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Capital IconMinnesota Legislature

HF 7

1st Engrossment - 92nd Legislature, 2021 1st Special Session (2021 - 2021) Posted on 06/26/2021 12:07pm

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to higher education; providing funding and policy changes for the Office
of Higher Education, Minnesota State Colleges and Universities, the University
of Minnesota, and the Mayo Clinic; creating and modifying certain student aid
programs; restricting limitations on student access to transcripts; modifying certain
school accountability provisions; expanding the hunger-free campus designation;
establishing a pilot project; requiring reports; appropriating money; amending
Minnesota Statutes 2020, sections 136A.101, subdivision 5a; 136A.121,
subdivisions 2, 6, 9; 136A.123, subdivision 1; 136A.125, subdivisions 2, 4;
136A.126, subdivisions 1, 4; 136A.1275; 136A.1704; 136A.1791; 136A.246,
subdivisions 1, 2, 3, 4, 5, 6, 7, 8, by adding a subdivision; 136A.63, subdivision
2; 136A.645; 136A.653, subdivision 5; 136A.675; 136A.68; 136A.822, subdivision
12; 136A.8225; 136A.823, by adding a subdivision; 136A.827, subdivisions 4, 8;
136F.20, by adding a subdivision; 136F.245; 136F.305; 136F.38, subdivision 3;
Laws 2014, chapter 312, article 1, section 4, subdivision 2; proposing coding for
new law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota Statutes
2020, sections 136A.1703; 136A.823, subdivision 2; 136F.245, subdivision 3;
Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; 4830.9090.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2022" and "2023" used in this article 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 beginMINNESOTA 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 271,702,000
new text end
new text begin $
new text end
new text begin 274,269,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Grants
new text end

new text begin 210,037,000
new text end
new text begin 210,037,000
new text end

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

new text begin Subd. 3. new text end

new text begin Child Care Grants
new text end

new text begin 6,694,000
new text end
new text begin 6,694,000
new text end

new text begin Subd. 4. new text end

new text begin State Work-Study
new text end

new text begin 14,502,000
new text end
new text begin 14,502,000
new text end

new text begin Subd. 5. new text end

new text begin Interstate Tuition Reciprocity
new text end

new text begin 8,500,000
new text end
new text begin 8,500,000
new text end

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

new text begin Subd. 6. new text end

new text begin Safety Officer's Survivors
new text end

new text begin 100,000
new text end
new text begin 100,000
new text end

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

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

new text begin Subd. 7. new text end

new text begin American Indian Scholarships
new text end

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

new text begin The commissioner must contract with or
employ at least one person with demonstrated
competence in American Indian culture and
residing in or near the city of Bemidji to assist
students with the scholarships under
Minnesota Statutes, section 136A.126, and
with other information about financial aid for
which the students may be eligible. Bemidji
State University must provide office space at
no cost to the Office of Higher Education for
purposes of administering the American Indian
scholarship program under Minnesota Statutes,
section 136A.126. This appropriation includes
funding to administer the American Indian
scholarship program.
new text end

new text begin Subd. 8. new text end

new text begin Tribal College Grants
new text end

new text begin 150,000
new text end
new text begin 150,000
new text end

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

new text begin Subd. 9. new text end

new text begin Intervention for College Attendance
Program Grants
new text end

new text begin 1,143,000
new text end
new text begin 1,142,000
new text end

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

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

new text begin Subd. 10. new text end

new text begin Student-Parent Information
new text end

new text begin 122,000
new text end
new text begin 122,000
new text end

new text begin Subd. 11. new text end

new text begin Get Ready!
new text end

new text begin 180,000
new text end
new text begin 180,000
new text end

new text begin Subd. 12. new text end

new text begin Minnesota Education Equity
Partnership
new text end

new text begin 45,000
new text end
new text begin 45,000
new text end

new text begin Subd. 13. new text end

new text begin Midwest Higher Education Compact
new text end

new text begin 115,000
new text end
new text begin 115,000
new text end

new text begin Subd. 14. new text end

new text begin United Family Medicine Residency
Program
new text end

new text begin 501,000
new text end
new text begin 501,000
new text end

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

new text begin Subd. 15. new text end

new text begin MnLINK Gateway and Minitex
new text end

new text begin 5,905,000
new text end
new text begin 5,905,000
new text end

new text begin Subd. 16. new text end

new text begin Statewide Longitudinal Education
Data System
new text end

new text begin 1,782,000
new text end
new text begin 1,782,000
new text end

new text begin Subd. 17. new text end

new text begin Hennepin Healthcare
new text end

new text begin 645,000
new text end
new text begin 645,000
new text end

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

new text begin Subd. 18. new text end

new text begin College Possible
new text end

new text begin 550,000
new text end
new text begin 550,000
new text end

new text begin (a) This appropriation is for immediate transfer
to College Possible to support programs of
college admission and college graduation for
low-income students through an intensive
curriculum of coaching and support at both
the high school and postsecondary levels.
new text end

new text begin (b) This appropriation must, to the extent
possible, be proportionately allocated between
students from greater Minnesota and students
in the seven-county metropolitan area.
new text end

new text begin (c) This appropriation must be used by College
Possible only for programs supporting students
who are residents of Minnesota and attending
colleges or universities within Minnesota.
new text end

new text begin (d) By February 1 of each year, College
Possible must report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over higher education and E-12 education on
activities funded by this appropriation. The
report must include but is not limited to
information about the work of College
Possible Minnesota throughout the state; the
number of College Possible coaches hired; the
number of existing partner high schools; the
geographic distribution of participants; the
number of high school and college students
specifically supported by the appropriations
funds; the percentages of students who applied
to college, were admitted into college, and
enrolled in college from the previous program
year; the number of college graduates
supported by the appropriation funding in the
previous program year; and a list of all
communities and partner institutions
benefiting from coaching and support through
College Possible programming.
new text end

new text begin Subd. 19. new text end

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

new text begin 3,000,000
new text end
new text begin 3,000,000
new text end

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

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

new text begin Subd. 20. new text end

new text begin Summer Academic Enrichment
Program
new text end

new text begin 250,000
new text end
new text begin 250,000
new text end

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

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

new text begin Subd. 21. new text end

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

new text begin 2,000,000
new text end
new text begin 2,000,000
new text end

new text begin For transfer to the Dual Training Competency
Grants account in the special revenue fund
under Minnesota Statutes, section 136A.246,
subdivision 10.
new text end

new text begin Subd. 22. new text end

new text begin Campus Sexual Assault Reporting
new text end

new text begin 25,000
new text end
new text begin 25,000
new text end

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

new text begin Subd. 23. new text end

new text begin Campus Sexual Violence Prevention
and Response Coordinator
new text end

new text begin 150,000
new text end
new text begin 150,000
new text end

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

new text begin Subd. 24. new text end

new text begin Emergency Assistance for
Postsecondary Students
new text end

new text begin 269,000
new text end
new text begin 269,000
new text end

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

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

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

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

new text begin Subd. 25. new text end

new text begin Grants to Student Teachers in
Shortage Areas
new text end

new text begin 500,000
new text end
new text begin 500,000
new text end

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

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

new text begin Subd. 26. new text end

new text begin Grants to Underrepresented Student
Teachers
new text end

new text begin 1,000,000
new text end
new text begin 1,000,000
new text end

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

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

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

new text begin Subd. 27. new text end

new text begin Teacher Shortage Loan Repayment
new text end

new text begin 200,000
new text end
new text begin 200,000
new text end

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

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

new text begin Subd. 28. new text end

new text begin Large Animal Veterinarian Loan
Forgiveness Program
new text end

new text begin 375,000
new text end
new text begin 375,000
new text end

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

new text begin Subd. 29. new text end

new text begin Agricultural Educators Loan
Forgiveness
new text end

new text begin 50,000
new text end
new text begin 50,000
new text end

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

new text begin Subd. 30. new text end

new text begin Aviation Degree Loan Forgiveness
Program
new text end

new text begin 25,000
new text end
new text begin 25,000
new text end

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

new text begin Subd. 31. new text end

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

new text begin 200,000
new text end
new text begin 200,000
new text end

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

new text begin Subd. 32. new text end

new text begin Loan Repayment Assistance Program
new text end

new text begin 25,000
new text end
new text begin 25,000
new text end

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

new text begin Subd. 33. new text end

new text begin Minnesota Independence College and
Community
new text end

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

new text begin 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.
new text end

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

new text begin Subd. 34. new text end

new text begin Student Loan Debt Counseling
new text end

new text begin 200,000
new text end
new text begin 200,000
new text end

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

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

new text begin Subd. 35. new text end

new text begin Hunger-Free Campus Grants
new text end

new text begin 205,000
new text end
new text begin 102,000
new text end

new text begin For the Office of Higher Education to provide
initial and sustaining grants to Minnesota
public postsecondary institutions and Tribal
colleges under Minnesota Statutes, section
136F.245, subdivision 4, to meet and maintain
the criteria in that same section to address food
insecurity on campus.
new text end

new text begin Subd. 36. new text end

new text begin Fostering Independence Higher
Education Grants
new text end

new text begin 238,000
new text end
new text begin 3,759,000
new text end

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

new text begin Subd. 37. new text end

new text begin Concurrent Enrollment Grants
new text end

new text begin 340,000
new text end
new text begin 340,000
new text end

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

new text begin Subd. 38. new text end

new text begin Aspiring Teachers of Color
Scholarship Pilot Program
new text end

new text begin 1,500,000
new text end
new text begin 1,500,000
new text end

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

new text begin (b) The commissioner of the Office of Higher
Education may use no more than three percent
of the appropriation to administer the aspiring
teachers of color scholarship program.
new text end

new text begin (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.
new text end

new text begin Subd. 39. new text end

new text begin Direct Admissions
new text end

new text begin 925,000
new text end
new text begin 75,000
new text end

new text begin For the direct admissions pilot program in
article 2, section 42.
new text end

new text begin Subd. 40. new text end

new text begin Agency Administration
new text end

new text begin 4,504,000
new text end
new text begin 4,504,000
new text end

new text begin Subd. 41. new text end

new text begin Balances Forward
new text end

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

new text begin Subd. 42. new text end

new text begin Transfers
new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 791,992,000
new text end
new text begin $
new text end
new text begin 789,491,000
new text end

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

new text begin Subd. 2. new text end

new text begin Central Office and Shared Services
Unit
new text end

new text begin 34,082,000
new text end
new text begin 34,081,000
new text end

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

new text begin The base for this appropriation in fiscal year
2024 and later is $34,401,000.
new text end

new text begin Subd. 3. new text end

new text begin Operations and Maintenance
new text end

new text begin 753,795,000
new text end
new text begin 751,295,000
new text end

new text begin (a) The Board of Trustees must establish
tuition rates as follows:
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (e) $4,500,000 in fiscal year 2022 and
$4,500,000 in fiscal year 2023 are for
workforce development scholarships under
Minnesota Statutes, section 136F.38.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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

new text begin Subd. 4. new text end

new text begin Learning Network of Minnesota
new text end

new text begin 4,115,000
new text end
new text begin 4,115,000
new text end

Sec. 4. new text beginBOARD 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 692,813,000
new text end
new text begin $
new text end
new text begin 692,813,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2022
new text end
new text begin 2023
new text end
new text begin General
new text end
new text begin 690,656,000
new text end
new text begin 690,656,000
new text end
new text begin Health Care Access
new text end
new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

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

new text begin Subd. 2. new text end

new text begin Operations and Maintenance
new text end

new text begin 621,968,000
new text end
new text begin 621,968,000
new text end

new text begin (a) $15,000,000 in fiscal year 2022 and
$15,000,000 in fiscal year 2023 are to: (1)
increase the medical school's research
capacity; (2) improve the medical school's
ranking in National Institutes of Health
funding; (3) ensure the medical school's
national prominence by attracting and
retaining world-class faculty, staff, and
students; (4) invest in physician training
programs in rural and underserved
communities; and (5) translate the medical
school's research discoveries into new
treatments and cures to improve the health of
Minnesotans.
new text end

new text begin (b) $7,800,000 in fiscal year 2022 and
$7,800,000 in fiscal year 2023 are for health
training restoration. This appropriation must
be used to support all of the following: (1)
faculty physicians who teach at eight residency
program sites, including medical resident and
student training programs in the Department
of Family Medicine; (2) the Mobile Dental
Clinic; and (3) expansion of geriatric
education and family programs.
new text end

new text begin (c) $4,000,000 in fiscal year 2022 and
$4,000,000 in fiscal year 2023 are for the
Minnesota Discovery, Research, and
InnoVation Economy funding program for
cancer care research.
new text end

new text begin (d) $500,000 in fiscal year 2022 and $500,000
in fiscal year 2023 are for the University of
Minnesota, Morris branch, to cover the costs
of tuition waivers under Minnesota Statutes,
section 137.16.
new text end

new text begin (e) $150,000 in fiscal year 2022 and $150,000
in fiscal year 2023 are for the Chloe Barnes
Advisory Council on Rare Diseases under
Minnesota Statutes, section 137.68. The base
for this appropriation is $0 in fiscal year 2024
and later.
new text end

new text begin (f) The total operations and maintenance base
for fiscal year 2024 and later is $620,818,000.
new text end

new text begin Subd. 3. new text end

new text begin Primary Care Education Initiatives
new text end

new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

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

new text begin Subd. 4. new text end

new text begin Special Appropriations
new text end

new text begin (a) Agriculture and Extension Service
new text end
new text begin 42,922,000
new text end
new text begin 42,922,000
new text end

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

new text begin (1) the agricultural experiment 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;
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (5) by February 1, 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.
new text end

new text begin (b) Health Sciences
new text end
new text begin 9,204,000
new text end
new text begin 9,204,000
new text end

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

new text begin (c) new text beginCollege of Science and Engineering
new text end
new text end
new text begin 1,140,000
new text end
new text begin 1,140,000
new text end

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

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

new text begin 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.
new text end

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

new text begin 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.
new text end

new text begin (e) University of Minnesota and Mayo
Foundation Partnership
new text end
new text begin 7,991,000
new text end
new text begin 7,991,000
new text end

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

new text begin (1) $7,491,000 in fiscal year 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.
new text end

new text begin (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.
new text end

new text begin Subd. 5. new text end

new text begin Academic Health Center
new text end

new text begin The appropriation for Academic Health Center
funding under Minnesota Statutes, section
297F.10, is estimated to be $22,250,000 each
year.
new text end

Sec. 5. new text beginMAYO CLINIC
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 1,351,000
new text end
new text begin $
new text end
new text begin 1,351,000
new text end

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

new text begin Subd. 2. new text end

new text begin Medical School
new text end

new text begin 665,000
new text end
new text begin 665,000
new text end

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

new text begin Subd. 3. new text end

new text begin Family Practice and Graduate
Residency Program
new text end

new text begin 686,000
new text end
new text begin 686,000
new text end

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

Sec. 6. new text beginCANCELLATIONS; FISCAL YEAR 2021.
new text end

new text begin (a) $340,000 of the fiscal year 2021 general fund appropriation under Laws 2019, chapter
64, article 1, section 2, subdivisions 11, 25, and 26, is canceled.
new text end

new text begin (b) $5,000,000 of the fiscal year 2021 general fund appropriation under Laws 2019,
chapter 64, article 1, section 2, subdivision 2, is canceled.
new text end

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

Sec. 7.

