1.1 	A bill for an act
1.2 	relating to higher education; providing funding and policy changes for the Office 
1.3 	of Higher Education, Minnesota State Colleges and Universities, the University 
1.4 	of Minnesota, and the Mayo Clinic; creating and modifying certain student aid 
1.5 	programs; restricting limitations on student access to transcripts; modifying certain 
1.6 	school accountability provisions; expanding the hunger-free campus designation; 
1.7 	establishing a pilot project; requiring reports; appropriating money;amending 
1.8 	Minnesota Statutes 2020, sections 136A.101, subdivision 5a; 136A.121, 
1.9 	subdivisions 2, 6, 9; 136A.123, subdivision 1; 136A.125, subdivisions 2, 4; 
1.10 	136A.126, subdivisions 1, 4; 136A.1275; 136A.1704; 136A.1791; 136A.246, 
1.11 	subdivisions 1, 2, 3, 4, 5, 6, 7, 8, by adding a subdivision; 136A.63, subdivision 
1.12 	2; 136A.645; 136A.653, subdivision 5; 136A.675; 136A.68; 136A.822, subdivision 
1.13 	12; 136A.8225; 136A.823, by adding a subdivision; 136A.827, subdivisions 4, 8; 
1.14 	136F.20, by adding a subdivision; 136F.245; 136F.305; 136F.38, subdivision 3; 
1.15 	Laws 2014, chapter 312, article 1, section 4, subdivision 2; proposing coding for 
1.16 	new law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota Statutes 
1.17 	2020, sections 136A.1703; 136A.823, subdivision 2; 136F.245, subdivision 3; 
1.18 	Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; 4830.9090.
1.19 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.20 	ARTICLE 1
1.21 	APPROPRIATIONS

1.22	Section 1. APPROPRIATIONS.
 	
1.23 	The sums shown in the columns marked "Appropriations" are appropriated to the agencies 
1.24 	and for the purposes specified in this article. The appropriations are from the general fund, 
1.25 	or another named fund, and are available for the fiscal years indicated for each purpose. 
1.26 	The figures "2022" and "2023" used in this article mean that the appropriations listed under 
1.27 	them are available for the fiscal year ending June 30, 2022, or June 30, 2023, respectively. 
1.28 	"The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The biennium" 
1.29 	is fiscal years 2022 and 2023.

2.1				APPROPRIATIONS
	
2.2				Available for the Year
	
2.3				Ending June 30
	
2.4					2022
		2023

2.5
2.6	Sec. 2. MINNESOTA OFFICE OF HIGHER 
EDUCATION

2.7	Subdivision 1.Total Appropriation
 	$
	271,702,000
	$
	274,269,000
	
2.8 	The amounts that may be spent for each 
2.9 	purpose are specified in the following 
2.10 	subdivisions.

2.11	Subd. 2.State Grants
 		210,037,000
		210,037,000
	
2.12 	If the appropriation in this subdivision for 
2.13 	either year is insufficient, the appropriation 
2.14 	for the other year is available for it.

2.15	Subd. 3.Child Care Grants
 		6,694,000
		6,694,000

2.16	Subd. 4.State Work-Study
 		14,502,000
		14,502,000

2.17	Subd. 5.Interstate Tuition Reciprocity
 		8,500,000
		8,500,000
	
2.18 	If the appropriation in this subdivision for 
2.19 	either year is insufficient, the appropriation 
2.20 	for the other year is available to meet 
2.21 	reciprocity contract obligations.

2.22	Subd. 6.Safety Officer's Survivors
 		100,000
		100,000
	
2.23 	This appropriation is to provide educational 
2.24 	benefits under Minnesota Statutes, section 
2.25 	299A.45, to eligible dependent children and 
2.26 	to the spouses of public safety officers killed 
2.27 	in the line of duty.
2.28 	If the appropriation in this subdivision for 
2.29 	either year is insufficient, the appropriation 
2.30 	for the other year is available for it.

2.31	Subd. 7.American Indian Scholarships
 		3,500,000
		3,500,000
	
2.32 	The commissioner must contract with or 
2.33 	employ at least one person with demonstrated 
3.1 	competence in American Indian culture and 
3.2 	residing in or near the city of Bemidji to assist 
3.3 	students with the scholarships under 
3.4 	Minnesota Statutes, section 136A.126, and 
3.5 	with other information about financial aid for 
3.6 	which the students may be eligible. Bemidji 
3.7 	State University must provide office space at 
3.8 	no cost to the Office of Higher Education for 
3.9 	purposes of administering the American Indian 
3.10 	scholarship program under Minnesota Statutes, 
3.11 	section 136A.126. This appropriation includes 
3.12 	funding to administer the American Indian 
3.13 	scholarship program.

3.14	Subd. 8.Tribal College Grants
 		150,000
		150,000
	
3.15 	For Tribal college assistance grants under 
3.16 	Minnesota Statutes, section 136A.1796.

3.17
3.18	Subd. 9.Intervention for College Attendance 
Program Grants
 		1,143,000
		1,142,000
	
3.19 	For the intervention for college attendance 
3.20 	program under Minnesota Statutes, section 
3.21 	136A.861.
3.22 	The commissioner may use no more than three 
3.23 	percent of this appropriation to administer the 
3.24 	intervention for college attendance program 
3.25 	grants.

3.26	Subd. 10.Student-Parent Information
 		122,000
		122,000

3.27	Subd. 11.Get Ready!
 		180,000
		180,000

3.28
3.29	Subd. 12.Minnesota Education Equity 
Partnership
 		45,000
		45,000

3.30	Subd. 13.Midwest Higher Education Compact
 		115,000
		115,000

3.31
3.32	Subd. 14.United Family Medicine Residency 
Program
 		501,000
		501,000
	
3.33 	For a grant to United Family Medicine 
3.34 	residency program. This appropriation shall 
4.1 	be used to support up to 21 resident physicians 
4.2 	each year in family practice at United Family 
4.3 	Medicine residency programs and shall 
4.4 	prepare doctors to practice family care 
4.5 	medicine in underserved rural and urban areas 
4.6 	of the state. It is intended that this program 
4.7 	will improve health care in underserved 
4.8 	communities, provide affordable access to 
4.9 	appropriate medical care, and manage the 
4.10 	treatment of patients in a cost-effective 
4.11 	manner.

4.12	Subd. 15.MnLINK Gateway and Minitex
 		5,905,000
		5,905,000

4.13
4.14	Subd. 16.Statewide Longitudinal Education 
Data System
 		1,782,000
		1,782,000

4.15	Subd. 17.Hennepin Healthcare
 		645,000
		645,000
	
4.16 	For transfer to Hennepin Healthcare for 
4.17 	graduate family medical education programs 
4.18 	at Hennepin Healthcare.

4.19	Subd. 18.College Possible
 		550,000
		550,000
	
4.20 	(a) This appropriation is for immediate transfer 
4.21 	to College Possible to support programs of 
4.22 	college admission and college graduation for 
4.23 	low-income students through an intensive 
4.24 	curriculum of coaching and support at both 
4.25 	the high school and postsecondary levels.
4.26 	(b) This appropriation must, to the extent 
4.27 	possible, be proportionately allocated between 
4.28 	students from greater Minnesota and students 
4.29 	in the seven-county metropolitan area.
4.30 	(c) This appropriation must be used by College 
4.31 	Possible only for programs supporting students 
4.32 	who are residents of Minnesota and attending 
4.33 	colleges or universities within Minnesota.
5.1 	(d) By February 1 of each year, College 
5.2 	Possible must report to the chairs and ranking 
5.3 	minority members of the legislative 
5.4 	committees and divisions with jurisdiction 
5.5 	over higher education and E-12 education on 
5.6 	activities funded by this appropriation. The 
5.7 	report must include but is not limited to 
5.8 	information about the work of College 
5.9 	Possible Minnesota throughout the state; the 
5.10 	number of College Possible coaches hired; the 
5.11 	number of existing partner high schools; the 
5.12 	geographic distribution of participants; the 
5.13 	number of high school and college students 
5.14 	specifically supported by the appropriations 
5.15 	funds; the percentages of students who applied 
5.16 	to college, were admitted into college, and 
5.17 	enrolled in college from the previous program 
5.18 	year; the number of college graduates 
5.19 	supported by the appropriation funding in the 
5.20 	previous program year; and a list of all 
5.21 	communities and partner institutions 
5.22 	benefiting from coaching and support through 
5.23 	College Possible programming.

5.24
5.25	Subd. 19.Spinal Cord Injury and Traumatic 
Brain Injury Research Grant Program
 		3,000,000
		3,000,000
	
5.26 	For transfer to the spinal cord and traumatic 
5.27 	brain injury grant account in the special 
5.28 	revenue fund under Minnesota Statutes, 
5.29 	section 136A.901, subdivision 1.
5.30 	The commissioner may use no more than three 
5.31 	percent of the amount transferred under this 
5.32 	subdivision to administer the grant program.

5.33
5.34	Subd. 20.Summer Academic Enrichment 
Program
 		250,000
		250,000
	
6.1 	For summer academic enrichment grants under 
6.2 	Minnesota Statutes, section 136A.091.
6.3 	The commissioner may use no more than three 
6.4 	percent of this appropriation to administer the 
6.5 	grant program under this subdivision.

6.6
6.7	Subd. 21.Dual Training Competency Grants; 
Office of Higher Education
 		2,000,000
		2,000,000
	
6.8 	For transfer to the Dual Training Competency 
6.9 	Grants account in the special revenue fund 
6.10 	under Minnesota Statutes, section 136A.246, 
6.11 	subdivision 10.

6.12	Subd. 22.Campus Sexual Assault Reporting
 		25,000
		25,000
	
6.13 	For the sexual assault reporting required under 
6.14 	Minnesota Statutes, section 135A.15.

6.15
6.16	Subd. 23.Campus Sexual Violence Prevention 
and Response Coordinator
 		150,000
		150,000
	
6.17 	For the Office of Higher Education to staff a 
6.18 	campus sexual violence prevention and 
6.19 	response coordinator to serve as a statewide 
6.20 	resource providing professional development 
6.21 	and guidance on best practices for 
6.22 	postsecondary institutions. $50,000 each year 
6.23 	is for administrative funding to conduct 
6.24 	trainings and provide materials to 
6.25 	postsecondary institutions.

6.26
6.27	Subd. 24.Emergency Assistance for 
Postsecondary Students
 		269,000
		269,000
	
6.28 	(a) This appropriation is for the Office of 
6.29 	Higher Education to allocate grant funds on a 
6.30 	matching basis to eligible institutions as 
6.31 	defined under Minnesota Statutes, section 
6.32 	136A.103, located in Minnesota with a 
6.33 	demonstrable homeless student population.
7.1 	(b) This appropriation shall be used to meet 
7.2 	immediate student needs that could result in 
7.3 	a student not completing the term or their 
7.4 	program including, but not limited to, 
7.5 	emergency housing, food, and transportation. 
7.6 	Institutions shall minimize any negative 
7.7 	impact on student financial aid resulting from 
7.8 	the receipt of emergency funds.
7.9 	(c) The commissioner shall determine the 
7.10 	application process and the grant amounts. 
7.11 	The Office of Higher Education shall partner 
7.12 	with interested postsecondary institutions, 
7.13 	other state agencies, and student groups to 
7.14 	establish the programs.
7.15 	(d) The base for this appropriation is $319,000 
7.16 	in fiscal year 2024 and later.

7.17
7.18	Subd. 25.Grants to Student Teachers in 
Shortage Areas
 		500,000
		500,000
	
7.19 	For grants to student teachers in shortage areas 
7.20 	under Minnesota Statutes, section 136A.1275.
7.21 	The commissioner may use no more than three 
7.22 	percent of the appropriation for administration 
7.23 	of the program.

7.24
7.25	Subd. 26.Grants to Underrepresented Student 
Teachers
 		1,000,000
		1,000,000
	
7.26 	For grants to underrepresented student teachers 
7.27 	under Minnesota Statutes, section 136A.1274.
7.28 	The commissioner may use no more than three 
7.29 	percent of the appropriation for administration 
7.30 	of the program.
7.31 	The base for this appropriation is $1,125,000 
7.32 	in fiscal year 2024 and later.

7.33	Subd. 27.Teacher Shortage Loan Repayment
 		200,000
		200,000
	
8.1 	For transfer to the teacher shortage loan 
8.2 	repayment account in the special revenue fund 
8.3 	under Minnesota Statutes, section 136A.1791, 
8.4 	subdivision 8.
8.5 	The commissioner may use no more than three 
8.6 	percent of the amount transferred under this 
8.7 	subdivision to administer the program.

8.8
8.9	Subd. 28.Large Animal Veterinarian Loan 
Forgiveness Program
 		375,000
		375,000
	
8.10 	For transfer to the large animal veterinarian 
8.11 	loan forgiveness program account in the 
8.12 	special revenue fund under Minnesota 
8.13 	Statutes, section 136A.1795, subdivision 2.

8.14
8.15	Subd. 29.Agricultural Educators Loan 
Forgiveness
 		50,000
		50,000
	
8.16 	For transfer to the agricultural education loan 
8.17 	forgiveness account in the special revenue 
8.18 	fund under Minnesota Statutes, section 
8.19 	136A.1794, subdivision 2.

8.20
8.21	Subd. 30.Aviation Degree Loan Forgiveness 
Program
 		25,000
		25,000
	
8.22 	For transfer to the aviation degree loan 
8.23 	forgiveness program account in the special 
8.24 	revenue fund under Minnesota Statutes, 
8.25 	section 136A.1789, subdivision 2.

8.26
8.27	Subd. 31.Grants for Students with Intellectual 
and Developmental Disabilities
 		200,000
		200,000
	
8.28 	For grants for students with intellectual and 
8.29 	developmental disabilities under Minnesota 
8.30 	Statutes, section 136A.1215.

8.31	Subd. 32.Loan Repayment Assistance Program
 		25,000
		25,000
	
8.32 	For a grant to the Loan Repayment Assistance 
8.33 	Program of Minnesota to provide education 
8.34 	debt relief to attorneys with full-time 
9.1 	employment providing legal advice or 
9.2 	representation to low-income clients or support 
9.3 	services for this work.

9.4
9.5	Subd. 33.Minnesota Independence College and 
Community
 		1,250,000
		1,250,000
	
9.6 	For a grant to Minnesota Independence 
9.7 	College and Community for need-based 
9.8 	scholarships and tuition reduction. Beginning 
9.9 	with students first enrolled in the fall of 2019, 
9.10 	eligibility is limited to resident students as 
9.11 	defined in Minnesota Statutes, section 
9.12 	136A.101, subdivision 8.
9.13 	The base for this appropriation is $1,000,000 
9.14 	in fiscal year 2024 and later.

9.15	Subd. 34.Student Loan Debt Counseling
 		200,000
		200,000
	
9.16 	For student loan debt counseling under 
9.17 	Minnesota Statutes, section 136A.1788.
9.18 	The Office of Higher Education may use no 
9.19 	more than three percent of the appropriation 
9.20 	to administer the student loan debt counseling 
9.21 	program.

9.22	Subd. 35.Hunger-Free Campus Grants
 		205,000
		102,000
	
9.23 	For the Office of Higher Education to provide 
9.24 	initial and sustaining grants to Minnesota 
9.25 	public postsecondary institutions and Tribal 
9.26 	colleges under Minnesota Statutes, section 
9.27 	136F.245, subdivision 4, to meet and maintain 
9.28 	the criteria in that same section to address food 
9.29 	insecurity on campus.

9.30
9.31	Subd. 36.Fostering Independence Higher 
Education Grants
 		238,000
		3,759,000
	
9.32 	For grants to eligible students under Minnesota 
9.33 	Statutes, section 136A.1241. Of this amount, 
9.34 	$238,000 in the first year is for administration 
10.1 	costs. The base for fiscal year 2024 and later 
10.2 	is $3,761,000.

10.3	Subd. 37.Concurrent Enrollment Grants
 		340,000
		340,000
	
10.4 	For concurrent enrollment grants under 
10.5 	Minnesota Statutes, section 136A.91.

10.6
10.7	Subd. 38.Aspiring Teachers of Color 
Scholarship Pilot Program
 		1,500,000
		1,500,000
	
10.8 	(a) This appropriation is for the aspiring 
10.9 	teachers of color scholarship pilot program 
10.10 	under article 2, section 45.
10.11 	(b) The commissioner of the Office of Higher 
10.12 	Education may use no more than three percent 
10.13 	of the appropriation to administer the aspiring 
10.14 	teachers of color scholarship program.
10.15 	(c) This is a onetime appropriation. The base 
10.16 	for this appropriation is $0 in fiscal year 2024 
10.17 	and later. Notwithstanding Minnesota Statutes, 
10.18 	section 16A.28, unencumbered balances under 
10.19 	this subdivision do not cancel until July 1, 
10.20 	2025.

10.21	Subd. 39.Direct Admissions
 		925,000
		75,000
	
10.22 	For the direct admissions pilot program in 
10.23 	article 2, section 42.

10.24	Subd. 40.Agency Administration
 		4,504,000
		4,504,000

10.25	Subd. 41.Balances Forward
 					
10.26 	A balance in the first year under this section 
10.27 	does not cancel, but is available for the second 
10.28 	year.

