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  KEY: stricken = old language to be removed
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     scs2214a115

1.1Senator .................... moves to amend S.F. No. 2214 as follows:
1.2Delete everything after the enacting clause and insert:

1.3"ARTICLE 1
1.4HIGHER EDUCATION APPROPRIATIONS

1.5
Section 1. APPROPRIATIONS.
1.6The sums shown in the columns marked "Appropriations" are appropriated to the agencies
1.7and for the purposes specified in this article. The appropriations are from the general fund,
1.8or another named fund, and are available for the fiscal years indicated for each purpose.
1.9The figures "2018" and "2019" used in this article mean that the appropriations listed under
1.10them are available for the fiscal year ending June 30, 2018, or June 30, 2019, respectively.
1.11"The first year" is fiscal year 2018. "The second year" is fiscal year 2019. "The biennium"
1.12is fiscal years 2018 and 2019.
1.13
APPROPRIATIONS
1.14
Available for the Year
1.15
Ending June 30
1.16
2018
2019

1.17
1.18
Sec. 2. MINNESOTA OFFICE OF HIGHER
EDUCATION
1.19
Subdivision 1.Total Appropriation
$
248,436,000
$
247,595,000
1.20The amounts that may be spent for each
1.21purpose are specified in the following
1.22subdivisions.
1.23
Subd. 2.State Grants
188,106,000
190,956,000
1.24If the appropriation in this subdivision for
1.25either year is insufficient, the appropriation
1.26for the other year is available for it.
1.27
Subd. 3.Child Care Grants
6,694,000
6,694,000
1.28
Subd. 4.State Work-Study
14,502,000
14,502,000
1.29
Subd. 5.Interstate Tuition Reciprocity
11,018,000
11,018,000
1.30If the appropriation in this subdivision for
1.31either year is insufficient, the appropriation
1.32for the other year is available to meet
1.33reciprocity contract obligations.
2.1
Subd. 6.Safety Officer's Survivors
100,000
100,000
2.2This appropriation is to provide educational
2.3benefits under Minnesota Statutes, section
2.4299A.45, to eligible dependent children and
2.5to the spouses of public safety officers killed
2.6in the line of duty.
2.7If the appropriation in this subdivision for
2.8either year is insufficient, the appropriation
2.9for the other year is available for it.
2.10
Subd. 7.Indian Scholarships
3,500,000
3,500,000
2.11The commissioner must contract with or
2.12employ at least one person with demonstrated
2.13competence in American Indian culture and
2.14residing in or near the city of Bemidji to assist
2.15students with the scholarships under
2.16Minnesota Statutes, section 136A.126, and
2.17with other information about financial aid for
2.18which the students may be eligible. Bemidji
2.19State University must provide office space at
2.20no cost to the Office of Higher Education for
2.21purposes of administering the American Indian
2.22scholarship program under Minnesota Statutes,
2.23section 136A.126. This appropriation includes
2.24funding to administer the American Indian
2.25scholarship program.
2.26
Subd. 8.Tribal College Grants
150,000
150,000
2.27For tribal college assistance grants under
2.28Minnesota Statutes, section 136A.1796.
2.29
2.30
Subd. 9.Intervention for College Attendance
Program Grants
671,000
671,000
2.31For the intervention for college attendance
2.32program under Minnesota Statutes, section
2.33136A.861.
3.1The commissioner may use no more than two
3.2percent of this appropriation to administer the
3.3intervention for college attendance program
3.4grants.
3.5
Subd. 10.Student-Parent Information
122,000
122,000
3.6
Subd. 11.Get Ready!
180,000
180,000
3.7
3.8
Subd. 12.Minnesota Education Equity
Partnership
45,000
45,000
3.9
Subd. 13.Midwest Higher Education Compact
115,000
115,000
3.10
3.11
Subd. 14.United Family Medicine Residency
Program
501,000
501,000
3.12For a grant to United Family Medicine
3.13residency program. This appropriation shall
3.14be used to support up to 21 resident physicians
3.15each year in family practice at United Family
3.16Medicine residency programs and shall
3.17prepare doctors to practice family care
3.18medicine in underserved rural and urban areas
3.19of the state. It is intended that this program
3.20will improve health care in underserved
3.21communities, provide affordable access to
3.22appropriate medical care, and manage the
3.23treatment of patients in a cost-effective
3.24manner.
3.25
Subd. 15.MnLINK Gateway and Minitex
5,905,000
5,905,000
3.26
3.27
Subd. 16.Statewide Longitudinal Education
Data System
882,000
882,000
3.28
Subd. 17.Hennepin County Medical Center
645,000
645,000
3.29For transfer to Hennepin County Medical
3.30Center for graduate family medical education
3.31programs at Hennepin County Medical Center.
3.32
3.33
Subd. 18.MNSCU Two-Year Public College
Program
3,481,000
-0-
4.1(a) $2,780,000 in fiscal year 2018 is for
4.2two-year public college program grants under
4.3Laws 2015, chapter 69, article 3, section 20.
4.4(b) $545,000 in fiscal year 2018 is to provide
4.5mentoring and outreach as specified under
4.6Laws 2015, chapter 69, article 3, section 20.
4.7(c) $156,000 in fiscal year 2018 is for
4.8information technology and administrative
4.9costs associated with implementation of the
4.10grant program.
4.11
Subd. 19.College Possible
250,000
250,000
4.12(a) This appropriation is for immediate transfer
4.13to College Possible to support programs of
4.14college admission and college graduation for
4.15low-income students through an intensive
4.16curriculum of coaching and support at both
4.17the high school and postsecondary level.
4.18(b) This appropriation must, to the extent
4.19possible, be proportionately allocated between
4.20students from greater Minnesota and students
4.21in the seven-county metropolitan area.
4.22(c) This appropriation must be used by College
4.23Possible only for programs supporting students
4.24who are residents of Minnesota and attending
4.25colleges or universities within Minnesota.
4.26(d) By February 1 of each year, College
4.27Possible must report to the chairs and ranking
4.28minority members of the legislative
4.29committees and divisions with jurisdiction
4.30over higher education and E-12 education on
4.31activities funded by this appropriation. The
4.32report must include, but is not limited to,
4.33information about the expansion of College
4.34Possible in Minnesota, the number of College
5.1Possible coaches hired, the expansion within
5.2existing partner high schools, the expansion
5.3of high school partnerships, the number of
5.4high school and college students served, the
5.5total hours of community service by high
5.6school and college students, and a list of
5.7communities and organizations benefiting
5.8from student service hours.
5.9
5.10
Subd. 20.Spinal Cord Injury and Traumatic
Brain Injury Research Grant Program
3,000,000
3,000,000
5.11For spinal cord injury and traumatic brain
5.12injury research grants authorized under
5.13Minnesota Statutes, section 136A.901.
5.14The commissioner may use no more than two
5.15percent of this appropriation to administer the
5.16grant program under this subdivision.
5.17
5.18
Subd. 21.Summer Academic Enrichment
Program
125,000
125,000
5.19For summer academic enrichment grants under
5.20Minnesota Statutes, section 136A.091.
5.21The commissioner may use no more than two
5.22percent of this appropriation to administer the
5.23grant program under this subdivision.
5.24
5.25
Subd. 22.Dual Training Competency Grants;
Office of Higher Education
2,000,000
2,000,000
5.26For training grants under Minnesota Statutes,
5.27section 136A.246.
5.28The commissioner may use no more than two
5.29percent of this appropriation to administer the
5.30grant program under this subdivision.
5.31
5.32
Subd. 23.Dual Training Competency Grants;
Department of Labor and Industry
200,000
200,000
5.33For transfer to the commissioner of labor and
5.34industry for identification of competency
6.1standards for dual training under Minnesota
6.2Statutes, section 175.45.
6.3
Subd. 24.Concurrent Enrollment Courses
340,000
340,000
6.4(a) $225,000 in fiscal year 2018 and $225,000
6.5in fiscal year 2019 are for grants to develop
6.6new concurrent enrollment courses under
6.7Minnesota Statutes, section 124D.09,
6.8subdivision 10, that satisfy the elective
6.9standard for career and technical education.
6.10Any balance in the first year does not cancel
6.11but is available in the second year.
6.12(b) $115,000 in fiscal year 2018 and $115,000
6.13in fiscal year 2019 are for grants to
6.14postsecondary institutions currently
6.15sponsoring a concurrent enrollment course to
6.16expand existing programs. The commissioner
6.17shall determine the application process and
6.18the grant amounts. The commissioner must
6.19give preference to expanding programs that
6.20are at capacity. Any balance in the first year
6.21does not cancel but is available in the second
6.22year.
6.23(c) By December 1 of each year, the office
6.24shall submit a brief report to the chairs and
6.25ranking minority members of the legislative
6.26committees with jurisdiction over higher
6.27education regarding:
6.28(1) the courses developed by grant recipients
6.29and the number of students who enrolled in
6.30the courses under paragraph (a); and
6.31(2) the programs expanded and the number of
6.32students who enrolled in programs under
6.33paragraph (b).
6.34
Subd. 25.Campus Sexual Assault Reporting
25,000
25,000
7.1For the sexual assault reporting required under
7.2Minnesota Statutes, section 135A.15.
7.3
7.4
Subd. 26.Campus Sexual Violence Prevention
and Response Coordinator
150,000
150,000
7.5For the Office of Higher Education to staff a
7.6campus sexual violence prevention and
7.7response coordinator to serve as a statewide
7.8resource providing professional development
7.9and guidance on best practices for
7.10postsecondary institutions. $50,000 each year
7.11are for administrative funding to conduct
7.12trainings and provide materials to
7.13postsecondary institutions.
7.14
7.15
Subd. 27.Addiction Medicine Graduate
Fellowship Program
210,000
-0-
7.16For the addiction medicine graduate fellowship
7.17program under Laws 2016, chapter 189, article
7.181, section 2, subdivision 4.
7.19
7.20
Subd. 28.Student and Employer Connection
Information System
405,000
405,000
7.21For a grant to the Minnesota Chamber
7.22Foundation for the creation of a web-based
7.23job and intern-seeking software tool that blind
7.24matches the needs of employers located in
7.25Minnesota with the individual profiles of high
7.26school seniors and postsecondary students
7.27attending Minnesota high schools and
7.28postsecondary institutions. No more than two
7.29percent of this appropriation may be used for
7.30administrative expenses of the foundation. The
7.31foundation must report by January 15, 2019,
7.32on activities under this subdivision to the
7.33chairs and ranking minority members of the
7.34legislative committees with jurisdiction over
7.35higher education finance.
8.1
8.2
Subd. 29.Emergency Assistance for
Postsecondary Students
175,000
175,000
8.3(a) This appropriation is for the Office of
8.4Higher Education to allocate grant funds on a
8.5matching basis to schools with a demonstrable
8.6homeless student population.
8.7(b) This appropriation shall be used to meet
8.8immediate student needs that could result in
8.9a student not completing the term or their
8.10program including, but not limited to,
8.11emergency housing, food, and transportation.
8.12Emergency assistance does not impact the
8.13amount of state financial aid received.
8.14(c) The commissioner shall determine the
8.15application process and the grant amounts.
8.16Any balance in the first year does not cancel
8.17but shall be available in the second year. The
8.18Office of Higher Education shall partner with
8.19interested postsecondary institutions, other
8.20state agencies, and student groups to establish
8.21the programs.
8.22
Subd. 30.Grants to Teacher Candidates
500,000
500,000
8.23For grants to teacher candidates under
8.24Minnesota Statutes, section 136A.1275. This
8.25appropriation is in addition to the money
8.26available under Laws 2016, chapter 189,
8.27article 25, section 62, subdivision 11.
8.28The commissioner may use no more than two
8.29percent of the appropriation for administration
8.30of the program.
8.31
Subd. 31.Teacher Shortage Loan Forgiveness
200,000
200,000
8.32For the loan forgiveness program under
8.33Minnesota Statutes, section 136A.1791.
9.1The commissioner may use no more than two
9.2percent of this appropriation to administer the
9.3program under this subdivision.
9.4
9.5
Subd. 32.Large Animal Veterinarian Loan
Forgiveness Program
375,000
375,000
9.6For the large animal veterinarian loan
9.7forgiveness program under Minnesota Statutes,
9.8section 136A.1795.
9.9
9.10
Subd. 33.Agricultural Educators Loan
Forgiveness
50,000
50,000
9.11For deposit in the agricultural education loan
9.12forgiveness account.
9.13
9.14
Subd. 34.Aviation Degree Loan Forgiveness
Program
25,000
25,000
9.15For the aviation degree loan forgiveness
9.16program under Minnesota Statutes, section
9.17136A.1789.
9.18
9.19
Subd. 35.Grants for Students with Intellectual
and Developmental Disabilities
200,000
200,000
9.20For grants for students with intellectual and
9.21developmental disabilities under Minnesota
9.22Statutes, section 136A.1215.
9.23
Subd. 36.Loan Repayment Assistance Program
25,000
25,000
9.24For a grant to the Loan Repayment Assistance
9.25Program of Minnesota to provide education
9.26debt relief to attorneys with full-time
9.27employment providing legal advice or
9.28representation to low-income clients or support
9.29services for this work.
9.30
Subd. 37.Minnesota Life College
1,000,000
1,000,000
9.31For a grant to Minnesota Life College for
9.32need-based scholarships and tuition reduction.
9.33
Subd. 38.Agency Administration
2,564,000
2,564,000
9.34
Subd. 39.Balances Forward
10.1A balance in the first year under this section
10.2does not cancel, but is available for the second
10.3year.
10.4
Subd. 40.Transfers
10.5The commissioner of the Office of Higher
10.6Education may transfer unencumbered
10.7balances from the appropriations in this
10.8section to the state grant appropriation, the
10.9interstate tuition reciprocity appropriation, the
10.10child care grant appropriation, the Indian
10.11scholarship appropriation, the state work-study
10.12appropriation, the get ready appropriation, and
10.13the public safety officers' survivors
10.14appropriation. Transfers from the child care
10.15or state work-study appropriations may only
10.16be made to the extent there is a projected
10.17surplus in the appropriation. A transfer may
10.18be made only with prior written notice to the
10.19chairs and ranking minority members of the
10.20senate and house of representatives
10.21committees with jurisdiction over higher
10.22education finance.

