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HF 3872

1st Unofficial Engrossment - 92nd Legislature (2021 - 2022) Posted on 05/04/2022 05:29pm

KEY: stricken = removed, old language.
underscored = added, new language.
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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; requesting the establishment of special commission on intercollegiate
sports; creating and expanding workforce development programs and scholarships;
expanding and renaming the Minnesota Higher Education Facilities Authority as
the Minnesota Health and Education Facilities Authority; amending Minnesota
Statutes 2020, sections 3.732, subdivision 1; 136A.103; 136A.25; 136A.26;
136A.27; 136A.28; 136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 22, by
adding a subdivision; 136A.32, subdivision 4; 136A.33; 136A.34, subdivisions 3,
4; 136A.36; 136A.38; 136A.41; 136A.42; 136F.02, subdivision 1; 136F.302,
subdivisions 1, 2; 136F.38, subdivisions 2, 4; 136F.67, subdivision 1; 137.022,
subdivision 4; 354B.20, subdivision 7; Minnesota Statutes 2021 Supplement,
sections 10A.01, subdivision 35; 136F.38, subdivision 3; Laws 2021, First Special
Session chapter 2, article 1, sections 2, subdivisions 1, 9, 19, 20, 25, 26, 27, 33,
34, 38; 3, subdivisions 1, 3; 4, subdivisions 1, 4; proposing coding for new law in
Minnesota Statutes, chapters 124D; 136A; repealing Minnesota Statutes 2020,
sections 136A.29, subdivision 4; 136F.03.

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

ARTICLE 1

HIGHER EDUCATION 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 5,261,000
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 Grants to Students Pursuing Law
Enforcement
new text end

new text begin -0-
new text end
new text begin 3,761,000
new text end

new text begin For grants to eligible students under Minnesota
Statutes, section 136A.1213. Of this amount,
$170,000 the first year is for administration
costs. The base for this appropriation is
$3,666,000 for fiscal year 2024 and later.
Beginning in fiscal year 2024, the
commissioner may use $75,000 for
administration costs.
new text end

new text begin Subd. 3. new text end

new text begin Skills Path Grant Program
new text end

new text begin -0-
new text end
new text begin 500,000
new text end

new text begin For grants to eligible institutions under
Minnesota Statutes, section 136A.247. Of this
amount, the commissioner may use no more
than $15,000 of the appropriation for
administration of the grant program. The base
for this appropriation is $500,000 for fiscal
year 2024 and later.
new text end

new text begin Subd. 4. new text end

new text begin Owatonna Learn to Earn Coalition;
Office of Higher Education
new text end

new text begin -0-
new text end
new text begin 980,000
new text end

new text begin This appropriation is for a grant to the
Owatonna Learn to Earn Coalition to help the
Owatonna and Steele County region grow and
retain a talented workforce. This is a onetime
appropriation and is available until June 30,
2024. Of this amount:
new text end

new text begin (1) $900,000 is to develop educational learning
spaces with state-of-the-art equipment and
student support services in high-demand career
pathway programs. Of this amount, $306,000
is to equip the new Owatonna High School's
Industrial Technology classrooms with
state-of-the-art equipment to introduce
students to high-skill, high-wage, technical
careers, and $594,000 is to equip the
Owatonna Riverland Community College
Campus with state-of-the-art instructional
equipment to offer credit and noncredit
technical programs in automation robotics
engineering technology and information
technology; and
new text end

new text begin (2) $80,000 is to create learn to earn
opportunities for students and employers by
engaging employers in the Owatonna
community to offer tuition reimbursement or
scholarships and part-time work and school
schedules to employees who agree to continue
their education while working for them.
new text end

new text begin Subd. 5. new text end

new text begin Owatonna Learn to Earn Coalition;
Department of Employment and Economic
Development
new text end

new text begin -0-
new text end
new text begin 20,000
new text end

new text begin For transfer to the commissioner of
employment and economic development for
a grant to the Owatonna Learn to Earn
Coalition to conduct a comprehensive local
needs assessment to examine current and
future workforce needs in the region. The
coalition shall retain a consultant and utilize
state demographer resources to involve
education, business, and community
stakeholders to guide the high school's career
pathways, the college's programs of study, and
the business's support of work-based learning
programs that help them recruit, develop, and
retain a vibrant workforce to keep the regional
economy strong. This is a onetime
appropriation and is available until June 30,
2024.
new text end

Sec. 3. 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 454,000
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 454,000
new text end

new text begin $454,000 in fiscal year 2023 is to improve
campus safety, bolstering the technology
infrastructure with cameras and strategic
information accessibility, and provide a safe
campus by increasing security and full-time
law enforcement presence. As a condition of
receiving this supplemental appropriation, a
commission must be established and the duties
specified under article 2, section 13, must be
accomplished. If the commission is not
established, the base amount for fiscal year
2024 and later is $0. The base for this
appropriation is $2,390,000 for fiscal year
2024 and later.
new text end

Sec. 4.

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 275,019,000
new text end

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

Sec. 5.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 9, is
amended to read:


Subd. 9.

Intervention for College Attendance
Program Grants

1,143,000
1,142,000

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

The commissioner may use no more than deleted text begin three
percent
deleted text end new text begin $34,000 each yearnew text end of this appropriation
to administer the intervention for college
attendance program grants.

Sec. 6.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 19, is
amended to read:


Subd. 19.

Spinal Cord Injury and Traumatic
Brain Injury Research Grant Program

3,000,000
3,000,000

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.

The commissioner may use no more than deleted text begin three
percent
deleted text end new text begin $90,000 each yearnew text end of the amount
transferred under this subdivision to administer
the grant program.

Sec. 7.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 20, is
amended to read:


Subd. 20.

Summer Academic Enrichment
Program

250,000
250,000

For summer academic enrichment grants under
Minnesota Statutes, section 136A.091.

The commissioner may use no more than deleted text begin three
percent
deleted text end new text begin $8,000 each yearnew text end of this appropriation
to administer the grant program under this
subdivision.

Sec. 8.

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
500,000

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

The commissioner may use no more than deleted text begin three
percent
deleted text end new text begin $15,000 each yearnew text end of the appropriation
for administration of the program.

Sec. 9.

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
1,250,000
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
percent
deleted text end new text begin $30,000 the first year and $38,000 the
second year
new text end of the appropriation for
administration of the program.

The base for this appropriation is deleted text begin $1,125,000deleted text end new text begin
$1,250,000
new text end in fiscal year 2024 and later.

Sec. 10.

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
200,000

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 deleted text begin three
percent
deleted text end new text begin $6,000 each yearnew text end of the amount
transferred under this subdivision to administer
the program.

Sec. 11.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 33,
is amended to read:


Subd. 33.

Minnesota Independence College and
Community

1,250,000
deleted text begin 1,250,000 deleted text end new text begin
1,750,000
new text end

For a grant to Minnesota Independence
College and Community for need-based
scholarships and tuition reduction. Beginning
with students first enrolled in the fall of 2019,
eligibility is limited to resident students as
defined in Minnesota Statutes, section
136A.101, subdivision 8.

The base for this appropriation is deleted text begin $1,000,000deleted text end new text begin
$1,207,000
new text end in fiscal year 2024 and later.

Sec. 12.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 34,
is amended to read:


Subd. 34.

Student Loan Debt Counseling

200,000
200,000

For student loan debt counseling under
Minnesota Statutes, section 136A.1788.

The Office of Higher Education may use no
more than deleted text begin three percentdeleted text end new text begin $6,000 each yearnew text end of
the appropriation to administer the student
loan debt counseling program.

Sec. 13.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 38,
is amended to read:


Subd. 38.

Aspiring Teachers of Color
Scholarship Pilot Program

1,500,000
1,500,000

(a) This appropriation is for the aspiring
teachers of color scholarship pilot program
under article 2, section 45.

(b) The commissioner of the Office of Higher
Education may use no more than deleted text begin three percentdeleted text end new text begin
$45,000 each year
new text end of the appropriation to
administer the aspiring teachers of color
scholarship program.

(c) This is a onetime appropriation. The base
for this appropriation is $0 in fiscal year 2024
and later. Notwithstanding Minnesota Statutes,
section 16A.28, unencumbered balances under
this subdivision do not cancel until July 1,
2025.

Sec. 14.

Laws 2021, First Special Session chapter 2, article 1, section 3, subdivision 1, is
amended to read:


Subdivision 1.

Total Appropriation

$
791,992,000
$
deleted text begin 789,491,000
deleted text end new text begin 800,140,000
new text end

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

Sec. 15.

