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Minnesota Legislature

Office of the Revisor of Statutes

SF 943

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 11/09/2017 10:00am

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

Current Version - 3rd Engrossment

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A bill for an act
relating to higher education; providing funding and policy changes for the Office
of Higher Education, the Minnesota State Colleges and Universities, the University
of Minnesota, and other related programs; modifying state grant program calculation
parameters; requiring reports; authorizing rulemaking; appropriating money;
amending Minnesota Statutes 2016, sections 43A.06, subdivision 1; 135A.031,
subdivision 7; 135A.15, subdivision 1a; 136A.101, subdivision 5a; 136A.103;
136A.121, subdivision 6; 136A.125, subdivisions 2, 4; 136A.1275; 136A.1795,
subdivision 4; 136A.62, by adding a subdivision; 136A.646; 136A.65, subdivisions
1a, 4, 7; 136A.653; 136A.657, by adding a subdivision; 136A.67; 136A.68;
136A.685; 136A.821, by adding subdivisions; 136A.822, subdivisions 4, 6, 12,
13; 136A.826, subdivision 2; 136A.827, subdivisions 2, 3; 136A.828, subdivision
3; 136A.83; 136A.833; 136A.834, by adding a subdivision; 136A.902, subdivision
1; 148.89, subdivision 5; Laws 2014, chapter 312, article 1, section 15; Laws 2015,
chapter 69, article 3, section 20, subdivision 10; proposing coding for new law in
Minnesota Statutes, chapters 135A; 136A; 136F; 137; 148; 298.

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

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 "2018" and "2019" used in this article 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.
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 2018
new text end
new text begin 2019
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 260,036,000
new text end
new text begin $
new text end
new text begin 256,495,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Grants
new text end

new text begin 198,206,000
new text end
new text begin 198,356,000
new text end

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

new text begin Subd. 3. new text end

new text begin Child Care Grants
new text end

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

new text begin Subd. 4. new text end

new text begin State Work-Study
new text end

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

new text begin Subd. 5. new text end

new text begin Interstate Tuition Reciprocity
new text end

new text begin 11,018,000
new text end
new text begin 11,018,000
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 begin Safety Officer's Survivors
new text end

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

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

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

new text begin Subd. 7. new text end

new text begin Indian Scholarships
new text end

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

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

new text begin Subd. 8. new text end

new text begin Tribal College Grants
new text end

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

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

new text begin Subd. 9. new text end

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

new text begin 671,000
new text end
new text begin 671,000
new text end

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

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

new text begin Subd. 10. new text end

new text begin Student-Parent Information
new text end

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

new text begin Subd. 11. new text end

new text begin Get Ready!
new text end

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

new text begin Subd. 12. new text end

new text begin Minnesota Education Equity
Partnership
new text end

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

new text begin Subd. 13. new text end

new text begin Midwest Higher Education Compact
new text end

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

new text begin Subd. 14. new text end

new text begin United Family Medicine Residency
Program
new text end

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

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

new text begin Subd. 15. new text end

new text begin MnLINK Gateway and Minitex
new text end

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

new text begin Subd. 16. new text end

new text begin Statewide Longitudinal Education
Data System
new text end

new text begin 882,000
new text end
new text begin 882,000
new text end

new text begin Subd. 17. new text end

new text begin Hennepin County Medical Center
new text end

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

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

new text begin Subd. 18. new text end

new text begin MNSCU Two-Year Public College
Program
new text end

new text begin 3,481,000
new text end
new text begin -0-
new text end

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

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

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

new text begin Subd. 19. new text end

new text begin College Possible
new text end

new text begin 250,000
new text end
new text begin 250,000
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 begin Spinal Cord Injury and Traumatic
Brain Injury Research Grant Program
new text end

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

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

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

new text begin Subd. 21. new text end

new text begin Summer Academic Enrichment
Program
new text end

new text begin 125,000
new text end
new text begin 125,000
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 begin Dual Training Competency Grants;
Office of Higher Education
new text end

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

new text begin For training grants under Minnesota Statutes,
section 136A.246.
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. 23. new text end

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

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

new text begin For transfer to the 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 begin Concurrent Enrollment Courses
new text end

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

new text begin (a) $225,000 in fiscal year 2018 and $225,000
in fiscal year 2019 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 2018 and $115,000
in fiscal year 2019 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 begin Campus Sexual Assault Reporting
new text end

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

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

new text begin Subd. 26. new text end

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

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

new text begin For the Office of Higher Education to staff a
campus sexual violence prevention and
response coordinator to serve as a statewide
resource providing professional development
and guidance on best practices for
postsecondary institutions. $50,000 each year
are 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 begin Addiction Medicine Graduate
Fellowship Program
new text end

new text begin 210,000
new text end
new text begin -0-
new text end

new text begin For the addiction medicine graduate fellowship
program under Laws 2016, chapter 189, article
1, section 2, subdivision 4.
new text end

new text begin Subd. 28. new text end

new text begin Student and Employer Connection
Information System
new text end

new text begin 405,000
new text end
new text begin 405,000
new text end

new text begin For a grant to the Minnesota Chamber
Foundation for the creation of a web-based
job and intern-seeking software tool that blind
matches the needs of employers located in
Minnesota with the individual profiles of high
school seniors and postsecondary students
attending Minnesota high schools and
postsecondary institutions. No more than three
percent of this appropriation may be used for
administrative expenses of the foundation. The
foundation must report by January 15, 2019,
on activities under this subdivision to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
higher education finance.
new text end

new text begin Subd. 29. new text end

new text begin Emergency Assistance for
Postsecondary Students
new text end

new text begin 175,000
new text end
new text begin 175,000
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 schools 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.
Emergency assistance does not impact the
amount of state financial aid received.
new text end

new text begin (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 end

new text begin Subd. 30. new text end

new text begin Grants to Teacher Candidates
new text end

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

new text begin For grants to teacher candidates under
Minnesota Statutes, section 136A.1275. This
appropriation is in addition to the money
available under Laws 2016, chapter 189,
article 25, section 62, subdivision 11.
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. 31. new text end

new text begin Teacher Shortage Loan Forgiveness
new text end

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

new text begin For the loan forgiveness program under
Minnesota Statutes, section 136A.1791.
new text end

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

new text begin Subd. 32. new text end

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

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

new text begin For the large animal veterinarian loan
forgiveness program under Minnesota Statutes,
section 136A.1795.
new text end

new text begin Subd. 33. new text end

new text begin Agricultural Educators Loan
Forgiveness
new text end

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

new text begin For deposit in the agricultural education loan
forgiveness account.
new text end

new text begin Subd. 34. new text end

new text begin Aviation Degree Loan Forgiveness
Program
new text end

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

new text begin For the aviation degree loan forgiveness
program under Minnesota Statutes, section
136A.1789.
new text end

new text begin Subd. 35. new text end

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

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

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

new text begin Subd. 36. new text end

new text begin Loan Repayment Assistance Program
new text end

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

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

new text begin Subd. 37. new text end

new text begin Minnesota Life College
new text end

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

new text begin For a grant to Minnesota Life College for
need-based scholarships and tuition reduction.
new text end

new text begin Subd. 38. new text end

new text begin Agency Administration
new text end

new text begin 4,064,000
new text end
new text begin 4,064,000
new text end

new text begin Subd. 39. new text end

new text begin Balances Forward
new text end

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

new text begin Subd. 40. new text end

new text begin Transfers
new text end

new text begin The commissioner of the Office of Higher
Education may transfer unencumbered
balances from the appropriations in this
section to the state grant appropriation, the
interstate tuition reciprocity appropriation, the
child care grant appropriation, the Indian
scholarship appropriation, the state work-study
appropriation, the get ready appropriation, 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 begin Total Appropriation
new text end

new text begin $
new text end
new text begin 731,019,000
new text end
new text begin $
new text end
new text begin 721,919,000
new text end

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

new text begin Subd. 2. new text end

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

new text begin 33,074,000
new text end
new text begin 33,074,000
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 begin Operations and Maintenance
new text end

new text begin 693,830,000
new text end
new text begin 684,730,000
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 2017-2018 academic year, the
tuition rate at colleges must not exceed the
2016-2017 academic year rate by more than
one percent; and
new text end

new text begin (2) for the 2018-2019 academic year, the
tuition rates for undergraduates at colleges and
universities must not exceed the 2017-2018
academic year rates.
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. Colleges and
universities are permitted to increase
differential tuition charges in fiscal years 2018
and 2019 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 2018 and
$3,000,000 in fiscal year 2019 are to provide
the supplemental aid under article 2, section
24.
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) This appropriation includes $1,000,000 in
fiscal year 2019 for workforce development
scholarships under Minnesota Statutes, section
136F.38. The base for this appropriation in
fiscal year 2020 is $500,000.
new text end

new text begin (e) $200,000 each year is for transfer to the
Cook County Higher Education Board to
provide educational programming 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) $50,000 in fiscal year 2018 and $50,000 in
fiscal year 2019 are for developing and
teaching online agricultural courses by farm
business management faculty at colleges that
offer farm business management.
new text end

new text begin (g) $175,000 in fiscal year 2018 and $175,000
in fiscal year 2019 are for the
veterans-to-agriculture pilot program
established by Laws 2015, chapter 69, article
1, section 4, subdivision 3. The program shall
continue to conform to the requirements of
that subdivision. The appropriation shall be
used to support, in equal amounts, up to six
program sites statewide. No more than two
percent of the total appropriation provided by
this section may be used for administrative
purposes at the system level.
new text end

new text begin No later than December 15, 2018, the program
shall report to the committees of the house of
representatives and the senate with jurisdiction
over issues related to agriculture, veterans
affairs, and higher education on program
operations, including information on
participation rates, new job placements, and
any unmet needs.
new text end

new text begin (h) This appropriation includes $40,000 in
fiscal year 2018 and $40,000 in fiscal year
2019 to implement the sexual assault policies
required under Minnesota Statutes, section
135A.15.
new text end

new text begin (i) This appropriation includes $4,000,000 in
fiscal year 2018 and $4,000,000 in fiscal year
2019 for upgrading the Integrated Statewide
Record System.
new text end

new text begin (j) $100,000 in fiscal year 2018 is for use by
Winona State University for HealthForce
Minnesota to develop educational materials
that increase awareness of career opportunities
available in the field of senior care. The
educational materials developed under this
provision must be appropriate for students in
K-12 education settings, dislocated workers,
and rural communities. Materials must be
developed in collaboration with employers
and trade organizations representing
employers in the field of senior care.
new text end

new text begin Winona State University shall submit a report
by February 1, 2019, to the chairs and ranking
minority members of the legislative
committees with jurisdiction over higher
education finance and policy. The report must
include information about the materials
developed, to whom materials were
distributed, and identify any collaborations
with employers and trade organizations.
new text end

new text begin Subd. 4. new text end

new text begin Learning Network of Minnesota
new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin 660,843,000
new text end
new text begin $
new text end
new text begin 650,793,000
new text end
new text begin Appropriations by Fund
new text end
new text begin 2018
new text end
new text begin 2019
new text end
new text begin General
new text end
new text begin 658,686,000
new text end
new text begin 648,636,000
new text end
new text begin Health Care Access
new text end
new text begin 2,157,000
new text end
new text begin 2,157,000
new text end

