MN Legislature

Accessibility menu

Bills use visual text formatting such as stricken text to denote deleted language, and underlined text to denote new language. For users of the jaws screenreader it is recommended to configure jaws to use the proofreading scheme which will alter the pitch of the reading voice when reading stricken and underlined text. Instructions for configuring your jaws reader are provided by following this link.
If you can not or do not wish to configure your screen reader, deleted language will begin with the phrase "deleted text begin" and be followed by the phrase "deleted text end", new language will begin with the phrase "new text begin" and be followed by "new text end". Skip to text of SF 3671.

Menu

Revisor of Statutes Menu

SF 3671

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/19/2018 04:14pm

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

Pdf

Rtf

Version List Authors and Status

Current Version - 1st Engrossment

A bill for an act
relating to higher education; providing for the financing of higher education
programs; modifying certain higher education policy provisions; making clarifying
and technical changes to loan forgiveness and research grant programs; requiring
reports; appropriating money;amending Minnesota Statutes 2016, sections
127A.70, subdivision 2; 135A.15, subdivision 2; 136A.15, subdivision 8; 136A.16,
subdivisions 1, 2, 5, 8, 9; 136A.162; 136A.1701, subdivision 7; 136A.1791,
subdivision 8; 136A.1795, subdivision 2; 136A.64, subdivision 1; 136A.822,
subdivision 10; 136A.901, subdivision 1; Minnesota Statutes 2017 Supplement,
sections 136A.1275, subdivisions 2, 3; 136A.1789, subdivision 2; 136A.646;
136A.672, by adding a subdivision; 136A.822, subdivision 6; 136A.8295, by
adding a subdivision; Laws 2017, chapter 89, article 1, section 2, subdivisions 18,
20, 29, 31, 32, 33, 34, 40; proposing coding for new law in Minnesota Statutes,
chapter 136A; repealing Minnesota Statutes 2016, sections 136A.15, subdivisions
2, 7; 136A.1701, subdivision 12.

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

Section 1. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2017, chapter 89, article 1, unless otherwise specified, to the agencies and for the
purposes specified in this act. The appropriations are from the general fund, or another
named fund, and are available for the fiscal years indicated for each purpose. The figures
"2018" and "2019" used in this act mean that the appropriations listed under them are
available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively. "The first
year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium" is fiscal
years 2018 and 2019.

APPROPRIATIONS
Available for the Year
Ending June 30
2018
2019

Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION

Subdivision 1.

Total Appropriation

$
-0-
$
500,000

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

Subd. 2.

State Grants

-0-
300,000

This is a onetime appropriation.

Subd. 3.

Agricultural Educators Loan
Forgiveness

-0-
100,000

For transfer to the agricultural education loan
forgiveness account in the special revenue
fund under Minnesota Statutes, section
136A.1794, subdivision 2. This is a onetime
appropriation.

Subd. 4.

Student Loan Debt Counseling

-0-
50,000

For a student loan debt counseling grant under
Minnesota Statutes, section 136A.1705. This
is a onetime appropriation.

Subd. 5.

Teacher Preparation Program Design
Grant

-0-
50,000

For a teacher preparation program design grant
under section 35. This is a onetime
appropriation.

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

Subdivision 1.

Total Appropriation

$
-0-
$
500,000

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

Subd. 2.

Operations and Maintenance

-0-
500,000

For renewal of workforce development
scholarships first awarded in academic year
2018-2019 under Minnesota Statutes, section
136F.38. This is a onetime appropriation and
is available until June 30, 2020.

Sec. 4.

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


Subd. 2.

Powers and duties; report.

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

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

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

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

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

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

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

(2) evaluate the effectiveness of (i) investments in young children and families, and (ii)
educational and workforce programs; and

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

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

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

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

Sec. 5.

Minnesota Statutes 2016, 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 services and information on legal resources;

(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. 6.

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


Subd. 2.

Eligibility.

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

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

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

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

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

Sec. 7.

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


Subd. 3.

Administration; repayment.

(a) The commissioner must establish an
application process and other guidelines for implementing this program, 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
.

