HF 3392

as introduced - 91st Legislature (2019 - 2020) Posted on 02/18/2020 11:27am

A bill for an act
relating to higher education; providing for policy changes for the Office of Higher
Education, including financial aid, institutional approval, and the Minnesota college
savings plan; requiring a report; amending Minnesota Statutes 2018, sections
135A.15, subdivision 1a; 136A.01, subdivision 1; 136A.031, subdivision 3;
136A.121, by adding a subdivision; 136A.125, subdivision 3; 136A.1275,
subdivision 1; 136A.1701, subdivision 4; 136A.1791, subdivisions 1, 3; 136A.1795,
subdivision 4; 136A.65, subdivisions 4, 7, 8; 136A.657, subdivisions 1, 2, 3;
136A.822, subdivision 8; 136A.827, subdivision 4; 136A.829, subdivision 1;
136A.833, subdivision 1; 136A.834, subdivisions 1, 2; 136G.01; 136G.03,
subdivisions 8, 10, 11, 20, 22, 29, 30, 31, 32, by adding subdivisions; 136G.05,
subdivisions 2, 5, 7, 10; 136G.09, subdivision 8; 136G.11, subdivisions 11, 13;
136G.13; 136G.14; proposing coding for new law in Minnesota Statutes, chapter
136A; repealing Minnesota Statutes 2018, sections 124D.09, subdivision 10a;
136G.03, subdivision 4; 136G.05, subdivision 6.

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

ARTICLE 1

OFFICE OF HIGHER EDUCATION

Section 1.

Minnesota Statutes 2018, section 135A.15, subdivision 1a, is amended to read:

Subd. 1a.

Sexual assault definition.

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

new text begin (b) "Incident" means one report of sexual assault to a postsecondary institution, regardless
of the number of complainants included in the report, the number of respondents included
in the report, and whether or not the identity of any party is known by the reporting
postsecondary institution. Incident encompasses all nonconsensual events included within
one report if multiple events have been identified.
new text end

new text begin (c) new text end "Sexual assault" means rape, sex offenses - fondling, sex offenses - incest, or sex
offenses - statutory rape as defined in Code of Federal Regulations, title 34, part 668, subpart
D, appendix A, as amended.

Sec. 2.

Minnesota Statutes 2018, section 136A.01, subdivision 1, is amended to read:

Subdivision 1.

Creation.

The Office new text begin of Higher Education, which may also be known
as the Minnesota Office of Higher Education, new text end is created with a commissioner appointed by
the governor with the advice and consent of the senate and serving at the pleasure of the
governor.

Sec. 3.

Minnesota Statutes 2018, section 136A.031, subdivision 3, is amended to read:

Subd. 3.

Student Advisory Council.

(a) A Student Advisory Council (SAC) to the
office is established. The members of SAC shall include: the chair of the University of
Minnesota student senate; the state chair of the Minnesota State University Student
Association; the president of the Minnesota State College Student Association and an officer
of the Minnesota State College Student Association, one in a community college course of
study and one in a technical college course of study; a student who is enrolled in a private
nonprofit postsecondary institution, to be elected by students enrolled in Minnesota Private
College Council institutions; deleted text begin and deleted text end a student who is enrolled in a private for-profit
postsecondary institution, to be elected by students enrolled in Minnesota deleted text begin Career College
Association institutions deleted text end new text begin private career schools; and a student who is enrolled in a Minnesota
tribal college to be elected by students enrolled in Minnesota tribal colleges new text end . If students
from the Minnesota Private College Council institutions do not elect a representative, the
Minnesota Private College Council must appoint the private nonprofit representative. deleted text begin If
students from the Minnesota deleted text end deleted text begin Career College Association institutions do not elect a
representative, the Minnesota Career College Association must appoint the private for-profit
representative. deleted text end A member may be represented by a student designee who attends an institution
from the same system that the absent member represents. The SAC shall select one of its
members to serve as chair.

(b) The office shall inform the SAC of all matters related to student issues under
consideration. The SAC shall report to the office quarterly and at other times that the SAC
considers desirable. The SAC shall determine its meeting times, but it shall also meet with
the office within 30 days after the commissioner's request for a meeting.

(c) The SAC shall:

(1) bring to the attention of the office any matter that the SAC believes needs the attention
of the office;

(2) make recommendations to the office as it finds appropriate; and

(3) approve student appointments by the office for each advisory group as provided in
subdivision 4.

Sec. 4.

new text begin [136A.032] COMMUNITY AND COMMISSIONER PARTICIPATION IN
POSTSECONDARY EDUCATION OF AMERICAN INDIANS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The term used in this section has the meaning given in
this subdivision.
new text end

new text begin (b) "Tribal Nations Education Committee" means the committee established through
tribal directive that the commissioner seeks consultation with on American Indian
postsecondary education programs, policy, and all matters related to educating Minnesota's
American Indian postsecondary students. Membership in the Tribal Nations Education
Committee is at the sole discretion of the committee and nothing in this section gives the
commissioner authority to dictate committee membership.
new text end

new text begin Subd. 2. new text end

new text begin American Indian community involvement. new text end

new text begin The commissioner must provide
for the maximum involvement of the Tribal Nations Education Committee, American Indian
postsecondary students, and representatives of community groups in the establishment of
programs, formation of policies, and all other matters related to the postsecondary education
of Minnesota's American Indian students.
new text end

new text begin Subd. 3. new text end

new text begin Consultation with the Tribal Nations Education Committee. new text end

new text begin (a) The
commissioner shall seek consultation with the Tribal Nations Education Committee regarding
programs, policies, and all other matters related to the postsecondary education of Minnesota's
American Indian students.
new text end

new text begin (b) Nothing in this subdivision prevents the commissioner from seeking consultation
with individual tribal nations.
new text end

Sec. 5.

new text begin [136A.096] FINANCIAL AID GOALS.
new text end

new text begin The legislature directs the commissioner of the Office of Higher Education, in
coordination with the Minnesota Department of Education and the Minnesota Association
of Secondary School Principals, to set an annual goal for the percentage of Minnesota's
high school seniors completing the Free Application for Federal Student Aid (FAFSA).
new text end

Sec. 6.