10.29	Subd. 42.Transfers
 					
10.30 	The commissioner of the Office of Higher 
10.31 	Education may transfer unencumbered 
10.32 	balances from the appropriations in this 
11.1 	section to the state grant appropriation, the 
11.2 	interstate tuition reciprocity appropriation, the 
11.3 	child care grant appropriation, the Indian 
11.4 	scholarship appropriation, the state work-study 
11.5 	appropriation, the get ready appropriation, the 
11.6 	intervention for college attendance 
11.7 	appropriation, the student-parent information 
11.8 	appropriation, the summer academic 
11.9 	enrichment program appropriation, the public 
11.10 	safety officers' survivors appropriation, and 
11.11 	the fostering independence higher education 
11.12 	grant program. The commissioner may transfer 
11.13 	unencumbered balances from the hunger-free 
11.14 	campus appropriations to the emergency 
11.15 	assistance for postsecondary students grant. 
11.16 	To the extent there is a projected surplus in 
11.17 	the appropriation for either the student 
11.18 	teachers in shortage areas grant program or 
11.19 	the underrepresented student teacher grant 
11.20 	program, the commissioner may transfer 
11.21 	unencumbered balances between the two 
11.22 	programs as needed to meet demand. Transfers 
11.23 	from the child care, state work-study, or the 
11.24 	hunger-free campus appropriations may only 
11.25 	be made to the extent there is a projected 
11.26 	surplus in the appropriation. A transfer may 
11.27 	be made only with prior written notice to the 
11.28 	chairs and ranking minority members of the 
11.29 	senate and house of representatives 
11.30 	committees with jurisdiction over higher 
11.31 	education finance.

11.32
11.33
11.34	Sec. 3. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

11.35	Subdivision 1.Total Appropriation
 	$
	791,992,000
	$
	789,491,000
	
12.1 	The amounts that may be spent for each 
12.2 	purpose are specified in the following 
12.3 	subdivisions.

12.4
12.5	Subd. 2.Central Office and Shared Services 
Unit
 		34,082,000
		34,081,000
	
12.6 	For the Office of the Chancellor and the 
12.7 	Shared Services Division.
12.8 	The base for this appropriation in fiscal year 
12.9 	2024 and later is $34,401,000.

12.10	Subd. 3.Operations and Maintenance
 		753,795,000
		751,295,000
	
12.11 	(a) The Board of Trustees must establish 
12.12 	tuition rates as follows:
12.13 	(1) for the 2021-2022 and 2022-2023 
12.14 	academic years, tuition rates for undergraduate 
12.15 	students at colleges and universities must not 
12.16 	be increased by more than 3.5 percent as 
12.17 	compared to the previous academic year, 
12.18 	except that a university may change base 
12.19 	tuition to adjust for the reduction of online 
12.20 	differential charges provided the change is 
12.21 	revenue-neutral; and
12.22 	(2) the student tuition relief may not be offset 
12.23 	by increases in mandatory fees, charges, or 
12.24 	other assessments to the student. Colleges and 
12.25 	universities are permitted to increase 
12.26 	differential tuition charges in fiscal years 2022 
12.27 	and 2023 where costs for course or program 
12.28 	delivery have increased due to extraordinary 
12.29 	circumstances beyond the control of the 
12.30 	college or university. Rates and rationale must 
12.31 	be approved by the Board of Trustees.
12.32 	(b) The Board of Trustees must request 
12.33 	guidance from the United States Department 
12.34 	of Education regarding whether it is 
13.1 	permissible to allocate federal funds received 
13.2 	under section 314 of the Consolidated 
13.3 	Appropriations Act, 2021, as provided by 
13.4 	Public Law 116-260, and section 2003 of the 
13.5 	American Rescue Plan Act, as provided by 
13.6 	Public Law 117-2, to provide a tuition credit 
13.7 	for enrolled students or refund for students 
13.8 	who are no longer enrolled in an amount equal 
13.9 	to the amount of the online differential tuition 
13.10 	rate charged to students for courses moved 
13.11 	online due to the coronavirus pandemic during 
13.12 	the 2020-2021 academic year that were not 
13.13 	offered as online courses during the previous 
13.14 	academic year. If the department advises that 
13.15 	this is a permissible use of the federal funds, 
13.16 	institutions must issue such tuition credits to 
13.17 	enrolled students and must inform students 
13.18 	who are no longer enrolled in the institution 
13.19 	of their eligibility for a refund. In order to 
13.20 	receive a refund, the student must apply for 
13.21 	the refund.
13.22 	(c) $5,700,000 in fiscal year 2022 and 
13.23 	$5,700,000 in fiscal year 2023 are to provide 
13.24 	supplemental aid for operations and 
13.25 	maintenance to the president of each two-year 
13.26 	institution in the system with at least one 
13.27 	campus that is not located in a metropolitan 
13.28 	county, as defined in Minnesota Statutes, 
13.29 	section 473.121, subdivision 4. The board 
13.30 	shall transfer at least $158,000 for each 
13.31 	campus not located in a metropolitan county 
13.32 	in each year to the president of each institution 
13.33 	that includes such a campus.
13.34 	(d) The Board of Trustees is requested to help 
13.35 	Minnesota close the attainment gap by funding 
14.1 	activities which improve retention and 
14.2 	completion for students of color.
14.3 	(e) $4,500,000 in fiscal year 2022 and 
14.4 	$4,500,000 in fiscal year 2023 are for 
14.5 	workforce development scholarships under 
14.6 	Minnesota Statutes, section 136F.38.
14.7 	(f) $300,000 in fiscal year 2022 and $300,000 
14.8 	in fiscal year 2023 are for transfer to the Cook 
14.9 	County Higher Education Board to provide 
14.10 	educational programming, workforce 
14.11 	development, and academic support services 
14.12 	to remote regions in northeastern Minnesota. 
14.13 	The Cook County Higher Education Board 
14.14 	shall continue to provide information to the 
14.15 	Board of Trustees on the number of students 
14.16 	served, credit hours delivered, and services 
14.17 	provided to students.
14.18 	(g) This appropriation includes $40,000 in 
14.19 	fiscal year 2022 and $40,000 in fiscal year 
14.20 	2023 to implement the sexual assault policies 
14.21 	required under Minnesota Statutes, section 
14.22 	135A.15.
14.23 	(h) This appropriation includes $8,000,000 in 
14.24 	fiscal year 2022 and $8,000,000 in fiscal year 
14.25 	2023 for upgrading the Integrated Statewide 
14.26 	Record System.
14.27 	(i) This appropriation includes $250,000 in 
14.28 	fiscal year 2022 and $250,000 in fiscal year 
14.29 	2023 to implement the Z-Degree program 
14.30 	under Minnesota Statutes, section 136F.305. 
14.31 	The base for this appropriation is $50,000 in 
14.32 	fiscal year 2024 and later.
14.33 	(j) $1,500,000 in fiscal year 2022 is for the 
14.34 	mental health awareness program for students 
15.1 	required under Minnesota Statutes, section 
15.2 	136F.20, subdivision 4. Of this amount: 
15.3 	$500,000 must be used for training 
15.4 	opportunities under Minnesota Statutes, 
15.5 	section 136F.20, subdivision 4, paragraph (a), 
15.6 	clause (2); and $200,000 must be used for 
15.7 	grants to colleges and universities to establish 
15.8 	peer support pilot programs in Minnesota 
15.9 	Statutes, section 136F.20, subdivision 4, 
15.10 	paragraph (c). The Board of Trustees shall 
15.11 	convene a committee that includes students to 
15.12 	review and approve grant applications. 
15.13 	Notwithstanding Minnesota Statutes, section 
15.14 	16A.28, unencumbered balances under this 
15.15 	paragraph do not cancel until July 1, 2025.
15.16 	(k) $1,000,000 in fiscal year 2022 is for 
15.17 	colleges and universities to comply with the 
15.18 	student basic needs requirements under 
15.19 	Minnesota Statutes, section 136F.202. The 
15.20 	Board of Trustees must use at least 25 percent 
15.21 	of this appropriation for grants to colleges and 
15.22 	universities to comply with Minnesota 
15.23 	Statutes, section 136F.202, subdivision 1, 
15.24 	paragraph (a). The board must use a 
15.25 	consultation and committee process that 
15.26 	includes students to review and approve grant 
15.27 	applications. Notwithstanding Minnesota 
15.28 	Statutes, section 16A.28, unencumbered 
15.29 	balances under this paragraph do not cancel 
15.30 	until July 1, 2025.
15.31 	(l) The total operations and maintenance base 
15.32 	for fiscal year 2024 and later is $751,095,000.

15.33	Subd. 4.Learning Network of Minnesota
 		4,115,000
		4,115,000

15.34
15.35	Sec. 4. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

16.1	Subdivision 1.Total Appropriation
 	$
	692,813,000
	$
	692,813,000

16.2	Appropriations by Fund
	
16.3		2022
	2023
	
16.4	General
	690,656,000
	690,656,000
	
16.5	Health Care Access
	2,157,000
	2,157,000
	
16.6 	The amounts that may be spent for each 
16.7 	purpose are specified in the following 
16.8 	subdivisions.

16.9	Subd. 2.Operations and Maintenance
 		621,968,000
		621,968,000
	
16.10 	(a) $15,000,000 in fiscal year 2022 and 
16.11 	$15,000,000 in fiscal year 2023 are to: (1) 
16.12 	increase the medical school's research 
16.13 	capacity; (2) improve the medical school's 
16.14 	ranking in National Institutes of Health 
16.15 	funding; (3) ensure the medical school's 
16.16 	national prominence by attracting and 
16.17 	retaining world-class faculty, staff, and 
16.18 	students; (4) invest in physician training 
16.19 	programs in rural and underserved 
16.20 	communities; and (5) translate the medical 
16.21 	school's research discoveries into new 
16.22 	treatments and cures to improve the health of 
16.23 	Minnesotans.
16.24 	(b) $7,800,000 in fiscal year 2022 and 
16.25 	$7,800,000 in fiscal year 2023 are for health 
16.26 	training restoration. This appropriation must 
16.27 	be used to support all of the following: (1) 
16.28 	faculty physicians who teach at eight residency 
16.29 	program sites, including medical resident and 
16.30 	student training programs in the Department 
16.31 	of Family Medicine; (2) the Mobile Dental 
16.32 	Clinic; and (3) expansion of geriatric 
16.33 	education and family programs.
17.1 	(c) $4,000,000 in fiscal year 2022 and 
17.2 	$4,000,000 in fiscal year 2023 are for the 
17.3 	Minnesota Discovery, Research, and 
17.4 	InnoVation Economy funding program for 
17.5 	cancer care research.
17.6 	(d) $500,000 in fiscal year 2022 and $500,000 
17.7 	in fiscal year 2023 are for the University of 
17.8 	Minnesota, Morris branch, to cover the costs 
17.9 	of tuition waivers under Minnesota Statutes, 
17.10 	section 137.16.
17.11 	(e) $150,000 in fiscal year 2022 and $150,000 
17.12 	in fiscal year 2023 are for the Chloe Barnes 
17.13 	Advisory Council on Rare Diseases under 
17.14 	Minnesota Statutes, section 137.68. The base 
17.15 	for this appropriation is $0 in fiscal year 2024 
17.16 	and later.
17.17 	(f) The total operations and maintenance base 
17.18 	for fiscal year 2024 and later is $620,818,000.

17.19	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
17.20 	This appropriation is from the health care 
17.21 	access fund.

17.22	Subd. 4.Special Appropriations

17.23	(a) Agriculture and Extension Service
		42,922,000
		42,922,000
	
17.24 	For the Agricultural Experiment Station and 
17.25 	the Minnesota Extension Service:
17.26 	(1) the agricultural experiment stations and 
17.27 	Minnesota Extension Service must convene 
17.28 	agricultural advisory groups to focus research, 
17.29 	education, and extension activities on producer 
17.30 	needs and implement an outreach strategy that 
17.31 	more effectively and rapidly transfers research 
17.32 	results and best practices to producers 
17.33 	throughout the state;
18.1 	(2) this appropriation includes funding for 
18.2 	research and outreach on the production of 
18.3 	renewable energy from Minnesota biomass 
18.4 	resources, including agronomic crops, plant 
18.5 	and animal wastes, and native plants or trees. 
18.6 	The following areas should be prioritized and 
18.7 	carried out in consultation with Minnesota 
18.8 	producers, renewable energy, and bioenergy 
18.9 	organizations:
18.10 	(i) biofuel and other energy production from 
18.11 	perennial crops, small grains, row crops, and 
18.12 	forestry products in conjunction with the 
18.13 	Natural Resources Research Institute (NRRI);
18.14 	(ii) alternative bioenergy crops and cropping 
18.15 	systems; and
18.16 	(iii) biofuel coproducts used for livestock feed;
18.17 	(3) this appropriation includes funding for the 
18.18 	College of Food, Agricultural, and Natural 
18.19 	Resources Sciences to establish and provide 
18.20 	leadership for organic agronomic, 
18.21 	horticultural, livestock, and food systems 
18.22 	research, education, and outreach and for the 
18.23 	purchase of state-of-the-art laboratory, 
18.24 	planting, tilling, harvesting, and processing 
18.25 	equipment necessary for this project;
18.26 	(4) this appropriation includes funding for 
18.27 	research efforts that demonstrate a renewed 
18.28 	emphasis on the needs of the state's agriculture 
18.29 	community. The following areas should be 
18.30 	prioritized and carried out in consultation with 
18.31 	Minnesota farm organizations:
18.32 	(i) vegetable crop research with priority for 
18.33 	extending the Minnesota vegetable growing 
18.34 	season;
19.1 	(ii) fertilizer and soil fertility research and 
19.2 	development;
19.3 	(iii) soil, groundwater, and surface water 
19.4 	conservation practices and contaminant 
19.5 	reduction research;
19.6 	(iv) discovering and developing plant varieties 
19.7 	that use nutrients more efficiently;
19.8 	(v) breeding and development of turf seed and 
19.9 	other biomass resources in all three Minnesota 
19.10 	biomes;
19.11 	(vi) development of new disease-resistant and 
19.12 	pest-resistant varieties of turf and agronomic 
19.13 	crops;
19.14 	(vii) utilizing plant and livestock cells to treat 
19.15 	and cure human diseases;
19.16 	(viii) the development of dairy coproducts;
19.17 	(ix) a rapid agricultural response fund for 
19.18 	current or emerging animal, plant, and insect 
19.19 	problems affecting production or food safety;
19.20 	(x) crop pest and animal disease research;
19.21 	(xi) developing animal agriculture that is 
19.22 	capable of sustainably feeding the world;
19.23 	(xii) consumer food safety education and 
19.24 	outreach;
19.25 	(xiii) programs to meet the research and 
19.26 	outreach needs of organic livestock and crop 
19.27 	farmers; and
19.28 	(xiv) alternative bioenergy crops and cropping 
19.29 	systems; and growing, harvesting, and 
19.30 	transporting biomass plant material; and
19.31 	(5) by February 1, 2023, the Board of Regents 
19.32 	must submit a report to the legislative 
20.1 	committees and divisions with jurisdiction 
20.2 	over agriculture and higher education finance 
20.3 	on the status and outcomes of research and 
20.4 	initiatives funded in this paragraph.

20.5	(b) Health Sciences
		9,204,000
		9,204,000
	
20.6 	$346,000 each year is to support up to 12 
20.7 	resident physicians in the St. Cloud Hospital 
20.8 	family practice residency program. The 
20.9 	program must prepare doctors to practice 
20.10 	primary care medicine in rural areas of the 
20.11 	state. The legislature intends this program to 
20.12 	improve health care in rural communities, 
20.13 	provide affordable access to appropriate 
20.14 	medical care, and manage the treatment of 
20.15 	patients in a more cost-effective manner. The 
20.16 	remainder of this appropriation is for the rural 
20.17 	physicians associates program; the Veterinary 
20.18 	Diagnostic Laboratory; health sciences 
20.19 	research; dental care; the Biomedical 
20.20 	Engineering Center; and the collaborative 
20.21 	partnership between the University of 
20.22 	Minnesota and Mayo Clinic for regenerative 
20.23 	medicine, research, clinical translation, and 
20.24 	commercialization.

20.25	(c) College of Science and Engineering
		1,140,000
		1,140,000
	
20.26 	For the geological survey and the talented 
20.27 	youth mathematics program.

20.28	(d) System Special
		7,431,000
		7,431,000
	
20.29 	For general research, the Labor Education 
20.30 	Service, Natural Resources Research Institute, 
20.31 	Center for Urban and Regional Affairs, Bell 
20.32 	Museum of Natural History, and the 
20.33 	Humphrey exhibit.
21.1 	$2,250,000 in fiscal year 2022 and $2,250,000 
21.2 	in fiscal year 2023 are for the Natural 
21.3 	Resources Research Institute to invest in 
21.4 	applied research for economic development.
21.5 	The base for this appropriation is $7,181,000 
21.6 	in fiscal year 2024 and later and, of this 
21.7 	amount, $2,000,000 per fiscal year is for the 
21.8 	Natural Resources Research Institute to invest 
21.9 	in applied research for economic development.

21.10
21.11	(e) University of Minnesota and Mayo 
Foundation Partnership
		7,991,000
		7,991,000
	
21.12 	This appropriation is for the following 
21.13 	activities:
21.14 	(1) $7,491,000 in fiscal year 2022 and 
21.15 	$7,491,000 in fiscal year 2023 are for the 
21.16 	direct and indirect expenses of the 
21.17 	collaborative research partnership between the 
21.18 	University of Minnesota and the Mayo 
21.19 	Foundation for research in biotechnology and 
21.20 	medical genomics. An annual report on the 
21.21 	expenditure of these funds must be submitted 
21.22 	to the governor and the chairs of the legislative 
21.23 	committees responsible for higher education 
21.24 	finance by June 30 of each fiscal year.
21.25 	(2) $500,000 in fiscal year 2022 and $500,000 
21.26 	in fiscal year 2023 are to award competitive 
21.27 	grants to conduct research into the prevention, 
21.28 	treatment, causes, and cures of Alzheimer's 
21.29 	disease and other dementias.

21.30	Subd. 5.Academic Health Center
 					
21.31 	The appropriation for Academic Health Center 
21.32 	funding under Minnesota Statutes, section 
21.33 	297F.10, is estimated to be $22,250,000 each 
21.34 	year.