Laws 2014, chapter 312, article 1, section 4, subdivision 2, is amended to read:


Subd. 2.

Health Sciences Special

4,500,000

(a) This appropriation is from the general fund
for the direct and indirect expenses of the
collaborative partnership between the
deleted text begin Univeritydeleted text endnew text begin Universitynew text end of Minnesota and the
Mayo Clinic for regenerative medicine
research, clinical translation, and
commercialization. In addition to
representatives from the University of
Minnesota and the Mayo Clinic, the
collaborative partnership must include
representatives of private industry and others
with expertise in regenerative medicine
research, clinical translation,
commercialization, and medical venture
financing who are not affiliated with either
the University of Minnesota or the Mayo
Clinic.

(b) By January 15 of each odd-numbered year
beginning in 2017, the partnership must
submit an independent financial audit to the
chairs and ranking minority members of the
committees of the house of representatives
and senate having jurisdiction over higher
education and economic development. The
audit must include the names of all recipients
of grants awarded by the partnership and their
affiliation, if any, with the University of
Minnesota or the Mayo Clinic.

(c) The full amount of this appropriation is for
the partnership and may not be used by the
University of Minnesota for administrative or
monitoring expenses.

(d) For fiscal year 2016 and thereafter, the
base for this program is $4,350,000.

new text begin (e) All grants awarded with funding provided
by an appropriation to this program must be
for a regenerative medicine development
project, defined as any research, product
development, or commercial venture relating
to basic, preclinical, or clinical work to
produce a drug, biological or chemical
material, compound, or medical device
designed to augment, repair, replace, or
regenerate organs and tissue that have been
damaged by disease, injury, aging, or other
biological processes.
new text end

ARTICLE 2

HIGHER EDUCATION PROVISIONS

Section 1.

new text begin [136A.057] STUDENT TRANSFER REPORTING.
new text end

new text begin (a) The commissioner must report on the office's website summary data on students
who, within the most recent academic year, withdrew from enrollment without completing
a degree or credential program at a public postsecondary institution in Minnesota. The
summary data must include whether the students who withdrew transferred to another
institution and the institutions transferred to and from.
new text end

new text begin (b) Summary data must be aggregated by postsecondary institution and degree or
credential program. Summary data must be disaggregated by race, ethnicity, Pell eligibility,
and age.
new text end

new text begin (c) The commissioner must post the initial data on the office's website on or before
February 15, 2022, and must update the data at least annually thereafter.
new text end

Sec. 2.

Minnesota Statutes 2020, section 136A.101, subdivision 5a, is amended to read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means the
amount of a family's contribution to a student's cost of attendance, as determined by a federal
need analysis. For dependent students, the assigned family responsibility is deleted text begin82deleted text endnew text begin 79new text end percent
of the parental contribution. For independent students with dependents other than a spouse,
the assigned family responsibility is deleted text begin74deleted text endnew text begin 71new text end percent of the student contribution. For
independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin38deleted text endnew text begin 35new text end percent of the student contribution.

Sec. 3.

Minnesota Statutes 2020, section 136A.121, subdivision 2, is amended to read:


Subd. 2.

Eligibility for grants.

(a) An applicant is eligible to be considered for a grant,
regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections
136A.095 to 136A.131 if the office finds that the applicant:

(1) is a resident of the state of Minnesota;

(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over,
and has met all requirements for admission as a student to an eligible college or technical
college of choice as defined in sections 136A.095 to 136A.131;

(3) has met the financial need criteria established in Minnesota Rules;

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

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

(b) A student deleted text beginwhodeleted text endnew text begin is entitled to an additional semester or the equivalent of grant eligibility
if the student
new text end withdraws from enrollmentnew text begin:
new text end

new text begin (1)new text end for active military service after December 31, 2002, because the student was ordered
to active military service as defined in section 190.05, subdivision 5b or 5cdeleted text begin, or who withdraws
from enrollment
deleted text endnew text begin;
new text end

new text begin (2)new text end for a deleted text beginmajor illnessdeleted text endnew text begin serious health conditionnew text end, while under the care of a medical
professional, that substantially limits the student's ability to complete the term deleted text beginis entitled to
an additional semester or the equivalent of grant eligibility.
deleted text endnew text begin; or
new text end

new text begin (3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.
new text end

Sec. 4.

Minnesota Statutes 2020, section 136A.121, subdivision 6, is amended to read:


Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of: (1) an
allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or a tuition and fee maximum if one is established in law. If no living and miscellaneous
expense allowance is established in law, the allowance is equal to deleted text begin106deleted text endnew text begin 109new text end percent of the
federal poverty guidelines for a one person household in Minnesota for nine months. If no
tuition and fee maximum is established in law, the allowance for tuition and fees is equal
to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
two-year programs, an amount equal to the highest tuition and fees charged at a public
two-year institution, or for four-year programs, an amount equal to the highest tuition and
fees charged at a public university.

(b) For a student registering for less than full time, the office shall prorate the cost of
attendance to the actual number of credits for which the student is enrolled.

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

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

Sec. 5.

Minnesota Statutes 2020, section 136A.121, subdivision 9, is amended to read:


Subd. 9.

Awards.

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

Sec. 6.

Minnesota Statutes 2020, section 136A.123, subdivision 1, is amended to read:


Subdivision 1.

Program administration.

The commissioner of the Office of Higher
Education mustnew text begin, to the extent funds are available,new text end administer a credential completion program
for adult learners consistent with this section.

Sec. 7.

new text begin [136A.1241] FOSTERING INDEPENDENCE HIGHER EDUCATION
GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The office must establish a grant program for individuals
who satisfy the eligibility requirements under subdivision 3. Using available FAFSA or
other state aid data, the office shall identify and inform eligible individuals, and the
institutions for which the individuals have been accepted or are attending, of their eligibility
for the foster grant. This program is established to provide an individual who is currently
or was formerly in foster care with foster grants for up to five years for higher education
costs.
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 terms in this subdivision have
the meanings given.
new text end

new text begin (b) "Adoption" means adoption of an individual who has been in the care and custody
of a responsible social services agency or Tribal social services agency and in foster care.
new text end

new text begin (c) "Eligible institution" means an eligible public institution or an eligible private
institution.
new text end

new text begin (d) "Eligible private institution" or "private institution" means an institution eligible for
state student aid under section 136A.103, paragraph (a), clause (2).
new text end

new text begin (e) "Eligible public institution" or "public institution" means an institution operated by
the Board of Trustees of the Minnesota State Colleges and Universities or the Board of
Regents of the University of Minnesota.
new text end

new text begin (f) "Foster care" has the meaning given in section 260C.007, subdivision 18.
new text end

new text begin (g) "Foster grant" means a grant under this section.
new text end

new text begin (h) "Office" means the Office of Higher Education.
new text end

new text begin (i) "Recognized cost of attendance" means the amount calculated under subdivision 4.
new text end

new text begin (j) "Responsible social services agency" has the meaning given in section 260C.007,
subdivision 27a.
new text end

new text begin (k) "Tribal social services agency" has the meaning given in section 260.755, subdivision
21.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

new text begin (a) An individual who is eligible for the Education and Training
Voucher Program is eligible for a foster grant.
new text end

new text begin (b) If the individual is not eligible for the Education and Training Voucher program, in
order to receive a foster grant, an individual must:
new text end

new text begin (1) meet the definition of a resident student under section 136A.101, subdivision 8;
new text end

new text begin (2) be at least 13 years of age but fewer than 27 years of age;
new text end

new text begin (3) after the individual's 13th birthday, be in or have been in foster care in Minnesota
before, on, or after the effective date of this section, including any of the following:
new text end

new text begin (i) placement in foster care at any time while 13 years of age or older;
new text end

new text begin (ii) adoption from foster care at any time after reaching 13 years of age; or
new text end

new text begin (iii) placement from foster care with a permanent legal custodian at any time after
reaching 13 years of age;
new text end

new text begin (4) have graduated from high school or completed the equivalent as approved by the
Department of Education;
new text end

new text begin (5) have been accepted for admission to, or be currently attending, an eligible institution;
new text end

new text begin (6) have submitted a FAFSA; and
new text end

new text begin (7) be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10.
new text end

new text begin Subd. 4. new text end

new text begin Cost of attendance. new text end

new text begin (a) The recognized cost of attendance for a public institution
has the meaning in Code of Federal Regulations, title 20, chapter 28, subchapter IV, part
F, section 1087ll.
new text end

new text begin (b) The recognized cost of attendance for a private institution equals the lesser of:
new text end

new text begin (1) the cost of attendance for the institution as calculated under Code of Federal
Regulations, title 20, chapter 28, subchapter IV, part F, section 1087ll; or
new text end

new text begin (2) for two-year programs, an amount equal to the highest recognized cost of attendance
charged at a public two-year institution, or for four-year programs, an amount equal to the
highest recognized cost of attendance at a public university.
new text end

new text begin Subd. 5. new text end

new text begin Foster grant amount; payment; opt-out. new text end

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

new text begin (1) the student aid index as calculated by the federal need analysis;
new text end

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

new text begin (3) the amount of the state grant;
new text end

new text begin (4) the Federal Supplemental Educational Opportunity Grant;
new text end

new text begin (5) the sum of all Tribal scholarships;
new text end

new text begin (6) the amount of any other state and federal gift aid;
new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin Subd. 6. new text end

new text begin Dissemination of information. new text end

new text begin (a) The office shall, by September 1, 2022,
and September 1 each year thereafter, prepare and provide the information to be disseminated
by responsible social services agencies, Tribal social services agencies, the office, the
Department of Human Services, and eligible state and private institutions that:
new text end

new text begin (1) describes the availability of the program established under this section;
new text end

new text begin (2) explains how to participate in the program; and
new text end

new text begin (3) includes information on all available federal and state grants identified under
subdivision 5.
new text end

new text begin (b) The office shall maintain and annually update the list of eligible private institutions
that opt out under subdivision 5, paragraph (c), and post the list of the institutions on the
office's website.
new text end

new text begin Subd. 7. new text end

new text begin Assistance from the Office of Higher Education. new text end

new text begin The office shall assist foster
grant applicants eligible under subdivision 3 by providing assistance in:
new text end

new text begin (1) completing the foster grant application; and
new text end

new text begin (2) accessing and applying for available federal and state financial aid resources under
subdivision 5.
new text end

new text begin Subd. 8. new text end

new text begin Report. new text end

new text begin (a) The office shall prepare an anonymized report to be submitted
annually to the chairperson and minority chairperson of the legislative committees with
jurisdiction over higher education that contains:
new text end

new text begin (1) the number of students receiving foster grants and the institutions attended; and
new text end

new text begin (2) annual retention and graduation data on students receiving foster grants.
new text end

new text begin (b) The report required under this subdivision may be combined with other legislatively
required reporting. If submitted as a separate report, the report must be submitted by January
15.
new text end

new text begin EFFECTIVE DATE; APPLICATION. new text end

new text begin This section is effective the day following
final enactment and applies to foster grants awarded beginning the 2022-2023 academic
year. The first report under subdivision 8 must be submitted by January 15, 2024, unless
included in other legislatively required reporting.
new text end

Sec. 8.