Minnesota Statutes 2018, section 136A.121, is amended by adding a subdivision
to read:

new text begin Subd. 21. new text end

new text begin Institutional prohibition. new text end

new text begin An institution receiving financial aid under this
section must not suspend or withdraw a student from class attendance and resources during
a period of instruction due to an unpaid student account balance unless the student is eligible
for a full tuition and fee refund.
new text end

Sec. 7.

Minnesota Statutes 2018, section 136A.125, subdivision 3, is amended to read:

Subd. 3.

Eligible institution.

A Minnesota public postsecondary institution, a Minnesota
private, baccalaureate deleted text begin degree granting deleted text end new text begin degree-granting new text end college or university, deleted text begin or deleted text end a Minnesota
nonprofit two-year vocational technical school granting associate degrees new text begin , or a Minnesota
postsecondary institution offering only graduate or professional degrees new text end is eligible to receive
child care funds from the office and disburse them to eligible students.

Sec. 8.

Minnesota Statutes 2018, section 136A.1275, subdivision 1, is amended to read:

Subdivision 1.

Establishment.

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

(b) "Shortage area" means a license field or economic development region within
Minnesota defined as a shortage area by the deleted text begin Department of Education deleted text end new text begin Professional Educator
Licensing and Standards Board in coordination with the commissioner new text end using data collected
deleted text begin for the teacher supply and demand report under section 127A.05, subdivision 6, or other deleted text end new text begin
from new text end surveys conducted by the deleted text begin Department of Education deleted text end new text begin Professional Educator Licensing
and Standards Board new text end that provide indicators for teacher supply and demand.

Sec. 9.

Minnesota Statutes 2018, section 136A.1701, subdivision 4, is amended to read:

Subd. 4.

Terms and conditions of loans.

(a) The office may loan money upon such
terms and conditions as the office may prescribe.

(b) The maximum loan amount to students deleted text begin enrolled in a bachelor's degree program,
postbaccalaureate, or graduate program deleted text end must be determined annually by the office. deleted text begin For all
other eligible students, the principal amount of the loan must not exceed $7,500 per grade
level. deleted text end new text begin 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. new text end 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. deleted text begin The
cumulative SELF loan debt must not exceed the borrowing maximums in paragraph (c).
deleted text end

(c) deleted text begin (1) deleted text end The cumulative borrowing maximums must be determined annually by the office
deleted text begin for students enrolled in a bachelor's degree program or postbaccalaureate program deleted text end new text begin and are
defined based on program enrollment new text end . 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 begin (2) For all other eligible students, the cumulative borrowing maximums are:
deleted text end

deleted text begin (i) grade level 1, $7,500;
deleted text end

deleted text begin (ii) grade level 2, $15,000;
deleted text end

deleted text begin (iii) grade level 3, $22,500;
deleted text end

deleted text begin (iv) grade level 4, $30,000; and
deleted text end

deleted text begin (v) grade level 5, $37,500.
deleted text end

Sec. 10.

Minnesota Statutes 2018, section 136A.1791, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

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

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

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

(d) "Teacher" means an individual holding a new text begin Tier 3 or higher new text end teaching license issued by
the Professional Educator Licensing and Standards Board who is employed by a school
district to provide classroom instruction.

(e) "Teacher shortage area" means:

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

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

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

Sec. 11.

Minnesota Statutes 2018, section 136A.1791, subdivision 3, is amended to read:

Subd. 3.

Use of report on teacher shortage areas.

The deleted text begin commissioner of education deleted text end
new text begin Professional Educator Licensing and Standards Board new text end shall use the teacher supply and
demand report to the legislature new text begin or other surveys conducted by the Professional Educator
Licensing and Standards Board that provide indicators for teacher supply and demand new text end to
identify the licensure fields and economic development regions in Minnesota experiencing
a teacher shortage.

Sec. 12.

Minnesota Statutes 2018, section 136A.1795, subdivision 4, is amended to read:

Subd. 4.

Loan forgiveness.

(a) The commissioner may select deleted text begin a maximum of five deleted text end new text begin eligible new text end
applicants each year for participation in the loan forgiveness program, within the limits of
available funding. Applicants are responsible for securing their own qualified educational
loans.

(b) The commissioner must select participants based on their suitability for practice
serving the designated rural area, as indicated by experience or training. The commissioner
must give preference to applicants closest to completing their training.

(c) The commissioner must make annual disbursements directly to the participant of
$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
for each year that a participant meets the service obligation required under subdivision 3,
paragraph (b), up to a maximum of five years.

(d) Before receiving loan repayment disbursements and as requested, the participant
must complete and return to the commissioner a confirmation of practice form provided by
the commissioner verifying that the participant is practicing as required under subdivision
2, paragraph (a). The participant must provide the commissioner with verification that the
full amount of loan repayment disbursement received by the participant has been applied
toward the designated loans. After each disbursement, verification must be received by the
commissioner and approved before the next loan repayment disbursement is made.

(e) Participants who move their practice remain eligible for loan repayment as long as
they practice as required under subdivision 2, paragraph (a).

Sec. 13.

Minnesota Statutes 2018, section 136A.65, subdivision 4, is amended to read:

Subd. 4.

Criteria for approval.