Laws 2021, First Special Session chapter 2, article 1, section 3, subdivision 3, is
amended to read:


Subd. 3.

Operations and Maintenance

753,795,000
deleted text begin 751,295,000 deleted text end new text begin
761,944,000
new text end

(a) The Board of Trustees must establish
tuition rates as follows:

(1) for the 2021-2022 and 2022-2023
academic years, tuition rates for undergraduate
students at colleges and universities must not
be increased by more than 3.5 percent as
compared to the previous academic year,
except that a university may change base
tuition to adjust for the reduction of online
differential charges provided the change is
revenue-neutral; and

(2) 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 2022
and 2023 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.

(b) The Board of Trustees must request
guidance from the United States Department
of Education regarding whether it is
permissible to allocate federal funds received
under section 314 of the Consolidated
Appropriations Act, 2021, as provided by
Public Law 116-260, and section 2003 of the
American Rescue Plan Act, as provided by
Public Law 117-2, to provide a tuition credit
for enrolled students or refund for students
who are no longer enrolled in an amount equal
to the amount of the online differential tuition
rate charged to students for courses moved
online due to the coronavirus pandemic during
the 2020-2021 academic year that were not
offered as online courses during the previous
academic year. If the department advises that
this is a permissible use of the federal funds,
institutions must issue such tuition credits to
enrolled students and must inform students
who are no longer enrolled in the institution
of their eligibility for a refund. In order to
receive a refund, the student must apply for
the refund.

(c) $5,700,000 in fiscal year 2022 and
$5,700,000 in fiscal year 2023 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.

(d) 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.

(e) $4,500,000 in fiscal year 2022 and
deleted text begin $4,500,000deleted text end new text begin $14,500,000new text end in fiscal year 2023
are for workforce development scholarships
under Minnesota Statutes, section 136F.38.
new text begin Of this appropriation, up to $200,000 is
available in each year to administer the
program.
new text end new text begin Of this amount, $7,500,000 in the
second year and later must be used for
scholarships to students enrolled in a law
enforcement program of study. If there is a
balance of unobligated funds to law
enforcement students by February 15 of each
year, the board may reallocate the balance to
other purposes under this paragraph. The base
for this appropriation is $9,500,000 for fiscal
year 2024 and later.
new text end

(f) $300,000 in fiscal year 2022 and $300,000
in fiscal year 2023 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.

(g) This appropriation includes $40,000 in
fiscal year 2022 and $40,000 in fiscal year
2023 to implement the sexual assault policies
required under Minnesota Statutes, section
135A.15.

(h) This appropriation includes $8,000,000 in
fiscal year 2022 and $8,000,000 in fiscal year
2023 for upgrading the Integrated Statewide
Record System.

(i) This appropriation includes $250,000 in
fiscal year 2022 and $250,000 in fiscal year
2023 to implement the Z-Degree program
under Minnesota Statutes, section 136F.305.
The base for this appropriation is $50,000 in
fiscal year 2024 and later.

(j) $1,500,000 in fiscal year 2022 is for the
mental health awareness program for students
required under Minnesota Statutes, section
136F.20, subdivision 4. Of this amount:
$500,000 must be used for training
opportunities under Minnesota Statutes,
section 136F.20, subdivision 4, paragraph (a),
clause (2); and $200,000 must be used for
grants to colleges and universities to establish
peer support pilot programs in Minnesota
Statutes, section 136F.20, subdivision 4,
paragraph (c). The Board of Trustees shall
convene a committee that includes students to
review and approve grant applications.
Notwithstanding Minnesota Statutes, section
16A.28, unencumbered balances under this
paragraph do not cancel until July 1, 2025.

(k) $1,000,000 in fiscal year 2022 is for
colleges and universities to comply with the
student basic needs requirements under
Minnesota Statutes, section 136F.202. The
Board of Trustees must use at least 25 percent
of this appropriation for grants to colleges and
universities to comply with Minnesota
Statutes, section 136F.202, subdivision 1,
paragraph (a). The board must use a
consultation and committee process that
includes students to review and approve grant
applications. Notwithstanding Minnesota
Statutes, section 16A.28, unencumbered
balances under this paragraph do not cancel
until July 1, 2025.

(l) The total operations and maintenance base
for fiscal year 2024 and later is deleted text begin $751,095,000deleted text end new text begin
$756,095,000
new text end .

Sec. 16.

Laws 2021, First Special Session chapter 2, article 1, section 4, subdivision 1, is
amended to read:


Subdivision 1.

Total Appropriation

$
692,813,000
$
deleted text begin 692,813,000
deleted text end new text begin 694,813,000
new text end
Appropriations by Fund
2022
2023
General
690,656,000
deleted text begin 690,656,000 deleted text end new text begin
692,656,000
new text end
Health Care Access
2,157,000
2,157,000

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

Sec. 17.

Laws 2021, First Special Session chapter 2, article 1, section 4, subdivision 4, is
amended to read:


Subd. 4.

Special Appropriations

(a) Agriculture and Extension Service
42,922,000
42,922,000

For the Agricultural Experiment Station and
the Minnesota Extension Service:

(1) the agricultural experiment stations 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;

(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:

(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);

(ii) alternative bioenergy crops and cropping
systems; and

(iii) biofuel coproducts used for livestock feed;

(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;

(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:

(i) vegetable crop research with priority for
extending the Minnesota vegetable growing
season;

(ii) fertilizer and soil fertility research and
development;

(iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;

(iv) discovering and developing plant varieties
that use nutrients more efficiently;

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

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

(vii) utilizing plant and livestock cells to treat
and cure human diseases;

(viii) the development of dairy coproducts;

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

(x) crop pest and animal disease research;

(xi) developing animal agriculture that is
capable of sustainably feeding the world;

(xii) consumer food safety education and
outreach;

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

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

(5) by February 1, 2023, 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.

(b) Health Sciences
9,204,000
9,204,000

$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.

(c) College of Science and Engineering
1,140,000
1,140,000

For the geological survey and the talented
youth mathematics program.

(d) System Special
7,431,000
deleted text begin 7,431,000 deleted text end new text begin
9,431,000
new text end

For general research, the Labor Education
Service, Natural Resources Research Institute,
Center for Urban and Regional Affairs, Bell
Museum of Natural History, and the
Humphrey exhibit.

$2,250,000 in fiscal year 2022 and deleted text begin $2,250,000deleted text end new text begin
$4,250,000
new text end in fiscal year 2023 are for the
Natural Resources Research Institute to invest
in applied research for economic development.

The base for this appropriation is $7,181,000
in fiscal year 2024 and later and, of this
amount, $2,000,000 per fiscal year is for the
Natural Resources Research Institute to invest
in applied research for economic development.

(e) University of Minnesota and Mayo
Foundation Partnership
7,991,000
7,991,000

This appropriation is for the following
activities:

(1) $7,491,000 in fiscal year 2022 and
$7,491,000 in fiscal year 2023 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.

(2) $500,000 in fiscal year 2022 and $500,000
in fiscal year 2023 are to award competitive
grants to conduct research into the prevention,
treatment, causes, and cures of Alzheimer's
disease and other dementias.

Sec. 18. new text begin EDUCATION APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated in this section is
appropriated from the general fund to the Department of Education for the fiscal year
designated. This sum is in addition to appropriations made for the same purpose in any other
law.
new text end

new text begin Subd. 2. new text end

new text begin General education aid. new text end

new text begin For general education aid under Minnesota Statutes,
section 126C.13, subdivision 4:
new text end

new text begin $
new text end
new text begin 24,000
new text end
new text begin .....
new text end
new text begin 2023
new text end

new text begin The 2023 appropriation includes $0 for 2022 and $24,000 for 2023.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

ARTICLE 2

HIGHER EDUCATION PROVISIONS

Section 1.

new text begin [124D.351] SKILLS PATH PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Purpose. new text end

new text begin The purpose of the skills path program is to provide students
with clear pathways from high school to careers in skilled work and the trades and create
opportunities for students to enter postsecondary programs and employment-based training
in high school.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