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

new text begin Subd. 2. new text end

new text begin Operations and Maintenance
new text end

new text begin 590,248,000
new text end
new text begin 580,198,000
new text end

new text begin (a) The Board of Regents is requested to set
resident tuition rates for academic year
2018-2019 at levels not to exceed the rates for
academic year 2017-2018.
new text end

new text begin (b) $15,000,000 in fiscal year 2018 and
$15,000,000 in fiscal year 2019 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 2018 and
$7,800,000 in fiscal year 2019 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 2018 and
$4,000,000 in fiscal year 2019 are for the
Minnesota Discovery, Research, and
InnoVation Economy funding program for
cancer care research.
new text end

new text begin (e) $50,000 in fiscal year 2018 is to develop
and implement a plan to offer the academic
program for students with intellectual and
developmental disabilities required in article
2, section 18. The Board of Regents must
submit a report on the plan to the chairs and
ranking minority members of the committees
of the legislature with jurisdiction over higher
education finance and policy no later than
January 15, 2018. The report must describe
program plans, including strategies for
recruitment of applicants, and strategies to
address anticipated program needs that cannot
be filled using existing campus or system
resources. This is a onetime appropriation.
new text end

new text begin (f) $500,000 in fiscal year 2018 and $500,000
in fiscal year 2019 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 begin Primary Care Education Initiatives
new text end

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

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

new text begin Subd. 4. new text end

new text begin Special Appropriations
new text end

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

new text begin (5) by February 1, 2019, the Board of Regents
must submit a report to the legislative
committees and divisions with jurisdiction
over agriculture and higher education finance
on the status and outcomes of research and
initiatives funded in this paragraph.
new text end

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

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

new text begin (c) new text beginInstitute of Technology
new text end
new text end
new text begin 1,140,000
new text end
new text begin 1,140,000
new text end

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

new text begin (d) System Special
new text end
new text begin 7,181,000
new text end
new text begin 7,181,000
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 2018 and $2,000,000
in fiscal year 2019 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 begin 7,991,000
new text end
new text begin 7,991,000
new text end

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

new text begin (1) $7,491,000 in fiscal year 2018 and
$7,491,000 in fiscal year 2019 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 2018 and $500,000
in fiscal year 2019 are to award competitive
grants to conduct research into the prevention,
treatment, causes, and cures of Alzheimer's
disease and other dementias.
new text end

new text begin Subd. 5. new text end

new text begin Academic Health Center
new text end

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

Sec. 5. new text beginMAYO CLINIC
new text end

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

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

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

new text begin Subd. 2. new text end

new text begin Medical School
new text end

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

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

new text begin Subd. 3. new text end

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

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

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

ARTICLE 2

HIGHER EDUCATION POLICY

Section 1.

Minnesota Statutes 2016, section 43A.06, subdivision 1, is amended to read:


Subdivision 1.

General.

(a) The commissioner shall perform the duties assigned to the
commissioner by sections 3.855, 179A.01 to 179A.25 and this section.

(b) The commissioner shall be the state labor negotiator for purposes of negotiating and
administering agreements with exclusive representatives of employees and shall perform
any other duties delegated by the commissioner subject to the limitations in paragraph (c).

(c) The Board of Trustees of the Minnesota State Colleges and Universities may exercise
the powers under this section for employees included in the units provided in clauses (9),
(10), and (11) of section 179A.10, subdivision 2, except with respect to sections 43A.22 to
43A.31, which shall continue to be the responsibility of the commissioner. The commissioner
shall have the right to review and comment to the Minnesota State Colleges and Universities
on the board's final proposals prior to exchange of final positions with the designated
bargaining units as well as any requests for interest arbitration. new text beginThe legislature encourages
the Board of Trustees, in coordination with the commissioner of management and budget
and the Board of Regents of the University of Minnesota, to endeavor in collective bargaining
negotiations to seek fiscal balance recognizing the ability of the employer to fund the
agreements or awards.
new text endWhen submitting a proposed collective bargaining agreement to the
Legislative Coordinating Commission and the legislature under section 3.855, subdivision
2
, the Board of Trustees must use procedures and assumptions consistent with those used
by the commissioner in calculating the costs of the proposed contract. The Legislative
Coordinating Commission must, when considering a collective bargaining agreement or
arbitration award submitted by the Board of Trustees, evaluate market conditions affecting
the employees in the bargaining unit, equity with other bargaining units in the executive
branch, and the ability of the trustees and the state to fund the agreement or award.

Sec. 2.

Minnesota Statutes 2016, section 135A.031, subdivision 7, is amended to read:


Subd. 7.

Reports.

(a) The University of Minnesota and the Minnesota State Colleges
and Universities systems shall include in their biennial budget proposals to the legislature:

(1) a five-year history of systemwide expenditures, reported by:

(i) functional areas, including instruction, research, public service, student financial aid,
and auxiliary services, and including direct costs and indirect costs, such as institutional
support, academic support, student services, and facilities management, associated with
each functional area; and

(ii) objects of expenditure, such as salaries, benefits, supplies, and equipmentnew text begin, including
a full explanation of all material changes to the expenditure categories when compared to
the prior fiscal year
new text end;

(2) a five-year history of the system's total instructional expenditures per full-year
equivalent student, by level of instruction, including upper-division undergraduate,
lower-division undergraduate, graduate, professional, and other categories of instructional
programs offered by the system;

(3) a five-year history of the system's total revenues by funding source, including tuition,
state operations and maintenance appropriations, state special appropriations, other restricted
state funds, federal appropriations, sponsored research funds, gifts, auxiliary revenue, indirect
cost recovery, and any other revenue sources;

(4) an explanation describing how state appropriations made to the system in the previous
biennium were allocated and the methodology used to determine the allocation;

(5) data describing how the institution reallocated resources to advance the priorities set
forth in the budget submitted under section 135A.034 and the statewide objectives under
section 135A.011. The information must indicate whether instruction and support programs
received a reduction in or additional resources. The total amount reallocated must be clearly
explained;

(6) the tuition rates and fees established by the governing board in each of the past ten
years and comparison data for peer institutions and national averages;

(7) data on the number and proportion of students graduating within four, five, and six
years from universities and within three years from colleges as reported in the integrated
postsecondary education data system. These data must be provided for each institution by
race, ethnicity, and gender. Data and information must be submitted that describe the system's
plan and progress toward attaining the goals set forth in the plan to increase the number and
proportion of students that graduate within four, five, or six years from a university or within
three years from a college;

(8) data on, and the methodology used to measure, the number of students traditionally
underrepresented in higher education enrolled at the system's institutions. Data and
information must be submitted that describe the system's plan and progress toward attaining
the goals set forth in the plan to increase the recruitment, retention, and timely graduation
of students traditionally underrepresented in higher education; deleted text beginand
deleted text end

(9) data on the revenue received from all sources to support research or workforce
development activities or the system's efforts to license, sell, or otherwise market products,
ideas, technology, and related inventions created in whole or in part by the system. Data
and information must be submitted that describe the system's plan and progress toward
attaining the goals set forth in the plan to increase the revenue received to support research
or workforce development activities or revenue received from the licensing, sale, or other
marketing and technology transfer activities by the systemnew text begin;
new text end

new text begin (10) data on consulting contracts from the last two completed fiscal years for which the
work is performed by a consultant who is not an employee of the system, for which the
system paid in excess of $500,000. Data must include the name of the consultant, the total
value of the contract, a description of the work completed, and a description of the reasons
for using an outside consultant and not internal staff. Consulting contracts are defined as
contracts from management, investment and financial advisory services, project management,
computer/technology advisory services, and construction project management; and
new text end

new text begin (11) aggregate data on the following:
new text end

new text begin (i) student demographics;
new text end

new text begin (ii) a five-year history of student enrollment, including student enrollment by legislative
district;
new text end

new text begin (iii) a five-year history of student debt;
new text end

new text begin (iv) a five-year history of mandatory student fees by campus;
new text end

new text begin (v) employee head count and employee demographics;
new text end

new text begin (vi) facilities, including physical space overview, condition, square footage, distribution
by region, any deferred maintenance, and capital bonding requested and received;
new text end

new text begin (vii) administrative costs, including the definition of "administrators" used by the system,
the total number of "administrators" as percent of total employee head count, and system
office budget for Minnesota State Colleges and Universities as percent of total system
general fund revenue; and
new text end

new text begin (viii) college and university operating budgetsnew text end.

(b) Data required by this subdivision shall be submitted by the public postsecondary
systems to the Minnesota Office of Higher Education and the Department of Management
and Budget and included in the biennial budget document. Representatives from each system,
in consultation with the commissioner of management and budget and the commissioner
of the Office of Higher Education, shall develop consistent reporting practices for this
purpose.

(c) To the extent practicable, each system shall develop the ability to respond to legislative
requests for financial analyses that are more detailed than those required by this subdivision,
including but not limited to analyses that show expenditures or revenues by institution or
program, or in multiple categories of expenditures or revenues, and analyses that show
revenue sources for particular types of expenditures.

Sec. 3.

new text begin [135A.0434] MANDATORY STUDENT ACTIVITY FEES REFERENDUM.
new text end

new text begin Subdivision 1. new text end

new text begin Referendum. new text end

new text begin The governing body of a public postsecondary institution
must not increase mandatory student activity fees by greater than two percent relative to
the previous academic year unless the increase is approved by a majority of students voting
in a campus referendum. This section does not apply to fees paid by students that are directly
related to academic, administrative, health services, or debt obligations, including bonds
issued under sections 136F.90 to 136F.98. The Board of Regents of the University of
Minnesota is requested to adopt a policy implementing this section.
new text end

new text begin Subd. 2. new text end

new text begin Penalty. new text end

new text begin If the Board of Regents of the University of Minnesota increases
mandatory student activity fees by more than two percent without approval by a vote of the
student body as described in subdivision 1, the commissioner of management and budget
shall deduct from the university's appropriation base an amount equal to one percent of the
university's appropriation base in the first year of the next biennium.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning September 1, 2017, and applies
to actions taken by a governing body of a public postsecondary institution.
new text end

Sec. 4.

new text begin [135A.158] INFORMATION PROVIDED TO STUDENT PARENTS AND
PREGNANT STUDENTS.
new text end

new text begin A public or regionally accredited private postsecondary educational institution must
provide information according to this section to students who are parents of one or more
children age 12 or younger, and to students who notify the institution that they are pregnant.
The information must include a fact sheet on the legal rights of student parents and pregnant
students and a list of resources to support student parents and pregnant students. The list of
resources may include resources for prenatal care, child care, transportation, and housing.
This information must be available in languages that reflect the primary languages of the
institution's student body. The Board of Regents of the University of Minnesota is requested
to comply with this section.
new text end

Sec. 5.

new text begin [136A.055] DEVELOPMENTAL EDUCATION REPORTING.
new text end

new text begin (a) The commissioner must report on the department's Web site the following summary
data on students who graduated from a Minnesota high school and are attending a public
postsecondary institution in Minnesota, limited to the most recent academic school year:
new text end

new text begin (1) the number of students placed in supplemental or developmental education;
new text end

new text begin (2) the number of students who complete supplemental or developmental education
within one academic year;
new text end

new text begin (3) the number of students that complete gateway courses in one academic year; and
new text end

new text begin (4) time to complete a degree or certificate at a postsecondary institution.
new text end

new text begin (b) Summary data must be aggregated by school district, high school, and postsecondary
institution. Summary data must be disaggregated by race, ethnicity, free or reduced-price
lunch eligibility, and age.
new text end

new text begin (c) The commissioner must post the initial data on the department's Web site on or before
February 15, 2018, and must update the data at least annually thereafter.
new text end

Sec. 6.