22.1	Sec. 5. MAYO CLINIC

22.2	Subdivision 1.Total Appropriation
 	$
	1,351,000
	$
	1,351,000
	
22.3 	The amounts that may be spent are specified 
22.4 	in the following subdivisions.

22.5	Subd. 2.Medical School
 		665,000
		665,000
	
22.6 	The state must pay a capitation each year for 
22.7 	each student who is a resident of Minnesota. 
22.8 	The appropriation may be transferred between 
22.9 	each year of the biennium to accommodate 
22.10 	enrollment fluctuations. It is intended that 
22.11 	during the biennium the Mayo Clinic use the 
22.12 	capitation money to increase the number of 
22.13 	doctors practicing in rural areas in need of 
22.14 	doctors.

22.15
22.16	Subd. 3.Family Practice and Graduate 
Residency Program
 		686,000
		686,000
	
22.17 	The state must pay stipend support for up to 
22.18 	27 residents each year.

22.19 	Sec. 6. CANCELLATIONS; FISCAL YEAR 2021.
 22.20 	(a) $340,000 of the fiscal year 2021 general fund appropriation under Laws 2019, chapter 
22.21 	64, article 1, section 2, subdivisions 11, 25, and 26, is canceled.
22.22 	(b) $5,000,000 of the fiscal year 2021 general fund appropriation under Laws 2019, 
22.23 	chapter 64, article 1, section 2, subdivision 2, is canceled.
22.24 	(c) This section is effective the day following final enactment.

22.25 	Sec. 7. Laws 2014, chapter 312, article 1, section 4, subdivision 2, is amended to read:

22.26	Subd. 2.Health Sciences Special
 				4,500,000
	
22.27 	(a) This appropriation is from the general fund 
22.28 	for the direct and indirect expenses of the 
22.29 	collaborative partnership between the 
22.30 	Univerity University of Minnesota and the 
22.31 	Mayo Clinic for regenerative medicine 
23.1 	research, clinical translation, and 
23.2 	commercialization. In addition to 
23.3 	representatives from the University of 
23.4 	Minnesota and the Mayo Clinic, the 
23.5 	collaborative partnership must include 
23.6 	representatives of private industry and others 
23.7 	with expertise in regenerative medicine 
23.8 	research, clinical translation, 
23.9 	commercialization, and medical venture 
23.10 	financing who are not affiliated with either 
23.11 	the University of Minnesota or the Mayo 
23.12 	Clinic.
23.13 	(b) By January 15 of each odd-numbered year 
23.14 	beginning in 2017, the partnership must 
23.15 	submit an independent financial audit to the 
23.16 	chairs and ranking minority members of the 
23.17 	committees of the house of representatives 
23.18 	and senate having jurisdiction over higher 
23.19 	education and economic development. The 
23.20 	audit must include the names of all recipients 
23.21 	of grants awarded by the partnership and their 
23.22 	affiliation, if any, with the University of 
23.23 	Minnesota or the Mayo Clinic.
23.24 	(c) The full amount of this appropriation is for 
23.25 	the partnership and may not be used by the 
23.26 	University of Minnesota for administrative or 
23.27 	monitoring expenses.
23.28 	(d) For fiscal year 2016 and thereafter, the 
23.29 	base for this program is $4,350,000.
23.30 	(e) All grants awarded with funding provided 
23.31 	by an appropriation to this program must be 
23.32 	for a regenerative medicine development 
23.33 	project, defined as any research, product 
23.34 	development, or commercial venture relating 
23.35 	to basic, preclinical, or clinical work to 
24.1 	produce a drug, biological or chemical 
24.2 	material, compound, or medical device 
24.3 	designed to augment, repair, replace, or 
24.4 	regenerate organs and tissue that have been 
24.5 	damaged by disease, injury, aging, or other 
24.6 	biological processes.

24.7 	ARTICLE 2
24.8 	HIGHER EDUCATION PROVISIONS

24.9 	Section 1. [136A.057] STUDENT TRANSFER REPORTING.
24.10 	(a) The commissioner must report on the office's website summary data on students 
24.11 	who, within the most recent academic year, withdrew from enrollment without completing 
24.12 	a degree or credential program at a public postsecondary institution in Minnesota. The 
24.13 	summary data must include whether the students who withdrew transferred to another 
24.14 	institution and the institutions transferred to and from.
24.15 	(b) Summary data must be aggregated by postsecondary institution and degree or 
24.16 	credential program. Summary data must be disaggregated by race, ethnicity, Pell eligibility, 
24.17 	and age.
24.18 	(c) The commissioner must post the initial data on the office's website on or before 
24.19 	February 15, 2022, and must update the data at least annually thereafter.

24.20 	Sec. 2. Minnesota Statutes 2020, section 136A.101, subdivision 5a, is amended to read:
24.21 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means the 
24.22 	amount of a family's contribution to a student's cost of attendance, as determined by a federal 
24.23 	need analysis. For dependent students, the assigned family responsibility is 82 79 percent 
24.24 	of the parental contribution. For independent students with dependents other than a spouse, 
24.25 	the assigned family responsibility is 74 71 percent of the student contribution. For 
24.26 	independent students without dependents other than a spouse, the assigned family 
24.27 	responsibility is 38 35 percent of the student contribution.

24.28 	Sec. 3. Minnesota Statutes 2020, section 136A.121, subdivision 2, is amended to read:
24.29 		Subd. 2.Eligibility for grants. (a) An applicant is eligible to be considered for a grant, 
24.30 	regardless of the applicant's sex, creed, race, color, national origin, or ancestry, under sections 
24.31 	136A.095 to 136A.131 if the office finds that the applicant:
25.1 	(1) is a resident of the state of Minnesota;
25.2 	(2) is a graduate of a secondary school or its equivalent, or is 17 years of age or over, 
25.3 	and has met all requirements for admission as a student to an eligible college or technical 
25.4 	college of choice as defined in sections 136A.095 to 136A.131;
25.5 	(3) has met the financial need criteria established in Minnesota Rules;
25.6 	(4) is not in default, as defined by the office, of any federal or state student educational 
25.7 	loan; and
25.8 	(5) is not more than 30 days in arrears in court-ordered child support that is collected or 
25.9 	enforced by the public authority responsible for child support enforcement or, if the applicant 
25.10 	is more than 30 days in arrears in court-ordered child support that is collected or enforced 
25.11 	by the public authority responsible for child support enforcement, but is complying with a 
25.12 	written payment agreement under section 518A.69 or order for arrearages.
25.13 	(b) A student who is entitled to an additional semester or the equivalent of grant eligibility 
25.14 	if the student withdraws from enrollment:
25.15 	(1) for active military service after December 31, 2002, because the student was ordered 
25.16 	to active military service as defined in section 190.05, subdivision 5b or 5c, or who withdraws 
25.17 	from enrollment;
25.18 	(2) for a major illness serious health condition, while under the care of a medical 
25.19 	professional, that substantially limits the student's ability to complete the term is entitled to 
25.20 	an additional semester or the equivalent of grant eligibility.; or
25.21 	(3) while providing care that substantially limits the student's ability to complete the 
25.22 	term to the student's spouse, child, or parent who has a serious health condition.

25.23 	Sec. 4. Minnesota Statutes 2020, section 136A.121, subdivision 6, is amended to read:
25.24 		Subd. 6.Cost of attendance. (a) The recognized cost of attendance consists of: (1) an 
25.25 	allowance specified in law for living and miscellaneous expenses, and (2) an allowance for 
25.26 	tuition and fees equal to the lesser of the average tuition and fees charged by the institution, 
25.27 	or a tuition and fee maximum if one is established in law. If no living and miscellaneous 
25.28 	expense allowance is established in law, the allowance is equal to 106 109 percent of the 
25.29 	federal poverty guidelines for a one person household in Minnesota for nine months. If no 
25.30 	tuition and fee maximum is established in law, the allowance for tuition and fees is equal 
25.31 	to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for 
25.32 	two-year programs, an amount equal to the highest tuition and fees charged at a public 
26.1 	two-year institution, or for four-year programs, an amount equal to the highest tuition and 
26.2 	fees charged at a public university.
26.3 	(b) For a student registering for less than full time, the office shall prorate the cost of 
26.4 	attendance to the actual number of credits for which the student is enrolled.
26.5 	(c) The recognized cost of attendance for a student who is confined to a Minnesota 
26.6 	correctional institution shall consist of the tuition and fee component in paragraph (a), with 
26.7 	no allowance for living and miscellaneous expenses.
26.8 	(d) For the purpose of this subdivision, "fees" include only those fees that are mandatory 
26.9 	and charged to full-time resident students attending the institution. Fees do not include 
26.10 	charges for tools, equipment, computers, or other similar materials where the student retains 
26.11 	ownership. Fees include charges for these materials if the institution retains ownership. Fees 
26.12 	do not include optional or punitive fees.

26.13 	Sec. 5. Minnesota Statutes 2020, section 136A.121, subdivision 9, is amended to read:
26.14 		Subd. 9.Awards. An undergraduate student who meets the office's requirements is 
26.15 	eligible to apply for and receive a grant in any year of undergraduate study unless the student 
26.16 	has obtained a baccalaureate degree or previously has been enrolled full time or the equivalent 
26.17 	for eight semesters or the equivalent, excluding (1) courses taken from a Minnesota school 
26.18 	or postsecondary institution which is not participating in the state grant program and from 
26.19 	which a student transferred no credit, and (2) courses taken that qualify as developmental 
26.20 	education or below college-level. A student enrolled in a two-year program at a four-year 
26.21 	institution is only eligible for the tuition and fee maximums established by law for two-year 
26.22 	institutions.

26.23 	Sec. 6. Minnesota Statutes 2020, section 136A.123, subdivision 1, is amended to read:
26.24 		Subdivision 1.Program administration. The commissioner of the Office of Higher 
26.25 	Education must, to the extent funds are available, administer a credential completion program 
26.26 	for adult learners consistent with this section.

26.27 	Sec. 7. [136A.1241] FOSTERING INDEPENDENCE HIGHER EDUCATION 
26.28 	GRANTS.
26.29 		Subdivision 1.Establishment. The office must establish a grant program for individuals 
26.30 	who satisfy the eligibility requirements under subdivision 3. Using available FAFSA or 
26.31 	other state aid data, the office shall identify and inform eligible individuals, and the 
26.32 	institutions for which the individuals have been accepted or are attending, of their eligibility 
27.1 	for the foster grant. This program is established to provide an individual who is currently 
27.2 	or was formerly in foster care with foster grants for up to five years for higher education 
27.3 	costs.
27.4 		Subd. 2.Definitions. (a) For purposes of this section, the terms in this subdivision have 
27.5 	the meanings given.
27.6 	(b) "Adoption" means adoption of an individual who has been in the care and custody 
27.7 	of a responsible social services agency or Tribal social services agency and in foster care.
27.8 	(c) "Eligible institution" means an eligible public institution or an eligible private 
27.9 	institution.
27.10 	(d) "Eligible private institution" or "private institution" means an institution eligible for 
27.11 	state student aid under section 136A.103, paragraph (a), clause (2).
27.12 	(e) "Eligible public institution" or "public institution" means an institution operated by 
27.13 	the Board of Trustees of the Minnesota State Colleges and Universities or the Board of 
27.14 	Regents of the University of Minnesota.
27.15 	(f) "Foster care" has the meaning given in section 260C.007, subdivision 18.
27.16 	(g) "Foster grant" means a grant under this section.
27.17 	(h) "Office" means the Office of Higher Education.
27.18 	(i) "Recognized cost of attendance" means the amount calculated under subdivision 4.
27.19 	(j) "Responsible social services agency" has the meaning given in section 260C.007, 
27.20 	subdivision 27a.
27.21 	(k) "Tribal social services agency" has the meaning given in section 260.755, subdivision 
27.22 	21.
27.23 		Subd. 3.Eligibility. (a) An individual who is eligible for the Education and Training 
27.24 	Voucher Program is eligible for a foster grant.
27.25 	(b) If the individual is not eligible for the Education and Training Voucher program, in 
27.26 	order to receive a foster grant, an individual must:
27.27 	(1) meet the definition of a resident student under section 136A.101, subdivision 8;
27.28 	(2) be at least 13 years of age but fewer than 27 years of age;
27.29 	(3) after the individual's 13th birthday, be in or have been in foster care in Minnesota 
27.30 	before, on, or after the effective date of this section, including any of the following:
28.1 	(i) placement in foster care at any time while 13 years of age or older;
28.2 	(ii) adoption from foster care at any time after reaching 13 years of age; or
28.3 	(iii) placement from foster care with a permanent legal custodian at any time after 
28.4 	reaching 13 years of age;
28.5 	(4) have graduated from high school or completed the equivalent as approved by the 
28.6 	Department of Education;
28.7 	(5) have been accepted for admission to, or be currently attending, an eligible institution;
28.8 	(6) have submitted a FAFSA; and
28.9 	(7) be meeting satisfactory academic progress as defined under section 136A.101, 
28.10 	subdivision 10.
28.11 		Subd. 4.Cost of attendance. (a) The recognized cost of attendance for a public institution 
28.12 	has the meaning in Code of Federal Regulations, title 20, chapter 28, subchapter IV, part 
28.13 	F, section 1087ll.
28.14 	(b) The recognized cost of attendance for a private institution equals the lesser of:
28.15 	(1) the cost of attendance for the institution as calculated under Code of Federal 
28.16 	Regulations, title 20, chapter 28, subchapter IV, part F, section 1087ll; or
28.17 	(2) for two-year programs, an amount equal to the highest recognized cost of attendance 
28.18 	charged at a public two-year institution, or for four-year programs, an amount equal to the 
28.19 	highest recognized cost of attendance at a public university.
28.20 		Subd. 5.Foster grant amount; payment; opt-out. (a) Each student shall be awarded 
28.21 	a foster grant based on the federal need analysis. Applicants are encouraged to apply for all 
28.22 	other sources of financial aid. The amount of the foster grant must be equal to the applicant's 
28.23 	recognized cost of attendance after deducting:
28.24 	(1) the student aid index as calculated by the federal need analysis;
28.25 	(2) the amount of a federal Pell Grant award for which the applicant is eligible;
28.26 	(3) the amount of the state grant;
28.27 	(4) the Federal Supplemental Educational Opportunity Grant;
28.28 	(5) the sum of all Tribal scholarships;
28.29 	(6) the amount of any other state and federal gift aid;
28.30 	(7) the Education and Training Voucher Program;
29.1 	(8) extended foster care benefits under section 260C.451;
29.2 	(9) the amount of any private grants or scholarships, excluding grants and scholarships 
29.3 	provided by the private institution of higher education in which the eligible student is 
29.4 	enrolled; and
29.5 	(10) for public institutions, the sum of all institutional grants, scholarships, tuition 
29.6 	waivers, and tuition remission amounts.
29.7 	(b) The foster grant shall be paid directly to the eligible institution where the student is 
29.8 	enrolled.
29.9 	(c) An eligible private institution may opt out of participating in the foster grant program 
29.10 	established under this section. To opt out, the institution shall provide notice to the office 
29.11 	by September 1 for the next academic year.
29.12 	(d) An eligible private institution that does not opt out under paragraph (c) and accepts 
29.13 	the student's application to attend the institution must provide institutional grants, 
29.14 	scholarships, tuition waivers, or tuition remission in an amount equal to the difference 
29.15 	between:
29.16 	(1) the institution's cost of attendance as calculated under subdivision 4, paragraph (b), 
29.17 	clause (1); and
29.18 	(2) the sum of the foster grant under this subdivision and the sum of the amounts in 
29.19 	paragraph (a), clauses (1) to (9).
29.20 	(e) An undergraduate student who is eligible may apply for and receive a foster grant 
29.21 	in any year of undergraduate study unless the student has obtained a baccalaureate degree 
29.22 	or previously has been enrolled full time as defined in section 136A.101, subdivision 7a, 
29.23 	or the equivalent for eight semesters or the equivalent, or received a foster grant for five 
29.24 	years, whichever occurs first. A foster grant must not be awarded to a student for more than 
29.25 	three years for a two-year degree, certificate, or diploma, or five years for a four-year 
29.26 	undergraduate degree.
29.27 	(f) Foster grants may be awarded to an eligible student for four quarters, three semesters, 
29.28 	or the equivalent during the course of a single fiscal year. In calculating the award amount, 
29.29 	the office must use the same calculation it would for any other term.
29.30 		Subd. 6.Dissemination of information. (a) The office shall, by September 1, 2022, 
29.31 	and September 1 each year thereafter, prepare and provide the information to be disseminated 
29.32 	by responsible social services agencies, Tribal social services agencies, the office, the 
29.33 	Department of Human Services, and eligible state and private institutions that:
30.1 	(1) describes the availability of the program established under this section;
30.2 	(2) explains how to participate in the program; and
30.3 	(3) includes information on all available federal and state grants identified under 
30.4 	subdivision 5.
30.5 	(b) The office shall maintain and annually update the list of eligible private institutions 
30.6 	that opt out under subdivision 5, paragraph (c), and post the list of the institutions on the 
30.7 	office's website.
30.8 		Subd. 7.Assistance from the Office of Higher Education. The office shall assist foster 
30.9 	grant applicants eligible under subdivision 3 by providing assistance in:
30.10 	(1) completing the foster grant application; and
30.11 	(2) accessing and applying for available federal and state financial aid resources under 
30.12 	subdivision 5.
30.13 		Subd. 8.Report. (a) The office shall prepare an anonymized report to be submitted 
30.14 	annually to the chairperson and minority chairperson of the legislative committees with 
30.15 	jurisdiction over higher education that contains:
30.16 	(1) the number of students receiving foster grants and the institutions attended; and
30.17 	(2) annual retention and graduation data on students receiving foster grants.
30.18 	(b) The report required under this subdivision may be combined with other legislatively 
30.19 	required reporting. If submitted as a separate report, the report must be submitted by January 
30.20 	15.

30.21 	EFFECTIVE DATE; APPLICATION. This section is effective the day following 
30.22 	final enactment and applies to foster grants awarded beginning the 2022-2023 academic 
30.23 	year. The first report under subdivision 8 must be submitted by January 15, 2024, unless 
30.24 	included in other legislatively required reporting.