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

new text begin (b) "Career and technical education dual credit program" means a postsecondary career
or technical education course under section 124D.09, subdivision 5a; a secondary course
that has a current articulation agreement for postsecondary credit hours with a participating
institution; or a youth skills training program that awards postsecondary credit to students.
new text end

new text begin (c) "Employment-based training" means a registered apprenticeship or apprenticeship
readiness program, a dual-training program, a workforce training program at an opportunities
industrialization center, or other work-based learning programs in which the student has
paid employment.
new text end

new text begin Subd. 3. new text end

new text begin Eligible institutions. new text end

new text begin (a) A secondary public school, an American
Indian-controlled Tribal contract or grant school eligible for aid under section 124D.83, a
vocational center school, a nonpublic school, or any combination of schools is eligible to
apply for a skills path program designation.
new text end

new text begin (b) A Minnesota state college or university, an institution licensed or registered as a
postsecondary institution by the Office of Higher Education, or an institution exempt from
the provisions of sections 136A.61 to 136A.71 or 136A.822 to 136A.834, as approved by
the Office of Higher Education, may partner with an institution in paragraph (a) to provide
a postsecondary options enrollment career and technical education course for eligible students
in a skills path program.
new text end

new text begin (c) An eligible institution may work in partnership with one or more postsecondary
programs designated in paragraph (b) to create a two-year program that incorporates
secondary and postsecondary credit along with employment-based training to award an
associate degree in skilled occupations.
new text end

new text begin Subd. 4. new text end

new text begin Skills path programs. new text end

new text begin The commissioner of higher education must develop
an application consistent with section 136A.247, and may consult with the commissioners
of education and labor and industry, for programs that provide students with clear pathways
from high school to careers in skilled work and the trades to be designated as skills path
programs. Skills path programs must include career-connected learning options, career and
technical education dual credit program options, and employment-based training opportunities
to be eligible for this designation. Applicants must demonstrate how skills path programs
will be marketed to students and what other local partners and employers are involved in
developing career pathway opportunities. Skills path programs may be identified in skilled
occupations and the trades, including manufacturing, construction, health care services,
information technology, agriculture, transportation, child care, law enforcement, energy,
and other related industries.
new text end

new text begin Subd. 5. new text end

new text begin Interaction with education finance. new text end

new text begin For the purpose of computing state aids
for the school district, students participating in the skills path programs under this section
shall be counted in the average daily membership of the school district.
new text end

new text begin Subd. 6. new text end

new text begin Academic credit. new text end

new text begin A school district may grant academic credit for skills path
programs under this section in accordance with local requirements.
new text end

Sec. 2.

Minnesota Statutes 2020, section 136A.103, is amended to read:


136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

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

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

(2) is operated privatelynew text begin , is located in the state,new text end and, as determined by the office, meets
the requirements of paragraph (b)new text begin ; or
new text end

new text begin (3) is a university that:
new text end

new text begin (i) is a nonprofit entity as defined by Internal Revenue Code, section 501(c)(3);
new text end

new text begin (ii) is accredited by the institutional accreditor, Northwest Commission on Colleges and
Universities;
new text end

new text begin (iii) provides online education;
new text end

new text begin (iv) offers exclusively competency-based education; and
new text end

new text begin (v) as determined by the office, meets the requirements of paragraph (b).
new text end

new text begin For purposes of this clause, competency-based education means an educational delivery
model which organizes academic content by competency rather than more traditional
methods, such as by course, and measures a student's academic progress by assessing learning
outcomes, typically on the basis of mastery of a defined set of competency standards
new text end .

(b) A private institution must:

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

(2) be licensed or registered as a postsecondary institution by the office; and

(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

(ii) if an institution was participating in state student aid programs as of June 30, 2010,
and the institution did not participate in the federal Pell Grant program 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.

(c) An institution that offers only graduate-level degrees or graduate-level nondegree
programs is an eligible institution if the institution is licensed or registered as a postsecondary
institution by the office.

(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell
Grant program within four calendar years of the first ownership change to continue eligibility.

(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.

(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.

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2023.
new text end

Sec. 3.

new text begin [136A.1213] GRANTS FOR STUDENTS PURSUING LAW ENFORCEMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Grant amount; eligibility. new text end

new text begin (a) A student is eligible for a $3,000 annual
grant, awarded at the beginning of the academic term and distributed evenly between two
terms, if the student:
new text end

new text begin (1) meets the eligibility requirements in section 136A.121, subdivision 2;
new text end

new text begin (2) is enrolled for at least nine credits in a law enforcement degree program or a nondegree
program under section 626.84, subdivision 1, paragraph (g);
new text end

new text begin (3) attends an eligible institution as defined in section 136A.103; and
new text end

new text begin (4) is making satisfactory academic progress as defined under section 136A.101,
subdivision 10.
new text end

new text begin (b) The lifetime limit for:
new text end

new text begin (1) nondegree students is $3,000;
new text end

new text begin (2) associate degree students is $6,000; and
new text end

new text begin (3) baccalaureate degree students is $12,000.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin To receive a grant under this section, a student must apply in the
form and manner specified by the commissioner.
new text end

Sec. 4.

new text begin [136A.247] SKILLS PATH GRANT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Grant amount. new text end

new text begin The commissioner of higher education shall award grants
up to $50,000 per grant to up to ten secondary schools annually for skills path programs
under section 124D.351 that align career and technical education dual credit program options
with employment-based training opportunities. Applications must demonstrate how grant
funding will provide students with clear pathways from high school to postsecondary training
that lead to careers in skilled work and the trades. The commissioner of higher education
may work with the commissioner of education and the commissioner of labor and industry
to develop the grant application and administer the grants.
new text end

new text begin Subd. 2. new text end

new text begin Grant uses. new text end

new text begin (a) A secondary school awarded a grant under this section must
use the grant award for any of the following implementation and coordination activities:
new text end

new text begin (1) marketing efforts to students about skills path program opportunities;
new text end

new text begin (2) coordinating academic, vocational, and occupational learning; school-based and
work-based learning; and secondary and postsecondary education for participants in the
program;
new text end

new text begin (3) reimbursement of tuition, books, required tools, and other expenses necessary for
participation in the program; and
new text end

new text begin (4) any other implementation or coordination activity that the commissioner may direct
or permit the eligible institution to perform.
new text end

new text begin (b) Grant awards may not be used to pay the wages of a student directly or indirectly.
new text end

new text begin Subd. 3. new text end

new text begin Grant application. new text end

new text begin The following information must be included in the grant
application:
new text end

new text begin (1) the identity of each secondary school that is a participant in the skills path program;
new text end

new text begin (2) the identity of each registered apprenticeship program or apprenticeship readiness
program, dual-training program, workforce training program at an opportunities
industrialization center, or other work-based learning program in which the student has the
opportunity for paid employment that is a participant in the skills path program;
new text end

new text begin (3) the identity of each postsecondary institution, intermediate school district, public
agency, nonprofit organization, union, career and technical education consortium, or
workforce development authority that is a participant in the skills path program;
new text end

new text begin (4) the identity of any employers participating in the skills path program;
new text end

new text begin (5) a description of any career-connected learning components;
new text end

new text begin (6) a description of the career and technical education dual-credit program options;
new text end

new text begin (7) a description of any postsecondary education components in the skills path program;
new text end

new text begin (8) a description of employment-based training opportunities; and
new text end

new text begin (9) applicable career planning information.
new text end

Sec. 5.

Minnesota Statutes 2020, section 136F.02, subdivision 1, is amended to read:


Subdivision 1.

Membership.

The board consists of 15 members appointed by the
governor, including three members who are students who have attended an institution for
at least one year and are enrolled at the time of appointment at least half time in a degree,
diploma, or certificate program in an institution governed by the board. The student members
shall include one member from a community college, one member from a state university,
and one member from a technical college. One member representing labor must be appointed
after considering the recommendations made under section 136F.045. The governor is not
bound by the recommendations. Appointments to the board are with the advice and consent
of the senate. At least one member of the board must be a resident of each congressional
district. All other members must be appointed to represent the state at large. In selecting
appointees, the governor must consider the needs of the board and the balance of the board
membership with respect to labor and business representation deleted text begin anddeleted text end new text begin ;new text end racial, gender, geographic,
and ethnic compositionnew text begin ; and occupation and experience. In selecting appointees, the governor
must consider the needs of the board for skills relevant to the governance of the Minnesota
State Colleges and Universities and the candidate's ability to discharge the responsibilities
of the board
new text end .

A commissioner of a state agency may not serve as a member of the board.

Sec. 6.

Minnesota Statutes 2020, section 136F.302, subdivision 1, is amended to read:


Subdivision 1.

ACT or SAT college ready score; Minnesota Comprehensive
Assessment career and college ready benchmarks.