Minnesota Statutes 2016, 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 begin94deleted text endnew text begin 84new text end percent
of the parental contribution. For independent students with dependents other than a spouse,
the assigned family responsibility is deleted text begin86deleted text endnew text begin 76new text end percent of the student contribution. For
independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin50deleted text endnew text begin 40new text end percent of the student contribution.

Sec. 7.

Minnesota Statutes 2016, 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 new text begin101 percent of new text endthe 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. 8.

new text begin [136A.1215] GRANTS FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A program is established to provide financial assistance
to students with intellectual and developmental disabilities that attend a Minnesota
postsecondary institution.
new text end

new text begin Subd. 2. new text end

new text begin Eligible students. new text end

new text begin A postsecondary student is eligible for a grant under this
section if the student:
new text end

new text begin (1) meets the eligibility requirements in section 136A.121, subdivision 2;
new text end

new text begin (2) is a student with an intellectual disability, as defined in Code of Federal Regulations,
title 34, section 668.231, and is enrolled in a comprehensive transition and postsecondary
program under that section; and
new text end

new text begin (3) attends an eligible institution, as defined in section 136A.101, subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin To receive a grant under this section, a student must apply in the
form and manner specified by the commissioner.
new text end

new text begin Subd. 4. new text end

new text begin Grant amounts. new text end

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

new text begin (1) any Pell or state grants the student receives; and
new text end

new text begin (2) any institutional aid the student receives.
new text end

new text begin (b) If appropriations are insufficient to provide the full amount calculated under paragraph
(a) to all eligible applicants, the commissioner must reduce the grants of all recipients
proportionally.
new text end

new text begin Subd. 5. new text end

new text begin Reporting. new text end

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

new text begin (1) the number of students receiving an award;
new text end

new text begin (2) the average and total award amounts; and
new text end

new text begin (3) summary demographic data on award recipients.
new text end

Sec. 9.

Minnesota Statutes 2016, section 136A.125, subdivision 2, is amended to read:


Subd. 2.

Eligible students.

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

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

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

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

(4) either has not earned a baccalaureate degree and has been enrolled full time less than
deleted text begin eightdeleted text endnew text begin tennew text end semesters or the equivalent, or has earned a baccalaureate degree and has been
enrolled full time less than deleted text begineightdeleted text endnew text begin tennew text end semesters or the equivalent in a graduate or professional
degree program;

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

(6) is enrolled in at least six credits in an undergraduate program or one credit in a
graduate or professional program in an eligible institution; and

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

(b) A student who withdraws from enrollment for active military service after December
31, 2002, because the student was ordered to active military service as defined in section
190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical
professional, that substantially limits the student's ability to complete the term is entitled to
an additional semester or the equivalent of grant eligibility and will be considered to be in
continuing enrollment status upon return.

Sec. 10.

Minnesota Statutes 2016, section 136A.125, subdivision 4, is amended to read:


Subd. 4.

Amount and length of grants.

(a) The amount of a child care grant must be
based on:

(1) the income of the applicant and the applicant's spouse;

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

(3) the number of eligible children in the applicant's family.

(b) The maximum award to the applicant shall be deleted text begin$2,800deleted text endnew text begin $3,000new text end for each eligible child
per academic year, except that the campus financial aid officer may apply to the office for
approval to increase grants by up to ten percent to compensate for higher market charges
for infant care in a community. The office shall develop policies to determine community
market costs and review institutional requests for compensatory grant increases to ensure
need and equal treatment. The office shall prepare a chart to show the amount of a grant
that will be awarded per child based on the factors in this subdivision. The chart shall include
a range of income and family size.

(c) Applicants with family incomes at or below a percentage of the federal poverty level,
as determined by the commissioner, will qualify for the maximum award. The commissioner
shall attempt to set the percentage at a level estimated to fully expend the available
appropriation for child care grants. Applicants with family incomes exceeding that threshold
will receive the maximum award minus ten percent of their income exceeding that threshold.
If the result is less than zero, the grant is zero.

(d) The academic year award amount must be disbursed by academic term using the
following formula:

(1) the academic year amount described in paragraph (b);

(2) divided by the number of terms in the academic year;

(3) divided by 15 for undergraduate students and six for graduate and professional
students; and

(4) multiplied by the number of credits for which the student is enrolled that academic
term, up to 15 credits for undergraduate students and six for graduate and professional
students.

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

Sec. 11.

Minnesota Statutes 2016, section 136A.1275, is amended to read:


136A.1275 deleted text beginGRANTS TO STUDENT TEACHERS IN SHORTAGE AREASdeleted text endnew text begin
TEACHER CANDIDATE GRANTS
new text end.

Subdivision 1.

Establishment.

new text begin(a) new text endThe commissioner of the Office of Higher Education
must establish a grant program for student teaching stipends for low-income students enrolled
in a Board of Teaching-approved teacher preparation program who deleted text beginare interested in teaching
in a high needs subject area or region
deleted text endnew text begin intend to teach in a shortage areanew text end after graduating and
receiving their teaching licensenew text begin or belong to an underrepresented racial or ethnic groupnew text end. deleted text beginFor
purposes of this section, "high needs subject area or region" means a shortage of teachers
teaching in particular subject areas or a shortage of teachers teaching in particular regions
of the state identified in the commissioner of education's biennial survey of districts under
section 127A.05, subdivision 6, or in another Department of Education survey on teacher
shortages.
deleted text end

new text begin (b) "Shortage area" means a license field or economic development region within
Minnesota defined as a shortage area by the Department of Education using data collected
for the teacher supply and demand report under section 127A.05, subdivision 6, or other
surveys conducted by the Department of Education that provide indicators for teacher supply
and demand.
new text end

Subd. 2.

Eligibility.

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

(1) be enrolled in a Board of Teaching-approved teacher preparation program that requires
at least 12 weeks of student teaching deleted text beginand results in the teacher candidate receivingdeleted text endnew text begin in order
to be recommended for
new text end a full professional teaching license deleted text beginenabling the licensee to teach
in a high needs subject area or region
deleted text end; deleted text beginand
deleted text end

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

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

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

Subd. 3.

Administration; repayment.

(a) The commissioner must establish an
application process and other guidelines for implementing this programnew 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
new text end.

(b) The commissioner must determine each academic year the stipend amount new text beginup to
$7,500
new text endbased on the amount of available funding deleted text beginanddeleted text endnew text begin,new text end the number of eligible applicantsnew text begin,
and the financial need of the applicants
new text end.

new text begin (c) The percentage of the total award reserved for teacher candidates who identify as
belonging to an underrepresented racial or ethnic group must be equal to or greater than the
total percentage of students of underrepresented racial or ethnic groups 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.
new text end

Sec. 12.

new text begin [136A.1789] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

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

new text begin (c) "Qualified education loan" means a government, commercial, or foundation loan
used by an individual for actual costs paid for tuition to a postsecondary institution located
in Minnesota for a professional flight training degree.
new text end

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

new text begin Subd. 2. new text end

new text begin Creation of account. new text end

new text begin (a) An aviation degree loan forgiveness program account
is established 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.
new text end

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

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

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

new text begin (1) be a qualified pilot or qualified aircraft technician;
new text end

new text begin (2) have qualified education loans;
new text end

new text begin (3) reside in Minnesota; and
new text end

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

new text begin (b) An applicant selected to participate must sign a contract to agree to serve a minimum
one-year 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.
new text end

new text begin Subd. 4. new text end

new text begin Service obligation. new text end

new text begin (a) Before receiving loan repayment disbursements and as
requested, a participant must verify to the commissioner that the participant is employed in
a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
new text end

new text begin (b) If a participant does not fulfill the required service obligation, the commissioner
must collect from the participant the total amount paid to the participant under the loan
forgiveness program plus interest at a rate established according to section 270C.40. The
commissioner must deposit the money collected in the aviation degree loan forgiveness
account. The commissioner must allow waivers of all or part of the money owed the
commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented
fulfillment of the minimum service commitment.
new text end

new text begin Subd. 5. new text end

new text begin Loan forgiveness. new text end

new text begin (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.
new text end

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

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

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

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

new text begin (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.
new text end

new text begin (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 six months of receipt of the final disbursement, the commissioner must
collect from the participant the amount of the final disbursement. The commissioner must
deposit the money collected in the aviation degree loan forgiveness program account.
new text end

new text begin Subd. 6. new text end

new text begin Rules. new text end

new text begin The commissioner may adopt rules to implement this section.
new text end

Sec. 13.

new text begin [136A.1794] AGRICULTURAL EDUCATION LOAN FORGIVENESS
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Qualified education loan" means a government, commercial, or foundation loan for
actual costs paid for tuition, reasonable education expenses, and reasonable living expenses
related to the graduate or undergraduate education of a qualified teacher.
new text end

new text begin (c) "Qualified teacher" means a teacher licensed under chapter 122A who:
new text end

new text begin (1) is employed in a nonadministrative position teaching agricultural education in any
grade from grades 5 through 12 at a Minnesota school during the current year; and
new text end

new text begin (2) has completed an undergraduate or graduate program in agricultural education at a
college or university approved by the state of Minnesota to prepare persons for teacher
licensure.
new text end

new text begin (d) "School" means the following:
new text end

new text begin (1) a school or program operated by a school district or a group of school districts;
new text end

new text begin (2) a tribal contract school eligible to receive aid according to section 124D.83;
new text end

new text begin (3) a charter school; or
new text end

new text begin (4) a private school.
new text end

new text begin Subd. 2. new text end

new text begin Account; appropriation. new text end

new text begin An agricultural education loan forgiveness account
is established in the special revenue fund to provide qualified teachers with financial
assistance to repay qualified education loans. Money in the account, including interest, is
appropriated to the commissioner for purposes of this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligibility. new text end

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

new text begin (1) be a qualified teacher;
new text end

new text begin (2) have qualified education loans; and
new text end

new text begin (3) submit an application to the commissioner in the form and manner prescribed by the
commissioner.
new text end

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

new text begin Subd. 4. new text end

new text begin Service obligation. new text end

new text begin (a) Before receiving loan repayment disbursements and as
requested, a participant must verify to the commissioner that the participant is employed in
a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
new text end

new text begin (b) If a participant does not fulfill the required service obligation, the commissioner
must collect from the participant the total amount paid to the participant under the loan
forgiveness program plus interest at a rate established according to section 270C.40. The
commissioner must deposit the money collected in the agricultural education loan forgiveness
account. The commissioner must allow waivers of all or part of the money owed the
commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented
fulfillment of the minimum service commitment.
new text end

new text begin Subd. 5. new text end

new text begin Loan forgiveness. new text end

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

new text begin (b) The commissioner must make annual disbursements directly to the eligible participant
of $3,000 or the balance of the participant's qualified education loans, whichever is less,
for each year that the participant meets the eligibility requirements under subdivision 3, up
to a maximum of five years.
new text end

new text begin (c) 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.
new text end

Sec. 14.

