HF 3872

Conference Committee Report - 92nd Legislature (2021 - 2022) Posted on 05/20/2022 08:05am

CONFERENCE COMMITTEE REPORT ON H. F. No. 3872

A bill for an act
relating to higher education; providing for funding and policy changes for the
Office of Higher Education, the University of Minnesota, and the Minnesota State
Colleges and Universities system; creating and modifying certain student aid
programs; creating and modifying certain grants to institutions; modifying certain
institutional licensure provisions; creating the Inclusive Higher Education Technical
Assistance Center; modifying Board of Regents provisions; requiring reports;
appropriating money; amending Minnesota Statutes 2020, sections 135A.15,
subdivision 8, by adding a subdivision; 136A.121, subdivisions 5, 18; 136A.1701,
subdivision 11; 136A.833; 137.023; 137.024; 137.0245, subdivisions 2, 3;
137.0246; Minnesota Statutes 2021 Supplement, sections 135A.137, subdivision
3; 136A.126, subdivisions 1, 4; 136A.1791, subdivision 5; 136A.91, subdivisions
1, 2; 136F.20, subdivision 4; 136F.202, subdivision 1; Laws 2021, First Special
Session chapter 2, article 1, section 2, subdivisions 35, 36; article 2, section 45,
by adding a subdivision; proposing coding for new law in Minnesota Statutes,
chapters 135A; 136A; 137; repealing Minnesota Rules, part 4880.2500.

May 19, 2022
The Honorable Melissa Hortman
Speaker of the House of Representatives

The Honorable David J. Osmek
President of the Senate

We, the undersigned conferees for H. F. No. 3872 report that we have agreed upon the
items in dispute and recommend as follows:

That the Senate recede from its amendments and that H. F. No. 3872 be further amended
as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

APPROPRIATIONS

Section 1. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are added to the appropriations
in Laws 2021, First Special Session chapter 2, 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 "2022" and "2023" used in this article mean that the appropriations
listed under them are available for the fiscal year ending June 30, 2022, or June 30, 2023,
respectively. "The first year" is fiscal year 2022. "The second year" is fiscal year 2023. "The
biennium" is fiscal years 2022 and 2023.
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 2022 new text end		new text begin 2023 new text end

Sec. 2. new text begin MINNESOTA 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 8,825,000 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 Student Parent Support Initiative new text end

new text begin -0- new text end

new text begin 750,000 new text end

new text begin (a) For the student-parent support initiative
under Minnesota Statutes, section 136A.1251.
The commissioner may use the appropriation
for grants, outreach, and administration.
new text end

new text begin (b) The base for this appropriation is $750,000
in fiscal year 2024 and later.
new text end

new text begin Subd. 3. new text end new text begin Operating Expenses of Tribal Colleges new text end

new text begin -0- new text end

new text begin 3,000,000 new text end

new text begin (a) For a grant to Leech Lake Tribal College,
White Earth Tribal College, and Red Lake
Nation Tribal College, to be used for the Tribal
colleges' general operations and maintenance
expenses. The commissioner shall apportion
the funds equally among the Tribal colleges.
new text end

new text begin (b) The base for this appropriation is
$3,000,000 in fiscal year 2024 and later.
new text end

new text begin (c) By September 30, 2023, each Tribal
college receiving a grant under this
subdivision must submit a report to the
commissioner of the Office of Higher
Education and to the chairs and ranking
minority members of the legislative
committees with jurisdiction over higher
education finance and policy. The report must
include an accurate and detailed account of
how the funds were spent, and a copy of the
college's most recent audit report.
new text end

new text begin Subd. 4. new text end new text begin State Grants new text end

new text begin -0- new text end

new text begin -0- new text end

new text begin (a) $2,414,000 is added to this program's base
appropriation in fiscal years 2024 and later.
The base for this appropriation is therefore
$212,451,000 in fiscal year 2024 and later.
new text end

new text begin (b) If the amount appropriated for this program
is determined by the office to be more than
sufficient to fund projected grant demand in
the second year of the biennium, the office
may reduce the assigned student responsibility
in the second year of the biennium by up to
an amount that retains sufficient appropriations
to fund the projected grant demand. The
adjustment may be made one or more times.
In making the determination that there are
more than sufficient funds, the office shall
balance the need for sufficient resources to
meet the projected demand for grants with the
goal of fully allocating the appropriation for
state grants. A reduction in the assigned
student responsibility under this subdivision
does not carry forward into a subsequent
biennium. This paragraph is only effective for
fiscal year 2023.
new text end

new text begin Subd. 5. new text end new text begin Grants to Underrepresented Student Teachers new text end

new text begin -0- new text end

new text begin 500,000 new text end

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

new text begin (b) $500,000 is added to this program's base
appropriation in fiscal year 2024 and later
specified in Laws 2021, First Special Session
chapter 2, article 1, section 2, subdivision 26.
new text end

new text begin Subd. 6. new text end new text begin Hunger-Free Campus Grants new text end

new text begin -0- new text end

new text begin 75,000 new text end

new text begin (a) This appropriation is in addition to the
amount appropriated in Laws 2021, First
Special Session chapter 2, article 1, section 2,
subdivision 35, as amended by this act.
new text end

new text begin (b) The base for this appropriation is increased
by $75,000 in fiscal year 2024 and later.
new text end

new text begin Subd. 7. new text end new text begin Inclusive Higher Education new text end

new text begin -0- new text end

new text begin 500,000 new text end

new text begin (a) Of this amount, $330,000 is for transfer to
the inclusive higher education grant account
under Minnesota Statutes, section 135A.162,
subdivision 4, and $170,000 is to enter into a
contract establishing the Inclusive Higher
Education Technical Assistance Center under
Minnesota Statutes, section 135A.161.
new text end

new text begin (b) The base for this appropriation is $500,000
beginning in fiscal year 2024 and each year
thereafter through fiscal year 2027. The base
for this appropriation is $0 for fiscal year 2028
and later.
new text end

new text begin Subd. 8. new text end new text begin Owatonna Learn to Earn Coalition; Office of Higher Education new text end

new text begin -0- new text end

new text begin 980,000 new text end

new text begin This appropriation is for a grant to the
Owatonna Learn to Earn Coalition to help the
Owatonna and Steele County region grow and
retain a talented workforce. This is a onetime
appropriation and is available until June 30,
2024. Of this amount:
new text end

new text begin (1) $900,000 is to develop educational learning
spaces with state-of-the-art equipment and
student support services in high-demand career
pathway programs. Of this amount, $306,000
is to equip the new Owatonna High School's
Industrial Technology classrooms with
state-of-the-art equipment to introduce
students to high-skill, high-wage, technical
careers, and $594,000 is to equip the
Owatonna Riverland Community College
Campus with state-of-the-art instructional
equipment to offer credit and noncredit
technical programs in automation robotics
engineering technology and information
technology; and
new text end

new text begin (2) $80,000 is to create learn to earn
opportunities for students and employers by
engaging employers in the Owatonna
community to offer tuition reimbursement or
scholarships and part-time work and school
schedules to employees who agree to continue
their education while working for them.
new text end

new text begin Subd. 9. new text end new text begin Owatonna Learn to Earn Coalition; Department of Employment and Economic Development new text end

new text begin -0- new text end

new text begin 20,000 new text end

new text begin For transfer to the commissioner of
employment and economic development for
a grant to the Owatonna Learn to Earn
Coalition to conduct a comprehensive local
needs assessment to examine current and
future workforce needs in the region. The
coalition shall retain a consultant and utilize
state demographer resources to involve
education, business, and community
stakeholders to guide the high school's career
pathways, the college's programs of study, and
the business's support of work-based learning
programs that help them recruit, develop, and
retain a vibrant workforce to keep the regional
economy strong. This is a onetime
appropriation and is available until June 30,
2024.
new text end

new text begin Subd. 10. new text end new text begin Certified Nursing Assistant Program new text end

new text begin -0- new text end

new text begin 3,000,000 new text end

new text begin (a) For the Office of Higher Education, in
partnership with Minnesota State's
HealthForce Minnesota, to administer a
program for the recruitment and training of
students to become certified nursing assistants.
The program shall include a model for
covering student costs, including but not
limited to tuition and fees, necessary materials,
and testing. The program shall also include
marketing and outreach across the state.
Additionally, the program may cover cost for
Nursing Assistant Test-Out (NATO) retraining
and retesting and refresher courses.
new text end

new text begin (b) No more than $200,000 per year is
available for the coordination and
implementation of this program.
new text end

new text begin (c) This is a onetime appropriation.
new text end

Sec. 3. new text begin BOARD 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 8,175,000 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 8,175,000 new text end

new text begin (a) $3,125,000 in fiscal year 2023 is to
maintain campus operations that deliver
excellent, affordable, accessible education that
is responsive to changes in the state's
educational needs. This is a onetime
appropriation.
new text end

new text begin (b) $5,050,000 in fiscal year 2023 is in
addition to the workforce development
scholarships amount appropriated in Laws
2021, First Special Session chapter 2, article
1, section 3, subdivision 3, paragraph (e). Of
this appropriation, up to $200,000 is available
in each year to administer the program. Of this
appropriation, $800,000 in fiscal year 2023 is
for scholarships to students enrolled in their
first term in an allied health technician
program, which is a category under the
workforce development scholarship health
care services. A student may receive the allied
health technician scholarship only once. The
$800,000 is available until June 30, 2025, and
of this amount, $24,000 is available for
administering the allied health technician
scholarships. The base for this appropriation
is increased by $3,750,000 in fiscal year 2024
and later.
new text end

new text begin (c) $1,011,000 is added to the base
appropriation for operations and maintenance
in fiscal year 2024 and later established in
Laws 2021, First Special Session chapter 2,
article 1, section 3, subdivision 3, paragraph
(l).
new text end

Sec. 4. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin -0- new text end

new text begin $ new text end

new text begin 3,000,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivision.
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 3,000,000 new text end

new text begin (a) $1,000,000 is to expand the University of
Minnesota's systemwide Promise Program to
support students with financial need, including
historically underrepresented students. The
base for this appropriation is $1,000,000 in
fiscal year 2024 and later which is added to
the base appropriation for operations and
maintenance in fiscal year 2024 and later
established in Laws 2021, First Special
Session chapter 2, article 1, section 4,
subdivision 2, paragraph (f).
new text end

new text begin (b) $2,000,000 in fiscal year 2023 is in
addition to the Natural Resources Research
Institute (NRRI) amount appropriated in Laws
2021, First Special Session chapter 2, article
1, section 4, subdivision 4, paragraph (d). This
is a onetime increase.
new text end

Sec. 5.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 35, is
amended to read:

Subd. 35. Hunger-Free Campus Grants

205,000

102,000

For the Office of Higher Education to provide
initial and sustaining grants to Minnesota
public postsecondary institutions new text begin , nonprofit
private postsecondary institutions, new text end and Tribal
colleges under Minnesota Statutes, section
deleted text begin 136F.245 deleted text end new text begin 135A.137 new text end , subdivision deleted text begin 4 deleted text end new text begin 3 new text end , to meet
and maintain the criteria in that same section
to address food insecurity on campus.

Sec. 6.

Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision 36, is
amended to read:

Subd. 36. Fostering Independence Higher Education Grants

238,000

3,759,000

new text begin (a) new text end For grants to eligible students under
Minnesota Statutes, section 136A.1241. Of
this amount, $238,000 in the first year is for
administration costs. The base for fiscal year
2024 and later is $3,761,000.

new text begin (b) Beginning in fiscal year 2023, the
commissioner of the Office of Higher
Education may use no more than three percent
of the appropriation to administer the grants
under Minnesota Statutes, section 136A.1241.
new text end

ARTICLE 2

HIGHER EDUCATION POLICY

Section 1.

Minnesota Statutes 2021 Supplement, section 135A.137, subdivision 3, is
amended to read:

Subd. 3.

Competitive grant.

(a) Institutions eligible for a grant under this subdivision
include public postsecondary institutions new text begin , nonprofit private postsecondary institutions, new text end and
Tribal colleges.

(b) The commissioner shall establish a competitive grant program to distribute grants
to eligible institutions to meet and maintain the requirements under subdivision 1, paragraph
(a). Initial grants shall be made to institutions that have not earned the designation and
demonstrate a need for funding to meet the hunger-free campus designation requirements.
Sustaining grants shall be made to institutions that have earned the designation and
demonstrate both a partnership with a local food bank or organization that provides regular,
on-campus food distributions and a need for funds to maintain the requirements under
subdivision 1, paragraph (a).

(c) The commissioner shall give preference to applications for initial grants and to
applications from institutions with the highest number of federal Pell Grant eligible students
enrolled. The commissioner shall consider the head count at the institution when awarding
grants. The maximum grant award for an initial institution designation is $8,000. The
maximum grant award for sustaining an institution designation is $5,000.

(d) The commissioner, in collaboration with student associations representing eligible
institutions, shall create an application process and establish selection criteria for awarding
the grants.

Sec. 2.

Minnesota Statutes 2020, section 135A.15, is amended by adding a subdivision to
read:

new text begin Subd. 3a. new text end

new text begin Affirmative consent. new text end

new text begin (a) The policy required under subdivision 1 shall include
a provision that establishes an affirmative consent standard. An institution's affirmative
consent standard, at a minimum, must incorporate the following elements:
new text end

new text begin (1) all parties to sexual activity must affirmatively express their consent to the activity;
new text end

new text begin (2) affirmative consent is freely and affirmatively communicated words or actions given
by an individual that a reasonable person under the circumstances would believe communicate
a willingness to participate in the sexual activity;
new text end

new text begin (3) affirmative consent must be knowing and voluntary and not the result of force,
coercion, or intimidation;
new text end

new text begin (4) silence, lack of protest, or failure to resist, without active indications of consent, is
not consent;
new text end

new text begin (5) consent to any one form of sexual activity does not by itself imply consent to any
other forms of sexual activity;
new text end

new text begin (6) consent may be withdrawn at any time;
new text end

new text begin (7) a previous relationship or prior consent does not by itself imply consent to future
sexual acts; and
new text end

new text begin (8) a person is deemed incapable of consenting when that person is:
new text end

new text begin (i) unable to communicate or understand the nature or extent of a sexual situation due
to mental or physical incapacitation or impairment; or
new text end

new text begin (ii) physically helpless, either due to the effects of drugs or alcohol, or because the person
is asleep.
new text end

new text begin (b) The affirmative consent standard must at least incorporate all elements of consent
as defined in section 609.341, but is not limited to the standard of consent as defined in that
section.
new text end

Sec. 3.

Minnesota Statutes 2020, section 135A.15, subdivision 8, is amended to read:

Subd. 8.

Comprehensive training.

(a) A postsecondary institution must provide campus
security officers and campus administrators responsible for investigating or adjudicating
complaints of sexual assault with comprehensive training on preventing and responding to
sexual assault in collaboration with the Bureau of Criminal Apprehension or another law
enforcement agency with expertise in criminal sexual conduct. The training for campus
security officers shall include a presentation on the dynamics of sexual assault,
neurobiological responses to trauma, and best practices for preventing, responding to, and
investigating sexual assault. The training for campus administrators responsible for
investigating or adjudicating complaints on sexual assault shall include presentations on
preventing sexual assault, responding to incidents of sexual assault, the dynamics of sexual
assault, neurobiological responses to trauma, and compliance with state and federal laws
on sexual assault.

(b) The following categories of students who attend, or will attend, one or more courses
on campus or will participate in on-campus activities must be provided sexual assault
training:

(1) students pursuing a degree or certificate;

(2) students who are taking courses through the Postsecondary Enrollment Options Act;
and

(3) any other categories of students determined by the institution.

Students must complete such training no later than ten business days after the start of a
student's first semester of classes. Once a student completes the training, institutions must
document the student's completion of the training and provide proof of training completion
to a student at the student's request. Students enrolled at more than one institution within
the same system at the same time are only required to complete the training once.

The training shall include information about topics including but not limited to sexual
assault as defined in subdivision 1a; consent as defined in section 609.341, subdivision 4;
new text begin the affirmative consent standard defined in subdivision 3a; new text end preventing and reducing the
prevalence of sexual assault; procedures for reporting campus sexual assault; and campus
resources on sexual assault, including organizations that support victims of sexual assault.

(c) A postsecondary institution shall annually train individuals responsible for responding
to reports of sexual assault. This training shall include information about best practices for
interacting with victims of sexual assault, including how to reduce the emotional distress
resulting from the reporting, investigatory, and disciplinary process.

Sec. 4.

new text begin [135A.161] INCLUSIVE HIGHER EDUCATION TECHNICAL ASSISTANCE
CENTER.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section and section 135A.162, the
following terms have the meanings given.
new text end

new text begin (b) "Center" means the Inclusive Higher Education Technical Assistance Center.
new text end

new text begin (c) "Commissioner" means the commissioner of the Office of Higher Education.
new text end

new text begin (d) "Comprehensive transition and postsecondary program for students with intellectual
disabilities" means a degree, certificate, or nondegree program that is offered by an institute
of higher education for students with intellectual disabilities and approved by the United
States Department of Education.
new text end

new text begin (e) "Director" means the director of the Inclusive Higher Education Technical Assistance
Center.
new text end

new text begin (f) "Inclusive higher education" means institution-approved access to higher education
for students with an intellectual disability that allows for the same rights, privileges,
experiences, benefits, and outcomes that result from a college experience the same as a
matriculating student, resulting in a meaningful credential conferred by the institution of
higher education. Inclusive higher education includes:
new text end

new text begin (1) academic access and inclusive instruction;
new text end

new text begin (2) person-centered planning;
new text end

new text begin (3) career development;
new text end

new text begin (4) campus engagement;
new text end

new text begin (5) self-determination;
new text end

new text begin (6) paid internships and employment;
new text end

new text begin (7) on- or off-campus living, when available to other students;
new text end

new text begin (8) campus community clubs, events, and activity participation;
new text end

new text begin (9) peer mentors and support; and
new text end

new text begin (10) a degree, certificate, or nondegree credential.
new text end

new text begin (g) "National Coordinating Center" means the federally funded National Coordinating
Center providing support, coordination, training, and evaluation services for Transition and
Postsecondary Education Programs for Students with Intellectual Disabilities and other
inclusive higher education initiatives for students with intellectual disability nationwide.
new text end

new text begin (h) "Office" means the Office of Higher Education.
new text end

new text begin (i) "Student with an intellectual disability" means a student with an intellectual disability
as defined in Code of Federal Regulations, title 34, section 668.231.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin The commissioner must contract with the Institute on
Community Integration at the University of Minnesota to establish the Inclusive Higher
Education Technical Assistance Center. The purpose of the center is to increase access to
self-sustaining postsecondary education options across Minnesota for students with an
intellectual disability to earn meaningful credentials through degree, certificate, and
nondegree initiatives leading to competitive integrated employment, genuine community
membership, and more independent living. The center must:
new text end

new text begin (1) coordinate and facilitate the statewide initiative to expand and enhance inclusive
higher education opportunities;
new text end

new text begin (2) provide expertise in inclusive higher education for students with an intellectual
disability;
new text end

new text begin (3) provide technical assistance:
new text end

new text begin (i) to Minnesota institutions of higher education;
new text end

new text begin (ii) to local education agencies; and
new text end

new text begin (iii) as requested by the commissioner; and
new text end

new text begin (4) provide information to students with intellectual disabilities and their families.
new text end

new text begin Subd. 3. new text end

new text begin Director; advisory committee. new text end

new text begin (a) The center must name a director.
new text end

new text begin (b) The director must appoint an advisory committee and seek the committee's review
and recommendations on broad programmatic direction. The advisory committee must be
composed of 50 percent students with an intellectual disability. The remaining positions
must be filled by family members, key stakeholders, and allies. The director must convene
the advisory committee at least quarterly. The advisory committee shall:
new text end

new text begin (1) review and recommend inclusive higher education offerings;
new text end

new text begin (2) review and recommend updates to state policy and practice;
new text end

new text begin (3) document existing and potential funding sources; and
new text end

new text begin (4) identify obstacles and barriers to students with an intellectual disability to access
inclusive higher education opportunities.
new text end

new text begin Subd. 4. new text end

new text begin Responsibilities. new text end

new text begin (a) The center must advise all Minnesota institutions of higher
education planning or that have an inclusive higher education initiative to follow and maintain
the accreditation standards and guiding principles for inclusive higher education as
established by the National Coordinating Center, as identified in the United States Code,
title 20, section 1140q. The center must offer technical assistance to Minnesota inclusive
higher education initiatives to remain in or achieve alignment with federal requirements
and with the standards, quality indicators, and benchmarks identified by the National
Coordinating Center.
new text end

new text begin (b) The center must monitor federal and state law related to inclusive higher education
and notify the governor, the legislature, and the Office of Higher Education of any change
in law which may impact inclusive higher education.
new text end

new text begin (c) The center must provide technical assistance to institutions of higher education,
administrators, faculty, and staff by:
new text end

new text begin (1) offering institution faculty and staff training and professional development to start,
operate, or enhance their inclusive higher education initiative;
new text end

new text begin (2) providing faculty and staff with information, training, and consultation on the
comprehensive transition and postsecondary program requirements, accreditation standards,
and guiding principles;
new text end

new text begin (3) organizing and offering learning community events, an annual inclusive higher
education conference and community of practice events to share best practices, provide
access to national experts, and address challenges and concerns;
new text end

new text begin (4) assisting institutions of higher education with identifying existing or potential funding
sources for the institution of higher education, student financial aid, and funding for students
with an intellectual disability; and
new text end

new text begin (5) advising faculty and staff with an inclusive higher education option of specific grant
applications and funding opportunities.
new text end

new text begin (d) The center must disseminate information to students with an intellectual disability,
their parents, and local education agencies, including but not limited to information about:
new text end

new text begin (1) postsecondary education options, services, and resources that are available at inclusive
institutions of higher education;
new text end

new text begin (2) technical assistance and training provided by the center, the National Coordinating
Center, and key stakeholder organizations and agencies; and
new text end

new text begin (3) mentoring, networking, and employment opportunities.
new text end

new text begin Subd. 5. new text end

new text begin Expiration. new text end

new text begin This section expires October 1, 2027.
new text end

Sec. 5.