(a) A state college or university must
not require an individual to take a deleted text begin remedialdeleted text end new text begin developmentalnew text end , noncredit course in a subject
area if the individual has received a college ready ACT or SAT score or met a career and
college ready Minnesota Comprehensive Assessment benchmark in that subject area. Only
the ACT and SAT scores an individual received and the Minnesota Comprehensive
Assessment benchmarks an individual met in the previous five years are valid for purposes
of this section. Each state college and university must post notice of the exemption from
deleted text begin remedialdeleted text end new text begin developmentalnew text end course taking on its website explaining student course placement
requirements.new text begin Prior to enrolling an individual in a developmental course, a college or
university must (1) determine if the individual's performance on the ACT, SAT, or Minnesota
Comprehensive Assessments exempts the individual from the developmental course under
this paragraph, and (2) inform the individual if a developmental course is required.
new text end

(b) When deciding if an individual is admitted to or if an individual may enroll in a state
college or university, the state college or university must consider the individual's scores
on the high school Minnesota Comprehensive Assessments, in addition to other factors
determined relevant by the college or university.

Sec. 7.

Minnesota Statutes 2020, section 136F.302, subdivision 2, is amended to read:


Subd. 2.

deleted text begin Testingdeleted text end Process for determining if deleted text begin remediatingdeleted text end new text begin developmental educationnew text end
is necessary.

new text begin (a) A college or university must not determine if an individual is placed in a
developmental, noncredit course based solely on a testing process. A state college or
university may use multiple measures to make a holistic determination on whether to place
an individual in a developmental course. Multiple measures may include:
new text end

new text begin (1) testing under paragraph (b);
new text end

new text begin (2) the individual's scores on the high school Minnesota Comprehensive Assessments,
the ACT, or the SAT;
new text end

new text begin (3) high school grade point average;
new text end

new text begin (4) teacher recommendations; and
new text end

new text begin (5) other factors determined relevant by the college or university.
new text end

new text begin (b) new text end A college or university testing process used to determine whether an individual is
placed in a deleted text begin remedialdeleted text end new text begin developmentalnew text end , noncredit course must comply with this subdivision.
Prior to taking a test, an individual must be given reasonable time and opportunity to review
materials provided by the college or university covering the material to be tested which
must include a sample test. An individual who is required to take a deleted text begin remedialdeleted text end new text begin developmentalnew text end ,
noncredit course as a result of a test given by a college or university must be given an
opportunity to retake the test at the earliest time determined by the individual when testing
is otherwise offered. The college or university must provide an individual with study materials
for the purpose of retaking and passing the test.

Sec. 8.

Minnesota Statutes 2020, section 136F.38, subdivision 2, is amended to read:


Subd. 2.

Scholarship awards.

The program shall award scholarships at the beginning
of an academic term, in the amount of $2,500new text begin , or $5,000 for law enforcement studentsnew text end , to
be distributed evenly between two terms.

Sec. 9.

Minnesota Statutes 2021 Supplement, section 136F.38, subdivision 3, is amended
to read:


Subd. 3.

Program eligibility.

(a) Scholarships shall be awarded only to a student eligible
for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
care services; (4) information technology; (5) early childhood; (6) transportation; deleted text begin ordeleted text end (7)new text begin
construction; (8) law enforcement; or (9)
new text end a program of study under paragraph (b).

(b) Each institution may add one additional area of study or certification, based on a
workforce shortage for full-time employment requiring postsecondary education that is
unique to the institution's specific region, as reported in the most recent Department of
Employment and Economic Development job vacancy survey data for the economic
development region in which the institution is located. A workforce shortage area is one in
which the job vacancy rate for full-time employment in a specific occupation in a region is
higher than the state average vacancy rate for that same occupation. The institution may
change the area of study or certification based on new data once every two years.

(c) The student must be enrolled for at least nine credits in a two-year college in the
Minnesota State Colleges and Universities system to be eligible for first- and second-year
scholarships.

(d) The student is eligible for a one-year transfer scholarship if the student transfers from
a two-year college after two or more terms, and the student is enrolled for at least nine
credits in a four-year university in the Minnesota State Colleges and Universities system.

Sec. 10.

Minnesota Statutes 2020, section 136F.38, subdivision 4, is amended to read:


Subd. 4.

Renewal; cap.

A student who has received a scholarship may apply again but
total lifetime awards are not to exceed $7,500 per studentnew text begin , or $15,000 for law enforcement
students
new text end . Students may only be awarded a second scholarship upon completion of two
academic terms. Students may be awarded a third scholarship if the student transfers to a
corresponding program at a Minnesota state university.

Sec. 11.

Minnesota Statutes 2020, section 137.022, subdivision 4, is amended to read:


Subd. 4.

Mineral research; scholarships.

(a) All income credited after July 1, 1992,
to the permanent university fund from royalties for mining under state mineral leases from
and after July 1, 1991, must be allocated as provided in this subdivision.

(b)(1) Beginning January 1, 2013, 50 percent of the income must be allocated according
to this paragraph. One-half of the income under this paragraph, up to deleted text begin $50,000,000deleted text end new text begin
$100,000,000
new text end , must be credited to the mineral research account of the fund to be allocated
for the Natural Resources Research Institute-Duluth and Coleraine facilities, for mineral
and mineral-related research including mineral-related environmental research. The other
one-half of the income under this paragraph, up to $25,000,000, is credited to an endowment
for the costs of operating deleted text begin adeleted text end mining, deleted text begin metallurgicaldeleted text end new text begin mineral, mineral-relatednew text end , or deleted text begin related
engineering
deleted text end new text begin science, technology, engineering, and mathematics (STEM)new text end degree deleted text begin programdeleted text end new text begin
programs
new text end offered through the University of Minnesota at Mesabi Range Community and
Technical Collegenew text begin and the Swenson College of Science and Engineering at Duluth to support
workforce development and collaborations benefiting regional academics, industry, and
natural resources on the Iron Range in northeast Minnesota
new text end and for scholarships for
new text begin Minnesota new text end students to attend the mining, deleted text begin metallurgical, or related engineering programdeleted text end new text begin
mineral, mineral-related, or STEM programs
new text end . The maximum scholarship awarded to attend
the deleted text begin mining, metallurgical, or related engineeringdeleted text end degree deleted text begin programdeleted text end new text begin programsnew text end funded under
this paragraph cannot exceed deleted text begin $6,500deleted text end new text begin 75 percent of current in-state tuition ratesnew text end per academic
year and may be awarded a maximum of four academic years.

(2) The remainder of the income under paragraph (a) plus the amount of any income
under clause (1) after deleted text begin $50,000,000deleted text end new text begin $100,000,000new text end has been credited to the mineral research
account for the Natural Resources Research Institute and the amount of any income over
the $25,000,000 for the deleted text begin engineering programdeleted text end new text begin programming in clause (1)new text end must be credited
to the endowed scholarship account of the fund for distribution annually for scholastic
achievement as provided by the Board of Regents to undergraduates enrolled at the University
of Minnesota who are resident students as defined in section 136A.101, subdivision 8.

(c) The annual distribution from the endowed scholarship account must be allocated to
the various campuses of the University of Minnesota in proportion to the number of
undergraduate resident students enrolled on each campus.

(d) The Board of Regents must report to the education committees of the legislature
biennially at the time of the submission of its budget request on the disbursement of money
from the endowed scholarship account and to the environment and natural resources
committees on the use of the mineral research account.

(e) Capital gains and losses and portfolio income of the permanent university fund must
be credited to its three accounts in proportion to the market value of each account.

(f) The endowment support from the income and capital gains of the endowed mineral
research and endowed scholarship accounts of the fund must not total more than six percent
per year of the 36-month trailing average market value of the account from which the support
is derived.

Sec. 12. new text begin OWATONNA LEARN TO EARN COALITION GRANT FUNDS REPORT.
new text end

new text begin By February 1, 2026, the Owatonna Learn to Earn Coalition must report to the
commissioner of the Office of Higher Education and to the chairs and ranking minority
members of the committees with jurisdiction over higher education on activities funded
under article 1, section 2, subdivisions 4 and 5. The report must include but is not limited
to information regarding:
new text end

new text begin (1) the impact of the grant funds on high school and technical college student enrollment
in technical education courses receiving equipment funded through the grant;
new text end

new text begin (2) the number of grant-related degrees awarded by Owatonna Riverland Community
College;
new text end

new text begin (3) the results of the Department of Employment and Economic Development grant to
conduct a needs assessment examining current and future workforce needs in the region;
and
new text end

new text begin (4) employment impacted in the area associated with the grant, including recruitment
and retention.
new text end

Sec. 13. new text begin UNIVERSITY OF MINNESOTA SPECIAL COMMISSION ON
INTERCOLLEGIATE SPORTS.
new text end

new text begin It is requested that the Board of Regents of the University of Minnesota establish a
special commission to conduct a comprehensive review and evaluation of the role of
intercollegiate athletics at the University of Minnesota. If the commission is established,
the duties of the commission must include but are not limited to determining the value of
athletics and the preservation of intercollegiate sports opportunities for university students,
exploring reasonable financing models for nonrevenue sports, and establishing
evidence-based proposals to guide decisions affecting the future of athletics at the University
of Minnesota. If the commission is established, it is requested that the research and findings
of the commission be provided to members of the legislative committees with jurisdiction
over higher education issues.
new text end

Sec. 14. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall substitute the term "developmental" for "remedial" wherever
the term refers to remedial education courses at a postsecondary institution. The revisor
shall also make grammatical changes related to the changes in terms to preserve the meaning
of the text.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 136F.03, new text end new text begin is repealed.
new text end

ARTICLE 3

MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

Section 1.