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

Sec. 8.

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


Subd. 8.

Eligible student.

"Eligible student" means a student who is officially registered
or accepted for enrollment at an eligible institution in Minnesota or a Minnesota resident
who is officially registered as a student or accepted for enrollment at an eligible institution
in another state or province. Non-Minnesota residents are eligible students if they are enrolled
or accepted for enrollment in a minimum of one course of at least 30 days in length during
the academic year that requires physical attendance at an eligible institution located in
Minnesota. Non-Minnesota resident students enrolled exclusively during the academic year
in correspondence courses or courses offered over the Internet are not eligible students.
Non-Minnesota resident students not physically attending classes in Minnesota due to
enrollment in a study abroad program for 12 months or less are eligible students.
Non-Minnesota residents enrolled in study abroad programs exceeding 12 months are not
eligible students.
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. 9.

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


Subdivision 1.

Designation.

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

Sec. 10.

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


Subd. 2.

Rules, policies, and conditions.

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

Sec. 11.

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


Subd. 5.

Agencies.

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

Sec. 12.

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


Subd. 8.

Investment.

Money made available to the office that is not immediately needed
for the purposes of sections 136A.15 to 136A.1702 136A.1704 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. 13.

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


Subd. 9.

Staff.

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

Sec. 14.

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


136A.162 CLASSIFICATION OF DATA.

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

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

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

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 15.

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


Subd. 7.

Repayment of loans.

(a) The office shall establish repayment procedures for
loans made under this section, 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.
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.

(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.

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

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

(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

(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.

Sec. 16.

[136A.1705] STUDENT LOAN DEBT COUNSELING.

Subdivision 1.

Grant.

(a) A 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 Minnesota 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.

(b) The purpose of the counseling is to assist borrowers to:

(1) understand their loan and repayment options;

(2) manage loan repayment; and

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

Subd. 2.

Qualified debt counseling organization.

A qualified debt counseling
organization is an organization that:

(1) has experience in providing individualized student loan counseling;

(2) employs certified financial loan counselors; and

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

Subd. 3.

Grant application and award.

(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:

(1) the characteristics of borrowers to be served;

(2) the services to be provided and a timeline for implementation of the services;

(3) how the services provided will help borrowers manage loan repayment;

(4) specific program outcome goals and performance measures for each goal; and

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

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

Subd. 4.

Program evaluation.

(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.

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

(c) The evaluation must include information on the number of borrowers served with
on-time student loan payments, the numbers 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.

Subd. 5.

Report to legislature.

By 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.

Sec. 17.

Minnesota Statutes 2017 Supplement, section 136A.1789, subdivision 2, is
amended to read:


Subd. 2.

Creation of account.

(a) An aviation degree loan forgiveness program account
is established in the special revenue fund to provide qualified pilots and qualified aircraft
technicians with financial assistance in repaying qualified education loans. The commissioner
must use money from the account to establish and administer the aviation degree loan
forgiveness program.

(b) Appropriations made to the aviation degree loan forgiveness program account do
not cancel and are available until expended.

Sec. 18.

Minnesota Statutes 2016, section 136A.1791, subdivision 8, is amended to read:


Subd. 8.

Fund Account established.

A teacher shortage loan forgiveness repayment
fund account is created in the special revenue fund for depositing money appropriated to
or received by the commissioner for the program. Money deposited in the fund shall not
revert to any state fund at the end of any fiscal year but remains in the loan forgiveness
repayment fund and is continuously available for loan forgiveness under this section.

Sec. 19.

Minnesota Statutes 2016, section 136A.1795, subdivision 2, is amended to read:


Subd. 2.

Establishment; administration.

(a) The commissioner shall establish and
administer a loan forgiveness program for large animal veterinarians who:

(1) agree to practice in designated rural areas that are considered underserved; and

(2) work full time in a practice that is at least 50 percent involved with the care of food
animals.

(b) A large animal veterinarian loan forgiveness program account is established in the
special revenue fund. The commissioner must use money from the account to establish and
administer the program under this section. Appropriations to the commissioner for the
program are for transfer to the fund.
Appropriations made to the program do not cancel and
are available until expended.

