HF 2477

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/28/2017 10:23am

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; 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.125, subdivisions 2,
4; 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 2015, chapter 69, article 3,
section 20, subdivision 10; proposing coding for new law in Minnesota Statutes,
chapters 135A; 136A; 136F; 137; 148.

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

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. HIGHER EDUCATION APPROPRIATIONS.

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.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2018		2019

Sec. 2. MINNESOTA OFFICE OF HIGHER EDUCATION

Subdivision 1. Total Appropriation

$

252,725,000

$

248,535,000

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

Subd. 2. State Grants

193,281,000

193,281,000

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

Subd. 3. Child Care Grants

6,708,000

6,709,000

Subd. 4. State Work-Study

14,502,000

14,502,000

Subd. 5. Interstate Tuition Reciprocity

11,018,000

11,018,000

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

Subd. 6. Safety Officer's Survivors

100,000

100,000

(a) 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.

(b) If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.

Subd. 7. Indian Scholarships

3,500,000

3,500,000

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 Minnesota 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.

Subd. 8. Tribal College Grants

150,000

150,000

For tribal college assistance grants under
Minnesota Statutes, section 136A.1796.

Subd. 9. Intervention for College Attendance Program Grants

671,000

671,000

(a) For the intervention for college attendance
program under Minnesota Statutes, section
136A.861.

(b) This appropriation includes funding to
administer the intervention for college
attendance program grants.

Subd. 10. Student-Parent Information

122,000

122,000

Subd. 11. Get Ready!

180,000

180,000

Subd. 12. Minnesota Education Equity Partnership

45,000

45,000

Subd. 13. Midwest Higher Education Compact

115,000

115,000

Subd. 14. United Family Medicine Residency Program

501,000

501,000

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.

Subd. 15. MnLINK Gateway and Minitex

5,905,000

5,905,000

Subd. 16. Statewide Longitudinal Education Data System

882,000

882,000

Subd. 17. Hennepin County Medical Center

645,000

645,000

For transfer to Hennepin County Medical
Center for graduate family medical education
programs at Hennepin County Medical Center.

Subd. 18. MNSCU Two-Year Public College Program

3,481,000

0

For the MNSCU two-year public college
program under Laws 2015, chapter 69, article
3, section 20.

Subd. 19. College Possible

250,000

250,000

(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.

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

(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.

(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.

Subd. 20. Addiction Medicine Graduate Fellowship Program

210,000

0

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

Subd. 21. Large Animal Veterinarian Loan Forgiveness Program

250,000

0

For the large animal veterinarian loan
forgiveness program under Minnesota Statutes,
section 136A.1795. This is a onetime
appropriation and is available until June 30,
2024.

Subd. 22. Spinal Cord Injury and Traumatic Brain Injury Research Grant Program

2,000,000

2,000,000

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

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

Subd. 23. Summer Academic Enrichment Program

200,000

200,000

(a) For summer academic enrichment grants
under Minnesota Statutes, section 136A.091.

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

Subd. 24. Dual Training Competency Grants; Office of Higher Education

2,000,000

2,000,000

(a) For training grants under Minnesota
Statutes, section 136A.246.

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

Subd. 25. Dual Training Competency Grants; Department of Labor and Industry

200,000

200,000

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

Subd. 26. Concurrent Enrollment Courses

340,000

340,000

(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.

(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.

(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:

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

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

Subd. 27. Student Loan Debt Counseling

200,000

200,000

For student loan debt counseling under
Minnesota Statutes, section 136A.1705.

Subd. 28. Campus Sexual Assault Reporting

25,000

25,000

For the sexual assault reporting required under
Minnesota Statutes, section 135A.15.

Subd. 29. Teacher Shortage Loan Forgiveness

200,000

200,000

(a) For the loan forgiveness program under
Minnesota Statutes, section 136A.1791.

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

Subd. 30. Student and Employer Connection Information System

405,000

405,000

For a grant to the Saint Paul Foundation in
accordance with Laws 2016, chapter 189,
article 1, section 2, subdivision 5. The
foundation must report by January 15 of each
year on activities under this subdivision to the
chairs and ranking minority members of the
legislative committees with jurisdiction over
higher education finance.

Subd. 31. Grants for Students with Intellectual and Developmental Disabilities

375,000

375,000

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

Subd. 32. Agricultural Educators Loan Forgiveness

250,000

0

For deposit in the agricultural education loan
forgiveness account.

Subd. 33. Loan Repayment Assistance Program

50,000

50,000

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.

Subd. 34. Minnesota Life College

1,000,000

1,000,000

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

Subd. 35. Aviation Degree Loan Forgiveness Program

50,000

50,000

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

Subd. 36. Greater Minnesota Loan Forgiveness Program

150,000

150,000

For the greater Minnesota loan forgiveness
program under Minnesota Statutes, section
136A.1788.