Minnesota Statutes 2020, section 136A.25, is amended to read:


136A.25 CREATION.

A state agency known as the Minnesota deleted text begin Higherdeleted text end new text begin Health and new text end Education Facilities Authority
is hereby created.

Sec. 2.

Minnesota Statutes 2020, section 136A.26, is amended to read:


136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.

Subdivision 1.

Membership.

The Minnesota deleted text begin Higherdeleted text end new text begin Health andnew text end Education Facilities
Authority shall consist of deleted text begin eightdeleted text end new text begin ninenew text end members appointed by the governor with the advice
and consent of the senate, and a representative of the deleted text begin officedeleted text end new text begin Office of Higher Educationnew text end .

All members to be appointed by the governor shall be residents of the state. At least two
members must reside outside the metropolitan area as defined in section 473.121, subdivision
2
. At least one of the members shall be a person having a favorable reputation for skill,
knowledge, and experience in the field of state and municipal finance; deleted text begin anddeleted text end at least one shall
be a person having a favorable reputation for skill, knowledge, and experience in the building
construction field; deleted text begin anddeleted text end at least one of the members shall be a trustee, director, officer, or
employee of an institution of higher educationnew text begin ; and at least one of the members shall be a
trustee, director, officer, or employee of a health care organization
new text end .

Subd. 1a.

Private College Council member.

The president of the Minnesota Private
College Council, or the president's designee, shall serve without compensation as an advisory,
nonvoting member of the authority.

new text begin Subd. 1b. new text end

new text begin Nonprofit health care association member. new text end

new text begin The chief executive officer of
a Minnesota nonprofit membership association whose members are primarily nonprofit
health care organizations, or the chief executive officer's designee, shall serve without
compensation as an advisory, nonvoting member of the authority. The identity of the
Minnesota nonprofit membership association shall be determined and may be changed from
time to time by the members of the authority in accordance with and as shall be provided
in the bylaws of the authority.
new text end

Subd. 2.

Term; compensation; removal.

The membership terms, compensation, removal
of members, and filling of vacancies for authority members other than the representative
of the office, deleted text begin anddeleted text end the president of the Private College Council,new text begin or the chief executive officer
of the Minnesota nonprofit membership association described in subdivision 1b
new text end shall be as
provided in section 15.0575.

Sec. 3.

Minnesota Statutes 2020, section 136A.27, is amended to read:


136A.27 POLICY.

It is hereby declared that for the benefit of the people of the state, the increase of their
commerce, welfare and prosperity and the improvement of their health and living conditions
it is essential that new text begin health care organizations within the state be provided with appropriate
additional means to establish, acquire, construct, improve, and expand health care facilities
in furtherance of their purposes; that
new text end this and future generations of youth be given the fullest
opportunity to learn and to develop their intellectual and mental capacities; deleted text begin that it is essentialdeleted text end
that institutions of higher education within the state be provided with appropriate additional
means to assist such youth in achieving the required levels of learning and development of
their intellectual and mental capacitiesnew text begin ;new text end andnew text begin that health care organizations and institutions
of higher education
new text end be enabled to refinance outstanding indebtedness incurred to provide
existing facilities used for such purposes in order to preserve and enhance the utilization of
facilities for purposes of new text begin health care and new text end higher education, to extend or adjust maturities in
relation to the resources available for their payment, and to save interest costs and thereby
reduce new text begin health care costs or higher education new text end tuition, feesnew text begin ,new text end and chargesdeleted text begin ; anddeleted text end new text begin . It is hereby
further declared
new text end that it is the purpose of sections 136A.25 to 136A.42 to provide a measure
of assistance and an alternative method to enable new text begin health care organizations and new text end institutions
of higher education in the state to provide the facilities and structures which are sorely
needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit
and good, to the extent and manner provided herein.

Sec. 4.

Minnesota Statutes 2020, section 136A.28, is amended to read:


136A.28 DEFINITIONS.

Subdivision 1.

Scope.

In sections 136A.25 to 136A.42, the following words and terms
shall, unless the context otherwise requires, have the meanings ascribed to them.

new text begin Subd. 1a. new text end

new text begin Affiliate. new text end

new text begin "Affiliate" means an entity that directly or indirectly controls, is
controlled by, or is under common control with, another entity. For the purposes of this
subdivision, "control" means either the power to elect a majority of the members of the
governing body of an entity or the power, whether by contract or otherwise, to direct the
management and policies of the entity. Affiliate also means an entity whose business or
substantially all of whose property is operated under a lease, management agreement, or
operating agreement by another entity, or an entity who operates the business or substantially
all of the property of another entity under a lease, management agreement, or operating
agreement.
new text end

Subd. 2.

Authority.

"Authority" means the deleted text begin Higherdeleted text end new text begin Health and new text end Education Facilities
Authority created by sections 136A.25 to 136A.42.

Subd. 3.

Project.

"Project" means deleted text begin a structure or structures available for use as a dormitory
or other student housing facility, a dining hall, student union, administration building,
academic building, library, laboratory, research facility, classroom, athletic facility, health
care facility, child care facility, and maintenance, storage, or utility facility and other
structures or facilities related thereto or required or useful for the instruction of students or
the conducting of research or the operation of an institution of higher education, whether
proposed, under construction, or completed, including parking and other facilities or
structures essential or convenient for the orderly conduct of such institution for higher
education, and shall also include landscaping, site preparation, furniture, equipment and
machinery, and other similar items necessary or convenient for the operation of a particular
facility or structure in the manner for which its use is intended but shall not include such
items as books, fuel, supplies, or other items the costs of which are customarily deemed to
result in a current operating charge, and shall
deleted text end new text begin a health care facility or an education facility
whether proposed, under construction, or completed, and includes land or interests in land,
appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures,
furniture, machinery, equipment, and parking. Project also includes other structures, facilities,
improvements, machinery, equipment, and means of transport of a capital nature that are
necessary or convenient for the operation of the facility. Project does
new text end not includenew text begin : (1)new text end any
facility used or to be used for sectarian instruction or as a place of religious worship deleted text begin nordeleted text end new text begin ;
(2)
new text end any facility which is used or to be used primarily in connection with any part of the
program of a school or department of divinity for any religious denominationnew text begin ; nor (3) any
books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are
customarily deemed to result in a current operating charge
new text end .

Subd. 4.

Cost.

"Cost," as applied to a project or any portion thereof financed under the
provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction,
acquisition, alteration, enlargement, reconstruction and remodeling of a project including
all lands, structures, real or personal property, rights, rights-of-way, franchises, easements
and interests acquired or used for or in connection with a project, the cost of demolishing
or removing any buildings or structures on land so acquired, including the cost of acquiring
any lands to which deleted text begin suchdeleted text end buildings or structures may be moved, the cost of all machinery
and equipment, financing charges, interest prior to, during and for a period after completion
of such construction and acquisition, provisions for reserves for principal and interest and
for extensions, enlargements, additions and improvements, the cost of architectural,
engineering, financial and legal services, plans, specifications, studies, surveys, estimates
of cost and of revenues, administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the project and such other
expenses as may be necessary or incident to the construction and acquisition of the project,
the financing of such construction and acquisition and the placing of the project in operation.

Subd. 5.

Bonds.

"Bonds," or "revenue bonds" means revenue bonds of the authority
issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding
bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit
of a participating institution deleted text begin for higher educationdeleted text end or any other lawfully pledged security of
a participating institution deleted text begin for higher educationdeleted text end .

Subd. 6.

Institution of higher education.