(a) A school applying to be registered and to have its
degree or degrees and name approved must substantially meet the following criteria:

(1) the school has an organizational framework with administrative and teaching personnel
to provide the educational programs offered;

(2) the school has financial resources sufficient to meet the school's financial obligations,
including refunding tuition and other charges consistent with its stated policy if the institution
is dissolved, or if claims for refunds are made, to provide service to the students as promised,
and to provide educational programs leading to degrees as offered;

(3) the school operates in conformity with generally accepted accounting principles
according to the type of school;

(4) the school provides an educational program leading to the degree it offers;

(5) the school provides appropriate and accessible library, laboratory, and other physical
facilities to support the educational program offered;

(6) the school has a policy on freedom or limitation of expression and inquiry for faculty
and students which is published or available on request;

(7) the school uses only publications and advertisements which are truthful and do not
give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school,
its personnel, programs, services, or occupational opportunities for its graduates for promotion
and student recruitment;

(8) the school's compensated recruiting agents who are operating in Minnesota identify
themselves as agents of the school when talking to or corresponding with students and
prospective students;

(9) the school provides information to students and prospective students concerning:

(i) comprehensive and accurate policies relating to student admission, evaluation,
suspension, and dismissal;

(ii) clear and accurate policies relating to granting credit for prior education, training,
and experience and for courses offered by the school;

(iii) current schedules of fees, charges for tuition, required supplies, student activities,
housing, and all other standard charges;

(iv) policies regarding refunds and adjustments for withdrawal or modification of
enrollment status; and

(v) procedures and standards used for selection of recipients and the terms of payment
and repayment for any financial aid program; deleted text begin and
deleted text end

(10) the school must not withhold a student's official transcript because the student is
in arrears or in default on any loan issued by the school to the student if the loan qualifies
as an institutional loan under United States Code, title 11, section 523(a)(8)(b) deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) the school must not require mandatory predispute arbitration clauses with students.
new text end

(b) An application for degree approval must also include:

(i) title of degree and formal recognition awarded;

(ii) location where such degree will be offered;

(iii) proposed implementation date of the degree;

(iv) admissions requirements for the degree;

(v) length of the degree;

(vi) projected enrollment for a period of five years;

(vii) the curriculum required for the degree, including course syllabi or outlines;

(viii) statement of academic and administrative mechanisms planned for monitoring the
quality of the proposed degree;

(ix) statement of satisfaction of professional licensure criteria, if applicable;

(x) documentation of the availability of clinical, internship, externship, or practicum
sites, if applicable; and

(xi) statement of how the degree fulfills the institution's mission and goals, complements
existing degrees, and contributes to the school's viability.

Sec. 14.

Minnesota Statutes 2018, section 136A.65, subdivision 7, is amended to read:

Subd. 7.

Conditional approval.

(a) The office may grant a school a one-year conditional
approval for a degree or use of a term in its name if doing so would be in the best interests
of currently enrolled students or prospective students. Conditional approval of a degree or
use of a term under this paragraph must not exceed a period of three years.

(b) The office may grant new schools new text begin physically located in Minnesota new text end and new text begin new new text end programs
a one-year conditional approval for degrees or use of a term in its name to allow the school
the opportunity to apply for and receive accreditation as required in subdivision 1a.
Conditional approval of a school or program under this paragraph must not exceed a period
of five years. A new school or program granted conditional approval may be allowed to
continue in order to complete an accreditation process upon terms and conditions the office
determines.

(c) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school the opportunity to apply for and receive
accreditation as required in subdivision 1a if the school's accrediting agency is no longer
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

(d) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school to change to a different accrediting agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.

Sec. 15.

Minnesota Statutes 2018, section 136A.65, subdivision 8, is amended to read:

Subd. 8.

Disapproval of registration appeal.

(a) new text begin By giving written notice and reasons
to the school, new text end the office may deleted text begin refuse to renew, deleted text end new text begin :
new text end

new text begin (1) new text end revoke, deleted text begin or deleted text end suspend new text begin , or refuse to renew new text end registration deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) refuse new text end approval of a school's degree deleted text begin , or deleted text end new text begin ; and
new text end

new text begin (3) refuse approval of new text end use of a regulated term in its name deleted text begin by giving written notice and
reasons to the school deleted text end .

(b) Reasons for revocation or suspension of registration or approval may be for one or
more of the following reasons:

(1) violating the provisions of sections 136A.61 to 136A.71;

(2) providing false, misleading, or incomplete information to the office;

(3) presenting information about the school which is false, fraudulent, misleading,
deceptive, or inaccurate in a material respect to students or prospective students; deleted text begin or
deleted text end

(4) refusing to allow reasonable inspection or to supply reasonable information after a
written request by the office has been received deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
untrustworthiness, or financial irresponsibility, in the conduct of business in this state or
elsewhere; or
new text end

new text begin (6) having been administratively or judicially determined to have committed fraud or
any other material violation of law involving federal, state, or local government funds.
new text end

(c) Any order refusing, revoking, or suspending a school's registration, approval of a
school's degree, or use of a regulated term in the school's name is appealable in accordance
with chapter 14. The request must be in writing and made to the office within 30 days of
the date the school is notified of the action of the office. If a school has been operating and
its registration has been revoked, suspended, or refused by the office, the order is not effective
until the final determination of the appeal, unless immediate effect is ordered by the court.

Sec. 16.

Minnesota Statutes 2018, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

deleted text begin Any deleted text end new text begin (a) A program is exempt from the provisions of sections
136A.61 to 136A.71 if it is:
new text end

new text begin (1) offered by a new text end school or any department or branch of a school deleted text begin (a) which deleted text end new text begin that new text end is
substantially owned, operated new text begin , new text end or supported by a bona fide church or religious organization;
deleted text begin (b) whose programs are
deleted text end

new text begin (2) new text end 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

deleted text begin (c) whose programs are deleted text end new text begin (3) new text end 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 deleted text begin , deleted text end new text begin .
new text end

deleted text begin is exempt from the provisions of sections 136A.61 to 136A.834.
deleted text end

new text begin (b) A school or a department or branch of a school is exempt from the provisions of
sections 136A.61 to 136A.71 if all of its programs are exempt under paragraph (a).
new text end

Sec. 17.

Minnesota Statutes 2018, section 136A.657, subdivision 2, is amended to read:

Subd. 2.