30.25 	Sec. 8. Minnesota Statutes 2020, section 136A.125, subdivision 2, is amended to read:
30.26 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if the 
30.27 	applicant:
30.28 	(1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the 
30.29 	state of Minnesota;
31.1 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled 
31.2 	as defined in section 125A.02, and who is receiving or will receive care on a regular basis 
31.3 	from a licensed or legal, nonlicensed caregiver;
31.4 	(3) is income eligible as determined by the office's policies and rules, but is not a recipient 
31.5 	of assistance from the Minnesota family investment program;
31.6 	(4) either has not earned a baccalaureate degree and has been enrolled full time less than
31.7 	received child care grant funds for a period of ten semesters or the equivalent, or has earned 
31.8 	a baccalaureate degree and has been enrolled full time less than ten semesters or the 
31.9 	equivalent in a graduate or professional degree program;
31.10 	(5) is pursuing a nonsectarian program or course of study that applies to an undergraduate, 
31.11 	graduate, or professional degree, diploma, or certificate;
31.12 	(6) is enrolled in at least six credits one credit in an undergraduate program or one credit 
31.13 	in a graduate or professional program in an eligible institution; and
31.14 	(7) is in good academic standing and making satisfactory academic progress.
31.15 	(b) A student who is entitled to an additional semester or equivalent of grant eligibility 
31.16 	and will be considered to be in continuing enrollment status upon return if the student
31.17 	withdraws from enrollment:
31.18 	(1) for active military service after December 31, 2002, because the student was ordered 
31.19 	to active military service as defined in section 190.05, subdivision 5b or 5c, or;
31.20 	(2) for a major illness serious health condition, while under the care of a medical 
31.21 	professional, that substantially limits the student's ability to complete the term is entitled to 
31.22 	an additional semester or the equivalent of grant eligibility and will be considered to be in 
31.23 	continuing enrollment status upon return.; or
31.24 	(3) while providing care that substantially limits the student's ability to complete the 
31.25 	term to the student's spouse, child, or parent who has a serious health condition.

31.26 	Sec. 9. Minnesota Statutes 2020, section 136A.125, subdivision 4, is amended to read:
31.27 		Subd. 4.Amount and length of grants. (a) The amount of a child care grant must be 
31.28 	based on:
31.29 	(1) the income of the applicant and the applicant's spouse;
31.30 	(2) the number in the applicant's family, as defined by the office; and
31.31 	(3) the number of eligible children in the applicant's family.
32.1 	(b) (a) The maximum award to the applicant shall be $3,000 $6,500 for each eligible 
32.2 	child per academic year, except that the campus financial aid officer may apply to the office 
32.3 	for approval to increase grants by up to ten percent to compensate for higher market charges 
32.4 	for infant care in a community. The office shall develop policies to determine community 
32.5 	market costs and review institutional requests for compensatory grant increases to ensure 
32.6 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
32.7 	that will be awarded per child based on the factors in this subdivision. The chart shall include 
32.8 	a range of income and family size.
32.9 	(c) (b) Applicants with family incomes expected family contributions at or below a 
32.10 	percentage of the federal poverty level the qualifying expected family contribution for the 
32.11 	federal Pell Grant, as determined by the commissioner, will qualify for the maximum award. 
32.12 	The commissioner shall attempt to set the percentage at a level estimated to fully expend 
32.13 	the available appropriation for child care grants. Applicants with family incomes expected 
32.14 	family contributions exceeding that threshold will but less than 200 percent of the qualifying 
32.15 	expected family contribution receive the maximum award minus ten percent of their income 
32.16 	exceeding that threshold an amount proportional to their expected family contribution as 
32.17 	determined by the commissioner. If the result is less than zero, the grant is zero.
32.18 	(d) (c) The academic year award amount must be disbursed by academic term using the 
32.19 	following formula:
32.20 	(1) the academic year amount described in paragraph (b) (a);
32.21 	(2) divided by the number of terms in the academic year; and
32.22 	(3) divided by 15 for undergraduate students and six for graduate and professional 
32.23 	students; and
32.24 	(4) (3) multiplied by the number of credits for which the student is enrolled that academic 
32.25 	term, up to 15 credits for undergraduate students and six for graduate and professional 
32.26 	students. applicable enrollment factor:
32.27 	(i) 1.00 for undergraduate students enrolled in 12 or more semester credits or the 
32.28 	equivalent or for graduate students enrolled in six or more semester credits or the equivalent;
32.29 	(ii) 0.75 for undergraduate students enrolled in nine, ten, or 11 semester credits or the 
32.30 	equivalent or for graduate students enrolled in five semester credits or the equivalent;
32.31 	(iii) 0.50 for undergraduate students enrolled in six, seven, or eight semester credits or 
32.32 	the equivalent or for graduate students enrolled in three or four semester credits or the 
32.33 	equivalent; and
33.1 	(iv) 0.25 for undergraduate students enrolled in at least one but less than six semester 
33.2 	credits or the equivalent or for graduate students enrolled in one or two semester credits or 
33.3 	the equivalent.
33.4 	(e) (d) Payments shall be made each academic term to the student or to the child care 
33.5 	provider, as determined by the institution. Institutions may make payments more than once 
33.6 	within the academic term.

33.7 	Sec. 10. Minnesota Statutes 2020, section 136A.126, subdivision 1, is amended to read:
33.8 		Subdivision 1.Student eligibility. The commissioner shall establish procedures for the 
33.9 	distribution of scholarships to a Minnesota resident student as defined under section 
33.10 	136A.101, subdivision 8, who:
33.11 	(1) is of one-fourth or more Indian ancestry or is an enrolled member or citizen of a 
33.12 	federally recognized American Indian or Canadian First Nations tribe;
33.13 	(2) has applied for other existing state and federal scholarship and grant programs;
33.14 	(3) is meeting satisfactory academic progress as defined under section 136A.101, 
33.15 	subdivision 10;
33.16 	(4) is not in default, as defined by the office, of a federal or state student educational 
33.17 	loan;
33.18 	(5) if enrolled in an undergraduate program, is eligible or would be eligible to receive 
33.19 	a federal Pell Grant or a state grant based on the federal needs analysis and is enrolled for 
33.20 	nine semester credits per term or more, or the equivalent; and
33.21 	(6) if enrolled in a graduate program, demonstrates a remaining financial need in the 
33.22 	award amount calculation and is enrolled, per term, on a half-time basis or more as defined 
33.23 	by the postsecondary institution.

33.24 	Sec. 11. Minnesota Statutes 2020, section 136A.126, subdivision 4, is amended to read:
33.25 		Subd. 4.Award amount. (a) Each student shall be awarded a scholarship based on the 
33.26 	federal need analysis. Applicants are encouraged to apply for all other sources of financial 
33.27 	aid. The amount of the award must not exceed the applicant's cost of attendance, as defined 
33.28 	in subdivision 3, after deducting:
33.29 	(1) the expected family contribution as calculated by the federal need analysis;
33.30 	(2) the amount of a federal Pell Grant award for which the applicant is eligible;
34.1 	(3) the amount of the state grant;
34.2 	(4) the federal Supplemental Educational Opportunity Grant;
34.3 	(5) the sum of all institutional grants, scholarships, tuition waivers, and tuition remission 
34.4 	amounts;
34.5 	(6) the sum of all Tribal scholarships;
34.6 	(7) the amount of any other state and federal gift aid; and
34.7 	(8) the amount of any private grants or scholarships.
34.8 	(b) The award shall be paid directly to the postsecondary institution where the student 
34.9 	receives federal financial aid.
34.10 	(c) Awards are limited as follows:
34.11 	(1) the maximum award for an undergraduate is $4,000 per award academic year;
34.12 	(2) the maximum award for a graduate student is $6,000 per award academic year; and
34.13 	(3) the minimum award for all students is $100 per award academic year.
34.14 	(d) Scholarships may not be given to any Indian student for more than three years of 
34.15 	study for a two-year degree, certificate, or diploma program or five years of study for a 
34.16 	four-year degree program at the undergraduate level and for more than five years at the 
34.17 	graduate level. Students may acquire only one degree per level and one terminal graduate 
34.18 	degree. Scholarships may not be given to any student for more than ten years including five 
34.19 	years of undergraduate study and five years of graduate study.
34.20 	(e) Scholarships may be given to an eligible student for four quarters, three semesters, 
34.21 	or the equivalent during the course of a single fiscal year. In calculating the award amount, 
34.22 	the office must use the same calculation it would for any other term.

34.23 	Sec. 12. [136A.1274] UNDERREPRESENTED STUDENT TEACHER GRANTS.
34.24 		Subdivision 1.Establishment. The commissioner of the Office of Higher Education 
34.25 	must establish a grant program for student teaching stipends for low-income students who 
34.26 	belong to an underrepresented racial or ethnic group.
34.27 		Subd. 2.Eligibility. To be eligible for a grant under this section, a student teacher must:
34.28 	(1) be enrolled in a Professional Educator Licensing and Standards Board-approved 
34.29 	teacher preparation program that requires at least 12 weeks of student teaching in order to 
34.30 	be recommended for any Tier 3 teaching license;
35.1 	(2) demonstrate financial need based on criteria established by the commissioner under 
35.2 	subdivision 3;
35.3 	(3) be meeting satisfactory academic progress as defined under section 136A.101, 
35.4 	subdivision 10; and
35.5 	(4) belong to a racial or ethnic group underrepresented in the Minnesota teacher 
35.6 	workforce.
35.7 		Subd. 3.Administration. (a) The commissioner must establish an application process 
35.8 	and other guidelines for implementing this program. The commissioner must notify grant 
35.9 	recipients of their award amounts by the following dates:
35.10 	(1) for fall student teaching placements, recipients must be notified by August 15;
35.11 	(2) for spring student teaching placements, recipients must be notified by December 1; 
35.12 	and
35.13 	(3) for summer student teaching placements, recipients must be notified by May 1.
35.14 	These notification deadlines do not apply in cases where grants are awarded to student 
35.15 	teachers who applied after application deadlines and funds remained after the initial round 
35.16 	of grants were awarded.
35.17 	(b) The commissioner must determine each academic year the stipend amount up to 
35.18 	$7,500 based on the amount of available funding, the number of eligible applicants, and the 
35.19 	financial need of the applicants.
35.20 	(c) The commissioner must give equal consideration to all eligible applicants regardless 
35.21 	of the order the application was received before the application deadline.
35.22 	(d) If there are insufficient funds to provide an award to all eligible applicants, the 
35.23 	commissioner shall prioritize the awards to eligible applicants based on:
35.24 	(1) the financial need of an applicant; and
35.25 	(2) the statewide distribution of funds.
35.26 		Subd. 4.Reporting. (a) By February 15 of each year, the commissioner must submit a 
35.27 	report on the details of the program under this section to the legislative committees with 
35.28 	jurisdiction over E-12 and higher education finance and policy. The report must include the 
35.29 	following information:
35.30 	(1) the number of eligible applicants and the number of teacher candidates receiving an 
35.31 	award, each broken down by postsecondary institution;
36.1 	(2) the total number of awards, the total dollar amount of all awards, and the average 
36.2 	award amount; and
36.3 	(3) and other summary data identified by the commissioner as outcome indicators.

36.4 	EFFECTIVE DATE. This section is effective July 1, 2021, except that the commissioner 
36.5 	may delay notification to student teachers receiving grants for the fall 2021 term until 
36.6 	September 1, 2021.

36.7 	Sec. 13. Minnesota Statutes 2020, section 136A.1275, is amended to read:
36.8 	136A.1275 STUDENT TEACHER CANDIDATE GRANTS IN SHORTAGE 
36.9 	AREAS.
36.10 		Subdivision 1.Establishment. (a) The commissioner of the Office of Higher Education 
36.11 	must establish a grant program for student teaching stipends for low-income students enrolled 
36.12 	in a Professional Educator Licensing and Standards Board-approved teacher preparation 
36.13 	program who intend to teach in a license shortage area or rural school district after graduating 
36.14 	and receiving their teaching license or belong to an underrepresented racial or ethnic group.
36.15 	(b) "Shortage area" means a license field or economic development region within 
36.16 	Minnesota defined as a shortage area by the Professional Educator Licensing and Standards 
36.17 	Board in coordination with the commissioner using data collected for the teacher supply 
36.18 	and demand report under section 122A.091, subdivision 5. "License shortage area" means 
36.19 	a licensure area that is identified as a shortage area by the Professional Educator Licensing 
36.20 	and Standards Board in coordination with the commissioner using data collected for the 
36.21 	teacher supply and demand report under section 122A.091, subdivision 5, provided that 
36.22 	only licensure areas within the following fields may be identified as a license shortage area 
36.23 	for purposes of this section:
36.24 	(1) English as a second language;
36.25 	(2) early childhood;
36.26 	(3) special education;
36.27 	(4) career and technical education;
36.28 	(5) science, technology, engineering, arts, and math; and
36.29 	(6) world languages.
36.30 	(c) "Rural school district" means a school district with fewer than 30 resident pupil units 
36.31 	under section 126C.05, subdivision 6, per square mile.
37.1 		Subd. 2.Eligibility. To be eligible for a grant under this section, a student teacher 
37.2 	candidate must:
37.3 	(1) be enrolled in a Professional Educator Licensing and Standards Board-approved 
37.4 	teacher preparation program that requires at least 12 weeks of student teaching in order to 
37.5 	be recommended for any Tier 3 teaching license;
37.6 	(2) demonstrate financial need based on criteria established by the commissioner under 
37.7 	subdivision 3;
37.8 	(3) be meeting satisfactory academic progress as defined under section 136A.101, 
37.9 	subdivision 10; and
37.10 	(4) intend to teach in a shortage area or belong to a racial or ethnic group underrepresented 
37.11 	in the Minnesota teacher workforce intend to teach in a rural school district or intend to 
37.12 	teach in a license shortage area. Intent can to teach in a license shortage area must be 
37.13 	documented verified based on the teacher license field the student is pursuing or a statement 
37.14 	of. To verify intent to teach in an economic development region defined as a shortage area 
37.15 	in the year the student receives a grant a rural school district, the student must submit to the 
37.16 	commissioner a completed affidavit, prescribed by the commissioner, affirming the student's 
37.17 	intent to teach in a rural district following graduation. Upon obtaining employment after 
37.18 	graduating, the teacher shall report to the office the name of the school district in which the 
37.19 	teacher is teaching.
37.20 		Subd. 3.Administration; repayment. (a) The commissioner must establish an 
37.21 	application process and other guidelines for implementing this program. The commissioner 
37.22 	must notify grant recipients of their award amounts by the following dates:
37.23 	(1) for fall student teaching placements, recipients must be notified by August 15;
37.24 	(2) for spring student teaching placements, recipients must be notified by December 1; 
37.25 	and
37.26 	(3) for summer student teaching placements, recipients must be notified by May 1.
37.27 	These notification deadlines do not apply in cases where grants are awarded to student 
37.28 	teachers who applied after application deadlines and funds remained after the initial round 
37.29 	of grants were awarded.
37.30 	(b) The commissioner must determine each academic year the stipend amount up to 
37.31 	$7,500 based on the amount of available funding, the number of eligible applicants, and the 
37.32 	financial need of the applicants.
38.1 	(c) The percentage of the total award funds available at the beginning of the fiscal year 
38.2 	reserved for teacher candidates who identify as belonging to a racial or ethnic group 
38.3 	underrepresented in the Minnesota teacher workforce must be equal to or greater than the 
38.4 	total percentage of students of racial or ethnic groups underrepresented in the Minnesota 
38.5 	teacher workforce as measured under section 120B.35, subdivision 3. If this percentage 
38.6 	cannot be met because of a lack of qualifying candidates, the remaining amount may be 
38.7 	awarded to teacher candidates who intend to teach in a shortage area.
38.8 	(c) The commissioner must give equal consideration to all eligible applicants regardless 
38.9 	of the order the application was received before the application deadline.
38.10 	(d) If there are insufficient funds to provide an award to all eligible applicants, the 
38.11 	commissioner shall prioritize the awards to eligible participants based on:
38.12 	(1) the financial need of an applicant; and
38.13 	(2) whether the applicant intends to teach in both a rural school district and a license 
38.14 	shortage area.
38.15 		Subd. 4.Reporting. (a) By February 1 of each year, the commissioner must submit a 
38.16 	report to the chairs and ranking minority members of the legislative committees with 
38.17 	jurisdiction over E-12 and higher education finance and policy. The report must include the 
38.18 	following information:
38.19 	(1) the total number of awards, the total dollar amount of all awards, and the average 
38.20 	award amount;
38.21 	(2) the number of eligible applicants and the number of student teachers receiving an 
38.22 	award, each broken down by postsecondary institution;
38.23 	(3) the licensure areas and school districts in which the student teachers taught; and
38.24 	(4) other summary data identified by the commissioner as outcome indicators, including 
38.25 	how many student teachers awarded a rural teacher grant were employed in a rural district 
38.26 	after graduation.
38.27 	(b) By July 1 of each odd numbered year, the commissioner must update and post on 
38.28 	the office's website a list of licensure shortage areas eligible for a grant under this section.

38.29 	EFFECTIVE DATE. This section is effective July 1, 2021, except that the commissioner 
38.30 	may delay notification to student teachers receiving grants for the fall 2021 term until 
38.31 	September 1, 2021.

39.1 	Sec. 14. Minnesota Statutes 2020, section 136A.1704, is amended to read:
39.2 	136A.1704 STUDENT LOAN REFINANCING.
39.3 	The office may refinance student and parent loans as provided by this section and on 
39.4 	other terms and conditions the office prescribes. The office may establish credit requirements 
39.5 	for borrowers and determine what types of student and parent loans will be eligible for 
39.6 	refinancing. The refinanced loan need not have been made through a loan program 
39.7 	administered by the office. Loans shall be made with available funds in the loan capital 
39.8 	fund under section 136A.1785. The maximum amount of outstanding loans refinanced under 
39.9 	this section may not exceed $100,000,000 $300,000,000. The maximum loan under this 
39.10 	section may not exceed $70,000 $200,000.

