a) $2,250,000 in fiscal year 2026 and
$2,250,000 in fiscal year 2027 are for transfer
to the Minnesota State Colleges and
Universities for emergency assistance for
postsecondary students.
new text end

new text begin (b) $779,000 in fiscal year 2026 and $779,000
in fiscal year 2027 are for transfer to the
University of Minnesota for emergency
assistance for postsecondary students.
new text end

new text begin (c) $500,000 the first year and $500,000 the
second year are for the Office of Higher
Education to allocate emergency grant funds
to Minnesota Tribal Colleges and eligible
nonprofit institutions as defined under
Minnesota Statutes, section 136A.103, located
in Minnesota with a demonstrable homeless
student population. The Office of Higher
Education shall develop a plan to distribute
funds to institutions and provide guidance as
to how grants are disbursed to students. The
commissioner shall determine the application
process and the grant amounts. $50,000 per
year may be used by the commissioner for the
administrative costs associated with this
subdivision.
new text end

new text begin (d) The funds must be used for emergency
grants to students to meet immediate student
needs that could result in a student not
completing the term or their program,
including but not limited to emergency
housing, food, and transportation. Institutions
shall minimize any negative impact on student
financial aid resulting from the receipt of
emergency funds.
new text end

new text begin (e) The commissioner must not distribute the
funds under this subdivision until the Office
of Higher Education has worked with the
institutions and approved their plans for the
distribution of the grants to students and the
method of their reporting requirements.
new text end

new text begin (f) At the end of each biennium, institutions
must return any unused funds to the Office of
Higher Education.
new text end

new text begin Subd. 24. new text end new text begin Grants to Student Teachers in Shortage Areas new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin For grants to student teachers in shortage areas
under Minnesota Statutes, section 136A.1275.
new text end

new text begin The commissioner may use no more than three
percent of the appropriation to administer the
program.
new text end

new text begin Subd. 25. new text end new text begin Grants to Underrepresented Student Teachers new text end

new text begin 1,125,000 new text end

new text begin 1,125,000 new text end

new text begin For grants to underrepresented student teachers
under Minnesota Statutes, section 136A.1274.
new text end

new text begin The commissioner may use no more than three
percent of the appropriation to administer the
program.
new text end

new text begin Subd. 26. new text end new text begin Teacher Shortage Loan Repayment new text end

new text begin 200,000 new text end

new text begin 200,000 new text end

new text begin For transfer to the teacher shortage loan
repayment account in the special revenue fund
under Minnesota Statutes, section 136A.1791,
subdivision 8.
new text end

new text begin 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 Subd. 27. new text end new text begin Large Animal Veterinarian Loan Forgiveness Program new text end

new text begin 375,000 new text end

new text begin 375,000 new text end

new text begin For transfer to the large animal veterinarian
loan forgiveness program account in the
special revenue fund under Minnesota
Statutes, section 136A.1795, subdivision 2.
new text end

new text begin Subd. 28. new text end new text begin Agricultural Educators Loan Forgiveness new text end

new text begin 50,000 new text end

new text begin 50,000 new text end

new text begin For transfer to the agricultural education loan
forgiveness account in the special revenue
fund under Minnesota Statutes, section
136A.1794, subdivision 2.
new text end

new text begin Subd. 29. new text end new text begin Aviation Degree Loan Forgiveness Program new text end

new text begin 25,000 new text end

new text begin 25,000 new text end

new text begin For transfer to the aviation degree loan
forgiveness program account in the special
revenue fund under Minnesota Statutes,
section 136A.1789, subdivision 2.
new text end

new text begin Subd. 30. new text end new text begin Grants for Students with Intellectual and Developmental Disabilities new text end

new text begin 200,000 new text end

new text begin 200,000 new text end

new text begin For grants for students with intellectual and
developmental disabilities under Minnesota
Statutes, section 136A.1215.
new text end

new text begin Subd. 31. new text end new text begin Loan Repayment Assistance Program new text end

new text begin 55,000 new text end

new text begin 55,000 new text end

new text begin For a grant to the Loan Repayment Assistance
Program of Minnesota to provide education
debt relief to attorneys with full-time
employment providing legal advice or
representation to low-income clients or support
services for this work.
new text end

new text begin Subd. 32. new text end new text begin Student Loan Debt Counseling new text end

new text begin 200,000 new text end

new text begin 200,000 new text end

new text begin For student loan debt counseling under
Minnesota Statutes, section 136A.1788.
new text end

new text begin The Office of Higher Education may use no
more than three percent of the appropriation
to administer the program.
new text end

new text begin Subd. 33. new text end new text begin Hunger-Free Campus Grants new text end

new text begin 1,000,000 new text end

new text begin 1,000,000 new text end

new text begin For the Hunger-Free Campus program under
Minnesota Statutes, section 135A.137.
new text end

new text begin Subd. 34. new text end new text begin Fostering Independence Higher Education Grants new text end

new text begin 4,416,000 new text end

new text begin 4,416,000 new text end

new text begin For grants to eligible students under Minnesota
Statutes, section 136A.1241. The Office of
Higher Education may use no more than three
percent of the appropriation to administer
grants.
new text end

new text begin Subd. 35. new text end new text begin Concurrent Enrollment Grants new text end

new text begin 340,000 new text end

new text begin 340,000 new text end

new text begin For concurrent enrollment grants under
Minnesota Statutes, section 136A.91.
new text end

new text begin Subd. 36. new text end new text begin Student-Parent Support Initiative new text end

new text begin 3,000,000 new text end

new text begin 3,000,000 new text end

new text begin For grants to support student parents under
Minnesota Statutes, section 136A.1251. Of
this amount, up to $338,000 each year is for
administrative and promotional costs.
new text end

new text begin Subd. 37. new text end new text begin Director of Tribal Relations new text end

new text begin 143,000 new text end

new text begin 143,000 new text end

new text begin Subd. 38. new text end new text begin Direct Admissions Program new text end

new text begin 650,000 new text end

new text begin 650,000 new text end

new text begin For the direct admissions program under
Minnesota Statutes, section 136A.84.
new text end

new text begin Subd. 39. new text end new text begin American Indian Scholars new text end

new text begin 8,500,000 new text end

new text begin 8,500,000 new text end

new text begin (a) To support implementation of Minnesota
Statutes, section 135A.121.
new text end

new text begin (b) $4,032,000 in fiscal year 2026 and
$4,032,000 in fiscal year 2027 are for transfer
to the Board of Regents of the University of
Minnesota.
new text end

new text begin (c) $4,468,000 in fiscal year 2026 and
$4,468,000 in fiscal year 2027 are for transfer
to the Board of Trustees of the Minnesota
State Colleges and Universities.
new text end

new text begin Subd. 40. new text end new text begin Inclusive Higher Education new text end

new text begin 1,000,000 new text end

new text begin 1,000,000 new text end

new text begin (a) $250,000 the first year and $250,000 the
second year are to enter into a contract
establishing the Inclusive Higher Education
Technical Assistance Center under Minnesota
Statutes, section 135A.161.
new text end

new text begin (b) $750,000 the first year and $750,000 the
second year are transferred from the general
fund to the inclusive higher education grant
account under Minnesota Statutes, section
135A.162, subdivision 4. Up to five percent
of the transfer can be used for administrative
expenses.
new text end

new text begin Subd. 41. new text end new text begin Addiction Medicine Graduate Medical Education Fellowship new text end

new text begin 270,000 new text end

new text begin 270,000 new text end

new text begin (a) For a grant to Hennepin County Medical
Center to support up to six physicians enrolled
in an addiction medicine fellowship program.
If the appropriation for either year is
insufficient, the appropriation for the other
year is available for it.
new text end

new text begin (b) Each year, in order to receive funds under
this subdivision, Hennepin County Medical
Center must certify to the commissioner the
number of physicians actually enrolled in an
addiction medicine fellowship for that year.
The commissioner shall award to Hennepin
County Medical Center an amount up to
$90,000 for each physician enrolled in an
addiction medicine fellowship subject to the
total funds appropriated by this subdivision.
new text end

new text begin (c) This appropriation shall be used to prepare
fellows to practice addiction medicine in rural
and underserved areas of the state, and to train
fellows in: diagnostic interviewing;
motivational interviewing; addiction
counseling; recognition and care of common
acute withdrawal syndromes and
complications; pharmacotherapies of addictive
disorders; epidemiology and pathophysiology
of addiction; identification and treatment of
addictive disorders in special populations;
secondary interventions; the use of screening
and diagnostic instruments; inpatient care; and
working within a multidisciplinary team.
new text end

new text begin Subd. 42. new text end new text begin Unemployment Insurance Aid new text end

new text begin 158,000 new text end

new text begin 158,000 new text end

new text begin For unemployment insurance aid to Tribal
colleges under Minnesota Statutes, section
268.193. Of the amount appropriated, $24,000
each year is for administration of
unemployment insurance aid.
new text end

new text begin Subd. 43. new text end new text begin North Star Promise new text end

new text begin 49,500,000 new text end

new text begin 49,500,000 new text end

new text begin $49,500,000 each year is transferred from the
general fund to the account in the special
revenue fund under Minnesota Statutes,
section 136A.1465, subdivision 8.
new text end

new text begin Subd. 44. new text end new text begin North Star Promise; Administrative Costs new text end

new text begin 202,000 new text end

new text begin 202,000 new text end

new text begin For administrative and promotion expenses to
implement and direct the scholarship awards
under Minnesota Statutes, section 136A.1465.
new text end

new text begin Subd. 45. new text end new text begin Agency Administration new text end

new text begin 6,194,000 new text end

new text begin 6,360,000 new text end

new text begin Subd. 46. new text end new text begin Balances Forward new text end

new text begin A balance in the first year under this section
does not cancel, but is available for the second
year.
new text end

new text begin Subd. 47. new text end new text begin Transfers new text end

new text begin The commissioner of the Office of Higher
Education may transfer unencumbered
balances from the appropriations in this
section to the state grant appropriation, the
interstate tuition reciprocity appropriation, the
child care grant appropriation, the Indian
scholarship appropriation, the state work-study
appropriation, the get ready appropriation, the
intervention for college attendance
appropriation, the student-parent information
appropriation, the summer academic
enrichment program appropriation, the public
safety officers' survivors appropriation, and
the fostering independence higher education
grant program. The commissioner may transfer
unencumbered balances from the hunger-free
campus appropriations to the emergency
assistance for postsecondary students grant.
To the extent there is a projected surplus in
the appropriation for either the student
teachers in shortage areas grant program or
the underrepresented student teacher grant
program, the commissioner may transfer
unencumbered balances between the two
programs as needed to meet demand. Transfers
from the child care, state work-study, or the
hunger-free campus appropriations may only
be made to the extent there is a projected
surplus in the appropriation. A transfer may
be made only with prior written notice to the
chairs and ranking minority members of the
senate and house of representatives
committees with jurisdiction over higher
education finance.
new text end