Subd. 37. Teacher Candidates of Color Scholarship Program

200,000

200,000

For the teacher candidates of color scholarship
program under Minnesota Statutes, section
136A.1265.

Subd. 38. Agency Administration

2,564,000

2,564,000

Subd. 39. Balances Forward

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

Subd. 40. Transfers

The Minnesota 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 and divisions with jurisdiction
over higher education finance.

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

Subdivision 1. Total Appropriation

$

715,237,000

$

724,995,000

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

Subd. 2. Central Office and Shared Services Unit

33,074,000

33,074,000

For the Office of the Chancellor and the
Shared Services Division.

Subd. 3. Operations and Maintenance

678,048,000

687,806,000

This appropriation includes $35,071,000 in
fiscal year 2018 and $44,929,000 in fiscal year
2019 for student tuition relief. The Board of
Trustees must establish tuition rates as
follows:

(1) for the 2017-2018 academic year, the
tuition rate at colleges must not exceed the
2016-2017 academic year rate; and

(2) for the 2018-2019 academic year, the
tuition rate at universities must not exceed the
2017-2018 academic year rate, and the tuition
rate at colleges must be reduced by at least
one percent compared to the 2017-2018
academic year rate.

The student tuition relief may not be offset by
increases in mandatory fees, charges, or other
assessments to the student.

This appropriation includes $500,000 in fiscal
year 2018 and $500,000 in fiscal year 2019
for a program for students with intellectual
and developmental disabilities under
Minnesota Statutes, section 136F.38.

Of this amount, $150,000 in each year is
designated for the existing programs for
students with intellectual and developmental
disabilities at Ridgewater College and Central
Lakes College.

This appropriation includes $5,000,000 in
fiscal year 2018 and $5,000,000 in fiscal year
2019 for upgrading the Integrated Statewide
Record System.

This appropriation includes $1,250,000 in
fiscal year 2018 and $1,250,000 in fiscal year
2019 for workforce development scholarships
under Minnesota Statutes, section 136F.38.

$140,000 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.

$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.

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.

$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.

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.

Five percent of the fiscal year 2019
appropriation specified in this subdivision is
available according to the schedule in clauses
(1) to (5) in fiscal year 2019 when the Board
of Trustees of the Minnesota State Colleges
and Universities demonstrates to the
commissioner of management and budget that
the board has met the following specified
number of performance goals:

(1) 100 percent if the board meets three, four,
or five goals;

(2) 67 percent if two of the goals are met;

(3) 33 percent if one of the goals are met; and

(4) zero percent if none of the goals are met.

The performance goals are:

(1) increase by at least four percent in fiscal
year 2017, compared to fiscal year 2010,
degrees, diplomas, and certificates conferred
and provide a report to the chairs and ranking
minority members of the legislative
committees with jurisdiction over higher
education on the separate changes in the
number of degrees, diplomas, and certificates
conferred;

(2) increase by at least five percent the fiscal
year 2017-related employment rate for 2016
graduates, compared to the 2013 rate for 2012
graduates;

(3) for fiscal year 2018, reallocate $22,000,000
of costs. The Board of Trustees is requested
to redirect those funds to invest in direct
mission activities, stem growth in tuition and
student fees, and to programs that benefit
students;

(4) decrease by at least ten percent the fiscal
year 2017 headcount of students enrolled in
developmental courses compared to fiscal year
2015 headcount of students enrolled in
developmental courses; and

(5) increase by at least five percent the fiscal
year 2017 degrees awarded to students who
took no more than 128 credits for a
baccalaureate degree and 68 credits for
associate in arts, associate of science, or
associate in fine arts degrees, as compared to
the rate for 2013 graduates.

By August 1, 2017, the Board of Trustees and
the Minnesota Office of Higher Education
must agree on specific numerical indicators
and definitions for each of the five goals that
will be used to demonstrate the Minnesota
State Colleges and Universities' attainment of
each goal. On or before April 1, 2018, the
Board of Trustees must report to the legislative
committees with primary jurisdiction over
higher education finance and policy the
progress of the Minnesota State Colleges and
Universities toward attaining the goals. The
appropriation base for the next biennium shall
include appropriations not made available
under this subdivision for failure to meet
performance goals. All of the appropriation
that is not available due to failure to meet
performance goals is appropriated to the
commissioner of the Office of Higher
Education for fiscal year 2019 for the purpose
of the state grant program under Minnesota
Statutes, section 136A.121.

Performance metrics are intended to facilitate
progress toward the attainment goal under
Minnesota Statutes, section 135A.012.