10.23
10.24
10.25
Sec. 3. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES
10.26
Subdivision 1.Total Appropriation
$
709,748,000
$
714,640,000
10.27The amounts that may be spent for each
10.28purpose are specified in the following
10.29subdivisions.
10.30
Subd. 2.Central Office and Shared Services Unit
33,074,000
33,074,000
10.31For the Office of the Chancellor and the
10.32Shared Services Division.
10.33Notwithstanding section 136F.06, subdivision
10.343, the Board of Trustees must not renew its
11.1existing lease for the central office location,
11.2and must explore co-locating the central office
11.3on an existing system campus or campuses.
11.4
Subd. 3.Operations and Maintenance
672,559,000
677,451,000
11.5(a) Of this amount, the Board of Trustees must
11.6transfer $100,000 for each campus not located
11.7in a metropolitan county, as defined in
11.8Minnesota Statutes, section 473.121,
11.9subdivision 4, in each year to the president of
11.10each institution that includes such a campus,
11.11provided that no institution may receive more
11.12than $300,000 under this paragraph.
11.13(b) The Board of Trustees must establish
11.14tuition rates as follows:
11.15(1) for the 2017-2018 academic year, the
11.16tuition rate at colleges must not exceed the
11.172016-2017 academic year rate; and
11.18(2) for the 2018-2019 academic year, the
11.19tuition rate at universities must not exceed the
11.202017-2018 academic year rate, and the tuition
11.21rate at colleges must be reduced by at least
11.22one percent compared to the 2017-2018
11.23academic year rate.
11.24The student tuition relief may not be offset by
11.25increases in mandatory fees, charges, or other
11.26assessments to the student.
11.27(c) The Board of Trustees is requested to help
11.28Minnesota close the attainment gap by funding
11.29activities which improve retention and
11.30completion for students of color.
11.31(d) This appropriation includes $500,000 in
11.32fiscal year 2018 and $500,000 in fiscal year
11.332019 for workforce development scholarships
11.34under Minnesota Statutes, section 136F.38.
12.1(e) $200,000 each year is for transfer to the
12.2Cook County Higher Education Board to
12.3provide educational programming and
12.4academic support services to remote regions
12.5in northeastern Minnesota. The Cook County
12.6Higher Education Board shall continue to
12.7provide information to the Board of Trustees
12.8on the number of students served, credit hours
12.9delivered, and services provided to students.
12.10(f) $50,000 in fiscal year 2018 and $50,000 in
12.11fiscal year 2019 are for developing and
12.12teaching online agricultural courses by farm
12.13business management faculty at colleges that
12.14offer farm business management.
12.15(g) $175,000 in fiscal year 2018 and $175,000
12.16in fiscal year 2019 are for the
12.17veterans-to-agriculture pilot program
12.18established by Laws 2015, chapter 69, article
12.191, section 4, subdivision 3. The program shall
12.20continue to conform to the requirements of
12.21that subdivision. The appropriation shall be
12.22used to support, in equal amounts, up to six
12.23program sites statewide. No more than two
12.24percent of the total appropriation provided by
12.25this section may be used for administrative
12.26purposes at the system level.
12.27No later than December 15, 2018, the program
12.28shall report to the committees of the house of
12.29representatives and the senate with jurisdiction
12.30over issues related to agriculture, veterans
12.31affairs, and higher education on program
12.32operations, including information on
12.33participation rates, new job placements, and
12.34any unmet needs.
13.1(h) This appropriation includes $40,000 in
13.2fiscal year 2018 and $40,000 in fiscal year
13.32019 to implement the sexual assault policies
13.4required under Minnesota Statutes, section
13.5135A.15.
13.6(i) This appropriation includes $3,000,000 in
13.7fiscal year 2018 and $5,000,000 in fiscal year
13.82019 for upgrading the Integrated Statewide
13.9Record System.
13.10(j) $100,000 in fiscal year 2018 is for use by
13.11Winona State University for HealthForce
13.12Minnesota to develop educational materials
13.13that increase awareness of career opportunities
13.14available in the field of senior care. The
13.15educational materials developed under this
13.16provision must be appropriate for students in
13.17K-12 education settings, dislocated workers,
13.18and rural communities. Materials must be
13.19developed in collaboration with employers
13.20and trade organizations representing
13.21employers in the field of senior care.
13.22Winona State University shall submit a report
13.23by February 1, 2019, to the chairs and ranking
13.24minority members of the legislative
13.25committees with jurisdiction over higher
13.26education finance and policy. The report must
13.27include information about the materials
13.28developed, to whom materials were
13.29distributed, and identify any collaborations
13.30with employers and trade organizations.
13.31
Subd. 4.Learning Network of Minnesota
4,115,000
4,115,000