Limitation.

new text begin (a) new text end This exemption shall not extend to any new text begin program or new text end school or
to any department or branch of a school deleted text begin which deleted text end new text begin that new text end through advertisements or solicitations
represents to any students or prospective students that the school, its aims, goals, missions
or purposes or its programs are different from those described in subdivision 1.

new text begin (b) new text end This exemption shall not extend to any school deleted text begin which deleted text end new text begin that new text end represents to any student
or prospective student that the major purpose of its programs is to new text begin :
new text end

new text begin (1) new text end prepare the student for a vocation not closely related to that particular religious faith deleted text begin , deleted text end new text begin ; new text end
or deleted text begin to
deleted text end

new text begin (2) new text end provide the student with a general educational program recognized by other schools
or the broader educational, business or social community as being substantially equivalent
to the educational programs offered by schools or departments or branches of schools deleted text begin which deleted text end new text begin
that new text end are not exempt from sections 136A.61 to 136A.71, and rules adopted pursuant thereto.

Sec. 18.

Minnesota Statutes 2018, section 136A.657, subdivision 3, is amended to read:

Subd. 3.

Scope.

Nothing in sections 136A.61 to deleted text begin 136A.834 deleted text end new text begin 136A.71 new text end , or the rules adopted
pursuant thereto, shall be interpreted as permitting the office to determine the truth or falsity
of any particular set of religious beliefs.

Sec. 19.

Minnesota Statutes 2018, 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 a reasonable period of time, 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; deleted text begin and
deleted text end

(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 deleted text begin . deleted text end new text begin ; and
new text end

new text begin (10) that the school must not require mandatory predispute arbitration clauses with
students.
new text end

Sec. 20.

Minnesota Statutes 2018, section 136A.827, subdivision 4, is amended to read:

Subd. 4.

Proration.

When a student has been accepted by a private career school and
gives deleted text begin written deleted text end notice of cancellation after the program of instruction has begun, but before
completion of 75 percent of the program, the amount charged for tuition, fees and all other
charges shall be prorated based on the number of days in the term as a portion of the total
charges for tuition, fees and all other charges. An additional 25 percent of the total cost of
the program may be added but shall not exceed $100. After completion of 75 percent of the
program, no refunds are required.

Sec. 21.

Minnesota Statutes 2018, section 136A.829, subdivision 1, is amended to read:

Subdivision 1.

Grounds.

The office may, after notice and upon providing an opportunity
for a hearing, under chapter 14 if requested by the parties adversely affected, refuse to issue,
refuse to renew, revoke, or suspend a license or solicitor's permit for any of the following
grounds:

(1) violation of any provisions of sections 136A.821 to 136A.833 or any rule adopted
by the office;

(2) furnishing to the office false, misleading, or incomplete information;

(3) presenting to prospective students information relating to the private career school
that is false, fraudulent, deceptive, substantially inaccurate, or misleading;

(4) refusal to allow reasonable inspection or supply reasonable information after written
request by the office;

new text begin (5) using fraudulent, coercive, or dishonest practices, or demonstrating incompetence,
untrustworthiness, or financial irresponsibility, in the conduct of business in this state or
elsewhere;
new text end

new text begin (6) having been administratively or judicially determined to have committed fraud or
any other material violation of law involving federal, state, or local government funds; or
new text end

deleted text begin (5) deleted text end new text begin (7) new text end the existence of any circumstance that would be grounds for the refusal of an
initial or renewal license under section 136A.822.

Sec. 22.

Minnesota Statutes 2018, section 136A.833, subdivision 1, is amended to read:

Subdivision 1.

Application for exemptions.

A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 new text begin for the school and all of its programs or some
of its programs new text end 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.

Sec. 23.

Minnesota Statutes 2018, section 136A.834, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

deleted text begin Any deleted text end new text begin (a) A program is exempt from the provisions of sections
136A.821 to 136A.832 if it is:
new text end

new text begin (1) offered by a new text end private career school or any department or branch of a private career
school deleted text begin :
deleted text end

deleted text begin (1) which deleted text end new text begin that new text end is substantially owned, operated, or supported by a bona fide church or
religious organization;

(2) deleted text begin whose programs are deleted text end 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) deleted text begin whose programs are deleted text end 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 deleted text begin , deleted text end new text begin .
new text end

deleted text begin is exempt from the provisions of sections 136A.821 to 136A.832.
deleted text end

new text begin (b) Any private career 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).
new text end

Sec. 24.

Minnesota Statutes 2018, section 136A.834, subdivision 2, is amended to read:

Subd. 2.

Limitations.

(a) An exemption shall not extend to any private career school,
department or branch of a private career school, or program of a private career school deleted text begin which deleted text end new text begin
that new text end through advertisements or solicitations represents to any students or prospective students
that the school, its aims, goals, missions, purposes, or programs are different from those
described in subdivision 1.

(b) An exemption shall not extend to any private career school deleted text begin which deleted text end new text begin or program that new text end
represents to any student or prospective student that the major purpose of its programs is
to:

(1) prepare the student for a vocation not closely related to that particular religious faith;
or

(2) provide the student with a general educational program recognized by other private
career schools or the broader educational, business, or social community as being
substantially equivalent to the educational programs offered by private career schools or
departments or branches of private career schools which are not religious in nature and are
not exempt from sections 136A.82 to 136A.834 and from rules adopted under sections
136A.82 to 136A.834.

