HF 3872

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/10/2022 05:17pm

A bill for an act
relating to higher education; providing for supplemental funding for the Office of
Higher Education, Minnesota State Colleges and Universities, and the University
of Minnesota; creating and amending financial aid programs; appropriating money;
requiring reports; amending Minnesota Statutes 2020, sections 136A.1796; 175.45,
subdivision 1; Minnesota Statutes 2021 Supplement, sections 136A.121, subdivision
9; 136A.1241, subdivision 5; 136A.1791, subdivision 5; Laws 2021, First Special
Session chapter 2, article 1, section 2, subdivisions 1, 2, 8, 21, 24, 25, 26, 27, 36;
proposing coding for new law in Minnesota Statutes, chapter 136A.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are in addition to the
appropriations in Laws 2021, First Special Session chapter 2, article 1, as amended in this
act, unless otherwise specified, and are appropriated to the agencies and for the purposes
specified in this act. The appropriations are from the general fund, or another named fund,
and are available for the fiscal years indicated for each purpose. The figures "2022" and
"2023" used in this act mean that the appropriations listed under them are available for the
fiscal year ending June 30, 2022, or June 30, 2023, respectively. "The first year" is fiscal
year 2022. "The second year" is fiscal year 2023. "The biennium" is fiscal years 2022 and
2023.
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 2022 new text end		new text begin 2023 new text end

Sec. 2. new text begin MINNESOTA 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 -0- new text end

new text begin $ new text end

new text begin 16,925,000 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 Student Parent Support Initiative new text end

new text begin -0- new text end

new text begin 6,925,000 new text end

new text begin For grants to support student parents under
Minnesota Statutes, section 136A.1251. Of
this amount, up to five percent each year is
for administration costs.
new text end

new text begin The base for fiscal year 2024 is $6,440,000.
The base for fiscal year 2025 and later is
$5,940,000.
new text end

new text begin Subd. 3. new text end new text begin College Application Fee Waiver Grant new text end

new text begin -0- new text end

new text begin 10,000,000 new text end

new text begin For the Office of Higher Education to
coordinate and administer an undergraduate
college application fee waiver program to
eligible Minnesota public postsecondary
institutions, Tribal colleges, and private
nonprofit institutions physically located in
Minnesota and registered with the Office of
Higher Education under Minnesota Statutes,
section 136A.63.
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Any balance does not cancel but is available
until June 30, 2024.
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 -0- new text end

new text begin $ new text end

new text begin 39,000,000 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 -0- new text end

new text begin 39,000,000 new text end

new text begin (a) $15,000,000 in fiscal year 2023 is for
protecting access and affordability for
students; providing all students with access to
a variety of mental health support options;
addressing workforce gaps through innovative
career, technical, and professional
programming serving business and industry;
and providing all students with access to a
statewide basic needs resources hub to connect
to resources on campus, in the local
community, and nationally.
new text end

new text begin (b) $39,000,000 is added to the operations and
maintenance base for fiscal year 2024 and later
established in Laws 2021, First Special
Session chapter 2, article 1, section 3,
subdivision 3, paragraph (l).
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 -0- new text end

new text begin $ new text end

new text begin 43,000,000 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 -0- new text end

new text begin 43,000,000 new text end

new text begin (a) $38,000,000 in fiscal year 2023 is for aid
to those students who most need support to
offset tuition, fees, and other costs of
attendance items and creating a new
scholarship program specifically supporting
students from greater Minnesota campuses.
new text end

new text begin (b) $5,000,000 in fiscal year 2023 is for
increased student supportive services to
increase student outcomes including retention,
graduation, mental health, and campus climate
while addressing equity gaps that exist for
low-income and Black, Indigenous, and People
of Color students.
new text end

new text begin (c) $43,000,000 is added to the operations and
maintenance base for fiscal year 2024 and later
established in Laws 2021, First Special
Session chapter 2, article 1, section 4,
subdivision 2, paragraph (f).
new text end

Sec. 5.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 1, is
amended to read:

Subdivision 1. Total Appropriation

$

271,702,000

$

deleted text begin 274,269,000 deleted text end new text begin 299,069,000 new text end

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

Sec. 6.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 2, is
amended to read:

Subd. 2. State Grants

210,037,000

deleted text begin 210,037,000 deleted text end new text begin 224,851,000 new text end

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

new text begin (b) The base for this appropriation is
$234,289,000 for fiscal year 2024 and later.
new text end

Sec. 7.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 8, is
amended to read:

Subd. 8. Tribal College Grants

150,000

deleted text begin 150,000 deleted text end new text begin 1,850,000 new text end

For Tribal college assistance grants under
Minnesota Statutes, section 136A.1796.