Minnesota Statutes 2020, section 136A.125, subdivision 2, is amended to read:


Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if the
applicant:

(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the
state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled
as defined in section 125A.02, and who is receiving or will receive care on a regular basis
from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a recipient
of assistance from the Minnesota family investment program;

(4) deleted text begineitherdeleted text end has not deleted text beginearned a baccalaureate degree and has been enrolled full time less thandeleted text endnew text begin
received child care grant funds for a period of
new text end ten semesters or the equivalentdeleted text begin, or has earned
a baccalaureate degree and has been enrolled full time less than ten semesters or the
equivalent in a graduate or professional degree program
deleted text end;

(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate,
graduate, or professional degree, diploma, or certificate;

(6) is enrolled in at least deleted text beginsix creditsdeleted text endnew text begin one creditnew text end in an undergraduate program or one credit
in a graduate or professional program in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student deleted text beginwhodeleted text endnew text begin is entitled to an additional semester or equivalent of grant eligibility
and will be considered to be in continuing enrollment status upon return if the student
new text end
withdraws from enrollmentnew text begin:
new text end

new text begin (1)new text end for active military service after December 31, 2002, because the student was ordered
to active military service as defined in section 190.05, subdivision 5b or 5cdeleted text begin, ordeleted text endnew text begin;
new text end

new text begin (2)new text end for a deleted text beginmajor illnessdeleted text endnew text begin serious health conditionnew text end, while under the care of a medical
professional, that substantially limits the student's ability to complete the term deleted text beginis entitled to
an additional semester or the equivalent of grant eligibility and will be considered to be in
continuing enrollment status upon return.
deleted text endnew text begin; or
new text end

new text begin (3) while providing care that substantially limits the student's ability to complete the
term to the student's spouse, child, or parent who has a serious health condition.
new text end

Sec. 9.

Minnesota Statutes 2020, section 136A.125, subdivision 4, is amended to read:


Subd. 4.

Amount and length of grants.

deleted text begin (a) The amount of a child care grant must be
based on:
deleted text end

deleted text begin (1) the income of the applicant and the applicant's spouse;
deleted text end

deleted text begin (2) the number in the applicant's family, as defined by the office; and
deleted text end

deleted text begin (3) the number of eligible children in the applicant's family.
deleted text end

deleted text begin (b)deleted text endnew text begin (a)new text end The maximum award to the applicant shall be deleted text begin$3,000deleted text endnew text begin $6,500new text end for each eligible
child per academic year, except that the campus financial aid officer may apply to the office
for approval to increase grants by up to ten percent to compensate for higher market charges
for infant care in a community. deleted text beginThe office shall develop policies to determine community
market costs and review institutional requests for compensatory grant increases to ensure
need and equal treatment. The office shall prepare a chart to show the amount of a grant
that will be awarded per child based on the factors in this subdivision. The chart shall include
a range of income and family size.
deleted text end

deleted text begin (c)deleted text endnew text begin (b)new text end Applicants with deleted text beginfamily incomesdeleted text endnew text begin expected family contributionsnew text end at or below deleted text begina
percentage of the federal poverty level
deleted text endnew text begin the qualifying expected family contribution for the
federal Pell Grant
new text end, as determined by the commissioner, deleted text beginwilldeleted text end qualify for the maximum award.
deleted text begin The commissioner shall attempt to set the percentage at a level estimated to fully expend
the available appropriation for child care grants.
deleted text end Applicants with deleted text beginfamily incomesdeleted text endnew text begin expected
family contributions
new text end exceeding that threshold deleted text beginwilldeleted text endnew text begin but less than 200 percent of the qualifying
expected family contribution
new text end receive deleted text beginthe maximum award minus ten percent of their income
exceeding that threshold
deleted text endnew text begin an amount proportional to their expected family contribution as
determined by the commissioner
new text end. deleted text beginIf the result is less than zero, the grant is zero.
deleted text end

deleted text begin (d)deleted text endnew text begin (c)new text end The academic year award amount must be disbursed by academic term using the
following formula:

(1) the academic year amount described in paragraph deleted text begin(b)deleted text endnew text begin (a)new text end;

(2) divided by the number of terms in the academic year;new text begin and
new text end

deleted text begin (3) divided by 15 for undergraduate students and six for graduate and professional
students; and
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end multiplied by the deleted text beginnumber of credits for which the student is enrolled that academic
term, up to 15 credits for undergraduate students and six for graduate and professional
students.
deleted text endnew text begin applicable enrollment factor:
new text end

new text begin (i) 1.00 for undergraduate students enrolled in 12 or more semester credits or the
equivalent or for graduate students enrolled in six or more semester credits or the equivalent;
new text end

new text begin (ii) 0.75 for undergraduate students enrolled in nine, ten, or 11 semester credits or the
equivalent or for graduate students enrolled in five semester credits or the equivalent;
new text end

new text begin (iii) 0.50 for undergraduate students enrolled in six, seven, or eight semester credits or
the equivalent or for graduate students enrolled in three or four semester credits or the
equivalent; and
new text end

new text begin (iv) 0.25 for undergraduate students enrolled in at least one but less than six semester
credits or the equivalent or for graduate students enrolled in one or two semester credits or
the equivalent.
new text end

deleted text begin (e)deleted text endnew text begin (d)new text end Payments shall be made each academic term to the student or to the child care
provider, as determined by the institution. Institutions may make payments more than once
within the academic term.

Sec. 10.

Minnesota Statutes 2020, section 136A.126, subdivision 1, is amended to read:


Subdivision 1.

Student eligibility.

The commissioner shall establish procedures for the
distribution of scholarships to a Minnesota resident student as defined under section
136A.101, subdivision 8, who:

(1) is of one-fourth or more Indian ancestrynew text begin or is an enrolled member or citizen of a
federally recognized American Indian or Canadian First Nations tribe
new text end;

(2) has applied for other existing state and federal scholarship and grant programs;

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

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

(5) if enrolled in an undergraduate program, is eligible or would be eligible to receive
a federal Pell Grant or a state grant based on the federal needs analysis and is enrolled for
nine semester credits per term or more, or the equivalent; and

(6) if enrolled in a graduate program, demonstrates a remaining financial need in the
award amount calculation and is enrolled, per term, on a half-time basis or more as defined
by the postsecondary institution.

Sec. 11.

Minnesota Statutes 2020, section 136A.126, subdivision 4, is amended to read:


Subd. 4.

Award amount.

(a) Each student shall be awarded a scholarship based on the
federal need analysis. Applicants are encouraged to apply for all other sources of financial
aid. The amount of the award must not exceed the applicant's cost of attendance, as defined
in subdivision 3, after deducting:

(1) the expected family contribution as calculated by the federal need analysis;

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

(3) the amount of the state grant;

(4) the federal Supplemental Educational Opportunity Grant;

(5) the sum of all institutional grants, scholarships, tuition waivers, and tuition remission
amounts;

(6) the sum of all Tribal scholarships;

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

(8) the amount of any private grants or scholarships.

(b) The award shall be paid directly to the postsecondary institution where the student
receives federal financial aid.

(c) Awards are limited as follows:

(1) the maximum award for an undergraduate is $4,000 per deleted text beginawarddeleted text endnew text begin academicnew text end year;

(2) the maximum award for a graduate student is $6,000 per deleted text beginawarddeleted text endnew text begin academicnew text end year; and

(3) the minimum award for all students is $100 per deleted text beginawarddeleted text endnew text begin academicnew text end year.

(d) Scholarships may not be given to any Indian student for more than three years of
study for a two-year degree, certificate, or diploma program or five years of study for a
four-year degree program at the undergraduate level and for more than five years at the
graduate level. Students may acquire only one degree per level and one terminal graduate
degree. Scholarships may not be given to any student for more than ten years including five
years of undergraduate study and five years of graduate study.

new text begin (e) Scholarships may be given to an eligible student for four quarters, three semesters,
or the equivalent during the course of a single fiscal year. In calculating the award amount,
the office must use the same calculation it would for any other term.
new text end

Sec. 12.

new text begin [136A.1274] UNDERREPRESENTED STUDENT TEACHER GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of the Office of Higher Education
must establish a grant program for student teaching stipends for low-income students who
belong to an underrepresented racial or ethnic group.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a grant under this section, a student teacher must:
new text end

new text begin (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 any Tier 3 teaching license;
new text end

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

new text begin (3) be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10; and
new text end

new text begin (4) belong to a racial or ethnic group underrepresented in the Minnesota teacher
workforce.
new text end

new text begin Subd. 3. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must establish an application process
and other guidelines for implementing this program. The commissioner must notify grant
recipients of their award amounts by the following dates:
new text end

new text begin (1) for fall student teaching placements, recipients must be notified by August 15;
new text end

new text begin (2) for spring student teaching placements, recipients must be notified by December 1;
and
new text end

new text begin (3) for summer student teaching placements, recipients must be notified by May 1.
new text end

new text begin These notification deadlines do not apply in cases where grants are awarded to student
teachers who applied after application deadlines and funds remained after the initial round
of grants were awarded.
new text end

new text begin (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.
new text end

new text begin (c) The commissioner must give equal consideration to all eligible applicants regardless
of the order the application was received before the application deadline.
new text end

new text begin (d) If there are insufficient funds to provide an award to all eligible applicants, the
commissioner shall prioritize the awards to eligible applicants based on:
new text end

new text begin (1) the financial need of an applicant; and
new text end

new text begin (2) the statewide distribution of funds.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin (a) By February 15 of each year, the commissioner must submit a
report on the details of the program under this section to the legislative committees with
jurisdiction over E-12 and higher education finance and policy. The report must include the
following information:
new text end

new text begin (1) the number of eligible applicants and the number of teacher candidates receiving an
award, each broken down by postsecondary institution;
new text end

new text begin (2) the total number of awards, the total dollar amount of all awards, and the average
award amount; and
new text end

new text begin (3) and other summary data identified by the commissioner as outcome indicators.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, except that the commissioner
may delay notification to student teachers receiving grants for the fall 2021 term until
September 1, 2021.
new text end

Sec. 13.

Minnesota Statutes 2020, section 136A.1275, is amended to read:


136A.1275 new text beginSTUDENT new text endTEACHER deleted text beginCANDIDATEdeleted text end GRANTSnew text begin IN SHORTAGE
AREAS
new text end.

Subdivision 1.

Establishment.

(a) The commissioner of the Office of Higher Education
must establish a grant program for student teaching stipends for low-income students deleted text beginenrolled
in a Professional Educator Licensing and Standards Board-approved teacher preparation
program
deleted text end who intend to teach in a new text beginlicense new text endshortage area new text beginor rural school district new text endafter graduating
and receiving their teaching license deleted text beginor belong to an underrepresented racial or ethnic groupdeleted text end.

(b) deleted text begin"Shortage area" means a license field or economic development region within
Minnesota defined as a shortage area by the Professional Educator Licensing and Standards
Board in coordination with the commissioner using data collected for the teacher supply
and demand report under section 122A.091, subdivision 5.
deleted text endnew text begin "License shortage area" means
a licensure area that is identified as a shortage area by the Professional Educator Licensing
and Standards Board in coordination with the commissioner using data collected for the
teacher supply and demand report under section 122A.091, subdivision 5, provided that
only licensure areas within the following fields may be identified as a license shortage area
for purposes of this section:
new text end

new text begin (1) English as a second language;
new text end

new text begin (2) early childhood;
new text end

new text begin (3) special education;
new text end

new text begin (4) career and technical education;
new text end

new text begin (5) science, technology, engineering, arts, and math; and
new text end

new text begin (6) world languages.
new text end

new text begin (c) "Rural school district" means a school district with fewer than 30 resident pupil units
under section 126C.05, subdivision 6, per square mile.
new text end

Subd. 2.

Eligibility.

To be eligible for a grant under this section, a new text beginstudent new text endteacher
deleted text begin candidatedeleted text end 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 deleted text beginin order to
be recommended for any Tier 3 teaching license
deleted text end;

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

(3) be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10; and

(4) deleted text beginintend to teach in a shortage area or belong to a racial or ethnic group underrepresented
in the Minnesota teacher workforce
deleted text endnew text begin intend to teach in a rural school district or intend to
teach in a license shortage area
new text end. Intent deleted text begincandeleted text endnew text begin to teach in a license shortage area mustnew text end be
deleted text begin documenteddeleted text endnew text begin verifiednew text end based on the teacher license field the student is pursuing deleted text beginor a statement
of
deleted text endnew text begin. To verifynew text end intent to teach in deleted text beginan economic development region defined as a shortage area
in the year the student receives a grant
deleted text endnew text begin a rural school district, the student must submit to the
commissioner a completed affidavit, prescribed by the commissioner, affirming the student's
intent to teach in a rural district following graduation. Upon obtaining employment after
graduating, the teacher shall report to the office the name of the school district in which the
teacher is teaching
new text end.

Subd. 3.

Administrationdeleted text begin; repaymentdeleted text end.

(a) The commissioner must establish an
application process and other guidelines for implementing this program.new text begin The commissioner
must notify grant recipients of their award amounts by the following dates:
new text end

new text begin (1) for fall student teaching placements, recipients must be notified by August 15;
new text end

new text begin (2) for spring student teaching placements, recipients must be notified by December 1;
and
new text end

new text begin (3) for summer student teaching placements, recipients must be notified by May 1.
new text end

new text begin These notification deadlines do not apply in cases where grants are awarded to student
teachers who applied after application deadlines and funds remained after the initial round
of grants were awarded.
new 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.

deleted text begin (c) The percentage of the total award funds available at the beginning of the fiscal year
reserved for teacher candidates who identify as belonging to a racial or ethnic group
underrepresented in the Minnesota teacher workforce must be equal to or greater than the
total percentage of students of racial or ethnic groups underrepresented in the Minnesota
teacher workforce 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.
deleted text end

new text begin (c) The commissioner must give equal consideration to all eligible applicants regardless
of the order the application was received before the application deadline.
new text end

new text begin (d) If there are insufficient funds to provide an award to all eligible applicants, the
commissioner shall prioritize the awards to eligible participants based on:
new text end

new text begin (1) the financial need of an applicant; and
new text end

new text begin (2) whether the applicant intends to teach in both a rural school district and a license
shortage area.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin (a) By February 1 of each year, the commissioner must submit a
report to the chairs and ranking minority members of the legislative committees with
jurisdiction over E-12 and higher education finance and policy. The report must include the
following information:
new text end

new text begin (1) the total number of awards, the total dollar amount of all awards, and the average
award amount;
new text end

new text begin (2) the number of eligible applicants and the number of student teachers receiving an
award, each broken down by postsecondary institution;
new text end

new text begin (3) the licensure areas and school districts in which the student teachers taught; and
new text end

new text begin (4) other summary data identified by the commissioner as outcome indicators, including
how many student teachers awarded a rural teacher grant were employed in a rural district
after graduation.
new text end

new text begin (b) By July 1 of each odd numbered year, the commissioner must update and post on
the office's website a list of licensure shortage areas eligible for a grant under this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, except that the commissioner
may delay notification to student teachers receiving grants for the fall 2021 term until
September 1, 2021.
new text end

Sec. 14.

