HF 3900

as introduced - 90th Legislature (2017 - 2018) Posted on 03/15/2018 02:30pm

A bill for an act
relating to higher education; modifying certain higher education policy provisions;
amending Minnesota Statutes 2016, sections 127A.70, subdivision 2; 136A.15,
subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9; 136A.162; 136A.1701,
subdivision 7; 136A.64, subdivision 1; 136A.822, subdivision 10; Minnesota
Statutes 2017 Supplement, sections 136A.1275, subdivisions 2, 3; 136A.646;
136A.822, subdivision 6; 136A.8295, by adding a subdivision; Laws 2017, chapter
89, article 1, section 2, subdivision 29; repealing Minnesota Statutes 2016, sections
136A.15, subdivisions 2, 7; 136A.1701, subdivision 12.

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

Section 1.

Minnesota Statutes 2016, section 127A.70, subdivision 2, is amended to read:

Subd. 2.

Powers and duties; report.

(a) The partnership shall develop recommendations
to the governor and the legislature designed to maximize the achievement of all P-20 students
while promoting the efficient use of state resources, thereby helping the state realize the
maximum value for its investment. These recommendations may include, but are not limited
to, strategies, policies, or other actions focused on:

(1) improving the quality of and access to education at all points from preschool through
graduate education;

(2) improving preparation for, and transitions to, postsecondary education and work;

(3) ensuring educator quality by creating rigorous standards for teacher recruitment,
teacher preparation, induction and mentoring of beginning teachers, and continuous
professional development for career teachers; and

(4) realigning the governance and administrative structures of early education,
kindergarten through grade 12, and postsecondary systems in Minnesota.

(b) Under the direction of the P-20 Education Partnership Statewide Longitudinal
Education Data System Governance Committee, the Office of Higher Education and the
Departments of Education and Employment and Economic Development shall improve and
expand the Statewide Longitudinal Education Data System (SLEDS) to provide policymakers,
education and workforce leaders, researchers, and members of the public with data, research,
and reports to:

(1) expand reporting on students' educational outcomes for diverse student populations
including at-risk students, children with disabilities, English learners, and gifted students,
among others, and include formative and summative evaluations based on multiple measures
of new text begin child well-being, early childhood development, and new text end student progress toward career and
college readiness;

(2) evaluate the effectiveness of new text begin (i) investments in young children and families and (ii)
new text end educational and workforce programs; and

(3) evaluate the relationship between new text begin (i) investments in young children and families and
(ii) new text end education and workforce outcomes, consistent with section 124D.49.

To the extent possible under federal and state law, research and reports should be
accessible to the public on the Internet, and disaggregated by demographic characteristics,
organization or organization characteristics, and geography.

It is the intent of the legislature that the Statewide Longitudinal Education Data System
inform public policy and decision-making. The SLEDS governance committee, with
assistance from staff of the Office of Higher Education, the Department of Education, and
the Department of Employment and Economic Development, shall respond to legislative
committee and agency requests on topics utilizing data made available through the Statewide
Longitudinal Education Data System as resources permit. Any analysis of or report on the
data must contain only summary data.

(c) By January 15 of each year, the partnership shall submit a report to the governor and
to the chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over P-20 education policy and finance that summarizes the partnership's progress
in meeting its goals and identifies the need for any draft legislation when necessary to further
the goals of the partnership to maximize student achievement while promoting efficient use
of resources.

Sec. 2.

Minnesota Statutes 2017 Supplement, section 136A.1275, subdivision 2, is amended
to read:

Subd. 2.

Eligibility.

To be eligible for a grant under this section, a teacher candidate
must:

(1) be enrolled in a Professional Educator Licensing and Standards Board-approved
teacher preparation program that requires at least 12 weeks of student teaching in order to
be recommended for a full professional teaching license;

(2) demonstrate financial need based on criteria established by the commissioner under
subdivision 3;

(3) deleted text begin intend to teach in a shortage area or belong to an underrepresented racial or ethnic
group deleted text end new text begin be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10 new text end ; and

(4) deleted text begin be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10. deleted text end new text begin intend to teach in a shortage area or belong to an underrepresented racial
or ethnic group. Intent can be documented based on the teacher license field the student is
pursuing or a statement of intent to teach in an economic development region defined as a
shortage area in the year the student receives a grant.
new text end

Sec. 3.