Sec. 20.

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


Subdivision 1.

Schools to provide information.

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

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

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

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

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

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

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

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

(ii) the current institutional officers;

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

(iv) a description of all school facilities;

(v) a description of all current course offerings;

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

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

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

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

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

(xi) the school's policies about student admission, evaluation, suspension, and dismissal.;
and

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

Sec. 21.

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


136A.646 ADDITIONAL SECURITY.

(a) New schools that have been granted conditional approval for degrees or names to
allow them the opportunity to apply for and receive accreditation under section 136A.65,
subdivision 7
, or 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.

(b) 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. In the event the letter of credit required by the United States Department
of Education is higher than ten percent of the Title IV, Higher Education Act program funds
received by the institution during its most recently completed fiscal year, the office shall
reduce the office's surety requirement to represent ten percent of the Title IV, Higher
Education Act program funds received by the institution during its most recently completed
fiscal year, subject to the minimum and maximum in this paragraph.

(b) (c) 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.

(c) (d) 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) (e) 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. 22.

Minnesota Statutes 2017 Supplement, section 136A.672, is amended by adding
a subdivision to read:


Subd. 6.

Disclosure.

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

Sec. 23.

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


Subd. 6.

Bond.

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

(b)(1) The amount of the surety bond shall be ten percent of the preceding year's net
income revenue 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 income revenue 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 revenue from tuition and fees used to determine the amount of the
surety bond required for a private career school having a license for the sole purpose of
recruiting students in Minnesota shall be only that paid to the private career school by the
students recruited from Minnesota.

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

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

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

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

Sec. 24.

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


Subd. 10.

Catalog, brochure, or electronic display.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(14) a procedure for investigating and resolving student complaints; and

(15) the name and address of the office.; and

(16) the student complaint process and rights under section 136A.8295.

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

Sec. 25.

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


Subd. 6.

Disclosure.

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

Sec. 26.

Minnesota Statutes 2016, section 136A.901, subdivision 1, is amended to read:


Subdivision 1.

Grant program.

(a) The commissioner shall establish a grant program
to award grants to institutions in Minnesota for research into spinal cord injuries and traumatic
brain injuries. Grants shall be awarded to conduct research into new and innovative treatments
and rehabilitative efforts for the functional improvement of people with spinal cord and
traumatic brain injuries. Research topics may include, but are not limited to, pharmaceutical,
medical device, brain stimulus, and rehabilitative approaches and techniques. The
commissioner, in consultation with the advisory council established under section 136A.902,
shall award 50 percent of the grant funds for research involving spinal cord injuries and 50
percent to research involving traumatic brain injuries. In addition to the amounts appropriated
by law, the commissioner may accept additional funds from private and public sources.
Amounts received from these sources are appropriated to the commissioner for the purposes
of issuing grants under this section.

(b) A spinal cord and traumatic brain injury grant account is established in the special
revenue fund. The commissioner must use money from the account to administer the grant
program under this section. Appropriations to the commissioner for the program are for
transfer to the fund, do not cancel, and are available until expended.

Sec. 27.

Laws 2017, chapter 89, article 1, section 2, subdivision 18, is amended to read:


Subd. 18.

MNSCU Two-Year Public College
Program

3,481,000
2,481,000
-0-

(a) $2,780,000 $1,780,000 in fiscal year 2018
is for two-year public college program grants
under Laws 2015, chapter 69, article 3, section
20.

(b) $545,000 in fiscal year 2018 is to provide
mentoring and outreach as specified under
Laws 2015, chapter 69, article 3, section 20.

(c) $156,000 in fiscal year 2018 is for
information technology and administrative
costs associated with implementation of the
grant program.

EFFECTIVE DATE.

This section is effective June 30, 2018.

Sec. 28.

Laws 2017, chapter 89, article 1, section 2, subdivision 20, is amended to read:


Subd. 20.

Spinal Cord Injury and Traumatic
Brain Injury Research Grant Program

3,000,000
3,000,000

For spinal cord injury and traumatic brain
injury research grants authorized under
Minnesota Statutes, section 136A.901.