new text begin [135A.162] INCLUSIVE HIGHER EDUCATION GRANTS.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner of the Office of Higher Education
in collaboration with the director of the Inclusive Higher Education Technical Assistance
Center must establish a competitive grant program for Minnesota institutions of higher
education to develop new or enhance existing inclusive higher education initiatives to enroll
or increase enrollment of students with an intellectual disability. The commissioner and
director must collaborate to establish the grant program framework, including:
new text end

new text begin (1) minimum grant requirements;
new text end

new text begin (2) application format;
new text end

new text begin (3) criteria for evaluating applications;
new text end

new text begin (4) grant selection process;
new text end

new text begin (5) milestones and accountability; and
new text end

new text begin (6) reporting.
new text end

new text begin (b) The commissioner must send a description of the competitive grants, including
materials describing the grant purpose and goals, an application, compliance requirements,
and available funding to each institution of higher education that meets the requirements
of subdivision 2, clauses (1) and (2).
new text end

new text begin Subd. 2. new text end

new text begin Eligible grantees. new text end

new text begin A public postsecondary two-year or four-year institution is
eligible to apply for a grant under this section if the institution:
new text end

new text begin (1) is accredited by the Higher Learning Commission; and
new text end

new text begin (2) meets the eligibility requirements under section 136A.103.
new text end

new text begin Subd. 3. new text end

new text begin Application. new text end

new text begin (a) Applications must be made to the commissioner on a form
developed and provided by the commissioner. The commissioner must, to the greatest extent
possible, make the application form as short and simple to complete as is reasonably possible.
The commissioner must establish a schedule for applications and grants. The application
must include without limitation a written plan to develop or enhance a sustainable inclusive
higher education initiative that:
new text end

new text begin (1) offers the necessary supports to students with an intellectual disability to access the
same rights, privileges, experiences, benefits, and outcomes of a typically matriculating
student;
new text end

new text begin (2) includes the development of a meaningful credential for students with an intellectual
disability to attain upon successful completion of the student's postsecondary education;
new text end

new text begin (3) adopts admission standards that do not require a student with an intellectual disability
to complete a curriculum-based, achievement college entrance exam that is administered
nationwide;
new text end

new text begin (4) ensures that students with an intellectual disability:
new text end

new text begin (i) have access and choice in a wide array of academic courses to enroll in for credit or
audit that align with the student's interest areas and are attended by students without
disabilities;
new text end

new text begin (ii) have the option to live on or off campus in housing that is available to typically
matriculating students;
new text end

new text begin (iii) have access and support for genuine membership in campus life, including events,
social activities and organizations, institution facilities, and technology; and
new text end

new text begin (iv) are able to access and utilize campus resources available to typical matriculating
students;
new text end

new text begin (5) provides students with an intellectual disability with the supports and experiences
necessary to seek and sustain competitive integrated employment;
new text end

new text begin (6) develops and promotes the self-determination skills of students with an intellectual
disability;
new text end

new text begin (7) utilizes peer mentors who support enrolled students with an intellectual disability in
academic, campus engagement, residence life, employment, and campus clubs and
organizations;
new text end

new text begin (8) provides professional development and resources for university professors and
instructors to utilize universal design for learning and differentiated instruction that supports
and benefits all students; and
new text end

new text begin (9) presents a ten-year plan including student enrollment projections for sustainability
of an initiative that is financially accessible and equitable for all interested students with an
intellectual disability.
new text end

new text begin (b) Eligible institutions of higher education may apply for funding in subsequent years
for up to a total of ten years of funding.
new text end

new text begin Subd. 4. new text end

new text begin Grant account. new text end

new text begin An inclusive higher education grant account is created in the
special revenue fund for depositing money appropriated to or received by the commissioner
for the program. Money deposited in the account is appropriated to the commissioner, does
not cancel, and is continuously available for grants under this section. The commissioner
may use up to five percent of the amount deposited into the account for the administration
of this section.
new text end

new text begin Subd. 5. new text end

new text begin Grant awards. new text end

new text begin (a) The commissioner must award grants to eligible institutions
of higher education on a competitive basis using criteria established in collaboration with
the center. The commissioner must consider and prioritize applicants that have submitted
for or received a comprehensive transition and postsecondary program designation, or
applicants with documented progress or intent toward submitting for federal approval. An
eligible institution of higher education may apply annually for and receive up to $200,000
per year for four years and $100,000 in subsequent years pending performance and the
funding limitation in subdivision 3, paragraph (b).
new text end

new text begin (b) A grant recipient must:
new text end

new text begin (1) adopt the inclusive higher education national accreditation standards and guiding
principles as established by the National Coordinating Center;
new text end

new text begin (2) provide a 25 percent match for the grant funds, either monetary or in-kind; and
new text end

new text begin (3) collaborate with the Office of Higher Education, the center, and key stakeholders in
the development of the inclusive higher education initiative.
new text end

new text begin Subd. 6. new text end

new text begin Grantee reporting. new text end

new text begin By August 1 and January 1 following a fiscal year in which
a grant was received and for five years thereafter, the grantee must submit a report to the
director that includes the status and outcomes of the initiative funded. The report must
include performance indicators and information deemed relevant by the director and
commissioner. The report must include the following performance indicators:
new text end

new text begin (1) student recruitment and number of students enrolled;
new text end

new text begin (2) student retainment effort and retention rate;
new text end

new text begin (3) initiative goals and outcomes;
new text end

new text begin (4) student attainment rate;
new text end

new text begin (5) graduated student employment rates and salary levels at year one and year five after
completion; and
new text end

new text begin (6) additional performance indicators or information established under subdivision 1,
paragraph (a), clauses (5) and (6).
new text end

new text begin Subd. 7. new text end

new text begin Reporting. new text end

new text begin The director must evaluate the development and implementation
of the Minnesota inclusive higher education initiatives receiving a grant under this section.
The director must submit an annual report by October 1 on the progress to expand Minnesota
inclusive higher education options for students with intellectual disabilities to the
commissioner and chairs and ranking minority members of the legislative committees with
jurisdiction over higher education policy and finance. The report must include statutory and
budget recommendations.
new text end

new text begin Subd. 8. new text end

new text begin Expiration. new text end

new text begin This section expires October 1, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective June 30, 2022, except that the reporting
requirements under subdivision 7 are effective June 30, 2023.
new text end

Sec. 6.

Minnesota Statutes 2021 Supplement, section 136A.121, subdivision 6, is amended
to read:

Subd. 6.

Cost of attendance.

(a) The recognized cost of attendance consists of: (1) an
allowance specified in law for living and miscellaneous expenses, and (2) an allowance for
tuition and fees equal to the lesser of the average tuition and fees charged by the institution,
or a tuition and fee maximum if one is established in law. If no living and miscellaneous
expense allowance is established in law, the allowance is equal to deleted text begin 109 deleted text end new text begin 110 new text end percent of the
federal poverty guidelines for a one person household in Minnesota for nine months. If no
tuition and fee maximum is established in law, the allowance for tuition and fees is equal
to the lesser of: (1) the average tuition and fees charged by the institution, and (2) for
two-year programs, an amount equal to the highest tuition and fees charged at a public
two-year institution, or for four-year programs, an amount equal to the highest tuition and
fees charged at a public university.

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

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

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

Sec. 7.

Minnesota Statutes 2020, section 136A.121, subdivision 18, is amended to read:

Subd. 18.

Data.

(a) An eligible institution new text begin whose students are eligible to receive funding
under sections 136A.095 to 136A.246 new text end must provide to the office data on student enrollment
and federal and state financial aid.

(b) An institution or its agent must provide to the office aggregate and distributional
financial or other data as determined by the commissioner that is directly related to the
responsibilities of the office under this chapter. The commissioner may only request aggregate
and distributional data after establishing and consulting with a data advisory task force to
determine the need, content, and detail of the information. Data provided by nonpublic
institutions under this paragraph is considered nonpublic data under chapter 13.

Sec. 8.

new text begin [136A.1251] STUDENT-PARENT SUPPORT INITIATIVE.
new text end

new text begin Subdivision 1. new text end

new text begin Grants. new text end

new text begin (a) To address the needs and support the educational goals of
expectant and parenting college students across Minnesota, the commissioner shall award
grants and provide support services to institutions and partnering entities that assist parents
of young children and expectant parents. Grants shall be awarded to postsecondary
institutions, professional organizations, community-based organizations, or other applicants
deemed appropriate by the commissioner. Grants must be used to offer services to support
the academic goals, health, and well-being of student parents. Services and costs eligible
for grant funding include but are not limited to:
new text end

new text begin (1) program development costs;
new text end

new text begin (2) costs related to the start-up of on-campus child care;
new text end

new text begin (3) evaluation and data collection; and
new text end

new text begin (4) direct assistance to student parents including:
new text end

new text begin (i) scholarships;
new text end

new text begin (ii) basic needs support; and
new text end

new text begin (iii) expenses related to child care.
new text end

new text begin (b) Postsecondary institutions may act as the fiscal agents in partnership with a local
nongovernmental agency, child care center, or other organization that serves student parents.
new text end

new text begin Subd. 2. new text end

new text begin Application process. new text end

new text begin The commissioner shall develop a grant application
process. The commissioner shall support projects in a manner that attempts to ensure eligible
students throughout the state have access to program services.
new text end

new text begin Subd. 3. new text end

new text begin Health-related supports. new text end

new text begin The commissioner, in partnership with the Department
of Health, shall provide health-related supports. Activities for health-related supports include:
new text end

new text begin (1) ensuring programs, services, and materials are medically accurate, age appropriate,
culturally and linguistically appropriate, and inclusive of all populations;
new text end

new text begin (2) working with community health care providers and other service support organizations
that serve the target population for this program; and
new text end

new text begin (3) providing technical assistance and training for institutional parent support center
staff on how to conduct screenings and referrals for the health concerns of student parents,
including alcohol misuse, substance use disorders, depression, anxiety, intimate partner
violence, tobacco and nicotine, and other health concerns.
new text end

new text begin Subd. 4. new text end

new text begin Report and evaluation. new text end

new text begin By August 1 of each odd-numbered year, the
commissioner shall submit a report to the chairs and ranking minority members of the
legislative committees with jurisdiction over higher education finance regarding the grant
recipients and their activities. The report shall include information about the students served,
the organizations providing services, program activities, program goals, and outcomes.
new text end

Sec. 9.

Minnesota Statutes 2020, section 136A.1701, subdivision 11, is amended to read:

Subd. 11.

Data.

(a) An eligible institution new text begin whose students are eligible to receive funding
under sections 136A.15 to 136A.1795 and licensed or registered under sections 136A.61
to 136A.834 new text end must provide to the office data on student enrollment and federal and state
financial aid.

(b) An institution or its agent must provide to the office aggregate and distributional
financial or other data as determined by the commissioner that is directly related to the
responsibilities of the office under this chapter. The commissioner may only request aggregate
and distributional data after establishing and consulting with a data advisory task force to
determine the need, content, and detail of the information. Data provided by nonpublic
institutions under this paragraph is considered nonpublic data under chapter 13.

Sec. 10.

Minnesota Statutes 2020, 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 for the school and all of its programs or some
of its programs must apply to the office to establish that the school new text begin or program new text end meets the
requirements of an exemption. An exemption new text begin for the school or program new text end 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. This exemption shall not extend to any school that uses any
publication or advertisement that is not truthful and gives any false, fraudulent, deceptive,
inaccurate, or misleading impressions about the school or its personnel, programs, services,
or occupational opportunities for its graduates for promotion and student recruitment.
deleted text begin Exemptions denied under this section are subject to appeal under section 136A.65,
subdivision 8, paragraph (c) deleted text end new text begin If an exemption is denied, the office shall provide notice of the
right to appeal under chapter 14 new text end . If an appeal is initiated, the denial of the exemption is not
effective until the final determination of the appeal, unless immediate effect is ordered by
the court.

