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Minnesota Legislature

Office of the Revisor of Statutes

SF 2415

Conference Committee Report - 91st Legislature (2019 - 2020) Posted on 05/20/2019 08:38pm

KEY: stricken = removed, old language.
underscored = added, new language.
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CONFERENCE COMMITTEE REPORT ON S.F. No. 2415

A bill for an act
relating to higher education; providing funding and policy changes for the Office
of Higher Education, the Minnesota State Colleges and Universities, and the
University of Minnesota; modifying the state grant formula; requiring a report;
appropriating money; amending Minnesota Statutes 2018, sections 13.322,
subdivision 3; 135A.15, subdivision 2; 136A.101, subdivision 5a; 136A.121,
subdivision 6; 136A.1215, subdivision 4; 136A.1275, subdivisions 2, 3; 136A.15,
subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9; 136A.162; 136A.1701,
subdivision 7; 136A.1789, subdivisions 1, 3, 5; 136A.64, subdivisions 1, 5, by
adding a subdivision; 136A.645; 136A.646; 136A.672, by adding a subdivision;
136A.821, by adding subdivisions; 136A.822, subdivisions 6, 10, 12; 136A.8295,
by adding subdivisions; 136A.87; 136F.20, by adding a subdivision; 136F.38;
136F.58, by adding a subdivision; 179A.20, by adding a subdivision; proposing
coding for new law in Minnesota Statutes, chapters 136A; 136F; 137; repealing
Minnesota Statutes 2018, sections 136A.15, subdivisions 2, 7; 136A.1701,
subdivision 12.

May 20, 2019
The Honorable Jeremy R. Miller
President of the Senate

The Honorable Melissa Hortman
Speaker of the House of Representatives

We, the undersigned conferees for S.F. No. 2415 report that we have agreed upon the
items in dispute and recommend as follows:

That the House recede from its amendments and that S.F. No. 2415 be further amended
as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text beginAPPROPRIATIONS.
new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2020" and "2021" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2020, or June 30, 2021, respectively.
"The first year" is fiscal year 2020. "The second year" is fiscal year 2021. "The biennium"
is fiscal years 2020 and 2021.
new text end

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2020
new text end
new text begin2021
new text end

Sec. 2. new text beginMINNESOTA OFFICE OF HIGHER
EDUCATION
new text end

new text begin Subdivision 1.new text end

new text beginTotal Appropriation
new text end

new text begin$
new text end
new text begin 269,133,000
new text end
new text begin$
new text end
new text begin 268,883,000
new text end

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

new text begin Subd. 2.new text end

new text beginState Grants
new text end

new text begin 207,437,000
new text end
new text begin 207,437,000
new text end

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

new text begin Subd. 3.new text end

new text beginChild Care Grants
new text end

new text begin6,694,000
new text end
new text begin6,694,000
new text end

new text begin Subd. 4.new text end

new text beginState Work-Study
new text end

new text begin14,502,000
new text end
new text begin14,502,000
new text end

new text begin Subd. 5.new text end

new text beginInterstate Tuition Reciprocity
new text end

new text begin11,018,000
new text end
new text begin11,018,000
new text end

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

new text begin Subd. 6.new text end

new text beginSafety Officer's Survivors
new text end

new text begin100,000
new text end
new text begin100,000
new text end

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

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

new text begin Subd. 7.new text end

new text beginAmerican Indian Scholarships
new text end

new text begin3,500,000
new text end
new text begin3,500,000
new text end

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

new text begin Subd. 8.new text end

new text beginTribal College Grants
new text end

new text begin150,000
new text end
new text begin150,000
new text end

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

new text begin Subd. 9.new text end

new text beginIntervention for College Attendance
Program Grants
new text end

new text begin796,000
new text end
new text begin796,000
new text end

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

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

new text begin The base for fiscal year 2022 and thereafter is
$785,000.
new text end

new text begin Subd. 10.new text end

new text beginStudent-Parent Information
new text end

new text begin122,000
new text end
new text begin122,000
new text end

new text begin Subd. 11.new text end

new text beginGet Ready!
new text end

new text begin180,000
new text end
new text begin180,000
new text end

new text begin Subd. 12.new text end

new text beginMinnesota Education Equity
Partnership
new text end

new text begin45,000
new text end
new text begin45,000
new text end

new text begin Subd. 13.new text end

new text beginMidwest Higher Education Compact
new text end

new text begin115,000
new text end
new text begin115,000
new text end

new text begin Subd. 14.new text end

new text beginMN Reconnect
new text end

new text begin1,005,000
new text end
new text begin1,005,000
new text end

new text begin For the Office of Higher Education to award
grant funds to students and institutions under
Minnesota Statutes, section 136A.123. This
is a onetime appropriation.
new text end

new text begin Subd. 15.new text end

new text beginUnited Family Medicine Residency
Program
new text end

new text begin501,000
new text end
new text begin501,000
new text end

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

new text begin Subd. 16.new text end

new text beginMnLINK Gateway and Minitex
new text end

new text begin5,905,000
new text end
new text begin5,905,000
new text end

new text begin Subd. 17.new text end

new text beginStatewide Longitudinal Education
Data System
new text end

new text begin1,782,000
new text end
new text begin1,782,000
new text end

new text begin Subd. 18.new text end

new text beginHennepin Healthcare
new text end

new text begin645,000
new text end
new text begin645,000
new text end

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

new text begin Subd. 19.new text end

new text beginCollege Possible
new text end

new text begin500,000
new text end
new text begin500,000
new text end

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

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

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

new text begin (d) By February 1 of each year, College
Possible must report to the chairs and ranking
minority members of the legislative
committees and divisions with jurisdiction
over higher education and E-12 education on
activities funded by this appropriation. The
report must include, but is not limited to,
information about the expansion of College
Possible in Minnesota, the number of College
Possible coaches hired, the expansion within
existing partner high schools, the expansion
of high school partnerships, the number of
high school and college students served, the
total hours of community service by high
school and college students, and a list of
communities and organizations benefiting
from student service hours.
new text end

new text begin Subd. 20.new text end

new text beginSpinal Cord Injury and Traumatic
Brain Injury Research Grant Program
new text end

new text begin3,000,000
new text end
new text begin3,000,000
new text end

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

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

new text begin Subd. 21.new text end

new text beginSummer Academic Enrichment
Program
new text end

new text begin250,000
new text end
new text begin250,000
new text end

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

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

new text begin Subd. 22.new text end

new text beginDual Training Competency Grants;
Office of Higher Education
new text end

new text begin2,000,000
new text end
new text begin2,000,000
new text end

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

new text begin Subd. 23.new text end

new text beginDual Training Competency Grants;
Department of Labor and Industry
new text end

new text begin200,000
new text end
new text begin200,000
new text end

new text begin For transfer to the commissioner of labor and
industry for identification of competency
standards for dual training under Minnesota
Statutes, section 175.45.
new text end

new text begin Subd. 24.new text end

new text beginConcurrent Enrollment Courses
new text end

new text begin340,000
new text end
new text begin340,000
new text end

new text begin (a) $225,000 in fiscal year 2020 and $225,000
in fiscal year 2021 are for grants to develop
new concurrent enrollment courses under
Minnesota Statutes, section 124D.09,
subdivision 10, that satisfy the elective
standard for career and technical education.
Any balance in the first year does not cancel
but is available in the second year.
new text end

new text begin (b) $115,000 in fiscal year 2020 and $115,000
in fiscal year 2021 are for grants to
postsecondary institutions currently
sponsoring a concurrent enrollment course to
expand existing programs. The commissioner
shall determine the application process and
the grant amounts. The commissioner must
give preference to expanding programs that
are at capacity. Any balance in the first year
does not cancel but is available in the second
year.
new text end

