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Minnesota Legislature

Office of the Revisor of Statutes

HF 3638

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 04/19/2018 03:56pm

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

Bill Text Versions

Engrossments
Introduction Posted on 03/12/2018
1st Engrossment Posted on 04/19/2018

Current Version - 1st Engrossment

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A bill for an act
relating to higher education; providing for the financing of higher education
programs; modifying certain higher education policy provisions; making clarifying
changes to loan forgiveness and research grant programs; modifying the regent
candidate selection process; requiring reports; appropriating money; amending
Minnesota Statutes 2016, sections 127A.70, subdivision 2; 135A.15, subdivisions
2, 6; 136A.15, subdivision 8; 136A.16, subdivisions 1, 2, 5, 8, 9; 136A.162;
136A.1701, subdivision 7; 136A.1702; 136A.1791, subdivision 8; 136A.1795,
subdivision 2; 136A.822, subdivision 10; 136A.901, by adding a subdivision;
137.0245; 137.0246; Minnesota Statutes 2017 Supplement, sections 136A.1275,
subdivisions 2, 3; 136A.1789, subdivision 2; 136A.646; 136A.822, subdivision
6; 136A.8295, by adding a subdivision; Laws 2017, chapter 89, article 1, section
2, subdivisions 18, 20, 29, 31, 32, 33, 34; proposing coding for new law in
Minnesota Statutes, chapter 136A; repealing Minnesota Statutes 2016, sections
136A.15, subdivisions 2, 7; 136A.1701, subdivision 12.

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

ARTICLE 1

APPROPRIATIONS

Section 1. new text beginHIGHER EDUCATION APPROPRIATIONS.
new text end

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

new text begin APPROPRIATIONS
new text end
new text begin Available for the Year
new text end
new text begin Ending June 30
new text end
new text begin 2018
new text end
new text begin 2019
new text end

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 500,000
new text end

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

new text begin Subd. 2. new text end

new text begin State Grants
new text end

new text begin -0-
new text end
new text begin 350,000
new text end

new text begin This is a onetime appropriation.
new text end

new text begin Subd. 3. new text end

new text begin Agricultural Educators Loan
Forgiveness
new text end

new text begin -0-
new text end
new text begin 100,000
new text end

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

new text begin Subd. 3. new text end

new text begin Student Loan Debt Counseling
new text end

new text begin -0-
new text end
new text begin 50,000
new text end

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

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

new text begin Subdivision 1. new text end

new text begin Total Appropriation
new text end

new text begin $
new text end
new text begin -0-
new text end
new text begin $
new text end
new text begin 5,500,000
new text end

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

new text begin Subd. 2. new text end

new text begin Operations and Maintenance
new text end

new text begin -0-
new text end
new text begin 5,500,000
new text end

new text begin (a) This appropriation includes $5,000,000 in
fiscal year 2019 for cyber security programs
at Metropolitan State University. This is a
onetime appropriation.
new text end

new text begin (b) This appropriation includes $500,000 in
fiscal year 2019 for renewal of workforce
development scholarships first awarded in
academic year 2018-2019 under Minnesota
Statutes, section 136F.38. This is a onetime
appropriation and is available until June 30,
2020.
new text end

ARTICLE 2

HIGHER EDUCATION POLICY

Section 1.

Minnesota Statutes 2016, section 135A.15, subdivision 2, is amended to read:


Subd. 2.

Victims' rights.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sec. 2.

Minnesota Statutes 2016, section 135A.15, subdivision 6, is amended to read:


Subd. 6.

Data collection and reporting.

(a) Postsecondary institutions must annually
report statistics on sexual assault. This report must be prepared in addition to any federally
required reporting on campus security, including reports required by the Jeanne Clery
Disclosure of Campus Security Policy and Campus Crime Statistics Act, United States
Code, title 20, section 1092(f). The report must include, but not be limited to, the number
of incidents of sexual assault reported to the institution in the previous calendar year, as
follows:

(1) the number that were investigated by the institution;

(2) the number that were referred for a disciplinary proceeding at the institution;

(3) the number the victim chose to report to local or state law enforcement;

(4) the number for which a campus disciplinary proceeding is pending, but has not
reached a final resolution;

(5) the number in which the alleged perpetrator was found responsible by the disciplinary
proceeding at the institution;

(6) the number that resulted in any action by the institution greater than a warning issued
to the accused;

(7) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution;

(8) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution because the accused withdrew from the institution;

(9) the number that resulted in a disciplinary proceeding at the institution that closed
without resolution because the victim chose not to participate in the procedure; and

(10) the number of reports made through the online reporting system established in
subdivision 5, excluding reports submitted anonymously.