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;

new text begin (3) postsecondary institutions exempt from registration under sections 136A.653,
subdivisions 2, 3, and 3a; 136A.657; and 136A.658;
new text end

deleted text begin (3) deleted text end new text begin (4) new text end private career schools of nursing accredited by the state Board of Nursing or an
equivalent public board of another state or foreign country;

deleted text begin (4) deleted text end new text begin (5) new text end private schools complying with the requirements of section 120A.22, subdivision
4;

deleted text begin (5) deleted text end new text begin (6) new text end courses taught to students in deleted text begin a valid deleted text end new text begin an new text end apprenticeship program new text begin registered by the
United States Department of Labor or Minnesota Department of Labor and new text end taught by or
required by a trade union;

deleted text begin (6) deleted text end new text begin (7) new text end private career schools exclusively engaged in training physically or mentally
disabled persons for the state of Minnesota;

deleted text begin (7) deleted text end new text begin (8) new text end private career schools licensed by boards authorized under Minnesota law to
issue licenses new text begin for training programs new text end 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;

deleted text begin (8) deleted text end new text begin (9) new text end 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;

deleted text begin (9) deleted text end new text begin (10) new text end private career schools engaged exclusively in the teaching of purely avocational,
recreational, or remedial subjects new text begin , including adult basic education, new text end 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;

deleted text begin (10) deleted text end new text begin (11) new text end classes, courses, or programs conducted by a bona fide trade, professional, or
fraternal organization, solely for that organization's membership;

deleted text begin (11) deleted text end new text begin (12) new text end 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;

deleted text begin (12) deleted text end new text begin (13) new text end 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 new text begin or by an industry-specific certification entity new text end , and that are offered
exclusively to deleted text begin an individual practicing the profession deleted text end new text begin individuals with the professional
licensure or certification new text end ;

deleted text begin (13) deleted text end new text begin (14) new text end classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing deleted text begin and occupational deleted text end new text begin ,
certification, or new text end entrance examinations;

deleted text begin (14) deleted text end new text begin (15) new text end classes, courses, or programs providing 16 or fewer clock hours of instruction
deleted text begin 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 deleted text end ;

deleted text begin (15) deleted text end new text begin (16) new text end classes, courses, or programs providing instruction in personal development,
modeling, or acting;

deleted text begin (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;
deleted text end

(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. 11.

Minnesota Statutes 2021 Supplement, section 136A.91, subdivision 1, is amended
to read:

Subdivision 1.

Grants.

(a) The Office of Higher Education must establish a competitive
grant program for postsecondary institutions to expand concurrent enrollment opportunities.
To the extent that there are qualified applicants, the commissioner of the Office of Higher
Education shall distribute grant funds to ensure:

(1) eligible students throughout the state have access to concurrent enrollment programs;
and

(2) preference for grants that expand programs is given to programs already at capacity.

(b) The commissioner may award grants under this section to postsecondary institutions
for any of the following purposes:

(1) to develop new concurrent enrollment courses under section 124D.09, subdivision
10, that satisfy the elective standard for career and technical education; or

(2) to expand the existing concurrent enrollment programs already offered by the
postsecondary institution by:

(i) creating new sections within the same high school;

(ii) offering the existing course in new high schools; deleted text begin or deleted text end new text begin and
new text end

(iii) supporting the preparation, recruitment, and success of students who are
underrepresented in concurrent enrollment classrooms.

Sec. 12.

Minnesota Statutes 2020, section 136F.02, subdivision 1, is amended to read:

Subdivision 1.

Membership.

The board consists of 15 members appointed by the
governor, including three members who are students who have attended an institution for
at least one year and are enrolled at the time of appointment at least half time in a degree,
diploma, or certificate program in an institution governed by the board. The student members
shall include one member from a community college, one member from a state university,
and one member from a technical college. One member representing labor must be appointed
after considering the recommendations made under section 136F.045. The governor is not
bound by the recommendations. Appointments to the board are with the advice and consent
of the senate. At least one member of the board must be a resident of each congressional
district. All other members must be appointed to represent the state at large. In selecting
appointees, the governor must consider the needs of the board and the balance of the board
membership with respect to labor and business representation deleted text begin and deleted text end new text begin ; new text end racial, gender, geographic,
and ethnic composition new text begin ; and occupation and experience. In selecting appointees, the governor
must consider the needs of the board for skills relevant to the governance of the Minnesota
State Colleges and Universities and the candidate's ability to discharge the responsibilities
of the board new text end .

A commissioner of a state agency may not serve as a member of the board.

Sec. 13.

Minnesota Statutes 2020, section 136F.302, subdivision 1, is amended to read:

Subdivision 1.

ACT or SAT college ready score; Minnesota Comprehensive
Assessment career and college ready benchmarks.

(a) A state college or university must
not require an individual to take a deleted text begin remedial deleted text end new text begin developmental new text end , noncredit course in a subject
area if the individual has received a college ready ACT or SAT score or met a career and
college ready Minnesota Comprehensive Assessment benchmark in that subject area. Only
the ACT and SAT scores an individual received and the Minnesota Comprehensive
Assessment benchmarks an individual met in the previous five years are valid for purposes
of this section. Each state college and university must post notice of the exemption from
deleted text begin remedial deleted text end new text begin developmental new text end course taking on its website explaining student course placement
requirements. new text begin Prior to enrolling an individual in a developmental course, a college or
university must (1) determine if the individual's performance on the ACT, SAT, or Minnesota
Comprehensive Assessments exempts the individual from the developmental course under
this paragraph, and (2) inform the individual if a developmental course is required.
new text end

(b) When deciding if an individual is admitted to or if an individual may enroll in a state
college or university, the state college or university must consider the individual's scores
on the high school Minnesota Comprehensive Assessments, in addition to other factors
determined relevant by the college or university.

Sec. 14.

Minnesota Statutes 2020, section 136F.302, subdivision 2, is amended to read:

Subd. 2.

deleted text begin Testing deleted text end Process for determining if deleted text begin remediating deleted text end new text begin developmental education new text end
is necessary.

new text begin (a) A college or university must not place an individual in a developmental,
noncredit course based solely on a testing process. A state college or university may use
multiple measures to make a holistic determination on whether to place an individual in a
developmental course. Multiple measures may include:
new text end

new text begin (1) testing under paragraph (b);
new text end

new text begin (2) the individual's scores on the high school Minnesota Comprehensive Assessments,
the ACT, or the SAT;
new text end

new text begin (3) high school grade point average;
new text end

new text begin (4) teacher recommendations; and
new text end

new text begin (5) other factors determined relevant by the college or university.
new text end

new text begin (b) new text end A college or university testing process used to determine whether an individual is
placed in a deleted text begin remedial deleted text end new text begin developmental new text end , noncredit course must comply with this subdivision.
Prior to taking a test, an individual must be given reasonable time and opportunity to review
materials provided by the college or university covering the material to be tested which
must include a sample test. An individual who is required to take a deleted text begin remedial deleted text end new text begin developmental new text end ,
noncredit course as a result of a test given by a college or university must be given an
opportunity to retake the test at the earliest time determined by the individual when testing
is otherwise offered. The college or university must provide an individual with study materials
for the purpose of retaking and passing the test.

Sec. 15.

Minnesota Statutes 2021 Supplement, section 136F.38, subdivision 3, is amended
to read:

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; (4) information technology; (5) early childhood; (6) transportation; deleted text begin or deleted text end (7) new text begin
construction; (8) social work; (9) law enforcement; or (10) new text end a program of study under
paragraph (b).

(b) Each institution may add one additional area of study or certification, based on a
workforce shortage for full-time employment requiring postsecondary education that is
unique to the institution's specific region, as reported in the most recent Department of
Employment and Economic Development job vacancy survey data for the economic
development region in which the institution is located. A workforce shortage area is one in
which the job vacancy rate for full-time employment in a specific occupation in a region is
higher than the state average vacancy rate for that same occupation. The institution may
change the area of study or certification based on new data once every two years.

(c) The student must be enrolled for at least nine credits in a two-year college in the
Minnesota State Colleges and Universities system to be eligible for first- and second-year
scholarships.

(d) The student is eligible for a one-year transfer scholarship if the student transfers from
a two-year college after two or more terms, and the student is enrolled for at least nine
credits in a four-year university in the Minnesota State Colleges and Universities system.

Sec. 16.

Minnesota Statutes 2020, section 137.022, subdivision 4, is amended to read:

Subd. 4.

Mineral research; scholarships.

(a) All income credited after July 1, 1992,
to the permanent university fund from royalties for mining under state mineral leases from
and after July 1, 1991, must be allocated as provided in this subdivision.

(b)(1) Beginning January 1, 2013, 50 percent of the income must be allocated according
to this paragraph. One-half of the income under this paragraph, up to deleted text begin $50,000,000 deleted text end new text begin
$100,000,000 new text end , must be credited to the mineral research account of the fund to be allocated
for the Natural Resources Research Institute-Duluth and Coleraine facilities, for mineral
and mineral-related research including mineral-related environmental research. The other
one-half of the income under this paragraph, up to $25,000,000, is credited to an endowment
for the costs of operating deleted text begin a deleted text end mining, deleted text begin metallurgical deleted text end new text begin mineral, mineral-related new text end , or deleted text begin related
engineering deleted text end new text begin science, technology, engineering, and mathematics (STEM) new text end degree deleted text begin program deleted text end new text begin
programs new text end offered through the University of Minnesota at Mesabi Range Community and
Technical College new text begin and the Swenson College of Science and Engineering at Duluth to support
workforce development and collaborations benefiting regional academics, industry, and
natural resources on the Iron Range in northeast Minnesota new text end and for scholarships for
new text begin Minnesota new text end students to attend the mining, deleted text begin metallurgical, or related engineering program deleted text end new text begin
mineral, mineral-related, or STEM programs new text end . The maximum scholarship awarded to attend
the deleted text begin mining, metallurgical, or related engineering deleted text end degree deleted text begin program deleted text end new text begin programs new text end funded under
this paragraph cannot exceed deleted text begin $6,500 deleted text end new text begin 75 percent of current in-state tuition rates new text end per academic
year and may be awarded a maximum of four academic years.

(2) The remainder of the income under paragraph (a) plus the amount of any income
under clause (1) after deleted text begin $50,000,000 deleted text end new text begin $100,000,000 new text end has been credited to the mineral research
account for the Natural Resources Research Institute and the amount of any income over
the $25,000,000 for the deleted text begin engineering program deleted text end new text begin programming in clause (1) new text end must be credited
to the endowed scholarship account of the fund for distribution annually for scholastic
achievement as provided by the Board of Regents to undergraduates enrolled at the University
of Minnesota who are resident students as defined in section 136A.101, subdivision 8.

(c) The annual distribution from the endowed scholarship account must be allocated to
the various campuses of the University of Minnesota in proportion to the number of
undergraduate resident students enrolled on each campus.

(d) The Board of Regents must report to the education committees of the legislature
biennially at the time of the submission of its budget request on the disbursement of money
from the endowed scholarship account and to the environment and natural resources
committees on the use of the mineral research account.