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

new text begin (1) the courses developed by grant recipients
and the number of students who enrolled in
the courses under paragraph (a); and
new text end

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

new text begin Subd. 25.new text end

new text beginCampus Sexual Assault Reporting
new text end

new text begin25,000
new text end
new text begin25,000
new text end

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

new text begin Subd. 26.new text end

new text beginCampus Sexual Violence Prevention
and Response Coordinator
new text end

new text begin150,000
new text end
new text begin150,000
new text end

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

new text begin Subd. 27.new text end

new text beginEmergency Assistance for
Postsecondary Students
new text end

new text begin269,000
new text end
new text begin269,000
new text end

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

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

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

new text begin (d) The base for this appropriation in fiscal
year 2022 and all years thereafter is $175,000.
new text end

new text begin Subd. 28.new text end

new text beginGrants to Teacher Candidates
new text end

new text begin1,250,000
new text end
new text begin1,250,000
new text end

new text begin For grants to teacher candidates under
Minnesota Statutes, section 136A.1275. Of
this amount, $750,000 each year is directed
to support candidates belonging to an
underrepresented racial or ethnic group and
meeting other eligibility requirements. If this
dedicated amount is not fully spent because
of a lack of qualifying candidates, any
remaining amount may be awarded to
qualifying teacher candidates in a shortage
area.
new text end

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

new text begin Subd. 29.new text end

new text beginTeacher Shortage Loan Forgiveness
new text end

new text begin200,000
new text end
new text begin200,000
new text end

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

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

new text begin Subd. 30.new text end

new text beginLarge Animal Veterinarian Loan
Forgiveness Program
new text end

new text begin375,000
new text end
new text begin375,000
new text end

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

new text begin Subd. 31.new text end

new text beginAgricultural Educators Loan
Forgiveness
new text end

new text begin50,000
new text end
new text begin50,000
new text end

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

new text begin Subd. 32.new text end

new text beginAviation Degree Loan Forgiveness
Program
new text end

new text begin25,000
new text end
new text begin25,000
new text end

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

new text begin Subd. 33.new text end

new text beginGrants for Students with Intellectual
and Developmental Disabilities
new text end

new text begin200,000
new text end
new text begin200,000
new text end

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

new text begin Subd. 34.new text end

new text beginLoan Repayment Assistance Program
new text end

new text begin25,000
new text end
new text begin25,000
new text end

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

new text begin Subd. 35.new text end

new text beginMinnesota Independence College and
Community
new text end

new text begin1,000,000
new text end
new text begin1,000,000
new text end

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

new text begin Subd. 36.new text end

new text beginStudent Loan Debt Counseling
new text end

new text begin200,000
new text end
new text begin200,000
new text end

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

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

new text begin Subd. 37.new text end

new text beginAgency Administration
new text end

new text begin4,577,000
new text end
new text begin4,327,000
new text end

new text begin Up to $500,000 in fiscal year 2020 and
$250,000 in fiscal year 2021 are available for
communications and outreach to students,
adults, and families to provide information on
the expected costs of college and the various
grant options made available to them through
the state.
new text end

new text begin Subd. 38.new text end

new text beginBalances Forward
new text end

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

new text begin Subd. 39.new text end

new text beginTransfers
new text end

new text begin The commissioner of the Office of Higher
Education may transfer unencumbered
balances from the appropriations in this
section to the state grant appropriation, the
interstate tuition reciprocity appropriation, the
child care grant appropriation, the Indian
scholarship appropriation, the state work-study
appropriation, the get ready appropriation, the
intervention for college attendance
appropriation, the student-parent information
appropriation, the summer academic
enrichment program appropriation, and the
public safety officers' survivors appropriation.
Transfers from the child care or state
work-study appropriations may only be made
to the extent there is a projected surplus in the
appropriation. A transfer may be made only
with prior written notice to the chairs and
ranking minority members of the senate and
house of representatives committees with
jurisdiction over higher education finance.
new text end

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

new text begin Subdivision 1.new text end

new text beginTotal Appropriation
new text end

new text begin$
new text end
new text begin 758,679,000
new text end
new text begin$
new text end
new text begin765,659,000
new text end

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

new text begin Subd. 2.new text end

new text beginCentral Office and Shared Services
Unit
new text end

new text begin33,074,000
new text end
new text begin33,074,000
new text end

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

new text begin Subd. 3.new text end

new text beginOperations and Maintenance
new text end

new text begin 721,490,000
new text end
new text begin728,470,000
new text end

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

new text begin (1) for the 2019-2020 academic year, the
tuition rate at colleges must not exceed the
2018-2019 academic year rate by more than
three percent, and for the 2020-2021 academic
year, the tuition rate must not exceed the
2019-2020 academic year rate by more than
three percent;
new text end

new text begin (2) for the 2019-2020 academic year, the
tuition rates for undergraduates at universities
must not exceed the 2018-2019 academic year
rate by more than three percent, except as
provided under clause (3), and for the
2020-2021 academic year, the tuition rate must
not exceed the 2019-2020 academic year rate
by more than three percent;
new text end

new text begin (3) for the 2019-2020 academic year, the
university with the lowest 2018-2019
academic year banded tuition rate may
increase its tuition to a tuition rate up to or
equal to the 2019-2020 academic year tuition
rate of the university with the second lowest
2018-2019 academic year banded tuition rate.
For the 2020-2021 academic year, the tuition
rate must not exceed the 2019-2020 academic
year rate by more than three percent; and
new text end

new text begin (4) for the 2019-2020 and 2020-2021
academic years, the differential tuition rate for
online courses must not exceed the 2018-2019
academic year rate.
new text end

new text begin The student tuition relief may not be offset by
increases in mandatory fees, charges, or other
assessments to the student. Except under
clause (4), colleges and universities are
permitted to increase differential tuition
charges in fiscal years 2020 and 2021 where
costs for course or program delivery have
increased due to extraordinary circumstances
beyond the control of the college or university.
Rates and rationale must be approved by the
Board of Trustees.
new text end

new text begin (b) $3,000,000 in fiscal year 2020 and
$3,000,000 in fiscal year 2021 are to provide
supplemental aid for operations and
maintenance to the president of each two-year
institution in the system with at least one
campus that is not located in a metropolitan
county, as defined in Minnesota Statutes,
section 473.121, subdivision 4. The board
shall transfer $100,000 for each campus not
located in a metropolitan county in each year
to the president of each institution that
includes such a campus, provided that no
institution may receive more than $300,000
in total supplemental aid each year.
new text end

new text begin (c) The Board of Trustees is requested to help
Minnesota close the attainment gap by funding
activities which improve retention and
completion for students of color.
new text end

new text begin (d) $2,000,000 in fiscal year 2020 and
$6,000,000 in fiscal year 2021 are for
workforce development scholarships under
Minnesota Statutes, section 136F.38. The base
for fiscal year 2022 and thereafter is
$4,000,000.
new text end

new text begin (e) $300,000 in fiscal year 2020 and $300,000
in fiscal year 2021 are for transfer to the Cook
County Higher Education Board to provide
educational programming, workforce
development, and academic support services
to remote regions in northeastern Minnesota.
The Cook County Higher Education Board
shall continue to provide information to the
Board of Trustees on the number of students
served, credit hours delivered, and services
provided to students.
new text end

new text begin (f) This appropriation includes $40,000 in
fiscal year 2020 and $40,000 in fiscal year
2021 to implement the sexual assault policies
required under Minnesota Statutes, section
135A.15.
new text end