39.11 	Sec. 15. Minnesota Statutes 2020, section 136A.1791, is amended to read:
39.12 	136A.1791 TEACHER SHORTAGE LOAN FORGIVENESS REPAYMENT
39.13 	PROGRAM.
39.14 		Subdivision 1.Definitions. (a) The terms used in this section have the meanings given 
39.15 	them in this subdivision.
39.16 	(b) "Qualified educational loan" means a government, commercial, or foundation loan 
39.17 	for actual costs paid for tuition and reasonable educational and living expenses related to a 
39.18 	teacher's preparation or further education, only if the further education will result in the 
39.19 	teacher decreasing the gap in a new shortage area.
39.20 	(c) "School district" means an independent school district, special school district, 
39.21 	intermediate district, education district, special education cooperative, service cooperative, 
39.22 	a cooperative center for vocational education, or a charter school located in Minnesota.
39.23 	(d) "Teacher" means an individual holding a teaching license issued by the Professional 
39.24 	Educator Licensing and Standards Board who is employed by a school district to provide 
39.25 	classroom instruction.
39.26 	(e) "Teacher shortage area" means:
39.27 	(1) the licensure fields and economic development regions reported by the Professional 
39.28 	Educator Licensing and Standards Board in coordination with the commissioner as 
39.29 	experiencing a teacher shortage; and
39.30 	(2) economic development regions where there is a shortage of licensed teachers who 
39.31 	reflect the racial or ethnic diversity of students in the region as reported by the Professional 
39.32 	Educator Licensing and Standards Board in coordination with the commissioner.
40.1 	(f) (e) "Commissioner" means the commissioner of the Office of Higher Education 
40.2 	unless indicated otherwise.
40.3 	(f) "License shortage area" has the meaning given in section 136A.1275, subdivision 1, 
40.4 	paragraph (b).
40.5 	(g) "Racial or ethnic group underrepresented in the teacher workforce" means a racial 
40.6 	or ethnic group for which the aggregate percentage of Minnesota teachers of that racial or 
40.7 	ethnic group is lower than the aggregate percentage of Minnesota kindergarten through 
40.8 	grade 12 students of that racial or ethnic group.
40.9 	(h) "Rural school district" means a school district with fewer than 30 resident pupil units 
40.10 	under section 126C.05, subdivision 6, per square mile.
40.11 		Subd. 2.Program established; administration. The commissioner shall establish and 
40.12 	administer a teacher shortage loan forgivenessrepayment program. A teacher is eligible for 
40.13 	the program if the teacher is teaching in an identified teacher shortage area under subdivision 
40.14 	3 and complies with the requirements of this section.
40.15 		Subd. 3.Report on teacher shortage areas. Using data collected for the teacher supply 
40.16 	and demand report to the legislature under section 122A.091, subdivision 5, the Professional 
40.17 	Educator Licensing and Standards Board shall identify the licensure fields and economic 
40.18 	development regions in Minnesota experiencing a teacher shortage.
40.19 		Subd. 3a.Eligibility. To be eligible for a disbursement under this section, a teacher must 
40.20 	belong to a racial or ethnic group underrepresented in the Minnesota teacher workforce, 
40.21 	teach in a rural school district, or teach in a license shortage area.
40.22 		Subd. 4.Application for loan forgiveness repayment. Each applicant for loan 
40.23 	forgiveness repayment, according to rules adopted by the commissioner, shall:
40.24 	(1) apply for teacher shortage loan forgivenessrepayment and promptly submit any 
40.25 	additional information required by the commissioner; and
40.26 	(2) submit to the commissioner a completed affidavit, prescribed by the commissioner, 
40.27 	affirming the teacher is teaching in: (i) a licensure field identified by the commissioner as 
40.28 	experiencing a teacher license shortage area; or (ii) an economic development region 
40.29 	identified by the commissioner as experiencing a teacher shortage a rural school district.
40.30 		Subd. 5.Amount of loan forgiveness repayment. (a) To the extent funding is available, 
40.31 	the annual amount of teacher shortage loan forgiveness repayment for an approved applicant 
40.32 	shall not exceed $1,000 or the cumulative balance of the applicant's qualified educational 
40.33 	loans, including principal and interest, whichever amount is less.
41.1 	(b) Recipients must secure their own qualified educational loans. Teachers who graduate 
41.2 	from an approved teacher preparation program or teachers who add a licensure field, 
41.3 	consistent with the teacher shortage requirements of this section, are eligible to apply for 
41.4 	the loan forgiveness repayment program.
41.5 	(c) No teacher shall receive more than five annual awards.
41.6 		Subd. 6.Disbursement. (a) The commissioner must make annual disbursements directly 
41.7 	to the participant of the amount for which a participant is eligible, for each year that a 
41.8 	participant is eligible.
41.9 	(b) Within 60 days of the disbursement date, the participant must provide the 
41.10 	commissioner with verification that the full amount of loan repayment disbursement has 
41.11 	been applied toward the designated loans. A participant that previously received funds under 
41.12 	this section but has not provided the commissioner with such verification is not eligible to 
41.13 	receive additional funds.
41.14 		Subd. 7.Penalties. (a) A teacher who submits a false or misleading application or other 
41.15 	false or misleading information to the commissioner may:
41.16 	(1) have his or her teaching license suspended or revoked under section 122A.20;
41.17 	(2) be disciplined by the teacher's employing school district; or
41.18 	(3) be required by the commissioner to repay the total amount of the loan forgiveness
41.19 	repayment he or she received under this program, plus interest at a rate established under 
41.20 	section 270C.40.
41.21 	(b) The commissioner must deposit any repayments received under paragraph (a) in the 
41.22 	fund established in subdivision 8.
41.23 		Subd. 8.Account established. A teacher shortage loan forgiveness repayment account 
41.24 	is created in the special revenue fund for depositing money appropriated to or received by 
41.25 	the commissioner for the program. Money deposited in the account is appropriated to the 
41.26 	commissioner, does not cancel, and is continuously available for loan forgivenessrepayment 
41.27 	under this section.
41.28 		Subd. 9.Annual reporting. By February 1 of each year, the commissioner must report 
41.29 	to the chairs of the kindergarten through grade 12 and higher education committees of the 
41.30 	legislature on the number of individuals who received loan forgivenessrepayment under 
41.31 	this section, the race or ethnicity of the teachers participating in the program, the licensure 
41.32 	areas and economic development regions school districts in which the teachers taught, the 
42.1 	average amount paid to a teacher participating in the program, and other summary data 
42.2 	identified by the commissioner as outcome indicators.
42.3 		Subd. 10.Rulemaking. The commissioner shall adopt rules under chapter 14 to 
42.4 	administer this section.

42.5 	Sec. 16. Minnesota Statutes 2020, section 136A.246, subdivision 1, is amended to read:
42.6 		Subdivision 1.Program created. The commissioner shall make grants for the training 
42.7 	of employees to achieve the competency standard for an occupation identified by the 
42.8 	commissioner of labor and industry under section 175.45 and Laws 2014, chapter 312, 
42.9 	article 3, section 21. "Competency standard" has the meaning given in section 175.45, 
42.10 	subdivision 2. An individual must, no later than the commencement of the training, be an 
42.11 	employee of the employer seeking a grant to train that individual.

42.12 	Sec. 17. Minnesota Statutes 2020, section 136A.246, is amended by adding a subdivision 
42.13 	to read:
42.14 		Subd. 1a.Definitions. (a) The terms defined in this subdivision apply to this section.
42.15 	(b) "Competency standard" has the meaning given in section 175.45, subdivision 2.
42.16 	(c) "Eligible training" means training provided by an eligible training provider that:
42.17 	(1) includes training to meet one or more identified competency standards;
42.18 	(2) is instructor-led for a majority of the training; and
42.19 	(3) results in the employee receiving an industry-recognized degree, certificate, or 
42.20 	credential.
42.21 	(d) "Eligible training provider" means an institution:
42.22 	(1) operated by the Board of Trustees of the Minnesota State Colleges and Universities 
42.23 	or the Board of Regents of the University of Minnesota;
42.24 	(2) licensed or registered as a postsecondary institution by the office; or
42.25 	(3) exempt from the provisions of section 136A.822 to 136A.834 or 136A.61 to 136A.71 
42.26 	as approved by the office.
42.27 	(e) "Industry-recognized degrees, certificates, or credentials" means:
42.28 	(1) certificates, diplomas, or degrees issued by a postsecondary institution;
42.29 	(2) registered apprenticeship certifications or certificates;
43.1 	(3) occupational licenses or registrations;
43.2 	(4) certifications issued by, or recognized by, industry or professional associations; and
43.3 	(5) other certifications as approved by the commissioner.

43.4 	Sec. 18. Minnesota Statutes 2020, section 136A.246, subdivision 2, is amended to read:
43.5 		Subd. 2.Eligible grantees. An employer or an organization representing the employer 
43.6 	is eligible to apply for a grant to train employees if the employer has an employee who is 
43.7 	in or is to be trained to be in an occupation for which a competency standard has been 
43.8 	identified and the employee has not attained the competency standard prior to the 
43.9 	commencement of the planned training. Training need not address all aspects of a competency 
43.10 	standard but may address only the competencies of a standard that an employee is lacking. 
43.11 	An employee must receive an industry-recognized degree, certificate, or credential upon 
43.12 	successful completion of the training. A grantee must have an agreement with an eligible 
43.13 	training provider to provide eligible training prior to payment of grant.

43.14 	Sec. 19. Minnesota Statutes 2020, section 136A.246, subdivision 3, is amended to read:
43.15 		Subd. 3.Eligible training institution or program provider. The employer must have 
43.16 	an agreement with a training institution or program to provide the employee competency 
43.17 	standard training prior to the grant award. The training may be provided by any institution 
43.18 	or program having trainers qualified to instruct on the competency standard.
43.19 	The Office of Higher Education and the Department of Labor and Industry must cooperate 
43.20 	in maintaining an inventory of degree, certificate, and credential programs that provide 
43.21 	training to meet competency standards. The inventory must be posted on each agency's 
43.22 	website with contact information for each program by September 1, 2016. The postings 
43.23 	must be updated periodically.

43.24 	Sec. 20. Minnesota Statutes 2020, section 136A.246, subdivision 4, is amended to read:
43.25 		Subd. 4.Application. Applications must be made to the commissioner on a form provided 
43.26 	by the commissioner. The commissioner must, to the extent possible, make the application 
43.27 	form as short and simple to complete as is reasonably possible. The commissioner shall 
43.28 	establish a schedule for applications and grants. The application must include, without 
43.29 	limitation:
43.30 	(1) the projected number of employee trainees;
44.1 	(2) the number of projected employee trainees who graduated from high school or passed 
44.2 	the commissioner of education-selected high school equivalency test in the current or 
44.3 	immediately preceding calendar year;
44.4 	(3) (2) the competency standard for which training will be provided;
44.5 	(4) (3) the credential the employee will receive upon completion of training;
44.6 	(5) (4) the name and address of the eligible training institution or program and a signed 
44.7 	statement by the institution or program that it is able and agrees to provide the training
44.8 	provider;
44.9 	(6) (5) the period of the training; and
44.10 	(7) (6) the cost of the training charged by the eligible training institution or program and 
44.11 	certified by the institution or program provider. The cost of training includes tuition, fees, 
44.12 	and required books and materials.
44.13 	An application may be made for training of employees of multiple employers either by 
44.14 	the employers or by an organization on their behalf.

44.15 	Sec. 21. Minnesota Statutes 2020, section 136A.246, subdivision 5, is amended to read:
44.16 		Subd. 5.Grant criteria. (a) Except as provided in this subdivision, the commissioner 
44.17 	shall award grants to employers solely for training employees who graduated from high 
44.18 	school or passed commissioner of education-selected high school equivalency tests in the 
44.19 	current or immediately preceding calendar year.
44.20 	(b) If there are not sufficient eligible applications satisfying paragraph (a), the 
44.21 	commissioner may award grants to applicants to train employees who do not meet the 
44.22 	requirements of paragraph (a).
44.23 	(c) (a) The commissioner shall, to the extent possible after complying with paragraph 
44.24 	(a), make at least an approximately equal dollar amount of grants for training for employees 
44.25 	whose work site is projected to be outside the metropolitan area as defined in section 473.121, 
44.26 	subdivision 2, as for employees whose work site is projected to be within the metropolitan 
44.27 	area.
44.28 	(d) (b) In determining the award of grants, the commissioner must consider, among other 
44.29 	factors:
44.30 	(1) the aggregate state and regional need for employees with the competency to be 
44.31 	trained;
45.1 	(2) the competency standards developed by the commissioner of labor and industry as 
45.2 	part of the Minnesota PIPELINE Project;
45.3 	(3) the per employee cost of training;
45.4 	(4) the additional employment opportunities for employees because of the training;
45.5 	(5) the on-the-job training the employee receives;
45.6 	(6) the employer's demonstrated ability to recruit, train, and retain employees who are 
45.7 	recent high school graduates or who recently passed high school equivalency tests;
45.8 	(6) (7) projected increases in compensation for employees receiving the training; and
45.9 	(7) (8) the amount of employer training cost match, if required, on both a per employee 
45.10 	and aggregate basis.

45.11 	Sec. 22. Minnesota Statutes 2020, section 136A.246, subdivision 6, is amended to read:
45.12 		Subd. 6.Employer match. A large employer must pay for at least 25 percent of the
45.13 	eligible training institution's or program's provider's charge for the eligible training to the 
45.14 	training institution or program provider. For the purpose of this subdivision, a "large 
45.15 	employer" means a business with more than $25,000,000 in annual gross revenue in the 
45.16 	previous calendar year.

45.17 	Sec. 23. Minnesota Statutes 2020, section 136A.246, subdivision 7, is amended to read:
45.18 		Subd. 7.Payment of grant. (a) The commissioner shall pay the grant to the employer 
45.19 	after the employer presents satisfactory evidence to the commissioner that the employer 
45.20 	has paid the eligible training institution or program provider.
45.21 	(b) If an employer demonstrates that it is not able to pay for the training in advance, the 
45.22 	commissioner shall make grant payments directly to the eligible training institution or 
45.23 	program provider.

45.24 	Sec. 24. Minnesota Statutes 2020, section 136A.246, subdivision 8, is amended to read:
45.25 		Subd. 8.Grant amounts. (a) The maximum grant for an application is $150,000. A 
45.26 	grant may not exceed $6,000 per year for a maximum of four years per employee.
45.27 	(b) An employee who is attending an eligible training provider that is an institution under 
45.28 	section 136A.103 must apply for Pell and state grants as a condition of payment for training 
45.29 	that employee under this section.

46.1 	Sec. 25. Minnesota Statutes 2020, section 136A.63, subdivision 2, is amended to read:
46.2 		Subd. 2.Sale of an institution. Within 30 days of a change of its ownership a school 
46.3 	must submit a registration renewal application, all usual and ordinary information and 
46.4 	materials for an initial registration, and applicable registration fees for a new institution. 
46.5 	For purposes of this subdivision, "change of ownership" means a merger or consolidation 
46.6 	with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 
46.7 	the assets of a school; the transfer of a controlling interest of at least 51 percent of the 
46.8 	school's stock; the school enters receivership; or a change in the nonprofit or for-profit status 
46.9 	of a school.

46.10 	Sec. 26. Minnesota Statutes 2020, section 136A.645, is amended to read:
46.11 	136A.645 SCHOOL CLOSURE.
46.12 	(a) When a school intends to cease postsecondary education operations, announces its 
46.13 	closure, or is informed by the office that the office anticipates the school's closure due to 
46.14 	its registration status or ability to meet criteria for approval under section 136A.65, the 
46.15 	school must provide the office:
46.16 	(1) a notice of closure, including the name of the school, the name of the school owner, 
46.17 	an active mailing address and telephone number that the school owner may be reached at 
46.18 	after the school physically closes, the name of the school director, and the planned date for 
46.19 	termination of postsecondary operations;
46.20 	(2) a report of all students currently enrolled and all students enrolled within the prior 
46.21 	120 days, including the following information for each student: name, address, school e-mail 
46.22 	address, alternate e-mail address, program of study, number of credits completed, number 
46.23 	of credits remaining, and enrollment status at closure;
46.24 	(3) a report of refunds due to any student and the amount due;
46.25 	(4) a written statement from the school's owner or designee affirming that all recruitment 
46.26 	efforts, school marketing, advertisement, solicitation, and enrollment of new students has 
46.27 	ceased;
46.28 	(5) a copy of any communication between the school's accreditors about the school 
46.29 	closure;
46.30 	(6) confirmation that the requirements for student records under section 136A.68 have 
46.31 	been satisfied, including:
46.32 	(i) the planned date for the transfer of the student records;
47.1 	(ii) confirmation of the name and address of the organization to receive and hold the 
47.2 	student records; and
47.3 	(iii) the official at the organization receiving the student records who is designated to 
47.4 	provide official copies of records or transcripts upon request;
47.5 	(7) academic information, including the school's most recent catalog, all course syllabi, 
47.6 	and faculty credential information; and
47.7 	(8) copies of any teach-out, transfer, or train-out agreement between the school and a 
47.8 	new school for students to be able to complete their studies. A teach-out fulfills the original 
47.9 	contract or agreement between the closing school and the student. If a teach-out is arranged 
47.10 	for another approved school to do the remaining occupational training, that other school 
47.11 	must (i) provide comparable education and training and (ii) agree that students transferring 
47.12 	from the closing school pay only what the cost of tuition and fees remain unpaid according 
47.13 	to the terms and conditions in the enrollment agreement entered into between the student 
47.14 	and the closing school.
47.15 	(b) Without limitation as to other circumstance, a school shall be deemed to have ceased 
47.16 	operations when the school:
47.17 	(1) has an unscheduled nonemergency closure or cancellation of classes for more than 
47.18 	24 hours without prior notice to the office;
47.19 	(2) announces it is closed or closing; or
47.20 	(3) files for bankruptcy.; or
47.21 	(4) fails to complete a renewal application when required under section 136A.63, 
47.22 	subdivision 2.
47.23 	(c) When a school is deemed to have ceased operations, the office shall provide the 
47.24 	school a reasonable time to correct student records and grant credentials. After that time, 
47.25 	the office must revoke the school's registration. This revocation is not appealable under 
47.26 	section 136A.65, subdivision 8.