Minnesota Statutes 2020, section 136A.1704, is amended to read:


136A.1704 STUDENT LOAN REFINANCING.

The office may refinance student and parent loans as provided by this section and on
other terms and conditions the office prescribes. The office may establish credit requirements
for borrowers and determine what types of student and parent loans will be eligible for
refinancing. The refinanced loan need not have been made through a loan program
administered by the office. Loans shall be made with available funds in the loan capital
fund under section 136A.1785. The maximum amount of outstanding loans refinanced under
this section may not exceed deleted text begin$100,000,000deleted text endnew text begin $300,000,000new text end. The maximum loan under this
section may not exceed deleted text begin$70,000deleted text endnew text begin $200,000new text end.

Sec. 15.

Minnesota Statutes 2020, section 136A.1791, is amended to read:


136A.1791 TEACHER SHORTAGE LOAN deleted text beginFORGIVENESSdeleted text endnew text begin REPAYMENTnew text end
PROGRAM.

Subdivision 1.

Definitions.

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

(b) "Qualified educational loan" means a government, commercial, or foundation loan
for actual costs paid for tuition and reasonable educational and living expenses related to a
teacher's preparation or further educationnew text begin, only if the further education will result in the
teacher decreasing the gap in a new shortage area
new text end.

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

(d) "Teacher" means an individual holding a teaching license issued by the Professional
Educator Licensing and Standards Board who is employed by a school district to provide
classroom instruction.

deleted text begin (e) "Teacher shortage area" means:
deleted text end

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

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

deleted text begin (f)deleted text endnew text begin (e)new text end "Commissioner" means the commissioner of the Office of Higher Education
unless indicated otherwise.

new text begin (f) "License shortage area" has the meaning given in section 136A.1275, subdivision 1,
paragraph (b).
new text end

new text begin (g) "Racial or ethnic group underrepresented in the teacher workforce" means a racial
or ethnic group for which the aggregate percentage of Minnesota teachers of that racial or
ethnic group is lower than the aggregate percentage of Minnesota kindergarten through
grade 12 students of that racial or ethnic group.
new text end

new text begin (h) "Rural school district" means a school district with fewer than 30 resident pupil units
under section 126C.05, subdivision 6, per square mile.
new text end

Subd. 2.

Program established; administration.

The commissioner shall establish and
administer a teacher shortage loan deleted text beginforgivenessdeleted text end new text beginrepayment new text endprogram. deleted text beginA teacher is eligible for
the program if the teacher is teaching in an identified teacher shortage area under subdivision
3 and complies with the requirements of this section.
deleted text end

deleted text begin Subd. 3. deleted text end

deleted text begin Report on teacher shortage areas. deleted text end

deleted text begin Using data collected for the teacher supply
and demand report to the legislature under section 122A.091, subdivision 5, the Professional
Educator Licensing and Standards Board shall identify the licensure fields and economic
development regions in Minnesota experiencing a teacher shortage.
deleted text end

new text begin Subd. 3a. new text end

new text begin Eligibility. new text end

new text begin To be eligible for a disbursement under this section, a teacher must
belong to a racial or ethnic group underrepresented in the Minnesota teacher workforce,
teach in a rural school district, or teach in a license shortage area.
new text end

Subd. 4.

Application for loan deleted text beginforgivenessdeleted text endnew text begin repaymentnew text end.

Each applicant for loan
deleted text begin forgivenessdeleted text endnew text begin repaymentnew text end, according to rules adopted by the commissioner, shall:

(1) apply for teacher shortage loan deleted text beginforgivenessdeleted text end new text beginrepayment new text endand promptly submit any
additional information required by the commissioner; and

(2) submit to the commissioner a completed affidavit, prescribed by the commissioner,
affirming the teacher is teaching in: (i) a deleted text beginlicensure field identified by the commissioner as
experiencing a teacher
deleted text endnew text begin licensenew text end shortagenew text begin areanew text end; or (ii) deleted text beginan economic development region
identified by the commissioner as experiencing a teacher shortage
deleted text endnew text begin a rural school districtnew text end.

Subd. 5.

Amount of loan deleted text beginforgivenessdeleted text endnew text begin repaymentnew text end.

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

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

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

Subd. 6.

Disbursement.

(a) The commissioner must make annual disbursements directly
to the participant of the amount for which a participant is eligible, for each year that a
participant is eligible.

(b) Within 60 days of the disbursement date, the participant must provide the
commissioner with verification that the full amount of loan repayment disbursement has
been applied toward the designated loans. A participant that previously received funds under
this section but has not provided the commissioner with such verification is not eligible to
receive additional funds.

Subd. 7.

Penalties.

(a) A teacher who submits a false or misleading application or other
false or misleading information to the commissioner may:

(1) have his or her teaching license suspended or revoked under section 122A.20;

(2) be disciplined by the teacher's employing school district; or

(3) be required by the commissioner to repay the total amount of the loan deleted text beginforgivenessdeleted text endnew text begin
repayment
new text end he or she received under this program, plus interest at a rate established under
section 270C.40.

(b) The commissioner must deposit any repayments received under paragraph (a) in the
fund established in subdivision 8.

Subd. 8.

Account established.

A teacher shortage loan deleted text beginforgivenessdeleted text end repayment account
is created in the special revenue fund for depositing money appropriated to or received by
the commissioner for the program. Money deposited in the account is appropriated to the
commissioner, does not cancel, and is continuously available for loan deleted text beginforgivenessdeleted text end new text beginrepayment
new text end under this section.

Subd. 9.

Annual reporting.

By February 1 of each year, the commissioner must report
to the chairs of the kindergarten through grade 12 and higher education committees of the
legislature on the number of individuals who received loan deleted text beginforgivenessdeleted text end new text beginrepayment new text endunder
this section, the race or ethnicity of the teachers participating in the program, the licensure
areas and deleted text begineconomic development regionsdeleted text endnew text begin school districtsnew text end in which the teachers taught, the
average amount paid to a teacher participating in the program, and other summary data
identified by the commissioner as outcome indicators.

Subd. 10.

Rulemaking.

The commissioner shall adopt rules under chapter 14 to
administer this section.

Sec. 16.

Minnesota Statutes 2020, section 136A.246, subdivision 1, is amended to read:


Subdivision 1.

Program created.

The commissioner shall make grants for the training
of employees to achieve the competency standard for an occupation identified by the
commissioner of labor and industry under section 175.45 and Laws 2014, chapter 312,
article 3, section 21. deleted text begin"Competency standard" has the meaning given in section 175.45,
subdivision 2.
deleted text end An individual must, no later than the commencement of the training, be an
employee of the employer seeking a grant to train that individual.

Sec. 17.

Minnesota Statutes 2020, section 136A.246, is amended by adding a subdivision
to read:


new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Competency standard" has the meaning given in section 175.45, subdivision 2.
new text end

new text begin (c) "Eligible training" means training provided by an eligible training provider that:
new text end

new text begin (1) includes training to meet one or more identified competency standards;
new text end

new text begin (2) is instructor-led for a majority of the training; and
new text end

new text begin (3) results in the employee receiving an industry-recognized degree, certificate, or
credential.
new text end

new text begin (d) "Eligible training provider" means an institution:
new text end

new text begin (1) operated by the Board of Trustees of the Minnesota State Colleges and Universities
or the Board of Regents of the University of Minnesota;
new text end

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

new text begin (3) exempt from the provisions of section 136A.822 to 136A.834 or 136A.61 to 136A.71
as approved by the office.
new text end

new text begin (e) "Industry-recognized degrees, certificates, or credentials" means:
new text end

new text begin (1) certificates, diplomas, or degrees issued by a postsecondary institution;
new text end

new text begin (2) registered apprenticeship certifications or certificates;
new text end

new text begin (3) occupational licenses or registrations;
new text end

new text begin (4) certifications issued by, or recognized by, industry or professional associations; and
new text end

new text begin (5) other certifications as approved by the commissioner.
new text end

Sec. 18.

Minnesota Statutes 2020, section 136A.246, subdivision 2, is amended to read:


Subd. 2.

Eligible grantees.

An employer or an organization representing the employer
is eligible to apply for a grant to train employees if the employer has an employee who is
in or is to be trained to be in an occupation for which a competency standard has been
identified and the employee has not attained the competency standard prior to the
commencement of the planned training. deleted text beginTraining need not address all aspects of a competency
standard but may address only the competencies of a standard that an employee is lacking.
An employee must receive an industry-recognized degree, certificate, or credential upon
successful completion of the training.
deleted text endnew text begin A grantee must have an agreement with an eligible
training provider to provide eligible training prior to payment of grant.
new text end

Sec. 19.

Minnesota Statutes 2020, section 136A.246, subdivision 3, is amended to read:


Subd. 3.

new text beginEligible new text endtraining deleted text begininstitution or programdeleted text endnew text begin providernew text end.

deleted text beginThe employer must have
an agreement with a training institution or program to provide the employee competency
standard training prior to the grant award. The training may be provided by any institution
or program having trainers qualified to instruct on the competency standard.
deleted text end

The Office of Higher Education and the Department of Labor and Industry must cooperate
in maintaining an inventory of degree, certificate, and credential programs that provide
training to meet competency standards. The inventory must be posted on each agency's
website with contact information for each program deleted text beginby September 1, 2016deleted text end. The postings
must be updated periodically.

Sec. 20.

Minnesota Statutes 2020, section 136A.246, subdivision 4, is amended to read:


Subd. 4.

Application.

Applications must be made to the commissioner on a form provided
by the commissioner. The commissioner must, to the extent possible, make the application
form as short and simple to complete as is reasonably possible. The commissioner shall
establish a schedule for applications and grants. The application must include, without
limitation:

(1) the projected number of employee trainees;

deleted text begin (2) the number of projected employee trainees who graduated from high school or passed
the commissioner of education-selected high school equivalency test in the current or
immediately preceding calendar year;
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end the competency standard for which training will be provided;

deleted text begin (4)deleted text endnew text begin (3)new text end the credential the employee will receive upon completion of training;

deleted text begin (5)deleted text endnew text begin (4)new text end the name and address of the new text begineligible new text endtraining deleted text begininstitution or program and a signed
statement by the institution or program that it is able and agrees to provide the training
deleted text endnew text begin
provider
new text end;

deleted text begin (6)deleted text endnew text begin (5)new text end the period of the training; and

deleted text begin (7)deleted text endnew text begin (6)new text end the cost of the training charged by the new text begineligible new text endtraining deleted text begininstitution or program and
certified by the institution or program
deleted text endnew text begin providernew text end. The cost of training includes tuition, fees,
and required books and materials.

An application may be made for training of employees of multiple employers either by
the employers or by an organization on their behalf.

Sec. 21.

Minnesota Statutes 2020, section 136A.246, subdivision 5, is amended to read:


Subd. 5.

Grant criteria.

deleted text begin (a) Except as provided in this subdivision, the commissioner
shall award grants to employers solely for training employees who graduated from high
school or passed commissioner of education-selected high school equivalency tests in the
current or immediately preceding calendar year.
deleted text end

deleted text begin (b) If there are not sufficient eligible applications satisfying paragraph (a), the
commissioner may award grants to applicants to train employees who do not meet the
requirements of paragraph (a).
deleted text end

deleted text begin (c)deleted text endnew text begin (a)new text end The commissioner shalldeleted text begin, to the extent possible after complying with paragraph
(a),
deleted text end make at least an approximately equal dollar amount of grants for training for employees
whose work site is projected to be outside the metropolitan area as defined in section 473.121,
subdivision 2
, as for employees whose work site is projected to be within the metropolitan
area.

deleted text begin (d)deleted text endnew text begin (b)new text end In determining the award of grants, the commissioner must consider, among other
factors:

(1) the aggregate state and regional need for employees with the competency to be
trained;

(2) the competency standards developed by the commissioner of labor and industry as
part of the Minnesota PIPELINE Project;

(3) the per employee cost of training;

(4) the additional employment opportunities for employees because of the training;

(5) the on-the-job training the employee receives;

new text begin (6) the employer's demonstrated ability to recruit, train, and retain employees who are
recent high school graduates or who recently passed high school equivalency tests;
new text end

deleted text begin (6)deleted text endnew text begin (7)new text end projected increases in compensation for employees receiving the training; and

deleted text begin (7)deleted text endnew text begin (8)new text end the amount of employer training cost match, if required, on both a per employee
and aggregate basis.

Sec. 22.

Minnesota Statutes 2020, section 136A.246, subdivision 6, is amended to read:


Subd. 6.

Employer match.

A large employer must pay for at least 25 percent of thenew text begin
eligible
new text end training deleted text begininstitution's or program'sdeleted text endnew text begin provider'snew text end charge for thenew text begin eligiblenew text end training to the
deleted text begin training institution or programdeleted text endnew text begin providernew text end. For the purpose of this subdivision, a "large
employer" means a business with more than $25,000,000 in annual new text begingross new text endrevenue in the
previous calendar year.