Sec. 25. new text begin RACE AND ETHNICITY DATA COLLECTION REPORT.
new text end

new text begin (a) The commissioner of the Office of Higher Education shall consult stakeholders and
review efforts underway at the Minnesota Department of Education to develop
recommendations for collecting detailed race and ethnicity data within postsecondary
education. Stakeholders consulted under this paragraph include at least:
new text end

new text begin (1) postsecondary systems and institutions;
new text end

new text begin (2) student groups; and
new text end

new text begin (3) community representatives.
new text end

new text begin (b) The commissioner shall report to the legislative committees having jurisdiction over
higher education by December 1, 2020. The commissioner may research best practices from
other states that have disaggregated race and ethnicity data beyond the requirements of
federal reporting requirements. The recommendations may address:
new text end

new text begin (1) the most meaningful use of disaggregated race and ethnicity data to measure
postsecondary outcomes;
new text end

new text begin (2) the criteria and frequency by which postsecondary systems and institutions must
update enrollment forms to meet the needs of the state's changing racial and ethnic
demographics;
new text end

new text begin (3) impact on federal funding; and
new text end

new text begin (4) implications for student privacy.
new text end

Sec. 26. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, section 124D.09, subdivision 10a, new text end new text begin is repealed.
new text end

ARTICLE 2

MINNESOTA COLLEGE SAVINGS PLAN

Section 1.

Minnesota Statutes 2018, section 136G.01, is amended to read:

136G.01 PLAN ESTABLISHED.

A college savings plan known as new text begin " new text end the Minnesota college savings plan new text begin " or "the Minnesota
529 college savings plan" new text end is established. In establishing this plan, the legislature seeks to
encourage individuals to save for postsecondary education by:

(1) providing a qualified tuition plan under federal tax law; and

(2) encouraging individuals, foundations, and businesses to provide additional grants to
participating students.

Sec. 2.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision to
read:

new text begin Subd. 4b. new text end

new text begin Apprenticeship expenses. new text end

new text begin "Apprenticeship expenses" means expenses for
fees, books, supplies, and equipment required for a beneficiary to participate in a registered
apprenticeship as defined in section 529(c)(8) of the Internal Revenue Code.
new text end

Sec. 3.

Minnesota Statutes 2018, section 136G.03, subdivision 8, is amended to read:

Subd. 8.

Contribution.

"Contribution" means a payment directly allocated to an account
for the benefit of a beneficiary new text begin or a recontribution as defined in section 529(c)(3)(D) of the
Internal Revenue Code new text end . For a rollover distribution, only the portion of the rollover amount
that constitutes investment in the account is treated as a contribution to the account.

Sec. 4.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision to
read:

new text begin Subd. 9a. new text end

new text begin Disabled. new text end

new text begin "Disabled" means the condition of a beneficiary being unable to
engage in any substantial gainful activity by reason of a medically determinable physical
or mental impairment that is:
new text end

new text begin (1) certified by a physician; and
new text end

new text begin (2) expected to result in death or to be of long-continued and indefinite duration.
new text end

Sec. 5.

Minnesota Statutes 2018, section 136G.03, subdivision 10, is amended to read:

Subd. 10.

Distribution.

"Distribution" means a disbursement from an account to the
account owner, the beneficiary, deleted text begin or deleted text end the beneficiary's estate new text begin , new text end or to an eligible educational
institution. Distribution does not include a change of beneficiary to a member of the family
of the prior beneficiary or a rollover distribution. new text begin If a distribution is also a qualified
distribution, an account owner may request the distribution be sent to a third party.
new text end

Sec. 6.

Minnesota Statutes 2018, section 136G.03, subdivision 11, is amended to read:

Subd. 11.

Dormant account.

"Dormant account" means an account that has not received
contributions for at least three consecutive years and the account statements deleted text begin mailed deleted text end new text begin sent new text end to
the account owner have been returned as undeliverable.

Sec. 7.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision to
read:

new text begin Subd. 16a. new text end

new text begin IRS Publication 970. new text end

new text begin "IRS Publication 970" means the publication titled
"Tax Benefits for Education" created and updated annually by the Internal Revenue Service
for use in preparing federal income tax returns or its successor.
new text end

Sec. 8.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision to
read:

new text begin Subd. 17a. new text end

new text begin K-12 expenses. new text end

new text begin "K-12 expenses" means up to $10,000 of tuition expenses
per beneficiary per calendar year paid to a K-12 school as permitted under sections 529(c)(7)
and 529(e)(3)(A) of the Internal Revenue Code.
new text end

Sec. 9.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision to
read:

new text begin Subd. 17b. new text end

new text begin K-12 school. new text end

new text begin "K-12 school" means a public, private, or religious elementary
or secondary school.
new text end

Sec. 10.

Minnesota Statutes 2018, section 136G.03, subdivision 20, is amended to read:

Subd. 20.

Maximum account balance limit.

"Maximum account balance limit" means
the amount established by the office under section 136G.09, subdivision 8, paragraph deleted text begin (d) deleted text end new text begin
(b) new text end .

Sec. 11.

Minnesota Statutes 2018, section 136G.03, subdivision 22, is amended to read:

Subd. 22.

Nonqualified distribution.

"Nonqualified distribution" means a distribution
made from an account other than (1) a qualified distribution; or (2) a deleted text begin distribution due to the
death or disability of, or scholarship to, or attendance at a United States military academy
by, a beneficiary deleted text end new text begin taxable distribution not subject to the additional federal tax new text end .

Sec. 12.

Minnesota Statutes 2018, section 136G.03, subdivision 29, is amended to read:

Subd. 29.

Qualified distribution.

"Qualified distribution" means a distribution made
from an account for qualified higher education expenses of the beneficiary new text begin or a distribution
from an account for qualified education loan repayment of a beneficiary's sibling new text end .

Sec. 13.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision
to read:

new text begin Subd. 29a. new text end

new text begin Qualified distribution for other than K-12 expenses. new text end

new text begin "Qualified distribution
for other than K-12 expenses" means the portion of a qualified distribution that is not used
to pay K-12 expenses.
new text end

Sec. 14.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision
to read:

new text begin Subd. 29b. new text end

new text begin Qualified education loan repayment. new text end

new text begin "Qualified education loan repayment"
means the amount paid from an account for principal or interest on a beneficiary's or a
sibling of a beneficiary's qualified education loan as defined and limited by section 529(c)(9)
of the Internal Revenue Code.
new text end

Sec. 15.