Subd. 4. Learning Network of Minnesota

4,115,000

4,115,000

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

Subdivision 1. Total Appropriation

$

638,556,000

$

640,556,000

Appropriations by Fund
General	636,399,000	638,399,000
Health Care Access	2,157,000	2,157,000

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

Subd. 2. Operations and Maintenance

567,961,000

569,961,000

This appropriation includes funding for
operation and maintenance of the system. Of
the amount appropriated in this subdivision:

$6,800,000 in fiscal year 2018 and $8,800,000
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.

$1,000,000 in fiscal year 2018 and $1,000,000
in fiscal year 2019 are for the Minnesota
Discovery, Research, and Innovation Economy
program. This appropriation is to advance
research strengths to fight cancer, strengthen
communities, improve water quality, and
advance data.

$300,000 in fiscal year 2018 and $300,000 in
fiscal year 2019 are for a program for students
with intellectual and developmental disabilities
under Minnesota Statutes, section 137.45.

$750,000 in fiscal year 2018 and $750,000 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.

Five percent of the fiscal year 2019
appropriation specified in this subdivision is
available according to the schedule in clauses
(1) to (5) in fiscal year 2019 when the Board
of Regents of the University of Minnesota
demonstrates to the commissioner of
management and budget that the board has
met the following specified number of
performance goals:

(1) 100 percent if the board meets three, four,
or five goals;

(2) 67 percent if two of the goals are met;

(3) 33 percent if one of the goals are met; and

(4) zero percent if none of the goals are met.

The performance goals are:

(1) increase by at least one percent the
four-year, five-year, or six-year undergraduate
graduation rates, averaged over three years,
for students of color systemwide at the
University of Minnesota reported in fall 2018
over fall 2016. The average rate for fall 2016
is calculated with the graduation rates reported
in fall 2014, 2015, and 2016;

(2) increase by at least two percent the total
number of undergraduate STEM degrees,
averaged over three years, conferred
systemwide by the University of Minnesota
reported in fiscal year 2018 over fiscal year
2016. The averaged number for fiscal year
2016 is calculated with the fiscal year 2014,
2015, and 2016 numbers;

(3) increase by at least one percent the
four-year undergraduate graduation rate at the
University of Minnesota reported in fall 2018
over fall 2016. The average rate for fall 2016
is calculated with the graduation rates reported
in fall 2014, 2015, and 2016. The averaged
number for fiscal year 2016 is calculated with
the fiscal year 2014, 2015, and 2016 numbers;

(4) for fiscal year 2018, reallocate $15,000,000
of administrative costs. The Board of Regents
is requested to redirect those funds to invest
in direct mission activities, stem growth in
cost of attendance, and to programs that
benefit students; and

(5) increase licensing disclosures by three
percent for fiscal year 2018 over fiscal year
2017.

By August 1, 2017, the Board of Regents and
the Office of Higher Education must agree on
specific numerical indicators and definitions
for each of the five goals that will be used to
demonstrate the University of Minnesota's
attainment of each goal. On or before April 1,
2018, the Board of Regents must report to the
legislative committees with primary
jurisdiction over higher education finance and
policy the progress of the University of
Minnesota toward attaining the goals. The
appropriation base for the next biennium shall
include appropriations not made available
under this subdivision for failure to meet
performance goals. All of the appropriation
that is not available due to failure to meet
performance goals is appropriated to the
commissioner of the Office of Higher
Education for fiscal year 2019 for the purpose
of the state grant program under Minnesota
Statutes, section 136A.121.

Performance metrics are intended to facilitate
progress toward the attainment goal under
Minnesota Statutes, section 135A.012.

Subd. 3. Primary Care Education Initiatives

2,157,000

2,157,000

This appropriation is from the health care
access fund.

Subd. 4. Special Appropriations

(a) Agriculture and Extension Service

42,922,000

42,922,000

For the Agricultural Experiment Station and
the Minnesota Extension Service:

(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;

(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:

(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);

(ii) alternative bioenergy crops and cropping
systems; and

(iii) biofuel coproducts used for livestock feed;

(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;

(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:

(i) vegetable crop research with priority for
extending the Minnesota vegetable growing
season;

(ii) fertilizer and soil fertility research and
development;

(iii) soil, groundwater, and surface water
conservation practices and contaminant
reduction research;

(iv) discovering and developing plant varieties
that use nutrients more efficiently;

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

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

(vii) utilizing plant and livestock cells to treat
and cure human diseases;

(viii) the development of dairy coproducts;

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

(x) crop pest and animal disease research;

(xi) developing animal agriculture that is
capable of sustainably feeding the world;

(xii) consumer food safety education and
outreach;

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

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

(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.

(b) Health Sciences

9,204,000

9,204,000

$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.

(c) Institute of Technology

1,140,000

1,140,000

For the geological survey and the talented
youth mathematics program.