13.32
13.33
Sec. 4. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA
13.34
Subdivision 1.Total Appropriation
$
636,868,000
$
638,818,000
14.1
Appropriations by Fund
14.2
2018
2019
14.3
General
634,711,000
636,661,000
14.4
Health Care Access
2,157,000
2,157,000
14.5The amounts that may be spent for each
14.6purpose are specified in the following
14.7subdivisions.
14.8
Subd. 2.Operations and Maintenance
567,273,000
569,223,000
14.9(a) $15,000,000 in fiscal year 2018 and
14.10$15,000,000 in fiscal year 2019 are to: (1)
14.11increase the medical school's research
14.12capacity; (2) improve the medical school's
14.13ranking in National Institutes of Health
14.14funding; (3) ensure the medical school's
14.15national prominence by attracting and
14.16retaining world-class faculty, staff, and
14.17students; (4) invest in physician training
14.18programs in rural and underserved
14.19communities; and (5) translate the medical
14.20school's research discoveries into new
14.21treatments and cures to improve the health of
14.22Minnesotans.
14.23(b) $6,800,000 in fiscal year 2018 and
14.24$8,800,000 in fiscal year 2019 are for health
14.25training restoration. This appropriation must
14.26be used to support all of the following: (1)
14.27faculty physicians who teach at eight residency
14.28program sites, including medical resident and
14.29student training programs in the Department
14.30of Family Medicine; (2) the Mobile Dental
14.31Clinic; and (3) expansion of geriatric
14.32education and family programs.
14.33(c) $1,000,000 in fiscal year 2018 and
14.34$1,000,000 in fiscal year 2019 are for the
14.35Minnesota Discovery, Research, and
15.1InnoVation Economy funding program for
15.2cancer care research.
15.3(d) $50,000 in fiscal year 2018 is to develop
15.4and implement a plan to offer the academic
15.5program for students with intellectual and
15.6developmental disabilities required in article
15.72, section 17. The Board of Regents must
15.8submit a report on the plan to the chairs and
15.9ranking minority members of the committees
15.10of the legislature with jurisdiction over higher
15.11education finance and policy no later than
15.12January 15, 2018. The report must describe
15.13program plans, including strategies for
15.14recruitment of applicants, and strategies to
15.15address anticipated program needs that cannot
15.16be filled using existing campus or system
15.17resources. This is a onetime appropriation.
15.18(e) $500,000 in fiscal year 2018 and $500,000
15.19in fiscal year 2019 are for the University of
15.20Minnesota, Morris branch, to cover the costs
15.21of tuition waivers under Minnesota Statutes,
15.22section 137.16.
15.23
Subd. 3.Primary Care Education Initiatives
2,157,000
2,157,000
15.24This appropriation is from the health care
15.25access fund.
15.26
Subd. 4.Special Appropriations
15.27
(a) Agriculture and Extension Service
42,922,000
42,922,000
15.28For the Agricultural Experiment Station and
15.29the Minnesota Extension Service:
15.30(1) the agricultural experiment stations and
15.31Minnesota Extension Service must convene
15.32agricultural advisory groups to focus research,
15.33education, and extension activities on producer
15.34needs and implement an outreach strategy that
16.1more effectively and rapidly transfers research
16.2results and best practices to producers
16.3throughout the state;
16.4(2) this appropriation includes funding for
16.5research and outreach on the production of
16.6renewable energy from Minnesota biomass
16.7resources, including agronomic crops, plant
16.8and animal wastes, and native plants or trees.
16.9The following areas should be prioritized and
16.10carried out in consultation with Minnesota
16.11producers, renewable energy, and bioenergy
16.12organizations:
16.13(i) biofuel and other energy production from
16.14perennial crops, small grains, row crops, and
16.15forestry products in conjunction with the
16.16Natural Resources Research Institute (NRRI);
16.17(ii) alternative bioenergy crops and cropping
16.18systems; and
16.19(iii) biofuel coproducts used for livestock feed;
16.20(3) this appropriation includes funding for the
16.21College of Food, Agricultural, and Natural
16.22Resources Sciences to establish and provide
16.23leadership for organic agronomic,
16.24horticultural, livestock, and food systems
16.25research, education, and outreach and for the
16.26purchase of state-of-the-art laboratory,
16.27planting, tilling, harvesting, and processing
16.28equipment necessary for this project;
16.29(4) this appropriation includes funding for
16.30research efforts that demonstrate a renewed
16.31emphasis on the needs of the state's agriculture
16.32community. The following areas should be
16.33prioritized and carried out in consultation with
16.34Minnesota farm organizations:
17.1(i) vegetable crop research with priority for
17.2extending the Minnesota vegetable growing
17.3season;
17.4(ii) fertilizer and soil fertility research and
17.5development;
17.6(iii) soil, groundwater, and surface water
17.7conservation practices and contaminant
17.8reduction research;
17.9(iv) discovering and developing plant varieties
17.10that use nutrients more efficiently;
17.11(v) breeding and development of turf seed and
17.12other biomass resources in all three Minnesota
17.13biomes;
17.14(vi) development of new disease-resistant and
17.15pest-resistant varieties of turf and agronomic
17.16crops;
17.17(vii) utilizing plant and livestock cells to treat
17.18and cure human diseases;
17.19(viii) the development of dairy coproducts;
17.20(ix) a rapid agricultural response fund for
17.21current or emerging animal, plant, and insect
17.22problems affecting production or food safety;
17.23(x) crop pest and animal disease research;
17.24(xi) developing animal agriculture that is
17.25capable of sustainably feeding the world;
17.26(xii) consumer food safety education and
17.27outreach;
17.28(xiii) programs to meet the research and
17.29outreach needs of organic livestock and crop
17.30farmers; and
18.1(xiv) alternative bioenergy crops and cropping
18.2systems; and growing, harvesting, and
18.3transporting biomass plant material; and
18.4(5) by February 1, 2019, the Board of Regents
18.5must submit a report to the legislative
18.6committees and divisions with jurisdiction
18.7over agriculture and higher education finance
18.8on the status and outcomes of research and
18.9initiatives funded in this paragraph.
18.10
(b) Health Sciences
9,204,000
9,204,000
18.11$346,000 each year is to support up to 12
18.12resident physicians in the St. Cloud Hospital
18.13family practice residency program. The
18.14program must prepare doctors to practice
18.15primary care medicine in rural areas of the
18.16state. The legislature intends this program to
18.17improve health care in rural communities,
18.18provide affordable access to appropriate
18.19medical care, and manage the treatment of
18.20patients in a more cost-effective manner. The
18.21remainder of this appropriation is for the rural
18.22physicians associates program; the Veterinary
18.23Diagnostic Laboratory; health sciences
18.24research; dental care; the Biomedical
18.25Engineering Center; and the collaborative
18.26partnership between the University of
18.27Minnesota and Mayo Clinic for regenerative
18.28medicine, research, clinical translation, and
18.29commercialization.
18.30
(c) Institute of Technology
1,140,000
1,140,000
18.31For the geological survey and the talented
18.32youth mathematics program.
18.33
(d) System Special
6,181,000
6,181,000
19.1For general research, the Labor Education
19.2Service, Natural Resources Research Institute,
19.3Center for Urban and Regional Affairs, Bell
19.4Museum of Natural History, and the
19.5Humphrey exhibit.
19.6$1,000,000 in fiscal year 2018 and $1,000,000
19.7in fiscal year 2019 are for the Natural
19.8Resources Research Institute to invest in
19.9applied research for economic development.
19.10
19.11
(e) University of Minnesota and Mayo
Foundation Partnership
7,991,000
7,991,000
19.12This appropriation is for the following
19.13activities:
19.14(1) $7,491,000 in fiscal year 2018 and
19.15$7,491,000 in fiscal year 2019 are for the
19.16direct and indirect expenses of the
19.17collaborative research partnership between the
19.18University of Minnesota and the Mayo
19.19Foundation for research in biotechnology and
19.20medical genomics. An annual report on the
19.21expenditure of these funds must be submitted
19.22to the governor and the chairs of the legislative
19.23committees responsible for higher education
19.24finance by June 30 of each fiscal year.
19.25(2) $500,000 in fiscal year 2018 and $500,000
19.26in fiscal year 2019 are to award competitive
19.27grants to conduct research into the prevention,
19.28treatment, causes, and cures of Alzheimer's
19.29disease and other dementias.
19.30
Subd. 5.Academic Health Center
19.31The appropriation for Academic Health Center
19.32funding under Minnesota Statutes, section
19.33297F.10, is estimated to be $22,250,000 each
19.34year.