new text begin (g) This appropriation includes $8,000,000 in
fiscal year 2020 and $8,000,000 in fiscal year
2021 for upgrading the Integrated Statewide
Record System.
new text end

new text begin (h) This appropriation includes $250,000 in
fiscal year 2020 and $250,000 in fiscal year
2021 for developing and offering courses to
implement the Z-Degree textbook program
under Minnesota Statutes, section 136F.305.
This is a onetime appropriation.
new text end

new text begin (i) This appropriation includes $500,000 in
fiscal year 2020 and $500,000 in fiscal year
2021 to support local partnership programs at
Minnesota State Colleges and Universities
campuses. Local partnerships must be
comprised of campuses and local businesses
and may also include K-12 school districts,
trade associations, local chambers of
commerce, and economic development
authorities. Funds must be used to develop
new and accelerate existing employer-led
workforce exposure programs, technical
education pathway programs, dual-training
programs, internships, youth skills training
programs, and other industry-recognized
programs in high-growth, high-demand
industries. Priority consideration for funding
shall be given to local partnerships whose
program addresses an industry with a
demonstrated workforce shortage. Local
partnerships must demonstrate how business
and industry are providing financial and
in-kind contributions to the program. This is
a onetime appropriation.
new text end

new text begin (j) This appropriation includes $250,000 in
fiscal year 2020 and $250,000 in fiscal year
2021 for leveraged equipment acquisition. For
the purposes of this section, "equipment"
means equipment for instructional purposes
for programs that the board has determined
would produce graduates with skills for which
there is a high employer need within the state.
An equipment acquisition may be made using
this appropriation only if matched by cash or
in-kind contributions from nonstate sources.
This is a onetime appropriation.
new text end

new text begin (k) $125,000 in fiscal year 2020 and $125,000
in fiscal year 2021 are for the mental health
services for students required under Minnesota
Statutes, section 136F.20, subdivision 3. This
is a onetime appropriation.
new text end

new text begin (l) The total operations and maintenance base
for fiscal year 2022 and thereafter is
$725,345,000.
new text end

new text begin Subd. 4.new text end

new text beginLearning Network of Minnesota
new text end

new text begin4,115,000
new text end
new text begin4,115,000
new text end

Sec. 4. new text beginBOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
new text end

new text begin Subdivision 1.new text end

new text beginTotal Appropriation
new text end

new text begin$
new text end
new text begin671,673,000
new text end
new text begin$
new text end
new text begin673,413,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2020
new text end
new text begin2021
new text end
new text begin General
new text end
new text begin669,516,000
new text end
new text begin671,256,000
new text end
new text begin Health Care Access
new text end
new text begin2,157,000
new text end
new text begin2,157,000
new text end

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

new text begin Subd. 2.new text end

new text beginOperations and Maintenance
new text end

new text begin601,078,000
new text end
new text begin 602,818,000
new text end

new text begin (a)(1) The Board of Regents is requested to
establish tuition rates as follows: for the
2019-2020 academic year, the resident
undergraduate tuition rate is requested to not
exceed the 2018-2019 academic year rate by
more than three percent, and for the 2020-2021
academic year, the resident undergraduate
tuition rate is requested to not exceed the
2019-2020 academic year rate by more than
three percent; and
new text end

new text begin (2) for the 2019-2020 and 2020-2021
academic years, it is requested that the
differential tuition rate and fees for online
courses not exceed the 2018-2019 academic
year rate and fees.
new text end

new text begin (b) $15,000,000 in fiscal year 2020 and
$15,000,000 in fiscal year 2021 are to: (1)
increase the medical school's research
capacity; (2) improve the medical school's
ranking in National Institutes of Health
funding; (3) ensure the medical school's
national prominence by attracting and
retaining world-class faculty, staff, and
students; (4) invest in physician training
programs in rural and underserved
communities; and (5) translate the medical
school's research discoveries into new
treatments and cures to improve the health of
Minnesotans.
new text end

new text begin (c) $7,800,000 in fiscal year 2020 and
$7,800,000 in fiscal year 2021 are for health
training restoration. This appropriation must
be used to support all of the following: (1)
faculty physicians who teach at eight residency
program sites, including medical resident and
student training programs in the Department
of Family Medicine; (2) the Mobile Dental
Clinic; and (3) expansion of geriatric
education and family programs.
new text end

new text begin (d) $4,000,000 in fiscal year 2020 and
$4,000,000 in fiscal year 2021 are for the
Minnesota Discovery, Research, and
InnoVation Economy funding program for
cancer care research.
new text end

new text begin (e) $500,000 in fiscal year 2020 and $500,000
in fiscal year 2021 are for the University of
Minnesota, Morris branch, to cover the costs
of tuition waivers under Minnesota Statutes,
section 137.16.
new text end

new text begin Subd. 3.new text end

new text beginPrimary Care Education Initiatives
new text end

new text begin2,157,000
new text end
new text begin2,157,000
new text end

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

new text begin Subd. 4.new text end

new text beginSpecial Appropriations
new text end

new text begin (a) Agriculture and Extension Service
new text end
new text begin42,922,000
new text end
new text begin42,922,000
new text end

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

new text begin (1) the agricultural experiment stations and
Minnesota Extension Service must convene
agricultural advisory groups to focus research,
education, and extension activities on producer
needs and implement an outreach strategy that
more effectively and rapidly transfers research
results and best practices to producers
throughout the state;
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (5) by February 1, 2021, the Board of Regents
must submit a report to the legislative
committees and divisions with jurisdiction
over agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this paragraph.
new text end

new text begin (b) Health Sciences
new text end
new text begin9,204,000
new text end
new text begin9,204,000
new text end

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

new text begin (c) new text beginCollege of Science and Engineering
new text end
new text end
new text begin1,140,000
new text end
new text begin1,140,000
new text end

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

new text begin (d) System Special
new text end
new text begin7,181,000
new text end
new text begin7,181,000
new text end

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

new text begin $2,000,000 in fiscal year 2020 and $2,000,000
in fiscal year 2021 are for the Natural
Resources Research Institute to invest in
applied research for economic development.
new text end

new text begin (e) University of Minnesota and Mayo
Foundation Partnership
new text end
new text begin7,991,000
new text end
new text begin7,991,000
new text end

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

new text begin (1) $7,491,000 in fiscal year 2020 and
$7,491,000 in fiscal year 2021 are for the
direct and indirect expenses of the
collaborative research partnership between the
University of Minnesota and the Mayo
Foundation for research in biotechnology and
medical genomics. An annual report on the
expenditure of these funds must be submitted
to the governor and the chairs of the legislative
committees responsible for higher education
finance by June 30 of each fiscal year.
new text end

new text begin (2) $500,000 in fiscal year 2020 and $500,000
in fiscal year 2021 are to award competitive
grants to conduct research into the prevention,
treatment, causes, and cures of Alzheimer's
disease and other dementias.
new text end

new text begin Subd. 5.new text end

new text beginAcademic Health Center
new text end

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

Sec. 5. new text beginMAYO CLINIC
new text end

new text begin Subdivision 1.new text end

new text beginTotal Appropriation
new text end

new text begin$
new text end
new text begin1,351,000
new text end
new text begin$
new text end
new text begin1,351,000
new text end

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

new text begin Subd. 2.new text end

new text beginMedical School
new text end

new text begin665,000
new text end
new text begin665,000
new text end

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

new text begin Subd. 3.new text end

new text beginFamily Practice and Graduate
Residency Program
new text end

new text begin686,000
new text end
new text begin686,000
new text end

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

ARTICLE 2

HIGHER EDUCATION

Section 1.