(d) System Special

7,181,000

7,181,000

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.

Of this amount, $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.

(e) University of Minnesota and Mayo Foundation Partnership

7,991,000

7,991,000

This appropriation is for the following
activities:

(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
committee responsible for higher education
finance by June 30 of each fiscal year.

(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.

Subd. 5. Academic Health Center

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

Sec. 5. MAYO CLINIC

Subdivision 1. Total Appropriation

$

1,351,000

$

1,351,000

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

Subd. 2. Medical School

665,000

665,000

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.

Subd. 3. Family Practice and Graduate Residency Program

686,000

686,000

The state must pay stipend support for up to
27 residents each year.

ARTICLE 2

PUBLIC POSTSECONDARY EDUCATION

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. The 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. When 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 equipment;

(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; and

(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 system.; and

(10) data on work completed by any 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 cost incurred, a description of the work completed, and a description
of the reasons for using an outside consultant and not internal staff.

(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.

[135A.0432] AUTOMATIC ADMISSION.

Subdivision 1.

Automatic admission.

Each Minnesota public postsecondary institution
must admit an applicant to the institution as an undergraduate student in a baccalaureate
program if:

(1) the applicant graduated with a grade point average in the top ten percent of the
applicant's high school graduating class;

(2) the applicant graduated from high school in one of the two years preceding the
academic year for which the applicant is applying for admission;

(3) the applicant graduated from a public or private Minnesota high school; and

(4) the applicant was a resident of Minnesota for at least the past two years of the
applicant's period of attendance at the Minnesota high school.

Subd. 2.

Applicant qualification.

To qualify for admission under subdivision 1 of this
section, the applicant must:

(1) submit an application before the expiration of the application filing deadline
established by the institution; and

(2) provide a high school transcript or diploma that satisfies the requirements of
subdivision 1 of this section.

Subd. 3.

Other admissions.

A graduating student who does not qualify for automatic
admission under subdivision 1 of this section may apply to any Minnesota public
postsecondary institution. The institution, after admitting students under subdivision 1, may
admit other applications for admission pursuant to the institution's standard admission
policies.

Subd. 4.

Scholarship dollars.

The average amount of scholarship dollars per student
received by out-of-state students may not exceed the average amount of scholarship dollars
per student received by students admitted under this section.

Subd. 5.

University of Minnesota.

The Board of Regents of the University of Minnesota
is requested to adopt a policy implementing this section.

Subd. 6.

Reporting requirement.

By January 15 of each year, both the Board of Trustees
of the Minnesota State College and Universities and the Board of Regents of the University
of Minnesota must submit a report on automatic admissions 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 describe, in summary
form, the students admitted under subdivision 1 of this section including, but not limited
to, information regarding:

(1) admission and matriculation;

(2) retention;

(3) academic performance;

(4) program outcomes; and

(5) demographic information including race, ethnicity, economic status, and geographic
distribution.

EFFECTIVE DATE.

This section is effective beginning in the 2018-2019 academic
year.

Sec. 4.

[135A.0434] MANDATORY STUDENT ACTIVITY FEES PROHIBITED.

Subdivision 1.

Mandatory fee prohibition.

(a) The governing board of a public
postsecondary institution must not impose on students any mandatory fee funding
noninstructional student programs, activities, groups, or services.

(b) This section does not prohibit mandatory fees paid by students that are directly related
to academic, administrative, or health services.

(c) The Board of Regents of the University of Minnesota is requested to adopt a policy
implementing this section.

Subd. 2.

Penalty.

If the Board of Regents of the University of Minnesota imposes a
mandatory fee in violation of this section, the commissioner of management and budget
must deduct an amount equal to the net revenue generated by that fee from the university's
appropriation base in the first year of the next biennium.

Sec. 5.

[135A.158] INFORMATION PROVIDED TO STUDENT PARENTS AND
PREGNANT STUDENTS.

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.

Sec. 6.

[136F.38] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES.

Subdivision 1.

Program required.

The Board of Trustees of the Minnesota State Colleges
and Universities must offer an academic program for students with intellectual and
developmental disabilities, consistent with subdivisions 2 to 4.

Subd. 2.

Program locations.

The program must be offered at no fewer than two college
or university campuses. The board must choose the campuses based on:

(1) the ability to offer a robust program using existing facilities and resources; and

(2) a goal to provide the program in diverse geographic regions of the state.

Subd. 3.

Enrollment and admission.

A campus offering a program must establish an
enrollment goal of at least 15 incoming students per academic year. The board must 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.

Subd. 4.

Curriculum and activities.

(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:

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

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

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

(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:

(1) the establishment of on-campus mentoring and peer support communities; and

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

(c) A participating campus may tailor its program curriculum and activities to highlight
academic programs, student and community life experiences, and employment opportunities
unique to that campus or the region of the state where the campus is located.