20.1
Sec. 5. MAYO CLINIC
20.2
Subdivision 1.Total Appropriation
$
1,351,000
$
1,351,000
20.3The amounts that may be spent are specified
20.4in the following subdivisions.
20.5
Subd. 2.Medical School
665,000
665,000
20.6The state must pay a capitation each year for
20.7each student who is a resident of Minnesota.
20.8The appropriation may be transferred between
20.9each year of the biennium to accommodate
20.10enrollment fluctuations. It is intended that
20.11during the biennium the Mayo Clinic use the
20.12capitation money to increase the number of
20.13doctors practicing in rural areas in need of
20.14doctors.
20.15
20.16
Subd. 3.Family Practice and Graduate
Residency Program
686,000
686,000
20.17The state must pay stipend support for up to
20.1827 residents each year.

20.19ARTICLE 2
20.20HIGHER EDUCATION POLICY

20.21    Section 1. Minnesota Statutes 2016, section 43A.06, subdivision 1, is amended to read:
20.22    Subdivision 1. General. (a) The commissioner shall perform the duties assigned to the
20.23commissioner by sections 3.855, 179A.01 to 179A.25 and this section.
20.24(b) The commissioner shall be the state labor negotiator for purposes of negotiating and
20.25administering agreements with exclusive representatives of employees and shall perform
20.26any other duties delegated by the commissioner subject to the limitations in paragraph (c).
20.27(c) The Board of Trustees of the Minnesota State Colleges and Universities may exercise
20.28the powers under this section for employees included in the units provided in clauses (9),
20.29(10), and (11) of section 179A.10, subdivision 2, except with respect to sections 43A.22 to
20.3043A.31 , which shall continue to be the responsibility of the commissioner. The commissioner
20.31shall have the right to review and comment to the Minnesota State Colleges and Universities
20.32on the board's final proposals prior to exchange of final positions with the designated
20.33bargaining units as well as any requests for interest arbitration. The legislature encourages
21.1the Board of Trustees, in coordination with the commissioner of management and budget
21.2and the Board of Regents of the University of Minnesota, to endeavor in collective bargaining
21.3negotiations to seek fiscal balance recognizing the ability of the employer to fund the
21.4agreements or awards. When submitting a proposed collective bargaining agreement to the
21.5Legislative Coordinating Commission and the legislature under section 3.855, subdivision
21.62 , the Board of Trustees must use procedures and assumptions consistent with those used
21.7by the commissioner in calculating the costs of the proposed contract. The Legislative
21.8Coordinating Commission must, when considering a collective bargaining agreement or
21.9arbitration award submitted by the Board of Trustees, evaluate market conditions affecting
21.10the employees in the bargaining unit, equity with other bargaining units in the executive
21.11branch, and the ability of the trustees and the state to fund the agreement or award.

21.12    Sec. 2. Minnesota Statutes 2016, section 135A.031, subdivision 7, is amended to read:
21.13    Subd. 7. Reports. (a) The University of Minnesota and the Minnesota State Colleges
21.14and Universities systems shall include in their biennial budget proposals to the legislature:
21.15    (1) a five-year history of systemwide expenditures, reported by:
21.16    (i) functional areas, including instruction, research, public service, student financial aid,
21.17and auxiliary services, and including direct costs and indirect costs, such as institutional
21.18support, academic support, student services, and facilities management, associated with
21.19each functional area; and
21.20    (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment, including
21.21a full explanation of all material changes to the expenditure categories when compared to
21.22the prior fiscal year;
21.23    (2) a five-year history of the system's total instructional expenditures per full-year
21.24equivalent student, by level of instruction, including upper-division undergraduate,
21.25lower-division undergraduate, graduate, professional, and other categories of instructional
21.26programs offered by the system;
21.27    (3) a five-year history of the system's total revenues by funding source, including tuition,
21.28state operations and maintenance appropriations, state special appropriations, other restricted
21.29state funds, federal appropriations, sponsored research funds, gifts, auxiliary revenue, indirect
21.30cost recovery, and any other revenue sources;
21.31    (4) an explanation describing how state appropriations made to the system in the previous
21.32biennium were allocated and the methodology used to determine the allocation;
22.1    (5) data describing how the institution reallocated resources to advance the priorities set
22.2forth in the budget submitted under section 135A.034 and the statewide objectives under
22.3section 135A.011. The information must indicate whether instruction and support programs
22.4received a reduction in or additional resources. The total amount reallocated must be clearly
22.5explained;
22.6    (6) the tuition rates and fees established by the governing board in each of the past ten
22.7years and comparison data for peer institutions and national averages;
22.8    (7) data on the number and proportion of students graduating within four, five, and six
22.9years from universities and within three years from colleges as reported in the integrated
22.10postsecondary education data system. These data must be provided for each institution by
22.11race, ethnicity, and gender. Data and information must be submitted that describe the system's
22.12plan and progress toward attaining the goals set forth in the plan to increase the number and
22.13proportion of students that graduate within four, five, or six years from a university or within
22.14three years from a college;
22.15    (8) data on, and the methodology used to measure, the number of students traditionally
22.16underrepresented in higher education enrolled at the system's institutions. Data and
22.17information must be submitted that describe the system's plan and progress toward attaining
22.18the goals set forth in the plan to increase the recruitment, retention, and timely graduation
22.19of students traditionally underrepresented in higher education; and
22.20    (9) data on the revenue received from all sources to support research or workforce
22.21development activities or the system's efforts to license, sell, or otherwise market products,
22.22ideas, technology, and related inventions created in whole or in part by the system. Data
22.23and information must be submitted that describe the system's plan and progress toward
22.24attaining the goals set forth in the plan to increase the revenue received to support research
22.25or workforce development activities or revenue received from the licensing, sale, or other
22.26marketing and technology transfer activities by the system;
22.27    (10) data on consulting contracts from the last two completed fiscal years for which the
22.28work is performed by a consultant who is not an employee of the system, for which the
22.29system paid in excess of $500,000. Data must include the name of the consultant, the total
22.30value of the contract, a description of the work completed, and a description of the reasons
22.31for using an outside consultant and not internal staff. Consulting contracts are defined as
22.32contracts from management, investment and financial advisory services, project management,
22.33computer/technology advisory services, and construction project management; and
22.34(11) aggregate data on the following:
23.1(i) student demographics;
23.2(ii) a five-year history of student enrollment, including student enrollment by legislative
23.3district;
23.4(iii) a five-year history of student debt;
23.5(iv) a five-year history of mandatory student fees by campus;
23.6(v) employee head count and employee demographics;
23.7(vi) facilities, including physical space overview, condition, square footage, distribution
23.8by region, any deferred maintenance, and capital bonding requested and received;
23.9(vii) administrative costs, including the definition of "administrators" used by the system,
23.10the total number of "administrators" as percent of total employee head count, and system
23.11office budget for Minnesota State Colleges and Universities as percent of total system
23.12general fund revenue; and
23.13    (viii) college and university operating budgets.
23.14    (b) Data required by this subdivision shall be submitted by the public postsecondary
23.15systems to the Minnesota Office of Higher Education and the Department of Management
23.16and Budget and included in the biennial budget document. Representatives from each system,
23.17in consultation with the commissioner of management and budget and the commissioner
23.18of the Office of Higher Education, shall develop consistent reporting practices for this
23.19purpose.
23.20    (c) To the extent practicable, each system shall develop the ability to respond to legislative
23.21requests for financial analyses that are more detailed than those required by this subdivision,
23.22including but not limited to analyses that show expenditures or revenues by institution or
23.23program, or in multiple categories of expenditures or revenues, and analyses that show
23.24revenue sources for particular types of expenditures.

23.25    Sec. 3. [135A.0434] MANDATORY STUDENT ACTIVITY FEES PROHIBITED.
23.26    Subdivision 1. Mandatory fee prohibition. (a) The governing board of a public
23.27postsecondary institution must not impose on students any mandatory fee funding
23.28noninstructional student programs, activities, groups, or services.
23.29(b) This section does not prohibit mandatory fees paid by students that are directly related
23.30to academic, administrative, or health services.
24.1(c) The Board of Regents of the University of Minnesota is requested to adopt a policy
24.2implementing this section.
24.3    Subd. 2. Penalty. If the Board of Regents of the University of Minnesota imposes a
24.4mandatory fee in violation of this section, the commissioner of management and budget
24.5must deduct an amount equal to the net revenue generated by that fee from the university's
24.6appropriation base in the first year of the next biennium.

24.7    Sec. 4. [135A.158] INFORMATION PROVIDED TO STUDENT PARENTS AND
24.8PREGNANT STUDENTS.
24.9A public or regionally accredited private postsecondary educational institution must
24.10provide information according to this section to students who are parents of one or more
24.11children age 12 or younger, and to students who notify the institution that they are pregnant.
24.12The information must include a fact sheet on the legal rights of student parents and pregnant
24.13students and a list of resources to support student parents and pregnant students. The list of
24.14resources may include resources for prenatal care, child care, transportation, and housing.
24.15This information must be available in languages that reflect the primary languages of the
24.16institution's student body.