Minnesota Statutes 2017 Supplement, section 136A.1275, subdivision 3, is amended
to read:

Subd. 3.

Administration; repayment.

(a) The commissioner must establish an
application process and other guidelines for implementing this program deleted text begin , including repayment
responsibilities for stipend recipients who do not complete student teaching or who leave
Minnesota to teach in another state during the first year after student teaching deleted text end .

(b) The commissioner must determine each academic year the stipend amount up to
$7,500 based on the amount of available funding, the number of eligible applicants, and the
financial need of the applicants.

(c) The percentage of the total award new text begin funds available at the beginning of the fiscal year
new text end reserved for teacher candidates who identify as belonging to deleted text begin an underrepresented deleted text end new text begin a new text end racial
or ethnic group new text begin underrepresented in the Minnesota teacher workforce new text end must be equal to or
greater than the total percentage of students of deleted text begin underrepresented deleted text end racial or ethnic groups
new text begin underrepresented in the Minnesota teacher workforce new text end as measured under section 120B.35,
subdivision 3. If this percentage cannot be met because of a lack of qualifying candidates,
the remaining amount may be awarded to teacher candidates who intend to teach in a shortage
area.

Sec. 4.

Minnesota Statutes 2016, section 136A.15, subdivision 8, is amended to read:

Subd. 8.

Eligible student.

"Eligible student" means a student who is officially registered
or accepted for enrollment at an eligible institution in Minnesota or a Minnesota resident
who is officially registered as a student or accepted for enrollment at an eligible institution
in another state deleted text begin or province deleted text end . new text begin Non-Minnesota residents are eligible students if they are enrolled
or accepted for enrollment in a minimum of one course of at least 30 days in length during
the academic year that requires physical attendance at an eligible institution located in
Minnesota. Non-Minnesota resident students enrolled exclusively during the academic year
in correspondence courses or courses offered over the Internet are not eligible students.
Non-Minnesota resident students not physically attending classes in Minnesota due to
enrollment in a study abroad program for 12 months or less are eligible students.
Non-Minnesota residents enrolled in study abroad programs exceeding 12 months are not
eligible students. new text end An eligible student, for section 136A.1701, means a student who gives
informed consent authorizing the disclosure of data specified in section 136A.162, paragraph
(c), to a consumer credit reporting agency.

Sec. 5.

Minnesota Statutes 2016, section 136A.16, subdivision 1, is amended to read:

Subdivision 1.

Designation.

Notwithstanding chapter 16C, the office is designated as
the administrative agency for carrying out the purposes and terms of sections 136A.15 to
deleted text begin 136A.1702 deleted text end new text begin 136A.1704 new text end . The office may establish one or more loan programs.

Sec. 6.

Minnesota Statutes 2016, section 136A.16, subdivision 2, is amended to read:

Subd. 2.

Rules new text begin , policies, and conditions new text end .

The office shall adopt policies and new text begin may
new text end prescribe appropriate rules new text begin and conditions new text end to carry out the purposes of sections 136A.15 to
136A.1702. deleted text begin The policies and rules except as they relate to loans under section 136A.1701
must be compatible with the provisions of the National Vocational Student Loan Insurance
Act of 1965 and the provisions of title IV of the Higher Education Act of 1965, and any
amendments thereof.
deleted text end

Sec. 7.

Minnesota Statutes 2016, section 136A.16, subdivision 5, is amended to read:

Subd. 5.

Agencies.

The office may contract with loan servicers, collection agencies,
credit bureaus, or any other person, to carry out the purposes of sections 136A.15 to
deleted text begin 136A.1702 deleted text end new text begin 136A.1704 new text end .

Sec. 8.

Minnesota Statutes 2016, section 136A.16, subdivision 8, is amended to read:

Subd. 8.

Investment.