47.27 	Sec. 27. Minnesota Statutes 2020, section 136A.653, subdivision 5, is amended to read:
47.28 		Subd. 5.Regionally Higher Learning Commission accredited institutions in 
47.29 	Minnesota. (a) A regionally accredited postsecondary institution accredited by the Higher 
47.30 	Learning Commission or its successor with its primary physical location in Minnesota is 
47.31 	exempt from the provisions of sections 136A.61 to 136A.71, including related fees, when 
47.32 	it creates new or modifies existing:
48.1 	(1) majors, minors, concentrations, specializations, and areas of emphasis within approved 
48.2 	degrees;
48.3 	(2) nondegree programs within approved degrees;
48.4 	(3) underlying curriculum or courses;
48.5 	(4) modes of delivery; and
48.6 	(5) locations.
48.7 	(b) The institution must annually notify the commissioner of the exempt actions listed 
48.8 	in paragraph (a) and, upon the commissioner's request, must provide additional information 
48.9 	about the action.
48.10 	(c) The institution must notify the commissioner within 60 days of a program closing.
48.11 	(d) Nothing in this subdivision exempts an institution from the annual registration and 
48.12 	degree approval requirements of sections 136A.61 to 136A.71.

48.13 	Sec. 28. Minnesota Statutes 2020, section 136A.675, is amended to read:
48.14 	136A.675 RISK ANALYSIS.
48.15 		Subdivision 1.Standard development and usage. (a) To screen and detect whether an 
48.16 	institution may not be financially or administratively responsible, the office shall develop 
48.17 	a set of financial and programmatic evaluation metrics to aid in the detection of the failure 
48.18 	or potential failure of a school to meet the standards established under sections 136A.61 to 
48.19 	136A.71 nonfinancial indicators. These metrics shall include indicators of financial stability, 
48.20 	changes in the senior management or the financial aid and senior administrative staff of an 
48.21 	institution, changes in enrollment, changes in program offerings, and changes in faculty 
48.22 	staffing patterns. The development of financial standards and nonfinancial indicators shall 
48.23 	use industry standards as benchmarks guidance. The development of the nonfinancial 
48.24 	standards shall include a measure of trends and dramatic changes in trends or practice.
48.25 	(b) Annually, the agency office must specify the metrics and standards for each area and
48.26 	provide a copy of the financial and nonfinancial indicators to each registered institution and 
48.27 	post them a list of reviewed indicators on the agency office website.
48.28 	(c) The agency office shall use regularly reported data submitted to the federal 
48.29 	government or other regulatory or accreditation agencies wherever possible. The agency 
48.30 	may require more frequent data reporting by an institution to ascertain whether the standards 
48.31 	are being met.
49.1 	(d) The office must use the indicators in this subdivision to identify institutions at 
49.2 	potential risk of being unable to meet the standards established under sections 136A.646; 
49.3 	136A.64, subdivision 3; 136A.65, subdivisions 1a and 4, paragraph (a), clauses (1), (2), (3), 
49.4 	and (7); and 136A.685 and thus unlikely to meet its financial obligations or complete its 
49.5 	academic terms for the next 18 months.
49.6 		Subd. 2.Additional reporting. (a) In addition to the information required for the 
49.7 	indicators in subdivision 1, an institution must notify the office within ten business days if 
49.8 	any of the events in paragraphs (b) to (e) occur.
49.9 	(b) Related to revenue, debt, and cash flow, notice is required if:
49.10 	(1) the institution defaulted on a debt payment or covenant and has not received a waiver 
49.11 	of the violation from the financial institution within 60 days;
49.12 	(2) for institutions with a federal composite score of less than 1.5, the institution's owner 
49.13 	withdraws equity that directly results in a composite score of less than 1.0, unless the 
49.14 	withdrawal is a transfer between affiliated entities included in a common composite score;
49.15 	(3) the United States Department of Education requires a 25 percent or greater Letter of 
49.16 	Credit, except when the Letter of Credit is imposed due to a change of ownership;
49.17 	(4) the United States Department of Education requires Heightened Cash Monitoring 2;
49.18 	(5) the institution receives written notification that it violated the United States 
49.19 	Department of Education's revenue requirement under United States Code, title 20, section 
49.20 	1094(a)(24), as amended; or
49.21 	(6) the institution receives written notification by the United States Department of 
49.22 	Education that it has fallen below minimum financial standards and that its continued 
49.23 	participation in Title IV is conditioned upon satisfying either the Zone Alternative, Code 
49.24 	of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 
49.25 	Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c).
49.26 	(c) Related to accreditation and licensing, notice is required if:
49.27 	(1) the institution receives written notification of probation, warning, show-cause, or 
49.28 	loss of institutional accreditation;
49.29 	(2) the institution receives written notification that its institutional accreditor lost federal 
49.30 	recognition; or
49.31 	(3) the institution receives written notification that it has materially violated state 
49.32 	authorization or institution licensing requirements in a different state that may lead to or 
50.1 	has led to the termination of the institution's ability to continue to provide educational 
50.2 	programs or otherwise continue to operate in that state.
50.3 	(d) Related to securities, notice is required if:
50.4 	(1) the Securities and Exchange Commission (i) issues an order suspending or revoking 
50.5 	the registration of the institution's securities, or (ii) suspends trading of the institution's 
50.6 	securities on any national securities exchange;
50.7 	(2) the national securities exchange on which the institution's securities are traded notifies 
50.8 	the institution that it is not in compliance with the exchange's listing requirements and the 
50.9 	institution's securities are delisted; or
50.10 	(3) the Securities and Exchange Commission is not in timely receipt of a required report 
50.11 	and did not issue an extension to file the report.
50.12 	(e) Related to criminal and civil investigations, notice is required if:
50.13 	(1) the institution receives written notification of a felony criminal indictment or charges 
50.14 	of the institution's owner;
50.15 	(2) the institution receives written notification of criminal indictment or charges of the 
50.16 	institution's officers related to operations of the institution; or
50.17 	(3) there has been a criminal, civil, or administrative adjudication of fraud or 
50.18 	misrepresentation in Minnesota or in another state or jurisdiction against the institution or 
50.19 	its owner, officers, agents, or sponsoring organization.
50.20 		Subd. 3.Determination procedures. (a) The office shall conduct a systematic evaluation 
50.21 	under this paragraph and make a preliminary determination as to whether action under 
50.22 	paragraph (e) is necessary, if the office: (1) identifies a potential risk under subdivision 1, 
50.23 	paragraph (d); (2) receives notification from an institution under subdivision 2; or (3) 
50.24 	identifies other exigent circumstances impacting the institution that may deny students a 
50.25 	reasonable opportunity to complete their education program at the institution or through an 
50.26 	alternate institution with minimal disruption. The systematic evaluation must, to the extent 
50.27 	practicable, be a collaboration between the office and the institution. The office must request 
50.28 	additional context and information from the institution that demonstrates the administrative 
50.29 	and financial responsibility of the institution. If the institution is not financially or 
50.30 	administratively responsible, a contingency plan must be implemented either collaboratively 
50.31 	or as part of a final determination under paragraph (e), clause (4).
50.32 	(b) The office shall provide notice in writing to the institution of the preliminary 
50.33 	determination. The notice shall provide the analysis used by the office to make the 
51.1 	determination, a request for the institution to provide additional context and information 
51.2 	that demonstrates the administrative and financial responsibility of the institution not provided 
51.3 	under paragraph (a), any potential action the office may take under paragraph (e), and a 
51.4 	deadline for responding to the notice. The institution shall have no fewer than ten business 
51.5 	days to respond to the preliminary determination.
51.6 	(c) The response from the institution to provide additional context and information must 
51.7 	be written and may include a collaborative consultation with the office. In its response, the 
51.8 	institution shall provide additional context, financial data, and other information, including 
51.9 	but not limited to evidence of sound business practices, institutional financial health, 
51.10 	compliance with the requirements of sections 136A.61 to 136A.71, or sufficient and timely 
51.11 	plans to cure any noncompliance or to manage financial health and risk.
51.12 	(d) If the institution does not respond to the office's notice and request for additional 
51.13 	context and information within the time required, the office's preliminary determination 
51.14 	shall become final and the office may take any of the actions specified in the notice required 
51.15 	by paragraph (e). If the institution responds to the office's notice, the office must reevaluate 
51.16 	the preliminary determination. The office shall use the additional context and information 
51.17 	provided by the institution to make a final determination and determine which actions under 
51.18 	paragraph (e), if any, are necessary to mitigate risk to students and state financial aid under 
51.19 	this chapter.
51.20 	(e) The office may use a final determination to:
51.21 	(1) revoke, suspend, or refuse to renew registration, approval of an institution's degree, 
51.22 	or use of a regulated term in its name under section 136A.65, subdivision 8;
51.23 	(2) require periodic monitoring and submission of reports on the institution's 
51.24 	administrative and financial responsibility to ascertain whether compliance and financial 
51.25 	risk improves;
51.26 	(3) require periodic collaborative consultations with the institution on noncompliance 
51.27 	with sections 136A.61 to 136A.71, or how the institution is managing financial health and 
51.28 	risk;
51.29 	(4) require the institution to submit contingency plans such as teach-out plans or transfer 
51.30 	pathways for students;
51.31 	(5) prohibit the institution from accepting tuition and fee payments made through cash, 
51.32 	alternative loans, or the equivalent, prior to the add/drop period of the current period of 
51.33 	instruction;
52.1 	(6) prohibit the institution from enrolling new students;
52.2 	(7) initiate alternative processes and communications with students enrolled at the 
52.3 	institution;
52.4 	(8) require a surety bond under section 136A.646; or
52.5 	(9) submit institution closure information under section 136A.645.
52.6 	(f) The office shall provide to the institution written notice of the final determination 
52.7 	and the actions taken under paragraph (e).
52.8 		Subd. 4.Data classification. Data under this section shall be classified as financial 
52.9 	records under section 136A.64, subdivision 2, except for the following data, which shall be 
52.10 	public:
52.11 	(1) a final determination that is subject to action under subdivision 3, paragraph (e), 
52.12 	clauses (1), (5), (6), and (7), and a summary of the reasons for the determination; and
52.13 	(2) data received by the office under subdivision 2, paragraph (b), clauses (2), (4), and 
52.14 	(6); paragraph (c), clauses (1) and (2); and paragraphs (d) and (e).

52.15 	Sec. 29. Minnesota Statutes 2020, section 136A.68, is amended to read:
52.16 	136A.68 RECORDS.
52.17 	(a) A registered school shall maintain a permanent record for each student for 50 years 
52.18 	from the last date of the student's attendance. A registered school offering distance instruction 
52.19 	to a student located in Minnesota shall maintain a permanent record for each Minnesota 
52.20 	student for 50 years from the last date of the student's attendance. Records include a student's 
52.21 	academic transcript, documents, and files containing student data about academic credits 
52.22 	earned, courses completed, grades awarded, degrees awarded, and periods of attendance.
52.23 	(b) A registered school shall maintain records required for professional licensure in 
52.24 	Minnesota that are not included in paragraph (a) for ten years from the last date of the 
52.25 	student's attendance or the number of years required by an institutional or programmatic 
52.26 	accreditor, whichever is greater.
52.27 	(c) To preserve permanent records, a school shall submit a plan that meets the following 
52.28 	requirements:
52.29 	(1) at least one copy of the records must be held in a secure, fireproof depository or 
52.30 	duplicate records must be maintained off site in a secure location and in a manner approved 
52.31 	by the office;
53.1 	(2) an appropriate official must be designated to provide a student with copies of records 
53.2 	or a transcript upon request;
53.3 	(3) an alternative method approved by the office of complying with clauses (1) and (2) 
53.4 	must be established if the school ceases to exist; and
53.5 	(4) if the school has no binding agreement approved by the office for preserving student 
53.6 	records, a continuous surety bond or an irrevocable letter of credit issued by a financial 
53.7 	institution must be filed with the office in an amount not to exceed $20,000. The bond or 
53.8 	irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure, 
53.9 	the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover, 
53.10 	maintain, digitize, and destroy academic records.

53.11 	Sec. 30. Minnesota Statutes 2020, section 136A.822, subdivision 12, is amended to read:
53.12 		Subd. 12.Permanent student records. (a) A private career school licensed under 
53.13 	sections 136A.82 to 136A.834 and located in Minnesota shall maintain a permanent student 
53.14 	record for each student for 50 years from the last date of the student's attendance. A private 
53.15 	career school licensed under this chapter and offering distance instruction to a student located 
53.16 	in Minnesota shall maintain a permanent record for each Minnesota student for 50 years 
53.17 	from the last date of the student's attendance. Records include school transcripts, documents, 
53.18 	and files containing student data about academic credits earned, courses completed, grades 
53.19 	awarded, degrees awarded, and periods of attendance.
53.20 	(b) A private career school licensed under sections 136A.82 to 136A.834 and located 
53.21 	in Minnesota shall maintain a permanent student record required for professional licensure 
53.22 	in Minnesota for each student for ten years from the last date of the student's attendance or 
53.23 	the number of years required by an institutional or programmatic accreditor, whichever is 
53.24 	greater. A private career school licensed under this chapter and offering distance instruction 
53.25 	to a student located in Minnesota shall maintain records required for professional licensure 
53.26 	in Minnesota that are not included in paragraph (a) for each Minnesota student for ten years 
53.27 	from the last date of the student's attendance or the number of years required by an 
53.28 	institutional or programmatic accreditor, whichever is greater.
53.29 	To preserve permanent student records, a private career school shall submit a plan that 
53.30 	meets the following requirements:
53.31 	(1) at least one copy of the records must be held in a secure, fireproof depository;
53.32 	(2) an appropriate official must be designated to provide a student with copies of records 
53.33 	or a transcript upon request;
54.1 	(3) an alternative method, approved by the office, of complying with clauses (1) and (2) 
54.2 	must be established if the private career school ceases to exist; and
54.3 	(4) a continuous surety bond or irrevocable letter of credit issued by a financial institution 
54.4 	must be filed with the office in an amount not to exceed $20,000 if the private career school 
54.5 	has no binding agreement approved by the office, for preserving student records. The bond 
54.6 	or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school 
54.7 	closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve, 
54.8 	recover, maintain, digitize, and destroy academic records.

54.9 	Sec. 31. Minnesota Statutes 2020, section 136A.8225, is amended to read:
54.10 	136A.8225 SCHOOL CLOSURE.
54.11 	(a) When a school intends to cease postsecondary education operations, announces its 
54.12 	closure, or is informed by the office that the office anticipates the school's closure due to 
54.13 	its licensure status or ability to meet criteria for approval under section 136A.822, subdivision 
54.14 	8, the school must provide the office:
54.15 	(1) a notice of closure, including the name of the school, the name of the school owner, 
54.16 	an active mailing address and telephone number that the school owner may be reached at 
54.17 	after the school physically closes, the name of the school director, and the planned date for 
54.18 	termination of postsecondary operations;
54.19 	(2) a report of all students currently enrolled and all students enrolled within the prior 
54.20 	120 days, including the following information for each student: name, address, school e-mail 
54.21 	address, alternate e-mail address, program of study, number of credits completed, number 
54.22 	of credits remaining, and enrollment status at closure;
54.23 	(3) a report of refunds due to any student and the amount due;
54.24 	(4) a written statement from the school's owner or designee affirming that all recruitment 
54.25 	efforts, school marketing, advertisement, solicitation, and enrollment of new students has 
54.26 	ceased;
54.27 	(5) a copy of any communication between the school's accreditors about the school 
54.28 	closure;
54.29 	(6) confirmation that the requirements for student records under section 136A.822, 
54.30 	subdivision 12, have been satisfied, including:
54.31 	(i) the planned date for the transfer of the student records;
55.1 	(ii) confirmation of the name and address of the organization to receive and hold the 
55.2 	student records; and
55.3 	(iii) the official at the organization receiving the student records who is designated to 
55.4 	provide official copies of records or transcripts upon request;
55.5 	(7) academic information, including the school's most recent catalog, all course syllabi, 
55.6 	and faculty credential information; and
55.7 	(8) copies of any teach-out, transfer, or train-out agreement between the school and a 
55.8 	new school for students to be able to complete their studies. A teach-out fulfills the original 
55.9 	contract or agreement between the closing school and the student. If a teach-out is arranged 
55.10 	for another approved school to do the remaining occupational training, that other school 
55.11 	must (i) provide comparable education and training and (ii) agree that students transferring 
55.12 	from the closing school pay only what the cost of tuition and fees remain unpaid according 
55.13 	to the terms and conditions in the enrollment agreement entered into between the student 
55.14 	and the closing school.
55.15 	(b) Without limitation as to other circumstance, a school shall be deemed to have ceased 
55.16 	operations when the school:
55.17 	(1) has an unscheduled nonemergency closure or cancellation of classes for more than 
55.18 	24 hours without prior notice to the office;
55.19 	(2) announces it is closed or closing; or
55.20 	(3) files for bankruptcy.; or
55.21 	(4) fails to complete a renewal application when required under section 136A.823, 
55.22 	subdivision 3.
55.23 	(c) When a school is deemed to have ceased operations, the office shall provide the 
55.24 	school a reasonable time to correct student records and grant credentials. After that time, 
55.25 	the office must revoke the school's license. This revocation is not appealable under section 
55.26 	136A.829, subdivision 2.