Sec. 3. new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 875,689,000 new text end

new text begin $ new text end

new text begin 875,700,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Central Office and Shared Services Unit new text end

new text begin 36,401,000 new text end

new text begin 36,401,000 new text end

new text begin For the Office of the Chancellor and the
Shared Services Division.
new text end

new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end

new text begin 833,227,000 new text end

new text begin 833,238,000 new text end

new text begin (a) This appropriation includes $37,500,000
in fiscal year 2026 and $37,500,000 in fiscal
year 2027 for student tuition relief. The Board
of Trustees may not set the tuition rates in any
undergraduate degree-granting program for
the 2025-2026 and 2026-2027 academic years
at a rate greater than the 2024-2025 academic
year rates. The student tuition relief may not
be offset by increases in mandatory fees,
charges, or other assessments to the student.
Colleges and universities are permitted to
increase differential tuition charges in fiscal
years 2026 and 2027 where costs for course
or program delivery have increased due to
extraordinary circumstances beyond the
control of the college or university. Rates and
rationale must be approved by the Board of
Trustees.
new text end

new text begin (b) $5,700,000 in fiscal year 2026 and
$5,700,000 in fiscal year 2027 are to provide
supplemental aid for operations and
maintenance to the president of each two-year
institution in the system with at least one
campus that is not located in a metropolitan
county, as defined in Minnesota Statutes,
section 473.121, subdivision 4. The board
shall transfer at least $158,000 for each
campus not located in a metropolitan county
in each year to the president of each institution
that includes such a campus.
new text end

new text begin (c) The Board of Trustees is requested to help
Minnesota close the attainment gap by funding
activities which improve retention and
completion for students of color.
new text end

new text begin (d) $4,500,000 in fiscal year 2026 and
$4,500,000 in fiscal year 2027 are for
workforce development scholarships under
Minnesota Statutes, section 136F.38.
new text end

new text begin (e) $300,000 in fiscal year 2026 and $300,000
in fiscal year 2027 are for transfer to the Cook
County Higher Education Board to provide
educational programming, workforce
development, and academic support services
to remote regions in northeastern Minnesota.
The Cook County Higher Education Board
shall continue to provide information to the
Board of Trustees on the number of students
served, credit hours delivered, and services
provided to students.
new text end

new text begin (f) $40,000 in fiscal year 2026 and $40,000 in
fiscal year 2027 are to implement the sexual
assault policies required under Minnesota
Statutes, section 135A.15.
new text end

new text begin (g) $9,500,000 in fiscal year 2026 and
$9,500,000 in fiscal year 2027 are for
enterprise-wide technology, including
upgrading the Integrated Statewide Record
System and maintaining enterprise-wide
technology services.
new text end

new text begin (h) $50,000 in fiscal year 2026 and $50,000
in fiscal year 2027 are to reduce students'
out-of-pocket costs by expanding free
offerings in course materials and resources,
including through open educational resources,
open textbooks, and implementation of
Z-Degrees under Minnesota Statutes, section
136F.305.
new text end

new text begin (i) $3,158,000 in fiscal year 2026 and
$3,158,000 in fiscal year 2027 are to expand
student support services. This appropriation
provides funding to campuses to address basic
needs insecurity, mental health, and other
high-need student support services by
increasing the amount of available resources
to students. In addition, this funding provides
systemwide resources and coordination,
including electronic connections for peer
support and professional clinical support for
mental health. These systemwide resources
must be available online 24 hours a day, seven
days a week.
new text end

new text begin (j) $883,000 in fiscal year 2026 and $894,000
in fiscal year 2027 are for costs associated
with the increased employer contribution rates
for the higher education individual retirement
account plan under Minnesota Statutes, section
354B.23, subdivision 3.
new text end

new text begin (k) $282,000 in fiscal year 2026 and $282,000
in fiscal year 2027 are to pay the cost of
supplies and equipment necessary to provide
access to menstrual products for purposes of
Minnesota Statutes, section 135A.1365.
new text end

new text begin (l) $809,000 in fiscal year 2026 and $809,000
in fiscal year 2027 are for unemployment
insurance aid under Minnesota Statutes,
section 268.193, to institutions within the
system.
new text end

new text begin Subd. 4. new text end new text begin Learning Network of Minnesota new text end

new text begin 4,115,000 new text end

new text begin 4,115,000 new text end

new text begin Subd. 5. new text end new text begin Juvenile Detention Alternatives Initiative new text end

new text begin 500,000 new text end

new text begin 500,000 new text end

new text begin For transfer to Metropolitan State University.
Of this amount: $280,000 each year is to
provide juvenile justice services and resources,
including the Juvenile Detention Alternatives
Initiative, to Minnesota counties and federally
recognized Tribes; and $220,000 each year is
for funding to local units of government,
federally recognized Tribes, and agencies to
support local Juvenile Detention Alternative
Initiatives, including but not limited to
alternatives to detention. Any unencumbered
balance remaining in the first year does not
cancel and is available in the second year.
new text end

Sec. 4. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 747,139,000 new text end

new text begin $ new text end

new text begin 747,139,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 744,982,000 new text end	new text begin 744,982,000 new text end
new text begin Health Care Access new text end	new text begin 2,157,000 new text end	new text begin 2,157,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end

new text begin 643,518,000 new text end

new text begin 643,518,000 new text end

new text begin (a) $15,000,000 in fiscal year 2026 and
$15,000,000 in fiscal year 2027 are to: (1)
increase the medical school's research
capacity; (2) improve the medical school's
ranking in National Institutes of Health
funding; (3) ensure the medical school's
national prominence by attracting and
retaining world-class faculty, staff, and
students; (4) invest in physician training
programs in rural and underserved
communities; and (5) translate the medical
school's research discoveries into new
treatments and cures to improve the health of
Minnesotans.
new text end

new text begin (b) $7,800,000 in fiscal year 2026 and
$7,800,000 in fiscal year 2027 are for health
training restoration. This appropriation must
be used to support all of the following: (1)
faculty physicians who teach at eight residency
program sites, including medical resident and
student training programs in the Department
of Family Medicine; (2) the Mobile Dental
Clinic; and (3) expansion of geriatric
education and family programs.
new text end

new text begin (c) $4,000,000 in fiscal year 2026 and
$4,000,000 in fiscal year 2027 are for the
Minnesota Discovery, Research, and
InnoVation Economy funding program for
cancer care research.
new text end

new text begin (d) $500,000 in fiscal year 2026 and $500,000
in fiscal year 2027 are for the University of
Minnesota, Morris branch, to cover the costs
of tuition waivers under Minnesota Statutes,
section 137.16.
new text end

new text begin (e) $1,000,000 in fiscal year 2026 and
$1,000,000 in fiscal year 2027 are for
systemwide safety and security measures on
University of Minnesota campuses.
new text end

new text begin (f) $366,000 in fiscal year 2026 and $366,000
in fiscal year 2027 are for unemployment
insurance aid under Minnesota Statutes,
section 268.193.
new text end

new text begin (g) $110,000 in fiscal year 2026 and $110,000
in fiscal year 2027 are to pay the cost of
supplies and equipment necessary to provide
access to menstrual products for purposes of
Minnesota Statutes, section 135A.1365.
new text end

new text begin Subd. 3. new text end new text begin Primary Care Education Initiatives new text end

new text begin 2,157,000 new text end

new text begin 2,157,000 new text end

new text begin This appropriation is from the health care
access fund.
new text end

new text begin Subd. 4. new text end new text begin Special Appropriations new text end

new text begin (a) Agriculture and Extension Service new text end

new text begin 42,922,000 new text end

new text begin 42,922,000 new text end

new text begin For the Agricultural Experiment Station and
the Minnesota Extension Service:
new text end

new text begin (1) the Agricultural Experiment Station and
Minnesota Extension Service must convene
agricultural advisory groups to focus research,
education, and extension activities on producer
needs and implement an outreach strategy that
more effectively and rapidly transfers research
results and best practices to producers
throughout the state;
new text end

new text begin (2) this appropriation includes funding for
research and outreach on the production of
renewable energy from Minnesota biomass
resources, including agronomic crops, plant
and animal wastes, and native plants or trees.
The following areas should be prioritized and
carried out in consultation with Minnesota
producers, renewable energy, and bioenergy
organizations:
new text end

new text begin (i) biofuel and other energy production from
perennial crops, small grains, row crops, and
forestry products in conjunction with the
Natural Resources Research Institute (NRRI);
new text end

new text begin (ii) alternative bioenergy crops and cropping
systems; and
new text end

new text begin (iii) biofuel coproducts used for livestock feed;
new text end

new text begin (3) this appropriation includes funding for the
College of Food, Agricultural, and Natural
Resources Sciences to establish and provide
leadership for organic agronomic,
horticultural, livestock, and food systems
research, education, and outreach and for the
purchase of state-of-the-art laboratory,
planting, tilling, harvesting, and processing
equipment necessary for this project;
new text end