(e) Capital gains and losses and portfolio income of the permanent university fund must
be credited to its three accounts in proportion to the market value of each account.

(f) The endowment support from the income and capital gains of the endowed mineral
research and endowed scholarship accounts of the fund must not total more than six percent
per year of the 36-month trailing average market value of the account from which the support
is derived.

Sec. 17.

Minnesota Statutes 2020, section 137.024, is amended to read:

137.024 CONGRESSIONAL DISTRICTS REPRESENTED ON BOARD OF
REGENTS.

new text begin (a) new text end At least one member of the Board of Regents of the university shall be a resident of
each congressional district.

new text begin (b) If legislative redistricting changes the boundaries of the state's congressional districts,
sitting regents representing specific congressional districts may fulfill their elected terms
on the Board of Regents. When a seat designated for a congressional district first becomes
vacant after redistricting, the legislature shall apply current district boundaries in order to
comply with paragraph (a).
new text end

new text begin (c) If, due to congressional apportionment, the state loses a congressional district, the
regent seat designated for that district shall represent the state at large. If the state gains a
congressional district, the next vacant at-large seat that is not reserved pursuant to section
137.023 must be assigned to the new district.
new text end

Sec. 18.

Minnesota Statutes 2020, section 137.0245, subdivision 2, is amended to read:

Subd. 2.

Membership.

new text begin (a) new text end The Regent Candidate Advisory Council shall consist of deleted text begin 24 deleted text end new text begin
20 new text end members.

deleted text begin Twelve deleted text end new text begin (b) Five new text end members shall be appointed by the Subcommittee on Committees of
the Committee on Rules and Administration of the senate. deleted text begin Twelve deleted text end new text begin Five new text end members shall be
appointed by the speaker of the house. deleted text begin 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. deleted text end No more than deleted text begin one-third deleted text end new text begin two new text end of the members appointed by each appointing
authority may be current or former legislators. No more than deleted text begin two-thirds deleted text end new text begin three new text end 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.

new text begin (c) Additional members of the council shall include:
new text end

new text begin (1) one current faculty member from each of the five University of Minnesota system
campuses, each of whom shall be appointed by the faculty senate of that faculty member's
campus, or, if no campus-specific faculty senate exists, by the university system's faculty
senate; and
new text end

new text begin (2) the current student body president of each of the five University of Minnesota system
campuses, or student designees thereof.
new text end

new text begin (d) new text end Section 15.0575 shall govern the advisory council, except that deleted text begin :
deleted text end

deleted text begin (1) deleted text end the members new text begin , except for a student body president or student designee thereof, new text end shall
be appointed to six-year terms deleted text begin 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 .

new text begin (e) new text end A member may not serve more than two full terms.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment. By
September 1, 2022, the house and senate shall appoint one member to a term that expires
January 2024, two members to terms that expire January 2026, and two members to full
terms that expire January 2028. Members of the Regent Candidate Advisory Council at the
time of enactment may be reappointed, but remain subject to the two-term limit imposed
by this section.
new text end

Sec. 19.

Minnesota Statutes 2020, 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 advisory council's
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 advisory council and the other candidates nominated by the joint committee. A
candidate other than those recommended by the advisory council 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 deleted text begin no more than one candidate deleted text end new text begin up to two
candidates new text end 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. 20. new text begin OWATONNA LEARN TO EARN COALITION GRANT FUNDS REPORT.
new text end

new text begin By February 1, 2026, the Owatonna Learn to Earn Coalition must report to the
commissioner of the Office of Higher Education and to the chairs and ranking minority
members of the committees with jurisdiction over higher education on activities funded
under article 1, section 2, subdivisions 8 and 9. The report must include but is not limited
to information regarding:
new text end

new text begin (1) the impact of the grant funds on high school and technical college student enrollment
in technical education courses receiving equipment funded through the grant;
new text end

new text begin (2) the number of grant-related degrees awarded by Owatonna Riverland Community
College;
new text end

new text begin (3) the results of the Department of Employment and Economic Development grant to
conduct a needs assessment examining current and future workforce needs in the region;
and
new text end

new text begin (4) employment impacted in the area associated with the grant, including recruitment
and retention.
new text end

Sec. 21. new text begin REQUEST TO THE BOARD OF REGENTS.
new text end

new text begin The Board of Regents of the University of Minnesota is requested to amend its policies
to permit a regent to serve as a compensated university employee.
new text end

Sec. 22. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall substitute the term "developmental" for "remedial" wherever
the term refers to remedial education courses at a postsecondary institution. The revisor
shall also make grammatical changes related to the changes in terms to preserve the meaning
of the text.
new text end

Sec. 23. new text begin REPEALER.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2020, section 136F.03, new text end new text begin is repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 4880.2500, new text end new text begin is repealed.
new text end

ARTICLE 3

MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY

Section 1.

Minnesota Statutes 2020, section 136A.25, is amended to read:

136A.25 CREATION.

A state agency known as the Minnesota deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities Authority
is hereby created.

Sec. 2.

Minnesota Statutes 2020, section 136A.26, is amended to read:

136A.26 MEMBERSHIPS; OFFICERS; COMPENSATION; REMOVAL.

Subdivision 1.

Membership.

The Minnesota deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities
Authority shall consist of deleted text begin eight deleted text end new text begin nine new text end members appointed by the governor with the advice
and consent of the senate, and a representative of the deleted text begin office deleted text end new text begin Office of Higher Education new text end .

All members to be appointed by the governor shall be residents of the state. At least two
members must reside outside the metropolitan area as defined in section 473.121, subdivision
2. At least one of the members shall be a person having a favorable reputation for skill,
knowledge, and experience in the field of state and municipal finance; deleted text begin and deleted text end at least one shall
be a person having a favorable reputation for skill, knowledge, and experience in the building
construction field; deleted text begin and deleted text end at least one of the members shall be a trustee, director, officer, or
employee of an institution of higher education new text begin ; and at least one of the members shall be a
trustee, director, officer, or employee of a health care organization new text end .

Subd. 1a.

Private College Council member.

The president of the Minnesota Private
College Council, or the president's designee, shall serve without compensation as an advisory,
nonvoting member of the authority.

new text begin Subd. 1b. new text end

new text begin Nonprofit health care association member. new text end

new text begin The chief executive officer of
a Minnesota nonprofit membership association whose members are primarily nonprofit
health care organizations, or the chief executive officer's designee, shall serve without
compensation as an advisory, nonvoting member of the authority. The identity of the
Minnesota nonprofit membership association shall be determined and may be changed from
time to time by the members of the authority in accordance with and as shall be provided
in the bylaws of the authority.
new text end

Subd. 2.

Term; compensation; removal.

The membership terms, compensation, removal
of members, and filling of vacancies for authority members other than the representative
of the office, deleted text begin and deleted text end the president of the Private College Council, new text begin or the chief executive officer
of the Minnesota nonprofit membership association described in subdivision 1b new text end shall be as
provided in section 15.0575.

Sec. 3.

Minnesota Statutes 2020, section 136A.27, is amended to read:

136A.27 POLICY.

It is hereby declared that for the benefit of the people of the state, the increase of their
commerce, welfare and prosperity and the improvement of their health and living conditions
it is essential that new text begin health care organizations within the state be provided with appropriate
additional means to establish, acquire, construct, improve, and expand health care facilities
in furtherance of their purposes; that new text end this and future generations of youth be given the fullest
opportunity to learn and to develop their intellectual and mental capacities; deleted text begin that it is essential deleted text end
that institutions of higher education within the state be provided with appropriate additional
means to assist such youth in achieving the required levels of learning and development of
their intellectual and mental capacities new text begin ; new text end and new text begin that health care organizations and institutions
of higher education new text end be enabled to refinance outstanding indebtedness incurred to provide
existing facilities used for such purposes in order to preserve and enhance the utilization of
facilities for purposes of new text begin health care and new text end higher education, to extend or adjust maturities in
relation to the resources available for their payment, and to save interest costs and thereby
reduce new text begin health care costs or higher education new text end tuition, fees new text begin , new text end and charges deleted text begin ; and deleted text end new text begin . It is hereby
further declared new text end that it is the purpose of sections 136A.25 to 136A.42 to provide a measure
of assistance and an alternative method to enable new text begin health care organizations and new text end institutions
of higher education in the state to provide the facilities and structures which are sorely
needed to accomplish the purposes of sections 136A.25 to 136A.42, all to the public benefit
and good, to the extent and manner provided herein.

Sec. 4.

Minnesota Statutes 2020, section 136A.28, is amended to read:

136A.28 DEFINITIONS.

Subdivision 1.

Scope.

In sections 136A.25 to 136A.42, the following words and terms
shall, unless the context otherwise requires, have the meanings ascribed to them.

new text begin Subd. 1a. new text end

new text begin Affiliate. new text end

new text begin "Affiliate" means an entity that directly or indirectly controls, is
controlled by, or is under common control with, another entity. For the purposes of this
subdivision, "control" means either the power to elect a majority of the members of the
governing body of an entity or the power, whether by contract or otherwise, to direct the
management and policies of the entity. Affiliate also means an entity whose business or
substantially all of whose property is operated under a lease, management agreement, or
operating agreement by another entity, or an entity who operates the business or substantially
all of the property of another entity under a lease, management agreement, or operating
agreement.
new text end

Subd. 2.

Authority.

"Authority" means the deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities
Authority created by sections 136A.25 to 136A.42.

Subd. 3.

Project.

"Project" means deleted text begin a structure or structures available for use as a dormitory
or other student housing facility, a dining hall, student union, administration building,
academic building, library, laboratory, research facility, classroom, athletic facility, health
care facility, child care facility, and maintenance, storage, or utility facility and other
structures or facilities related thereto or required or useful for the instruction of students or
the conducting of research or the operation of an institution of higher education, whether
proposed, under construction, or completed, including parking and other facilities or
structures essential or convenient for the orderly conduct of such institution for higher
education, and shall also include landscaping, site preparation, furniture, equipment and
machinery, and other similar items necessary or convenient for the operation of a particular
facility or structure in the manner for which its use is intended but shall not include such
items as books, fuel, supplies, or other items the costs of which are customarily deemed to
result in a current operating charge, and shall deleted text end new text begin a health care facility or an education facility
whether proposed, under construction, or completed, and includes land or interests in land,
appurtenances, site preparation, landscaping, buildings and structures, systems, fixtures,
furniture, machinery, equipment, and parking. Project also includes other structures, facilities,
improvements, machinery, equipment, and means of transport of a capital nature that are
necessary or convenient for the operation of the facility. Project does new text end not include new text begin : (1) new text end any
facility used or to be used for sectarian instruction or as a place of religious worship deleted text begin nor deleted text end new text begin ;
(2) new text end any facility which is used or to be used primarily in connection with any part of the
program of a school or department of divinity for any religious denomination new text begin ; nor (3) any
books, supplies, medicine, medical supplies, fuel, or other items, the cost of which are
customarily deemed to result in a current operating charge new text end .

Subd. 4.

Cost.