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

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

Sec. 29.

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 schools eligible institutions
as defined under Minnesota Statutes, section
136A.103, located in Minnesota
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.
Emergency assistance does not impact the
amount of state financial aid received.

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

Sec. 30.

Laws 2017, chapter 89, article 1, section 2, subdivision 31, is amended to read:


Subd. 31.

Teacher Shortage Loan Forgiveness

200,000
200,000

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

The commissioner may use no more than three
percent of this appropriation to administer the
program under this subdivision.

Sec. 31.

Laws 2017, chapter 89, article 1, section 2, subdivision 32, is amended to read:


Subd. 32.

Large Animal Veterinarian Loan
Forgiveness Program

375,000
375,000

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

Sec. 32.

Laws 2017, chapter 89, article 1, section 2, subdivision 33, is amended to read:


Subd. 33.

Agricultural Educators Loan
Forgiveness

50,000
50,000

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

Sec. 33.

Laws 2017, chapter 89, article 1, section 2, subdivision 34, is amended to read:


Subd. 34.

Aviation Degree Loan Forgiveness
Program

25,000
25,000

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

Sec. 34.

Laws 2017, chapter 89, article 1, section 2, subdivision 40, is amended to read:


Subd. 40.

Transfers

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, intervention for
college attendance program grants
appropriation, summer academic enrichment
program appropriation, student-parent
information appropriation,
the state
work-study appropriation, the get ready
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.

Sec. 35. AFFORDABLE TEXTBOOK PLAN AND REPORT.

The Board of Trustees of the Minnesota State Colleges and Universities shall develop
a plan to increase the use of affordable textbooks and instructional materials. The board
must explore and study registration software or other systems and methods to disclose or
display the cost of all textbooks and instructional materials required for a course at or prior
to course registration. The plan must describe the systems or methods examined and the
results of the study. The plan must establish a goal for the percentage of all courses offered
at state colleges and universities that will use affordable textbooks and instructional materials.
The plan must identify and describe key terms, including "affordable textbook," "instructional
material," and "course." The board must submit the plan to the chairs and ranking minority
members of the legislative committees with jurisdiction over higher education by January
15, 2020.

Sec. 36. TEACHER PREPARATION PROGRAM DESIGN GRANT.

The commissioner of the Office of Higher Education shall make a grant to an institution
of higher education, defined under Minnesota Statutes, section 135A.51, subdivision 5, to
explore, design, and plan for a teacher preparation program leading to licensure as a teacher
of the blind or visually impaired, consistent with Minnesota Rules, part 8710.5100. The
commissioner may develop an application process and guidelines, as necessary, and may
use up to two percent of the appropriation for administrative costs. The grant recipient shall
submit a report describing the plan and identifying potential ongoing costs for the program
to the chairs and ranking minority members of the legislative committees with jurisdiction
over higher education finance and policy no later than January 15, 2020.

Sec. 38. REPEALER.

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

APPENDIX

Repealed Minnesota Statutes: S3671-1

136A.15 DEFINITIONS.

Subd. 2.

Academic year or its equivalent.

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

Subd. 7.

Eligible lender.

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

136A.1701 SUPPLEMENTAL AND ADDITIONAL LOANS.

Subd. 12.

Eligible student.