Sec. 23.

Minnesota Statutes 2020, section 136A.246, subdivision 7, is amended to read:


Subd. 7.

Payment of grant.

(a) The commissioner shall pay the grant to the employer
after the employer presents satisfactory evidence to the commissioner that the employer
has paid the new text begineligible new text endtraining deleted text begininstitution or programdeleted text endnew text begin providernew text end.

(b) If an employer demonstrates that it is not able to pay for the training in advance, the
commissioner shall make grant payments directly to the new text begineligible new text endtraining deleted text begininstitution or
program
deleted text endnew text begin providernew text end.

Sec. 24.

Minnesota Statutes 2020, section 136A.246, subdivision 8, is amended to read:


Subd. 8.

Grant amounts.

(a) The maximum grant for an application is $150,000. A
grant may not exceed $6,000 per year for a maximum of four years per employee.

(b) An employee who is attending an eligible new text begintraining provider that is an new text endinstitution new text beginunder
section 136A.103
new text end must apply for Pell and state grants as a condition of payment for training
that employee under this section.

Sec. 25.

Minnesota Statutes 2020, section 136A.63, subdivision 2, is amended to read:


Subd. 2.

Sale of an institution.

Within 30 days of a change of its ownership a school
must submit a registration renewal application, all usual and ordinary information and
materials for an initial registration, and applicable registration fees for a new institution.
For purposes of this subdivision, "change of ownership" means a merger or consolidation
with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of
the assets of a school; the transfer of a controlling interest of at least 51 percent of the
school's stock; new text beginthe school enters receivership; new text endor a change in the nonprofit or for-profit status
of a school.

Sec. 26.

Minnesota Statutes 2020, section 136A.645, is amended to read:


136A.645 SCHOOL CLOSURE.

(a) When a school intends to cease postsecondary education operations, announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its registration status or ability to meet criteria for approval under section 136A.65, the
school must provide the office:

(1) a notice of closure, including the name of the school, the name of the school owner,
an active mailing address and telephone number that the school owner may be reached at
after the school physically closes, the name of the school director, and the planned date for
termination of postsecondary operations;

(2) a report of all students currently enrolled and all students enrolled within the prior
120 days, including the following information for each student: name, address, school e-mail
address, alternate e-mail address, program of study, number of credits completed, number
of credits remaining, and enrollment status at closure;

(3) a report of refunds due to any student and the amount due;

(4) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students has
ceased;

(5) a copy of any communication between the school's accreditors about the school
closure;

(6) confirmation that the requirements for student records under section 136A.68 have
been satisfied, including:

(i) the planned date for the transfer of the student records;

(ii) confirmation of the name and address of the organization to receive and hold the
student records; and

(iii) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request;

(7) academic information, including the school's most recent catalog, all course syllabi,
and faculty credential information; and

(8) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must (i) provide comparable education and training and (ii) agree that students transferring
from the closing school pay only what the cost of tuition and fees remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school.

(b) Without limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:

(1) has an unscheduled nonemergency closure or cancellation of classes for more than
24 hours without prior notice to the office;

(2) announces it is closed or closing; deleted text beginor
deleted text end

(3) files for bankruptcydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) fails to complete a renewal application when required under section 136A.63,
subdivision 2.
new text end

(c) When a school is deemed to have ceased operations, the office shall provide the
school a reasonable time to correct student records and grant credentials. After that time,
the office must revoke the school's registration. This revocation is not appealable under
section 136A.65, subdivision 8.

Sec. 27.

Minnesota Statutes 2020, section 136A.653, subdivision 5, is amended to read:


Subd. 5.

deleted text beginRegionallydeleted text endnew text begin Higher Learning Commissionnew text end accredited institutions in
Minnesota.

(a) A deleted text beginregionally accrediteddeleted text end postsecondary institution new text beginaccredited by the Higher
Learning Commission or its successor
new text endwith its primary physical location in Minnesota is
exempt from the provisions of sections 136A.61 to 136A.71, including related fees, when
it creates new or modifies existing:

(1) majors, minors, concentrations, specializations, and areas of emphasis within approved
degrees;

(2) nondegree programs within approved degrees;

(3) underlying curriculum or courses;

(4) modes of delivery; and

(5) locations.

(b) The institution must annually notify the commissioner of the exempt actions listed
in paragraph (a) and, upon the commissioner's request, must provide additional information
about the action.

(c) The institution must notify the commissioner within 60 days of a program closing.

(d) Nothing in this subdivision exempts an institution from the annual registration and
degree approval requirements of sections 136A.61 to 136A.71.

Sec. 28.

Minnesota Statutes 2020, section 136A.675, is amended to read:


136A.675 RISK ANALYSIS.

new text begin Subdivision 1. new text end

new text begin Standard development and usage. new text end

new text begin(a) To screen and detect whether an
institution may not be financially or administratively responsible,
new text endthe office shall develop
deleted text begin a set ofdeleted text end financial and deleted text beginprogrammatic evaluation metrics to aid in the detection of the failure
or potential failure of a school to meet the standards established under sections 136A.61 to
136A.71
deleted text endnew text begin nonfinancial indicatorsnew text end. deleted text beginThese metrics shall include indicators of financial stability,
changes in the senior management or the financial aid and senior administrative staff of an
institution, changes in enrollment, changes in program offerings, and changes in faculty
staffing patterns.
deleted text end The development of financial deleted text beginstandardsdeleted text endnew text begin and nonfinancial indicatorsnew text end shall
use industry standards as deleted text beginbenchmarksdeleted text endnew text begin guidancenew text end. deleted text beginThe development of the nonfinancial
standards shall include a measure of trends and dramatic changes in trends or practice.
deleted text end

new text begin (b) Annually, new text endthe deleted text beginagencydeleted text endnew text begin officenew text end must deleted text beginspecify the metrics and standards for each area anddeleted text end
provide a copy new text beginof the financial and nonfinancial indicators new text endto each registered institution and
post deleted text beginthemdeleted text endnew text begin a list of reviewed indicatorsnew text end on the deleted text beginagencydeleted text endnew text begin officenew text end website.

new text begin (c)new text end The deleted text beginagencydeleted text endnew text begin officenew text end shall use regularly reported data submitted to the federal
government or other regulatory or accreditation agencies wherever possible. deleted text beginThe agency
may require more frequent data reporting by an institution to ascertain whether the standards
are being met.
deleted text end

new text begin (d) The office must use the indicators in this subdivision to identify institutions at
potential risk of being unable to meet the standards established under sections 136A.646;
136A.64, subdivision 3; 136A.65, subdivisions 1a and 4, paragraph (a), clauses (1), (2), (3),
and (7); and 136A.685 and thus unlikely to meet its financial obligations or complete its
academic terms for the next 18 months.
new text end

new text begin Subd. 2. new text end

new text begin Additional reporting. new text end

new text begin (a) In addition to the information required for the
indicators in subdivision 1, an institution must notify the office within ten business days if
any of the events in paragraphs (b) to (e) occur.
new text end

new text begin (b) Related to revenue, debt, and cash flow, notice is required if:
new text end

new text begin (1) the institution defaulted on a debt payment or covenant and has not received a waiver
of the violation from the financial institution within 60 days;
new text end

new text begin (2) for institutions with a federal composite score of less than 1.5, the institution's owner
withdraws equity that directly results in a composite score of less than 1.0, unless the
withdrawal is a transfer between affiliated entities included in a common composite score;
new text end

new text begin (3) the United States Department of Education requires a 25 percent or greater Letter of
Credit, except when the Letter of Credit is imposed due to a change of ownership;
new text end

new text begin (4) the United States Department of Education requires Heightened Cash Monitoring 2;
new text end

new text begin (5) the institution receives written notification that it violated the United States
Department of Education's revenue requirement under United States Code, title 20, section
1094(a)(24), as amended; or
new text end

new text begin (6) the institution receives written notification by the United States Department of
Education that it has fallen below minimum financial standards and that its continued
participation in Title IV is conditioned upon 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).
new text end

new text begin (c) Related to accreditation and licensing, notice is required if:
new text end

new text begin (1) the institution receives written notification of probation, warning, show-cause, or
loss of institutional accreditation;
new text end

new text begin (2) the institution receives written notification that its institutional accreditor lost federal
recognition; or
new text end

new text begin (3) the institution receives written notification that it has materially violated state
authorization or institution licensing requirements in a different state that may lead to or
has led to the termination of the institution's ability to continue to provide educational
programs or otherwise continue to operate in that state.
new text end

new text begin (d) Related to securities, notice is required if:
new text end

new text begin (1) the Securities and Exchange Commission (i) issues an order suspending or revoking
the registration of the institution's securities, or (ii) suspends trading of the institution's
securities on any national securities exchange;
new text end

new text begin (2) the national securities exchange on which the institution's securities are traded notifies
the institution that it is not in compliance with the exchange's listing requirements and the
institution's securities are delisted; or
new text end

new text begin (3) the Securities and Exchange Commission is not in timely receipt of a required report
and did not issue an extension to file the report.
new text end

new text begin (e) Related to criminal and civil investigations, notice is required if:
new text end

new text begin (1) the institution receives written notification of a felony criminal indictment or charges
of the institution's owner;
new text end

new text begin (2) the institution receives written notification of criminal indictment or charges of the
institution's officers related to operations of the institution; or
new text end

new text begin (3) there has been a criminal, civil, or administrative adjudication of fraud or
misrepresentation in Minnesota or in another state or jurisdiction against the institution or
its owner, officers, agents, or sponsoring organization.
new text end

new text begin Subd. 3. new text end

new text begin Determination procedures. new text end

new text begin (a) The office shall conduct a systematic evaluation
under this paragraph and make a preliminary determination as to whether action under
paragraph (e) is necessary, if the office: (1) identifies a potential risk under subdivision 1,
paragraph (d); (2) receives notification from an institution under subdivision 2; or (3)
identifies other exigent circumstances impacting the institution that may deny students a
reasonable opportunity to complete their education program at the institution or through an
alternate institution with minimal disruption. The systematic evaluation must, to the extent
practicable, be a collaboration between the office and the institution. The office must request
additional context and information from the institution that demonstrates the administrative
and financial responsibility of the institution. If the institution is not financially or
administratively responsible, a contingency plan must be implemented either collaboratively
or as part of a final determination under paragraph (e), clause (4).
new text end

new text begin (b) The office shall provide notice in writing to the institution of the preliminary
determination. The notice shall provide the analysis used by the office to make the
determination, a request for the institution to provide additional context and information
that demonstrates the administrative and financial responsibility of the institution not provided
under paragraph (a), any potential action the office may take under paragraph (e), and a
deadline for responding to the notice. The institution shall have no fewer than ten business
days to respond to the preliminary determination.
new text end

new text begin (c) The response from the institution to provide additional context and information must
be written and may include a collaborative consultation with the office. In its response, the
institution shall provide additional context, financial data, and other information, including
but not limited to evidence of sound business practices, institutional financial health,
compliance with the requirements of sections 136A.61 to 136A.71, or sufficient and timely
plans to cure any noncompliance or to manage financial health and risk.
new text end

new text begin (d) If the institution does not respond to the office's notice and request for additional
context and information within the time required, the office's preliminary determination
shall become final and the office may take any of the actions specified in the notice required
by paragraph (e). If the institution responds to the office's notice, the office must reevaluate
the preliminary determination. The office shall use the additional context and information
provided by the institution to make a final determination and determine which actions under
paragraph (e), if any, are necessary to mitigate risk to students and state financial aid under
this chapter.
new text end

new text begin (e) The office may use a final determination to:
new text end

new text begin (1) revoke, suspend, or refuse to renew registration, approval of an institution's degree,
or use of a regulated term in its name under section 136A.65, subdivision 8;
new text end

new text begin (2) require periodic monitoring and submission of reports on the institution's
administrative and financial responsibility to ascertain whether compliance and financial
risk improves;
new text end

new text begin (3) require periodic collaborative consultations with the institution on noncompliance
with sections 136A.61 to 136A.71, or how the institution is managing financial health and
risk;
new text end

new text begin (4) require the institution to submit contingency plans such as teach-out plans or transfer
pathways for students;
new text end

new text begin (5) prohibit the institution from accepting tuition and fee payments made through cash,
alternative loans, or the equivalent, prior to the add/drop period of the current period of
instruction;
new text end

new text begin (6) prohibit the institution from enrolling new students;
new text end

new text begin (7) initiate alternative processes and communications with students enrolled at the
institution;
new text end

new text begin (8) require a surety bond under section 136A.646; or
new text end

new text begin (9) submit institution closure information under section 136A.645.
new text end

new text begin (f) The office shall provide to the institution written notice of the final determination
and the actions taken under paragraph (e).
new text end

new text begin Subd. 4. new text end

new text begin Data classification. new text end

new text begin Data under this section shall be classified as financial
records under section 136A.64, subdivision 2, except for the following data, which shall be
public:
new text end

new text begin (1) a final determination that is subject to action under subdivision 3, paragraph (e),
clauses (1), (5), (6), and (7), and a summary of the reasons for the determination; and
new text end

new text begin (2) data received by the office under subdivision 2, paragraph (b), clauses (2), (4), and
(6); paragraph (c), clauses (1) and (2); and paragraphs (d) and (e).
new text end

Sec. 29.