"Cost," as applied to a project or any portion thereof financed under the
provisions of sections 136A.25 to 136A.42, means all or any part of the cost of construction,
acquisition, alteration, enlargement, reconstruction and remodeling of a project including
all lands, structures, real or personal property, rights, rights-of-way, franchises, easements
and interests acquired or used for or in connection with a project, the cost of demolishing
or removing any buildings or structures on land so acquired, including the cost of acquiring
any lands to which deleted text begin such deleted text end buildings or structures may be moved, the cost of all machinery
and equipment, financing charges, interest prior to, during and for a period after completion
of such construction and acquisition, provisions for reserves for principal and interest and
for extensions, enlargements, additions and improvements, the cost of architectural,
engineering, financial and legal services, plans, specifications, studies, surveys, estimates
of cost and of revenues, administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing the project and such other
expenses as may be necessary or incident to the construction and acquisition of the project,
the financing of such construction and acquisition and the placing of the project in operation.

Subd. 5.

Bonds.

"Bonds," or "revenue bonds" means revenue bonds of the authority
issued under the provisions of sections 136A.25 to 136A.42, including revenue refunding
bonds, notwithstanding that the same may be secured by mortgage or the full faith and credit
of a participating institution deleted text begin for higher education deleted text end or any other lawfully pledged security of
a participating institution deleted text begin for higher education deleted text end .

Subd. 6.

Institution of higher education.

"Institution of higher education" means a
nonprofit educational institution within the state authorized to provide a program of education
beyond the high school level.

new text begin Subd. 6a. new text end

new text begin Health care organization. new text end

new text begin (a) "Health care organization" means a nonprofit
organization located within the state and authorized by law to operate a nonprofit health
care facility in the state. Health care organization also means a nonprofit affiliate of a health
care organization as defined under this paragraph, provided the affiliate is located within
the state or within a state that is geographically contiguous to Minnesota.
new text end

new text begin (b) Health care organization also means a nonprofit organization located within another
state that is geographically contiguous to Minnesota and authorized by law to operate a
nonprofit health care facility in that state, provided that the nonprofit organization located
within the contiguous state is an affiliate of a health care organization located within the
state.
new text end

new text begin Subd. 6b. new text end

new text begin Education facility. new text end

new text begin "Education facility" means a structure or structures
available for use as a dormitory or other student housing facility, dining hall, student union,
administration building, academic building, library, laboratory, research facility, classroom,
athletic facility, student health care facility, or child care facility, and includes other facilities
or structures related thereto essential or convenient for the orderly conduct of an institution
of higher education.
new text end

new text begin Subd. 6c. new text end

new text begin Health care facility. new text end

new text begin (a) "Health care facility" means a structure or structures
available for use within this state as a hospital, clinic, psychiatric residential treatment
facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
medical office building, residence for nurses or interns, nursing home, boarding care home,
assisted living facility, residential hospice, intermediate care facility for persons with
developmental disabilities, supervised living facility, housing with services establishment,
board and lodging establishment with special services, adult day care center, day services
facility, prescribed pediatric extended care facility, community residential setting, adult
foster home, or other facility related to medical or health care research, or the delivery or
administration of health care services, and includes other structures or facilities related
thereto essential or convenient for the orderly conduct of a health care organization.
new text end

new text begin (b) Health care facility also means a facility in a state that is geographically contiguous
to Minnesota operated by a health care organization that corresponds by purpose, function,
or use with a facility listed in paragraph (a).
new text end

Subd. 7.

Participating institution deleted text begin of higher education deleted text end .

"Participating institution deleted text begin of
higher education deleted text end " means new text begin a health care organization or new text end an institution of higher education
that, under the provisions of sections 136A.25 to 136A.42, undertakes the financing and
construction or acquisition of a project or undertakes the refunding or refinancing of
obligations or of a mortgage or of advances as provided in sections 136A.25 to 136A.42.
Community colleges and technical colleges may be considered participating institutions deleted text begin of
higher education deleted text end for the purpose of financing and constructing child care facilities and
parking facilities.

Sec. 5.

Minnesota Statutes 2020, section 136A.29, subdivision 1, is amended to read:

Subdivision 1.

Purpose.

The purpose of the authority shall be to assist new text begin health care
organizations and new text end institutions of higher education in the construction, financing, and
refinancing of projects. The exercise by the authority of the powers conferred by sections
136A.25 to 136A.42, shall be deemed and held to be the performance of an essential public
function. For the purpose of sections 136A.25 to 136A.42, the authority shall have the
powers and duties set forth in subdivisions 2 to 23.

Sec. 6.

Minnesota Statutes 2020, section 136A.29, subdivision 3, is amended to read:

Subd. 3.

Employees.

The authority is authorized and empowered to appoint and employ
employees as it may deem necessary to carry out its duties, determine the title of the
employees so employed, and fix the salary of deleted text begin said deleted text end new text begin its new text end employees. Employees of the authority
shall participate in retirement and other benefits in the same manner that employees in the
deleted text begin unclassified service of the office deleted text end new text begin managerial plan under section 43A.18, subdivision 3, new text end
participate.

Sec. 7.

Minnesota Statutes 2020, section 136A.29, subdivision 6, is amended to read:

Subd. 6.

Projects; generally.

new text begin (a) new text end The authority is authorized and empowered to determine
the location and character of any project to be financed under the provisions of sections
136A.25 to 136A.42, and to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, to enter into
contracts for any or all of such purposes, to enter into contracts for the management and
operation of a project, and to designate a participating institution deleted text begin of higher education deleted text end as its
agent to determine the location and character of a project undertaken by such participating
institution deleted text begin of higher education deleted text end under the provisions of sections 136A.25 to 136A.42 and as
the agent of the authority, to construct, reconstruct, remodel, maintain, manage, enlarge,
alter, add to, repair, operate, lease, as lessee or lessor, and regulate the same, and as the
agent of the authority, to enter into contracts for any or all of such purposes, including
contracts for the management and operation of such project.

new text begin (b) Notwithstanding paragraph (a), a project involving a health care facility within the
state financed under sections 136A.25 to 136A.42, must comply with all applicable
requirements in state law related to authorizing construction of or modifications to a health
care facility, including the requirements of sections 144.5509, 144.551, 144A.071, and
252.291.
new text end

new text begin (c) new text end Contracts of the authority or of a participating institution deleted text begin of higher education deleted text end to
acquire or to construct, reconstruct, remodel, maintain, enlarge, alter, add to, or repair
projects shall not be subject to the provisions of chapter 16C or section 574.26, or any other
public contract or competitive bid law.

Sec. 8.

Minnesota Statutes 2020, section 136A.29, subdivision 9, is amended to read:

Subd. 9.

Revenue bonds; limit.

new text begin (a) new text end The authority is authorized and empowered to issue
revenue bonds whose aggregate principal amount at any time shall not exceed deleted text begin $1,300,000,000 deleted text end new text begin
$4,000,000,000 new text end and to issue notes, bond anticipation notes, and revenue refunding bonds
of the authority under the provisions of sections 136A.25 to 136A.42, to provide funds for
acquiring, constructing, reconstructing, enlarging, remodeling, renovating, improving,
furnishing, or equipping one or more projects or parts thereof.

new text begin (b) Of the $4,000,000,000 limit in paragraph (a), the aggregate principal amount used
to fund education facilities may not exceed $1,750,000,000 at any time, and the aggregate
principal amount used to fund health care facilities may not exceed $2,250,000,000 at any
time.
new text end

Sec. 9.

Minnesota Statutes 2020, section 136A.29, subdivision 10, is amended to read:

Subd. 10.

Revenue bonds; issuance, purpose, conditions.

The authority is authorized
and empowered to issue revenue bonds to acquire projects from or to make loans to
participating institutions deleted text begin of higher education deleted text end and thereby refinance outstanding indebtedness
incurred by participating institutions deleted text begin of higher education deleted text end to provide funds for the acquisition,
construction or improvement of a facility before or after the enactment of sections 136A.25
to 136A.42, but otherwise eligible to be and being a project thereunder, whenever the
authority finds that such refinancing will enhance or preserve such participating institutions
and such facilities or utilization thereof for new text begin health care or new text end educational purposes or extend
or adjust maturities to correspond to the resources available for their payment, or reduce
new text begin charges or fees imposed on patients or occupants, or new text end the tuition, charges new text begin , new text end or fees imposed
on students for the use new text begin or occupancy new text end of the facilities of such participating institutions deleted text begin of
higher education deleted text end or costs met by federal or state public funds, or enhance or preserve new text begin health
care or new text end educational programs and research or the acquisition or improvement of other
facilities eligible to be a project or part thereof by the participating institution deleted text begin of higher
education deleted text end . The amount of revenue bonds to be issued to refinance outstanding indebtedness
of a participating institution deleted text begin of higher education deleted text end shall not exceed the lesser of (a) the fair
value of the project to be acquired by the authority from the institution or mortgaged to the
authority by the institution or (b) the amount of the outstanding indebtedness including any
premium thereon and any interest accrued or to accrue to the date of redemption and any
legal, fiscal and related costs in connection with such refinancing and reasonable reserves,
as determined by the authority. The provisions of this subdivision do not prohibit the authority
from issuing revenue bonds within and charged against the limitations provided in subdivision
9 to provide funds for improvements, alteration, renovation, or extension of the project
refinanced.

Sec. 10.

Minnesota Statutes 2020, section 136A.29, subdivision 14, is amended to read:

Subd. 14.

Rules for use of projects.

The authority is authorized and empowered to
establish rules for the use of a project or any portion thereof and to designate a participating
institution deleted text begin of higher education deleted text end as its agent to establish rules for the use of a project undertaken
for such participating institution deleted text begin of higher education deleted text end .

Sec. 11.

Minnesota Statutes 2020, section 136A.29, subdivision 19, is amended to read:

Subd. 19.

Surety.

Before the issuance of any revenue bonds under the provisions of
sections 136A.25 to 136A.42, any member or officer of the authority authorized by resolution
of the authority to handle funds or sign checks of the authority shall be covered under a
surety or fidelity bond in an amount to be determined by the authority. Each such bond shall
be conditioned upon the faithful performance of the duties of the office of the member or
officer, new text begin and new text end shall be executed by a surety company authorized to transact business in the
state of Minnesota as surety. The cost of each such bond shall be paid by the authority.

Sec. 12.

Minnesota Statutes 2020, section 136A.29, subdivision 20, is amended to read:

Subd. 20.

Sale, lease, and disposal of property.

The authority is authorized and
empowered to sell, lease, release new text begin , new text end or otherwise dispose of real and personal property or
interests therein, or a combination thereof, acquired by the authority under authority of
sections 136A.25 to 136A.42 and no longer needed for the purposes of deleted text begin such deleted text end new text begin this new text end chapter or
of the authority, and grant such easements and other rights in, over, under, or across a project
as will not interfere with its use of deleted text begin such deleted text end new text begin the new text end property. deleted text begin Such deleted text end new text begin The new text end sale, lease, release,
disposition, or grant may be made without competitive bidding and in deleted text begin such deleted text end new text begin the new text end manner new text begin and new text end
for such consideration as the authority in its judgment deems appropriate.

Sec. 13.

Minnesota Statutes 2020, section 136A.29, subdivision 21, is amended to read:

Subd. 21.

Loans.

The authority is authorized and empowered to make loans to any
participating institution deleted text begin of higher education deleted text end for the cost of a project in accordance with an
agreement between the authority and the participating institution deleted text begin of higher education deleted text end ;
provided that no deleted text begin such deleted text end loan shall exceed the total cost of the project as determined by the
participating institution deleted text begin of higher education deleted text end and approved by the authority.