24.17    Sec. 5. [136A.055] DEVELOPMENTAL EDUCATION REPORTING.
24.18(a) The commissioner must report on the department's Web site the following summary
24.19data on students who graduated from a Minnesota high school and are attending a public
24.20postsecondary institution in Minnesota, limited to the most recent academic school year:
24.21(1) the number of students placed in supplemental or developmental education;
24.22(2) the number of students who complete supplemental or developmental education
24.23within one academic year;
24.24(3) the number of students that complete gateway courses in one academic year; and
24.25(4) time to complete a degree or certificate at a postsecondary institution.
24.26(b) Summary data must be aggregated by school district, high school, and postsecondary
24.27institution. Summary data must be disaggregated by race, ethnicity, free or reduced-price
24.28lunch eligibility, and age.
24.29(c) The commissioner must post the initial data on the department's Web site on or before
24.30February 15, 2018, and must update the data at least annually thereafter.

25.1    Sec. 6. Minnesota Statutes 2016, section 136A.101, subdivision 5a, is amended to read:
25.2    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means the
25.3amount of a family's contribution to a student's cost of attendance, as determined by a federal
25.4need analysis. For dependent students, the assigned family responsibility is 94 90 percent
25.5of the parental contribution. For independent students with dependents other than a spouse,
25.6the assigned family responsibility is 86 82 percent of the student contribution. For
25.7independent students without dependents other than a spouse, the assigned family
25.8responsibility is 50 46 percent of the student contribution.

25.9    Sec. 7. [136A.1215] GRANTS FOR STUDENTS WITH INTELLECTUAL AND
25.10DEVELOPMENTAL DISABILITIES.
25.11    Subdivision 1. Establishment. A program is established to provide financial assistance
25.12to students with intellectual and developmental disabilities that attend a Minnesota
25.13postsecondary institution.
25.14    Subd. 2. Eligible students. A postsecondary student is eligible for a grant under this
25.15section if the student:
25.16(1) meets the eligibility requirements in section 136A.121, subdivision 2;
25.17(2) is a student with an intellectual disability, as defined in Code of Federal Regulations,
25.18title 34, section 668.231, and is enrolled in a comprehensive transition and postsecondary
25.19program under that section; and
25.20(3) attends an eligible institution, as defined in section 136A.101, subdivision 4.
25.21    Subd. 3. Application. To receive a grant under this section, a student must apply in the
25.22form and manner specified by the commissioner.
25.23    Subd. 4. Grant amounts. (a) The amount of a grant under this section equals the tuition
25.24and fees at the student's postsecondary institution, minus:
25.25(1) any Pell or state grants the student receives; and
25.26(2) any institutional aid the student receives.
25.27(b) If appropriations are insufficient to provide the full amount calculated under paragraph
25.28(a) to all eligible applicants, the commissioner must reduce the grants of all recipients
25.29proportionally.
25.30    Subd. 5. Reporting. By February 15 of each year, the commissioner of higher education
25.31must submit a report on the details of the program under this section to the legislative
26.1committees with jurisdiction over higher education finance and policy. The report must
26.2include the following information, broken out by postsecondary institution:
26.3(1) the number of students receiving an award;
26.4(2) the average and total award amounts; and
26.5(3) summary demographic data on award recipients.

26.6    Sec. 8. Minnesota Statutes 2016, section 136A.125, subdivision 2, is amended to read:
26.7    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if the
26.8applicant:
26.9    (1) is a resident of the state of Minnesota or the applicant's spouse is a resident of the
26.10state of Minnesota;
26.11    (2) has a child 12 years of age or younger, or 14 years of age or younger who is disabled
26.12as defined in section 125A.02, and who is receiving or will receive care on a regular basis
26.13from a licensed or legal, nonlicensed caregiver;
26.14    (3) is income eligible as determined by the office's policies and rules, but is not a recipient
26.15of assistance from the Minnesota family investment program;
26.16    (4) either has not earned a baccalaureate degree and has been enrolled full time less than
26.17eight ten semesters or the equivalent, or has earned a baccalaureate degree and has been
26.18enrolled full time less than eight ten semesters or the equivalent in a graduate or professional
26.19degree program;
26.20    (5) is pursuing a nonsectarian program or course of study that applies to an undergraduate,
26.21graduate, or professional degree, diploma, or certificate;
26.22    (6) is enrolled in at least six credits in an undergraduate program or one credit in a
26.23graduate or professional program in an eligible institution; and
26.24    (7) is in good academic standing and making satisfactory academic progress.
26.25    (b) A student who withdraws from enrollment for active military service after December
26.2631, 2002, because the student was ordered to active military service as defined in section
26.27190.05, subdivision 5b or 5c, or for a major illness, while under the care of a medical
26.28professional, that substantially limits the student's ability to complete the term is entitled to
26.29an additional semester or the equivalent of grant eligibility and will be considered to be in
26.30continuing enrollment status upon return.

27.1    Sec. 9. Minnesota Statutes 2016, section 136A.125, subdivision 4, is amended to read:
27.2    Subd. 4. Amount and length of grants. (a) The amount of a child care grant must be
27.3based on:
27.4    (1) the income of the applicant and the applicant's spouse;
27.5    (2) the number in the applicant's family, as defined by the office; and
27.6    (3) the number of eligible children in the applicant's family.
27.7    (b) The maximum award to the applicant shall be $2,800 $3,000 for each eligible child
27.8per academic year, except that the campus financial aid officer may apply to the office for
27.9approval to increase grants by up to ten percent to compensate for higher market charges
27.10for infant care in a community. The office shall develop policies to determine community
27.11market costs and review institutional requests for compensatory grant increases to ensure
27.12need and equal treatment. The office shall prepare a chart to show the amount of a grant
27.13that will be awarded per child based on the factors in this subdivision. The chart shall include
27.14a range of income and family size.
27.15(c) Applicants with family incomes at or below a percentage of the federal poverty level,
27.16as determined by the commissioner, will qualify for the maximum award. The commissioner
27.17shall attempt to set the percentage at a level estimated to fully expend the available
27.18appropriation for child care grants. Applicants with family incomes exceeding that threshold
27.19will receive the maximum award minus ten percent of their income exceeding that threshold.
27.20If the result is less than zero, the grant is zero.
27.21(d) The academic year award amount must be disbursed by academic term using the
27.22following formula:
27.23(1) the academic year amount described in paragraph (b);
27.24(2) divided by the number of terms in the academic year;
27.25(3) divided by 15 for undergraduate students and six for graduate and professional
27.26students; and
27.27(4) multiplied by the number of credits for which the student is enrolled that academic
27.28term, up to 15 credits for undergraduate students and six for graduate and professional
27.29students.
27.30(e) Payments shall be made each academic term to the student or to the child care
27.31provider, as determined by the institution. Institutions may make payments more than once
27.32within the academic term.

28.1    Sec. 10. Minnesota Statutes 2016, section 136A.1275, is amended to read:
28.2136A.1275 GRANTS TO STUDENT TEACHERS IN SHORTAGE AREAS
28.3TEACHER CANDIDATE GRANTS.
28.4    Subdivision 1. Establishment. (a) The commissioner of the Office of Higher Education
28.5must establish a grant program for student teaching stipends for low-income students enrolled
28.6in a Board of Teaching-approved teacher preparation program who are interested in teaching
28.7in a high needs subject area or region intend to teach in a shortage area after graduating and
28.8receiving their teaching license or belong to an underrepresented racial or ethnic group. For
28.9purposes of this section, "high needs subject area or region" means a shortage of teachers
28.10teaching in particular subject areas or a shortage of teachers teaching in particular regions
28.11of the state identified in the commissioner of education's biennial survey of districts under
28.12section 127A.05, subdivision 6, or in another Department of Education survey on teacher
28.13shortages.
28.14(b) "Shortage area" means a license field or economic development region within
28.15Minnesota defined as a shortage area by the Department of Education using data collected
28.16for the teacher supply and demand report under section 127A.05, subdivision 6, or other
28.17surveys conducted by the Department of Education that provide indicators for teacher supply
28.18and demand.
28.19    Subd. 2. Eligibility. To be eligible for a grant under this section, a teacher candidate
28.20must:
28.21(1) be enrolled in a Board of Teaching-approved teacher preparation program that requires
28.22at least 12 weeks of student teaching and results in the teacher candidate receiving in order
28.23to be recommended for a full professional teaching license enabling the licensee to teach
28.24in a high needs subject area or region; and
28.25(2) demonstrate financial need based on criteria established by the commissioner under
28.26subdivision 3;
28.27(3) intend to teach in a shortage area or belong to an underrepresented racial or ethnic
28.28group; and
28.29(4) be meeting satisfactory academic progress as defined under section 136A.101,
28.30subdivision 10.
28.31    Subd. 3. Administration; repayment. (a) The commissioner must establish an
28.32application process and other guidelines for implementing this program, including repayment
29.1responsibilities for stipend recipients who do not complete student teaching or who leave
29.2Minnesota to teach in another state during the first year after student teaching.
29.3(b) The commissioner must determine each academic year the stipend amount up to
29.4$7,500 based on the amount of available funding and, the number of eligible applicants,
29.5and the financial need of the applicants.
29.6(c) The percentage of the total award reserved for teacher candidates who identify as
29.7belonging to an underrepresented racial or ethnic group must be equal to or greater than the
29.8total percentage of students of underrepresented racial or ethnic groups as measured under
29.9section 120B.35, subdivision 3. If this percentage cannot be met because of a lack of
29.10qualifying candidates, the remaining amount may be awarded to teacher candidates who
29.11intend to teach in a shortage area.