Minnesota Statutes 2018, section 136G.03, subdivision 30, is amended to read:

Subd. 30.

Qualified higher education expenses.

"Qualified higher education expenses"
means new text begin (1) new text end expenses as defined in section 529(e)(3) of the Internal Revenue Code deleted text begin . deleted text end new text begin , (2) K-12
expenses, (3) apprenticeship expenses, and (4) qualified education loan repayment.
new text end

Sec. 16.

Minnesota Statutes 2018, section 136G.03, subdivision 31, is amended to read:

Subd. 31.

new text begin Qualified new text end rollover distribution.

" new text begin Qualified new text end rollover distribution" means a
new text begin distribution or new text end transfer of funds made new text begin within 60 days of the date of a distribution or transfer new text end :

(1) from one account to another deleted text begin account within 60 days of a distribution deleted text end new text begin qualified tuition
plan for the designated beneficiary new text end ;

(2) from another qualified deleted text begin state deleted text end tuition deleted text begin program deleted text end new text begin plan new text end to an account deleted text begin within 60 days of the
distribution deleted text end new text begin for the designated beneficiary new text end ; or

(3) deleted text begin to another qualified state tuition program from an account within 60 days of a
distribution. deleted text end new text begin from an account to an ABLE account, as defined in section 529A(e)(6) of the
Internal Revenue Code, of the designated beneficiary or a member of the family of the
designated beneficiary subject to the taxable year ABLE contribution limits under section
529A(b)(2)(B)(i) of the Internal Revenue Code, if the rollover distribution occurs before
January 1, 2026.
new text end

deleted text begin When there is a change of beneficiary in a rollover distribution, the transfer of funds
must be made for the benefit of a new beneficiary who is a member of the family of the
prior beneficiary. A rollover distribution from one qualified tuition plan to another once
every 12 months without a change of beneficiary is permitted.
deleted text end

new text begin A qualified rollover distribution from one qualified tuition plan to another is allowed
once every 12 months, or any time a change of beneficiary is made to a new beneficiary
who is a member of the family of the prior beneficiary.
new text end

Sec. 17.

Minnesota Statutes 2018, section 136G.03, subdivision 32, is amended to read:

Subd. 32.

Scholarship.

"Scholarship" means deleted text begin a scholarship or educational assistance
allowance. deleted text end new text begin :
new text end

new text begin (1) amounts paid, allowed to, or for the benefit of, an undergraduate or graduate student
at an education institution to aid in the pursuit of the student's studies; and
new text end

new text begin (2) fellowship grants paid to individuals to aid in the pursuit of study or research as
described in IRS publication 970.
new text end

Sec. 18.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision
to read:

new text begin Subd. 33a. new text end

new text begin Taxable distribution. new text end

new text begin "Taxable distribution" means a distribution under
which the earnings portion of the distribution is subject to one or more federal taxes. Taxable
distributions include both (1) nonqualified distributions and (2) taxable distributions not
subject to the additional federal tax.
new text end

Sec. 19.

Minnesota Statutes 2018, section 136G.03, is amended by adding a subdivision
to read:

new text begin Subd. 33b. new text end

new text begin Taxable distribution not subject to the additional federal tax. new text end

new text begin "Taxable
distribution not subject to the additional federal tax" means a distribution under which the
earnings portion of the distribution is subject to federal income tax but is not subject to the
additional federal tax. As described in IRS publication 970, this type of distribution may
occur due to several reasons related to the beneficiary including but not limited to: (1) the
beneficiary has died; (2) the beneficiary is disabled; or (3) the beneficiary has received
scholarships or other waivers of qualified education expenses such as attending a U.S.
military academy to the extent that an account owner cannot use all or a portion of the funds
in their account to make a qualified distribution.
new text end

Sec. 20.

Minnesota Statutes 2018, section 136G.05, subdivision 2, is amended to read:

Subd. 2.

Accounts-type plan.

The office must establish the plan and the plan must be
operated as an accounts-type plan that permits persons to save for qualified higher education
expenses new text begin (1) new text end incurred at any eligible educational institution, regardless of whether it is
private or public or whether it is located within or outside of the state new text begin , (2) incurred at a K-12
school, (3) incurred at a registered apprenticeship as defined in section 529(c)(8) of the
Internal Revenue Code, or (4) financed using a qualified education loan as defined in section
221(d) of the Internal Revenue Code new text end . A separate account must be maintained for each
beneficiary for whom contributions are made.

Sec. 21.

Minnesota Statutes 2018, section 136G.05, subdivision 5, is amended to read:

Subd. 5.

deleted text begin Nonqualified deleted text end new text begin Taxable new text end distributions and matching grants.

There cannot be
a deleted text begin nonqualified withdrawal deleted text end new text begin taxable distribution new text end of matching grant funds and any refund of
matching grants must be returned to the deleted text begin plan deleted text end new text begin office new text end .

Sec. 22.

Minnesota Statutes 2018, section 136G.05, subdivision 7, is amended to read:

Subd. 7.

Marketing.

The commissioner shall make parents and other interested
individuals aware of the availability and advantages of the deleted text begin program deleted text end new text begin plan new text end as a way to save
for higher education costs.

Sec. 23.

Minnesota Statutes 2018, section 136G.05, subdivision 10, is amended to read:

Subd. 10.

Data.

new text begin (a) new text end Account owner data, account data, and data on beneficiaries of
accounts are private data on individuals or nonpublic data as defined in section 13.02, deleted text begin except
that deleted text end new text begin unless the data qualifies for one of the exceptions in paragraph (b) or (c).
new text end

new text begin (b) Account owner data may be used by the office in cooperation with the Department
of Revenue for the purposes of research and analysis to evaluate the plan in order to make
ongoing informed decisions regarding the administration of the plan.
new text end

new text begin (c) new text end The names and addresses of the beneficiaries of accounts that receive matching grants
are public.