55.27 	Sec. 32. Minnesota Statutes 2020, section 136A.823, is amended by adding a subdivision 
55.28 	to read:
55.29 		Subd. 3.Change of ownership. Within 30 days of a change of ownership, a school must 
55.30 	submit a registration renewal application, the information and materials for an initial 
55.31 	registration under section 136A.822, subdivision 4, and the applicable registration fees for 
55.32 	a new institution under section 136A.824, subdivision 1. For purposes of this subdivision, 
56.1 	"change of ownership" means: a merger or consolidation with a corporation; a sale, lease, 
56.2 	exchange, or other disposition of all or substantially all of the assets of a school; the transfer 
56.3 	of a controlling interest of at least 51 percent of the school's stock; entering into receivership; 
56.4 	or a change in the nonprofit or for-profit status of a school.

56.5 	Sec. 33. Minnesota Statutes 2020, section 136A.827, subdivision 4, is amended to read:
56.6 		Subd. 4.Proration. (a) When a student has been accepted by a private career school 
56.7 	and gives notice of cancellation after the program of instruction has begun, but before 
56.8 	completion of 75 percent of the program, the amount charged for tuition, fees and all other 
56.9 	charges shall be prorated based on the number of days in the term as a portion of the total 
56.10 	charges for tuition, fees and all other charges. An additional 25 percent of the total cost of 
56.11 	the program may be added but shall not exceed $100. After completion of 75 percent of the 
56.12 	program, no refunds are required. the student is entitled to a refund if, at the last documented 
56.13 	date of attendance, the student has not completed at least 75 percent of the entire program 
56.14 	of instruction. For purposes of this subdivision, program of instruction is calculated under 
56.15 	paragraph (c) or (d). Program of instruction does not mean one term, a payment period, a 
56.16 	module, or any other portion of the entire instructional program.
56.17 	(b) A notice of cancellation from a student under this subdivision must be confirmed in 
56.18 	writing by the private career school and mailed to the student's last known address. The 
56.19 	confirmation from the school must state that the school has withdrawn the student from 
56.20 	enrollment, and if this action was not the student's intent, the student must contact the school.
56.21 	(c) The length of a program of instruction for a program that has a defined calendar start 
56.22 	and end date that does not change after the program has begun equals the number of days 
56.23 	from the first scheduled date of the program through the last scheduled date of the program. 
56.24 	To calculate the completion percentage, divide the number of calendar days from the first 
56.25 	date of the program through the student's last documented date of attendance by the length 
56.26 	of the program of instruction, and truncate the result after the second digit following the 
56.27 	decimal point. If the completion percentage is less than 75 percent, the private career school 
56.28 	may retain:
56.29 	(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied 
56.30 	by the completion percentage; plus
56.31 	(2) the initial program application fees, not to exceed $50; plus
56.32 	(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.
57.1 	(d) The length of a program of instruction for a program that is measured in clock hours 
57.2 	equals the number of clock hours the student was scheduled to attend. To calculate the 
57.3 	completion percentage, divide the number of clock hours that the student actually attended 
57.4 	by the length of the program of instruction, and truncate the result after the second digit 
57.5 	following the decimal point. If the completion percentage is less than 75 percent, the private 
57.6 	career school may retain:
57.7 	(1) tuition, fees, and charges equal to the total of tuition, fees, and charges multiplied 
57.8 	by the completion percentage; plus
57.9 	(2) the initial program application fees, not to exceed $50; plus
57.10 	(3) the lesser of (i) 25 percent of the total tuition, or (ii) $100.

57.11 	Sec. 34. Minnesota Statutes 2020, section 136A.827, subdivision 8, is amended to read:
57.12 		Subd. 8.Cancellation occurrence. Written notice of cancellation shall take place on 
57.13 	the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
57.14 	carried, it shall occur on the date the notice is delivered to the private career school. Notice 
57.15 	of cancellation shall be the date a student notifies a private career school of the student's 
57.16 	intention to withdraw or otherwise leave the program of study. The student is not required 
57.17 	to provide a written notice. The private career school may require a student to provide the 
57.18 	student's notification only to specific offices or personnel at the school as long as this 
57.19 	requirement is documented as part of the "Student's Right to Cancel" in all places that the 
57.20 	information appears, including on the private career school's website. The date of the notice 
57.21 	of cancellation may or may not be the same date as the student's last documented date of 
57.22 	attendance. If a student has not attended class for a period of 21 14 consecutive days without 
57.23 	contacting the private career school to indicate an intent to continue in the private career 
57.24 	school provide notice of cancellation or otherwise making make arrangements concerning 
57.25 	the absence, the student is considered to have withdrawn from the private career school for 
57.26 	all purposes as of the student's last documented date of attendance.

57.27 	Sec. 35. [136A.91] CONCURRENT ENROLLMENT GRANTS.
57.28 		Subdivision 1.Grants. (a) The Office of Higher Education must establish a competitive 
57.29 	grant program for postsecondary institutions to expand concurrent enrollment opportunities. 
57.30 	To the extent that there are qualified applicants, the commissioner of the Office of Higher 
57.31 	Education shall distribute grant funds to ensure:
58.1 	(1) eligible students throughout the state have access to concurrent enrollment programs; 
58.2 	and
58.3 	(2) preference for grants that expand programs is given to programs already at capacity.
58.4 	(b) The commissioner may award grants under this section to postsecondary institutions 
58.5 	for any of the following purposes:
58.6 	(1) to develop new concurrent enrollment courses under section 124D.09, subdivision 
58.7 	10, that satisfy the elective standard for career and technical education; or
58.8 	(2) to expand the existing concurrent enrollment programs already offered by the 
58.9 	postsecondary institution by:
58.10 	(i) creating new sections within the same high school;
58.11 	(ii) offering the existing course in new high schools; or
58.12 	(iii) supporting the preparation, recruitment, and success of students who are 
58.13 	underrepresented in concurrent enrollment classrooms.
58.14 		Subd. 2.Application. (a) The commissioner shall develop a grant application process. 
58.15 	A grant applicant must:
58.16 	(1) specify the purpose under subdivision 1, paragraph (b), for which the institution is 
58.17 	applying;
58.18 	(2) specify both program and student outcome goals;
58.19 	(3) include student feedback in the development of new programs or the expansion of 
58.20 	existing programs; and
58.21 	(4) demonstrate a commitment to equitable access to concurrent enrollment coursework 
58.22 	for all eligible high school students.
58.23 	(b) A postsecondary institution applying for a grant under subdivision 1, paragraph (b), 
58.24 	clause (3), must provide a 50 percent match for the grant funds.
58.25 		Subd. 3.Report. By December 1 of each year, the office shall submit a report to the 
58.26 	chairs and ranking minority members of the legislative committees with jurisdiction over 
58.27 	higher education regarding:
58.28 	(1) the amount of funds granted under each clause of subdivision 1, paragraph (b);
58.29 	(2) the courses developed by grant recipients and the number of students who enrolled 
58.30 	in the courses under subdivision 1, paragraph (b), clause (1); and
59.1 	(3) the programs expanded and the number of students who enrolled in programs under 
59.2 	subdivision 1, paragraph (b), clause (2).

59.3 	Sec. 36. Minnesota Statutes 2020, section 136F.20, is amended by adding a subdivision 
59.4 	to read:
59.5 		Subd. 4.Mental health awareness program. (a) The board shall implement a mental 
59.6 	health awareness program at each Minnesota state college and university by the start of the 
59.7 	2022-2023 academic year. A mental health awareness program shall include:
59.8 	(1) a web page at each institution that includes links to existing self-assessment resources, 
59.9 	resources connecting students to campus and community-based resources, and emergency 
59.10 	contact information and resources;
59.11 	(2) mandatory mental health first aid training, evidence-based suicide prevention training, 
59.12 	or other similar mental health training for faculty, staff, and students, giving priority to those 
59.13 	who serve in roles that include increased direct contact with students who are experiencing 
59.14 	mental health concerns, such as student housing and campus safety employees. Each college 
59.15 	and university shall identify the appropriate faculty, staff, and students to receive training 
59.16 	based on college or university structure and available funding;
59.17 	(3) a session at each student orientation program that includes information about 
59.18 	maintaining good mental health, the symptoms of mental health conditions common among 
59.19 	college students, and mental health resources and services available to students;
59.20 	(4) a messaging strategy to send students information on available mental health resources 
59.21 	and services at least once per term, and during periods of high academic stress; and
59.22 	(5) distributing the suicide prevention helpline and text line contact information in a 
59.23 	way that increases accessibility and awareness of that information to students.
59.24 	(b) The board shall create and maintain a mental health community of practice including 
59.25 	faculty and staff with subject matter expertise in mental health to identify resources and 
59.26 	best practices to inform campus-based strategies to raise awareness of local and state 
59.27 	resources and implement appropriate training experiences.
59.28 	(c) The board shall make grants to Minnesota State Colleges and Universities to establish 
59.29 	a peer support pilot program designed to assist students with a mental health condition. The 
59.30 	program shall utilize student peers to support students living with mental health conditions 
59.31 	on campus. The peer support program may be housed within the counseling center, wellness 
59.32 	center, or resident assistance programs on campus. The peer support program leaders must 
60.1 	be trained to facilitate discussions on mental health, identify students who may be in crisis, 
60.2 	and refer students to programs for mental health support.

60.3 	Sec. 37. [136F.202] STUDENT SUCCESS BASIC NEEDS BARRIER REDUCTION.
60.4 		Subdivision 1.Basic needs resources. (a) Each college and university shall create and 
60.5 	maintain a web page that clearly identifies basic needs resources available at the college or 
60.6 	university. This web page shall clearly identify at least one staff member, faculty member, 
60.7 	or department as a point of contact to whom students may direct questions. Each college 
60.8 	and university shall also make the information under this paragraph available on the college 
60.9 	or university mobile application, if possible.
60.10 	(b) The board shall pursue the creation of a centralized basic needs online resource web 
60.11 	page that will raise awareness of campus-based resources available at colleges and 
60.12 	universities and local, state, and national resources that can assist in addressing basic needs 
60.13 	insecurity.
60.14 		Subd. 2.Basic needs support trigger. (a) The board shall develop and implement, at 
60.15 	each college and university, initiatives or campaigns to raise awareness among all students 
60.16 	of potential Supplemental Nutrition Assistance Program (SNAP) eligibility including targeted 
60.17 	communications to students who are likely eligible.
60.18 	(b) The board shall develop a financial aid resource trigger that utilizes data from the 
60.19 	Free Application for Federal Student Aid (FAFSA), applications for state financial aid, or 
60.20 	other applicable data to identify students who are likely eligible for assistance or programs 
60.21 	that reduce basic needs insecurity such as SNAP. The board shall utilize this resource trigger 
60.22 	to provide information and support to students on how to access assistance or programs that 
60.23 	reduce basic needs insecurity.

60.24 	Sec. 38. Minnesota Statutes 2020, section 136F.245, is amended to read:
60.25 	136F.245 HUNGER-FREE CAMPUS DESIGNATION.
60.26 		Subdivision 1.Establishment. (a) A Hunger-Free Campus designation for Minnesota 
60.27 	State community and technical colleges is established for public postsecondary institutions 
60.28 	and for nonprofit degree-granting institutions physically located in Minnesota and registered 
60.29 	with the Office of Higher Education under section 136A.63. In order to be awarded the 
60.30 	designation, a campus an institution must meet the following minimum criteria:
60.31 	(1) have an established on-campus food pantry or partnership with a local food bank to 
60.32 	provide regular, on-campus food distributions;
61.1 	(2) provide information to students on SNAP, MFIP, and other programs that reduce 
61.2 	food insecurity. The institution shall notify students in work-study employment of their 
61.3 	potential eligibility for SNAP benefits and provide information to those students that includes 
61.4 	eligibility criteria and how to apply for benefits;
61.5 	(3) hold or participate in one hunger awareness event per academic year;
61.6 	(4) have an established emergency assistance grant that is available to students; and
61.7 	(5) establish a hunger task force that meets a minimum of three times per academic year. 
61.8 	The task force must include at least two students currently enrolled at the college institution.
61.9 	(b) Each institution must reapply at least every four years to maintain the designation.
61.10 		Subd. 2.Designation approval. (a) The statewide student association associations
61.11 	representing the state community and technical colleges and the state universities shall 
61.12 	create an application process and a nonmonetaryan award, and provide final approval for 
61.13 	the designation at each state college and university, respectively.
61.14 	(b) The University of Minnesota Student Association at each institution shall create an 
61.15 	application process and an award and provide final approval for the designation at each 
61.16 	University of Minnesota institution.
61.17 	(c) The Minnesota Association of Private College Students and the Student Advisory 
61.18 	Council member representing Tribal colleges pursuant to section 136A.031, subdivision 3, 
61.19 	shall create an application process and an award and provide final approval for the designation 
61.20 	at each nonprofit degree-granting institution.
61.21 		Subd. 3.Expiration. This section expires July 1, 2023.
61.22 		Subd. 4.Competitive grant. (a) Institutions eligible for a grant under this subdivision 
61.23 	include public postsecondary institutions and Tribal colleges.
61.24 	(b) The commissioner shall establish a competitive grant program to distribute grants 
61.25 	to eligible institutions to meet and maintain the requirements under subdivision 1, paragraph 
61.26 	(a). Initial grants shall be made to institutions that have not earned the designation and 
61.27 	demonstrate a need for funding to meet the hunger-free campus designation requirements. 
61.28 	Sustaining grants shall be made to institutions that have earned the designation and 
61.29 	demonstrate both a partnership with a local food bank or organization that provides regular, 
61.30 	on-campus food distributions and a need for funds to maintain the requirements under 
61.31 	subdivision 1, paragraph (a).
62.1 	(c) The commissioner shall give preference to applications for initial grants and to 
62.2 	applications from institutions with the highest number of federal Pell Grant eligible students 
62.3 	enrolled. The commissioner shall consider the head count at the institution when awarding 
62.4 	grants. The maximum grant award for an initial institution designation is $8,000. The 
62.5 	maximum grant award for sustaining an institution designation is $5,000.
62.6 	(d) The commissioner, in collaboration with student associations representing eligible 
62.7 	institutions, shall create an application process and establish selection criteria for awarding 
62.8 	the grants.
62.9 		Subd. 5.Grant requirements. (a) An eligible institution that receives a grant under 
62.10 	subdivision 4 must:
62.11 	(1) use the grant funds to meet or maintain the minimum criteria of a hunger-free campus 
62.12 	designation under subdivision 1; and
62.13 	(2) match at least 50 percent of the grant amount awarded with funds or in-kind resources.
62.14 	(b) In addition to the requirements of paragraph (a), in order to receive a sustaining grant, 
62.15 	an institution must demonstrate a partnership with a local food bank or organization or other 
62.16 	source of funding that ensures regular, on-campus distributions.

62.17 	Sec. 39. Minnesota Statutes 2020, section 136F.305, is amended to read:
62.18 	136F.305 Z-DEGREES.
62.19 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
62.20 	the meanings given.
62.21 	(b) "Custom textbook" means course materials that are compiled by a publisher at the 
62.22 	direction of a faculty member or, if applicable, the other adopting entity in charge of selecting 
62.23 	course materials for courses taught at a state college or university. Custom textbooks may 
62.24 	include items such as selections from original instructor materials, previously copyrighted 
62.25 	publisher materials, copyrighted third-party works, or elements unique to a specific state 
62.26 	college or university.
62.27 	(b) "Course" means a single unit of teaching in one subject area led by one or more 
62.28 	instructors with a definite start and end date and a fixed roster of students.
62.29 	(c) "Course materials" means a hard-copy or digital book, printed pages of instructional 
62.30 	material, including consumable workbooks, lab manuals, subscriptions, online homework 
62.31 	and quizzing platforms, and other required physical and digital content.
62.32 	(d) "Course section" means an instance of a course.
63.1 	(c) (e) "Incentive" means anything provided to faculty to identify, review, adapt, author, 
63.2 	or adopt open textbooks educational resources.
63.3 	(d) (f) "Open educational resources" means high-quality teaching, learning, and research 
63.4 	resources materials that reside are in the public domain or have been released under an 
63.5 	intellectual property license that permits their free use and repurposing by others, and may 
63.6 	include other resources that are legally available and free of cost to students. Open 
63.7 	educational resources include course materials, modules, custom and open textbooks, articles, 
63.8 	faculty-created content, streaming videos, tests, software, and any other tools, materials, or 
63.9 	techniques used to support access to knowledge textbooks and curricula, syllabi, lecture 
63.10 	notes, assignments, tests, projects, audio, video, and animation.
63.11 	(e) (g) "Open textbook" means a textbook that is distributed using an open copyright a 
63.12 	type of open educational resource released under an intellectual property license that at a 
63.13 	minimum allows a student to obtain, retain, reuse, and redistribute the material at no cost.
63.14 	(h) "Library-curated materials" means diverse resources purchases by the library at no 
63.15 	additional cost to the student for the supplementation or replacement of course materials.
63.16 	(f) (i) "System office" means the Minnesota State Colleges and Universities system 
63.17 	office.
63.18 	(g) (j) "Z-Degree" means a zero-textbook-cost complete associate's or bachelor's degree
63.19 	program that exclusively uses course materials that are no cost to students such as open 
63.20 	educational resources, open textbooks, and library-curated materials. Students may still 
63.21 	incur costs for printing digital materials or for the following: art supplies, calculators, 
63.22 	equipment, fees in statute or policy mandated to be charged by all colleges and universities, 
63.23 	campus discretionary fees established by the board and adopted by the college, personal 
63.24 	property, and service charges or course activities having value outside of the classroom.
63.25 		Subd. 2.Requirement. (a) Three additional colleges must offer the opportunity to earn 
63.26 	a Z-Degree by academic year 2020-2021. A college's Four additional colleges or universities 
63.27 	must offer the opportunity to earn a Z-Degree by academic year 2023-2024. Course offerings 
63.28 	for its in a Z-Degree program must include at least two distinct courses in each transfer 
63.29 	curriculum goal area and at least enough credits in each transfer curriculum goal area to 
63.30 	complete the transfer curriculum package.
63.31 	(b) The Minnesota State Colleges and Universities shall support a continuous process 
63.32 	for colleges and universities to implement Z-Degrees, expand Z-Degree courses and sections, 
63.33 	and sustain existing Z-Degrees.
64.1 		Subd. 3.Open educational resource development. (a) The Minnesota State Colleges 
64.2 	and Universities must develop a program to offer a Z-degree at three additional colleges by 
64.3 	expanding the use of open educational resources, including custom and open textbooks.
64.4 	The system office must provide opportunities for faculty to identify, review, adapt, author,
64.5 	create, share, and adopt open educational resources. The system office must develop 
64.6 	incentives to academic departments to identify, review, adapt, author, or adopt open 
64.7 	educational resources within their academic programs.
64.8 	(b) The programs and incentives developed under this subdivision must be implemented 
64.9 	pursuant to faculty collective bargaining agreements.
64.10 		Subd. 4.Report. Annually by January 15, the board must submit reports by January 13, 
64.11 	2021, and January 12, 2022, to the chairs and ranking minority members of the legislative 
64.12 	committees with jurisdiction over higher education. Each report must include (1) the number 
64.13 	of courses and course sections transitioned to using an open textbook resulting from the 
64.14 	programs in this section into a new Z-Degree, and (2) the total amount of student textbook 
64.15 	savings resulting from the transitions, and (3) information on the types of incentives 
64.16 	developed and offered to faculty and the corresponding funding for those incentives.