"Institution of higher education" means a
nonprofit educational institution within the state authorized to provide a program of education
beyond the high school level.

new text begin Subd. 6a. new text end

new text begin Health care organization. new text end

new text begin (a) "Health care organization" means a nonprofit
organization located within the state and authorized by law to operate a nonprofit health
care facility in the state. Health care organization also means a nonprofit affiliate of a health
care organization as defined under this paragraph, provided the affiliate is located within
the state or within a state that is geographically contiguous to Minnesota.
new text end

new text begin (b) Health care organization also means a nonprofit organization located within another
state that is geographically contiguous to Minnesota and authorized by law to operate a
nonprofit health care facility in that state, provided that the nonprofit organization located
within the contiguous state is an affiliate of a health care organization located within the
state.
new text end

new text begin Subd. 6b. new text end

new text begin Education facility. new text end

new text begin "Education facility" means a structure or structures
available for use as a dormitory or other student housing facility, dining hall, student union,
administration building, academic building, library, laboratory, research facility, classroom,
athletic facility, student health care facility, or child care facility, and includes other facilities
or structures related thereto essential or convenient for the orderly conduct of an institution
of higher education.
new text end

new text begin Subd. 6c. new text end

new text begin Health care facility. new text end

new text begin (a) "Health care facility" means a structure or structures
available for use within this state as a hospital, clinic, psychiatric residential treatment
facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
medical office building, residence for nurses or interns, nursing home, boarding care home,
assisted living facility, residential hospice, intermediate care facility for persons with
developmental disabilities, supervised living facility, housing with services establishment,
board and lodging establishment with special services, adult day care center, day services
facility, prescribed pediatric extended care facility, community residential setting, adult
foster home, or other facility related to medical or health care research, or the delivery or
administration of health care services, and includes other structures or facilities related
thereto essential or convenient for the orderly conduct of a health care organization.
new text end

new text begin (b) Health care facility also means a facility in a state that is geographically contiguous
to Minnesota operated by a health care organization that corresponds by purpose, function,
or use with a facility listed in paragraph (a).
new text end

Subd. 7.

Participating institution deleted text begin of higher educationdeleted text end .

"Participating institution deleted text begin of
higher education
deleted text end " meansnew text begin a health care organization ornew text end an institution of higher education
that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and
construction or acquisition of a project or undertakes the refunding or refinancing of
obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42.
Community colleges and technical colleges may be considered participating institutions deleted text begin of
higher education
deleted text end for the purpose of financing and constructing child care facilities and
parking facilities.

Sec. 5.

Minnesota Statutes 2020, section 136A.29, subdivision 1, is amended to read:


Subdivision 1.

Purpose.

The purpose of the authority shall be to assist new text begin health care
organizations and
new text end institutions of higher education in the construction, financing, and
refinancing of projects. The exercise by the authority of the powers conferred by sections
136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public
function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the
powers and duties set forth in subdivisions 2 to 23.

Sec. 6.

Minnesota Statutes 2020, section 136A.29, subdivision 3, is amended to read:


Subd. 3.

Employees.

The authority is authorized and empowered to appoint and employ
employees as it may deem necessary to carry out its duties, determine the title of the
employees so employed, and fix the salary of deleted text begin saiddeleted text end new text begin itsnew text end employees. Employees of the authority
shall participate in retirement and other benefits in the same manner that employees in the
deleted text begin unclassified service of the officedeleted text end new text begin managerial plan under section 43A.18, subdivision 3,new text end
participate.

Sec. 7.

Minnesota Statutes 2020, section 136A.29, subdivision 6, is amended to read:


Subd. 6.

Projects; generally.

new text begin (a) new text end The authority is authorized and empowered to determine
the location and character of any project to be financed under the provisions of sections
136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into
contracts for any or all of such purposes, to enter into contracts for the management and
operation of a project, and to designate a participating institution deleted text begin of higher educationdeleted text end as its
agent to determine the location and character of a project undertaken by such participating
institution deleted text begin of higher educationdeleted text end under the provisions of sections 136A.25 to 136A.42 and as
the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, and as the
agent of the authority, to enter into contracts for any or all of such purposes, including
contracts for the management and operation of such project.

new text begin (b) Notwithstanding paragraph (a), a project involving a health care facility within the
state financed under sections 136A.25 to 136A.42, must comply with all applicable
requirements in state law related to authorizing construction of or modifications to a health
care facility, including the requirements of sections 144.5509, 144.551, 144A.071, and
252.291.
new text end

new text begin (c) new text end Contracts of the authority or of a participating institution deleted text begin of higher educationdeleted text end to
acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair
projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other
public contract or competitive bid law.

Sec. 8.

Minnesota Statutes 2020, section 136A.29, subdivision 9, is amended to read:


Subd. 9.

Revenue bonds; limit.

new text begin (a) new text end The authority is authorized and empowered to issue
revenue bonds whose aggregate principal amount at any time shall not exceed deleted text begin $1,300,000,000deleted text end new text begin
$4,000,000,000
new text end and to issue notes, bond anticipation notes, and revenue refunding bonds
of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for
acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving,
furnishing, or equipping one or more projects or parts thereof.

new text begin (b) Of the $4,000,000,000 limit in paragraph (a), the aggregate principal amount used
to fund education facilities may not exceed $1,750,000,000 at any time, and the aggregate
principal amount used to fund health care facilities may not exceed $2,250,000,000 at any
time.
new text end

Sec. 9.

Minnesota Statutes 2020, section 136A.29, subdivision 10, is amended to read:


Subd. 10.

Revenue bonds; issuance, purpose, conditions.

The authority is authorized
and empowered to issue revenue bonds to acquire projects from or to make loans to
participating institutions deleted text begin of higher educationdeleted text end and thereby refinance outstanding indebtedness
incurred by participating institutions deleted text begin of higher educationdeleted text end to provide funds for the acquisition,
construction or improvement of a facility before or after the enactment of sections 136A.25
to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the
authority finds that such refinancing will enhance or preserve such participating institutions
and such facilities or utilization thereof for new text begin health care or new text end educational purposes or extend
or adjust maturities to correspond to the resources available for their payment, or reduce
new text begin charges or fees imposed on patients or occupants, or new text end the tuition, chargesnew text begin ,new text end or fees imposed
on students for the use new text begin or occupancy new text end of the facilities of such participating institutions deleted text begin of
higher education
deleted text end or costs met by federal or state public funds, or enhance or preserve new text begin health
care or
new text end educational programs and research or the acquisition or improvement of other
facilities eligible to be a project or part thereof by the participating institution deleted text begin of higher
education
deleted text end . The amount of revenue bonds to be issued to refinance outstanding indebtedness
of a participating institution deleted text begin of higher educationdeleted text end shall not exceed the lesser of (a) the fair
value of the project to be acquired by the authority from the institution or mortgaged to the
authority by the institution or (b) the amount of the outstanding indebtedness including any
premium thereon and any interest accrued or to accrue to the date of redemption and any
legal, fiscal and related costs in connection with such refinancing and reasonable reserves,
as determined by the authority. The provisions of this subdivision do not prohibit the authority
from issuing revenue bonds within and charged against the limitations provided in subdivision
9 to provide funds for improvements, alteration, renovation, or extension of the project
refinanced.

Sec. 10.

Minnesota Statutes 2020, section 136A.29, subdivision 14, is amended to read:


Subd. 14.

Rules for use of projects.

The authority is authorized and empowered to
establish rules for the use of a project or any portion thereof and to designate a participating
institution deleted text begin of higher educationdeleted text end as its agent to establish rules for the use of a project undertaken
for such participating institution deleted text begin of higher educationdeleted text end .

Sec. 11.

Minnesota Statutes 2020, section 136A.29, subdivision 19, is amended to read:


Subd. 19.

Surety.

Before the issuance of any revenue bonds under the provisions of
sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution
of the authority to handle funds or sign checks of the authority shall be covered under a
surety or fidelity bond in an amount to be determined by the authority. Each such bond shall
be conditioned upon the faithful performance of the duties of the office of the member or
officer, new text begin and new text end shall be executed by a surety company authorized to transact business in the
state of Minnesota as surety. The cost of each such bond shall be paid by the authority.

Sec. 12.

Minnesota Statutes 2020, section 136A.29, subdivision 20, is amended to read:


Subd. 20.

Sale, lease, and disposal of property.