Minnesota Statutes 2016, section 136A.653, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Regionally accredited institutions in Minnesota. new text end

new text begin (a) A regionally accredited
postsecondary institution with its primary physical location in Minnesota is exempt from
the provisions of sections 136A.61 to 136A.71, including related fees, when it creates new
or modifies existing:
new text end

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

new text begin (2) nondegree programs within approved degrees;
new text end

new text begin (3) underlying curriculum or courses;
new text end

new text begin (4) modes of delivery; and
new text end

new text begin (5) locations.
new text end

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

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

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

Sec. 15.

Minnesota Statutes 2016, section 136A.685, is amended to read:


136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR
MISREPRESENTATION.

new text begin (a) new text endThe office deleted text beginshall not providedeleted text endnew text begin may revoke, or deny an application for,new text end registration or
degree or name approval to a school if there has been a criminal, civil, or administrative
adjudication of fraud or misrepresentation in Minnesota or in another state or jurisdiction
against the school or its owner, officers, agents, or sponsoring organization. new text beginIf the
adjudication was related to a particular academic program, the office may revoke or deny
an application for:
new text end

new text begin (1) degree approval for the program only;
new text end

new text begin (2) registration for the school; or
new text end

new text begin (3) name approval for the school.
new text end

new text begin (b) new text endThe adjudication of fraud or misrepresentation is sufficient cause for the office to
determine that a school:

(1) does not qualify for exemption under section 136A.657; or

(2) is not approved to grant degrees or to use the term "academy," "college," "institute,"
or "university" in its name.

Sec. 16.

Minnesota Statutes 2016, section 136A.902, subdivision 1, is amended to read:


Subdivision 1.

Membership.

The commissioner shall appoint a deleted text begin12-memberdeleted text end new text begin14-membernew text end
advisory council consisting of:

(1) one member representing the University of Minnesota Medical School;

(2) one member representing the Mayo Medical School;

(3) one member representing the Courage Kenny Rehabilitation Center;

(4) one member representing Hennepin County Medical Center;

(5) one member who is a neurosurgeon;

(6) one member who has a spinal cord injury;

(7) one member who is a family member of a person with a spinal cord injury;

(8) one member who has a traumatic brain injury;

(9) one member who is a veteran who has a spinal cord injury deleted text beginor a traumatic brain injurydeleted text end;

(10)new text begin one member who is a veteran who has a traumatic brain injury;
new text end

new text begin (11)new text end one member who is a family member of a person with a traumatic brain injury;

deleted text begin (11)deleted text endnew text begin (12)new text end one member who is a physician specializing in the treatment of spinal cord
injury deleted text beginrepresenting Gillette Children's Specialty Healthcaredeleted text end; deleted text beginand
deleted text end

deleted text begin (12)deleted text endnew text begin (13)new text end one member who is a physician specializing in the treatment of traumatic brain
injurynew text begin; and
new text end

new text begin (14) one member representing Gillette Children's Specialty Healthcarenew text end.

Sec. 17.

new text begin [136F.38] WORKFORCE DEVELOPMENT SCHOLARSHIPS.
new text end

new text begin Subdivision 1. new text end

new text begin Program established. new text end

new text begin The board shall develop a scholarship program
to incentivize new students to enter high-demand occupations upon graduation.
new text end

new text begin Subd. 2. new text end

new text begin Scholarship awards. new text end

new text begin 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.
new text end

new text begin Subd. 3. new text end

new text begin Program eligibility. new text end

new text begin (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; or (4) information technology.
new text end

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

new text begin Subd. 4. new text end

new text begin Renewal; cap. new text end

new text begin A student who has received a scholarship may apply again but
total lifetime awards are not to exceed $5,000 per student. Students may only be awarded
a second scholarship upon completion of two academic terms.
new text end

new text begin Subd. 5. new text end

new text begin Administration. new text end

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

new text begin (b) The board shall give preference to students in financial need.
new text end

new text begin Subd. 6. new text end

new text begin Report required. new text end

new text begin 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:
new text end

new text begin (1) the number of students receiving a scholarship at each two-year college during the
previous fiscal year;
new text end

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

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

new text begin (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;
new text end

new text begin (5) a list of occupations scholarship recipients are entering; and
new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2018.
new text end

Sec. 18.

new text begin [137.45] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES.
new text end

new text begin Subdivision 1. new text end

new text begin Program required. new text end

new text begin The Board of Regents of the University of Minnesota
is requested to offer an academic program consistent with the requirements of this section
for students with intellectual and developmental disabilities at the University of
Minnesota-Morris.
new text end

new text begin Subd. 2. new text end

new text begin Enrollment and admission. new text end

new text begin The program must establish an enrollment goal
of at least 15 incoming students per academic year. The board is requested to establish an
application process for the program. A student who successfully completes the program
must be awarded a certificate, diploma, or other appropriate academic credential.
new text end

new text begin Subd. 3. new text end

new text begin Curriculum and activities. new text end

new text begin (a) The program must provide an inclusive,
full-time, two-year residential college experience for students with intellectual and
developmental disabilities. The curriculum must include:
new text end

new text begin (1) core courses that develop life skills, financial literacy, and the ability to live
independently;
new text end

new text begin (2) rigorous academic work in a student's chosen field of study; and
new text end

new text begin (3) an internship, apprenticeship, or other skills-based experience to prepare for
meaningful employment upon completion of the program.
new text end

new text begin (b) In addition to academic requirements, the program must allow participating students
the opportunity to engage fully in campus life. Program activities must include, but are not
limited to:
new text end

new text begin (1) the establishment of on-campus mentoring and peer support communities; and
new text end

new text begin (2) opportunities for personal growth through leadership development and other
community engagement activities.
new text end

new text begin (c) The program may tailor its curriculum and activities to highlight academic programs,
student and community life experiences, and employment opportunities unique to the campus
or the region where the campus is located.
new text end

new text begin Subd. 4. new text end

new text begin Reporting. new text end

new text begin By January 15 of each year, the board must submit a report on the
program to the chairs and ranking minority members of the committees in the house of
representatives and the senate with jurisdiction over higher education finance and policy.
The report must include, but need not be limited to, information regarding:
new text end

new text begin (1) the number of students participating in the program;
new text end

new text begin (2) program goals and outcomes; and
new text end

new text begin (3) the success rate of participants.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning in the 2018-2019 academic
year.
new text end

Sec. 19.

new text begin [137.47] FETAL TISSUE RESEARCH.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Aborted fetal tissue" means fetal tissue that is available as a result of an elective
abortion.
new text end

new text begin (c) "Fetal tissue" means any body part, organ, or cell of an unborn human child. Fetal
tissue does not include tissue or cells obtained from a placenta, umbilical cord, or amniotic
fluid.
new text end

new text begin (d) "Institutional Review Board" or "IRB" means the University of Minnesota's
Institutional Review Board, the primary unit responsible for oversight of human subjects
research protections.
new text end

new text begin (e) "Fetal Tissue Research Committee" or "FTR" means an oversight committee at the
University of Minnesota with the responsibility to oversee, review, and approve or deny
research using fetal tissue.
new text end

new text begin (f) "Non-aborted fetal tissue" means fetal tissue that is available as a result of a
miscarriage or stillbirth, or fetal tissue from a living unborn child.
new text end

new text begin (g) "Research" means systematic investigation, including development, testing, and
evaluation, designed to develop or contribute to generalizable knowledge. Research does
not include a procedure or test administered to a particular patient by a physician for medical
purposes.
new text end

new text begin Subd. 2. new text end

new text begin Approval by the Fetal Tissue Research Committee. new text end

new text begin (a) A researcher at the
University of Minnesota must obtain approval from the FTR before conducting research
using fetal tissue. The FTR must consider whether alternatives to fetal tissue would be
sufficient for the research. If the proposed research involves aborted fetal tissue, the
researcher must provide a written narrative justifying the use of aborted fetal tissue and
discussing whether alternatives to aborted fetal tissue, including non-aborted fetal tissue,
can be used.
new text end

new text begin (b) The FTR must submit its decision to the IRB. The IRB is requested to review the
conclusions of the FTR to ensure that all alternatives have been considered.
new text end

new text begin Subd. 3. new text end

new text begin Legislative report. new text end

new text begin (a) No later than January 15 of each year, the Board of
Regents must submit a report to the chairs and ranking minority members of the legislative
committees with jurisdiction over higher education policy and finance and health and human
services policy and finance. The report must describe:
new text end

new text begin (1) all fetal tissue research proposals submitted to the FTR or IRB, including any written
narrative required under subdivision 2;
new text end

new text begin (2) whether the research proposal involved aborted fetal tissue;
new text end

new text begin (3) action by the FTR or IRB on all fetal tissue research proposals, including whether
the proposal was approved by the FTR or IRB;
new text end

new text begin (4) a list of all new or ongoing fetal tissue research projects at the university, including:
new text end

new text begin (i) the date that the project was approved by the FTR or IRB;
new text end

new text begin (ii) the source of funding for the project;
new text end

new text begin (iii) the goal or purpose of the project;
new text end

new text begin (iv) whether the fetal tissue used is aborted fetal tissue or non-aborted fetal tissue;
new text end

new text begin (v) the source of the fetal tissue used;
new text end

new text begin (vi) references to any publicly available information about the project, such as National
Institutes of Health grant award information; and
new text end

new text begin (vii) references to any publications resulting from the project.
new text end

new text begin (b) The report must not include a researcher's name, other identifying information,
contact information, or the location of a laboratory or office.
new text end

new text begin Subd. 4. new text end

new text begin Education on compliance to applicable laws and policies. new text end

new text begin The University
of Minnesota is requested to conduct education programs for all students and employees
engaged in research on fetal tissue. Programs are requested to include mandatory
comprehensive training on applicable federal and state laws, university policies and
procedures, and other professional standards related to the respectful, humane, and ethical
treatment of fetal tissue in research.
new text end

Sec. 20.