(b) If an institution previously submitted a report indicating that one or more disciplinary
proceedings was pending, but had not reached a final resolution, and one or more of those
disciplinary proceedings reached a final resolution within the previous calendar year, that
institution must submit updated totals from the previous year that reflect the outcome of
the pending case or cases.

(c) The reports required by this subdivision must be submitted to the Office of Higher
Education by October 1 of each year. Each report must contain the data required under
paragraphs (a) and (b) from the previous calendar year.

(d) The commissioner of the Office of Higher Education shall calculate statewide numbers
for each data item reported by an institution under this subdivision. The statewide numbers
must include data from postsecondary institutions that the commissioner could not publish
due to federal laws governing access to student records.

(e) The Office of Higher Education shall publish on its Web site:

(1) the statewide data calculated under paragraph (d); and

(2) the data items required under paragraphs (a) and (b) for each postsecondary institution
in the state.

Each postsecondary institution shall publish on the institution's Web site the data items
required under paragraphs (a) and (b) for that institution.

(f) Reports and data required under this subdivision must be prepared and published as
summary data, as defined in section 13.02, subdivision 19, and must be consistent with
applicable law governing access to educational data. If an institution or the Office of Higher
Education does not publish data because of applicable law, the publication must explain
why data are not included.

new text begin (g) By October 1 of each year, the Board of Regents of the University of Minnesota
must submit a report to the chairs and ranking minority members of the legislative committees
with jurisdiction over higher education policy and finance. In addition to the data on sexual
assault incidents described in paragraph (a), the report must include equivalent data on
incidents of sexual harassment, as defined in the board's policy on sexual harassment. The
report is subject to the requirements of paragraph (f).
new text end

Sec. 3.

new text begin [136A.1705] STUDENT LOAN DEBT COUNSELING.
new text end

new text begin Subdivision 1. new text end

new text begin Grant. new text end

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

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

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

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

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

new text begin Subd. 2. new text end

new text begin Qualified debt counseling organization. new text end

new text begin A qualified debt counseling
organization is an organization that:
new text end

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

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

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

new text begin Subd. 3. new text end

new text begin Grant application and award. new text end

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

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

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Program evaluation. new text end

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

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

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

new text begin Subd. 5. new text end

new text begin Report to legislature. new text end

new text begin 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.
new text end

Sec. 4.

Minnesota Statutes 2016, section 136A.901, is amended by adding a subdivision
to read:


new text begin Subd. 3. new text end

new text begin Account. new text end

new text begin A spinal cord injury and traumatic brain injury research grant account
is created in the special revenue fund in the state treasury. The commissioner shall deposit
into the account appropriations made for the purposes of this section. Money in the account
is appropriated to the commissioner for the purposes for which it was appropriated.
new text end

Sec. 5.

Minnesota Statutes 2016, section 137.0245, is amended to read:


137.0245 deleted text beginREGENT CANDIDATE ADVISORY COUNCILdeleted text endnew text begin LEGISLATIVE
COMMISSION ON REGENT SELECTION
new text end.

Subdivision 1.

Establishment.

A deleted text beginRegent Candidate Advisory Councildeleted text endnew text begin Legislative
Commission on Regent Selection
new text end is established to assist in determining criteria for, and
identifying and recruiting qualified candidates for membership on the Board of Regents
and making recommendations to the joint legislative committee described in section
137.0246, subdivision 2.

Subd. 2.