Minnesota Statutes 2018, section 13.322, subdivision 3, is amended to read:


Subd. 3.

Minnesota Office of Higher Education.

(a) General. Data sharing involving
the Minnesota Office of Higher Education and other institutions is governed by section
136A.05
.

(b) Student financial aid. Data collected and used by the Minnesota Office of Higher
Education on applicants for financial assistance are classified under section 136A.162.

(c) Minnesota college savings plan data. Account owner data, account data, and data
on beneficiaries of accounts under the Minnesota college savings plan are classified under
section 136G.05, subdivision 10.

(d) School financial records. Financial records submitted by schools registering with
the Minnesota Office of Higher Education are classified under section 136A.64.

(e) Enrollment and financial aid data. Data collected from eligible institutions on
student enrollment and federal and state financial aid are governed by sections 136A.121,
subdivision 18, and 136A.1701, subdivision 11.

new text begin (f) Student complaint data. Data collected from student complaints are governed by
sections 136A.672, subdivision 6, and 136A.8295, subdivision 7.
new text end

Sec. 2.

Minnesota Statutes 2018, section 127A.70, subdivision 2, is amended to read:


Subd. 2.

Powers and duties; report.

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

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

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

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

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

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

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

(2) evaluate the effectiveness of new text beginearly care, new text endeducationalnew text begin,new text end and workforce programs; and

(3) evaluate the deleted text beginrelationship betweendeleted text endnew text begin relationships among early care,new text end educationnew text begin,new text end and
workforce outcomes, consistent with section 124D.49.

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

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

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

Sec. 3.

Minnesota Statutes 2018, section 135A.15, subdivision 2, is amended to read:


Subd. 2.

Victims' rights.

The policy required under subdivision 1 shall, at a minimum,
require that students and employees be informed of the policy, and shall include provisions
for:

(1) filing criminal charges with local law enforcement officials in sexual assault cases;

(2) the prompt assistance of campus authorities, at the request of the victim, in notifying
the appropriate law enforcement officials and disciplinary authorities of a sexual assault
incident;

(3) allowing sexual assault victims to decide whether to report a case to law enforcement;

(4) requiring campus authorities to treat sexual assault victims with dignity;

(5) requiring campus authorities to offer sexual assault victims fair and respectful health
care, counseling services, or referrals to such services;

(6) preventing campus authorities from suggesting to a victim of sexual assault that the
victim is at fault for the crimes or violations that occurred;

(7) preventing campus authorities from suggesting to a victim of sexual assault that the
victim should have acted in a different manner to avoid such a crime;

(8) subject to subdivision 10, protecting the privacy of sexual assault victims by only
disclosing data collected under this section to the victim, persons whose work assignments
reasonably require access, and, at a sexual assault victim's request, police conducting a
criminal investigation;

(9) an investigation and resolution of a sexual assault complaint by campus disciplinary
authorities;

(10) a sexual assault victim's participation in and the presence of the victim's attorney
or other support person who is not a fact witness to the sexual assault at any meeting with
campus officials concerning the victim's sexual assault complaint or campus disciplinary
proceeding concerning a sexual assault complaint;

(11) ensuring that a sexual assault victim may decide when to repeat a description of
the incident of sexual assault;

(12) notice to a sexual assault victim of the availability of a campus or local program
providing sexual assault advocacy servicesnew text begin and information on free legal resources and
services
new text end;

(13) notice to a sexual assault victim of the outcome of any campus disciplinary
proceeding concerning a sexual assault complaint, consistent with laws relating to data
practices;

(14) the complete and prompt assistance of campus authorities, at the direction of law
enforcement authorities, in obtaining, securing, and maintaining evidence in connection
with a sexual assault incident;

(15) the assistance of campus authorities in preserving for a sexual assault complainant
or victim materials relevant to a campus disciplinary proceeding;

(16) during and after the process of investigating a complaint and conducting a campus
disciplinary procedure, the assistance of campus personnel, in cooperation with the
appropriate law enforcement authorities, at a sexual assault victim's request, in shielding
the victim from unwanted contact with the alleged assailant, including transfer of the victim
to alternative classes or to alternative college-owned housing, if alternative classes or housing
are available and feasible;

(17) forbidding retaliation, and establishing a process for investigating complaints of
retaliation, against sexual assault victims by campus authorities, the accused, organizations
affiliated with the accused, other students, and other employees;

(18) at the request of the victim, providing students who reported sexual assaults to the
institution and subsequently choose to transfer to another postsecondary institution with
information about resources for victims of sexual assault at the institution to which the
victim is transferring; and

(19) consistent with laws governing access to student records, providing a student who
reported an incident of sexual assault with access to the student's description of the incident
as it was reported to the institution, including if that student transfers to another postsecondary
institution.

Sec. 4.

Minnesota Statutes 2018, section 136A.101, subdivision 5a, is amended to read:


Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means the
amount of a family's contribution to a student's cost of attendance, as determined by a federal
need analysis. For dependent students, the assigned family responsibility is deleted text begin84deleted text endnew text begin 82new text end percent
of the parental contribution. For independent students with dependents other than a spouse,
the assigned family responsibility is deleted text begin76deleted text endnew text begin 74new text end percent of the student contribution. For
independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin40deleted text endnew text begin 38new text end percent of the student contribution.

Sec. 5.

Minnesota Statutes 2018, section 136A.121, subdivision 6, is amended to read:


Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of: (1) an
allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or a tuition and fee maximum if one is established in law. If no living and miscellaneous
expense allowance is established in law, the allowance is equal to deleted text begin101deleted text end new text begin106 new text endpercent of the
federal poverty guidelines for a one person household in Minnesota for nine months. If no
tuition and fee maximum is established in law, the allowance for tuition and fees is equal
to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
two-year programs, an amount equal to the highest tuition and fees charged at a public
two-year institution, or for four-year programs, an amount equal to the highest tuition and
fees charged at a public university.

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

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

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

Sec. 6.

Minnesota Statutes 2018, section 136A.1215, subdivision 4, is amended to read:


Subd. 4.

new text beginMaximum new text endgrant amounts.

(a) The amount of a grant under this section equals
the tuition and fees at the student's postsecondary institution, minus:

(1) any Pell or state grants the student receives; and

(2) any institutional aid the student receives.

(b) If appropriations are insufficient to provide the full amount calculated under paragraph
(a) to all eligible applicants, the commissioner must reduce the deleted text begingrants of alldeleted text end new text begin maximum grant
amount available to
new text endrecipients deleted text beginproportionallydeleted text end.