The authority is authorized and
empowered to sell, lease, releasenew text begin ,new text end or otherwise dispose of real and personal property or
interests therein, or a combination thereof, acquired by the authority under authority of
sections 136A.25 to 136A.42 and no longer needed for the purposes of deleted text begin suchdeleted text end new text begin thisnew text end chapter or
of the authority, and grant such easements and other rights in, over, under, or across a project
as will not interfere with its use of deleted text begin suchdeleted text end new text begin thenew text end property. deleted text begin Suchdeleted text end new text begin Thenew text end sale, lease, release,
disposition, or grant may be made without competitive bidding and in deleted text begin suchdeleted text end new text begin thenew text end mannernew text begin andnew text end
for such consideration as the authority in its judgment deems appropriate.

Sec. 13.

Minnesota Statutes 2020, section 136A.29, subdivision 21, is amended to read:


Subd. 21.

Loans.

The authority is authorized and empowered to make loans to any
participating institution deleted text begin of higher educationdeleted text end for the cost of a project in accordance with an
agreement between the authority and the participating institution deleted text begin of higher educationdeleted text end ;
provided that no deleted text begin suchdeleted text end loan shall exceed the total cost of the project as determined by the
participating institution deleted text begin of higher educationdeleted text end and approved by the authority.

Sec. 14.

Minnesota Statutes 2020, section 136A.29, subdivision 22, is amended to read:


Subd. 22.

Costs, expenses, and other charges.

The authority is authorized and
empowered to charge to and apportion among participating institutions deleted text begin of higher educationdeleted text end
its administrative costs and expenses incurred in the exercise of the powers and duties
conferred by sections 136A.25 to 136A.42new text begin in the manner as the authority in its judgment
deems appropriate
new text end .

Sec. 15.

Minnesota Statutes 2020, section 136A.29, is amended by adding a subdivision
to read:


new text begin Subd. 24. new text end

new text begin Determination of affiliate status. new text end

new text begin The authority is authorized and empowered
to determine whether an entity is an affiliate as defined in section 136A.28, subdivision 1a.
A determination by the authority of affiliate status shall be deemed conclusive for the
purposes of sections 136A.25 to 136A.42.
new text end

Sec. 16.

Minnesota Statutes 2020, section 136A.32, subdivision 4, is amended to read:


Subd. 4.

Provisions of resolution authorizing bonds.

Any resolution or resolutions
authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which
shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:

(1) pledging all or any part of the revenues of a project or projects, any revenue producing
contract or contracts made by the authority with deleted text begin any individual partnership, corporation or
association or other body
deleted text end new text begin one or more partnerships, corporations or associations, or other
bodies
new text end , public or private, to secure the payment of the revenue bonds or of any particular
issue of revenue bonds, subject to such agreements with bondholders as may then exist;

(2) the rentals, fees and other charges to be charged, and the amounts to be raised in
each year thereby, and the use and disposition of the revenues;

(3) the setting aside of reserves or sinking funds, and the regulation and disposition
thereof;

(4) limitations on the right of the authority or its agent to restrict and regulate the use of
the project;

(5) limitations on the purpose to which the proceeds of sale of any issue of revenue
bonds then or thereafter to be issued may be applied and pledging such proceeds to secure
the payment of the revenue bonds or any issue of the revenue bonds;

(6) limitations on the issuance of additional bonds, the terms upon which additional
bonds may be issued and secured and the refunding of outstanding bonds;

(7) the procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent thereto, and
the manner in which such consent may be given;

(8) limitations on the amount of moneys derived from the project to be expended for
operating, administrative or other expenses of the authority;

(9) defining the acts or omissions to act which shall constitute a default in the duties of
the authority to holders of its obligations and providing the rights and remedies of such
holders in the event of a default;new text begin or
new text end

(10) the mortgaging of a project and the site thereof for the purpose of securing the
bondholders.

Sec. 17.

Minnesota Statutes 2020, section 136A.33, is amended to read:


136A.33 TRUST AGREEMENT.

In the discretion of the authority any revenue bonds issued under the provisions of
sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the
authority and a corporate trustee or trustees, which may be any trust company or bank having
the powers of a trust company within the state. deleted text begin Suchdeleted text end new text begin Thenew text end trust agreement or the resolution
providing for the issuance of deleted text begin suchdeleted text end revenue bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may convey or mortgage the
project or any portion thereof. deleted text begin Suchdeleted text end new text begin Thenew text end trust agreement or resolution providing for the
issuance of deleted text begin suchdeleted text end revenue bonds may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and proper and not in
violation of laws, including particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the authority authorizing revenue
bonds thereof. Any bank or trust company incorporated under the laws of the state deleted text begin whichdeleted text end new text begin
that
new text end may act as depository of the proceeds of bonds or of revenues or other moneys may
furnish deleted text begin suchdeleted text end indemnifying bonds or deleted text begin pledges suchdeleted text end new text begin pledge new text end securities as may be required by
the authority. Any deleted text begin suchdeleted text end trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees and may restrict the individual right of action by
bondholders. In addition to the foregoing, any deleted text begin suchdeleted text end trust agreement or resolution may contain
deleted text begin suchdeleted text end other provisions as the authority may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions of deleted text begin suchdeleted text end new text begin thenew text end trust
agreement or resolution may be treated as a part of the cost of the operation of a project.

Sec. 18.

Minnesota Statutes 2020, section 136A.34, subdivision 3, is amended to read:


Subd. 3.

Investment.

Any deleted text begin suchdeleted text end escrowed proceeds, pending such use, may be invested
and reinvested in direct obligations of the United States of America, or in certificates of
deposit or time deposits secured by direct obligations of the United States of America, new text begin or
in shares or units in any money market mutual fund whose investment portfolio consists
solely of direct obligations of the United States of America,
new text end maturing at such time or times
as shall be appropriate to assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income
and profits, if any, earned or realized on any such investment may also be applied to the
payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of such proceeds and interest, income
and profits, if any, earned or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.

Sec. 19.

Minnesota Statutes 2020, section 136A.34, subdivision 4, is amended to read:


Subd. 4.

Additional purpose; improvements.

The portion of the proceeds of any deleted text begin suchdeleted text end
revenue bonds issued for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions or enlargements of a project
may be invested or deposited deleted text begin in time depositsdeleted text end as provided in section 136A.32, subdivision
7
.

Sec. 20.

Minnesota Statutes 2020, section 136A.36, is amended to read:


136A.36 REVENUES.

The authority may fix, revise, charge and collect rates, rents, fees and charges for the
use of and for the services furnished or to be furnished by each project and deleted text begin todeleted text end new text begin maynew text end contract
with any person, partnership, association or corporation, or other body, public or private,
in respect thereof. deleted text begin Suchdeleted text end new text begin Thenew text end rates, rents, feesnew text begin ,new text end and charges new text begin may vary between projects
involving an education facility and projects involving a health care facility and
new text end shall be
fixed and adjusted in respect of the aggregate of rates, rents, feesnew text begin ,new text end and charges from deleted text begin suchdeleted text end new text begin
the
new text end project so as to provide funds sufficient with other revenues, if any:

(1) to pay the cost of maintaining, repairing and operating the project and each and every
portion thereof, to the extent that the payment of such cost has not otherwise been adequately
provided for;

(2) to pay the principal of and the interest on outstanding revenue bonds of the authority
issued in respect of such project as the same shall become due and payable; and

(3) to create and maintain reserves required or provided for in any resolution authorizing,
or trust agreement securing, deleted text begin suchdeleted text end revenue bonds of the authority. deleted text begin Suchdeleted text end new text begin Thenew text end rates, rents, fees
and charges shall not be subject to supervision or regulation by any department, commission,
board, body, bureau or agency of this state other than the authority. A sufficient amount of
the revenues derived in respect of a project, except deleted text begin suchdeleted text end part of deleted text begin suchdeleted text end new text begin thenew text end revenues as may
be necessary to pay the cost of maintenance, repair and operation and to provide reserves
and for renewals, replacements, extensions, enlargements and improvements as may be
provided for in the resolution authorizing the issuance of any revenue bonds of the authority
or in the trust agreement securing the same, shall be set aside at such regular intervals as
may be provided in deleted text begin suchdeleted text end new text begin thenew text end resolution or trust agreement in a sinking or other similar fund
deleted text begin whichdeleted text end new text begin thatnew text end is hereby pledged to, and charged with, the payment of the principal of and the
interest on deleted text begin suchdeleted text end revenue bonds as the same shall become due, and the redemption price or
the purchase price of bonds retired by call or purchase as therein provided. deleted text begin Suchdeleted text end new text begin Thenew text end pledge
shall be valid and binding from the time when the pledge is made; the rates, rents, fees and
charges and other revenues or other moneys so pledged and thereafter received by the
authority shall immediately be subject to the lien of deleted text begin suchdeleted text end new text begin thenew text end pledge without physical delivery
thereof or further act, and the lien of any such pledge shall be valid and binding as against
all parties having claims of any kind against the authority, irrespective of whether such
parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge
is created need be filed or recorded except in the records of the authority. The use and
disposition of moneys to the credit of such sinking or other similar fund shall be subject to
the provisions of the resolution authorizing the issuance of such bonds or of such trust
agreement. Except as may otherwise be provided in deleted text begin suchdeleted text end new text begin thenew text end resolution or deleted text begin suchdeleted text end trust
agreement, deleted text begin suchdeleted text end new text begin thenew text end sinking or other similar fund shall be a fund for all deleted text begin suchdeleted text end revenue bonds
issued to finance a project or projects at one or more participating institutions deleted text begin of higher
education
deleted text end without distinction or priority of one over another; provided the authority in any
such resolution or trust agreement may provide that such sinking or other similar fund shall
be the fund for a particular project at deleted text begin andeleted text end new text begin a participatingnew text end institution deleted text begin of higher educationdeleted text end and
for the revenue bonds issued to finance a particular project and may, additionally, permit
and provide for the issuance of revenue bonds having a subordinate lien in respect of the
security herein authorized to other revenue bonds of the authority and, in such case, the
authority may create separate or other similar funds in respect of deleted text begin suchdeleted text end new text begin thenew text end subordinate lien
bonds.