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

new text begin The base for this appropriation is $1,850,000
in fiscal year 2024 and later.
new text end

Sec. 8.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 21, is
amended to read:

Subd. 21. Dual Training Competency Grants; Office of Higher Education

2,000,000

deleted text begin 2,000,000 deleted text end new text begin 4,000,000 new text end

new text begin (a) Of this appropriation, $2,000,000 in fiscal
year 2022 and $3,879,000 in fiscal year 2023
is new text end for transfer to the Dual Training
Competency Grants account in the special
revenue fund under Minnesota Statutes,
section 136A.246, subdivision 10.

new text begin (b) Of this appropriation, $121,000 in fiscal
year 2023 is appropriated to the commissioner
of labor and industry.
new text end

new text begin (c) The base for this appropriation is
$4,000,000 in fiscal year 2024 and later.
new text end

Sec. 9.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 24, is
amended to read:

Subd. 24. Emergency Assistance for Postsecondary Students

269,000

deleted text begin 269,000 deleted text end new text begin 1,000,000 new text end

(a) This appropriation is for the Office of
Higher Education to allocate grant funds on a
matching basis to eligible institutions as
defined under Minnesota Statutes, section
136A.103, located in Minnesota with a
demonstrable homeless student population.

(b) This appropriation shall be used 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.

(c) The commissioner shall determine the
application process and the grant amounts.
The Office of Higher Education shall partner
with interested postsecondary institutions,
other state agencies, and student groups to
establish the programs.

(d) The base for this appropriation is deleted text begin $319,000 deleted text end new text begin
$1,000,000 new text end in fiscal year 2024 and later.

Sec. 10.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 25,
is amended to read:

Subd. 25. Grants to Student Teachers in Shortage Areas

500,000

deleted text begin 500,000 deleted text end new text begin 3,500,000 new text end

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

new text begin (b) new text end The commissioner may use no more than
deleted text begin three deleted text end new text begin five new text end percent of the appropriation for
administration of the program.

new text begin (c) The base for this appropriation is
$3,500,000 in fiscal year 2024 and later.
new text end

Sec. 11.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 26,
is amended to read:

Subd. 26. Grants to Underrepresented Student Teachers

1,000,000

deleted text begin 1,000,000 deleted text end new text begin 1,800,000 new text end

For grants to underrepresented student teachers
under Minnesota Statutes, section 136A.1274.

The commissioner may use no more than deleted text begin three deleted text end new text begin
five new text end percent of the appropriation for
administration of the program.

The base for this appropriation is deleted text begin $1,125,000 deleted text end new text begin
$1,925,000 new text end in fiscal year 2024 and later.

Sec. 12.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 27,
is amended to read:

Subd. 27. Teacher Shortage Loan Repayment

200,000

deleted text begin 200,000 deleted text end new text begin 900,000 new text end

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

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

new text begin The base for this appropriation is $900,000 in
fiscal year 2024 and later.
new text end

Sec. 13.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 36,
is amended to read:

Subd. 36. Fostering Independence Higher Education Grants

238,000

deleted text begin 3,759,000 deleted text end new text begin 4,814,000 new text end

new text begin (a) new text end For grants to eligible students under
Minnesota Statutes, section 136A.1241. Of
this amount, $238,000 in the first year is for
administration costs. The base for fiscal year
2024 and later is deleted text begin $3,761,000 deleted text end new text begin $4,816,000 new text end .

new text begin (b) Beginning in fiscal year 2023, the
commissioner of the Office of Higher
Education may use no more than three percent
of the appropriation to administer the grants
under Minnesota Statutes, section 136A.1241.
new text end

ARTICLE 2

FINANCIAL AID

Section 1.

Minnesota Statutes 2021 Supplement, section 136A.121, subdivision 9, is
amended to read:

Subd. 9.

Awards.

An undergraduate student who meets the office's requirements is
eligible to apply for and receive a grant in any year of undergraduate study unless the student
has obtained a baccalaureate degree or deleted text begin previously has been enrolled full time or the equivalent
for eight semesters or the equivalent deleted text end new text begin has previously received state grant funds for a period
of ten semesters or the equivalent new text end , excluding (1) courses taken from a Minnesota school or
postsecondary institution which is not participating in the state grant program and from
which a student transferred no credit, and (2) courses taken that qualify as developmental
education or below college-level. A student enrolled in a two-year program at a four-year
institution is only eligible for the tuition and fee maximums established by law for two-year
institutions.

Sec. 2.

Minnesota Statutes 2021 Supplement, section 136A.1241, subdivision 5, is amended
to read:

Subd. 5.

Foster grant amount; payment; opt-out.

(a) Each student shall be awarded
a foster grant based on the federal need analysis. Applicants are encouraged to apply for all
other sources of financial aid. The amount of the foster grant must be equal to the applicant's
recognized cost of attendance after deducting:

(1) the student aid index as calculated by the federal need analysis;

(2) the amount of a federal Pell Grant award for which the applicant is eligible;

(3) the amount of the state grant;

(4) the Federal Supplemental Educational Opportunity Grant;

(5) the sum of all Tribal scholarships;

(6) the amount of any other state and federal gift aid;

deleted text begin (7) the Education and Training Voucher Program;
deleted text end

deleted text begin (8) deleted text end new text begin (7) new text end extended foster care benefits under section 260C.451;

deleted text begin (9) deleted text end new text begin (8) new text end the amount of any private grants or scholarships, excluding grants and scholarships
provided by the private institution of higher education in which the eligible student is
enrolled; and

deleted text begin (10) deleted text end new text begin (9) new text end for public institutions, the sum of all institutional grants, scholarships, tuition
waivers, and tuition remission amounts.