new text begin (4) this appropriation includes funding for
research efforts that demonstrate a renewed
emphasis on the needs of the state's agriculture
community. The following areas should be
prioritized and carried out in consultation with
Minnesota farm organizations:
new text end

new text begin (i) vegetable crop research with priority for
extending the Minnesota vegetable growing
season;
new text end

new text begin (ii) fertilizer and soil fertility research and
development;
new text end

new text begin (iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;
new text end

new text begin (iv) discovering and developing plant varieties
that use nutrients more efficiently;
new text end

new text begin (v) breeding and development of turf seed and
other biomass resources in all three Minnesota
biomes;
new text end

new text begin (vi) development of new disease-resistant and
pest-resistant varieties of turf and agronomic
crops;
new text end

new text begin (vii) utilizing plant and livestock cells to treat
and cure human diseases;
new text end

new text begin (viii) the development of dairy coproducts;
new text end

new text begin (ix) a rapid agricultural response fund for
current or emerging animal, plant, and insect
problems affecting production or food safety;
new text end

new text begin (x) crop pest and animal disease research;
new text end

new text begin (xi) developing animal agriculture that is
capable of sustainably feeding the world;
new text end

new text begin (xii) consumer food safety education and
outreach;
new text end

new text begin (xiii) programs to meet the research and
outreach needs of organic livestock and crop
farmers; and
new text end

new text begin (xiv) alternative bioenergy crops and cropping
systems and growing, harvesting, and
transporting biomass plant material; and
new text end

new text begin (5) by February 1, 2027, the Board of Regents
must submit a report to the legislative
committees and divisions with jurisdiction
over agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this paragraph.
new text end

new text begin (b) Health Sciences new text end

new text begin 9,204,000 new text end

new text begin 9,204,000 new text end

new text begin $346,000 each year is to support up to 12
resident physicians in the St. Cloud Hospital
family practice residency program. The
program must prepare doctors to practice
primary care medicine in rural areas of the
state. The legislature intends this program to
improve health care in rural communities,
provide affordable access to appropriate
medical care, and manage the treatment of
patients in a more cost-effective manner. The
remainder of this appropriation is for the rural
physicians associates program; the Veterinary
Diagnostic Laboratory; health sciences
research; dental care; the Biomedical
Engineering Center; and the collaborative
partnership between the University of
Minnesota and Mayo Clinic for regenerative
medicine, research, clinical translation, and
commercialization.
new text end

new text begin (c) College of Science and Engineering new text end

new text begin 1,140,000 new text end

new text begin 1,140,000 new text end

new text begin For the geological survey and the talented
youth mathematics program.
new text end

new text begin (d) System Special new text end

new text begin 7,181,000 new text end

new text begin 7,181,000 new text end

new text begin (1) For general research, the Labor Education
Service, the Natural Resources Research
Institute, the Center for Urban and Regional
Affairs, the Bell Museum of Natural History,
and the Humphrey exhibit.
new text end

new text begin (2) $2,000,000 in fiscal year 2026 and
$2,000,000 in fiscal year 2027 are for the
Natural Resources Research Institute to invest
in applied research in natural resource
stewardship and economic development to
attract and retain top talent; provide matching
funds for federal grants; upgrade facilities,
equipment, and training; and expand
entrepreneurial support and outreach efforts.
This appropriation is available until June 30,
2029.
new text end

new text begin (e) University of Minnesota and Mayo Foundation Partnership new text end

new text begin 7,991,000 new text end

new text begin 7,991,000 new text end

new text begin This appropriation is for the following
activities:
new text end

new text begin (1) $7,491,000 in fiscal year 2026 and
$7,491,000 in fiscal year 2027 are for the
direct and indirect expenses of the
collaborative research partnership between the
University of Minnesota and the Mayo
Foundation for research in biotechnology and
medical genomics. An annual report on the
expenditure of these funds must be submitted
to the governor and the chairs of the legislative
committees responsible for higher education
finance by June 30 of each fiscal year.
new text end

new text begin (2) $500,000 in fiscal year 2026 and $500,000
in fiscal year 2027 are to award competitive
grants to conduct research into the prevention,
treatment, causes, and cures of Alzheimer's
disease and other dementias.
new text end

new text begin Subd. 5. new text end new text begin Agriculture Sector; Extreme Weather new text end

new text begin 1,000,000 new text end

new text begin 1,000,000 new text end

new text begin For a program in the University of Minnesota
Extension Service that enhances the capacity
of the state's agriculture sector, land and
resource managers, and communities to plan
for and adapt to weather extremes, including
but not limited to droughts and floods. The
base for this appropriation in fiscal year 2028
and later is $1,000,000. The appropriation
under this section must be used to support
existing extension service staff members and
to hire additional staff members for a program
with broad geographic reach throughout the
state. The program must:
new text end

new text begin (1) identify, develop, implement, and evaluate
educational programs that increase the
capacity of Minnesota's agriculture sector,
land and resource managers, and communities
to be prepared for and adapt to projected
physical changes in temperature, precipitation,
and other weather parameters that affect crops,
lands, horticulture, pests, and wildlife in ways
that present challenges to the state's agriculture
sector and the communities that depend on the
agriculture sector; and
new text end

new text begin (2) communicate and interpret the latest
research on critical weather trends and the
scientific basis for critical weather trends to
further prepare extension service staff
throughout the state to educate and provide
technical assistance to the agriculture sector,
land and resource managers, and community
members at the local level regarding technical
information on water resource management,
agriculture and forestry, engineering and
infrastructure design, and emergency
management that is necessary to develop
strategies to mitigate the effects of extreme
weather change.
new text end

Sec. 5. new text begin MAYO CLINIC new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,799,000 new text end

new text begin $ new text end

new text begin 1,799,000 new text end

new text begin The amounts that may be spent are specified
in the following subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Medical School new text end

new text begin 665,000 new text end

new text begin 665,000 new text end

new text begin The state must pay a capitation each year for
each student who is a resident of Minnesota.
The appropriation may be transferred between
each year of the biennium to accommodate
enrollment fluctuations. It is intended that
during the biennium the Mayo Clinic use the
capitation money to increase the number of
doctors practicing in rural areas in need of
doctors.
new text end

new text begin Subd. 3. new text end new text begin Family Practice and Graduate Residency Program new text end

new text begin 1,134,000 new text end

new text begin 1,134,000 new text end

new text begin The state must pay stipend support for up to
42 residents each year.
new text end

ARTICLE 2

HIGHER EDUCATION PROVISIONS

Section 1.

Minnesota Statutes 2024, section 135A.137, is amended to read:

135A.137 HUNGER-FREE CAMPUS DESIGNATION.

Subdivision 1.

Establishment.

(a) A Hunger-Free Campus designation is established
for public postsecondary institutions deleted text begin and for deleted text end new text begin , new text end nonprofit degree-granting institutions physically
located in Minnesota and registered with the Office of Higher Education under section
136A.63 new text begin , and Tribal colleges new text end . In order to be awarded the designation, an institution must
meet the following minimum criteria:

(1) have an established on-campus food pantry or partnership with a local food bank to
provide regular, on-campus food distributions;

(2) provide information to students on SNAP, MFIP, and other programs that reduce
food insecurity. The institution shall notify students in work-study employment of their
potential eligibility for SNAP benefits and provide information to those students that includes
eligibility criteria and how to apply for benefits;

(3) hold or participate in one hunger awareness event per academic year;

(4) have an established emergency assistance grant that is available to students; and

(5) establish a hunger task force that meets a minimum of three times per academic year.
The task force must include at least two students currently enrolled at the institution.

(b) Each institution must reapply at least every four years to maintain the designation.

Subd. 2.

Designation approval.

The new text begin commissioner, in collaboration with the new text end student
advisory council under section 136A.031 new text begin , new text end shall create an application process for institutions
applying for deleted text begin grant funds deleted text end new text begin the designation new text end . The new text begin commissioner, in collaboration with the new text end student
advisory council new text begin , new text end shall review applications deleted text begin and make recommendations to the commissioner deleted text end .
The new text begin student advisory council may provide recommendations to the commissioner, but the
new text end commissioner shall have final approval for the designation deleted text begin and the award amount deleted text end .

Subd. 3.

Competitive grant.

deleted text begin (a) Institutions eligible for a grant under this subdivision
include public postsecondary institutions, nonprofit private postsecondary institutions, and
Tribal colleges.
deleted text end

deleted text begin (b) deleted text end new text begin (a) new text end The commissioner shall establish a competitive grant program to distribute grants
to deleted text begin eligible institutions deleted text end new text begin public postsecondary institutions, nonprofit postsecondary institutions,
and Tribal colleges new text end to meet and maintain the requirements new text begin for the Hunger-Free Campus
designation new text end under deleted text begin subdivision 1, paragraph (a) deleted text end new text begin this section new text end . Initial grants shall be made to
institutions that have not earned the designation and demonstrate a need for funding to meet
the Hunger-Free Campus designation requirements. Sustaining grants shall be made to
institutions that have earned the designation and demonstrate both a partnership with a local
food bank or organization that provides regular, on-campus food distributions and a need
for funds to maintain the requirements under subdivision 1, paragraph (a).

deleted text begin (c) deleted text end new text begin (b) In awarding competitive grants, new text end the commissioner deleted text begin shall give preference to
applications for initial grants and to applications from institutions with the highest number
of federal Pell Grant eligible students enrolled. The commissioner shall consider the head
count at the institution when awarding grants. The maximum grant award for an initial
institution designation is $25,000. The maximum grant award for sustaining an institution
designation is $15,000. deleted text end new text begin must consider, among other factors:
new text end

new text begin (1) the number of federal Pell Grant eligible students enrolled in the last academic year
at the institution; and
new text end

new text begin (2) the total number of students enrolled at the institution.
new text end

deleted text begin (d) deleted text end new text begin (c) new text end The commissioner, in collaboration with deleted text begin student associations representing eligible
institutions deleted text end new text begin the student advisory council under section 136A.031 new text end , shall create an application
process and establish selection criteria for awarding the grants.

deleted text begin (e) No more than 20 percent of the total grant awards each fiscal year shall be for grants
to nonprofit private postsecondary institutions.
deleted text end

new text begin Subd. 3a. new text end

new text begin Grant amounts. new text end

new text begin (a) The maximum grant amount for an initial grant is $25,000
per fiscal year.
new text end

new text begin (b) The maximum grant amount for a sustaining grant is $15,000 per fiscal year.
new text end

new text begin (c) Eligible institutions may only receive one initial grant.
new text end

new text begin (d) If grant requests exceed the amount of available money, no more than 20 percent of
the total grant awards shall be for grants to nonprofit private postsecondary institutions.
new text end

Subd. 4.

deleted text begin Grant requirements deleted text end new text begin Match required new text end .

deleted text begin (a) deleted text end An eligible institution that receives
a grant under subdivision 3 must deleted text begin : deleted text end new text begin match at least 50 percent of the grant amount awarded
with money or in-kind resources.
new text end

deleted text begin (1) use the grant funds to meet or maintain the minimum criteria of a hunger-free campus
designation under subdivision 1; and
deleted text end

deleted text begin (2) match at least 50 percent of the grant amount awarded with funds or in-kind resources.
deleted text end

deleted text begin (b) In addition to the requirements of paragraph (a), in order to receive a sustaining grant,
an institution must demonstrate a partnership with a local food bank or organization or other
source of funding that ensures regular, on-campus distributions.
deleted text end

Sec. 2.