29.12    Sec. 11. [136A.1789] AVIATION DEGREE LOAN FORGIVENESS PROGRAM.
29.13    Subdivision 1. Definitions. (a) For purposes of this section, the terms in this subdivision
29.14have the meanings given them.
29.15(b) "Qualified aircraft technician" means an individual who (1) has earned an associate's
29.16or bachelor's degree from a postsecondary institution located in Minnesota, and (2) has
29.17obtained an aviation mechanic's certificate from the Federal Aviation Administration.
29.18(c) "Qualified education loan" means a government, commercial, or foundation loan
29.19used by an individual for actual costs paid for tuition to a postsecondary institution located
29.20in Minnesota for a professional flight training degree.
29.21(d) "Qualified pilot" means an individual who (1) has earned an associate's or bachelor's
29.22degree in professional flight training from a postsecondary institution located in Minnesota,
29.23and (2) is in the process of obtaining or has obtained an airline transport pilot certificate.
29.24    Subd. 2. Creation of account. (a) An aviation degree loan forgiveness program account
29.25is established to provide qualified pilots and qualified aircraft technicians with financial
29.26assistance in repaying qualified education loans. The commissioner must use money from
29.27the account to establish and administer the aviation degree loan forgiveness program.
29.28(b) Appropriations made to the aviation degree loan forgiveness program account do
29.29not cancel and are available until expended.
29.30    Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program
29.31under this section, an individual must:
29.32(1) be a qualified pilot or qualified aircraft technician;
30.1(2) have qualified education loans;
30.2(3) reside in Minnesota; and
30.3(4) submit an application to the commissioner in the form and manner prescribed by the
30.4commissioner.
30.5(b) An applicant selected to participate must sign a contract to agree to serve a minimum
30.6one-year full-time service obligation according to subdivision 4. To complete the service
30.7obligation, the applicant must work full time in Minnesota as a qualified pilot or qualified
30.8aircraft technician. A participant must complete one year of service under this paragraph
30.9for each year the participant receives an award under this section.
30.10    Subd. 4. Service obligation. (a) Before receiving loan repayment disbursements and as
30.11requested, a participant must verify to the commissioner that the participant is employed in
30.12a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
30.13(b) If a participant does not fulfill the required service obligation, the commissioner
30.14must collect from the participant the total amount paid to the participant under the loan
30.15forgiveness program plus interest at a rate established according to section 270C.40. The
30.16commissioner must deposit the money collected in the aviation degree loan forgiveness
30.17account. The commissioner must allow waivers of all or part of the money owed the
30.18commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented
30.19fulfillment of the minimum service commitment.
30.20    Subd. 5. Loan forgiveness. (a) The commissioner may select eligible applicants each
30.21year for participation in the aviation degree loan forgiveness program, within the limits of
30.22available funding. Applicants are responsible for securing their own qualified education
30.23loans.
30.24(b) For each year that the participant meets the eligibility requirements under subdivision
30.253, the commissioner must make annual disbursements directly to:
30.26(1) a selected qualified pilot of $5,000 or the balance of the participant's qualified
30.27education loans, whichever is less; and
30.28(2) a selected qualified aircraft technician of $3,000 or the balance of the participant's
30.29qualified education loans, whichever is less.
30.30(c) An individual may receive disbursements under this section for a maximum of five
30.31years.
31.1(d) The participant must provide the commissioner with verification that the full amount
31.2of the loan repayment disbursement received by the participant has been applied toward the
31.3designated qualified education loan. After each disbursement, verification must be received
31.4by the commissioner and approved before the next repayment disbursement is made.
31.5(e) If the participant receives a disbursement in the participant's fifth year of eligibility,
31.6the participant must provide the commissioner with verification that the full amount of the
31.7participant's final loan repayment disbursement was applied toward the designated qualified
31.8education loan. If a participant does not provide the verification as required under this
31.9paragraph within six months of receipt of the final disbursement, the commissioner must
31.10collect from the participant the amount of the final disbursement. The commissioner must
31.11deposit the money collected in the aviation degree loan forgiveness program account.
31.12    Subd. 6. Rules. The commissioner may adopt rules to implement this section.

31.13    Sec. 12. [136A.1794] AGRICULTURAL EDUCATION LOAN FORGIVENESS
31.14PROGRAM.
31.15    Subdivision 1. Definitions. (a) For purposes of this section, the terms in this subdivision
31.16have the meanings given.
31.17(b) "Qualified education loan" means a government, commercial, or foundation loan for
31.18actual costs paid for tuition, reasonable education expenses, and reasonable living expenses
31.19related to the graduate or undergraduate education of a qualified teacher.
31.20(c) "Qualified teacher" means a teacher licensed under chapter 122A who:
31.21(1) is employed in a nonadministrative position teaching agricultural education in any
31.22grade from grades 5 through 12 at a Minnesota school during the current year; and
31.23(2) has completed an undergraduate or graduate program in agricultural education at a
31.24college or university approved by the state of Minnesota to prepare persons for teacher
31.25licensure.
31.26(d) "School" means the following:
31.27(1) a school or program operated by a school district or a group of school districts;
31.28(2) a tribal contract school eligible to receive aid according to section 124D.83;
31.29(3) a charter school; or
31.30(4) a private school.
32.1    Subd. 2. Account; appropriation. An agricultural education loan forgiveness account
32.2is established in the special revenue fund to provide qualified teachers with financial
32.3assistance to repay qualified education loans. Money in the account, including interest, is
32.4appropriated to the commissioner for purposes of this section.
32.5    Subd. 3. Eligibility. (a) To be eligible to participate in the loan forgiveness program
32.6under this section, an individual must:
32.7(1) be a qualified teacher;
32.8(2) have qualified education loans; and
32.9(3) submit an application to the commissioner in the form and manner prescribed by the
32.10commissioner.
32.11(b) An applicant selected to participate must sign a contract to agree to serve a minimum
32.12one-year full-time service obligation according to subdivision 4. To complete the service
32.13obligation, the applicant must work full time in Minnesota as a qualified teacher. A participant
32.14must complete one year of service under this paragraph for each year the participant receives
32.15an award under this section.
32.16    Subd. 4. Service obligation. (a) Before receiving loan repayment disbursements and as
32.17requested, a participant must verify to the commissioner that the participant is employed in
32.18a position that fulfills the service obligation as required under subdivision 3, paragraph (b).
32.19(b) If a participant does not fulfill the required service obligation, the commissioner
32.20must collect from the participant the total amount paid to the participant under the loan
32.21forgiveness program plus interest at a rate established according to section 270C.40. The
32.22commissioner must deposit the money collected in the agricultural education loan forgiveness
32.23account. The commissioner must allow waivers of all or part of the money owed the
32.24commissioner as a result of a nonfulfillment penalty if emergency circumstances prevented
32.25fulfillment of the minimum service commitment.
32.26    Subd. 5. Loan forgiveness. (a) The commissioner may select eligible applicants each
32.27year for participation in the agricultural education loan forgiveness program, within the
32.28limits of available funding. Applicants are responsible for securing their own qualified
32.29education loans.
32.30(b) The commissioner must make annual disbursements directly to the eligible participant
32.31of $3,000 or the balance of the participant's qualified education loans, whichever is less,
32.32for each year that the participant meets the eligibility requirements under subdivision 3, up
32.33to a maximum of five years.
33.1(c) The participant must provide the commissioner with verification that the full amount
33.2of the loan repayment disbursement received by the participant has been applied toward the
33.3designated qualified education loan. After each disbursement, verification must be received
33.4by the commissioner and approved before the next repayment disbursement is made.

33.5    Sec. 13. Minnesota Statutes 2016, section 136A.653, is amended by adding a subdivision
33.6to read:
33.7    Subd. 5. Regionally accredited institutions in Minnesota. (a) A regionally accredited
33.8postsecondary institution with its primary physical location in Minnesota is exempt from
33.9the provisions of sections 136A.61 to 136A.71, including related fees, when it creates new
33.10or modifies existing:
33.11(1) majors, minors, concentrations, specializations, and areas of emphasis within approved
33.12degrees;
33.13(2) nondegree programs within approved degrees;
33.14(3) underlying curriculum or courses;
33.15(4) modes of delivery; and
33.16(5) locations.
33.17(b) The institution must annually notify the commissioner of the exempt actions listed
33.18in paragraph (a) and, upon the commissioner's request, must provide additional information
33.19about the action.
33.20(c) The institution must notify the commissioner within 60 days of a program closing.
33.21(d) Nothing in this subdivision exempts an institution from the annual registration and
33.22degree approval requirements of sections 136A.61 to 136A.71.

33.23    Sec. 14. Minnesota Statutes 2016, section 136A.685, is amended to read:
33.24136A.685 PRIVATE INSTITUTIONS; ADJUDICATION OF FRAUD OR
33.25MISREPRESENTATION.
33.26The office shall not provide may revoke, or deny an application for, registration or degree
33.27or name approval to a school if there has been a criminal, civil, or administrative adjudication
33.28of fraud or misrepresentation in Minnesota or in another state or jurisdiction against the
33.29school or its owner, officers, agents, or sponsoring organization. If the adjudication was
33.30related to a particular academic program, the office may revoke degree approval, or deny
33.31an application for degree approval, for that program only.
34.1The adjudication of fraud or misrepresentation is sufficient cause for the office to
34.2determine that a school:
34.3(1) does not qualify for exemption under section 136A.657; or
34.4(2) is not approved to grant degrees or to use the term "academy," "college," "institute,"
34.5or "university" in its name.