Subd. 5.

Reporting.

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:

(1) the number of students participating in the program;

(2) program goals and outcomes; and

(3) the success rate of participants.

EFFECTIVE DATE.

This section is effective for the 2018-2019 academic year and
later.

Sec. 7.

[136F.38] WORKFORCE DEVELOPMENT SCHOLARSHIPS.

Subdivision 1.

Program established.

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

Subd. 2.

Scholarship awards.

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

Subd. 3.

Program eligibility.

(a) Scholarships shall be awarded only to a student eligible
for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
care services; or (4) information technology.

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

Subd. 4.

Renewal; cap.

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

Subd. 5.

Administration.

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

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

Subd. 6.

Report required.

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

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

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

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

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

(5) a list of occupations scholarship recipients are entering; and

(6) the number of students who were denied a scholarship.

Sec. 8.

[137.45] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES.

The Board of Regents of the University of Minnesota is requested to offer an academic
program for students with intellectual and developmental disabilities, consistent with the
requirements of section 136F.38, subdivisions 2 to 5.

EFFECTIVE DATE.

This section is effective for the 2018-2019 academic year and
later.

Sec. 9.

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 psychology subject to the exemptions in
section 148.9075;

(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. 10.

[148.9075] LICENSURE EXEMPTIONS.

Subdivision 1.

Teaching and research.

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:

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

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

Subd. 2.

Students.

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

ARTICLE 3

OFFICE OF HIGHER EDUCATION

Section 1.

[136A.055] DEVELOPMENTAL EDUCATION REPORTING.

(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:

(1) the number of students placed in supplemental or developmental education;

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

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

(4) time to complete a degree or certificate at a postsecondary institution.

(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.

(c) The commissioner must post the initial data on the department's Web site on or before
October 1, 2017, and must update the data at least annually thereafter.

Sec. 2.

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 94 85 percent
of the parental contribution. For independent students with dependents other than a spouse,
the assigned family responsibility is 86 77 percent of the student contribution. For
independent students without dependents other than a spouse, the assigned family
responsibility is 50 41 percent of the student contribution.

Sec. 3.

[136A.1215] GRANTS FOR STUDENTS WITH INTELLECTUAL AND
DEVELOPMENTAL DISABILITIES.

Subdivision 1.

Establishment.

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

Subd. 2.

Eligible students.

A postsecondary student is eligible for a grant under this
section if the student:

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

(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

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

Subd. 3.

Application.

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

Subd. 4.

Grant amounts.

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

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

(2) any institutional aid the student receives.

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

Subd. 5.

Reporting.

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:

(1) the number of students receiving an award;

(2) the average and total award amounts; and

(3) summary demographic data on award recipients.

Sec. 4.

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
eight ten semesters or the equivalent, or has earned a baccalaureate degree and has been
enrolled full time less than eight ten 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. 5.

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 $2,800 $3,000 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. 6.

[136A.1265] TEACHER CANDIDATES OF COLOR SCHOLARSHIPS.

Subdivision 1.

Definitions.

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

(b) "Full-time study" means:

(1) for an undergraduate student, enrollment in at least 15 credits or the equivalent; and

(2) for a graduate student, enrollment in a number of credits that the student's institution
deems to be full time.

(c) "Part-time study" means enrollment in fewer credits than are required to qualify as
full time under paragraph (b).

(d) "Underrepresented racial or ethnic group" means a racial or ethnic group for which
the commissioner of education has determined that the percentage of Minnesota teachers
of the group, as measured under section 127A.05, subdivision 6, is lower than the percentage
of Minnesota students of the group as measured under section 120B.35, subdivision 3.

Subd. 2.

Establishment.

A scholarship program for teacher candidates of color is
established to provide scholarships to qualified candidates with financial needs.

Subd. 3.

Eligibility.

A person may apply for a scholarship if the person:

(1) has been admitted to a teacher preparation program approved by the Board of Teaching
at an eligible institution located in Minnesota;

(2) self-identifies to the teacher preparation program as a member of an underrepresented
racial or ethnic group;

(3) is making satisfactory academic progress;

(4) is a resident student; and

(5) has a family adjusted gross income of $125,000 or less.

Subd. 4.

Amount.

(a) The commissioner must establish scholarship amounts based upon
the financial need of eligible students. The commissioner must set scholarship amounts at
a level estimated to fully expend appropriations available for the program. Established
amounts are not rulemaking for purposes of chapter 14 or section 14.386.

(b) A scholarship under this section must not exceed:

(1) $10,000 per year; or

(2) a student's cost of attendance minus the student's expected family contribution, as
determined by the federal need analysis.