Sec. 7.

new text begin[136A.123] MN RECONNECT PROGRAM.
new text end

new text begin Subdivision 1.new text end

new text beginProgram administration.new text end

new text beginThe commissioner of the Office of Higher
Education must administer a credential completion program for adult learners consistent
with this section.
new text end

new text begin Subd. 2.new text end

new text beginDefinitions.new text end

new text begin(a) For the purpose of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Cost of attendance" means tuition and required fees charged by the institution and
the campus-based budget used for federal financial aid for food, housing, books, supplies,
transportation, and miscellaneous expenses.
new text end

new text begin (c) "Eligible student" means an individual who:
new text end

new text begin (1) meets the eligibility requirements in section 136A.121, subdivision 2, paragraphs
(a), clauses (1), (2), (4), and (5), and (b);
new text end

new text begin (2) is 25 years old or older and under 62;
new text end

new text begin (3) has previously completed a minimum of 15 credits in a certificate or degree-seeking
program that have been accepted by a participating institution;
new text end

new text begin (4) has not enrolled in any Minnesota institution in the two academic years prior to
enrollment at a participating institution;
new text end

new text begin (5) has not completed a certificate, diploma, or degree of 16 credits or longer in length
prior to enrollment at a participating institution in this program;
new text end

new text begin (6) has enrolled in three or more credits each term;
new text end

new text begin (7) reports a family adjusted gross income of $85,000 or less; and
new text end

new text begin (8) has applied for the grant on the form required by the commissioner.
new text end

new text begin (d) "Grant" means funds awarded under this section.
new text end

new text begin (e) "Participating institution" means a two-year institution within the Minnesota State
Colleges and Universities System selected under subdivision 5.
new text end

new text begin (f) "Program" means a certificate, diploma, or degree program offered by a participating
institution.
new text end

new text begin (g) To the extent not inconsistent with this section, the definitions in section 136A.101
apply to this section.
new text end

new text begin Subd. 3.new text end

new text beginStudent application.new text end

new text beginApplication for a grant must be made by a FAFSA or
state aid application and any additional form required by the commissioner. Applications
are due on a schedule set by the commissioner.
new text end

new text begin Subd. 4.new text end

new text beginStudent grants.new text end

new text begin(a) The commissioner must, to the extent funds are available,
make grants to eligible students to attend a program at a participating institution. The amount
of a grant per spring or fall academic term is the lesser of $1,000 or the difference between
the cost of attendance and other scholarships or grants received by the student. If the
appropriation is greater than the projected grants for the spring and fall terms, the
commissioner may award grants up to $1,000 per student for summer or interim terms.
new text end

new text begin (b) An eligible student may renew a student grant by applying for renewal on a form
provided by the commissioner and on a schedule set by the commissioner. An eligible
student may receive a student grant under this section for up to six semesters or the
equivalent.
new text end

new text begin Subd. 5.new text end

new text beginParticipating institutions.new text end

new text begin(a) A two-year institution within the Minnesota
State Colleges and Universities System may apply to become a participating institution.
The commissioner, in conjunction with a selection committee, shall select institutions
through a competitive application process. Priority must be given to institutions participating
in the most recently completed fiscal year.
new text end

new text begin (b) Participating institutions must:
new text end

new text begin (1) demonstrate a commitment to adult learners through adoption of best practice policies,
programs, and services; and
new text end

new text begin (2) complete an adult learner assessment prior to participation.
new text end

new text begin Subd. 6.new text end

new text beginInstitutional grants.new text end

new text beginParticipating institutions may receive funds for student
advising, resolving student financial holds, and improving services to eligible students.
new text end

Sec. 8.

Minnesota Statutes 2018, section 136A.1275, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

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

(1) be enrolled in a Professional Educator Licensing and Standards Board-approved
teacher preparation program that requires at least 12 weeks of student teaching in order to
be recommended for deleted text begina full professionaldeleted text endnew text begin any Tier 3new text end teaching license;

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

deleted text begin (3) intend to teach in a shortage area or belong to an underrepresented racial or ethnic
group; and
deleted text end

deleted text begin (4)deleted text endnew text begin (3)new text end be meeting satisfactory academic progress as defined under section 136A.101,
subdivision 10deleted text begin.deleted text endnew text begin; and
new text end

new text begin (4) intend to teach in a shortage area or belong to a racial or ethnic group underrepresented
in the Minnesota teacher workforce. Intent can be documented based on the teacher license
field the student is pursuing or a statement of intent to teach in an economic development
region defined as a shortage area in the year the student receives a grant.
new text end

Sec. 9.

Minnesota Statutes 2018, section 136A.1275, subdivision 3, is amended to read:


Subd. 3.

Administration; repayment.

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

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

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

Sec. 10.

Minnesota Statutes 2018, section 136A.15, subdivision 8, is amended to read:


Subd. 8.

Eligible student.

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

Sec. 11.

Minnesota Statutes 2018, section 136A.16, subdivision 1, is amended to read:


Subdivision 1.

Designation.

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

Sec. 12.

Minnesota Statutes 2018, section 136A.16, subdivision 2, is amended to read:


Subd. 2.

Rulesnew text begin, policies, and conditionsnew text end.

The office shall adopt policies and new text beginmay
new text end prescribe appropriate rules new text beginand conditions new text endto carry out the purposes of sections 136A.15 to
deleted text begin 136A.1702deleted text end new text begin136A.1704new text end. deleted text beginThe policies and rules except as they relate to loans under section
136A.1701 must be compatible with the provisions of the National Vocational Student Loan
Insurance Act of 1965 and the provisions of title IV of the Higher Education Act of 1965,
and any amendments thereof.
deleted text end

Sec. 13.

Minnesota Statutes 2018, section 136A.16, subdivision 5, is amended to read:


Subd. 5.

Agencies.

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

Sec. 14.

Minnesota Statutes 2018, section 136A.16, subdivision 8, is amended to read:


Subd. 8.

Investment.

Money made available to the office that is not immediately needed
for the purposes of sections 136A.15 to deleted text begin136A.1702deleted text endnew text begin 136A.1704new text end may be invested by the
office. The money must be invested in bonds, certificates of indebtedness, and other fixed
income securities, except preferred stocks, which are legal investments for the permanent
school fund. The money may also be invested in prime quality commercial paper that is
eligible for investment in the state employees retirement fund. All interest and profits from
such investments inure to the benefit of the office or may be pledged for security of bonds
issued by the office or its predecessors.

Sec. 15.

Minnesota Statutes 2018, section 136A.16, subdivision 9, is amended to read:


Subd. 9.

Staff.

The office may employ the professional and clerical staff the commissioner
deems necessary for the proper administration of the loan programs established and defined
by sections 136A.15 to deleted text begin136A.1702deleted text endnew text begin 136A.1704new text end.

Sec. 16.

Minnesota Statutes 2018, section 136A.162, is amended to read:


136A.162 CLASSIFICATION OF DATA.

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

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

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

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 17.

Minnesota Statutes 2018, section 136A.1701, subdivision 7, is amended to read:


Subd. 7.

Repayment of loans.

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

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

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

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

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

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

Sec. 18.

new text begin[136A.1788] STUDENT LOAN DEBT COUNSELING.
new text end

new text begin Subdivision 1.new text end

new text beginGrant.new text end

new text beginA program is established under the Office of Higher Education
to provide a grant to a Minnesota-based nonprofit qualified debt counseling organization
to provide individual student loan debt repayment counseling to borrowers who are Minnesota
residents concerning loans obtained to attend a postsecondary institution. The number of
individuals receiving counseling may be limited to those capable of being served with
available appropriations for that purpose. A goal of the counseling program is to provide
two counseling sessions to at least 75 percent of borrowers receiving counseling.
new text end

new text begin The purpose of the counseling is to assist borrowers to:
new text end

new text begin (1) understand their loan and repayment options;
new text end

new text begin (2) manage loan repayment; and
new text end

new text begin (3) develop a workable budget based on the borrower's full financial situation regarding
income, expenses, and other debt.
new text end

new text begin Subd. 2.new text end

new text beginQualified debt counseling organization.new text end

new text beginA qualified debt counseling
organization is an organization that:
new text end

new text begin (1) has experience in providing individualized student loan counseling;
new text end

new text begin (2) employs certified financial counselors; and
new text end

new text begin (3) is based in Minnesota and has offices at multiple rural and metropolitan area locations
in the state to provide in-person counseling.
new text end

new text begin Subd. 3.new text end

new text beginGrant application and award.new text end

new text begin(a) Applications for a grant shall be on a form
created by the commissioner and on a schedule set by the commissioner. Among other
provisions, the application must include a description of:
new text end