Sec. 24.

Minnesota Statutes 2018, section 136G.09, subdivision 8, is amended to read:

Subd. 8.

Maximum account balance limit.

(a) When a contribution is made, the total
account balance of all accounts held for the same beneficiary, including matching grant
accounts, must not exceed the maximum account balance limit as determined under this
subdivision.

(b) The office must establish a maximum account balance limit. The office must adjust
the maximum account balance limit, as necessary, or on January 1 of each year. The
maximum account balance limit must not exceed the amount permitted for the plan to qualify
as a qualified tuition program under section 529 of the Internal Revenue Code.

deleted text begin (c) If the total account balance of all accounts held for a single beneficiary reaches the
maximum account balance limit prior to the end of that calendar year, the beneficiary may
receive an applicable matching grant for that calendar year.
deleted text end

Sec. 25.

Minnesota Statutes 2018, section 136G.11, subdivision 11, is amended to read:

Subd. 11.

Ownership of matching grant funds.

The state retains ownership of all
matching grants and earnings on matching grants until a qualified distribution new text begin for other than
K-12 expenses new text end is made to a beneficiary new text begin , an account owner, new text end or an eligible educational
institution new text begin or any other third party as requested by an account owner new text end .

Sec. 26.

Minnesota Statutes 2018, section 136G.11, subdivision 13, is amended to read:

Subd. 13.

Forfeiture of matching grants.

(a) Matching grants are forfeited if:

(1) the account owner transfers the total account balance of an account to another account
or to another qualified tuition program;

(2) the beneficiary receives deleted text begin a full tuition scholarship or is attending a United States
service academy deleted text end new text begin one or more of the items described in section 136G.03, subdivision 33b,
clause (3), such that the items cover 100 percent of the beneficiary's qualified higher
education expenses unless the account owner requests the matching grant funds be used to
make a qualified education loan repayment for a sibling of the beneficiary as defined in
section 529(c)(9) of the Internal Revenue Code new text end ;

(3) the beneficiary dies or becomes disabled;

(4) the account owner changes the beneficiary of the account; deleted text begin or
deleted text end

(5) the account owner closes the account with a deleted text begin nonqualified withdrawal. deleted text end new text begin taxable
distribution; or
new text end

new text begin (6) the account owner closes the account by making a qualified contribution for K-12
expenses.
new text end

(b) Matching grants must be proportionally forfeited if:

(1) the account owner transfers a portion of an account to another account or to another
qualified tuition program;

(2) deleted text begin the beneficiary receives a scholarship covering a portion of qualified higher education
expenses deleted text end new text begin the account owner takes a partial taxable distribution new text end ; or

(3) the account owner deleted text begin makes deleted text end new text begin takes new text end a partial deleted text begin nonqualified withdrawal deleted text end new text begin qualified distribution
for K-12 expenses new text end .

(c) If the account owner makes a misrepresentation in a participation agreement or an
application for a matching grant that results in a matching grant, the matching grant associated
with the misrepresentation is forfeited. The office and the board must instruct the plan
administrator as to the amount to be forfeited from the matching grant account. The office
and the board must withdraw the matching grant or the proportion of the matching grant
that is related to the misrepresentation.

Sec. 27.

Minnesota Statutes 2018, section 136G.13, is amended to read:

136G.13 ACCOUNT DISTRIBUTIONS.

Subdivision 1.

Qualified distribution methods.

(a) Qualified distributions may be
made:

(1) directly to participating eligible educational institutions on behalf of the beneficiary;

deleted text begin (2) in the form of a check payable to both the beneficiary and the eligible educational
institution; or
deleted text end

deleted text begin (3) deleted text end new text begin (2) new text end directly to the account owner or beneficiary deleted text begin if the account owner or beneficiary
has already paid qualified higher education expenses. deleted text end new text begin but only to the account owner if the
qualified distribution is for K-12 expenses; or
new text end

new text begin (3) to any other third party as requested by the account owner.
new text end

(b) Qualified distributions must be withdrawn proportionally from contributions and
earnings in an account owner's account on the date of distribution as provided in section
529 of the Internal Revenue Code.

Subd. 2.

Matching grant accounts.

deleted text begin Qualified distributions are based on the total account
balances in an account owner's account and matching grant account, if any, on the date of
distribution. Qualified distributions must be withdrawn proportionally from each account
based on the relative total account balance of each account to the total account balance for
both accounts. Amounts for matching grants and matching grant earnings must deleted text end deleted text begin only be
distributed for qualified higher education expenses. deleted text end new text begin Matching grant account funds may be
used as part or all of a qualified distribution for other than K-12 expenses.
new text end

Subd. 3.

deleted text begin Nonqualified deleted text end new text begin Taxable new text end distribution.

An account owner may request a
deleted text begin nonqualified deleted text end new text begin taxable new text end distribution from an account at any time. deleted text begin Nonqualified deleted text end new text begin Taxable new text end
distributions are based on the total account balances in an account owner's account and must
be withdrawn proportionally from contributions and earnings as provided in section 529 of
the Internal Revenue Code. deleted text begin The earnings portion of a nonqualified distribution is subject
to a federal additional tax pursuant to section 529 of the Internal Revenue Code. deleted text end For purposes
of this subdivision, "earnings portion" means the ratio of the earnings in the account to the
total account balance, immediately prior to the distribution, multiplied by the distribution.

Subd. 4.

deleted text begin Nonqualified deleted text end new text begin Taxable new text end distributions from matching grant accounts.

(a) If
an account owner requests a deleted text begin nonqualified deleted text end new text begin taxable new text end distribution from an account that has a
matching grant account, the total account balance of the matching grant account, if any, is
reduced.