Money made available to the office that is not immediately needed
for the purposes of sections 136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1704 new text end may be invested by the
office. The money must be invested in bonds, certificates of indebtedness, and other fixed
income securities, except preferred stocks, which are legal investments for the permanent
school fund. The money may also be invested in prime quality commercial paper that is
eligible for investment in the state employees retirement fund. All interest and profits from
such investments inure to the benefit of the office or may be pledged for security of bonds
issued by the office or its predecessors.

Sec. 9.

Minnesota Statutes 2016, section 136A.16, subdivision 9, is amended to read:

Subd. 9.

Staff.

The office may employ the professional and clerical staff the commissioner
deems necessary for the proper administration of the loan programs established and defined
by sections 136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1704 new text end .

Sec. 10.

Minnesota Statutes 2016, section 136A.162, is amended to read:

136A.162 CLASSIFICATION OF DATA.

(a) Except as provided in paragraphs (b) and (c), data on applicants for financial assistance
collected and used by the office for student financial aid programs administered by that
office are private data on individuals as defined in section 13.02, subdivision 12.

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

(c) The following data collected in the Minnesota supplemental loan program under
deleted text begin section deleted text end new text begin sections new text end 136A.1701 new text begin and 136A.1704 new text end may be disclosed to a consumer credit reporting
agency only if the borrower and the cosigner give informed consent, according to section
13.05, subdivision 4, at the time of application for a loan:

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 11.

Minnesota Statutes 2016, section 136A.1701, subdivision 7, is amended to read:

Subd. 7.

Repayment of loans.

deleted text begin (a) deleted text end The office shall establish repayment procedures for
loans made under this section deleted text begin , but in no event shall the period of permitted repayment for
SELF II or SELF III loans exceed ten years from the eligible student's termination of the
student's postsecondary academic or vocational program, or 15 years from the date of the
student's first loan under this section, whichever is less. deleted text end new text begin in accordance with the policies,
rules, and conditions authorized under section 136A.16, subdivision 2. The office will take
into consideration the loan limits and current financial market conditions when establishing
repayment terms.
new text end

deleted text begin (b) For SELF IV loans, eligible students with aggregate principal loan balances from
all SELF phases that are less than $18,750 shall have a repayment period not exceeding ten
years from the eligible student's graduation or termination date. For SELF IV loans, eligible
students with aggregate principal loan balances from all SELF phases of $18,750 or greater
shall have a repayment period not exceeding 15 years from the eligible student's graduation
or termination date. For SELF IV loans, the loans shall enter repayment no later than seven
years after the first disbursement date on the loan.
deleted text end

deleted text begin (c) For SELF loans from phases after SELF IV, eligible students with aggregate principal
loan balances from all SELF phases that are:
deleted text end

deleted text begin (1) less than $20,000, must have a repayment period not exceeding ten years from the
eligible student's graduation or termination date;
deleted text end

deleted text begin (2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years from
the eligible student's graduation or termination date; and
deleted text end

deleted text begin (3) $40,000 or greater, must have a repayment period not exceeding 20 years from the
eligible student's graduation or termination date. For SELF loans from phases after SELF
IV, the loans must enter repayment no later than nine years after the first disbursement date
of the loan.
deleted text end

Sec. 12.

Minnesota Statutes 2016, section 136A.64, subdivision 1, is amended to read:

Subdivision 1.

Schools to provide information.

As a basis for registration, schools
shall provide the office with such information as the office needs to determine the nature
and activities of the school, including but not limited to the following which shall be
accompanied by an affidavit attesting to its accuracy and truthfulness:

(1) articles of incorporation, constitution, bylaws, or other operating documents;

(2) a duly adopted statement of the school's mission and goals;

(3) evidence of current school or program licenses granted by departments or agencies
of any state;

(4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate past
fiscal year including any management letters provided by the independent auditor or, if the
school is a public institution outside Minnesota, an income statement for the immediate past
fiscal year;

(5) all current promotional and recruitment materials and advertisements; and

(6) the current school catalog and, if not contained in the catalog:

(i) the members of the board of trustees or directors, if any;

(ii) the current institutional officers;

(iii) current full-time and part-time faculty with degrees held or applicable experience;