new text begin (1) the characteristics of borrowers to be served;
new text end

new text begin (2) the services to be provided and a timeline for implementation of the services;
new text end

new text begin (3) how the services provided will help borrowers manage loan repayment;
new text end

new text begin (4) specific program outcome goals and performance measures for each goal; and
new text end

new text begin (5) how the services will be evaluated to determine whether the program goals were
met.
new text end

new text begin (b) The commissioner shall select one grant recipient for a two-year award every two
years. A grant may be renewed biennially.
new text end

new text begin Subd. 4.new text end

new text beginProgram evaluation.new text end

new text begin(a) The grant recipient must submit a report to the
commissioner by January 15 of the second year of the grant award. The report must evaluate
and measure the extent to which program outcome goals have been met.
new text end

new text begin (b) The grant recipient must collect, analyze, and report on participation and outcome
data that enable the office to verify the outcomes.
new text end

new text begin (c) The evaluation must include information on the number of borrowers served with
on-time student loan payments, the number who brought their loans into good standing, the
number of student loan defaults, the number who developed a monthly budget plan, and
other information required by the commissioner. Recipients of the counseling must be
surveyed on their opinions about the usefulness of the counseling and the survey results
must be included in the report.
new text end

new text begin Subd. 5.new text end

new text beginReport to legislature.new text end

new text beginBy February 1 of the second year of each grant award,
the commissioner must submit a report to the committees in the legislature with jurisdiction
over higher education finance regarding grant program outcomes.
new text end

Sec. 19.

Minnesota Statutes 2018, section 136A.1789, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

(a) For purposes of this section, the terms in this subdivision
have the meanings given them.

(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's
or bachelor's degree new text beginpreparing individuals to obtain an aviation mechanic's certificate from
the Federal Aviation Administration
new text endfrom a postsecondary institution located in Minnesota,
and (2) has obtained an aviation mechanic's certificate from the Federal Aviation
Administration.

(c) "Qualified education loan" means a government, commercial, or foundation loan
used by an individual for actual costs paid for tuition deleted text beginto a postsecondary institution located
in Minnesota for a professional flight training degree
deleted text endnew text begin and reasonable educational and living
expenses related to the postsecondary education of the qualified aircraft technician or
qualified pilot
new text end.

(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's
degree deleted text beginin professional flight trainingdeleted text endnew text begin preparing individuals to obtain an airline transport
pilot certificate
new text end from a postsecondary institution located in Minnesota, and (2) is in the
process of obtaining or has obtained an airline transport pilot certificate.

Sec. 20.

Minnesota Statutes 2018, section 136A.1789, subdivision 3, is amended to read:


Subd. 3.

Eligibility.

(a) To be eligible to participate in the loan forgiveness program
under this section, an individual must:

(1) be a qualified pilot or qualified aircraft technician;

(2) have qualified education loans;

(3) reside in Minnesota; and

(4) submit an application to the commissioner in the form and manner prescribed by the
commissioner.

(b) An applicant selected to participate must sign a contract to agree to serve a deleted text beginminimum
one-year
deleted text endnew text begin five-yearnew text end full-time service obligation according to subdivision 4. To complete the
service obligation, the applicant must work full time in Minnesota as a qualified pilot or
qualified aircraft technician. A participant must complete one year of service under this
paragraph for each year the participant receives an award under this section.

Sec. 21.

Minnesota Statutes 2018, section 136A.1789, subdivision 5, is amended to read:


Subd. 5.

Loan forgiveness.

(a) The commissioner may select eligible applicants each
year for participation in the aviation degree loan forgiveness program, within the limits of
available funding. Applicants are responsible for securing their own qualified education
loans.

(b) For each year that the participant meets the eligibility requirements under subdivision
3, the commissioner must make annual disbursements directly to:

(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified
education loans, whichever is less; and

(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's
qualified education loans, whichever is less.

(c) An individual may receive disbursements under this section for a maximum of five
years.

(d) The participant must provide the commissioner with verification that the full amount
of the loan repayment disbursement received by the participant has been applied toward the
designated qualified education loan. After each disbursement, verification must be received
by the commissioner and approved before the next repayment disbursement is made.

(e) If the participant receives a disbursement in the participant's fifth year of eligibility,
the participant must provide the commissioner with verification that the full amount of the
participant's final loan repayment disbursement was applied toward the designated qualified
education loan. If a participant does not provide the verification as required under this
paragraph within deleted text beginsixdeleted text endnew text begin 12new text end months of receipt of the final disbursement, the commissioner must
collect from the participant the new text begintotal new text endamount deleted text beginof the final disbursementdeleted text endnew text begin paid to the participant
under the loan forgiveness program plus interest at a rate established according to section
270C.40
new text end. The commissioner must deposit the money collected in the aviation degree loan
forgiveness program account.

Sec. 22.

Minnesota Statutes 2018, section 136A.64, subdivision 1, is amended to read:


Subdivision 1.

Schools to provide information.

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

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

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

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

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

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

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

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

(ii) the current institutional officers;

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

(iv) a description of all school facilities;

(v) a description of all current course offerings;

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

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

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

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

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

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

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

Sec. 23.

Minnesota Statutes 2018, section 136A.64, subdivision 5, is amended to read:


Subd. 5.

Public information.

All information submitted to the office is public information
except financialnew text begin records, student complaint data,new text end and accreditation records and deleted text begininformationdeleted text endnew text begin
reports
new text end.new text begin Except for accreditation reports, new text endthe office may disclose deleted text beginfinancialdeleted text endnew text begin anynew text end records or
information new text beginsubmitted to the office:
new text end

new text begin (1) to law enforcement officials; or
new text end

new text begin (2) in connection with a legal or administrative proceeding to:
new text end

new text begin (i) new text enddeleted text begintodeleted text end defend its decision to approve or disapprove granting of degrees or the use of a
name deleted text beginordeleted text endnew text begin;
new text end

new text begin (ii) defend new text endits deleted text begindecisionsdeleted text end new text begindecision new text endto revoke the new text begininstitution's new text endapproval deleted text beginat a hearing under
chapter 14 or other legal proceedings
deleted text endnew text begin; or
new text end

new text begin (iii) enforce a requirement of lawnew text end.

Sec. 24.

Minnesota Statutes 2018, section 136A.64, is amended by adding a subdivision
to read:


new text begin Subd. 8.new text end

new text beginDisclosure.new text end

new text beginSchools must disclose on their website, student handbook, and
student catalog the student complaint process under section 136A.672 to students.
new text end

Sec. 25.

Minnesota Statutes 2018, section 136A.645, is amended to read:


136A.645 SCHOOL CLOSURE.

(a) When a school deleted text begindecidesdeleted text endnew text begin intendsnew text end to cease postsecondary education operations, deleted text beginit must
cooperate with the office in assisting students to find alternative means to complete their
studies with a minimum of disruption, and inform the office of the following
deleted text endnew text begin announces its
closure, or is informed by the office that the office anticipates the school's closure due to
its registration status or ability to meet criteria for approval under section 136A.65, the
school must provide the office
new text end:

deleted text begin (1) the planned date for termination of postsecondary education operations;
deleted text end

deleted text begin (2) the planned date for the transfer of the student records;
deleted text end

deleted text begin (3) confirmation of the name and address of the organization to receive and hold the
student records; and
deleted text end

deleted text begin (4) the official at the organization receiving the student records who is designated to
provide official copies of records or transcripts upon request.
deleted text end

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

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

new text begin (3) a report of refunds due to any student and the amount due;
new text end

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

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

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

new text begin (i) the planned date for the transfer of the student records;
new text end

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

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

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

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

deleted text begin (b) Upon notice from a school of its intention to cease operations, the office shall notify
the school of the date on which it must cease the enrollment of students and all postsecondary
educational operations.
deleted text end

new text begin (b) new text endWithout limitation as to other circumstance, a school shall be deemed to have ceased
operations when the school:

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

(2) announces it is closed or closing; or

(3) files for bankruptcy.