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

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16
1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 1.26 1.27 1.28 1.29
2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24
2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 3.1 3.2 3.3
3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16
4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 6.1 6.2 6.3 6.4 6.5 6.6
6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23
6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8
7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23
7.24 7.25 7.26 7.27
7.28 7.29 7.30 7.31 7.32 8.1 8.2
8.3 8.4 8.5 8.6
8.7 8.8 8.9 8.10 8.11 8.12 8.13 8.14 8.15
8.16 8.17 8.18 8.19
8.20 8.21 8.22 8.23 8.24 8.25 8.26 8.27 8.28 8.29 8.30 9.1 9.2 9.3 9.4 9.5 9.6 9.7 9.8 9.9 9.10 9.11
9.12 9.13 9.14 9.15 9.16 9.17 9.18 9.19 9.20 9.21 9.22 9.23 9.24 9.25 9.26 9.27 9.28 9.29 9.30 9.31 10.1 10.2 10.3 10.4 10.5 10.6
10.7 10.8 10.9 10.10 10.11 10.12 10.13 10.14 10.15 10.16 10.17 10.18 10.19 10.20 10.21 10.22 10.23 10.24 10.25 10.26 10.27 10.28 10.29 10.30 10.31 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8 11.9 11.10 11.11 11.12 11.13 11.14 11.15 11.16 11.17 11.18 11.19
11.20 11.21 11.22 11.23 11.24 11.25 11.26 11.27 11.28
11.29 11.30 11.31 12.1 12.2 12.3
12.4 12.5 12.6 12.7 12.8 12.9 12.10 12.11 12.12 12.13 12.14
12.15 12.16 12.17 12.18 12.19 12.20 12.21 12.22 12.23 12.24 12.25 12.26 12.27 12.28 12.29 12.30 13.1 13.2 13.3 13.4 13.5 13.6 13.7 13.8 13.9 13.10 13.11 13.12 13.13 13.14 13.15
13.16 13.17 13.18 13.19 13.20 13.21 13.22 13.23 13.24 13.25 13.26 13.27 13.28 13.29 13.30 13.31 14.1 14.2 14.3 14.4 14.5 14.6 14.7 14.8 14.9 14.10 14.11 14.12 14.13 14.14 14.15 14.16 14.17 14.18 14.19 14.20 14.21 14.22 14.23 14.24 14.25 14.26 14.27
14.28 14.29 14.30 14.31
15.1 15.2 15.3 15.4 15.5 15.6 15.7 15.8 15.9 15.10 15.11 15.12 15.13 15.14 15.15 15.16 15.17 15.18 15.19 15.20 15.21 15.22 15.23 15.24 15.25 15.26 15.27 15.28 15.29 15.30 15.31 15.32 15.33 15.34 16.1 16.2 16.3 16.4 16.5 16.6
16.7 16.8 16.9 16.10 16.11 16.12 16.13 16.14 16.15 16.16 16.17 16.18 16.19 16.20 16.21 16.22 16.23 16.24 16.25 16.26 16.27 16.28 16.29 16.30 16.31 17.1 17.2 17.3 17.4 17.5 17.6 17.7 17.8 17.9 17.10 17.11 17.12
17.13 17.14 17.15 17.16
17.17 17.18 17.19 17.20 17.21 17.22 17.23 17.24 17.25 17.26 17.27 17.28 17.29 17.30 17.31 18.1 18.2
18.3 18.4 18.5 18.6 18.7 18.8 18.9 18.10 18.11 18.12 18.13 18.14 18.15 18.16
18.17
18.18 18.19 18.20 18.21 18.22 18.23 18.24 18.25 18.26 18.27 18.28 18.29 18.30
19.1 19.2 19.3 19.4 19.5 19.6 19.7 19.8 19.9 19.10 19.11 19.12 19.13 19.14 19.15 19.16 19.17 19.18 19.19 19.20 19.21 19.22 19.23 19.24
19.25 19.26 19.27 19.28 19.29 19.30 19.31 19.32 19.33
20.1 20.2 20.3 20.4 20.5 20.6 20.7
20.8 20.9 20.10 20.11 20.12 20.13 20.14
20.15 20.16 20.17 20.18 20.19 20.20 20.21
20.22 20.23 20.24 20.25 20.26 20.27 20.28 20.29 20.30 20.31 20.32 20.33 21.1 21.2 21.3 21.4 21.5 21.6 21.7 21.8 21.9 21.10 21.11 21.12
21.13 21.14 21.15 21.16 21.17 21.18 21.19 21.20 21.21 21.22 21.23 21.24
21.25 21.26 21.27 21.28 21.29 21.30 21.31 21.32 21.33 21.34
22.1 22.2 22.3

700 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 ♦ Phone: (651) 296-2868 ♦ TTY: 1-800-627-3529 ♦ Fax: (651) 296-0569