Minnesota Statutes 2016, section 148.89, subdivision 5, is amended to read:


Subd. 5.

Practice of psychology.

"Practice of psychology" means the observation,
description, evaluation, interpretation, or modification of human behavior by the application
of psychological principles, methods, or procedures for any reason, including to prevent,
eliminate, or manage symptomatic, maladaptive, or undesired behavior and to enhance
interpersonal relationships, work, life and developmental adjustment, personal and
organizational effectiveness, behavioral health, and mental health. The practice of psychology
includes, but is not limited to, the following services, regardless of whether the provider
receives payment for the services:

(1) psychological research and teaching of psychologynew text begin subject to the exemptions in
section 148.9075
new text end;

(2) assessment, including psychological testing and other means of evaluating personal
characteristics such as intelligence, personality, abilities, interests, aptitudes, and
neuropsychological functioning;

(3) a psychological report, whether written or oral, including testimony of a provider as
an expert witness, concerning the characteristics of an individual or entity;

(4) psychotherapy, including but not limited to, categories such as behavioral, cognitive,
emotive, systems, psychophysiological, or insight-oriented therapies; counseling; hypnosis;
and diagnosis and treatment of:

(i) mental and emotional disorder or disability;

(ii) alcohol and substance dependence or abuse;

(iii) disorders of habit or conduct;

(iv) the psychological aspects of physical illness or condition, accident, injury, or
disability, including the psychological impact of medications;

(v) life adjustment issues, including work-related and bereavement issues; and

(vi) child, family, or relationship issues;

(5) psychoeducational services and treatment; and

(6) consultation and supervision.

Sec. 21.

new text begin [148.9075] LICENSURE EXEMPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Teaching and research. new text end

new text begin Nothing in sections 148.88 to 148.98 shall be
construed to prevent a person employed in a secondary, postsecondary, or graduate institution
from teaching and conducting research in psychology within an educational institution that
is recognized by a regional accrediting organization or by a federal, state, county, or local
government institution, agency, or research facility, so long as:
new text end

new text begin (1) the institution, agency, or facility provides appropriate oversight mechanisms to
ensure public protections; and
new text end

new text begin (2) the person is not providing direct clinical services to a client or clients as defined in
sections 148.88 to 148.98.
new text end

new text begin Subd. 2. new text end

new text begin Students. new text end

new text begin Nothing in sections 148.88 to 148.98 shall prohibit the practice of
psychology under qualified supervision by a practicum psychology student, a predoctoral
psychology intern, or an individual who has earned a doctoral degree in psychology and is
in the process of completing their postdoctoral supervised psychological employment.
new text end

Sec. 22.

new text begin [298.2215] COUNTY SCHOLARSHIP PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin A county may establish a scholarship fund from any
unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or
298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used
at a two-year Minnesota State Colleges and Universities institution within the county. The
county shall establish procedures for applying for and distributing the scholarships.
new text end

new text begin Subd. 2. new text end

new text begin Eligibility. new text end

new text begin An applicant for a scholarship under this section must be a resident
of the county at the time of the applicant's high school graduation. The county may establish
additional eligibility criteria.
new text end

Sec. 23.

Laws 2014, chapter 312, article 1, section 15, is amended to read:


Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.

new text begin (a) new text endFor fiscal years 2016 to deleted text begin2041deleted text endnew text begin 2017new text end, $3,500,000 is added to the base operations and
maintenance appropriation to the Board of Regents of the University of Minnesota in Laws
2013, chapter 99, article 1, section 5.

new text begin (b) For fiscal years 2018 to 2040, $3,312,000 is added to the base operations and
maintenance appropriation to the Board of Regents of the University of Minnesota in Laws
2013, chapter 99, article 1, section 5.
new text end

Sec. 24. new text beginSUPPLEMENTAL AID FOR TWO-YEAR MNSCU INSTITUTIONS.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall 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

Sec. 25. new text beginDEVELOPMENTAL EDUCATION REFORM.
new text end

new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities shall create
a plan to reform developmental education offerings on system campuses aimed at reducing
the number of students placed into developmental education. The plan must include, but is
not limited to:
new text end

new text begin (1) a systemwide multiple measures placement plan to guide campuses in placement of
students into developmental education courses;
new text end

new text begin (2) uniform cut scores for student placement, where appropriate, which will lead to fewer
students being placed into developmental education courses;
new text end

new text begin (3) other identified system policy changes, including an appeals process, that will decrease
the number of students being placed into developmental education courses;
new text end

new text begin (4) accelerated pathways in mathematics, reading, and composition to ensure students
can complete developmental education work in no more than one year, including allowing
for students to complete college-level gateway courses in one year whenever possible;
new text end

new text begin (5) a comprehensive examination of the cost structure of developmental education,
including potential financial incentives for students or other mechanisms to lower the cost
of developmental offerings for students; and
new text end

new text begin (6) identified best practices and targeted support strategies such as the use of supplemental
instruction, that may be used on every system campus around developmental education
offerings.
new text end

new text begin (b) The plan must include deadlines for implementation of proposed changes and must
be submitted to the chairs and ranking minority members of the legislative committees with
jurisdiction over higher education finance and policy by February 15, 2018.
new text end

new text begin (c) The plan, in its entirety, shall be implemented by the start of the 2020-2021 academic
term, with individual provisions being implemented earlier as dictated by the plan.
new text end

Sec. 26. new text beginGREATER MINNESOTA OUTREACH AND RECRUITMENT.
new text end

new text begin The Board of Regents of the University of Minnesota is requested to develop a plan to
conduct outreach and recruitment of students from Minnesota, specifically identifying
mechanisms to increase the number of students from greater Minnesota who are admitted
to the university campus located in the metropolitan area. Greater Minnesota is defined as
any area other than the area described in Minnesota Statutes, section 473.121, subdivision
4. The plan must be submitted to the chairs and ranking members of the senate and house
of representatives legislative committees with jurisdiction over higher education finance
and policy by February 15, 2018.
new text end

Sec. 27. new text beginUNIVERSITY OF MINNESOTA FETAL TISSUE RESEARCH;
LEGISLATIVE AUDITOR REVIEW.
new text end

new text begin (a) The legislative auditor is requested to complete a comprehensive review of the use
of fetal tissue in research activities at the University of Minnesota. The review must include:
new text end

new text begin (1) the total number of research activities in which fetal tissue is currently or has been
previously used, including those that are in progress and those that have been completed;
new text end

new text begin (2) the cost of acquiring fetal tissues for use in research activities, itemized by the source
of funds used for procurement, including funds from federal, state, and other public sources,
and funds derived from student tuition and fees;
new text end

new text begin (3) the extent to which the conduct of the research activities complies with applicable
federal and state laws related to acquisition, sale, handling, and disposition of human tissues,
including fetal tissues;
new text end

new text begin (4) the extent to which the conduct of the research activities complies with applicable
Board of Regents policies and procedures related to acquisition, sale, handling, and
disposition of human tissues, including fetal tissues; and
new text end

new text begin (5) whether applicable Board of Regents policies include provisions to ensure fetal tissue
is used in research activities only when necessary, and to ensure that the research activities
are conducted in an ethical manner, including whether procedures and protocols for oversight
have been implemented to verify compliance with these policies.
new text end

new text begin (b) As used in this section, "research activities" include any academic fetal tissue research
or fetal tissue transplantation research activity or program conducted in a University of
Minnesota facility, or that is supported, directly or indirectly, by University of Minnesota
funds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. The
legislative auditor is requested to complete the review no later than one year following final
enactment.
new text end

Sec. 28. new text beginONGOING APPROPRIATION.
new text end

new text begin The appropriation under Laws 2016, chapter 189, article 25, section 62, subdivision 11,
may be used to provide grants for any purpose under Minnesota Statutes, section 136A.1275.
new text end

ARTICLE 3

OFFICE OF HIGHER EDUCATION AGENCY POLICY

Section 1.

Minnesota Statutes 2016, section 135A.15, subdivision 1a, is amended to read:


Subd. 1a.

Sexual assault definition.

For the purposes of this section, "sexual assault"
means deleted text beginforcible sex offensesdeleted text endnew text begin rape, sex offenses - fondling, sex offenses - incest, or sex
offenses - statutory rape
new text end as defined in Code of Federal Regulations, title 34, part 668, subpart
D, appendix A, as amended.

Sec. 2.

Minnesota Statutes 2016, section 136A.103, is amended to read:


136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.

(a) A postsecondary institution is eligible for state student aid under chapter 136A and
sections 197.791 and 299A.45, if the institution is located in this state and:

(1) is operated by this state or the Board of Regents of the University of Minnesota; or

(2) is operated privately and, as determined by the office, meets the requirements of
paragraph (b).

(b) A private institution must:

(1) maintain academic standards substantially equivalent to those of comparable
institutions operated in this state;

(2) be licensed or registered as a postsecondary institution by the office; and

(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
the Higher Education Act of 1965, Public Law 89-329, as amended; or

(ii) if an institution was participating in state student aid programs as of June 30, 2010,
and the institution did not participate in the federal Pell Grant program by June 30, 2010,
the institution must require every student who enrolls to sign a disclosure form, provided
by the office, stating that the institution is not participating in the federal Pell Grant program.

(c) An institution that offers only graduate-level degrees or graduate-level nondegree
programsdeleted text begin, or that offers only degrees or programs that do not meet the required minimum
program length to participate in the federal Pell Grant program,
deleted text end is an eligible institution if
the institution is licensed or registered as a postsecondary institution by the office.

(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell
Grant program within four calendar years of the first ownership change to continue eligibility.

(e) An institution that loses its eligibility for the federal Pell Grant program is not an
eligible institution.

new text begin (f) An institution must maintain adequate administrative and financial standards and
compliance with all state statutes, rules, and administrative policies related to state financial
aid programs.
new text end

Sec. 3.

Minnesota Statutes 2016, section 136A.1795, subdivision 4, is amended to read:


Subd. 4.

Loan forgiveness.

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

(b) The commissioner must select participants based on their suitability for practice
serving the designated rural area, as indicated by experience or training. The commissioner
must give preference to applicants closest to completing their training.

(c) The commissioner must make annual disbursements directly to the participant of
$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
for each year that a participant meets the service obligation required under subdivision 3,
paragraph (b), up to a maximum of five years.

(d) Before receiving loan repayment disbursements and as requested, the participant
must complete and return to the commissioner deleted text beginan affidavitdeleted text endnew text begin a confirmationnew text end of practice form
provided by the commissioner verifying that the participant is practicing as required under
subdivision 2, paragraph (a). The participant must provide the commissioner with verification
that the full amount of loan repayment disbursement received by the participant has been
applied toward the designated loans. After each disbursement, verification must be received
by the commissioner and approved before the next loan repayment disbursement is made.