(b) After the deleted text begin nonqualified deleted text end new text begin taxable new text end distribution is withdrawn from the account deleted text begin including
any penalty as provided in subdivision 3 deleted text end , the account owner forfeits matching grant amounts
in the same proportion as the deleted text begin nonqualified deleted text end new text begin taxable new text end distribution is to the total account balance
of the account.

new text begin Subd. 4a. new text end

new text begin Qualified distributions from accounts for the payment of K-12 expenses. new text end

new text begin (a)
If an account owner requests a qualified distribution from an account that has a matching
grant account and if the distribution is to be used to pay K-12 expenses, the total account
balance of the matching grant account, if any, is reduced.
new text end

new text begin (b) After a qualified distribution under paragraph (a) has been made, the account owner
forfeits matching grant amounts in the same proportion as the qualified distribution is to
the total account balance of the account.
new text end

deleted text begin Subd. 5. deleted text end

deleted text begin Distributions due to death or disability of, or scholarship to, or attendance
at a United States military academy by, a beneficiary. deleted text end

deleted text begin An account owner may request a
distribution due to the death or disability of, or scholarship to, or attendance at a United
States military academy by, a beneficiary from an account by submitting a completed request
to the plan. Prior to distribution, the account owner shall certify the reason for the distribution
and provide written confirmation from a third party that the beneficiary has died, become
disabled, or received a scholarship for attendance at an eligible educational institution, or
is attending a United States military academy. The plan must not consider a request to make
a distribution until a third-party written confirmation is received by the plan. For purposes
of this subdivision, a third-party written confirmation consists of the following:
deleted text end

deleted text begin (1) for death of the beneficiary, a certified copy of the beneficiary's death record;
deleted text end

deleted text begin (2) for disability of the beneficiary, a certification by a physician who is a doctor of
medicine or osteopathic medicine stating that the doctor is legally authorized to practice in
a state of the United States and that the beneficiary is unable to attend any eligible educational
institution because of an injury or illness that is expected to continue indefinitely or result
in death. Certification must be on a form approved by the plan;
deleted text end

deleted text begin (3) for a scholarship award to the beneficiary, a letter from the grantor of the scholarship
or from the eligible educational institution receiving or administering the scholarship, that
identifies the beneficiary by name and Social Security number or taxpayer identification
number as the recipient of the scholarship and states the amount of the scholarship, the
period of time or number of credits or units to which it applies, the date of the scholarship,
and, if applicable, the eligible educational institution to which the scholarship is to be
applied; or
deleted text end

deleted text begin (4) for attendance by the beneficiary at a United States military academy, a letter from
the military academy indicating the beneficiary's enrollment and attendance.
deleted text end

Sec. 28.

Minnesota Statutes 2018, section 136G.14, is amended to read:

136G.14 MINOR TRUST ACCOUNTS.

(a) This section applies to a plan account in which funds of a minor trust account are
invested.

(b) The account owner may not be changed to any person other than a successor custodian
or the beneficiary unless a court order directing the change of ownership is provided to the
plan administrator. The custodian must sign all forms and requests submitted to the plan
administrator in the custodian's representative capacity. The custodian must notify the plan
administrator in writing when the beneficiary becomes legally entitled to be the account
owner. An account owner under this section may not select a contingent account owner.

(c) The beneficiary of an account under this section may not be changed. If the beneficiary
dies, assets in a plan account become the property of the beneficiary's estate. Funds in an
account must not be transferred or rolled over to another account owner or to an account
for another beneficiary. A nonqualified distribution from an account, or a distribution due
to the disability or scholarship award to the beneficiary, or made on account of the
beneficiary's attendance at a United States military academy, must be used for the benefit
of the beneficiary.

new text begin (d) Funds in an account for a beneficiary under this section may be rolled over into an
ABLE account under Internal Revenue Code 529A subject to the limits and requirements
of Internal Revenue Code 529A.
new text end

Sec. 29. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 136G.03, subdivision 4; and 136G.05, subdivision 6, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 20-5620

124D.09 POSTSECONDARY ENROLLMENT OPTIONS ACT.

Subd. 10a.

Concurrent enrollment participant survey.

(a) Postsecondary institutions offering courses taught by the secondary teacher according to subdivision 10, and are members in the National Alliance of Concurrent Enrollment Partnerships (NACEP), must report all required NACEP evaluative survey results by September 1 of each year to the commissioners of the Office of Higher Education and the Department of Education. The commissioners must report by December 1 of each year to the committees of the legislature having jurisdiction over early education through grade 12 education.

(b) Postsecondary institutions that have not adopted and implemented the NACEP program standards and required evidence for accreditation, are required to conduct an annual survey of concurrent enrolled students who successfully completed the course who are one year out of high school, beginning with the high school graduating class of 2016. By September 1 of each year, the postsecondary institutions must report the evaluative survey results to the commissioners of the Office of Higher Education and the Department of Education. The commissioner must report by December 1 of each year to the committees of the legislature having jurisdiction over early education through grade 12 education. The survey must include, at a minimum, the following student information:

(1) the participant's future education plans, including the highest degree or certification planned;

(2) whether the participant is enrolled or plans to enroll in a Minnesota postsecondary institution, either public or private;

(3) the number of credits accepted or denied by postsecondary institutions;

(4) the college or university attended;

(5) the participant's satisfaction level with the concurrent enrollment program;

(6) the participant's demographics, such as gender, parent education level, qualification for free or reduced-price lunch in high school, Pell grant qualification, and ethnicity; and

(7) a place for participants to provide comments.

136G.03 DEFINITIONS.

Subd. 4.

Adjusted gross income.

"Adjusted gross income" means adjusted gross income as defined in section 62 of the Internal Revenue Code.

136G.05 MINNESOTA OFFICE OF HIGHER EDUCATION.

Subd. 6.

Three-year period for withdrawal of grants.

A matching grant deposited in a matching grant account based on account owner contributions during calendar years 2001 to 2010 under section 136G.11 may not be withdrawn within three years of the establishment of the account of the beneficiary. In calculating the three-year period, the period held in another account is included, if the account includes a rollover from another account under section 529(c)(3)(C) of the Internal Revenue Code.