Membership.

new text begin(a) new text endThe deleted text beginRegent Candidate Advisory Council shall consistdeleted text endnew text begin
Legislative Commission on Regent Selection consists
new text end ofnew text begin:new text end deleted text begin24 members. Twelve members
shall be appointed by the Subcommittee on Committees of the Committee on Rules and
Administration of the senate. Twelve members shall be appointed by the speaker of the
house. Each appointing authority must appoint one member who is a student enrolled in a
degree program at the University of Minnesota at the time of appointment. No more than
one-third of the members appointed by each appointing authority may be current or former
legislators. No more than two-thirds of the members appointed by each appointing authority
may belong to the same political party; however, political activity or affiliation is not required
for the appointment of any member. Geographical representation must be taken into
consideration when making appointments. Section 15.0575 shall govern the advisory council,
except that:
deleted text end

deleted text begin (1) the members shall be appointed to six-year terms with one-third appointed each
even-numbered year; and
deleted text end

deleted text begin (2) student members are appointed to two-year terms with two students appointed each
even-numbered year.
deleted text end

deleted text begin A member may not serve more than two full terms.
deleted text end

new text begin (1) four members of the house of representatives, two of whom are appointed by the
speaker of the house and two of whom are appointed by the minority leader; and
new text end

new text begin (2) four members of the senate, two of whom are appointed by the majority leader and
two of whom are appointed by the minority leader.
new text end

new text begin (b) Members serve at the pleasure of the appointing authority. The first appointments
must be made by September 1, 2018.
new text end

new text begin (c) A chair of the commission serves a two-year term, expiring on June 30 in an
even-numbered year. The chair must alternate biennially between a designee of the speaker
of the house and a designee of the senate majority leader. Only a member of the commission
may be designated as the chair. The speaker of the house shall designate the first chair. The
chair may vote on any matter before the commission.
new text end

Subd. 3.

Duties.

(a) The deleted text beginadvisory councildeleted text endnew text begin commissionnew text end shall:

(1) develop, in consultation with current and former regentsnew text begin, the University of Minnesota
Alumni Association,
new text end and the administration of the University of Minnesota, a statement of
the selection criteria to be applied and a description of the responsibilities and duties of a
regent, and shall distribute this to potential candidates; and

(2) for each position on the board, identify and recruit qualified candidates for the Board
of Regents, based on the background and experience of the candidates, their potential for
discharging the responsibilities of a member of the Board of Regents, and the needs of the
board. The selection criteria must not include a limitation on the number of terms an
individual may serve on the Board of Regents.

(b) The selection criteria developed under paragraph (a), clause (1), must include a
criterion that regents represent diversity in geography; gender; race; occupation, including
business and labor; and experience.

(c) The selection criterion must include an identification of the membership needs of
the board for individual skills relevant to the governance of the University of Minnesota
and the needs for certain individual characteristics. Individual characteristics relate to
qualities such as gender, race, and geographic location of residence.

Subd. 4.

Recommendations.

(a) The deleted text beginadvisory councildeleted text endnew text begin commissionnew text end shall recommend at
least deleted text begintwodeleted text endnew text begin onenew text end and not more than deleted text beginfourdeleted text endnew text begin threenew text end candidatesnew text begin for each vacancynew text end. By January 15 of
each odd-numbered year, the deleted text beginadvisory councildeleted text endnew text begin commissionnew text end shall submit its recommendations
to the joint legislative committee described in section 137.0246, subdivision 2.

(b) The deleted text beginadvisory councildeleted text endnew text begin commissionnew text end must submit a report to the joint committee on the
needs criterion identified under subdivision 3, paragraph (c), at the same time it submits its
recommendations.

Subd. 5.

Support services.

The Legislative Coordinating Commission shall provide
administrative and support services for the deleted text beginadvisory councildeleted text endnew text begin commission. The Legislative
Coordinating Commission shall collect application materials from regent candidates and
forward all materials to the Legislative Commission on Regent Selection
new text end.

Sec. 6.

Minnesota Statutes 2016, section 137.0246, is amended to read:


137.0246 REGENT NOMINATION AND ELECTION.

Subd. 2.

Regent nomination joint committee.