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

Sec. 26.

Minnesota Statutes 2018, section 136A.646, is amended to read:


136A.646 ADDITIONAL SECURITY.

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

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

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

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

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

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

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

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

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

(2) private student loans; and

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

Sec. 27.

Minnesota Statutes 2018, section 136A.672, is amended by adding a subdivision
to read:


new text begin Subd. 6.new text end

new text beginPrivate information.new text end

new text beginStudent complaint data are private data on individuals,
as defined in section 13.02, subdivision 12. The office may disclose student complaint data
as provided in section 136A.64, subdivision 5.
new text end

Sec. 28.

Minnesota Statutes 2018, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 18.new text end

new text beginClock hour.new text end

new text begin"Clock hour" means a period of time consisting of a 50- to
60-minute class, lecture, or recitation in a 60-minute period; a 50- to 60-minute
faculty-supervised laboratory, shop training, or internship in a 60-minute period; or 60
minutes of preparation in a correspondence course. If a school seeks to determine the number
of clock hours in an educational program by aggregating the number of minutes in that
program, it must divide those minutes by 60.
new text end

Sec. 29.

Minnesota Statutes 2018, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 19.new text end

new text beginStudent record.new text end

new text begin"Student record" means a transcript or record of student
attendance in a program that includes, at a minimum, the student's name; the student's
address; the school's name; the school's address; the title of the course or program; the total
number of hours or courses completed; the dates of enrollment and attendance; the grade
record of each course; any credential awarded; and cumulative grade for the program.
new text end

Sec. 30.

Minnesota Statutes 2018, section 136A.822, subdivision 6, is amended to read:


Subd. 6.

Bond.

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

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

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

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

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

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

Sec. 31.

Minnesota Statutes 2018, section 136A.822, subdivision 10, is amended to read:


Subd. 10.

Catalog, brochure, or electronic display.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 32.

Minnesota Statutes 2018, section 136A.822, subdivision 12, is amended to read:


Subd. 12.

Permanent new text beginstudent new text endrecords.

A private career school licensed under sections
136A.82 to 136A.834 and located in Minnesota shall maintain a permanent new text beginstudent new text endrecord
for each student for 50 years from the last date of the student's attendance. A private career
school licensed under this chapter and offering distance instruction to a student located in
Minnesota shall maintain a permanent record for each Minnesota student for 50 years from
the last date of the student's attendance. Records include school transcripts, documents, and
files containing student data about academic credits earned, courses completed, grades
awarded, degrees awarded, and periods of attendance. To preserve permanent new text beginstudent new text endrecords,
a private career school shall submit a plan that meets the following requirements:

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

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

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

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

Sec. 33.

new text begin[136A.8225] SCHOOL CLOSURE.
new text end

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

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

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

new text begin (3) a report of refunds due to any student and the amount due;
new text end

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

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

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

new text begin (i) the planned date for the transfer of the student records;
new text end

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

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

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

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

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

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

new text begin (2) announces it is closed or closing; or
new text end

new text begin (3) files for bankruptcy.
new text end

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

Sec. 34.

Minnesota Statutes 2018, section 136A.8295, is amended by adding a subdivision
to read:


new text begin Subd. 6.new text end

new text beginDisclosure.new text end

new text beginSchools must disclose on their website, student handbook, and
student catalog the student complaint process under this section to students.
new text end

Sec. 35.

Minnesota Statutes 2018, section 136A.8295, is amended by adding a subdivision
to read:


new text begin Subd. 7.new text end

new text beginPrivate information.new text end

new text beginStudent complaint data are private data on individuals,
as defined in section 13.02, subdivision 12. The office may disclose student complaint data
to law enforcement officials or in connection with a legal or administrative proceeding
commenced to enforce a requirement of law.
new text end

Sec. 36.

Minnesota Statutes 2018, section 136A.87, is amended to read:


136A.87 PLANNING INFORMATION FOR POSTSECONDARY EDUCATION.

(a) The office shall make available to all residents beginning in 7th grade through
adulthood information about planning and preparing for postsecondary opportunities.
Information must be provided to all 7th grade students and their parents annually by
September 30 about planning for their postsecondary education. The office may also provide
information to high school students and their parents, to adults, and to out-of-school youth.

(b) The office shall gather and share information with students and parents about the
dual credit acceptance policies of each Minnesota public and private college and university.
The office shall gather and share information related to the acceptance policies for concurrent
enrollment courses, postsecondary enrollment options courses, advanced placement courses,
and international baccalaureate courses. This information must be shared on the office's
website and included in the information under paragraph (a).

(c) The information provided under paragraph (a) may include the following:

(1) the need to start planning early;

(2) the availability of assistance in educational planning from educational institutions
and other organizations;

(3) suggestions for studying effectively during high school;

(4) high school courses necessary to be adequately prepared for postsecondary education;

(5) encouragement to involve parents actively in planning for all phases of education;

(6) information about postsecondary education and training opportunities existing in the
state, their respective missions and expectations for students, their preparation requirements,
admission requirements, and student placement;

(7) ways to evaluate and select postsecondary institutions;

(8) the process of transferring credits among Minnesota postsecondary institutions and
systems;

(9) the costs of postsecondary education and the availability of financial assistance in
meeting these costs, including specific information about the Minnesota Promise;

(10) the interrelationship of assistance from student financial aid, public assistance, and
job training programs; deleted text beginand
deleted text end

(11) financial planning for postsecondary educationdeleted text begin.deleted text endnew text begin; and
new text end

new text begin (12) postsecondary education options for students with intellectual and developmental
disabilities.
new text end

Sec. 37.

Minnesota Statutes 2018, section 136F.20, is amended by adding a subdivision
to read:


new text begin Subd. 3.new text end

new text beginMental health services and health insurance information.new text end

new text begin(a) The Board of
Trustees must contract with one or more independent mental health organizations to provide
mental health care, including by use of telemedicine, on campus at up to five state colleges.
To be eligible to apply for the program, the state college must employ one or more faculty
counselors. These grants are designed to build on the current support provided by faculty
counselors and are not a replacement for them. Mental health services must be provided
without charge to students who are uninsured, who have high co-payments, or whose health
insurance does not cover the service provided. A memorandum of understanding shall be
developed between the college and the mental health organization outlining the use of space
on campus, how the students will be notified of the service, how they will collaborate with
faculty counselors, the provision of services, and other items.
new text end

new text begin (b) A mental health organization providing mental health care under paragraph (a) must
also provide information and guidance to students seeking health insurance.
new text end

Sec. 38.

new text begin[136F.245] HUNGER FREE CAMPUS DESIGNATION.
new text end

new text begin Subdivision 1.new text end

new text beginEstablishment.new text end

new text beginA Hunger Free Campus designation for Minnesota State
community and technical colleges is established. In order to be awarded the designation, a
campus must meet the following minimum criteria:
new text end

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

new text begin (2) provide information to students on SNAP, MFIP, and other programs that reduce
food insecurity;
new text end

new text begin (3) hold or participate in one hunger awareness event per academic year;
new text end

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

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

new text begin Subd. 2.new text end

new text beginDesignation approval.new text end

new text beginThe statewide student association representing the
community and technical colleges shall create an application process and a nonmonetary
award, and provide final approval for the designation at each college.
new text end

new text begin Subd. 3.new text end

new text beginExpiration.new text end

new text beginThis section expires July 1, 2023.
new text end

Sec. 39.