(e) Participants who move their practice remain eligible for loan repayment as long as
they practice as required under subdivision 2, paragraph (a).

Sec. 4.

Minnesota Statutes 2016, section 136A.62, is amended by adding a subdivision to
read:


new text begin Subd. 8. new text end

new text begin Entity. new text end

new text begin "Entity" means a specific school or campus location.
new text end

Sec. 5.

Minnesota Statutes 2016, section 136A.646, is amended to read:


136A.646 ADDITIONAL SECURITY.

(a) deleted text beginIn the eventdeleted text end new text beginNew 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
new text endany registered institution new text beginthat new text endis 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),
deleted text begin the institutiondeleted text end shall provide a surety bond deleted text beginconditioned upon the faithful performance of all
contracts and agreements with students
deleted text end 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.

(b) 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; deleted text beginor
deleted text end

(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 bonddeleted text begin.deleted text endnew text begin; or
new text end

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

(c) 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.

new text begin (d) 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:
new text end

new text begin (1) cash payments made by the student or on behalf of a student;
new text end

new text begin (2) private student loans; and
new text end

new text begin (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.
new text end

Sec. 6.

Minnesota Statutes 2016, section 136A.65, subdivision 1a, is amended to read:


Subd. 1a.

Accreditation; requirement.

new text begin(a) new text endA school must not be registered deleted text beginor authorized
to offer any degree at any level
deleted text end unless the school deleted text beginis accrediteddeleted text endnew text begin has institutional accreditationnew text end
by an agency recognized by the United States Department of Education for purposes of
eligibility to participate in Title IV federal financial aid programs. Any registered school
undergoing institutional accreditation shall inform the office of site visits by the accrediting
agency and provide office staff the opportunity to attend the visits, deleted text beginincludingdeleted text endnew text begin excludingnew text end any
exit interviews. The institution must provide the office with a copy of the final report upon
deleted text begin receiptdeleted text endnew text begin request of the officenew text end.

new text begin (b) A school must not be authorized to offer any degree unless the program has
programmatic accreditation or the school has institutional accreditation by an agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. Any program offered by a registered
school that does not have institutional accreditation and is undergoing programmatic
accreditation shall inform the office of site visits by the accrediting agency and provide
office staff the opportunity to attend the visits, excluding any exit interviews. The school
must provide the office with a copy of the final report by the accreditor upon request of the
office.
new text end

Sec. 7.

Minnesota Statutes 2016, section 136A.65, subdivision 4, is amended to read:


Subd. 4.

Criteria for approval.

(a) A school applying to be registered and to have its
degree or degrees and name approved must substantially meet the following criteria:

(1) the school has an organizational framework with administrative and teaching personnel
to provide the educational programs offered;

(2) the school has financial resources sufficient to meet the school's financial obligations,
including refunding tuition and other charges consistent with its stated policy if the institution
is dissolved, or if claims for refunds are made, to provide service to the students as promised,
and to provide educational programs leading to degrees as offered;

(3) the school operates in conformity with generally accepted deleted text beginbudgeting anddeleted text end accounting
principlesnew text begin according to the type of schoolnew text end;

(4) the school provides an educational program leading to the degree it offers;

(5) the school provides appropriate and accessible library, laboratory, and other physical
facilities to support the educational program offered;

(6) the school has a policy on freedom or limitation of expression and inquiry for faculty
and students which is published or available on request;

(7) the school uses only publications and advertisements which are truthful and do not
give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school,
its personnel, programs, services, or occupational opportunities for its graduates for promotion
and student recruitment;

(8) the school's compensated recruiting agents who are operating in Minnesota identify
themselves as agents of the school when talking to or corresponding with students and
prospective students;

(9) the school provides information to students and prospective students concerning:

(i) comprehensive and accurate policies relating to student admission, evaluation,
suspension, and dismissal;

(ii) clear and accurate policies relating to granting credit for prior education, training,
and experience and for courses offered by the school;

(iii) current schedules of fees, charges for tuition, required supplies, student activities,
housing, and all other standard charges;

(iv) policies regarding refunds and adjustments for withdrawal or modification of
enrollment status; and

(v) procedures and standards used for selection of recipients and the terms of payment
and repayment for any financial aid program; and

(10) the school must not withhold a student's official transcript because the student is
in arrears or in default on any loan issued by the school to the student if the loan qualifies
as an institutional loan under United States Code, title 11, section 523(a)(8)(b).

(b) An application for degree approval must also include:

(i) title of degree and formal recognition awarded;

(ii) location where such degree will be offered;

(iii) proposed implementation date of the degree;

(iv) admissions requirements for the degree;

(v) length of the degree;

(vi) projected enrollment for a period of five years;

(vii) the curriculum required for the degree, including course syllabi or outlines;

(viii) statement of academic and administrative mechanisms planned for monitoring the
quality of the proposed degree;

(ix) statement of satisfaction of professional licensure criteria, if applicable;

(x) documentation of the availability of clinical, internship, externship, or practicum
sites, if applicable; and

(xi) statement of how the degree fulfills the institution's mission and goals, complements
existing degrees, and contributes to the school's viability.

Sec. 8.

Minnesota Statutes 2016, section 136A.65, subdivision 7, is amended to read:


Subd. 7.

Conditional approval.

new text begin(a) new text endThe office may grant new text begina school a one-year new text endconditional
approval for a degree or use of a term in its name deleted text beginfor a period of less than one yeardeleted text end if doing
so would be in the best interests of currently enrolled students or prospective students.new text begin
Conditional approval of a degree or use of a term under this paragraph must not exceed a
period of three years.
new text end

new text begin (b) The office may grantnew text end new schools deleted text beginmay be granteddeleted text endnew text begin and programs a one-yearnew text end conditional
approval for degrees or deleted text beginnames annually for a period not to exceed five yearsdeleted text end new text beginuse of a term
in its name
new text endto allow deleted text beginthemdeleted text endnew text begin the schoolnew text end the opportunity to apply for and receive accreditation
as required in subdivision 1a. new text beginConditional approval of a school or program under this
paragraph must not exceed a period of five years.
new text endA new school new text beginor program new text endgranted
conditional approval may be allowed to continue deleted text beginas a registered institutiondeleted text end in order to
complete an accreditation process upon terms and conditions the office determines.

new text begin (c) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school the opportunity to apply for and receive
accreditation as required in subdivision 1a if the school's accrediting agency is no longer
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.
new text end

new text begin (d) The office may grant a registered school a one-year conditional approval for degrees
or use of a term in its name to allow the school to change to a different accrediting agency
recognized by the United States Department of Education for purposes of eligibility to
participate in Title IV federal financial aid programs. The office must not grant conditional
approvals under this paragraph to a school for a period of more than five years.
new text end

Sec. 9.

Minnesota Statutes 2016, section 136A.653, is amended to read:


136A.653 EXEMPTIONS.

new text begin Subdivision 1. new text end

new text begin Application. new text end

new text begin A school that seeks an exemption under this section from
the provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the
school meets the requirements of an exemption. An exemption expires two years from the
date of approval or until a school adds a new program or makes a modification equal to or
greater than 25 percent to an existing educational program. If a school is reapplying for an
exemption, the application must be submitted to the office 90 days before the current
exemption expires.
new text end

deleted text begin Subdivision 1. deleted text end new text begin Subd. 1a. new text end

deleted text beginExemptiondeleted text endnew text begin Private career schoolsnew text end.

A school that is subject
to licensing by the office under sections 136A.82 to 136A.834 is exempt from the provisions
of sections 136A.61 to 136A.71. The determination of the office as to whether a particular
school is subject to regulation under sections 136A.82 to 136A.834 is final for the purposes
of this exemption.

Subd. 2.

Educational program; nonprofit organizations.

Educational programs which
are sponsored by a bona fide and nonprofit trade, labor, business, professional or fraternal
organization, which programs are conducted solely for that organization's membership or
for the members of the particular industries or professions served by that organization, and
which are not available to the public on a fee basis, are exempted from the provisions of
sections 136A.61 to 136A.71.

Subd. 3.

Educational program; business firms.

Educational programs which are
sponsored by a business firm for the training of its employees or the employees of other
business firms with which it has contracted to provide educational services at no cost to the
employees are exempted from the provisions of sections 136A.61 to 136A.71.

Subd. 3a.

Tuition-free educational courses.

A school, including a school using an
online platform service, offering training, courses, or programs is exempt from sections
136A.61 to 136A.71, to the extent deleted text beginit offers tuition-free courses to students in Minnesota. A
course will be considered tuition-free if the school charges no tuition and the required fees
and other required charges paid by the student for the course
deleted text endnew text begin tuition, fees, and any other
charges for a student to participate
new text end do not exceed two percent of the most recent average
undergraduate tuition and required fees as of January 1 of the current year charged for
full-time students at all degree-granting institutions as published annually by the United
States Department of Education as of January 1 of each year. To qualify for an exemption,
a school or online platform service must prominently display a notice comparable to the
following: "IMPORTANT: Each educational institution makes its own decision regarding
whether to accept completed coursework for credit. Check with your university or college."

Subd. 4.

Voluntary submission.

Any school or program exempted from the provisions
of sections 136A.61 to 136A.71 by the provisions of this section may voluntarily submit to
the provisions of those sections.

Sec. 10.

Minnesota Statutes 2016, section 136A.657, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin A school that seeks an exemption under this section from the
provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the
school meets the requirements of an exemption. An exemption expires two years from the
date of approval or when a school adds a new program or makes a modification equal to or
greater than 25 percent to an existing educational program. If a school is reapplying for an
exemption, the application must be submitted to the office 90 days before the current
exemption expires.
new text end

Sec. 11.

Minnesota Statutes 2016, section 136A.67, is amended to read:


136A.67 REGISTRATION REPRESENTATIONS.

No school and none of its officials or employees shall advertise or represent in any
manner that such school is approved or accredited by the office or the state of Minnesota,
except a school which is duly registered with the office, or any of its officials or employees,
may represent in advertising and shall disclose in catalogues, applications, and enrollment
materials that the school is registered with the office by prominently displaying the following
statement: "(Name of school) is registered with the deleted text beginofficedeleted text endnew text begin Minnesota Office of Higher
Education
new text end pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of
the institution. Credits earned at the institution may not transfer to all other institutions." In
addition, all registered schools shall publish in the school catalog or student handbook the
name, street address, telephone number, and Web site address of the office.