(b) The foster grant shall be paid directly to the eligible institution where the student is
enrolled.

(c) An eligible private institution may opt out of participating in the foster grant program
established under this section. To opt out, the institution shall provide notice to the office
by September 1 for the next academic year.

(d) An eligible private institution that does not opt out under paragraph (c) and accepts
the student's application to attend the institution must provide institutional grants,
scholarships, tuition waivers, or tuition remission in an amount equal to the difference
between:

(1) the institution's cost of attendance as calculated under subdivision 4, paragraph (b),
clause (1); and

(2) the sum of the foster grant under this subdivision and the sum of the amounts in
paragraph (a), clauses (1) to (9).

(e) An undergraduate student who is eligible may apply for and receive a foster grant
in any year of undergraduate study unless the student has obtained a baccalaureate degree
or previously has been enrolled full time as defined in section 136A.101, subdivision 7a,
or the equivalent for eight semesters or the equivalent, or received a foster grant for five
years, whichever occurs first. A foster grant must not be awarded to a student for more than
three years for a two-year degree, certificate, or diploma, or five years for a four-year
undergraduate degree.

(f) Foster grants may be awarded to an eligible student for four quarters, three semesters,
or the equivalent during the course of a single fiscal year. In calculating the award amount,
the office must use the same calculation it would for any other term.

Sec. 3.

new text begin [136A.1251] STUDENT-PARENT SUPPORT INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) To address the needs and support the educational goals of
expectant and parenting college students across Minnesota, the commissioner shall award
grants and provide support services to institutions and partnering entities that assist parents
of young children and expectant parents. Grants shall be awarded to postsecondary
institutions, professional organizations, community-based organizations, or other applicants
deemed appropriate by the commissioner. Grants must be used to offer services to support
the academic goals, health, and well-being of student parents. Services and costs eligible
for grant funding include but are not limited to:
new text end

new text begin (1) program development costs;
new text end

new text begin (2) costs related to the start-up of on-campus child care;
new text end

new text begin (3) evaluation and data collection; and
new text end

new text begin (4) direct assistance to student parents including:
new text end

new text begin (i) scholarships;
new text end

new text begin (ii) basic needs support; and
new text end

new text begin (iii) expenses related to child care.
new text end

new text begin (b) Postsecondary institutions may act as the fiscal agents in partnership with a local
nongovernmental agency, childcare center, or other organization that serves student parents.
new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin The commissioner shall develop a grant application
process. The commissioner shall support projects in a manner that attempts to ensure eligible
students throughout the state have access to program services.
new text end

new text begin Subd. 3. new text end

new text begin Health-related supports. new text end

new text begin The commissioner, in partnership with the Department
of Health, shall provide health-related supports. Activities for health-related supports include:
new text end

new text begin (1) ensuring programs, services, and materials are medically accurate, age appropriate,
culturally and linguistically appropriate, and inclusive of all populations;
new text end

new text begin (2) working with community health care providers and other service support organizations
that serve the target population for this program; and
new text end

new text begin (3) providing technical assistance and training for institutional parent support center
staff on how to conduct screenings and referrals for the health concerns of student parents,
including alcohol misuse, substance use disorders, depression, anxiety, intimate partner
violence, tobacco and nicotine, and other health concerns.
new text end

new text begin Subd. 4. new text end

new text begin Report and evaluation. new text end

new text begin By August 1 of each odd-numbered year, the
commissioner shall submit a report to the chairs and ranking minority members of the
legislative committees with jurisdiction over higher education finance regarding the grant
recipients and their activities. The report shall include information about the students served,
the organizations providing services, program activities, program goals, and outcomes.
new text end

Sec. 4.

Minnesota Statutes 2021 Supplement, section 136A.1791, subdivision 5, is amended
to read:

Subd. 5.

Amount of loan repayment.

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

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

(c) No teacher shall receive more than five annual awards.

Sec. 5.

Minnesota Statutes 2020, 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 them.

(b) new text begin "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

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.

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 deleted text begin of $5,300 deleted text end new text begin equal to
the highest tuition and fees charged at a public two-year institution new text end 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 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. 6.

Minnesota Statutes 2020, section 175.45, subdivision 1, is amended to read:

Subdivision 1.

Duties; goal.

The commissioner of labor and industry shall convene
industry representatives, identify occupational competency standards, and provide technical
assistance to develop dual-training programs. The competency standards shall be identified
for employment in occupations in advanced manufacturing, health care services, information
technology, deleted text begin and deleted text end agriculture new text begin , transportation, and childcare new text end . Competency standards are not
rules and are exempt from the rulemaking provisions of chapter 14, and the provisions in
section 14.386 concerning exempt rules do not apply.