new text begin[136F.305] Z-DEGREES.
new text end

new text begin Subdivision 1.new text end

new text beginDefinitions.new text end

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

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

new text begin (c) "Incentive" means anything provided to faculty to identify, review, adapt, author, or
adopt open textbooks.
new text end

new text begin (d) "Open educational resources" are high-quality teaching, learning, and research
resources that reside in the public domain or have been released under an intellectual property
license that permits their free use and repurposing by others, and may include other resources
that are legally available and free of cost to students. Open educational resources include
course materials, modules, custom and open textbooks, articles, faculty-created content,
streaming videos, tests, software, and any other tools, materials, or techniques used to
support access to knowledge.
new text end

new text begin (e) "Open textbook" means a textbook that is distributed using an open copyright license
that at a minimum allows a student to obtain, retain, reuse, and redistribute the material at
no cost.
new text end

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

new text begin (g) "Z-Degree" means a zero-textbook-cost associate's degree.
new text end

new text begin Subd. 2.new text end

new text beginRequirement.new text end

new text beginThree additional colleges must offer the opportunity to earn a
Z-Degree by academic year 2020-2021. A college's course offerings for its Z-Degree program
must include at least two distinct courses in each transfer curriculum goal area and at least
enough credits in each transfer curriculum goal area to complete the transfer curriculum
package.
new text end

new text begin Subd. 3.new text end

new text beginOpen educational resource development.new text end

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

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

new text begin Subd. 4.new text end

new text beginReport.new text end

new text beginThe Board of Trustees of the Minnesota State Colleges and Universities
must submit reports by January 13, 2021, and January 12, 2022, to the chairs and ranking
minority members of the legislative committees with jurisdiction over higher education.
Each report must include (1) the number of courses transitioned to using an open textbook
resulting from the programs in this section, and (2) the total amount of student textbook
savings resulting from the transitions.
new text end

Sec. 40.

Minnesota Statutes 2018, section 136F.38, is amended to read:


136F.38 WORKFORCE DEVELOPMENT SCHOLARSHIPS.

Subdivision 1.

Program established.

The board shall develop a scholarship program
to incentivize new students new text beginand students returning from the workforce new text endto enter high-demand
occupations upon graduation.

Subd. 2.

Scholarship awards.

The program shall award scholarships at the beginning
of an academic term, in the amount of $2,500, to be distributed evenly between two terms.

Subd. 3.

Program eligibility.

(a) Scholarships shall be awarded only to a student eligible
for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
care services; deleted text beginordeleted text end (4) information technologynew text begin; (5) early childhood; or (6) transportationnew text end.

(b) The student must be enrolled for at least nine credits deleted text beginat a two-year collegedeleted text end in the
Minnesota State Colleges and Universities system.

Subd. 4.

Renewal; cap.

A student who has received a scholarship may apply again but
total lifetime awards are not to exceed deleted text begin$5,000deleted text end new text begin$7,500 new text endper student. Students may only be
awarded a second scholarship upon completion of two academic termsnew text begin. Students may be
awarded a third scholarship if the student transfers to a corresponding program at a Minnesota
state university
new text end.

Subd. 5.

Administration.

(a) The board shall establish an application process and other
guidelines for implementing this program.

(b) The board shall give preference to students in financial need.

new text begin Subd. 5a.new text end

new text beginLocal business partnerships.new text end

new text beginBeginning in 2020, and each year thereafter,
the board shall withhold ten percent of the appropriation. The withheld funds must be
distributed in the following year to institutions that successfully leverage private matching
funds from local businesses, resulting in additional scholarships by partnering with the local
business community.
new text end

Subd. 6.

Report required.

The board must submit an annual report by February 1 of
each year about the scholarship awards to the chairs and ranking minority members of the
senate and house of representatives committees with jurisdiction over higher education
finance and policy. The first report is due no later than February 1, 2019. The annual report
shall describe the following:

(1) the number of students receiving a scholarship at each two-year college new text beginand each
university
new text endduring the previous fiscal year;

(2) the number of scholarships awarded for each program of study or certification
described in subdivision 3, paragraph (a);

(3) the number of scholarship recipients who completed a program of study or certification
described in subdivision 3, paragraph (a);

(4) the number of scholarship recipients who secured employment by their graduation
date and those who secured employment within three months of their graduation date;

(5) new text begina list of the institutions that received funding under subdivision 5a, the amount of
funding each institution received, and whether all withheld funds were distributed;
new text end

new text begin (6) new text enda list of occupations scholarship recipients are entering; and

deleted text begin (6)deleted text end new text begin(7) new text endthe number of students who were denied a scholarship.

Sec. 41.

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


Subd. 29.

Emergency Assistance for
Postsecondary Students

175,000
175,000

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

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

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

new text begin EFFECTIVE DATE.new text end

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

Sec. 42. new text beginCOLLEGE SAVINGS PLAN MATCHING GRANTS.
new text end

new text begin Notwithstanding Minnesota Statutes, sections 136G.05, subdivision 5, 136G.09,
subdivisions 10 and 12, 136G.11, and 136G.13, subdivisions 2, 3, and 4, through June 30,
2021, the commissioner of the Office of Higher Education may resolve matching grant
issues that occurred after January 1, 2013. The commissioner shall limit the authority under
this section to assisting account owners or successors who were negatively impacted by
issues related to the matching grant.
new text end

new text begin EFFECTIVE DATE.new text end

new text beginThis section is effective the day following final enactment and
expires June 30, 2021.
new text end

Sec. 43. new text beginSTUDY AND JUSTIFICATION FOR THE TUITION DIFFERENTIAL
OR ADDITIONAL FEES FOR ONLINE COURSES.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall, and the
Board of Regents of the University of Minnesota is requested to, each provide a report by
January 15, 2020, to the members of the legislative committees with jurisdiction over higher
education issues related to the tuition differential for online courses and additional online
course fees. The report must include both a detailed analysis of onetime investments that
have been made in order to provide online courses and a detailed analysis of ongoing costs,
compared to the investments and costs associated with in-person courses, including physical
campus infrastructure and classroom space, and other costs associated with providing an
in-person course on the campus of the institution. The report must provide a plan to achieve
parity related to the amount charged for online courses and comparable in-person courses
by the 2021-2022 academic year. If the institution determines that parity cannot be achieved,
the report must provide justification for the difference in cost.
new text end

Sec. 44. new text beginMINNESOTA STATE COLLEGES AND UNIVERSITIES AND
UNIVERSITY OF MINNESOTA ADMINISTRATIVE COST REPORTS.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall provide
a report to the chairs and ranking minority members of the legislative committees with
jurisdiction over higher education by July 1, 2021, detailing how the Minnesota State
Colleges and Universities define, categorize, and account for administrative costs. The
report must further identify measures taken to use innovation and cost efficiencies to lower
administrative costs. The Board of Regents of the University of Minnesota is requested to
provide a similar report by July 1, 2021.
new text end

Sec. 45. new text beginREPEALER.
new text end

new text begin Minnesota Statutes 2018, sections 136A.15, subdivisions 2 and 7; and 136A.1701,
subdivision 12,
new text endnew text begin are repealed.new text end"

Correct the title numbers accordingly
We request the adoption of this report and repassage of the bill.
Senate Conferees:
.
.
.
Paul Anderson
Rich Draheim
.
.
Scott M. Jensen
Jerry Relph
.
Greg D. Clausen
House Conferees:
.
.
.
Connie Bernardy
Laurie Pryor
.
.
Ben Lien
Ginny Klevorn
.
Bud Nornes