(iv) a description of all school facilities;

(v) a description of all current course offerings;

(vi) all requirements for satisfactory completion of courses, programs, and degrees;

(vii) the school's policy about freedom or limitation of expression and inquiry;

(viii) a current schedule of fees, charges for tuition, required supplies, student activities,
housing, and all other standard charges;

(ix) the school's policy about refunds and adjustments;

(x) the school's policy about granting credit for prior education, training, and experience;
deleted text begin and
deleted text end

(xi) the school's policies about student admission, evaluation, suspension, and dismissal deleted text begin . deleted text end new text begin ;
and
new text end

new text begin (xii) the school's disclosure to students on the student complaint process under section
136A.672.
new text end

Sec. 13.

Minnesota Statutes 2017 Supplement, section 136A.646, is amended to read:

136A.646 ADDITIONAL SECURITY.

(a) New schools that have been granted conditional approval for degrees or names to
allow them the opportunity to apply for and receive accreditation under section 136A.65,
subdivision 7, deleted text begin or deleted text end new text begin shall provide a surety bond in a sum equal to ten percent of the net revenue
from tuition and fees in the registered institution's prior fiscal year, but in no case shall the
bond be less than $10,000.
new text end

new text begin (b) new text end Any registered institution that is notified by the United States Department of Education
that it has fallen below minimum financial standards and that its continued participation in
Title IV will be conditioned upon its satisfying either the Zone Alternative, Code of Federal
Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit Alternative, Code
of Federal Regulations, title 34, section 668.175, paragraph (c), shall provide a surety bond
in a sum equal to the "letter of credit" required by the United States Department of Education
in the Letter of Credit Alternative, but in no event shall such bond be less than $10,000 nor
more than $250,000. new text begin In the event the letter of credit required by the United States Department
of Education is higher than ten percent of the Title IV, Higher Education Act program funds
received by the institution during its most recently completed fiscal year, the office shall
reduce the office's surety requirement to represent ten percent of the Title IV, Higher
Education Act program funds received by the institution during its most recently completed
fiscal year, subject to the minimum and maximum in this paragraph.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end In lieu of a bond, the applicant may deposit with the commissioner of management
and budget:

(1) a sum equal to the amount of the required surety bond in cash;

(2) securities, as may be legally purchased by savings banks or for trust funds, in an
aggregate market value equal to the amount of the required surety bond; or

(3) an irrevocable letter of credit issued by a financial institution to the amount of the
required surety bond.

deleted text begin (c) deleted text end new text begin (d) new text end The surety of any bond may cancel it upon giving 60 days' notice in writing to
the office and shall be relieved of liability for any breach of condition occurring after the
effective date of cancellation.

deleted text begin (d) deleted text end new text begin (e) new text end In the event of a school closure, the additional security must first be used to
destroy any private educational data under section 13.32 left at a physical campus in
Minnesota after all other governmental agencies have recovered or retrieved records under
their record retention policies. Any remaining funds must then be used to reimburse tuition
and fee costs to students that were enrolled at the time of the closure or had withdrawn in
the previous 120 calendar days but did not graduate. Priority for refunds will be given to
students in the following order:

(1) cash payments made by the student or on behalf of a student;

(2) private student loans; and

(3) Veteran Administration education benefits that are not restored by the Veteran
Administration. If there are additional security funds remaining, the additional security
funds may be used to cover any administrative costs incurred by the office related to the
closure of the school.

Sec. 14.

Minnesota Statutes 2017 Supplement, section 136A.822, subdivision 6, is amended
to read:

Subd. 6.

Bond.

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

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

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

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

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

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

Sec. 15.

Minnesota Statutes 2016, section 136A.822, subdivision 10, is amended to read:

Subd. 10.

Catalog, brochure, or electronic display.