Minnesota Statutes 2020, section 136A.68, is amended to read:


136A.68 RECORDS.

new text begin (a) new text endA registered school shall maintain a permanent record for each student for 50 years
from the last date of the student's attendance. A registered school offering distance instruction
to a student located in Minnesota shall maintain a permanent record for each Minnesota
student for 50 years from the last date of the student's attendance. Records include a student's
academic transcript, documents, and files containing student data about academic credits
earned, courses completed, grades awarded, degrees awarded, and periods of attendance.

new text begin (b) A registered school shall maintain records required for professional licensure in
Minnesota that are not included in paragraph (a) for ten years from the last date of the
student's attendance or the number of years required by an institutional or programmatic
accreditor, whichever is greater.
new text end

new text begin (c)new text end To preserve permanent records, a school shall submit a plan that meets the following
requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository or
duplicate records must be maintained off site in a secure location and in a manner approved
by the office;

(2) an appropriate official must be designated to provide a student with copies of records
or a transcript upon request;

(3) an alternative method approved by the office of complying with clauses (1) and (2)
must be established if the school ceases to exist; and

(4) if the school has no binding agreement approved by the office for preserving student
records, a continuous surety bond or an irrevocable letter of credit issued by a financial
institution must be filed with the office in an amount not to exceed $20,000. The bond or
irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure,
the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover,
maintain, digitize, and destroy academic records.

Sec. 30.

Minnesota Statutes 2020, section 136A.822, subdivision 12, is amended to read:


Subd. 12.

Permanent student records.

new text begin(a) new text endA private career school licensed under
sections 136A.82 to 136A.834 and located in Minnesota shall maintain a permanent student
record for each student for 50 years from the last date of the student's attendance. A private
career school licensed under this chapter and offering distance instruction to a student located
in Minnesota shall maintain a permanent record for each Minnesota student for 50 years
from the last date of the student's attendance. Records include school transcripts, documents,
and files containing student data about academic credits earned, courses completed, grades
awarded, degrees awarded, and periods of attendance.

new text begin (b) A private career school licensed under sections 136A.82 to 136A.834 and located
in Minnesota shall maintain a permanent student record required for professional licensure
in Minnesota for each student for ten years from the last date of the student's attendance or
the number of years required by an institutional or programmatic accreditor, whichever is
greater. A private career school licensed under this chapter and offering distance instruction
to a student located in Minnesota shall maintain records required for professional licensure
in Minnesota that are not included in paragraph (a) for each Minnesota student for ten years
from the last date of the student's attendance or the number of years required by an
institutional or programmatic accreditor, whichever is greater.
new text end

To preserve permanent student records, a private career school shall submit a plan that
meets the following requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository;

(2) an appropriate official must be designated to provide a student with copies of records
or a transcript upon request;

(3) an alternative method, approved by the office, of complying with clauses (1) and (2)
must be established if the private career school ceases to exist; and

(4) a continuous surety bond or irrevocable letter of credit issued by a financial institution
must be filed with the office in an amount not to exceed $20,000 if the private career school
has no binding agreement approved by the office, for preserving student records. The bond
or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school
closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve,
recover, maintain, digitize, and destroy academic records.

Sec. 31.

Minnesota Statutes 2020, section 136A.8225, is amended to read:


136A.8225 SCHOOL CLOSURE.

(a) When a school intends to cease postsecondary education operations, announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its licensure status or ability to meet criteria for approval under section 136A.822, subdivision
8, the school must provide the office:

(1) a notice of closure, including the name of the school, the name of the school owner,
an active mailing address and telephone number that the school owner may be reached at
after the school physically closes, the name of the school director, and the planned date for
termination of postsecondary operations;

(2) a report of all students currently enrolled and all students enrolled within the prior
120 days, including the following information for each student: name, address, school e-mail
address, alternate e-mail address, program of study, number of credits completed, number
of credits remaining, and enrollment status at closure;

(3) a report of refunds due to any student and the amount due;

(4) a written statement from the school's owner or designee affirming that all recruitment
efforts, school marketing, advertisement, solicitation, and enrollment of new students has
ceased;

(5) a copy of any communication between the school's accreditors about the school
closure;

(6) confirmation that the requirements for student records under section 136A.822,
subdivision 12, have been satisfied, including:

(i) the planned date for the transfer of the student records;

(ii) confirmation of the name and address of the organization to receive and hold the
student records; and

(iii) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request;

(7) academic information, including the school's most recent catalog, all course syllabi,
and faculty credential information; and

(8) copies of any teach-out, transfer, or train-out agreement between the school and a
new school for students to be able to complete their studies. A teach-out fulfills the original
contract or agreement between the closing school and the student. If a teach-out is arranged
for another approved school to do the remaining occupational training, that other school
must (i) provide comparable education and training and (ii) agree that students transferring
from the closing school pay only what the cost of tuition and fees remain unpaid according
to the terms and conditions in the enrollment agreement entered into between the student
and the closing school.

(b) Without limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:

(1) has an unscheduled nonemergency closure or cancellation of classes for more than
24 hours without prior notice to the office;

(2) announces it is closed or closing; deleted text beginor
deleted text end

(3) files for bankruptcydeleted text begin.deleted text endnew text begin; or
new text end

new text begin (4) fails to complete a renewal application when required under section 136A.823,
subdivision 3.
new text end

(c) When a school is deemed to have ceased operations, the office shall provide the
school a reasonable time to correct student records and grant credentials. After that time,
the office must revoke the school's license. This revocation is not appealable under section
136A.829, subdivision 2.

Sec. 32.

Minnesota Statutes 2020, section 136A.823, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Change of ownership. new text end

new text begin Within 30 days of a change of ownership, a school must
submit a registration renewal application, the information and materials for an initial
registration under section 136A.822, subdivision 4, and the applicable registration fees for
a new institution under section 136A.824, subdivision 1. For purposes of this subdivision,
"change of ownership" means: a merger or consolidation with a corporation; a sale, lease,
exchange, or other disposition of all or substantially all of the assets of a school; the transfer
of a controlling interest of at least 51 percent of the school's stock; entering into receivership;
or a change in the nonprofit or for-profit status of a school.
new text end

Sec. 33.

Minnesota Statutes 2020, section 136A.827, subdivision 4, is amended to read:


Subd. 4.

Proration.

new text begin(a) new text endWhen a student has been accepted by a private career school
and gives notice of cancellation after the program of instruction has begun, deleted text beginbut before
completion of 75 percent of the program, the amount charged for tuition, fees and all other
charges shall be prorated based on the number of days in the term as a portion of the total
charges for tuition, fees and all other charges. An additional 25 percent of the total cost of
the program may be added but shall not exceed $100. After completion of 75 percent of the
program, no refunds are required.
deleted text endnew text begin the student is entitled to a refund if, at the last documented
date of attendance, the student has not completed at least 75 percent of the entire program
of instruction. For purposes of this subdivision, program of instruction is calculated under
paragraph (c) or (d). Program of instruction does not mean one term, a payment period, a
module, or any other portion of the entire instructional program.
new text end

new text begin (b)new text end A notice of cancellation from a student under this subdivision must be confirmed in
writing by the private career school and mailed to the student's last known address. The
confirmation from the school must state that the school has withdrawn the student from
enrollment, and if this action was not the student's intent, the student must contact the school.

new text begin (c) The length of a program of instruction for a program that has a defined calendar start
and end date that does not change after the program has begun equals the number of days
from the first scheduled date of the program through the last scheduled date of the program.
To calculate the completion percentage, divide the number of calendar days from the first
date of the program through the student's last documented date of attendance by the length
of the program of instruction, and truncate the result after the second digit following the
decimal point. If the completion percentage is less than 75 percent, the private career school
may retain:
new text end

new text begin (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
by the completion percentage; plus
new text end

new text begin (2) the initial program application fees, not to exceed $50; plus
new text end

new text begin (3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
new text end

new text begin (d) The length of a program of instruction for a program that is measured in clock hours
equals the number of clock hours the student was scheduled to attend. To calculate the
completion percentage, divide the number of clock hours that the student actually attended
by the length of the program of instruction, and truncate the result after the second digit
following the decimal point. If the completion percentage is less than 75 percent, the private
career school may retain:
new text end

new text begin (1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied
by the completion percentage; plus
new text end

new text begin (2) the initial program application fees, not to exceed $50; plus
new text end

new text begin (3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
new text end

Sec. 34.

Minnesota Statutes 2020, section 136A.827, subdivision 8, is amended to read:


Subd. 8.

Cancellation occurrence.

deleted text beginWritten notice of cancellation shall take place on
the date the letter of cancellation is postmarked or, in the cases where the notice is hand
carried, it shall occur on the date the notice is delivered to the private career school.
deleted text endnew text begin Notice
of cancellation shall be the date a student notifies a private career school of the student's
intention to withdraw or otherwise leave the program of study. The student is not required
to provide a written notice. The private career school may require a student to provide the
student's notification only to specific offices or personnel at the school as long as this
requirement is documented as part of the "Student's Right to Cancel" in all places that the
information appears, including on the private career school's website. The date of the notice
of cancellation may or may not be the same date as the student's last documented date of
attendance.
new text end If a student has not attended class for a period of deleted text begin21deleted text endnew text begin 14new text end consecutive days without
contacting the private career school to deleted text beginindicate an intent to continue in the private career
school
deleted text endnew text begin provide notice of cancellationnew text end or otherwise deleted text beginmakingdeleted text endnew text begin makenew text end arrangements concerning
the absence, the student is considered to have withdrawn from the private career school for
all purposes as of the student's last documented date of attendance.

Sec. 35.

new text begin [136A.91] CONCURRENT ENROLLMENT GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) The Office of Higher Education must establish a competitive
grant program for postsecondary institutions to expand concurrent enrollment opportunities.
To the extent that there are qualified applicants, the commissioner of the Office of Higher
Education shall distribute grant funds to ensure:
new text end

new text begin (1) eligible students throughout the state have access to concurrent enrollment programs;
and
new text end

new text begin (2) preference for grants that expand programs is given to programs already at capacity.
new text end

new text begin (b) The commissioner may award grants under this section to postsecondary institutions
for any of the following purposes:
new text end

new text begin (1) to develop new concurrent enrollment courses under section 124D.09, subdivision
10, that satisfy the elective standard for career and technical education; or
new text end

new text begin (2) to expand the existing concurrent enrollment programs already offered by the
postsecondary institution by:
new text end

new text begin (i) creating new sections within the same high school;
new text end

new text begin (ii) offering the existing course in new high schools; or
new text end

new text begin (iii) supporting the preparation, recruitment, and success of students who are
underrepresented in concurrent enrollment classrooms.
new text end

new text begin Subd. 2. new text end

new text begin Application. new text end

new text begin (a) The commissioner shall develop a grant application process.
A grant applicant must:
new text end

new text begin (1) specify the purpose under subdivision 1, paragraph (b), for which the institution is
applying;
new text end

new text begin (2) specify both program and student outcome goals;
new text end

new text begin (3) include student feedback in the development of new programs or the expansion of
existing programs; and
new text end

new text begin (4) demonstrate a commitment to equitable access to concurrent enrollment coursework
for all eligible high school students.
new text end

new text begin (b) A postsecondary institution applying for a grant under subdivision 1, paragraph (b),
clause (3), must provide a 50 percent match for the grant funds.
new text end

new text begin Subd. 3. new text end

new text begin Report. new text end

new text begin By December 1 of each year, the office shall submit a report to the
chairs and ranking minority members of the legislative committees with jurisdiction over
higher education regarding:
new text end

new text begin (1) the amount of funds granted under each clause of subdivision 1, paragraph (b);
new text end

new text begin (2) the courses developed by grant recipients and the number of students who enrolled
in the courses under subdivision 1, paragraph (b), clause (1); and
new text end

new text begin (3) the programs expanded and the number of students who enrolled in programs under
subdivision 1, paragraph (b), clause (2).
new text end

Sec. 36.

Minnesota Statutes 2020, section 136F.20, is amended by adding a subdivision
to read:


new text begin Subd. 4. new text end

new text begin Mental health awareness program. new text end

new text begin (a) The board shall implement a mental
health awareness program at each Minnesota state college and university by the start of the
2022-2023 academic year. A mental health awareness program shall include:
new text end

new text begin (1) a web page at each institution that includes links to existing self-assessment resources,
resources connecting students to campus and community-based resources, and emergency
contact information and resources;
new text end

new text begin (2) mandatory mental health first aid training, evidence-based suicide prevention training,
or other similar mental health training for faculty, staff, and students, giving priority to those
who serve in roles that include increased direct contact with students who are experiencing
mental health concerns, such as student housing and campus safety employees. Each college
and university shall identify the appropriate faculty, staff, and students to receive training
based on college or university structure and available funding;
new text end

new text begin (3) a session at each student orientation program that includes information about
maintaining good mental health, the symptoms of mental health conditions common among
college students, and mental health resources and services available to students;
new text end

new text begin (4) a messaging strategy to send students information on available mental health resources
and services at least once per term, and during periods of high academic stress; and
new text end

new text begin (5) distributing the suicide prevention helpline and text line contact information in a
way that increases accessibility and awareness of that information to students.
new text end

new text begin (b) The board shall create and maintain a mental health community of practice including
faculty and staff with subject matter expertise in mental health to identify resources and
best practices to inform campus-based strategies to raise awareness of local and state
resources and implement appropriate training experiences.
new text end

new text begin (c) The board shall make grants to Minnesota State Colleges and Universities to establish
a peer support pilot program designed to assist students with a mental health condition. The
program shall utilize student peers to support students living with mental health conditions
on campus. The peer support program may be housed within the counseling center, wellness
center, or resident assistance programs on campus. The peer support program leaders must
be trained to facilitate discussions on mental health, identify students who may be in crisis,
and refer students to programs for mental health support.
new text end

Sec. 37.

new text begin [136F.202] STUDENT SUCCESS BASIC NEEDS BARRIER REDUCTION.
new text end

new text begin Subdivision 1. new text end

new text begin Basic needs resources. new text end

new text begin (a) Each college and university shall create and
maintain a web page that clearly identifies basic needs resources available at the college or
university. This web page shall clearly identify at least one staff member, faculty member,
or department as a point of contact to whom students may direct questions. Each college
and university shall also make the information under this paragraph available on the college
or university mobile application, if possible.
new text end

new text begin (b) The board shall pursue the creation of a centralized basic needs online resource web
page that will raise awareness of campus-based resources available at colleges and
universities and local, state, and national resources that can assist in addressing basic needs
insecurity.
new text end

new text begin Subd. 2. new text end

new text begin Basic needs support trigger. new text end

new text begin (a) The board shall develop and implement, at
each college and university, initiatives or campaigns to raise awareness among all students
of potential Supplemental Nutrition Assistance Program (SNAP) eligibility including targeted
communications to students who are likely eligible.
new text end

new text begin (b) The board shall develop a financial aid resource trigger that utilizes data from the
Free Application for Federal Student Aid (FAFSA), applications for state financial aid, or
other applicable data to identify students who are likely eligible for assistance or programs
that reduce basic needs insecurity such as SNAP. The board shall utilize this resource trigger
to provide information and support to students on how to access assistance or programs that
reduce basic needs insecurity.
new text end

Sec. 38.