64.17 	Sec. 40. Minnesota Statutes 2020, section 136F.38, subdivision 3, is amended to read:
64.18 		Subd. 3.Program eligibility. (a) Scholarships shall be awarded only to a student eligible 
64.19 	for resident tuition, as defined in section 135A.043, who is enrolled in any of the following 
64.20 	programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health 
64.21 	care services; (4) information technology; (5) early childhood; or (6) transportation or (7) 
64.22 	a program of study under paragraph (b).
64.23 	(b) Each institution may add one additional area of study or certification, based on a 
64.24 	workforce shortage for full-time employment requiring postsecondary education that is 
64.25 	unique to the institution's specific region, as reported in the most recent Department of 
64.26 	Employment and Economic Development job vacancy survey data for the economic 
64.27 	development region in which the institution is located. A workforce shortage area is one in 
64.28 	which the job vacancy rate for full-time employment in a specific occupation in a region is 
64.29 	higher than the state average vacancy rate for that same occupation. The institution may 
64.30 	change the area of study or certification based on new data once every two years.
64.31 	(c) The student must be enrolled for at least nine credits in a two-year college in the 
64.32 	Minnesota State Colleges and Universities system to be eligible for first- and second-year 
64.33 	scholarships.
65.1 	(d) The student is eligible for a one-year transfer scholarship if the student transfers from 
65.2 	a two-year college after two or more terms, and the student is enrolled for at least nine 
65.3 	credits in a four-year university in the Minnesota State Colleges and Universities system.

65.4 	Sec. 41. CREDIT FOR PRIOR LEARNING.
 65.5 	(a) Minnesota State Colleges and Universities must expand credit for prior learning to 
65.6 	include as many forms of work-based experiences as possible, working with faculty to 
65.7 	properly credit experiences for students, as appropriate. Minnesota State Colleges and 
65.8 	Universities shall proactively make students aware of the credit for prior learning program 
65.9 	and take steps to ensure gaining credit is easily accessible to students.
65.10 	(b) By February 1, 2022, Minnesota State Colleges and Universities must report to the 
65.11 	chairs and ranking minority members of the legislative committees and divisions with 
65.12 	jurisdiction over higher education on the success of credit for prior learning in granting 
65.13 	credits and its continued development as required under this subdivision.

65.14 	Sec. 42. DIRECT ADMISSIONS PILOT PROGRAM.
 65.15 		Subdivision 1.Authorization. The commissioner of the Office of Higher Education 
65.16 	shall develop a pilot program in consultation with stakeholders including Minnesota State 
65.17 	Colleges and Universities, the University of Minnesota, the Student Advisory Council under 
65.18 	Minnesota Statutes, section 136A.031, Minnesota Department of Education, the Minnesota 
65.19 	Association of Secondary School Principals, and the Minnesota School Board Association 
65.20 	to automatically offer conditional admission into Minnesota public colleges and universities 
65.21 	to Minnesota public high school seniors based on a student's high school grade point average, 
65.22 	high school and college transcript information, standardized tests, statewide assessments, 
65.23 	and other measures as determined by stakeholders.
65.24 		Subd. 2.Pilot design and goals. The pilot program shall establish and, to the extent 
65.25 	feasible, implement a process for leveraging existing kindergarten through grade 12 and 
65.26 	higher education student information systems to automate the admissions process for students. 
65.27 	The pilot program will specifically evaluate the impact this process has on outcomes for 
65.28 	students with lower levels of college knowledge, low-income students, and students from 
65.29 	populations underserved in higher education. Initial pilot program participants must include 
65.30 	high schools with a significant number of students of color, low-income students, or both, 
65.31 	and must achieve statewide representation.
65.32 		Subd. 3.Evaluation and report. By February 1, 2022, the Office of Higher Education 
65.33 	shall report to the chairs and ranking minority members of the legislative committees with 
66.1 	jurisdiction over kindergarten through grade 12 education finance and policy and higher 
66.2 	education on activities occurring under this section. The report must include but is not 
66.3 	limited to information about the pilot program design, implementation challenges and 
66.4 	recommendations, outcomes, and the feasibility of scaling the program to all public high 
66.5 	schools.

66.6 	Sec. 43. REPORT ON THE EXPENSE PATTERNS OF PUBLIC HIGHER 
66.7 	EDUCATION INSTITUTIONS.
 66.8 	(a) The Board of Trustees of the Minnesota State Colleges and Universities shall perform 
66.9 	an internal audit of expenditures to determine the extent to which administrative costs have 
66.10 	increased based on uniform, historical data, and provide a report to the chairs and ranking 
66.11 	minority members of the house of representatives and senate higher education committees, 
66.12 	and the chairs and ranking minority members of the senate Finance Committee, and the 
66.13 	house of representatives Ways and Means Committee by January 1, 2022.
66.14 	(b) The Board of Trustees shall provide the following information for each institution 
66.15 	under its jurisdiction. The Board of Trustees shall use the Integrated Postsecondary Education 
66.16 	Data System (IPEDS) data submitted to the National Center for Education Statistics (NCES) 
66.17 	to ensure uniformity, as institutions that receive federal financial aid funding report their 
66.18 	financial data annually to NCES, and expense classifications are generally consistent 
66.19 	year-to-year and apply to institutions uniformly. The report shall include for each Minnesota 
66.20 	State College and University the following information:
66.21 	(1) the amount and description of expenses included in the following terms as reported 
66.22 	in the integrated postsecondary education data system:
66.23 	(i) instruction;
66.24 	(ii) research;
66.25 	(iii) public service;
66.26 	(iv) academic support;
66.27 	(v) student services;
66.28 	(vi) institutional support; and
66.29 	(vii) other core expenses;
66.30 	(2) historical data on the amount of expenses listed in clause (1) over the previous ten 
66.31 	years, accompanied by a graph reflecting the figures;
67.1 	(3) the current ratio of the institution's spending on institutional support versus instruction, 
67.2 	and the ratio over the previous ten fiscal years, accompanied by a graph reflecting the figures; 
67.3 	and
67.4 	(4) an analysis as to whether the institution's administrative operations are growing 
67.5 	disproportionately in relation to its core academic functions, which may place upward 
67.6 	pressure on the cost of tuition and required fees, if such institution has any ratio under clause 
67.7 	(3) that is greater than the respective median ratio for institutions of its Carnegie classification 
67.8 	and of similar undergraduate enrollments. The variables in clause (3) must be used when 
67.9 	comparing and calculating ratios for institutions of the same Carnegie classification and 
67.10 	similar undergraduate enrollments.
67.11 	(c) The Board of Trustees shall also provide in the report an analysis of administrative 
67.12 	costs at the central office and the increase in staffing over the previous ten years.
67.13 	(d) The Board of Regents of the University of Minnesota is requested to perform an 
67.14 	audit and provide the reports as specified under this section.

67.15 	Sec. 44. TRANSCRIPT ACCESS.
 67.16 		Subdivision 1.Definitions. (a) The terms defined in this subdivision apply to this section.
67.17 	(b) "Debt" means any money, obligation, claim, or sum, due or owed, or alleged to be 
67.18 	due or owed, from a student that appears on the student account. Debt does not include the 
67.19 	fee, if any, charged to all students for the actual costs of providing the transcripts.
67.20 	(c) "School" means any public institution governed by the Board of Trustees of the 
67.21 	Minnesota State Colleges and Universities, private postsecondary educational institution 
67.22 	as defined under section 136A.62 or 136A.821, or public or private entity responsible for 
67.23 	providing transcripts to current or former students of an educational institution. Institutions 
67.24 	governed by the Board of Regents of the University of Minnesota are requested to comply 
67.25 	with this section.
67.26 	(d) "Transcript" means the statement of an individual's academic record, including an 
67.27 	official transcript or the certified statement of an individual's academic record provided by 
67.28 	a school and an unofficial transcript or the uncertified statement of an individual's academic 
67.29 	record provided by a school.
67.30 		Subd. 2.Prohibited practices. A school must not:
67.31 	(1) refuse to provide a transcript for a current or former student because the student owes 
67.32 	a debt to the school if:
68.1 	(i) the debt owed is less than $250;
68.2 	(ii) the student has entered into and, as determined by the institution, is in compliance 
68.3 	with a payment plan with the school;
68.4 	(iii) the transcript request is made by a prospective employer for the student; or
68.5 	(iv) the school has sent the debt for repayment to the Department of Revenue or to a 
68.6 	collection agency, as defined in section 332.31, subdivision 3, external to the institution; 
68.7 	or
68.8 	(2) charge an additional or a higher fee for obtaining a transcript or provide less favorable 
68.9 	treatment of a transcript request because a student owes a debt to the originating school.
68.10 		Subd. 3.Institutional policy. (a) Institutions that use transcript issuance as a tool for 
68.11 	debt collection must have a policy accessible to students that outlines how the institution 
68.12 	collects on debts owed to the institution.
68.13 	(b) Institutions shall seek to use transcript issuance as a tool for debt collection for the 
68.14 	fewest number of cases possible.
68.15 		Subd. 4.Report required. (a) By April 15, 2022, and April 15, 2023, a school subject 
68.16 	to this section must provide the Office of Higher Education a report that includes the 
68.17 	following information for the most recently completed academic year:
68.18 	(1) the school's current policy on transcript holds due to debt owed to the school and the 
68.19 	school's same policy prior to the enactment of this section;
68.20 	(2) the number of students who owe a debt of less than $250 to the school;
68.21 	(3) the number of students who owe a debt of more than $250 to the school;
68.22 	(4) the number of students who have had their transcripts withheld for nonpayment of 
68.23 	a debt;
68.24 	(5) the number of students who entered a payment plan after the hold is placed;
68.25 	(6) what percentage of funds owed by students are collected; and
68.26 	(7) the number of students with debt who were able to obtain transcripts due to this 
68.27 	provision, whether the debt was paid, and whether the students whose transcript hold was 
68.28 	waived reenrolled. The information under this clause is required only to the extent the office 
68.29 	is able to obtain the information.
69.1 	Reports submitted for the first year should include the most recently completed academic 
69.2 	year and the two prior years. The report must also include information on any state, 
69.3 	institutional, or federal COVID funds used to pay for transcript holds.
69.4 	(b) By October 15, 2022, and October 15, 2023, the commissioner shall compile the 
69.5 	data submitted under paragraph (a) and report to the legislature as provided in Minnesota 
69.6 	Statutes, section 3.195, and to the chairs and ranking minority members of the legislative 
69.7 	committees with jurisdiction over higher education on the impact of this section.
69.8 		Subd. 5.Expiration. This section expires June 30, 2024.

69.9 	Sec. 45. ASPIRING MINNESOTA TEACHERS OF COLOR SCHOLARSHIP 
69.10 	PILOT PROGRAM.
 69.11 		Subdivision 1.Scholarship pilot program established. The commissioner must establish 
69.12 	a scholarship pilot program to support undergraduate and graduate students who are preparing 
69.13 	to become teachers, have demonstrated financial need, and belong to racial or ethnic groups 
69.14 	underrepresented in the state's teacher workforce.
69.15 		Subd. 2.Eligibility. (a) To be eligible for a scholarship under this section, an applicant 
69.16 	must:
69.17 	(1) be admitted and enrolled in a teacher preparation program approved by the 
69.18 	Professional Educator Licensing and Standards Board and be seeking initial licensure, or 
69.19 	be enrolled in an eligible institution under section 136A.103 and be completing a two-year 
69.20 	program specifically designed to prepare early childhood educators;
69.21 	(2) affirm to the teacher preparation program or the Office of Higher Education that the 
69.22 	applicant is a person of color or American Indian;
69.23 	(3) be meeting satisfactory academic progress as defined under section 136A.101, 
69.24 	subdivision 10; and
69.25 	(4) demonstrate financial need based on criteria developed by the commissioner.
69.26 	(b) An eligible applicant may receive a scholarship award more than once, but may 
69.27 	receive a total of no more than $25,000 in scholarship awards from the program.
69.28 		Subd. 3.Scholarship award amount. (a) The commissioner must establish a priority 
69.29 	application deadline and must give equal consideration to all eligible applicants regardless 
69.30 	of the order the application was received before the priority application deadline. If the 
69.31 	funds available for the program are insufficient to make full awards to all eligible applicants 
69.32 	who apply on or before the deadline, the commissioner must make awards based on the 
70.1 	expected family contribution of an applicant, prioritizing applicants with the lowest expected 
70.2 	family contributions. If there are multiple complete applications with identical expected 
70.3 	family contributions, those applications may be prioritized by application completion date.
70.4 	(b) The maximum award amount is $10,000 per year for full-time study. For 
70.5 	undergraduate students, full-time study means enrollment in a minimum of 15 or more 
70.6 	credits per term. For graduate students, full-time study means enrollment in a minimum of 
70.7 	six graduate credits or the equivalent.
70.8 	(c) If an eligible applicant is enrolled in a program for one term during the academic 
70.9 	year, the maximum award amount is $5,000. If an eligible applicant is enrolled part time, 
70.10 	the award amount must be prorated on a per-credit basis.
70.11 	(d) Subject to the funds available for the program, and subject to the limitation in 
70.12 	paragraph (e), the minimum award amount established under this section for full-time study 
70.13 	must be no less than $1,000 per year.
70.14 	(e) An eligible applicant's individual award amount must not exceed the applicant's cost 
70.15 	of attendance after deducting: (1) the student's expected family contribution; (2) the sum 
70.16 	of all state or federal grants and gift aid received, including a Pell Grant and state grant; (3) 
70.17 	the sum of all institutional grants, scholarships, tuition waivers, and tuition remission 
70.18 	amounts; and (4) the amount of any private grants or scholarships.
70.19 	(f) Awards are made until available funds are expended. Eligible applicants who 
70.20 	completed their applications on or before the priority application deadline but who did not 
70.21 	receive an award due to insufficient funds, and eligible applicants who completed their 
70.22 	applications after the priority application deadline, shall be placed on an award waiting list 
70.23 	by order of application completion date.
70.24 		Subd. 4.Administration. (a) The commissioner must establish an application process 
70.25 	for individual students and institutions on behalf of all eligible students at the institution 
70.26 	and other guidelines for implementing the scholarship program.
70.27 	(b) A scholarship award must be paid to the eligible applicant's teacher preparation 
70.28 	institution on behalf of the eligible applicant. Awards may be paid only when the institution 
70.29 	has confirmed to the commissioner the applicant's name, racial or ethnic identity, gender, 
70.30 	licensure area sought, and enrollment status.
70.31 		Subd. 5.Service expectation. An applicant who receives a scholarship under this section 
70.32 	is expected to serve as a full-time teacher in Minnesota after completing the program for 
70.33 	which the scholarship was awarded.
71.1 		Subd. 6.Report. By December 15 of each year, the commissioner must submit a full 
71.2 	report on the details of the scholarship program for the previous fiscal year to the legislative 
71.3 	committees with jurisdiction over E-12 and higher education finance and policy. The reports 
71.4 	must also be made available on the Office of Higher Education's website. The reports must 
71.5 	include the following information:
71.6 	(1) the number of applicants and the number of award recipients, each broken down by 
71.7 	postsecondary institution with ten or more recipients;
71.8 	(2) the total number of awards, the total dollar amount of all awards, and the average 
71.9 	award amount;
71.10 	(3) summary data on the racial or ethnic identity, gender, licensure area sought, and 
71.11 	enrollment status of all applicants and award recipients; and
71.12 	(4) other summary data identified by the commissioner as outcome indicators.

71.13 	EFFECTIVE DATE. This section is effective July 1, 2021.

71.14 	Sec. 46. REVISOR INSTRUCTION.
 71.15 	In Minnesota Statutes, the revisor of statutes shall renumber section 136F.245, as amended 
71.16 	by this act, as 135A.137.

71.17 	Sec. 47. REPEALER.
 71.18 	(a) Minnesota Statutes 2020, sections 136A.1703; 136A.823, subdivision 2; and 136F.245, 
71.19 	subdivision 3, are repealed.
71.20 	(b) Minnesota Rules, parts 4830.9050; 4830.9060; 4830.9070; 4830.9080; and 4830.9090,
71.21 	are repealed.

APPENDIX 

Repealed Minnesota Statutes: 211-S0018-1 

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. 

4830.9050SCOPE. 
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. 

4830.9060DEFINITIONS. 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. 

4830.9070ELIGIBLE 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. 

4830.9080INSTITUTIONAL 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. 

4830.9090PAYMENTS 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.