Sec. 12.

new text begin [136A.672] STUDENT COMPLAINTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The office has the authority to review and take appropriate
action on student complaints from schools covered under the provisions of sections 136A.61
to 136A.71.
new text end

new text begin Subd. 2. new text end

new text begin Complaint. new text end

new text begin A complaint must be in writing, be signed by a student, and state
how the school's policies and procedures or sections 136A.61 to 136A.71 were violated.
Student complaints shall be limited to complaints that occurred within six years from the
date the concern should have been discovered with reasonable effort and after the student
has utilized the school's internal complaint process. Students do not have to utilize a school's
internal complaint process before the office has authority when the student is alleging fraud
or misrepresentation. The office shall not investigate grade disputes, student conduct
proceedings, disability accommodation requests, and discrimination claims, including Title
IX complaints.
new text end

new text begin Subd. 3. new text end

new text begin Investigation. new text end

new text begin The office shall initiate an investigation upon receipt of a
complaint within the authority of subdivision 2. A school involved in an investigation shall
be informed of the alleged violations and the processes of the investigation. A school
involved in an investigation shall respond to the alleged violations and provide requested
documentation to the office. Upon completing an investigation, the office shall inform the
school and the student of the investigation outcome.
new text end

new text begin Subd. 4. new text end

new text begin Penalties. new text end

new text begin If violations are found, the office may require remedial action by
the school or assign a penalty under section 136A.705. Remedial action may include student
notification of violations, adjustments to the school's policies and procedures, and tuition
or fee refunds to impacted students.
new text end

new text begin Subd. 5. new text end

new text begin Appeals. new text end

new text begin Any order requiring remedial action by the school or assigning a
penalty under section 136A.705 is appealable in accordance with chapter 14. The request
for an appeal must be made in writing to the office within 30 days of the date the school is
notified of the action of the office. The court shall award costs and reasonable attorney fees
in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the
merits in an action brought under this section; and (2) the school has a net income from
student tuition, fees, and other required institutional charges collected from the last fiscal
year of $1,000,000 or greater.
new text end

Sec. 13.

Minnesota Statutes 2016, section 136A.68, is amended to read:


136A.68 RECORDS.

A registered school shall maintain a permanent record for each student for 50 years from
the last date of the student's attendance. A registered school offering distance instruction to
a student located in Minnesota shall maintain a permanent record for each Minnesota student
for 50 years from the last date of the student's attendance. Records include a student's
academic transcript, documents, and files containing student data about academic credits
earned, courses completed, grades awarded, degrees awarded, and periods of attendance.
To preserve permanent records, a school shall submit a plan that meets the following
requirements:

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

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

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

(4) if the school has no binding agreement approved by the office for preserving student
records, a continuous surety bond new text beginor an irrevocable letter of credit issued by a financial
institution
new text endmust be filed with the office in an amount not to exceed $20,000. The bond new text beginor
irrevocable letter of credit
new text endshall run to the state of Minnesota.new text begin 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.
new text end

Sec. 14.

Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 13. new text end

new text begin Compliance audit. new text end

new text begin "Compliance audit" means an audit of a school's compliance
with federal requirements related to its participation in federal Title IV student aid programs
or other federal grant programs performed under either Uniform Grant Guidance, including
predecessor Federal Circular A-133, or the United States Department of Education's audit
guide, Audits of Federal Student Financial Assistance Programs at Participating Institutions
and Institution Servicers.
new text end

Sec. 15.

Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 14. new text end

new text begin Entity. new text end

new text begin "Entity" means a specific school or campus location.
new text end

Sec. 16.

Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 15. new text end

new text begin Higher-level entity. new text end

new text begin "Higher-level entity" means a corporate parent or ultimate
parent company or, in the case of a public school, the larger public system of which an
entity is a part.
new text end

Sec. 17.

Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 16. new text end

new text begin Audited financial statements. new text end

new text begin "Audited financial statements" means the
financial statements of an entity or higher-level entity that have been examined by a certified
public accountant or an equivalent government agency for public entities that include (1)
an auditor's report, a statement of financial position, an income statement, a statement of
cash flows, and notes to the financial statements or (2) the required equivalents for public
entities as determined by the Financial Accounting Standards Board, the Governmental
Accounting Standards Board, or the Securities and Exchange Commission.
new text end

Sec. 18.

Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
to read:


new text begin Subd. 17. new text end

new text begin Review-level engagement. new text end

new text begin "Review-level engagement" means a service
performed by a certified public accountant that provides limited assurance that there are no
material modifications that need to be made to an entity's financial statements in order for
them to conform to generally accepted accounting principles. Review-level engagement
provides fewer assurances than those reported under audited financial statements.
new text end

Sec. 19.

Minnesota Statutes 2016, section 136A.822, subdivision 4, is amended to read:


Subd. 4.

Application.

Application for a license shall be on forms prepared and furnished
by the office, and shall include the following and other information as the office may require:

(1) the title or name of the private career school, ownership and controlling officers,
members, managing employees, and director;

(2) the specific programs which will be offered and the specific purposes of the
instruction;

(3) the place or places where the instruction will be given;

(4) a listing of the equipment available for instruction in each program;

(5) the maximum enrollment to be accommodated with equipment available in each
specified program;

(6) the qualifications of instructors and supervisors in each specified program;

(7) new text beginfinancial documents related to the entity's and higher-level entity's most recently
completed fiscal year:
new text end

new text begin (i) annual gross revenues from all sources;
new text end

new text begin (ii) financial statements subjected to a review level engagement or, if requested by the
office, audited financial statements;
new text end

new text begin (iii) a school's most recent compliance audit, if applicable; and
new text end

new text begin (iv) new text enda current balance sheet, income statement, and adequate supporting documentation,
prepared and certified by an independent public accountant or CPA;

(8) copies of all media advertising and promotional literature and brochures or electronic
display currently used or reasonably expected to be used by the private career school;

(9) copies of all Minnesota enrollment agreement forms and contract forms and all
enrollment agreement forms and contract forms used in Minnesota; and

(10) gross income earned in the preceding year from student tuition, fees, and other
required institutional chargesdeleted text begin, unless the private career school files with the office a surety
bond equal to at least $250,000 as described in subdivision 6
deleted text end.

Sec. 20.

Minnesota Statutes 2016, 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 deleted text begingrossdeleted text endnew text begin
net
new text end income from student tuition, fees, and other required institutional chargesnew text begin collectednew text end, but
in no event less than $10,000 deleted text beginnor greater than $250,000deleted text end, 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 subdivisiondeleted text begin, unless the private career school
maintains a surety bond equal to at least $250,000
deleted text end. A private career school that operates at
two or more locations may combine deleted text begingrossdeleted text endnew text begin netnew text end income from student tuition, fees, and other
required institutional charges new text begincollected new text endfor all locations for the purpose of determining the
annual surety bond requirement. The deleted text begingrossdeleted text endnew text begin netnew text end tuition and fees used to determine the amount
of the surety bond required for a private career school having a license for the sole purpose
of recruiting students in Minnesota shall be only that paid to the private career school by
the students recruited from Minnesota.

(2) A person required to obtain a private career school license due to the use of
"academy," "institute," "college," or "university" in its name and which is also licensed by
another state agency or boardnew text begin, except not including those schools licensed exclusively in
order to participate in state grants or SELF loan financial aid programs,
new text end 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) deleted text beginshalldeleted text endnew text begin maynew text end result in denial, suspension, or revocation of the
school's license.

Sec. 21.

Minnesota Statutes 2016, section 136A.822, subdivision 12, is amended to read:


Subd. 12.

Permanent records.

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

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

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

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

(4) a continuous surety bond new text beginor irrevocable letter of credit issued by a financial institution
new text end 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
new text begin or irrevocable letter of credit new text endshall run to the state of Minnesota.new text begin 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.
new text end

Sec. 22.

Minnesota Statutes 2016, section 136A.822, subdivision 13, is amended to read:


Subd. 13.

Private career schools licensed by another state agency or board.

A private
career school required to obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in its name or licensed for the purpose of participating
in state financial aid under chapter 136A, and which is also licensed by another state agency
or board shall be required to satisfy only the requirements of subdivisions 4, clauses (1),
(2), (3), (5), (7),new text begin (8),new text end and (10); 5; 6, paragraph (b), clause (2); 8, clauses (1)new text begin, (4), (7), (8),new text end
and (9); 9; 10deleted text begin, clause (13)deleted text end; and 12. new text beginIf a school is licensed to participate in state financial aid
under this chapter, the school must follow the refund policy in section 136A.827, even if
that section conflicts with the refund policy of the licensing agency or board.
new text endA distance
education private career school located in another state, or a school licensed to recruit
Minnesota residents for attendance at a school outside of this state, or a school licensed by
another state agency as its primary licensing body, may continue to use the school's name
as permitted by its home state or its primary licensing body.

Sec. 23.

Minnesota Statutes 2016, section 136A.826, subdivision 2, is amended to read:


Subd. 2.

Contract information.

A contract or enrollment agreement used by a private
career school must include at least the following:

(1) the name and address of the private career school, clearly stated;

(2) a clear and conspicuous disclosure that the agreement is a legally binding instrument
upon written acceptance of the student by the private career school unless canceled under
section 136A.827;

(3) the private career school's cancellation and refund policy that shall be clearly and
conspicuously entitled "Buyer's Right to Cancel";

(4) a clear statement of total cost of the program including tuition and all other charges;

(5) the name and description of the program, including the number of hours or credits
of classroom instruction, or distance instruction, that shall be included; and

(6) a clear and conspicuous explanation of the form and means of notice the student
should use in the event the student elects to cancel the contract or sale, the effective date of
cancellation, and the name and addressnew text begin, e-mail address, or phone numbernew text end of the seller to
which the notice should be sent or delivered.

The contract or enrollment agreement must not include a wage assignment provision or a
confession of judgment clause.

Sec. 24.

Minnesota Statutes 2016, section 136A.827, subdivision 2, is amended to read:


Subd. 2.

Private career schools using written contracts.

(a) Notwithstanding anything
to the contrary, a private career school that uses a written contract or enrollment agreement
shall refund all tuition, fees and other charges paid by a student, if the student gives deleted text beginwrittendeleted text end
notice of cancellation within five business days after the day on which the contract was
executed regardless of whether the program has started.

(b) When a student has been accepted by the private career school and has entered into
a contractual agreement with the private career school and gives deleted text beginwrittendeleted text end notice of cancellation
following the fifth business day after the date of execution of contract, but before the start
of the program in the case of resident private career schools, or before the first lesson has
been serviced by the private career school in the case of distance education private career
schools, all tuition, fees and other charges, except 15 percent of the total cost of the program
but not to exceed $50, shall be refunded to the student.

Sec. 25.

Minnesota Statutes 2016, section 136A.827, subdivision 3, is amended to read:


Subd. 3.

Notice; amount.

(a) A private career school shall refund all tuition, fees and
other charges paid by a student if the student gives deleted text beginwrittendeleted text end notice of cancellation within five
business days after the day on which the student is accepted by the private career school
regardless of whether the program has started.