Sec. 14.

Minnesota Statutes 2020, section 136A.29, subdivision 22, is amended to read:

Subd. 22.

Costs, expenses, and other charges.

The authority is authorized and
empowered to charge to and apportion among participating institutions deleted text begin of higher education deleted text end
its administrative costs and expenses incurred in the exercise of the powers and duties
conferred by sections 136A.25 to 136A.42 new text begin in the manner as the authority in its judgment
deems appropriate new text end .

Sec. 15.

Minnesota Statutes 2020, section 136A.29, is amended by adding a subdivision
to read:

new text begin Subd. 24. new text end

new text begin Determination of affiliate status. new text end

new text begin The authority is authorized and empowered
to determine whether an entity is an affiliate as defined in section 136A.28, subdivision 1a.
A determination by the authority of affiliate status shall be deemed conclusive for the
purposes of sections 136A.25 to 136A.42.
new text end

Sec. 16.

Minnesota Statutes 2020, section 136A.32, subdivision 1, is amended to read:

Subdivision 1.

Bonds; generally.

new text begin (a) new text end The authority may from time to time issue revenue
bonds for purposes of sections 136A.25 to 136A.42, and all such revenue bonds, notes,
bond anticipation notes or other obligations of the authority issued pursuant to sections
136A.25 to 136A.42 shall be and are hereby declared to be negotiable for all purposes
notwithstanding their payment from a limited source and without regard to any other law
or laws. In anticipation of the sale of such revenue bonds, the authority may issue negotiable
bond anticipation notes and may renew the same from time to time, but the maximum
maturity of any such note, including renewals thereof, shall not exceed five years from the
date of issue of the original note. Such notes shall be paid from any revenues of the authority
available therefor and not otherwise pledged, or from the proceeds of sale of the revenue
bonds of the authority in anticipation of which they were issued. The notes shall be issued
in the same manner as the revenue bonds. Such notes and the resolution or resolutions
authorizing the same may contain any provisions, conditions or limitations which a bond
resolution or the authority may contain.

new text begin (b) Before issuing revenue bonds, notes, or other obligations under paragraph (a) on
behalf of a health care organization to finance health care facilities, the authority must obtain
consent by resolution from each city or town in which the project is located, except that
consent need not be obtained in the case of a city or town with a population of less than
100,000. The consent by resolution requirement does not apply to financing under paragraph
(a) on behalf of a participating institution which is primarily an institution of higher
education.
new text end

Sec. 17.

Minnesota Statutes 2020, section 136A.32, subdivision 4, is amended to read:

Subd. 4.

Provisions of resolution authorizing bonds.

Any resolution or resolutions
authorizing any revenue bonds or any issue of revenue bonds may contain provisions, which
shall be a part of the contract with the holders of the revenue bonds to be authorized, as to:

(1) pledging all or any part of the revenues of a project or projects, any revenue producing
contract or contracts made by the authority with deleted text begin any individual partnership, corporation or
association or other body deleted text end new text begin one or more partnerships, corporations or associations, or other
bodies new text end , public or private, to secure the payment of the revenue bonds or of any particular
issue of revenue bonds, subject to such agreements with bondholders as may then exist;

(2) the rentals, fees and other charges to be charged, and the amounts to be raised in
each year thereby, and the use and disposition of the revenues;

(3) the setting aside of reserves or sinking funds, and the regulation and disposition
thereof;

(4) limitations on the right of the authority or its agent to restrict and regulate the use of
the project;

(5) limitations on the purpose to which the proceeds of sale of any issue of revenue
bonds then or thereafter to be issued may be applied and pledging such proceeds to secure
the payment of the revenue bonds or any issue of the revenue bonds;

(6) limitations on the issuance of additional bonds, the terms upon which additional
bonds may be issued and secured and the refunding of outstanding bonds;

(7) the procedure, if any, by which the terms of any contract with bondholders may be
amended or abrogated, the amount of bonds the holders of which must consent thereto, and
the manner in which such consent may be given;

(8) limitations on the amount of moneys derived from the project to be expended for
operating, administrative or other expenses of the authority;

(9) defining the acts or omissions to act which shall constitute a default in the duties of
the authority to holders of its obligations and providing the rights and remedies of such
holders in the event of a default; new text begin or
new text end

(10) the mortgaging of a project and the site thereof for the purpose of securing the
bondholders.

Sec. 18.

Minnesota Statutes 2020, section 136A.33, is amended to read:

136A.33 TRUST AGREEMENT.

In the discretion of the authority any revenue bonds issued under the provisions of
sections 136A.25 to 136A.42, may be secured by a trust agreement by and between the
authority and a corporate trustee or trustees, which may be any trust company or bank having
the powers of a trust company within the state. deleted text begin Such deleted text end new text begin The new text end trust agreement or the resolution
providing for the issuance of deleted text begin such deleted text end revenue bonds may pledge or assign the revenues to be
received or proceeds of any contract or contracts pledged and may convey or mortgage the
project or any portion thereof. deleted text begin Such deleted text end new text begin The new text end trust agreement or resolution providing for the
issuance of deleted text begin such deleted text end revenue bonds may contain such provisions for protecting and enforcing
the rights and remedies of the bondholders as may be reasonable and proper and not in
violation of laws, including particularly such provisions as have hereinabove been specifically
authorized to be included in any resolution or resolutions of the authority authorizing revenue
bonds thereof. Any bank or trust company incorporated under the laws of the state deleted text begin which deleted text end new text begin
that new text end may act as depository of the proceeds of bonds or of revenues or other moneys may
furnish deleted text begin such deleted text end indemnifying bonds or deleted text begin pledges such deleted text end new text begin pledge new text end securities as may be required by
the authority. Any deleted text begin such deleted text end trust agreement may set forth the rights and remedies of the
bondholders and of the trustee or trustees and may restrict the individual right of action by
bondholders. In addition to the foregoing, any deleted text begin such deleted text end trust agreement or resolution may contain
deleted text begin such deleted text end other provisions as the authority may deem reasonable and proper for the security of
the bondholders. All expenses incurred in carrying out the provisions of deleted text begin such deleted text end new text begin the new text end trust
agreement or resolution may be treated as a part of the cost of the operation of a project.

Sec. 19.

Minnesota Statutes 2020, section 136A.34, subdivision 3, is amended to read:

Subd. 3.

Investment.

Any deleted text begin such deleted text end escrowed proceeds, pending such use, may be invested
and reinvested in direct obligations of the United States of America, or in certificates of
deposit or time deposits secured by direct obligations of the United States of America, new text begin or
in shares or units in any money market mutual fund whose investment portfolio consists
solely of direct obligations of the United States of America, new text end maturing at such time or times
as shall be appropriate to assure the prompt payment, as to principal, interest and redemption
premium, if any, of the outstanding revenue bonds to be so refunded. The interest, income
and profits, if any, earned or realized on any such investment may also be applied to the
payment of the outstanding revenue bonds to be so refunded. After the terms of the escrow
have been fully satisfied and carried out, any balance of such proceeds and interest, income
and profits, if any, earned or realized on the investments thereof may be returned to the
authority for use by it in any lawful manner.

Sec. 20.

Minnesota Statutes 2020, section 136A.34, subdivision 4, is amended to read:

Subd. 4.

Additional purpose; improvements.

The portion of the proceeds of any deleted text begin such deleted text end
revenue bonds issued for the additional purpose of paying all or any part of the cost of
constructing and acquiring additions, improvements, extensions or enlargements of a project
may be invested or deposited deleted text begin in time deposits deleted text end as provided in section 136A.32, subdivision
7.

Sec. 21.

Minnesota Statutes 2020, section 136A.36, is amended to read:

136A.36 REVENUES.

The authority may fix, revise, charge and collect rates, rents, fees and charges for the
use of and for the services furnished or to be furnished by each project and deleted text begin to deleted text end new text begin may new text end contract
with any person, partnership, association or corporation, or other body, public or private,
in respect thereof. deleted text begin Such deleted text end new text begin The new text end rates, rents, fees new text begin , new text end and charges new text begin may vary between projects
involving an education facility and projects involving a health care facility and new text end shall be
fixed and adjusted in respect of the aggregate of rates, rents, fees new text begin , new text end and charges from deleted text begin such deleted text end new text begin
the new text end project so as to provide funds sufficient with other revenues, if any:

(1) to pay the cost of maintaining, repairing and operating the project and each and every
portion thereof, to the extent that the payment of such cost has not otherwise been adequately
provided for;

(2) to pay the principal of and the interest on outstanding revenue bonds of the authority
issued in respect of such project as the same shall become due and payable; and

(3) to create and maintain reserves required or provided for in any resolution authorizing,
or trust agreement securing, deleted text begin such deleted text end revenue bonds of the authority. deleted text begin Such deleted text end new text begin The new text end rates, rents, fees
and charges shall not be subject to supervision or regulation by any department, commission,
board, body, bureau or agency of this state other than the authority. A sufficient amount of
the revenues derived in respect of a project, except deleted text begin such deleted text end part of deleted text begin such deleted text end new text begin the new text end revenues as may
be necessary to pay the cost of maintenance, repair and operation and to provide reserves
and for renewals, replacements, extensions, enlargements and improvements as may be
provided for in the resolution authorizing the issuance of any revenue bonds of the authority
or in the trust agreement securing the same, shall be set aside at such regular intervals as
may be provided in deleted text begin such deleted text end new text begin the new text end resolution or trust agreement in a sinking or other similar fund
deleted text begin which deleted text end new text begin that new text end is hereby pledged to, and charged with, the payment of the principal of and the
interest on deleted text begin such deleted text end revenue bonds as the same shall become due, and the redemption price or
the purchase price of bonds retired by call or purchase as therein provided. deleted text begin Such deleted text end new text begin The new text end pledge
shall be valid and binding from the time when the pledge is made; the rates, rents, fees and
charges and other revenues or other moneys so pledged and thereafter received by the
authority shall immediately be subject to the lien of deleted text begin such deleted text end new text begin the new text end pledge without physical delivery
thereof or further act, and the lien of any such pledge shall be valid and binding as against
all parties having claims of any kind against the authority, irrespective of whether such
parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge
is created need be filed or recorded except in the records of the authority. The use and
disposition of moneys to the credit of such sinking or other similar fund shall be subject to
the provisions of the resolution authorizing the issuance of such bonds or of such trust
agreement. Except as may otherwise be provided in deleted text begin such deleted text end new text begin the new text end resolution or deleted text begin such deleted text end trust
agreement, deleted text begin such deleted text end new text begin the new text end sinking or other similar fund shall be a fund for all deleted text begin such deleted text end revenue bonds
issued to finance a project or projects at one or more participating institutions deleted text begin of higher
education deleted text end without distinction or priority of one over another; provided the authority in any
such resolution or trust agreement may provide that such sinking or other similar fund shall
be the fund for a particular project at deleted text begin an deleted text end new text begin a participating new text end institution deleted text begin of higher education deleted text end and
for the revenue bonds issued to finance a particular project and may, additionally, permit
and provide for the issuance of revenue bonds having a subordinate lien in respect of the
security herein authorized to other revenue bonds of the authority and, in such case, the
authority may create separate or other similar funds in respect of deleted text begin such deleted text end new text begin the new text end subordinate lien
bonds.

Sec. 22.