(c) The minimum scholarship under this section is $1,000 per year.

(d) The amounts determined under paragraphs (a), (b), and (c) are for full-time study.
The amounts must be reduced and prorated per credit for part-time study.

(e) The maximum total amount of scholarships from this scholarship per candidate is
$25,000.

Subd. 5.

Application.

To apply for a scholarship, an eligible institution must submit an
application to the commissioner on behalf of an eligible student. The application must be
made in a form and manner specified by the commissioner, and must include a candidate's
name, self-identified racial and ethnic identity, gender, licensure area sought, and full-time
or part-time status.

Subd. 6.

Distribution.

The commissioner must distribute scholarship funds to eligible
institutions on behalf of scholarship recipients. Institutions must distribute funds directly
to students.

Sec. 7.

[136A.1705] STUDENT LOAN DEBT COUNSELING.

Subdivision 1.

Grant.

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

The purpose of the counseling is to assist borrowers to:

(1) understand their loan and repayment options;

(2) manage loan repayment; and

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

Subd. 2.

Qualified debt counseling organization.

A qualified debt counseling
organization is an organization that:

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

(2) employs certified financial loan counselors; and

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

Subd. 3.

Grant application and award.

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

(1) the characteristics of borrowers to be served;

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

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

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

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

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

Subd. 4.

Program evaluation.

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

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

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

Subd. 5.

Report to legislature.

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

Sec. 8.

[136A.1788] GREATER MINNESOTA LOAN FORGIVENESS PROGRAM.

Subdivision 1.

Definitions.

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

(b) "Greater Minnesota" means the geographic areas in Minnesota located outside of
the metropolitan area as defined in section 473.121, subdivision 2.

(c) "Debt-to-income ratio" means an applicant's monthly student loan payment obligation
under a ten-year standard repayment plan, divided by the applicant's monthly gross income.

(d) "Qualifying educational institution" means an institution of higher education that
had in effect at the time of an applicant's attendance a program participation agreement
under United States Code, title 20, chapter 28, subchapter IV, part F, section 1094.

(e) "Qualifying position" means a position as an employee, as defined in section 181.723,
subdivision 3, for which the primary work site is located in greater Minnesota.

(f) "Qualifying student loan" means a government, commercial, or foundation loan for
actual costs paid for tuition and reasonable educational and living expenses related to
attending a qualifying educational institution.

(g) "Working full time" means working an average of at least 30 hours per week.

Subd. 2.

Program established.

(a) The commissioner must establish a greater Minnesota
loan forgiveness program for individuals who work in a qualifying position.

(b) Appropriations to the program do not cancel and are available until expended.

Subd. 3.

Eligibility.

(a) To be eligible to receive loan forgiveness under this section, an
applicant must:

(1) be a Minnesota resident;

(2) have a qualifying student loan balance;

(3) have earned a degree, diploma, or certificate from a qualifying educational institution;

(4) have worked full time for a 12-month period in one or more qualifying positions;
and

(5) have a debt-to-income ratio of at least 0.10.

(b) An eligible applicant may receive one loan forgiveness award of the amount specified
in this section for each 12-month period that the applicant works for a qualifying employer.
An individual may receive a loan forgiveness award under this section no more than five
times.

Subd. 4.

Application.

(a) To be considered for a loan forgiveness award, an applicant
must apply in a form and manner specified by the commissioner.

(b) An applicant must reapply to the commissioner each year that the applicant wishes
to receive an award. The application must include proof that the participant has worked full
time for a 12-month period for one or more qualifying employers.

Subd. 5.

Prioritization of applicants.

If appropriations for the program under this
section are insufficient to provide a loan forgiveness award to each eligible applicant, the
commissioner must preferentially award loan forgiveness to applicants:

(1) with a qualifying student loan balance of at least $5,000; and

(2) working in occupations that do not qualify for other state or federal loan forgiveness
programs that are limited to particular occupations.

Subd. 6.

Amount of forgiveness.

(a) The commissioner must provide a loan forgiveness
award to an eligible applicant on a funds available basis, as provided in this section.

(b) For each year of qualifying full-time work a participant completes, the participant
is eligible for a loan forgiveness award equal to the lesser of:

(1) $3,000;

(2) ten percent of the remaining balance of a participant's qualifying student loans the
first year a participant received an award under this section; or

(3) the remaining balance of a participant's qualifying student loans.

Subd. 7.

Disbursement.

The commissioner must disburse an award under this section
directly to the participant's student loan servicer or servicers.

Subd. 8.

Fund established.

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

Subd. 9.

Reporting.