(a) The joint legislative committee
consists of the members of the higher education budget and policy divisions in each house
of the legislature. The chairs of the divisions from each body shall be cochairs of the joint
legislative committee. A majority of the members from each house is a quorum of the joint
committee.

(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent
resolution, the joint legislative committee shall meet to consider the deleted text beginadvisory council'sdeleted text endnew text begin
Legislative Commission on Regent Selection's
new text end recommendations for regent of the University
of Minnesota for possible presentation to a joint convention of the legislature.

(c) The joint committee may recommend to the joint convention candidates recommended
by the deleted text beginadvisory councildeleted text endnew text begin Legislative Commission on Regent Selectionnew text end and the other candidates
nominated by the joint committee. A candidate other than those recommended by the
deleted text begin advisory councildeleted text endnew text begin Legislative Commission on Regent Selectionnew text end may be nominated for
consideration by the joint committee only if the nomination receives the support of at least
three house of representatives members of the committee and two senate members of the
committee. A candidate must receive a majority vote of members from the house of
representatives and from the senate on the joint committee to be recommended to the joint
convention. The joint committee may recommend no more than one candidate for each
vacancy. In recommending nominees, the joint committee must consider the needs of the
board of regents and the balance of the board membership with respect to gender, racial,
and ethnic composition.

Sec. 7.

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


Subd. 18.

MNSCU Two-Year Public College
Program

deleted text begin 3,481,000
deleted text end new text begin 2,481,000
new text end
-0-

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

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

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

new text begin EFFECTIVE DATE. new text end

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

Sec. 8.

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


Subd. 20.

Spinal Cord Injury and Traumatic
Brain Injury Research Grant Program

3,000,000
3,000,000

new text begin For transfer to the spinal cord injury and
traumatic brain injury research grant account
in the special revenue fund.
new text end

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

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

Sec. 9. new text beginAFFORDABLE TEXTBOOK PLAN AND REPORT.
new text end

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

Sec. 10. new text beginUNIVERSITY OF MINNESOTA; APPEAL PROCESS FOR SEXUAL
MISCONDUCT FINDINGS INVOLVING EMPLOYEES.
new text end

new text begin The Board of Regents of the University of Minnesota is requested to amend its sexual
misconduct policies to:
new text end

new text begin (1) provide a process for accused university employees and their victims to appeal
findings of the university's Office of Equal Opportunity and Affirmative Action before an
impartial decision maker; and
new text end

new text begin (2) require the office, at the conclusion of a sexual misconduct investigation, to provide
notice to accused university employees and their victims of any appeal rights.
new text end

ARTICLE 3

OFFICE OF HIGHER EDUCATION AGENCY POLICY

Section 1.

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


Subd. 2.

Powers and duties; report.

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

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

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

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

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

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

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

(2) evaluate the effectiveness of new text begin(i) investments in young children and families and (ii)
new text end educational and workforce programs; and

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

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

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

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

Sec. 2.

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


Subd. 2.

Eligibility.

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

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

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

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

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

Sec. 3.

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


Subd. 3.

Administration; repayment.

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

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

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

Sec. 4.

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


Subd. 8.

Eligible student.

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

Sec. 5.

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


Subdivision 1.

Designation.

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

Sec. 6.

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


Subd. 2.

Rulesnew text begin, policies, and conditionsnew text end.

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

Sec. 7.

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


Subd. 5.

Agencies.

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

Sec. 8.

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


Subd. 8.

Investment.

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

Sec. 9.

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


Subd. 9.

Staff.

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

Sec. 10.

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


136A.162 CLASSIFICATION OF DATA.

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

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

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

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 11.

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


Subd. 7.

Repayment of loans.

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

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

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

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

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

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

Sec. 12.