Before a license is issued to a
private career school, the private career school shall furnish to the office a catalog, brochure,
or electronic display including:

(1) identifying data, such as volume number and date of publication;

(2) name and address of the private career school and its governing body and officials;

(3) a calendar of the private career school showing legal holidays, beginning and ending
dates of each course quarter, term, or semester, and other important dates;

(4) the private career school policy and regulations on enrollment including dates and
specific entrance requirements for each program;

(5) the private career school policy and regulations about leave, absences, class cuts,
make-up work, tardiness, and interruptions for unsatisfactory attendance;

(6) the private career school policy and regulations about standards of progress for the
student including the grading system of the private career school, the minimum grades
considered satisfactory, conditions for interruption for unsatisfactory grades or progress, a
description of any probationary period allowed by the private career school, and conditions
of reentrance for those dismissed for unsatisfactory progress;

(7) the private career school policy and regulations about student conduct and conditions
for dismissal for unsatisfactory conduct;

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
activities, laboratory fees, service charges, rentals, deposits, and all other charges;

(9) the private career school policy and regulations, including an explanation of section
136A.827, about refunding tuition, fees, and other charges if the student does not enter the
program, withdraws from the program, or the program is discontinued;

(10) a description of the available facilities and equipment;

(11) a course outline syllabus for each course offered showing course objectives, subjects
or units in the course, type of work or skill to be learned, and approximate time, hours, or
credits to be spent on each subject or unit;

(12) the private career school policy and regulations about granting credit for previous
education and preparation;

(13) a notice to students relating to the transferability of any credits earned at the private
career school to other institutions;

(14) a procedure for investigating and resolving student complaints; deleted text begin and
deleted text end

(15) the name and address of the office deleted text begin . deleted text end new text begin ; and
new text end

new text begin (16) the student complaint process and rights under section 136A.8295.
new text end

A private career school that is exclusively a distance education school is exempt from
clauses (3) and (5).

Sec. 16.

Minnesota Statutes 2017 Supplement, section 136A.8295, is amended by adding
a subdivision to read:

new text begin Subd. 6. new text end

new text begin Disclosure. new text end

new text begin Schools must disclose on their Web site, student handbook, and
student catalog the student complaint process under this section to students.
new text end

Sec. 17.

Laws 2017, chapter 89, article 1, section 2, subdivision 29, is amended to read:

Subd. 29. Emergency Assistance for Postsecondary Students

175,000

175,000

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

(b) This appropriation shall be used to meet
immediate student needs that could result in
a student not completing the term or their
program including, but not limited to,
emergency housing, food, and transportation.
deleted text begin Emergency assistance does not impact the
amount of state financial aid received.
deleted text end

(c) The commissioner shall determine the
application process and the grant amounts.
Any balance in the first year does not cancel
but shall be available in the second year. The
Office of Higher Education shall partner with
interested postsecondary institutions, other
state agencies, and student groups to establish
the programs.

Sec. 18. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2016, sections 136A.15, subdivisions 2 and 7; and 136A.1701,
subdivision 12, new text end new text begin are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 18-6580

136A.15 DEFINITIONS.

Subd. 2.

Academic year or its equivalent.

"Academic year or its equivalent" shall be as defined in the federal regulations which govern the administration of the National Vocational Student Loan Insurance Act of 1965 and title IV of the Higher Education Act of 1965.

Subd. 7.

Eligible lender.

"Eligible lender" means an eligible institution, an agency or instrumentality of a state, or a financial or credit institution (including an insurance company) which is subject to examination and supervision by an agency of the state of Minnesota or of the United States.

136A.1701 SUPPLEMENTAL AND ADDITIONAL LOANS.

Subd. 12.

Eligible student.

"Eligible student" means a student who is a Minnesota resident who is enrolled or accepted for enrollment at an eligible institution in Minnesota or in another state or province. Non-Minnesota residents are eligible students if they are enrolled or accepted for enrollment in a minimum of one course of at least 30 days in length during the academic year that requires physical attendance at an eligible institution located in Minnesota. Non-Minnesota resident students enrolled exclusively during the academic year in correspondence courses or courses offered over the Internet are not eligible students. Non-Minnesota resident students not physically attending classes in Minnesota due to enrollment in a study abroad program for 12 months or less are eligible students. Non-Minnesota residents enrolled in study abroad programs exceeding 12 months are not eligible students. For purposes of this section, an "eligible student" must also meet the eligibility requirements of section 136A.15, subdivision 8.