By February 1 of each year, the commissioner must annually report
to the legislative committees with jurisdiction over higher education and economic
development on the results of the program in the previous year. At a minimum, the report
must include data on:

(1) the number of applicants;

(2) the highest degree obtained by applicants;

(3) the industries in which applicants worked;

(4) the counties in which applicants worked and resided;

(5) the average student loan balance of applicants;

(6) the mean and median loan forgiveness award;

(7) the total amount of debt forgiven under the program;

(8) the mean and median income of applicants;

(9) the mean debt-to-income ratio of applicants; and

(10) the number of greater Minnesota loan forgiveness awards that award recipients
received previously.

Sec. 9.

[136A.1789] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.

Subdivision 1.

Definitions.

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

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

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

(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.

Subd. 2.

Creation of account.

(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.

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

Subd. 3.

Eligibility.

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

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

(2) have qualified education loans;

(3) reside in Minnesota; and

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

(b) An applicant selected to participate must sign a contract to agree to serve a 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.

Subd. 4.

Service obligation.

(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).

(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.

Subd. 5.

Loan forgiveness.

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

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

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

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

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

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

(e) If the participant receives a disbursement in the participant's fifth year of eligibility,
the participant must provide the commissioner with verification that the full amount of the
participant's final loan repayment disbursement was applied toward the designated qualified
education loan. If a participant does not provide the verification as required under this
paragraph within 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.

Subd. 6.

Rules.

The commissioner may adopt rules to implement this section.

Sec. 10.

[136A.1794] AGRICULTURAL EDUCATION LOAN FORGIVENESS
PROGRAM.

Subdivision 1.

Definitions.

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

(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.

(c) "Qualified teacher" means a teacher licensed under chapter 122A who:

(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

(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.

(d) "School" means the following:

(1) a school or program operated by a school district or a group of school districts;

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

(3) a charter school; or

(4) a private school.

Subd. 2.

Account; appropriation.

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.

Subd. 3.

Eligibility.

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

(1) be a qualified teacher;

(2) have qualified education loans; and

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

(b) An applicant selected to participate must sign a contract to agree to serve a 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.

Subd. 4.

Service obligation.

(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).

(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.

Subd. 5.

Loan forgiveness.

(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.

(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.

(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.

Sec. 11.

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

Subd. 5.

Regionally accredited nonprofit institutions in Minnesota.

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

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

(2) nondegree programs within approved degrees;

(3) underlying curriculum or courses;

(4) modes of delivery;

(5) locations; and

(6) fees related to clauses (1) to (5).

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

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

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

Sec. 12.

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

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

The office shall not provide may revoke, or deny an application for, 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. If the adjudication was
related to a particular academic program, the office may revoke degree approval, or deny
an application for degree approval, for that program only.

The 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. 13.

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

Subdivision 1.

Membership.

The commissioner shall appoint a 12-member 14-member
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 or a traumatic brain injury;

(10) one member who is a veteran who has a traumatic brain injury;

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

(11) (12) one member who is a physician specializing in the treatment of spinal cord
injury representing Gillette Children's Specialty Healthcare; and

(12) (13) one member who is a physician specializing in the treatment of traumatic brain
injury; and

(14) one member representing Gillette Children's Specialty Healthcare.

Sec. 14. STATE GRANT REPORT.

(a) The commissioner of higher education must report to the legislature the estimated
amount of funding necessary for the state grant program to fully meet the financial aid needs
of lower- and middle-income Minnesota college students based on the program's shared
responsibility design. The report must include an estimate of:

(1) the amount a student should be expected to contribute toward the cost of education
through borrowing and employment;

(2) the amount a student's family should be expected to contribute toward the cost of
education, based on the family's financial circumstances;

(3) the actual living and miscellaneous expenses of a student, including room, board,
transportation, and the cost of textbooks; and

(4) equitable tuition maximums for public and nonprofit institutions that reflect both
tuition charged and the subsidy provided to all students at public institutions received through
direct appropriations.

(b) The commissioner must submit the report to the higher education committees of the
legislature by October 15, 2017.

ARTICLE 4

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 forcible sex offenses rape, sex offenses - fondling, or sex offenses - statutory rape
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
programs, or that offers only degrees or programs that do not meet the required minimum
program length to participate in the federal Pell Grant program, 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.

(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.

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 an affidavit a confirmation 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:

Subd. 8.

Entity.

"Entity" means a specific school or campus location.

Sec. 5.

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

136A.646 ADDITIONAL SECURITY.

(a) In the event New schools that have been granted conditional approval for degrees or
names to allow them the opportunity to apply for and receive accreditation under section
136A.65, subdivision 7, or any registered institution that is notified by the United States
Department of Education that it has fallen below minimum financial standards and that its
continued participation in Title IV will be conditioned upon its satisfying either the Zone
Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter
of Credit Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c),
the institution shall provide a surety bond conditioned upon the faithful performance of all
contracts and agreements with students 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; or

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

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

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

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

(2) private student loans; and

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

Sec. 6.