Minnesota Statutes 2020, section 136F.245, is amended to read:


136F.245 HUNGER-FREE CAMPUS DESIGNATION.

Subdivision 1.

Establishment.

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

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

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

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

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

(5) establish a hunger task force that meets a minimum of three times per academic year.
The task force must include at least two students currently enrolled at the deleted text begincollegedeleted text endnew text begin institutionnew text end.

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

Subd. 2.

Designation approval.

new text begin(a) new text endThe statewide student deleted text beginassociationdeleted text endnew text begin associationsnew text end
representing thenew text begin statenew text end community and technical colleges new text beginand the state universities new text endshall
create an application process and deleted text begina nonmonetarydeleted text end new text beginan new text endawarddeleted text begin,deleted text end and provide final approval for
the designation at each new text beginstate new text endcollegenew text begin and university, respectivelynew text end.

new text begin (b) The University of Minnesota Student Association at each institution shall create an
application process and an award and provide final approval for the designation at each
University of Minnesota institution.
new text end

new text begin (c) The Minnesota Association of Private College Students and the Student Advisory
Council member representing Tribal colleges pursuant to section 136A.031, subdivision 3,
shall create an application process and an award and provide final approval for the designation
at each nonprofit degree-granting institution.
new text end

deleted text begin Subd. 3. deleted text end

deleted text begin Expiration. deleted text end

deleted text begin This section expires July 1, 2023.
deleted text end

new text begin Subd. 4. new text end

new text begin Competitive grant. new text end

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

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

new text begin (c) The commissioner shall give preference to applications for initial grants and to
applications from institutions with the highest number of federal Pell Grant eligible students
enrolled. The commissioner shall consider the head count at the institution when awarding
grants. The maximum grant award for an initial institution designation is $8,000. The
maximum grant award for sustaining an institution designation is $5,000.
new text end

new text begin (d) The commissioner, in collaboration with student associations representing eligible
institutions, shall create an application process and establish selection criteria for awarding
the grants.
new text end

new text begin Subd. 5. new text end

new text begin Grant requirements. new text end

new text begin (a) An eligible institution that receives a grant under
subdivision 4 must:
new text end

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

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

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

Sec. 39.

Minnesota Statutes 2020, section 136F.305, is amended to read:


136F.305 Z-DEGREES.

Subdivision 1.

Definitions.

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

deleted text begin (b) "Custom textbook" means course materials that are compiled by a publisher at the
direction of a faculty member or, if applicable, the other adopting entity in charge of selecting
course materials for courses taught at a state college or university. Custom textbooks may
include items such as selections from original instructor materials, previously copyrighted
publisher materials, copyrighted third-party works, or elements unique to a specific state
college or university.
deleted text end

new text begin (b) "Course" means a single unit of teaching in one subject area led by one or more
instructors with a definite start and end date and a fixed roster of students.
new text end

new text begin (c) "Course materials" means a hard-copy or digital book, printed pages of instructional
material, including consumable workbooks, lab manuals, subscriptions, online homework
and quizzing platforms, and other required physical and digital content.
new text end

new text begin (d) "Course section" means an instance of a course.
new text end

deleted text begin (c)deleted text endnew text begin (e)new text end "Incentive" means anything provided to faculty to identify, review, adapt, author,
or adopt open deleted text begintextbooksdeleted text endnew text begin educational resourcesnew text end.

deleted text begin (d)deleted text endnew text begin (f)new text end "Open educational resources" means deleted text beginhigh-qualitydeleted text end teaching, learning, and research
deleted text begin resourcesdeleted text endnew text begin materialsnew text end that deleted text beginresidedeleted text endnew text begin arenew text end in the public domain or have been released under an
intellectual property license that permits their free use and repurposing by othersdeleted text begin, and may
include other resources that are legally available and free of cost to students
deleted text end. Open
educational resources include deleted text begincourse materials, modules, custom and open textbooks, articles,
faculty-created content, streaming videos, tests, software, and any other tools, materials, or
techniques used to support access to knowledge
deleted text endnew text begin textbooks and curricula, syllabi, lecture
notes, assignments, tests, projects, audio, video, and animation
new text end.

deleted text begin (e)deleted text endnew text begin (g)new text end "Open textbook" means deleted text begina textbook that is distributed using an open copyrightdeleted text endnew text begin a
type of open educational resource released under an intellectual property
new text end license that at a
minimum allows a student to obtain, retain, reuse, and redistribute the material at no cost.

new text begin (h) "Library-curated materials" means diverse resources purchases by the library at no
additional cost to the student for the supplementation or replacement of course materials.
new text end

deleted text begin (f)deleted text endnew text begin (i)new text end "System office" means the Minnesota State Colleges and Universities system
office.

deleted text begin (g)deleted text endnew text begin (j)new text end "Z-Degree" means a deleted text beginzero-textbook-costdeleted text endnew text begin completenew text end associate's new text beginor bachelor's new text enddegreenew text begin
program that exclusively uses course materials that are no cost to students such as open
educational resources, open textbooks, and library-curated materials
new text end.new text begin Students may still
incur costs for printing digital materials or for the following: art supplies, calculators,
equipment, fees in statute or policy mandated to be charged by all colleges and universities,
campus discretionary fees established by the board and adopted by the college, personal
property, and service charges or course activities having value outside of the classroom.
new text end

Subd. 2.

Requirement.

new text begin(a) new text endThree additional colleges must offer the opportunity to earn
a Z-Degree by academic year 2020-2021. deleted text beginA college'sdeleted text endnew text begin Four additional colleges or universities
must offer the opportunity to earn a Z-Degree by academic year 2023-2024.
new text end Course offerings
deleted text begin for itsdeleted text endnew text begin in anew text end Z-Degree program must include at least two distinct courses in each transfer
curriculum goal area and at least enough credits in each transfer curriculum goal area to
complete the transfer curriculum package.

new text begin (b) The Minnesota State Colleges and Universities shall support a continuous process
for colleges and universities to implement Z-Degrees, expand Z-Degree courses and sections,
and sustain existing Z-Degrees.
new text end

Subd. 3.

Open educational resource development.

(a) deleted text beginThe Minnesota State Colleges
and Universities must develop a program to offer a Z-degree at three additional colleges by
expanding the use of open educational resources, including custom and open textbooks.
deleted text end
The system office must provide opportunities for faculty to identify, review, adapt, deleted text beginauthor,deleted text endnew text begin
create, share,
new text end and adopt open educational resources. The system office must develop
incentives to academic departments to identify, review, adapt, author, or adopt open
educational resources within their academic programs.

(b) The programs and incentives developed under this subdivision must be implemented
pursuant to faculty collective bargaining agreements.

Subd. 4.

Report.

new text beginAnnually by January 15, new text endthe board must submit reports deleted text beginby January 13,
2021, and January 12, 2022,
deleted text end to the chairs and ranking minority members of the legislative
committees with jurisdiction over higher education. Each report must include (1) the number
of courses new text beginand course sections new text endtransitioned deleted text beginto using an open textbook resulting from the
programs in this section
deleted text endnew text begin into a new Z-Degreenew text end, deleted text beginanddeleted text end (2) the total amount of student textbook
savings resulting from the transitionsnew text begin, and (3) information on the types of incentives
developed and offered to faculty and the corresponding funding for those incentives
new text end.

Sec. 40.

Minnesota Statutes 2020, 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; deleted text beginordeleted text end (6) transportationnew text begin or (7)
a program of study under paragraph (b)
new text end.

(b) new text beginEach 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.
new text end

new text begin (c) new text endThe student must be enrolled for at least nine credits new text beginin a two-year college new text endin the
Minnesota State Colleges and Universities systemnew text begin to be eligible for first- and second-year
scholarships
new text end.

new text begin (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.
new text end

Sec. 41. new text beginCREDIT FOR PRIOR LEARNING.
new text end

new text begin (a) Minnesota State Colleges and Universities must expand credit for prior learning to
include as many forms of work-based experiences as possible, working with faculty to
properly credit experiences for students, as appropriate. Minnesota State Colleges and
Universities shall proactively make students aware of the credit for prior learning program
and take steps to ensure gaining credit is easily accessible to students.
new text end

new text begin (b) By February 1, 2022, Minnesota State Colleges and Universities must report to the
chairs and ranking minority members of the legislative committees and divisions with
jurisdiction over higher education on the success of credit for prior learning in granting
credits and its continued development as required under this subdivision.
new text end

Sec. 42. new text beginDIRECT ADMISSIONS PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Authorization. new text end

new text begin The commissioner of the Office of Higher Education
shall develop a pilot program in consultation with stakeholders including Minnesota State
Colleges and Universities, the University of Minnesota, the Student Advisory Council under
Minnesota Statutes, section 136A.031, Minnesota Department of Education, the Minnesota
Association of Secondary School Principals, and the Minnesota School Board Association
to automatically offer conditional admission into Minnesota public colleges and universities
to Minnesota public high school seniors based on a student's high school grade point average,
high school and college transcript information, standardized tests, statewide assessments,
and other measures as determined by stakeholders.
new text end

new text begin Subd. 2. new text end

new text begin Pilot design and goals. new text end

new text begin The pilot program shall establish and, to the extent
feasible, implement a process for leveraging existing kindergarten through grade 12 and
higher education student information systems to automate the admissions process for students.
The pilot program will specifically evaluate the impact this process has on outcomes for
students with lower levels of college knowledge, low-income students, and students from
populations underserved in higher education. Initial pilot program participants must include
high schools with a significant number of students of color, low-income students, or both,
and must achieve statewide representation.
new text end

new text begin Subd. 3. new text end

new text begin Evaluation and report. new text end

new text begin By February 1, 2022, the Office of Higher Education
shall report to the chairs and ranking minority members of the legislative committees with
jurisdiction over kindergarten through grade 12 education finance and policy and higher
education on activities occurring under this section. The report must include but is not
limited to information about the pilot program design, implementation challenges and
recommendations, outcomes, and the feasibility of scaling the program to all public high
schools.
new text end

Sec. 43. new text beginREPORT ON THE EXPENSE PATTERNS OF PUBLIC HIGHER
EDUCATION INSTITUTIONS.
new text end

new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities shall perform
an internal audit of expenditures to determine the extent to which administrative costs have
increased based on uniform, historical data, and provide a report to the chairs and ranking
minority members of the house of representatives and senate higher education committees,
and the chairs and ranking minority members of the senate Finance Committee, and the
house of representatives Ways and Means Committee by January 1, 2022.
new text end

new text begin (b) The Board of Trustees shall provide the following information for each institution
under its jurisdiction. The Board of Trustees shall use the Integrated Postsecondary Education
Data System (IPEDS) data submitted to the National Center for Education Statistics (NCES)
to ensure uniformity, as institutions that receive federal financial aid funding report their
financial data annually to NCES, and expense classifications are generally consistent
year-to-year and apply to institutions uniformly. The report shall include for each Minnesota
State College and University the following information:
new text end

new text begin (1) the amount and description of expenses included in the following terms as reported
in the integrated postsecondary education data system:
new text end

new text begin (i) instruction;
new text end

new text begin (ii) research;
new text end

new text begin (iii) public service;
new text end

new text begin (iv) academic support;
new text end

new text begin (v) student services;
new text end

new text begin (vi) institutional support; and
new text end

new text begin (vii) other core expenses;
new text end

new text begin (2) historical data on the amount of expenses listed in clause (1) over the previous ten
years, accompanied by a graph reflecting the figures;
new text end

new text begin (3) the current ratio of the institution's spending on institutional support versus instruction,
and the ratio over the previous ten fiscal years, accompanied by a graph reflecting the figures;
and
new text end

new text begin (4) an analysis as to whether the institution's administrative operations are growing
disproportionately in relation to its core academic functions, which may place upward
pressure on the cost of tuition and required fees, if such institution has any ratio under clause
(3) that is greater than the respective median ratio for institutions of its Carnegie classification
and of similar undergraduate enrollments. The variables in clause (3) must be used when
comparing and calculating ratios for institutions of the same Carnegie classification and
similar undergraduate enrollments.
new text end

new text begin (c) The Board of Trustees shall also provide in the report an analysis of administrative
costs at the central office and the increase in staffing over the previous ten years.
new text end

new text begin (d) The Board of Regents of the University of Minnesota is requested to perform an
audit and provide the reports as specified under this section.
new text end