Minnesota Statutes 2020, section 136A.38, is amended to read:

136A.38 BONDS ELIGIBLE FOR INVESTMENT.

Bonds issued by new text begin the new text end authority under the provisions of sections 136A.25 to 136A.42, are
hereby made securities in which all public officers and public bodies of the state and its
political subdivisions, all insurance companies, trust companies, banking associations,
investment companies, executors, administrators, trustees and other fiduciaries may properly
and legally invest funds, including capital in their control or belonging to them; it being the
purpose of this section to authorize the investment in such bonds of all sinking, insurance,
retirement, compensation, pension and trust funds, whether owned or controlled by private
or public persons or officers; provided, however, that nothing contained in this section may
be construed as relieving any person, firm, or corporation from any duty of exercising due
care in selecting securities for purchase or investment; and provide further, that in no event
shall assets of pension funds of public employees of the state of Minnesota or any of its
agencies, boards or subdivisions, whether publicly or privately administered, be invested
in bonds issued under the provisions of sections 136A.25 to 136A.42. Such bonds are hereby
constituted "authorized securities" within the meaning and for the purposes of Minnesota
Statutes 1969, section 50.14. deleted text begin Such deleted text end new text begin The new text end bonds are hereby made securities deleted text begin which deleted text end new text begin that new text end may
properly and legally be deposited with and received by any state or municipal officer or any
agency or political subdivision of the state for any purpose for which the deposit of bonds
or obligations of the state now or may hereafter be authorized by law.

Sec. 23.

Minnesota Statutes 2020, section 136A.41, is amended to read:

136A.41 CONFLICT OF INTEREST.

Notwithstanding any other law to the contrary it shall not be or constitute a conflict of
interest for a trustee, director, officer or employee of any participating institution deleted text begin of higher
education deleted text end , financial institution, investment banking firm, brokerage firm, commercial bank
or trust company, architecture firm, insurance company, construction company, or any other
firm, person or corporation to serve as a member of the authority, provided such trustee,
director, officer or employee shall abstain from deliberation, action and vote by the authority
in each instance where the business affiliation of any such trustee, director, officer or
employee is involved.

Sec. 24.

Minnesota Statutes 2020, section 136A.42, is amended to read:

136A.42 ANNUAL REPORT.

The authority shall keep an accurate account of all of its activities and all of its receipts
and expenditures deleted text begin and shall annually report to the office deleted text end . new text begin Each year, the authority shall submit
to the Minnesota Historical Society and the Legislative Reference Library a report of the
authority's activities in the previous year, including all financial activities.
new text end

Sec. 25. new text begin REVISOR INSTRUCTION.
new text end

new text begin The revisor of statutes shall renumber the law establishing and governing the Minnesota
Higher Education Facilities Authority, renamed the Minnesota Health and Education
Facilities Authority in this act, as Minnesota Statutes, chapter 16F, coded in Minnesota
Statutes 2020, sections 136A.25 to 136A.42, as amended or repealed in this act. The revisor
of statutes shall also duplicate any required definitions from Minnesota Statutes, chapter
136A, revise any statutory cross-references consistent with the recoding, and report the
history in Minnesota Statutes, chapter 16F. The revisor of statutes shall change "Minnesota
Health and Education Facilities Authority" to "Minnesota Health and Higher Education
Facilities Authority" where it appears in Minnesota Statutes.
new text end

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

new text begin Minnesota Statutes 2020, section 136A.29, subdivision 4, new text end new text begin is repealed.
new text end

ARTICLE 4

MINNESOTA HEALTH AND EDUCATION FACILITIES AUTHORITY
CONFORMING AMENDMENTS

Section 1.

Minnesota Statutes 2020, section 3.732, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section and section 3.736 the terms defined
in this section have the meanings given them.

(1) "State" includes each of the departments, boards, agencies, commissions, courts, and
officers in the executive, legislative, and judicial branches of the state of Minnesota and
includes but is not limited to the Housing Finance Agency, the Minnesota Office of Higher
Education, the deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities Authority, the Health Technology
Advisory Committee, the Armory Building Commission, the Zoological Board, the
Department of Iron Range Resources and Rehabilitation, the Minnesota Historical Society,
the State Agricultural Society, the University of Minnesota, the Minnesota State Colleges
and Universities, state hospitals, and state penal institutions. It does not include a city, town,
county, school district, or other local governmental body corporate and politic.

(2) "Employee of the state" means all present or former officers, members, directors, or
employees of the state, members of the Minnesota National Guard, members of a bomb
disposal unit approved by the commissioner of public safety and employed by a municipality
defined in section 466.01 when engaged in the disposal or neutralization of bombs or other
similar hazardous explosives, as defined in section 299C.063, outside the jurisdiction of the
municipality but within the state, or persons acting on behalf of the state in an official
capacity, temporarily or permanently, with or without compensation. It does not include
either an independent contractor except, for purposes of this section and section 3.736 only,
a guardian ad litem acting under court appointment, or members of the Minnesota National
Guard while engaged in training or duty under United States Code, title 10, or title 32,
section 316, 502, 503, 504, or 505, as amended through December 31, 1983. Notwithstanding
sections 43A.02 and 611.263, for purposes of this section and section 3.736 only, "employee
of the state" includes a district public defender or assistant district public defender in the
Second or Fourth Judicial District, a member of the Health Technology Advisory Committee,
and any officer, agent, or employee of the state of Wisconsin performing work for the state
of Minnesota pursuant to a joint state initiative.

(3) "Scope of office or employment" means that the employee was acting on behalf of
the state in the performance of duties or tasks lawfully assigned by competent authority.

(4) "Judicial branch" has the meaning given in section 43A.02, subdivision 25.

Sec. 2.

Minnesota Statutes 2021 Supplement, section 10A.01, subdivision 35, is amended
to read:

Subd. 35.

Public official.

"Public official" means any:

(1) member of the legislature;

(2) individual employed by the legislature as secretary of the senate, legislative auditor,
director of the Legislative Budget Office, chief clerk of the house of representatives, revisor
of statutes, or researcher, legislative analyst, fiscal analyst, or attorney in the Office of
Senate Counsel, Research and Fiscal Analysis, House Research, or the House Fiscal Analysis
Department;

(3) constitutional officer in the executive branch and the officer's chief administrative
deputy;

(4) solicitor general or deputy, assistant, or special assistant attorney general;

(5) commissioner, deputy commissioner, or assistant commissioner of any state
department or agency as listed in section 15.01 or 15.06, or the state chief information
officer;

(6) member, chief administrative officer, or deputy chief administrative officer of a state
board or commission that has either the power to adopt, amend, or repeal rules under chapter
14, or the power to adjudicate contested cases or appeals under chapter 14;

(7) individual employed in the executive branch who is authorized to adopt, amend, or
repeal rules under chapter 14 or adjudicate contested cases under chapter 14;

(8) executive director of the State Board of Investment;

(9) deputy of any official listed in clauses (7) and (8);

(10) judge of the Workers' Compensation Court of Appeals;

(11) administrative law judge or compensation judge in the State Office of Administrative
Hearings or unemployment law judge in the Department of Employment and Economic
Development;

(12) member, regional administrator, division director, general counsel, or operations
manager of the Metropolitan Council;

(13) member or chief administrator of a metropolitan agency;

(14) director of the Division of Alcohol and Gambling Enforcement in the Department
of Public Safety;

(15) member or executive director of the deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities
Authority;

(16) member of the board of directors or president of Enterprise Minnesota, Inc.;

(17) member of the board of directors or executive director of the Minnesota State High
School League;

(18) member of the Minnesota Ballpark Authority established in section 473.755;

(19) citizen member of the Legislative-Citizen Commission on Minnesota Resources;

(20) manager of a watershed district, or member of a watershed management organization
as defined under section 103B.205, subdivision 13;

(21) supervisor of a soil and water conservation district;

(22) director of Explore Minnesota Tourism;

(23) citizen member of the Lessard-Sams Outdoor Heritage Council established in section
97A.056;

(24) citizen member of the Clean Water Council established in section 114D.30;

(25) member or chief executive of the Minnesota Sports Facilities Authority established
in section 473J.07;

(26) district court judge, appeals court judge, or supreme court justice;

(27) county commissioner;

(28) member of the Greater Minnesota Regional Parks and Trails Commission;

(29) member of the Destination Medical Center Corporation established in section
469.41; or

(30) chancellor or member of the Board of Trustees of the Minnesota State Colleges
and Universities.

Sec. 3.

Minnesota Statutes 2020, section 136F.67, subdivision 1, is amended to read:

Subdivision 1.

Authorization.

A technical college or a community college must not
seek financing for child care facilities or parking facilities through the deleted text begin Higher deleted text end new text begin Health and new text end
Education Facilities Authority, as provided in section 136A.28, subdivision 7, without the
explicit authorization of the board.

Sec. 4.

Minnesota Statutes 2020, section 354B.20, subdivision 7, is amended to read:

Subd. 7.

Employing unit.

"Employing unit," if the agency employs any persons covered
by the individual retirement account plan under section 354B.211, means:

(1) the board;

(2) the Minnesota Office of Higher Education; and

(3) the deleted text begin Higher deleted text end new text begin Health and new text end Education Facilities Authority."

Delete the title and insert:

"A bill for an act
relating to higher education; providing for supplemental funding and modifying
policies for the Office of Higher Education, Minnesota State Colleges and
Universities, and the University of Minnesota; creating and modifying certain
student aid programs; creating and modifying certain grants to institutions;
modifying certain institutional licensure provisions; creating the Inclusive Higher
Education Technical Assistance Center; modifying Board of Regents provisions;
expanding and renaming the Minnesota Higher Education Facilities Authority as
the Minnesota Health and Higher Education Facilities Authority; requiring reports;
appropriating money; amending Minnesota Statutes 2020, sections 3.732,
subdivision 1; 135A.15, subdivision 8, by adding a subdivision; 136A.121,
subdivision 18; 136A.1701, subdivision 11; 136A.25; 136A.26; 136A.27; 136A.28;
136A.29, subdivisions 1, 3, 6, 9, 10, 14, 19, 20, 21, 22, by adding a subdivision;
136A.32, subdivisions 1, 4; 136A.33; 136A.34, subdivisions 3, 4; 136A.36;
136A.38; 136A.41; 136A.42; 136A.833; 136F.02, subdivision 1; 136F.302,
subdivisions 1, 2; 136F.67, subdivision 1; 137.022, subdivision 4; 137.024;
137.0245, subdivision 2; 137.0246; 354B.20, subdivision 7; Minnesota Statutes
2021 Supplement, sections 10A.01, subdivision 35; 135A.137, subdivision 3;
136A.121, subdivision 6; 136A.91, subdivision 1; 136F.38, subdivision 3; Laws
2021, First Special Session chapter 2, article 1, section 2, subdivisions 35, 36;
proposing coding for new law in Minnesota Statutes, chapters 135A; 136A;
repealing Minnesota Statutes 2020, sections 136A.29, subdivision 4; 136F.03;
Minnesota Rules, part 4880.2500."

We request the adoption of this report and repassage of the bill.
House Conferees: .
.		.
Connie Bernardy		Michelle (Shelly) Christensen
.		.
Ginny Klevorn		Heather Keeler
.
Marion O'Neill
Senate Conferees: .
.		.
David Tomassoni		Jason Rarick
.		.
John Jasinski		Karin Housley
.
Gregory Clausen