34.6    Sec. 15. Minnesota Statutes 2016, section 136A.902, subdivision 1, is amended to read:
34.7    Subdivision 1. Membership. The commissioner shall appoint a 12-member 14-member
34.8advisory council consisting of:
34.9(1) one member representing the University of Minnesota Medical School;
34.10(2) one member representing the Mayo Medical School;
34.11(3) one member representing the Courage Kenny Rehabilitation Center;
34.12(4) one member representing Hennepin County Medical Center;
34.13(5) one member who is a neurosurgeon;
34.14(6) one member who has a spinal cord injury;
34.15(7) one member who is a family member of a person with a spinal cord injury;
34.16(8) one member who has a traumatic brain injury;
34.17(9) one member who is a veteran who has a spinal cord injury or a traumatic brain injury;
34.18(10) one member who is a veteran who has a traumatic brain injury;
34.19(11) one member who is a family member of a person with a traumatic brain injury;
34.20(11) (12) one member who is a physician specializing in the treatment of spinal cord
34.21injury representing Gillette Children's Specialty Healthcare; and
34.22(12) (13) one member who is a physician specializing in the treatment of traumatic brain
34.23injury; and
34.24(14) one member representing Gillette Children's Specialty Healthcare.

34.25    Sec. 16. [136F.38] WORKFORCE DEVELOPMENT SCHOLARSHIPS.
34.26    Subdivision 1. Program established. The board shall develop a scholarship program
34.27to incentivize new students to enter high-demand occupations upon graduation.
35.1    Subd. 2. Scholarship awards. The program shall award scholarships at the beginning
35.2of an academic term, in the amount of $2,500, to be distributed evenly between two terms.
35.3    Subd. 3. Program eligibility. (a) Scholarships shall be awarded only to a student eligible
35.4for resident tuition, as defined in section 135A.043, who is enrolled in any of the following
35.5programs of study or certification: (1) advanced manufacturing; (2) agriculture; (3) health
35.6care services; or (4) information technology.
35.7(b) The student must be enrolled for at least nine credits at a two-year college in the
35.8Minnesota State Colleges and Universities system.
35.9    Subd. 4. Renewal; cap. A student who has received a scholarship may apply again but
35.10total lifetime awards are not to exceed $5,000 per student. Students may only be awarded
35.11a second scholarship upon completion of two academic terms.
35.12    Subd. 5. Administration. (a) The board shall establish an application process and other
35.13guidelines for implementing this program.
35.14(b) The board shall give preference to students in financial need.
35.15    Subd. 6. Report required. The board must submit an annual report by February 1 of
35.16each year about the scholarship awards to the chairs and ranking minority members of the
35.17senate and house of representatives committees with jurisdiction over higher education
35.18finance and policy. The first report is due no later than February 1, 2019. The annual report
35.19shall describe the following:
35.20(1) the number of students receiving a scholarship at each two-year college during the
35.21previous fiscal year;
35.22(2) the number of scholarships awarded for each program of study or certification
35.23described in subdivision 3, paragraph (a);
35.24(3) the number of scholarship recipients who completed a program of study or certification
35.25described in subdivision 3, paragraph (a);
35.26(4) the number of scholarship recipients who secured employment by their graduation
35.27date and those who secured employment within three months of their graduation date;
35.28(5) a list of occupations scholarship recipients are entering; and
35.29(6) the number of students who were denied a scholarship.

36.1    Sec. 17. [137.45] PROGRAM FOR STUDENTS WITH INTELLECTUAL AND
36.2DEVELOPMENTAL DISABILITIES.
36.3    Subdivision 1. Program required. The Board of Regents of the University of Minnesota
36.4is requested to offer an academic program for students with intellectual and developmental
36.5disabilities at the University of Minnesota-Morris.
36.6    Subd. 2. Enrollment and admission. The program must establish an enrollment goal
36.7of at least 15 incoming students per academic year. The board must establish an application
36.8process for the program. A student who successfully completes the program must be awarded
36.9a certificate, diploma, or other appropriate academic credential.
36.10    Subd. 3. Curriculum and activities. (a) The program must provide an inclusive,
36.11full-time, two-year residential college experience for students with intellectual and
36.12developmental disabilities. The curriculum must include:
36.13(1) core courses that develop life skills, financial literacy, and the ability to live
36.14independently;
36.15(2) rigorous academic work in a student's chosen field of study; and
36.16(3) an internship, apprenticeship, or other skills-based experience to prepare for
36.17meaningful employment upon completion of the program.
36.18(b) In addition to academic requirements, the program must allow participating students
36.19the opportunity to engage fully in campus life. Program activities must include, but are not
36.20limited to:
36.21(1) the establishment of on-campus mentoring and peer support communities; and
36.22(2) opportunities for personal growth through leadership development and other
36.23community engagement activities.
36.24(c) The program may tailor its curriculum and activities to highlight academic programs,
36.25student and community life experiences, and employment opportunities unique to the campus
36.26or the region where the campus is located.
36.27    Subd. 4. Reporting. By January 15 of each year, the board must submit a report on the
36.28program to the chairs and ranking minority members of the committees in the house of
36.29representatives and the senate with jurisdiction over higher education finance and policy.
36.30The report must include, but need not be limited to, information regarding:
36.31(1) the number of students participating in the program;
36.32(2) program goals and outcomes; and
37.1(3) the success rate of participants.
37.2EFFECTIVE DATE.This section is effective beginning in the 2018-2019 academic
37.3year.

37.4    Sec. 18. [137.47] FETAL TISSUE RESEARCH.
37.5    Subdivision 1. Definitions. (a) For purposes of this section, the terms in this subdivision
37.6have the meanings given them.
37.7(b) "Aborted fetal tissue" means fetal tissue that is available as a result of an elective
37.8abortion.
37.9(c) "Fetal tissue" means any body part, organ, or cell of an unborn human child. Fetal
37.10tissue does not include tissue or cells obtained from a placenta, umbilical cord, or amniotic
37.11fluid.
37.12(d) "Institutional Review Board" or "IRB" means the University of Minnesota's
37.13Institutional Review Board, the primary unit responsible for oversight of human subjects
37.14research protections.
37.15(e) "Fetal Tissue Research Committee" or "FTR" means an oversight committee at the
37.16University of Minnesota with the responsibility to oversee, review, and approve or deny
37.17research using fetal tissue.
37.18(f) "Non-aborted fetal tissue" means fetal tissue that is available as a result of a
37.19miscarriage or stillbirth, or fetal tissue from a living unborn child.
37.20(g) "Research" means systematic investigation, including development, testing, and
37.21evaluation, designed to develop or contribute to generalizable knowledge. Research does
37.22not include a procedure or test administered to a particular patient by a physician for medical
37.23purposes.
37.24    Subd. 2. Approval by the Fetal Tissue Research Committee. (a) A researcher at the
37.25University of Minnesota must obtain approval from the FTR before conducting research
37.26using fetal tissue. The FTR must consider whether alternatives to fetal tissue would be
37.27sufficient for the research. If the proposed research involves aborted fetal tissue, the
37.28researcher must provide a written narrative justifying the use of aborted fetal tissue and
37.29discussing whether alternatives to aborted fetal tissue, including non-aborted fetal tissue,
37.30can be used.
37.31(b) The FTR must submit its decision to the IRB. The IRB is requested to review the
37.32conclusions of the FTR to ensure that all alternatives have been considered.
38.1    Subd. 3. Legislative report. (a) No later than January 15 of each year, the Board of
38.2Regents must submit a report to the chairs and ranking minority members of the legislative
38.3committees with jurisdiction over higher education policy and finance and health and human
38.4services policy and finance. The report must describe:
38.5(1) all fetal tissue research proposals submitted to the FTR or IRB, including any written
38.6narrative required under subdivision 2;
38.7(2) whether the research proposal involved aborted fetal tissue;
38.8(3) action by the FTR or IRB on all fetal tissue research proposals, including whether
38.9the proposal was approved by the FTR or IRB;
38.10(4) a list of all new or ongoing fetal tissue research projects at the university, including:
38.11(i) the date that the project was approved by the FTR or IRB;
38.12(ii) the source of funding for the project;
38.13(iii) the goal or purpose of the project;
38.14(iv) whether the fetal tissue used is aborted fetal tissue or non-aborted fetal tissue;
38.15(v) the source of the fetal tissue used;
38.16(vi) references to any publicly available information about the project, such as National
38.17Institutes of Health grant award information; and
38.18(vii) references to any publications resulting from the project.
38.19(b) The report must not include a researcher's name, other identifying information,
38.20contact information, or the location of a laboratory or office.
38.21    Subd. 4. Education on compliance to applicable laws and policies. The University
38.22of Minnesota is requested to conduct education programs for all students and employees
38.23engaged in research on fetal tissue. Programs are requested to include mandatory
38.24comprehensive training on applicable federal and state laws, university policies and
38.25procedures, and other professional standards related to the respectful, humane, and ethical
38.26treatment of fetal tissue in research.