Minnesota Statutes 2024, section 136A.01, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Treatment of appropriations. new text end

new text begin (a) The office may retain up to ten percent of
competitively awarded grants if another amount is not already designated as administrative
funding in the appropriation.
new text end

new text begin (b) Notwithstanding section 16A.28, beginning in fiscal year 2025, the office may carry
forward unexpended and unencumbered nongrant operating appropriations from the second
year of a biennium into the next biennium.
new text end

Sec. 3.

Minnesota Statutes 2024, section 136A.101, subdivision 5a, is amended to read:

Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means the
amount of a family's contribution to a student's cost of attendance, as determined by a federal
need analysis. For dependent students, the assigned family responsibility is deleted text begin 79 deleted text end new text begin 100 new text end percent
of the parental contribution. deleted text begin If the parental contribution is less than $0, the assigned family
responsibility is 100 percent of the parental contribution. deleted text end For independent students with
dependents other than a spouse, the assigned family responsibility is deleted text begin 71 deleted text end new text begin 100 new text end percent of the
student contribution. For independent students without dependents other than a spouse, the
assigned family responsibility is deleted text begin 35 deleted text end new text begin 100 new text end percent of the student contribution. deleted text begin If the student
contribution is less than $0, the assigned family responsibility is 100 percent of the student
contribution. deleted text end new text begin If the program has a projected spending balance and the parental contribution
for dependent students or the student contribution for independent students is less than $0,
the commissioner may assess the assigned family responsibility up to 100 percent of the
parent or student contribution. new text end For a student registering for less than full time, the office
shall prorate the assigned family responsibility using the ratio of the number of credits the
student is enrolled in to the number of credits for full-time enrollment.

Sec. 4.

Minnesota Statutes 2024, section 136A.103, is amended to read:

136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

(a) A postsecondary institution is eligible for state student
aid new text begin and to receive state student aid on behalf of students new text end new text begin new text end under new text begin this new text end chapter deleted text begin 136A deleted text end and sections
197.791 and 299A.45, if the institution is located in this state and:

(1) is operated by this state or the Board of Regents of the University of Minnesota; or

(2) is operated privately and deleted text begin , as determined by the office, deleted text end meets the requirements of
paragraph (b).

(b) A private institution must:

deleted text begin (1) maintain academic standards substantially equivalent to those of comparable
institutions operated in this state;
deleted text end

deleted text begin (2) deleted text end new text begin (1) new text end be licensed or registered as a postsecondary institution by the office; and

deleted text begin (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
the Higher Education Act of 1965, Public Law 89-329, as amended; or
deleted text end

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

new text begin (i) the institution participates in the federal Pell Grant program under Title IV of the
Higher Education Act of 1965, Public Law 89-329, as amended;
new text end

(ii) deleted text begin if an deleted text end new text begin the new text end institution was participating in state student aid programs as of June 30,
2010, deleted text begin and the institution did deleted text end new text begin but does new text end not participate in the federal Pell Grant program deleted text begin by
June 30, 2010, the institution must require every student who enrolls to sign a disclosure
form, provided by the office, stating that the institution is not participating in the federal
Pell Grant program. deleted text end new text begin under Title IV of the Higher Education Act of 1965, Public Law 89-329,
as amended; and
new text end

new text begin (A) the institution requires every student who enrolls to sign a disclosure form, provided
by the office, stating that the institution is not participating in the federal Pell Grant program;
and
new text end

new text begin (B) the institution has not had a change in ownership as defined in section 136A.63,
subdivision 2; or
new text end

deleted text begin (c) An deleted text end new text begin (iii) the new text end institution deleted text begin that deleted text end offers only graduate-level degrees or graduate-level
nondegree programs deleted text begin is an eligible institution if the institution is licensed or registered as a
postsecondary institution by the office deleted text end new text begin and participates in federal financial aid under Title
IV of the Higher Education Act of 1965, Public Law 89-329, as amended new text end .

deleted text begin (d) deleted text end new text begin (c) new text end An deleted text begin eligible deleted text end institution under paragraph (b), clause deleted text begin (3), item (ii) deleted text end new text begin (2) new text end , that changes
ownership as defined in section 136A.63, subdivision 2, deleted text begin must participate in the federal Pell
Grant program within four calendar years of the first ownership change to continue eligibility deleted text end new text begin
remains eligible for state student aid for six months following the change in ownership new text end .

deleted text begin (e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution. The office may terminate an institution's eligibility to participate in state
student aid programs effective the date of the loss of eligibility for the federal Pell Grant
program.
deleted text end

deleted text begin (f) An institution must maintain adequate administrative and financial standards and
compliance with all state statutes, rules, and administrative policies related to state financial
aid programs.
deleted text end

deleted text begin (g) The office may terminate a postsecondary institution's eligibility to participate in
state student aid programs if the institution is
deleted text end

new text begin Subd. 2. new text end

new text begin Ineligibility. new text end

new text begin A postsecondary institution otherwise eligible for state student
aid under this chapter and sections 197.791 and 299A.45 becomes ineligible if the institution:
new text end

new text begin (1) fails to maintain adequate compliance with administrative and financial standards
and compliance with all state statutes, rules, and administrative policies related to state
financial aid programs; or
new text end

new text begin (2) has been new text end terminated from participating in federal financial aid programs by the United
States Department of Education for a violation of laws, regulations, or participation
agreements governing federal financial aid programs.

Sec. 5.

Minnesota Statutes 2024, section 136A.121, subdivision 5, is amended to read:

Subd. 5.

Grant stipends.

The grant stipend shall be based on a sharing of responsibility
for covering the recognized cost of attendance by the applicant, the applicant's family, and
the government. The amount of a financial stipend must not exceed a grant applicant's
recognized cost of attendance, as defined in subdivision 6, after deducting the following:

(1) the assigned student responsibility of at least deleted text begin 50 deleted text end new text begin 51 new text end percent of the cost of attending
the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible.

The minimum financial stipend is $100 per academic year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning fiscal year 2027.
new text end

Sec. 6.

Minnesota Statutes 2024, section 136A.121, subdivision 6, is amended to read:

Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of: (1) an
allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or a tuition and fee maximum if one is established in law. If no living and miscellaneous
expense allowance is established in law, the allowance is equal to deleted text begin 115 deleted text end new text begin 110 new text end percent of the
federal poverty guidelines for a one person household in Minnesota for nine months. If no
tuition and fee maximum is established in law, the allowance for tuition and fees is equal
to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
two-year programs, an amount equal to the highest tuition and fees charged at a public
two-year institution, or for four-year programs, an amount equal to the highest tuition and
fees charged at a public university.

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance using the ratio of the number of credits the student is enrolled in to the number
of credits for full-time enrollment.

(c) The recognized cost of attendance for a student who is confined to a Minnesota
correctional institution shall consist of the tuition and fee component in paragraph (a), with
no allowance for living and miscellaneous expenses.

(d) For the purpose of this subdivision, "fees" include only those fees that are mandatory
and charged to full-time resident students attending the institution. Fees do not include
charges for tools, equipment, computers, or other similar materials where the student retains
ownership. Fees include charges for these materials if the institution retains ownership. Fees
do not include optional or punitive fees.

Sec. 7.

Minnesota Statutes 2024, section 136A.121, subdivision 7, is amended to read:

Subd. 7.

Insufficient appropriation.

If the amount appropriated is determined by the
office to be insufficient to make full awards to applicants under subdivision 5, awards must
be reduced by:

(1) deleted text begin adding a surcharge deleted text end new text begin a percentage increase new text end to the applicant's assigned family
responsibility, as defined in section 136A.101, subdivision 5a; and

(2) a percentage increase in the applicant's assigned student responsibility, as defined
in subdivision 5.

new text begin At the commissioner's discretion, new text end the reduction under clauses (1) and (2) deleted text begin must deleted text end new text begin may new text end be equal
dollar amounts.

Sec. 8.

Minnesota Statutes 2024, section 136A.121, subdivision 13, is amended to read:

Subd. 13.

Deadline.

The deadline for the office to accept applications for state grants
for a term is deleted text begin June 30 of the fiscal year deleted text end new text begin the 30th day of the term new text end for which the student applies
for a grant.

Sec. 9.