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

Subd. 1a.

Accreditation; requirement.

(a) A school must not be registered or authorized
to offer any degree at any level unless the school is accredited 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 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, including excluding any
exit interviews. The institution must provide the office with a copy of the final report upon
receipt request of the office.

(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.

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 budgeting and accounting
principles according to the type of school;

(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.

(a) The office may grant a school a one-year conditional
approval for a degree or use of a term in its name for a period of less than one year if doing
so would be in the best interests of currently enrolled students or prospective students.
Conditional approval of a degree or use of a term under this paragraph must not exceed a
period of three years.

(b) The office may grant new schools may be granted and programs a one-year conditional
approval for degrees or names annually for a period not to exceed five years use of a term
in its name to allow them the school the opportunity to apply for and receive accreditation
as required in subdivision 1a. Conditional approval of a school or program under this
paragraph must not exceed a period of five years. A new school or program granted
conditional approval may be allowed to continue as a registered institution in order to
complete an accreditation process upon terms and conditions the office determines.

(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.

(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.

Sec. 9.

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

136A.653 EXEMPTIONS.

Subdivision 1.

Application.

A school that seeks an exemption 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.

Subdivision 1. Subd. 1a.

Exemption Private career schools.

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 it 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 tuition, fees, and any other
charges for a student to participate 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:

Subd. 5.

Application.

A school that seeks an exemption 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.

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 office Minnesota Office of Higher
Education 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.

[136A.672] STUDENT COMPLAINTS.

Subdivision 1.

Authority.

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.

Subd. 2.

Complaint.

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.

Subd. 3.

Investigation.

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.

Subd. 4.

Penalties.

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.

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 or an irrevocable letter of credit issued by a financial
institution must be filed with the office in an amount not to exceed $20,000. The bond or
irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure,
the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover,
maintain, digitize, and destroy academic records.

Sec. 14.

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

Subd. 13.

Compliance audit.

"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.

Sec. 15.

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

Subd. 14.

Entity.

"Entity" means a specific school or campus location.

Sec. 16.

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

Subd. 15.

Higher-level entity.

"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.

Sec. 17.

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

Subd. 16.

Audited financial statements.

"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.

Sec. 18.

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

Subd. 17.

Review-level engagement.

"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.

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) financial documents related to the entity's and higher-level entity's most recently
completed fiscal year:

(i) annual gross revenues from all sources;

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

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

(iv) a 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 charges, unless the private career school files with the office a surety
bond equal to at least $250,000 as described in subdivision 6.

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 gross
net income from student tuition, fees, and other required institutional charges collected, but
in no event less than $10,000 nor greater than $250,000, except that a private career school
may deposit a greater amount at its own discretion. A private career school in each annual
application for licensure must compute the amount of the surety bond and verify that the
amount of the surety bond complies with this subdivision, unless the private career school
maintains a surety bond equal to at least $250,000. A private career school that operates at
two or more locations may combine gross net income from student tuition, fees, and other
required institutional charges collected for all locations for the purpose of determining the
annual surety bond requirement. The gross net tuition and fees used to determine the amount
of the surety bond required for a private career school having a license for the sole purpose
of recruiting students in Minnesota shall be only that paid to the private career school by
the students recruited from Minnesota.

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

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

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

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

Sec. 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), (8), and (10); 5; 6, paragraph (b), clause (2); 8, clauses (1), (4), (7), (8),
and (9); 9; 10, clause (13); and 12. If 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. A 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 address, e-mail address, or phone number 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 written
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 written 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 written 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 written
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.

(a) A 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.

(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.

(c) A school shall not guarantee or imply the guarantee of employment.

(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.

(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:

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

(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;

(3) a graduate who works less than 20 hours per week; and

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

(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.

(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.

(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.

(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.

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

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

(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.

Sec. 27.

[136A.8295] STUDENT COMPLAINTS.

Subdivision 1.

Authority.

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.

Subd. 2.

Complaint.

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.

Subd. 3.

Investigation.

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.

Subd. 4.

Penalties.

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.

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 a certified public audit,
or if there is no such audit available audited financial statements. 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.

Subdivision 1.

Application for exemptions.

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.

Subd. 2.

Exemption reasons.

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 jurisdictions if the distance education instruction does not include
internships, externships, field placements, or clinical placements for residents of Minnesota;
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:

Subd. 5.

Application.

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.

Sec. 31.

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

Subd. 10.

Credit load.

By the end of the first academic year including summer term, a
grantee must have accumulated at least the lesser of 30 program credits by the end of the
first academic year including summer term or the number of credits that the student's program
is scheduled for during the first academic year. 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.

EFFECTIVE DATE.

This section is effective the day following final enactment.