(b) When a student has been accepted by the private career school and gives deleted text beginwrittendeleted text end
notice of cancellation following the fifth business day after the day of acceptance by the
private career school, but before the start of the program, in the case of resident private
career schools, or before the first lesson has been serviced by the private career school, in
the case of distance education private career schools, all tuition, fees and other charges,
except 15 percent of the total cost of the program but not to exceed $50, shall be refunded
to the student.

Sec. 26.

Minnesota Statutes 2016, section 136A.828, subdivision 3, is amended to read:


Subd. 3.

False statements.

new text begin(a) new text endA private career school, agent, or solicitor shall not make,
or cause to be made, any statement or representation, oral, written or visual, in connection
with the offering or publicizing of a program, if the private career school, agent, or solicitor
knows or reasonably should have known the statement or representation to be false,
fraudulent, deceptive, substantially inaccurate, or misleading.

new text begin (b) Other than opinion-based statements or puffery, a school shall only make claims that
are evidence-based, can be validated, and are based on current conditions and not on
conditions that are no longer relevant.
new text end

new text begin (c) A school shall not guarantee or imply the guarantee of employment.
new text end

new text begin (d) A school shall not guarantee or advertise any certain wage or imply earnings greater
than the prevailing wage for entry-level wages in the field of study for the geographic area
unless advertised wages are based on verifiable wage information from graduates.
new text end

new text begin (e) If placement statistics are used in advertising or other promotional materials, the
school must be able to substantiate the statistics with school records. These records must
be made available to the office upon request. A school is prohibited from reporting the
following in placement statistics:
new text end

new text begin (1) a student required to receive a job offer or start a job to be classified as a graduate;
new text end

new text begin (2) a graduate if the graduate held a position before enrolling in the program, unless
graduating enabled the graduate to maintain the position or the graduate received a promotion
or raise upon graduation;
new text end

new text begin (3) a graduate who works less than 20 hours per week; and
new text end

new text begin (4) a graduate who is not expected to maintain the position for at least 180 days.
new text end

new text begin (f) A school shall not use endorsements, commendations, or recommendations by a
student in favor of a school except with the consent of the student and without any offer of
financial or other material compensation. Endorsements may be used only when they portray
current conditions.
new text end

new text begin (g) A school may advertise that the school or its programs have been accredited by an
accrediting agency recognized by the United States Department of Education or the Council
for Higher Education Accreditation, but shall not advertise any other accreditation unless
approved by the office. The office may approve an institution's advertising of accreditation
that is not recognized by the United States Department of Education or the Council for
Higher Education if that accreditation is industry specific. Clear distinction must be made
when the school is in candidacy or application status versus full accreditation.
new text end

new text begin (h) A school may advertise that financial aid is available, including a listing of the
financial aid programs in which the school participates, but federal or state financial aid
shall not be used as a primary incentive in advertisement, promotion, or recruitment.
new text end

new text begin (i) A school may advertise placement or career assistance, if offered, but shall not use
the words "wanted," "help wanted," or "trainee," either in the headline or the body of the
advertisement.
new text end

new text begin (j) A school shall not be advertised under any "help wanted," "employment," or similar
classification.
new text end

new text begin (k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar
test.
new text end

new text begin (l) The commissioner, at any time, may require a retraction of a false, misleading, or
deceptive claim. To the extent reasonable, the retraction must be published in the same
manner as the original claim.
new text end

Sec. 27.

new text begin [136A.8295] STUDENT COMPLAINTS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority. new text end

new text begin The office has the authority to review and take appropriate
action on student complaints from schools covered under the provisions of sections 136A.822
to 136A.834.
new text end

new text begin Subd. 2. new text end

new text begin Complaint. new text end

new text begin A complaint must be in writing, be signed by a student, and state
how the school's policies and procedures or sections 136A.822 to 136A.834 were violated.
Student complaints shall be limited to complaints that occurred within six years from the
date the concern should have been discovered with reasonable effort and after the student
has utilized the school's internal complaint process. Students do not have to utilize a school's
internal complaint process before the office has authority when the student is alleging fraud
or misrepresentation. The office shall not investigate grade disputes, student conduct
proceedings, disability accommodation requests, and discrimination claims, including Title
IX complaints.
new text end

new text begin Subd. 3. new text end

new text begin Investigation. new text end

new text begin The office shall initiate an investigation upon receipt of a
complaint within the authority of subdivision 2. A school involved in an investigation shall
be informed of the alleged violations and the processes of the investigation. A school
involved in an investigation shall respond to the alleged violations and provide requested
documentation to the office. Upon completion of an investigation, the office shall inform
the school and the student of the investigation outcome.
new text end

new text begin Subd. 4. new text end

new text begin Penalties. new text end

new text begin If violations are found, the office may require remedial action by
the school or assign a penalty under section 136A.832. Remedial action may include student
notification of violations, adjustments to the school's policies and procedures, and tuition
or fee refunds to impacted students.
new text end

new text begin Subd. 5. new text end

new text begin Appeals. new text end

new text begin Any order requiring remedial action by the school or assigning a
penalty under section 136A.832 is appealable in accordance with chapter 14. The request
for an appeal must be made in writing to the office within 30 days of the date the school is
notified of the action of the office. The court shall award costs and reasonable attorney fees
in a contested chapter 14 hearing to the office if: (1) the office substantially prevails on the
merits in an action brought under this section; and (2) the school has a net income from
student tuition, fees, and other required institutional charges collected from the last fiscal
year of $1,000,000 or greater.
new text end

Sec. 28.

Minnesota Statutes 2016, section 136A.83, is amended to read:


136A.83 INSPECTION.

(a) The office or a delegate may inspect the instructional books and records, classrooms,
dormitories, tools, equipment and classes of any private career school or applicant for license
at any reasonable time. The office may require the submission of deleted text begina certified public audit,
or if there is no such audit available
deleted text endnew text begin audited financial statements.new text end The office or a delegate
may inspect the financial books and records of the private career school. In no event shall
such financial information be used by the office to regulate or set the tuition or fees charged
by the private career school.

(b) Data obtained from an inspection of the financial records of a private career school
or submitted to the office as part of a license application or renewal are nonpublic data as
defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed
to other members of the office, to law enforcement officials, or in connection with a legal
or administrative proceeding commenced to enforce a requirement of law.

Sec. 29.

Minnesota Statutes 2016, section 136A.833, is amended to read:


136A.833 EXEMPTIONS.

new text begin Subdivision 1. new text end

new text begin Application for exemptions. new text end

new text begin A school that seeks an exemption from the
provisions of sections 136A.822 to 136A.834 must apply to the office to establish that the
school meets the requirements of an exemption. An exemption expires two years from the
date of approval or when a school adds a new program or makes a modification equal to or
greater than 25 percent to an existing educational program. If a school is reapplying for an
exemption, the application must be submitted to the office 90 days before the current
exemption expires.
new text end

new text begin Subd. 2. new text end

new text begin Exemption reasons. new text end

Sections 136A.821 to 136A.832 shall not apply to the
following:

(1) public postsecondary institutions;

(2) postsecondary institutions registered under sections 136A.61 to 136A.71;

(3) private career schools of nursing accredited by the state Board of Nursing or an
equivalent public board of another state or foreign country;

(4) private schools complying with the requirements of section 120A.22, subdivision 4;

(5) courses taught to students in a valid apprenticeship program taught by or required
by a trade union;

(6) private career schools exclusively engaged in training physically or mentally disabled
persons for the state of Minnesota;

(7) private career schools licensed by boards authorized under Minnesota law to issue
licenses except private career schools required to obtain a private career school license due
to the use of "academy," "institute," "college," or "university" in their names;

(8) private career schools and educational programs, or training programs, contracted
for by persons, firms, corporations, government agencies, or associations, for the training
of their own employees, for which no fee is charged the employee;

(9) private career schools engaged exclusively in the teaching of purely avocational,
recreational, or remedial subjects as determined by the office except private career schools
required to obtain a private career school license due to the use of "academy," "institute,"
"college," or "university" in their names unless the private career school used "academy"
or "institute" in its name prior to August 1, 2008;

(10) classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

(11) programs in the fine arts provided by organizations exempt from taxation under
section 290.05 and registered with the attorney general under chapter 309. For the purposes
of this clause, "fine arts" means activities resulting in artistic creation or artistic performance
of works of the imagination which are engaged in for the primary purpose of creative
expression rather than commercial sale or employment. In making this determination the
office may seek the advice and recommendation of the Minnesota Board of the Arts;

(12) classes, courses, or programs intended to fulfill the continuing education
requirements for licensure or certification in a profession, that have been approved by a
legislatively or judicially established board or agency responsible for regulating the practice
of the profession, and that are offered exclusively to an individual practicing the profession;

(13) classes, courses, or programs intended to prepare students to sit for undergraduate,
graduate, postgraduate, or occupational licensing and occupational entrance examinations;

(14) classes, courses, or programs providing 16 or fewer clock hours of instruction that
are not part of the curriculum for an occupation or entry level employment except private
career schools required to obtain a private career school license due to the use of "academy,"
"institute," "college," or "university" in their names;

(15) classes, courses, or programs providing instruction in personal development,
modeling, or acting;

(16) training or instructional programs, in which one instructor teaches an individual
student, that are not part of the curriculum for an occupation or are not intended to prepare
a person for entry level employment;

(17) private career schools with no physical presence in Minnesota, as determined by
the office, engaged exclusively in offering distance instruction that are located in and
regulated by other states or jurisdictionsnew text begin if the distance education instruction does not include
internships, externships, field placements, or clinical placements for residents of Minnesota
new text end;
and

(18) private career schools providing exclusively training, instructional programs, or
courses where tuition, fees, and any other charges for a student to participate do not exceed
$100.

Sec. 30.

Minnesota Statutes 2016, section 136A.834, is amended by adding a subdivision
to read:


new text begin Subd. 5. new text end

new text begin Application. new text end

new text begin A school that seeks an exemption from the provisions of sections
136A.82 to 136A.834 must apply to the office to establish that the school meets the
requirements of an exemption. An exemption expires two years from the date of approval
or when a school adds a new program or makes a modification equal to or greater than 25
percent to an existing educational program. If a school is reapplying for an exemption, the
application must be submitted to the office 90 days before the current exemption expires.
new text end

Sec. 31.

Laws 2015, chapter 69, article 3, section 20, subdivision 10, is amended to read:


Subd. 10.

Credit load.

new text beginBy the end of the first academic year including summer term, new text enda
grantee must have accumulated deleted text beginat leastdeleted text endnew text begin the lesser ofnew text end 30 program credits deleted text beginby the end of the
first academic year including summer term
deleted text endnew text begin or the number of credits that the student's program
is scheduled for during the first academic year
new text end. A college must certify that a grantee is
carrying sufficient credits in the second grant year to complete the program at the end of
the second year, including summer school. The commissioner shall set the terms and provide
the form for certification.

new text begin EFFECTIVE DATE. new text end

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