Minnesota Statutes 2024, section 136A.1465, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

The following terms have the meanings given:

(1) "eligible student" means a resident student under section 136A.101, subdivision 8,
who is enrolled in any public postsecondary educational institution or Tribal college and
who meets the eligibility requirements in subdivision 2;

(2) "gift aid" includes:

(i) all federal financial aid that is not a loan or pursuant to a work-study program;

(ii) state financial aid, unless designated for other expenses, that is not a loan or pursuant
to a work-study program;

(iii) institutional financial aid, including a grant, scholarship, tuition waiver, fellowship
stipend, or other payment, unless designated for other expenses, that is not a loan or pursuant
to a work-study program; and

(iv) all private financial aid that is not a loan or pursuant to a work-study program.

Financial aid from the state, public postsecondary educational institutions, and Tribal colleges
that is specifically designated for other expenses is not gift aid for purposes of the North
Star Promise scholarship.

(3) "other expenses" includes books, required supplies, child care, emergency assistance,
food, and housing;

(4) "public postsecondary educational institution" means an institution operated by this
state, or the Board of Regents of the University of Minnesota;

(5) "recognized cost of attendance" has the meaning given in United States Code, title
20, chapter 28, subchapter IV, part F, section 1087ll;

(6) "Tribal college" means a college defined in section 136A.1796, subdivision 1,
paragraph deleted text begin (c) deleted text end new text begin (d) new text end ; and

(7) "tuition and fees" means the deleted text begin actual deleted text end new text begin eligible resident new text end tuition and mandatory fees
charged by an institution.

Sec. 10.

Minnesota Statutes 2024, section 136A.1465, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Resident tuition. new text end

new text begin (a) The Board of Regents of the University of Minnesota is
requested to adopt a policy to charge resident tuition rates for all students eligible for North
Star Promise.
new text end

new text begin (b) The Board of Trustees of Minnesota State Colleges and Universities must adopt a
policy to charge resident tuition rates for all students eligible for North Star Promise.
new text end

Sec. 11.

Minnesota Statutes 2024, section 136A.1465, subdivision 2, is amended to read:

Subd. 2.

Conditions for eligibility.

A scholarship may be awarded to an eligible student
who:

(1) has completed the Free Application for Federal Student Aid (FAFSA) or the state
aid application;

(2) has a family adjusted gross income below $80,000;

(3) is a graduate of a secondary school or its equivalent, or is 17 years of age or over
and has met all requirements for admission as a student to an eligible college or university;

(4) has not deleted text begin earned a deleted text end new text begin completed the degree requirements for the first new text end baccalaureate degree
at the time the scholarship is awarded;

(5) is enrolled in at least one credit per fall, spring, or summer semester;

(6) is enrolled in a program or course of study that applies to a degree, diploma, or
certificate;

(7) is not in default, as defined by the office, of any federal or state student educational
loan;

(8) is not more than 30 days in arrears in court-ordered child support that is collected or
enforced by the public authority responsible for child support enforcement or, if the applicant
is more than 30 days in arrears in court-ordered child support that is collected or enforced
by the public authority responsible for child support enforcement, but is complying with a
written payment agreement under section 518A.69 or order for arrearages;

(9) has not been convicted of or pled nolo contendere or guilty to a crime involving
fraud in obtaining federal Title IV funds within the meaning of Code of Federal Regulations,
subtitle B, chapter VI, part 668, subpart C; and

(10) is meeting satisfactory academic progress as defined in section 136A.101, subdivision
10.

Sec. 12.

Minnesota Statutes 2024, section 136A.155, is amended to read:

136A.155 ADDITIONAL INSTITUTION ELIGIBILITY REQUIREMENTS.

A postsecondary institution is an eligible institution for purposes of sections 136A.15
to 136A.1702, if the institution:

(1) meets the eligibility requirements under section 136A.103; or

(2) is operated publicly or privately in another state deleted text begin , deleted text end new text begin and new text end is approved by the United States
Secretary of Education deleted text begin , and, as determined by the office, maintains academic standards
substantially equal to those of comparable institutions operated in this state deleted text end .

Sec. 13.

Minnesota Statutes 2024, 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 are private data on individuals as defined in section 13.02, subdivision 12.

(b) Data on applicants may be disclosed to the commissioner of children, youth, and
families 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
sections 136A.1701 and 136A.1704 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;

deleted text begin (8) the number of late payments in previous 12 months;
deleted text end

deleted text begin (9) deleted text end new text begin (8) new text end the type of account;

deleted text begin (10) deleted text end new text begin (9) new text end the responsibility for the account; and

deleted text begin (11) deleted text end new text begin (10) new text end the status or remarks code.

Sec. 14.

Minnesota Statutes 2024, section 136A.1701, subdivision 4, is amended to read:

Subd. 4.

Terms and conditions of loans.

deleted text begin (a) deleted text end The office may loan money upon such
terms and conditions as the office may prescribe. new text begin Annually, the office must determine the
minimum loan amount, maximum loan amount based on program type, the maximum
cumulative amount for each program type, and the maximum lifetime limit for an individual.
The annual amount of the loan must not exceed the cost of attendance as determined by the
eligible institution less all other financial aid.
new text end

deleted text begin (b) The minimum loan amount and a maximum loan amount to students must be
determined annually by the office. Loan limits are defined based on the type of program
enrollment, such as a certificate, an associate's degree, a bachelor's degree, or a graduate
program. The aggregate principal amount of all loans made subject to this paragraph to a
student as an undergraduate and graduate student must not exceed $140,000. The amount
of the loan must not exceed the cost of attendance as determined by the eligible institution
less all other financial aid, including PLUS loans or other similar parent loans borrowed on
the student's behalf. A student may borrow up to the maximum amount twice in the same
grade level.
deleted text end

deleted text begin (c) The cumulative borrowing maximums must be determined annually by the office
and are defined based on program enrollment. In determining the cumulative borrowing
maximums, the office shall, among other considerations, take into consideration the maximum
SELF loan amount, student financing needs, funding capacity for the SELF program,
delinquency and default loss management, and current financial market conditions.
deleted text end

Sec. 15.

Minnesota Statutes 2024, section 136A.1796, is amended to read:

136A.1796 TRIBAL COLLEGE SUPPLEMENTAL GRANT ASSISTANCE.

Subdivision 1.

Definitions.

(a) As used in this section, the following terms have the
meanings given deleted text begin them deleted text end .

new text begin (b) "Beneficiary student" means a resident of Minnesota who is enrolled in a certificate,
diploma, or degree program in a Tribally controlled college and is an enrolled member of
a federally recognized Indian Tribe.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end "Nonbeneficiary student" means a resident of Minnesota who is enrolled new text begin in a
certificate, diploma, or degree program new text end in a Tribally controlled college but is not an enrolled
member of a federally recognized Indian Tribe.

deleted text begin (c) deleted text end new text begin (d) new text end "Tribally controlled college" means an accredited institution of higher education
located in this state that is formally controlled by or has been formally sanctioned or chartered
by the governing body of a federally recognized Indian Tribe, or a combination of federally
recognized Indian Tribes. Tribally controlled college does not include any institution or
campus subject to the jurisdiction of the Board of Trustees of the Minnesota State Colleges
and Universities or the Board of Regents of the University of Minnesota.

Subd. 2.

Eligibility; grant assistance.

(a) A Tribally controlled college is eligible to
receive supplemental grant assistance from the office, as provided in this section, for
new text begin beneficiary and new text end nonbeneficiary student enrollment deleted text begin if the college is not otherwise eligible
to receive federal grant funding for those students under United States Code, title 25, section
1808 deleted text end .

(b) The office shall make grants to Tribally controlled colleges to defray the costs of
education associated with the enrollment of new text begin beneficiary and new text end nonbeneficiary students. Grants
made pursuant to this section must be provided directly to the recipient college.

new text begin (c) The minimum annual grant amount for each eligible Tribally controlled college is
$500,000. The maximum annual grant amount for each eligible Tribally controlled college
is $1,050,000.
new text end

Subd. 3.

Grant application.

To receive a grant under this section, a Tribally controlled
college must submit an application in the manner required by the office. Upon submission
of a completed application indicating that the Tribally controlled college is eligible, the
office shall distribute to the college, during each year of the biennium, a grant of $5,300
for each new text begin beneficiary and new text end nonbeneficiary student on a full-time equivalent basis. If the amount
appropriated for grants under this section is insufficient to cover the total amount of grant
eligibility, the office shall distribute a prorated amount per new text begin beneficiary and new text end nonbeneficiary
student on a full-time equivalent basis.

Subd. 4.

Reporting by recipient institutions.

Each Tribally controlled college receiving
a grant under this section shall provide to the office, on an annual basis, an accurate and
detailed account of the expenditures of the grant funds received by the college, and a copy
of the college's most recent audit report and documentation of the enrollment status and
ethnic status of each new text begin beneficiary and new text end nonbeneficiary student for which grant assistance is
sought under this section.

Sec. 16.

Minnesota Statutes 2024, section 136A.658, is amended to read:

136A.658 EXEMPTION; STATE AUTHORIZATION RECIPROCITY
AGREEMENT SCHOOLS.

(a) The office may participate in an interstate reciprocity agreement regarding
postsecondary distance education if it determines that participation is in the best interest of
Minnesota postsecondary students.

(b) If the office decides to participate in an interstate reciprocity agreement, an institution
that meets the following requirements is exempt from the provisions of sections 136A.61
to 136A.71:

(1) the institution is situated in a state which is also participating in the interstate
reciprocity agreement;

(2) the institution has been approved to participate in the interstate reciprocity agreement
by the institution's home state and other entities with oversight of the interstate reciprocity
agreement; and

(3) the institution has elected to participate in and operate in compliance with the terms
of the interstate reciprocity agreement.

(c) If the office participates in an interstate reciprocity agreement and the office is
responsible for the administration of that interstate reciprocity agreement, which may include
the approval of applications for membership of in-state institutions to participate in the
interstate reciprocity agreement, the office shall collect reasonable fees sufficient to recover,
but not exceed, its costs to administer the interstate reciprocity agreement. The office
processing fees for approving an in-state institution application shall be as follows:

(1) deleted text begin $750 deleted text end new text begin $1,500 new text end for institutions with deleted text begin fewer than deleted text end 2,500 new text begin or fewer new text end full-time new text begin equivalent
new text end enrollment;

(2) deleted text begin $3,000 deleted text end new text begin $5,000 new text end for institutions with 2,501 to deleted text begin 20,000 deleted text end new text begin 12,500 new text end full-time new text begin equivalent
new text end enrollment; and

(3) $7,500 for institutions with greater than deleted text begin 20,001 deleted text end new text begin 12,500 new text end full-time new text begin equivalent new text end enrollment.