Sec. 21.

Minnesota Statutes 2020, section 136A.38, is amended to read:


136A.38 BONDS ELIGIBLE FOR INVESTMENT.

Bonds issued bynew text begin thenew text end authority under the provisions of sections 136A.25 to 136A.42, are
hereby made securities in which all public officers and public bodies of the state and its
political subdivisions, all insurance companies, trust companies, banking associations,
investment companies, executors, administrators, trustees and other fiduciaries may properly
and legally invest funds, including capital in their control or belonging to them; it being the
purpose of this section to authorize the investment in such bonds of all sinking, insurance,
retirement, compensation, pension and trust funds, whether owned or controlled by private
or public persons or officers; provided, however, that nothing contained in this section may
be construed as relieving any person, firm, or corporation from any duty of exercising due
care in selecting securities for purchase or investment; and provide further, that in no event
shall assets of pension funds of public employees of the state of Minnesota or any of its
agencies, boards or subdivisions, whether publicly or privately administered, be invested
in bonds issued under the provisions of sections 136A.25 to 136A.42. Such bonds are hereby
constituted "authorized securities" within the meaning and for the purposes of Minnesota
Statutes 1969, section 50.14. deleted text begin Suchdeleted text end new text begin Thenew text end bonds are hereby made securities deleted text begin whichdeleted text end new text begin thatnew text end may
properly and legally be deposited with and received by any state or municipal officer or any
agency or political subdivision of the state for any purpose for which the deposit of bonds
or obligations of the state now or may hereafter be authorized by law.

Sec. 22.

Minnesota Statutes 2020, section 136A.41, is amended to read:


136A.41 CONFLICT OF INTEREST.

Notwithstanding any other law to the contrary it shall not be or constitute a conflict of
interest for a trustee, director, officer or employee of any participating institution deleted text begin of higher
education
deleted text end , financial institution, investment banking firm, brokerage firm, commercial bank
or trust company, architecture firm, insurance company, construction company, or any other
firm, person or corporation to serve as a member of the authority, provided such trustee,
director, officer or employee shall abstain from deliberation, action and vote by the authority
in each instance where the business affiliation of any such trustee, director, officer or
employee is involved.

Sec. 23.

Minnesota Statutes 2020, section 136A.42, is amended to read:


136A.42 ANNUAL REPORT.

The authority shall keep an accurate account of all of its activities and all of its receipts
and expenditures deleted text begin and shall annually report to the officedeleted text end .new text begin Each year, the authority shall submit
to the Minnesota Historical Society and the Legislative Reference Library a report of the
authority's activities in the previous year, including all financial activities.
new text end

Sec. 24. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the law establishing and governing the Minnesota
Higher Education Facilities Authority, renamed the Minnesota Health and Education
Facilities Authority in this act, as Minnesota Statutes, chapter 16F, coded in Minnesota
Statutes 2020, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor
of statutes shall also duplicate any required definitions from Minnesota Statutes, chapter
136A, revise any statutory cross-references consistent with the recoding, and report the
history in Minnesota Statutes, chapter 16F.
new text end

Sec. 25. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2020, section 136A.29, subdivision 4, new text end new text begin is repealed.
new text end

ARTICLE 4

MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY
CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2020, section 3.732, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the deleted text begin Higherdeleted text end new text begin Health andnew text end Education Facilities Authority, the Health Technology
Advisory Committee, the Armory Building Commission, the Zoological Board, the
Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society,
the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges
and Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2021 Supplement, section 10A.01, subdivision 35, is amended
to read:


Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative
Hearings or unemployment law judge in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department
of Public Safety;

(15) member or executive director of the deleted text begin Higherdeleted text end new text begin Health andnew text end Education Facilities
Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High
School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization
as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established
in section 473J.07;

(26) district court judge, appeals court judge, or supreme court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission;

(29) member of the Destination Medical Center Corporation established in section
469.41; or

(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges
and Universities.

Sec. 3.

Minnesota Statutes 2020, section 136F.67, subdivision 1, is amended to read:


Subdivision 1.

Authorization.

A technical college or a community college must not
seek financing for child care facilities or parking facilities through the deleted text begin Higherdeleted text end new text begin Health andnew text end
Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the
explicit authorization of the board.

Sec. 4.

Minnesota Statutes 2020, section 354B.20, subdivision 7, is amended to read:


Subd. 7.

Employing unit.

"Employing unit," if the agency employs any persons covered
by the individual retirement account plan under section 354B.211, means:

(1) the board;

(2) the Minnesota Office of Higher Education; and

(3) the deleted text begin Higherdeleted text end new text begin Health andnew text end Education Facilities Authority.

APPENDIX

Repealed Minnesota Statutes: UEH3872-1

136A.29 POWERS; DUTIES.

Subd. 4.

Mutual agreement; staff, equipment, office space.

By mutual agreement between the authority and the office, authority staff employees may also be members of the office staff. By mutual agreement, authority employees may be provided office space in the office of the Office of Higher Education, and said employees may make use of equipment, supplies, and office space, provided that the authority fully reimburses the office for salaries and for space, equipment, supplies, and materials used. In the absence of such mutual agreement between the authority and the office, the authority may maintain an office at such place or places as it may designate.

136F.03 CANDIDATE ADVISORY COUNCIL.

Subdivision 1.

Purpose.

A Candidate Advisory Council for the board shall assist the governor in determining criteria for, and identifying and recruiting qualified candidates for, nonstudent membership on the board.

Subd. 2.

Membership.

The advisory council consists of 24 members. Twelve members are appointed by the Subcommittee on Committees of the Committee on Rules and Administration of the senate. Twelve members are appointed by the speaker of the house. No more than one-third of the members appointed by each appointing authority may be current or former legislators. No more than two-thirds of the members appointed by each appointing authority may belong to the same political party; however, political activity or affiliation is not required for the appointment of a member. Geographical representation must be taken into consideration when making appointments. Section 15.0575 governs the advisory council, except that the members must be appointed to six-year terms.

Subd. 3.

Duties.

(a) The advisory council shall:

(1) develop a statement of the selection criteria to be applied and a description of the responsibilities and duties of a member of the board and shall distribute this to potential candidates; and

(2) for each position on the board, identify and recruit qualified candidates for the board, based on the background and experience of the candidates, and their potential for discharging the responsibilities of a member of the board.

(b) Selection criteria developed under this section must include the requirement that trustees represent diversity in geography, gender, race, occupation, and experience.

(c) Selection criteria developed under this section must also include the identification of the membership needs of the board for individual skills relevant to the governance of the Minnesota State Colleges and Universities and the needs for certain individual characteristics that include geographic location, gender, race, occupation, and experience.

Subd. 4.

Recommendations.

Except for seats filled under sections 136F.04 and 136F.045, the advisory council shall recommend at least two and not more than four candidates for each seat. By April 15 of each even-numbered year in which the governor makes appointments to the board, the advisory council shall submit its recommendations to the governor and to the chairs and ranking minority members of the legislative committees with primary jurisdiction over higher education policy and finance. The governor is not bound by these recommendations.

Subd. 5.

Support services.

The Legislative Coordinating Commission shall provide administrative and support services for the advisory council.