Sec. 44. new text beginTRANSCRIPT ACCESS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) The terms defined in this subdivision apply to this section.
new text end

new text begin (b) "Debt" means any money, obligation, claim, or sum, due or owed, or alleged to be
due or owed, from a student that appears on the student account. Debt does not include the
fee, if any, charged to all students for the actual costs of providing the transcripts.
new text end

new text begin (c) "School" means any public institution governed by the Board of Trustees of the
Minnesota State Colleges and Universities, private postsecondary educational institution
as defined under section 136A.62 or 136A.821, or public or private entity responsible for
providing transcripts to current or former students of an educational institution. Institutions
governed by the Board of Regents of the University of Minnesota are requested to comply
with this section.
new text end

new text begin (d) "Transcript" means the statement of an individual's academic record, including an
official transcript or the certified statement of an individual's academic record provided by
a school and an unofficial transcript or the uncertified statement of an individual's academic
record provided by a school.
new text end

new text begin Subd. 2. new text end

new text begin Prohibited practices. new text end

new text begin A school must not:
new text end

new text begin (1) refuse to provide a transcript for a current or former student because the student owes
a debt to the school if:
new text end

new text begin (i) the debt owed is less than $250;
new text end

new text begin (ii) the student has entered into and, as determined by the institution, is in compliance
with a payment plan with the school;
new text end

new text begin (iii) the transcript request is made by a prospective employer for the student; or
new text end

new text begin (iv) the school has sent the debt for repayment to the Department of Revenue or to a
collection agency, as defined in section 332.31, subdivision 3, external to the institution;
or
new text end

new text begin (2) charge an additional or a higher fee for obtaining a transcript or provide less favorable
treatment of a transcript request because a student owes a debt to the originating school.
new text end

new text begin Subd. 3. new text end

new text begin Institutional policy. new text end

new text begin (a) Institutions that use transcript issuance as a tool for
debt collection must have a policy accessible to students that outlines how the institution
collects on debts owed to the institution.
new text end

new text begin (b) Institutions shall seek to use transcript issuance as a tool for debt collection for the
fewest number of cases possible.
new text end

new text begin Subd. 4. new text end

new text begin Report required. new text end

new text begin (a) By April 15, 2022, and April 15, 2023, a school subject
to this section must provide the Office of Higher Education a report that includes the
following information for the most recently completed academic year:
new text end

new text begin (1) the school's current policy on transcript holds due to debt owed to the school and the
school's same policy prior to the enactment of this section;
new text end

new text begin (2) the number of students who owe a debt of less than $250 to the school;
new text end

new text begin (3) the number of students who owe a debt of more than $250 to the school;
new text end

new text begin (4) the number of students who have had their transcripts withheld for nonpayment of
a debt;
new text end

new text begin (5) the number of students who entered a payment plan after the hold is placed;
new text end

new text begin (6) what percentage of funds owed by students are collected; and
new text end

new text begin (7) the number of students with debt who were able to obtain transcripts due to this
provision, whether the debt was paid, and whether the students whose transcript hold was
waived reenrolled. The information under this clause is required only to the extent the office
is able to obtain the information.
new text end

new text begin Reports submitted for the first year should include the most recently completed academic
year and the two prior years. The report must also include information on any state,
institutional, or federal COVID funds used to pay for transcript holds.
new text end

new text begin (b) By October 15, 2022, and October 15, 2023, the commissioner shall compile the
data submitted under paragraph (a) and report to the legislature as provided in Minnesota
Statutes, section 3.195, and to the chairs and ranking minority members of the legislative
committees with jurisdiction over higher education on the impact of this section.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2024.
new text end

Sec. 45. new text beginASPIRING MINNESOTA TEACHERS OF COLOR SCHOLARSHIP
PILOT PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Scholarship pilot program established. new text end

new text begin The commissioner must establish
a scholarship pilot program to support undergraduate and graduate students who are preparing
to become teachers, have demonstrated financial need, and belong to racial or ethnic groups
underrepresented in the state's teacher workforce.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin (a) To be eligible for a scholarship under this section, an applicant
must:
new text end

new text begin (1) be admitted and enrolled in a teacher preparation program approved by the
Professional Educator Licensing and Standards Board and be seeking initial licensure, or
be enrolled in an eligible institution under section 136A.103 and be completing a two-year
program specifically designed to prepare early childhood educators;
new text end

new text begin (2) affirm to the teacher preparation program or the Office of Higher Education that the
applicant is a person of color or American Indian;
new text end

new text begin (3) be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10; and
new text end

new text begin (4) demonstrate financial need based on criteria developed by the commissioner.
new text end

new text begin (b) An eligible applicant may receive a scholarship award more than once, but may
receive a total of no more than $25,000 in scholarship awards from the program.
new text end

new text begin Subd. 3. new text end

new text begin Scholarship award amount. new text end

new text begin (a) The commissioner must establish a priority
application deadline and must give equal consideration to all eligible applicants regardless
of the order the application was received before the priority application deadline. If the
funds available for the program are insufficient to make full awards to all eligible applicants
who apply on or before the deadline, the commissioner must make awards based on the
expected family contribution of an applicant, prioritizing applicants with the lowest expected
family contributions. If there are multiple complete applications with identical expected
family contributions, those applications may be prioritized by application completion date.
new text end

new text begin (b) The maximum award amount is $10,000 per year for full-time study. For
undergraduate students, full-time study means enrollment in a minimum of 15 or more
credits per term. For graduate students, full-time study means enrollment in a minimum of
six graduate credits or the equivalent.
new text end

new text begin (c) If an eligible applicant is enrolled in a program for one term during the academic
year, the maximum award amount is $5,000. If an eligible applicant is enrolled part time,
the award amount must be prorated on a per-credit basis.
new text end

new text begin (d) Subject to the funds available for the program, and subject to the limitation in
paragraph (e), the minimum award amount established under this section for full-time study
must be no less than $1,000 per year.
new text end

new text begin (e) An eligible applicant's individual award amount must not exceed the applicant's cost
of attendance after deducting: (1) the student's expected family contribution; (2) the sum
of all state or federal grants and gift aid received, including a Pell Grant and state grant; (3)
the sum of all institutional grants, scholarships, tuition waivers, and tuition remission
amounts; and (4) the amount of any private grants or scholarships.
new text end

new text begin (f) Awards are made until available funds are expended. Eligible applicants who
completed their applications on or before the priority application deadline but who did not
receive an award due to insufficient funds, and eligible applicants who completed their
applications after the priority application deadline, shall be placed on an award waiting list
by order of application completion date.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin (a) The commissioner must establish an application process
for individual students and institutions on behalf of all eligible students at the institution
and other guidelines for implementing the scholarship program.
new text end

new text begin (b) A scholarship award must be paid to the eligible applicant's teacher preparation
institution on behalf of the eligible applicant. Awards may be paid only when the institution
has confirmed to the commissioner the applicant's name, racial or ethnic identity, gender,
licensure area sought, and enrollment status.
new text end

new text begin Subd. 5. new text end

new text begin Service expectation. new text end

new text begin An applicant who receives a scholarship under this section
is expected to serve as a full-time teacher in Minnesota after completing the program for
which the scholarship was awarded.
new text end

new text begin Subd. 6. new text end

new text begin Report. new text end

new text begin By December 15 of each year, the commissioner must submit a full
report on the details of the scholarship program for the previous fiscal year to the legislative
committees with jurisdiction over E-12 and higher education finance and policy. The reports
must also be made available on the Office of Higher Education's website. The reports must
include the following information:
new text end

new text begin (1) the number of applicants and the number of award recipients, each broken down by
postsecondary institution with ten or more recipients;
new text end

new text begin (2) the total number of awards, the total dollar amount of all awards, and the average
award amount;
new text end

new text begin (3) summary data on the racial or ethnic identity, gender, licensure area sought, and
enrollment status of all applicants and award recipients; and
new text end

new text begin (4) other summary data identified by the commissioner as outcome indicators.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021.
new text end

Sec. 46. new text beginREVISOR INSTRUCTION.
new text end

new text begin In Minnesota Statutes, the revisor of statutes shall renumber section 136F.245, as amended
by this act, as 135A.137.
new text end

Sec. 47. new text beginREPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, sections 136A.1703; 136A.823, subdivision 2; and 136F.245,
subdivision 3,
new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; and 4830.9090, new text end new text begin
are repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 211-H0007-1

136A.1703 INCOME-CONTINGENT LOANS.

The office shall administer an income-contingent loan repayment program to assist graduates of Minnesota schools in medicine, dentistry, pharmacy, chiropractic medicine, public health, and veterinary medicine, and Minnesota residents graduating from optometry and osteopathic medicine programs. Applicant data collected by the office for this program may be disclosed to a consumer credit reporting agency under the same conditions as those that apply to the supplemental loan program under section 136A.162. No new applicants may be accepted after June 30, 1995.

136A.823 LICENSE RENEWAL.

Subd. 2.

Conditions.

The office shall adopt rules establishing the conditions for renewal of a license. The conditions shall permit two levels of renewal based on the record of the private career school. A private career school that has demonstrated the quality of its program and operation through longevity and performance in the state may renew its license based on a relaxed standard of scrutiny. A private career school that has been in operation in Minnesota for a limited period of time or that has not performed adequately on performance indicators shall renew its license based on a strict standard of scrutiny. The office shall specify minimum longevity standards and performance indicators that must be met before a private career school may be permitted to operate under the relaxed standard of scrutiny. The performance indicators used in this determination shall include, but not be limited to: regional or national accreditation, loan default rates, placement rate of graduates, student withdrawal rates, audit results, student complaints, and school status with the United States Department of Education. Private career schools that meet the requirements established in rule shall be required to submit a full relicensure report once every four years, and in the interim years will be exempt from the requirements of section 136A.822, subdivision 4, clauses (4), (5), and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.

136F.245 HUNGER-FREE CAMPUS DESIGNATION.

Subd. 3.

Expiration.

This section expires July 1, 2023.

Repealed Minnesota Rule: 211-H0007-1

4830.9050 SCOPE.

Parts 4830.9050 to 4830.9090 govern state grants used as a match to the National Service Scholars Program of the Corporation for National Service.

4830.9060 DEFINITIONS.

Subpart 1.

Scope.

For the purposes of parts 4830.9050 to 4830.9090, the terms defined in this part have the meanings given them.

Subp. 2.

Certificate of eligibility.

"Certificate of eligibility" means the certificate issued by the Minnesota Office of Higher Education to a student for proof of eligibility for a Minnesota National Service Scholars Matching Grant after the office receives written notification from the National Service Scholars Program that the student has been awarded a National Service Scholarship.

Subp. 3.

Commissioner.

"Commissioner" means the commissioner of the Minnesota Office of Higher Education.

Subp. 4.

Eligible institution.

"Eligible institution" means a postsecondary institution that is an eligible institution as defined in part 4830.0300, subparts 1 and 2, and Minnesota Statutes, section 136A.101, subdivision 4.

Subp. 5.

Minnesota National Service Scholars Matching Grant.

"Minnesota National Service Scholars Matching Grant" means the award amount under Laws 1997, chapter 183, article 2, section 19.

4830.9070 ELIGIBLE RECIPIENT.

To be eligible for a Minnesota National Service Scholars Matching Grant, a student must:

A.

be enrolled in an eligible institution;

B.

receive a national service scholarship from the Corporation for National Service; and

C.

provide a copy of the certificate of eligibility to the eligible institution.

4830.9080 INSTITUTIONAL REQUEST AND DISBURSEMENT OF FUNDS FOR GRANTS.

Subpart 1.

Institutional request.

After verifying a student's eligibility, the eligible institution must submit a written request to the commissioner for payment of the Minnesota National Service Scholars Matching Grant for the student. A copy of the student's certificate of eligibility must accompany the institution's request for payment. The request for payment must verify that the student has received a national service scholarship, indicate the name and address of the postsecondary institution enrolled in by the student, and the academic term for which the award will be used.

Subp. 2.

Deadline.

The request for grant money must be received by the commissioner no later than the last day of classes for the fiscal year for which grant money is requested.

Subp. 3.

Disbursement of funds.

An institution must not disburse matching grant money unless the student is attending or has completed an academic term during the fiscal year for which the student received a national service scholarship.

Subp. 4.

Refunds.

A matching grant award is made for a student's attendance at a specific institution for a term or terms within the state fiscal year. If a recipient fails to attend, the institution must refund the entire award to the commissioner. If a recipient withdraws before completing the term, the institution must determine if a refund is due to the commissioner. Refunds to the office are determined by:

A.

calculating the percentage that the matching grant represents of the student's total financial aid package for the applicable term, excluding funds received from federal Title IV programs, United States Code, title 20, sections 1070-1099;

B.

calculating the total tuition refund amount using the refund calculation required of schools participating in federal Title IV programs;

C.

subtracting the federal aid programs' refund amount from item B to determine the remaining tuition refund amount; and

D.

multiplying the percentage in item A by the amount calculated in item C to determine the amount to be refunded to the matching grant program.

Refunded money is available to the commissioner for awards to other eligible students.

4830.9090 PAYMENTS TO INSTITUTIONS.

Subpart 1.

Time of payment.

The commissioner shall send a Minnesota National Service Scholars Matching Grant for an eligible student to the eligible institution within 30 days of receipt of a request for payment.

Subp. 2.

Withholding payment.

The commissioner shall withhold payment for a student until the eligible institution's request for payment is complete and the student's eligibility is verified.