Full-time new text begin equivalent new text end enrollment is established using the previous year's full-time new text begin equivalent
new text end enrollment as established in the United States Department of Education Integrated
Postsecondary Education Data System.

Sec. 17.

Minnesota Statutes 2024, section 136A.69, subdivision 1, is amended to read:

Subdivision 1.

Registration fees.

(a) The office shall collect reasonable registration fees
that are sufficient to recover, but do not exceed, its costs of administering the registration
program. The office shall charge the fees listed in paragraphs (b) to (d) for new registrations.

(b) A new school deleted text begin offering no more than one degree at each level during its first year deleted text end
must pay registration fees deleted text begin for each applicable level deleted text end new text begin based on the institution's total full-time
student enrollment new text end in the following amounts:

deleted text begin associate degree deleted text end	deleted text begin $2,000 deleted text end
deleted text begin baccalaureate degree deleted text end	deleted text begin $2,500 deleted text end
deleted text begin master's degree deleted text end	deleted text begin $3,000 deleted text end
deleted text begin doctorate degree deleted text end	deleted text begin $3,500 deleted text end

new text begin (1) $5,000 for institutions with 2,500 or fewer full-time equivalent enrollment;
new text end

new text begin (2) $7,500 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
new text end

new text begin (3) $10,000 for institutions with 5,001 to 7,500 full-time equivalent enrollment;
new text end

new text begin (4) $15,000 for institutions with 7,501 to 10,000 full-time equivalent enrollment; and
new text end

new text begin (5) $20,000 for institutions with 10,001 or greater full-time equivalent enrollment, and
for institutions with no data on the previous year's full-time equivalent enrollment.
new text end

new text begin Full-time equivalent enrollment is established using the previous year's full-time equivalent
enrollment as established in the United States Department of Education Integrated
Postsecondary Education Data System.
new text end

(c) A new school deleted text begin that will offer more than one degree per level during its first year deleted text end must
pay registration fees in an amount equal to the fee deleted text begin for the first degree at each degree level deleted text end
under paragraph (b), plus fees for each deleted text begin additional deleted text end nondegree program or degree as follows:

nondegree program	$250
deleted text begin additional associate degree deleted text end	deleted text begin $250 deleted text end
deleted text begin additional baccalaureate degree deleted text end	deleted text begin $500 deleted text end
deleted text begin additional master's deleted text end degree new text begin program new text end	$750
deleted text begin additional doctorate degree deleted text end	deleted text begin $1,000 deleted text end

(d) In addition to the fees under paragraphs (b) and (c), a fee of $600 must be paid for
an initial application that: (1) has had four revisions, corrections, amendment requests, or
application reminders for the same application or registration requirement; or (2) cumulatively
has had six revisions, corrections, amendment requests, or application reminders for the
same license application and the school seeks to continue with the application process with
additional application submissions. If this fee is paid, the school may submit two final
application submissions for review prior to application denial under section 136A.65,
subdivision 8. This provision excludes from its scope nonrepetitive questions or clarifications
initiated by the school before the submission of the application, initial interpretation questions
or inquiries from the office regarding a completed application, and initial requests from the
office for verification or validation of a completed application.

(e) The annual renewal registration fee is deleted text begin $1,500. deleted text end new text begin based on an institution's total full-time
student enrollment in the following amounts:
new text end

new text begin (1) $1,500 for institutions with 2,500 or fewer full-time equivalent enrollment;
new text end

new text begin (2) $3,000 for institutions with 2,501 to 5,000 full-time equivalent enrollment;
new text end

new text begin (3) $5,000 for institutions with 5,001 to 10,000 full-time equivalent enrollment; and
new text end

new text begin (4) $7,500 for institutions with 10,001 or greater full-time equivalent enrollment, and
for institutions with no data on the previous year's full-time equivalent enrollment.
new text end

new text begin Full-time equivalent enrollment is established using the previous year's full-time equivalent
enrollment as established in the United States Department of Education Integrated
Postsecondary Education Data System.
new text end

(f) In addition to the fee under paragraph (e), a fee of $600 must be paid for a renewal
application that: (1) has had four revisions, corrections, amendment requests, or application
reminders for the same application or registration requirement; or (2) cumulatively has had
six revisions, corrections, amendment requests, or application reminders for the same license
application and the school seeks to continue with the application process with additional
application submissions. If this fee is paid, the school may submit two final application
submissions for review prior to application denial under section 136A.65, subdivision 8.
This provision excludes from its scope nonrepetitive questions or clarifications initiated by
the school before the submission of the application, initial interpretation questions or inquiries
from the office regarding a completed application, and initial requests from the office for
verification or validation of a completed application.

Sec. 18.

Minnesota Statutes 2024, section 136A.82, is amended to read:

136A.82 new text begin POLICY; new text end CITATION.

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin The legislature has found and hereby declares that the availability
of legitimate vocational programs offered by responsible nonprofit and for-profit private
career schools are in the best interests of the people of this state. The legislature has found
and declares that the state can provide assistance and protection for persons choosing
vocational programs by establishing policies and procedures to ensure the authenticity and
legitimacy of vocational programs offered by nonprofit and for-profit private career schools.
The legislature has found and declares that this same policy applies to any nonprofit and
for-profit private career schools located in another state or country that offers or makes
available to a Minnesota resident any vocational program which does not require leaving
the state for its completion.
new text end

new text begin Subd. 2. new text end

new text begin Citation. new text end

Sections 136A.82 to 136A.834 may be cited as the "Private Career
School Act."

Sec. 19.

Minnesota Statutes 2024, section 136A.821, subdivision 4, is amended to read:

Subd. 4.

Person.

"Person" means any individual, partnership, company, firm, society,
trust, association, or corporation or any combination thereof. new text begin Person does not extend to:
new text end

new text begin (1) a government body;
new text end

new text begin (2) a public school as defined in section 120A.05, subdivisions 9, 11, 13, and 17; or
new text end

new text begin (3) a nonpublic school, religious organization, or home school as defined in section
120A.22, subdivision 4.
new text end

Sec. 20.

Minnesota Statutes 2024, section 136A.821, subdivision 5, is amended to read:

Subd. 5.

Private career school.

"Private career school" means a person who maintains
a physical presence for any program at less than an associate degree level deleted text begin ; is not registered
as a private institution under sections 136A.61 to 136A.71; deleted text end and is not specifically exempted
by section 136A.833. new text begin Private career school does not extend to:
new text end

new text begin (1) public postsecondary institutions with a physical presence in Minnesota;
new text end

new text begin (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
new text end

new text begin (3) postsecondary institutions exempt from registration under sections 136A.653,
subdivisions 1b, 2, 3, and 3a; 136A.657; or 136A.658 due to the nature of the institution's
programs;
new text end

new text begin (4) schools exclusively engaged in training physically or mentally disabled persons;
new text end

new text begin (5) courses taught to students in an apprenticeship program registered by the United
States Department of Labor or Minnesota Department of Labor and taught by or required
by a trade union in which students are not responsible for tuition, fees, or any other charges,
regardless of payment or reimbursement method;
new text end

new text begin (6) programs contracted by persons or government agencies for the training of their own
employees for which no fee is charged to the employee, regardless of whether that fee is
reimbursed by the employer or a third party after the employee successfully completes the
training;
new text end

new text begin (7) schools with no physical presence in Minnesota engaged exclusively in offering
distance programs that are located in and approved by other states or jurisdictions if the
distance education program does not include internships, externships, field placements, or
clinical placements for residents of Minnesota;
new text end

new text begin (8) schools licensed or approved by other state boards or agencies authorized under
Minnesota law to issue licenses for institutions or programs, except for institutions or
programs required to be licensed exclusively to participate in state financial aid or be listed
on the eligible training provider list;
new text end

new text begin (9) review classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing, certification, or entrance
examinations;
new text end

new text begin (10) classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership and not available to the
public. In making the determination that the organization is bona fide, the office may request
the school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the organization is recognized in Minnesota;
new text end

new text begin (11) programs in the fine arts provided by organizations exempt from taxation under
section 290.05 and registered with the attorney general under chapter 309. For purposes of
this clause, "fine arts" means activities resulting in artistic creation or artistic performance
of works of the imagination which are engaged in for the primary purpose of creative
expression rather than commercial sale, vocational or career advancement, or employment.
In making this determination the office may seek the advice and recommendation of the
Minnesota Board of the Arts; or
new text end

new text begin (12) classes, courses, or programs intended to fulfill the continuing education
requirements for a bona fide licensure or certification in a profession that have been approved
by a legislatively or judicially established board or agency responsible for regulating the
practice of the profession or by an industry-specific certification entity and that are offered
exclusively to individuals with the professional licensure or certification. In making the
determination that the licensure or certification is bona fide, the office may request the
school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the licensure and certification is recognized in
Minnesota.
new text end

Sec. 21.

Minnesota Statutes 2024, section 136A.821, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Vocational. new text end

new text begin "Vocational" means education or training for skills used in the
labor market.
new text end

Sec. 22.

Minnesota Statutes 2024, section 136A.821, is amended by adding a subdivision
to read:

new text begin Subd. 22. new text end

new text begin Trade union. new text end

new text begin "Trade union" means an organization of workers in a skilled
occupation who act together to secure all members favorable wages, hours, or other working
conditions.
new text end

Sec. 23.

Minnesota Statutes 2024, section 136A.821, is amended by adding a subdivision
to read:

new text begin Subd. 23. new text end

new text begin Eligible training provider. new text end

new text begin "Eligible training provider" has the meaning given
in Code of Federal Regulations, title 20, section 680.410.
new text end

Sec. 24.