Minnesota Statutes 2016, section 136A.1702, is amended to read:


136A.1702 LEGISLATIVE OVERSIGHT.

new text begin (a) new text endThe office shall notify the chairs of the legislative committees with primary
jurisdiction over higher education finance of any proposed material change to any of its
student loan programs, including loan refinancing under section 136A.1704, prior to making
the change.

new text begin (b) By December 1 of each year, the commissioner shall submit a report to the chairs
and ranking minority members of the senate and house of representatives committees having
jurisdiction over the Office of Higher Education regarding the balance of the following
accounts in the special revenue fund:
new text end

new text begin (1) the aviation degree loan forgiveness program account established by section
136A.1789, subdivision 2;
new text end

new text begin (2) the teacher shortage loan forgiveness program repayment account established by
section 136A.1791, subdivision 8;
new text end

new text begin (3) the agricultural education loan forgiveness account established by section 136A.1794,
subdivision 2; and
new text end

new text begin (4) the large animal veterinarian loan forgiveness program account established by section
136A.1795, subdivision 2.
new text end

Sec. 13.

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


Subd. 2.

Creation of account.

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

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

Sec. 14.

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


Subd. 8.

deleted text beginFunddeleted text endnew text begin Accountnew text end established.

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

Sec. 15.

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


Subd. 2.

Establishment; administration.

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

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

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

(b)new text begin A large animal veterinarian loan forgiveness program account is established in the
special revenue fund. The commissioner must use money from the account to establish and
administer the program under this section. Appropriations to the commissioner for the
program are for transfer to the fund.
new text end

new text begin (c)new text end Appropriations made to the program do not cancel and are available until expended.

Sec. 16.

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


136A.646 ADDITIONAL SECURITY.

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

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

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

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

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

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

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

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

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

(2) private student loans; and

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

Sec. 17.

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


Subd. 6.

Bond.

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

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

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

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

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

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

Sec. 18.

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


Subd. 10.

Catalog, brochure, or electronic display.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(15) the name and address of the officenew text begin; and
new text end

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

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

Sec. 19.

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


new text begin Subd. 6. new text end

new text begin Disclosure. new text end

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

Sec. 20.

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


Subd. 29.

Emergency Assistance for
Postsecondary Students

175,000
175,000

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

(b) This appropriation shall be used to meet
immediate student needs that could result in
a student not completing the term or their
program including, but not limited to,
emergency housing, food, and transportation.
Emergency assistance does not impact the
amount of state financial aid received.

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

Sec. 21.

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


Subd. 31.

Teacher Shortage Loan Forgiveness

200,000
200,000

Fornew text begin transfer tonew text end thenew text begin teacher shortagenew text end loan
forgiveness deleted text beginprogramdeleted text endnew text begin repayment account in the
special revenue fund
new text end under Minnesota
Statutes, section 136A.1791new text begin, subdivision 8new text end.

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

Sec. 22.

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


Subd. 32.

Large Animal Veterinarian Loan
Forgiveness Program

375,000
375,000

For new text begintransfer to new text endthe large animal veterinarian
loan forgiveness program new text beginaccount in the
special revenue fund
new text endunder Minnesota
Statutes, section 136A.1795new text begin, subdivision 2new text end.

Sec. 23.

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


Subd. 33.

Agricultural Educators Loan
Forgiveness

50,000
50,000

For deleted text begindeposit indeleted text endnew text begin transfer tonew text end the agricultural
education loan forgiveness accountnew text begin in the
special revenue fund under Minnesota
Statutes, section 136A.1794, subdivision 2
new text end.

Sec. 24.

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


Subd. 34.

Aviation Degree Loan Forgiveness
Program

25,000
25,000

For new text begintransfer to new text endthe aviation degree loan
forgiveness program new text beginaccount in the special
revenue fund
new text endunder Minnesota Statutes,
section 136A.1789new text begin, subdivision 2new text end.

Sec. 25. new text beginONGOING APPROPRIATION.
new text end

new text begin Notwithstanding Minnesota Statutes, section 136A.1791, subdivision 8, the appropriation
made in Laws 2016, chapter 189, article 25, section 62, subdivision 11, is available until
June 30, 2019.
new text end

Sec. 26. new text begin REPEALER.
new text end

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

APPENDIX

Repealed Minnesota Statutes: H3638-1

136A.15 DEFINITIONS.

Subd. 2.

Academic year or its equivalent.

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

Subd. 7.

Eligible lender.

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

136A.1701 SUPPLEMENTAL AND ADDITIONAL LOANS.

Subd. 12.

Eligible student.

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