Minnesota Statutes 2024, section 136A.821, is amended by adding a subdivision
to read:

new text begin Subd. 24. new text end

new text begin Eligible training provider list. new text end

new text begin "Eligible training provider list" means the list
of eligible training providers that the state must maintain under Code of Federal Regulations,
title 20, section 680.430.
new text end

Sec. 25.

Minnesota Statutes 2024, section 136A.822, subdivision 3, is amended to read:

Subd. 3.

Refunds.

If a contract is deleted text begin deemed deleted text end new text begin determined by the office to be new text end unenforceable
under subdivision 2, a private career school must refund tuition, fees, and other charges
received from a student or on behalf of a student within 30 days of receiving written
notification and demand for refund from the office.

Sec. 26.

Minnesota Statutes 2024, section 136A.822, subdivision 6, is amended to read:

Subd. 6.

Bond.

(a) No license shall be issued to any private career school with a physical
presence within the state of Minnesota for any program, unless the applicant files with the
office a continuous corporate surety bond written by a company authorized to do business
in Minnesota conditioned upon the faithful performance of all contracts and agreements
with students made by the applicant.

(b)(1) The amount of the surety bond shall be ten percent of the preceding year's net
revenue from student tuition, fees, and other required institutional charges collected, but in
no event less than $10,000, except that a private career school may deposit a greater amount
at its own discretion. A private career school in each annual application for licensure must
compute the amount of the surety bond and verify that the amount of the surety bond complies
with this subdivision. A private career school that operates at two or more locations may
combine net revenue from student tuition, fees, and other required institutional charges
collected for all locations for the purpose of determining the annual surety bond requirement.
The net revenue from tuition and fees used to determine the amount of the surety bond
required for a private career school having a license for the sole purpose of recruiting students
in Minnesota shall be only that paid to the private career school by the students recruited
from Minnesota.

(2) A person required to obtain a private career school license due to the use of
deleted text begin "academy," "institute," deleted text end "college deleted text begin , deleted text end " or "university" in its name and which is also licensed by
another state agency or board, except not including those schools licensed exclusively in
order to participate in state grants or SELF loan financial aid programs, shall be required
to provide a school bond of $10,000.

(c) The bond shall run to the state of Minnesota and to any person who may have a cause
of action against the applicant arising at any time after the bond is filed and before it is
canceled for breach of any contract or agreement made by the applicant with any student.
The aggregate liability of the surety for all breaches of the conditions of the bond shall not
exceed the principal sum deposited by the private career school under paragraph (b). The
surety of any bond may cancel it upon giving 60 days' notice in writing to the office and
shall be relieved of liability for any breach of condition occurring after the effective date
of cancellation.

(d) In lieu of bond, the applicant may deposit with the commissioner of management
and budget a sum equal to the amount of the required surety bond in cash, an irrevocable
letter of credit issued by a financial institution equal to the amount of the required surety
bond, or securities as may be legally purchased by savings banks or for trust funds in an
aggregate market value equal to the amount of the required surety bond.

(e) Failure of a private career school to post and maintain the required surety bond or
deposit under paragraph (d) may result in denial, suspension, or revocation of the school's
license.

Sec. 27.

Minnesota Statutes 2024, section 136A.822, subdivision 8, is amended to read:

Subd. 8.

Minimum standards.

A license shall be issued if the office first determines:

(1) that the applicant has a sound financial condition with sufficient resources available
to:

(i) meet the private career school's financial obligations;

(ii) refund all tuition and other charges, within deleted text begin a reasonable period of time deleted text end new text begin 60 days new text end , in
the event of dissolution of the private career school or in the event of any justifiable claims
for refund against the private career school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the private career school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment and
the necessary number of work stations to prepare adequately the students currently enrolled,
and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to
provide the educational programs contemplated;

(4) that the private career school has an organizational framework with administrative
and instructional personnel to provide the programs and services it intends to offer;

(5) that the quality and content of each occupational course or program of study provides
education and adequate preparation to enrolled students for entry level positions in the
occupation for which prepared;

(6) that the premises and conditions where the students work and study and the student
living quarters which are owned, maintained, recommended, or approved by the applicant
are sanitary, healthful, and safe, as evidenced by certificate of occupancy issued by the
municipality or county where the private career school is physically situated, a fire inspection
by the local or state fire marshal, or another verification deemed acceptable by the office;

(7) that the contract or enrollment agreement used by the private career school complies
with the provisions in section 136A.826;

(8) that contracts and agreements do not contain a wage assignment provision or a
confession of judgment clause;

(9) that there has been no adjudication of fraud or misrepresentation in any criminal,
civil, or administrative proceeding in any jurisdiction against the private career school or
its owner, officers, agents, or sponsoring organization;

(10) that the private career school or its owners, officers, agents, or sponsoring
organization has not had a license revoked under section 136A.829 or its equivalent in other
states or has closed the institution prior to all students, enrolled at the time of the closure,
completing their program within two years of the effective date of the revocation; and

(11) that the school includes a joint and several liability provision for torts and compliance
with the requirements of sections 136A.82 to 136A.834 in any contract effective after July
1, 2026, with any individual, entity, or postsecondary school located in another state for the
purpose of providing educational or training programs or awarding postsecondary credits
to Minnesota residents that may be applied to a program.

Sec. 28.

Minnesota Statutes 2024, section 136A.822, subdivision 13, is amended to read:

Subd. 13.

Private career schools licensed by another state agency or board.

A private
career school required to obtain a deleted text begin private career school deleted text end license deleted text begin due deleted text end to deleted text begin the use of "academy,"
"institute," "college," or "university" in its name or licensed for the purpose of participating deleted text end new text begin
participate new text end in state financial aid deleted text begin under chapter 136A deleted text end new text begin or be listed on the eligible training
provider list new text end , and which is also licensed by another state agency or board shall be required
to satisfy only the requirements of subdivisions 4, clauses (1), (2), (3), (5), (7), (8), and (10);
5; 6, paragraph (b), clause (2); 8, clauses (1), (4), (7), (8), and (9); 9; 10; and 12. If a school
is licensed to participate in state financial aid under this chapter, the school must follow the
refund policy in section 136A.827, even if that section conflicts with the refund policy of
the licensing agency or board. A distance education private career school located in another
state, or a school licensed to recruit Minnesota residents for attendance at a school outside
of this state, or a school licensed by another state agency as its primary licensing body, may
continue to use the school's name as permitted by its home state or its primary licensing
body.

Sec. 29.

Minnesota Statutes 2024, section 136A.824, subdivision 1, is amended to read:

Subdivision 1.

Initial licensure fee.

(a) The office processing fee for an initial licensure
application is:

(1) deleted text begin $2,500 deleted text end new text begin $3,730 new text end for a private career school that will offer no more than one program
during its first year of operation;

(2) deleted text begin $750 deleted text end new text begin $1,500 new text end for a private career school licensed exclusively due to the use of the
term "college deleted text begin , deleted text end " new text begin or new text end "university deleted text begin , deleted text end " deleted text begin "academy," or "institute" deleted text end in its name, or deleted text begin licensed exclusively
in order deleted text end to participate in state deleted text begin grant or SELF loan deleted text end financial aid deleted text begin programs deleted text end new text begin or be listed on the
eligible training provider list new text end ; and

(3) deleted text begin $2,500 deleted text end new text begin $3,730 new text end , plus $500 for each additional program offered by the private career
school, for a private career school during its first year of new text begin licensed new text end operation.

(b) In addition to the fee under paragraph (a), a fee of $600 must be paid for an initial
application that: (1) has had four revisions, corrections, amendment requests, or application
reminders for the same application or licensure requirement; or (2) cumulatively has had
six revisions, corrections, amendment requests, or application reminders for the same license
application and the private career school seeks to continue with the application process with
additional application submissions. If this fee is paid, the private career school may submit
two final application submissions for review prior to application denial under section
136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive
questions or clarifications initiated by the school before the submission of the application,
initial interpretation questions or inquiries from the office regarding a completed application,
and initial requests from the office for verification or validation of a completed application.

Sec. 30.

Minnesota Statutes 2024, section 136A.824, subdivision 2, is amended to read:

Subd. 2.

Renewal licensure fee; late fee.

(a) The office processing fee for a renewal
licensure application is:

(1) for a private career school deleted text begin that offers one program deleted text end , the license renewal fee is deleted text begin $1,150 deleted text end new text begin
$3,160 new text end ; new text begin and
new text end

deleted text begin (2) for a private career school that offers more than one program, the license renewal
fee is $1,150, plus $200 for each additional program with a maximum renewal licensing
fee of $2,000;
deleted text end

deleted text begin (3) for a private career school licensed exclusively due to the use of the term "college,"
"university," "academy," or "institute" in its name, the license renewal fee is $750; and
deleted text end

deleted text begin (4) deleted text end new text begin (2) new text end for a private career school licensed by another state agency and also licensed
with the office exclusively in order to participate in state deleted text begin student deleted text end new text begin financial new text end aid deleted text begin programs deleted text end new text begin or
be listed on the eligible training provider list new text end , the license renewal fee is deleted text begin $750 deleted text end new text begin $1,500 new text end .

(b) If a license renewal application is not received by the office by deleted text begin the close of business
at least 60 days before deleted text end the expiration of the current license, a late fee of $100 per business
day, not to exceed $3,000, shall be assessed.

(c) In addition to the fee under paragraph (a), a fee of $600 must be paid for a renewal
application that: (1) has had four revisions, corrections, amendment requests, or application
reminders for the same application or licensure requirement; or (2) cumulatively has had
six revisions, corrections, amendment requests, or application reminders for the same license
application and the private career school seeks to continue with the application process with
additional application submissions. If this fee is paid, the private career school may submit
two final application submissions for review prior to application denial under section
136A.829, subdivision 1, clause (2). This provision excludes from its scope nonrepetitive
questions or clarifications initiated by the school before the submission of the application,
initial interpretation questions or inquiries from the office regarding a completed application,
and initial requests from the office for verification or validation of a completed application.

Sec. 31.

Minnesota Statutes 2024, section 136A.824, subdivision 6, is amended to read:

Subd. 6.

Solicitor permit fee.

The solicitor permit fee is deleted text begin $350 deleted text end new text begin $500 new text end and must be paid
annually.

Sec. 32.

Minnesota Statutes 2024, section 136A.824, subdivision 7, is amended to read:

Subd. 7.

Multiple location fee.

Private career schools wishing to operate at multiple
locations must pay new text begin the greater of new text end :

(1) deleted text begin $250 deleted text end new text begin $500 new text end per location deleted text begin , for locations two to five; and deleted text end new text begin ; or
new text end

(2) deleted text begin an additional $100 for each location over five. deleted text end new text begin the actual cost of travel expenses,
lodging, and customary meals incurred for an in-person site visit, should the office determine
one is necessary.
new text end

Sec. 33.

Minnesota Statutes 2024, section 136A.833, is amended to read:

136A.833 EXEMPTIONS.

Subdivision 1.

Application for exemptions.

A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 for the school and all of its programs or some
of its programs must apply to the office to establish that the school or program meets the
requirements of an exemption. An exemption for the school or program expires two years
from the date of approval or when a school adds a new program or makes a modification
equal to or greater than 25 percent to an existing educational program. If a school is
reapplying for an exemption, the application must be submitted to the office 90 days before
the current exemption expires. new text begin If a school fails to apply within 90 days of expiration, the
school is subject to fees and penalties under sections 136A.831 and 136A.832. new text end This
exemption shall not extend to any school that uses any publication or advertisement that is
not truthful and gives any false, fraudulent, deceptive, inaccurate, or misleading impressions
about the school or its personnel, programs, services, or occupational opportunities for its
graduates for promotion and student recruitment. Exemptions denied under this section are
subject to appeal under section 136A.829. If an appeal is initiated, the denial of the exemption
is not effective until the final determination of the appeal, unless immediate effect is ordered
by the court.

Subd. 2.

Exemption reasons.

Sections 136A.821 to 136A.832 shall not apply to the
following:

deleted text begin (1) public postsecondary institutions;
deleted text end

deleted text begin (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
deleted text end

deleted text begin (3) postsecondary institutions exempt from registration under sections 136A.653,
subdivisions 1b, 2, 3, and 3a; 136A.657; and 136A.658;
deleted text end

deleted text begin (4) private schools complying with the requirements of section 120A.22, subdivision 4;
deleted text end

deleted text begin (5) courses taught to students in an apprenticeship program registered by the United
States Department of Labor or Minnesota Department of Labor and taught by or required
by a trade union. A trade union is an organization of workers in the same skilled occupation
or related skilled occupations who act together to secure all members favorable wages,
hours, and other working conditions;
deleted text end

deleted text begin (6) private career schools exclusively engaged in training physically or mentally disabled
persons;
deleted text end

deleted text begin (7) private career schools licensed or approved by boards authorized under Minnesota
law to issue licenses for training programs except private career schools required to obtain
a private career school license due to the use of "academy," "institute," "college," or
"university" in their names;
deleted text end

deleted text begin (8) private career schools and educational programs, or training programs, contracted
for by persons, firms, corporations, government agencies, or associations, for the training
of their own employees, for which no fee is charged the employee, regardless of whether
that fee is reimbursed by the employer or third party after the employee successfully
completes the training;
deleted text end

deleted text begin (9) deleted text end new text begin (1) new text end private career schools engaged exclusively in the teaching of deleted text begin purely deleted text end avocational new text begin
programs that are engaged primarily for personal development new text end , deleted text begin recreational deleted text end new text begin recreation new text end , or
remedial deleted text begin subjects that deleted text end new text begin education, and new text end are not deleted text begin advertised or maintained deleted text end new text begin generally intended new text end
for vocational or career advancement, including adult basic education, new text begin exercise or fitness
teacher programs, modeling, or acting, new text end as determined by the office deleted text begin except private career
schools required to obtain a private career school license due to the use of "college" or
"university" in their names deleted text end ;

deleted text begin (10) classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership and not available to the
public. In making the determination that the organization is bona fide, the office may request
the school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the organization is recognized in Minnesota;
deleted text end

deleted text begin (11) programs in the fine arts provided by organizations exempt from taxation under
section 290.05 and registered with the attorney general under chapter deleted text end deleted text begin 309 deleted text end deleted text begin . For the purposes
of this clause, "fine arts" means activities resulting in artistic creation or artistic performance
of works of the imagination which are engaged in for the primary purpose of creative
expression rather than commercial sale, vocational or career advancement, or employment.
In making this determination the office may seek the advice and recommendation of the
Minnesota Board of the Arts;
deleted text end

deleted text begin (12) classes, courses, or programs intended to fulfill the continuing education
requirements for a bona fide licensure or certification in a profession, that have been approved
by a legislatively or judicially established board or agency responsible for regulating the
practice of the profession or by an industry-specific certification entity, and that are offered
deleted text end deleted text begin exclusively to individuals with the professional licensure or certification. In making the
determination that the licensure or certification is bona fide, the office may request the
school provide three certified letters from persons that qualify as evaluators under section
136A.828, subdivision 3, paragraph (l), that the licensure and certification is recognized in
Minnesota;
deleted text end

deleted text begin (13) review classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing, certification, or entrance
examinations and does not include the instruction to prepare students for that license,
occupation, certification, or exam;
deleted text end

deleted text begin (14) deleted text end new text begin (2) new text end classes, courses, or programs providing deleted text begin 16 deleted text end new text begin 40 new text end or fewer clock hours of instruction;

deleted text begin (15) classes, courses, or programs providing instruction in personal development that is
not advertised or maintained for vocational or career advancement, modeling, or acting;
deleted text end

deleted text begin (16) private career schools with no physical presence in Minnesota engaged exclusively
in offering distance instruction that are located in and regulated by other states or jurisdictions
if the distance education instruction does not include internships, externships, field
placements, or clinical placements for residents of Minnesota; and
deleted text end

deleted text begin (17) deleted text end new text begin (3) new text end private career schools providing deleted text begin exclusively deleted text end training, instructional programs,
or courses where tuition, fees, and any other charges deleted text begin , regardless of payment or reimbursement
method, deleted text end for a student to participate do not exceed deleted text begin $100. deleted text end new text begin $500; and
new text end

new text begin (4) private career schools enrolling ten or fewer students per year if tuition, fees, and
any other charges for a student to participate do not exceed $3,000.
new text end

Sec. 34.

Minnesota Statutes 2024, section 136A.834, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

(a) A program is exempt from the provisions of sections
136A.821 to 136A.832 if it is:

(1) offered by a deleted text begin private career deleted text end school or any department or branch of a deleted text begin private career deleted text end
school that is substantially owned, operated, or supported by a bona fide church or religious
organization;

(2) primarily designed for, aimed at, and attended by persons who sincerely hold or seek
to learn the particular religious faith or beliefs of that church or religious organization; and

(3) primarily intended to prepare its students to become ministers of, to enter into some
other vocation closely related to, or to conduct their lives in consonance with the particular
faith of that church or religious organization.

(b) Any deleted text begin private career deleted text end school or any department or branch of a private career school is
exempt from the provisions of sections 136A.821 to 136A.832 if all of its programs are
exempt under paragraph (a).

Sec. 35.

Minnesota Statutes 2024, section 136A.834, subdivision 5, is amended to read:

Subd. 5.

Application.

A school that seeks an exemption from the provisions of sections
136A.82 to 136A.834 must apply to the office to establish that the school meets the
requirements of an exemption. An exemption expires two years from the date of approval
or when a school adds a new program or makes a modification equal to or greater than 25
percent to an existing educational program. If a school is reapplying for an exemption, the
application must be submitted to the office 90 days before the current exemption expires. new text begin
If a school fails to apply within 90 days of expiration, the school is subject to the fees and
penalties under sections 136A.831 and 136A.832.
new text end

Sec. 36. new text begin REVISOR INSTRUCTION; HUNGER-FREE CAMPUS DESIGNATION.
new text end

new text begin The revisor of statutes must renumber Minnesota Statutes, section 135A.137, as
Minnesota Statutes, section 136A.912. The revisor must also make cross-reference changes
consistent with the renumbering.
new text end

Sec. 37. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, sections 136A.69, subdivisions 3 and 5; and 136A.824,
subdivisions 3 and 5, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 25-00543

136A.69 FEES.

Subd. 3.

Degree or nondegree program addition fee.

The office processing fees for adding a degree or nondegree program are as follows:

nondegree program that is part of existing degree	-0-
nondegree program that is not a part of an existing degree	$250 each
majors, specializations, emphasis areas, concentrations, and other similar areas of emphasis	$250 each
associate degrees	$500 each
baccalaureate degrees	$500 each
master's degrees	$750 each
doctorate degrees	$2,000 each

Subd. 5.

Modification fee.

The fee for modification of any existing degree or nondegree program is $100 and is due if there is:

(1) an increase or decrease of 25 percent or more from the original date of program approval, in clock hours, credit hours, or calendar length of an existing degree or nondegree program;

(2) a change in academic measurement from clock hours to credit hours or vice versa; or

(3) an addition or alteration of courses that represent a 25 percent change or more in the objectives, content, or methods of delivery.

136A.824 FEES.

Subd. 3.

Program addition fee.

The office processing fee for adding a program to those that are currently offered by the private career school is $500 per program.

Subd. 5.

Modification fee.

The fee for modification of any existing program is $100 and is due if there is:

(1) an increase or decrease of 25 percent or more, from the original date of program approval, in clock hours, credit hours, or calendar length of an existing program;

(2) a change in academic measurement from clock hours to credit hours or vice versa; or

(3) an addition or alteration of courses that represent a 25 percent change or more in the objectives, content, or methods of delivery.