38.27    Sec. 19. Minnesota Statutes 2016, section 148.89, subdivision 5, is amended to read:
38.28    Subd. 5. Practice of psychology. "Practice of psychology" means the observation,
38.29description, evaluation, interpretation, or modification of human behavior by the application
38.30of psychological principles, methods, or procedures for any reason, including to prevent,
38.31eliminate, or manage symptomatic, maladaptive, or undesired behavior and to enhance
39.1interpersonal relationships, work, life and developmental adjustment, personal and
39.2organizational effectiveness, behavioral health, and mental health. The practice of psychology
39.3includes, but is not limited to, the following services, regardless of whether the provider
39.4receives payment for the services:
39.5(1) psychological research and teaching of psychology subject to the exemptions in
39.6section 148.9075;
39.7(2) assessment, including psychological testing and other means of evaluating personal
39.8characteristics such as intelligence, personality, abilities, interests, aptitudes, and
39.9neuropsychological functioning;
39.10(3) a psychological report, whether written or oral, including testimony of a provider as
39.11an expert witness, concerning the characteristics of an individual or entity;
39.12(4) psychotherapy, including but not limited to, categories such as behavioral, cognitive,
39.13emotive, systems, psychophysiological, or insight-oriented therapies; counseling; hypnosis;
39.14and diagnosis and treatment of:
39.15(i) mental and emotional disorder or disability;
39.16(ii) alcohol and substance dependence or abuse;
39.17(iii) disorders of habit or conduct;
39.18(iv) the psychological aspects of physical illness or condition, accident, injury, or
39.19disability, including the psychological impact of medications;
39.20(v) life adjustment issues, including work-related and bereavement issues; and
39.21(vi) child, family, or relationship issues;
39.22(5) psychoeducational services and treatment; and
39.23(6) consultation and supervision.

39.24    Sec. 20. [148.9075] LICENSURE EXEMPTIONS.
39.25    Subdivision 1. Teaching and research. Nothing in sections 148.88 to 148.98 shall be
39.26construed to prevent a person employed in a secondary, postsecondary, or graduate institution
39.27from teaching and conducting research in psychology within an educational institution that
39.28is recognized by a regional accrediting organization or by a federal, state, county, or local
39.29government institution, agency, or research facility, so long as:
39.30(1) the institution, agency, or facility provides appropriate oversight mechanisms to
39.31ensure public protections; and
40.1(2) the person is not providing direct clinical services to a client or clients as defined in
40.2sections 148.88 to 148.98.
40.3    Subd. 2. Students. Nothing in sections 148.88 to 148.98 shall prohibit the practice of
40.4psychology under qualified supervision by a practicum psychology student, a predoctoral
40.5psychology intern, or an individual who has earned a doctoral degree in psychology and is
40.6in the process of completing their postdoctoral supervised psychological employment.

40.7    Sec. 21. [298.2215] COUNTY SCHOLARSHIP PROGRAM.
40.8    Subdivision 1. Establishment. A county may establish a scholarship fund from any
40.9unencumbered revenue received pursuant to section 298.018, 298.28, 298.39, 298.396, or
40.10298.405 or any law imposing a tax upon severed mineral values. Scholarships must be used
40.11at a two-year Minnesota State Colleges and Universities institution within the county. The
40.12county shall establish procedures for applying for and distributing the scholarships.
40.13    Subd. 2. Eligibility. An applicant for a scholarship under this section must be a resident
40.14of the county at the time of the applicant's high school graduation. The county may establish
40.15additional eligibility criteria.

40.16    Sec. 22. Laws 2014, chapter 312, article 1, section 15, is amended to read:
40.17    Sec. 15. UNIVERSITY OF MINNESOTA BASE ADJUSTMENT.
40.18    (a) For fiscal years 2016 to 2041 2017, $3,500,000 is added to the base operations and
40.19maintenance appropriation to the Board of Regents of the University of Minnesota in Laws
40.202013, chapter 99, article 1, section 5.
40.21(b) For fiscal years 2018 to 2040, $3,312,000 is added to the base operations and
40.22maintenance appropriation to the Board of Regents of the University of Minnesota in Laws
40.232013, chapter 99, article 1, section 5.

40.24    Sec. 23. DEVELOPMENTAL EDUCATION REFORM.
40.25(a) The Board of Trustees of the Minnesota State Colleges and Universities shall create
40.26a plan to reform developmental education offerings on system campuses aimed at reducing
40.27the number of students placed into developmental education. The plan must include, but is
40.28not limited to:
40.29(1) a systemwide multiple measures placement plan to guide campuses in placement of
40.30students into developmental education courses;
41.1(2) uniform cut scores for student placement, where appropriate, which will lead to fewer
41.2students being placed into developmental education courses;
41.3(3) other identified system policy changes, including an appeals process, that will decrease
41.4the number of students being placed into developmental education courses;
41.5(4) accelerated pathways in mathematics, reading, and composition to ensure students
41.6can complete developmental education work in no more than one year, including allowing
41.7for students to complete college-level gateway courses in one year whenever possible;
41.8(5) a comprehensive examination of the cost structure of developmental education,
41.9including potential financial incentives for students or other mechanisms to lower the cost
41.10of developmental offerings for students; and
41.11(6) identified best practices and targeted support strategies such as the use of supplemental
41.12instruction, that may be used on every system campus around developmental education
41.13offerings.
41.14(b) The plan must include deadlines for implementation of proposed changes and must
41.15be submitted to the chairs and ranking minority members of the legislative committees with
41.16jurisdiction over higher education finance and policy by February 15, 2018.
41.17(c) The plan, in its entirety, shall be implemented by the start of the 2020-2021 academic
41.18term, with individual provisions being implemented earlier as dictated by the plan.

41.19    Sec. 24. GREATER MINNESOTA OUTREACH AND RECRUITMENT.
41.20The Board of Regents of the University of Minnesota is requested to develop a plan to
41.21conduct outreach and recruitment of students from Minnesota, specifically identifying
41.22mechanisms to increase the number of students from greater Minnesota who are admitted
41.23to the university campus located in the metropolitan area. Greater Minnesota is defined as
41.24any area other than the area described in Minnesota Statutes, section 473.121, subdivision
41.254. The plan must be submitted to the chairs and ranking members of the senate and house
41.26of representatives legislative committees with jurisdiction over higher education finance
41.27and policy by February 15, 2018.

41.28    Sec. 25. UNIVERSITY OF MINNESOTA FETAL TISSUE RESEARCH;
41.29LEGISLATIVE AUDITOR REVIEW.
41.30(a) The legislative auditor is requested to complete a comprehensive review of the use
41.31of fetal tissue in research activities at the University of Minnesota. The review must include:
42.1(1) the total number of research activities in which fetal tissue is currently or has been
42.2previously used, including those that are in progress and those that have been completed;
42.3(2) the cost of acquiring fetal tissues for use in research activities, itemized by the source
42.4of funds used for procurement, including funds from federal, state, and other public sources,
42.5and funds derived from student tuition and fees;
42.6(3) the extent to which the conduct of the research activities complies with applicable
42.7federal and state laws related to acquisition, sale, handling, and disposition of human tissues,
42.8including fetal tissues;
42.9(4) the extent to which the conduct of the research activities complies with applicable
42.10Board of Regents policies and procedures related to acquisition, sale, handling, and
42.11disposition of human tissues, including fetal tissues; and
42.12(5) whether applicable Board of Regents policies include provisions to ensure fetal tissue
42.13is used in research activities only when necessary, and to ensure that the research activities
42.14are conducted in an ethical manner, including whether procedures and protocols for oversight
42.15have been implemented to verify compliance with these policies.
42.16(b) As used in this section, "research activities" include any academic fetal tissue research
42.17or fetal tissue transplantation research activity or program conducted in a University of
42.18Minnesota facility, or that is supported, directly or indirectly, by University of Minnesota
42.19funds.
42.20EFFECTIVE DATE.This section is effective the day following final enactment. The
42.21legislative auditor is requested to complete the review no later than 60 days following final
42.22enactment.

42.23    Sec. 26. STATE GRANT REPORT.
42.24(a) The commissioner of higher education must report to the legislature the estimated
42.25amount of funding necessary for the state grant program to fully meet the financial aid needs
42.26of lower- and middle-income Minnesota college students based on the program's shared
42.27responsibility design. The report must include an estimate of:
42.28(1) the amount a student should be expected to contribute toward the cost of education
42.29through borrowing and employment;
42.30(2) the amount a student's family should be expected to contribute toward the cost of
42.31education, based on the family's financial circumstances;
43.1(3) the actual living and miscellaneous expenses of a student, including room, board,
43.2transportation, and the cost of textbooks; and
43.3(4) equitable tuition maximums for public and nonprofit institutions that reflect both
43.4tuition charged and the subsidy provided to all students at public institutions received through
43.5direct appropriations.
43.6(b) The commissioner must submit the report to the higher education committees of the
43.7legislature by October 15, 2017.

43.8    Sec. 27. UNIVERSITY OF MINNESOTA TUITION.
43.9(a) For the 2018-2019 and 2019-2020 academic years, the Board of Regents of the
43.10University of Minnesota is encouraged to continue to adopt tuition schedules for the
43.11University of Minnesota Twin Cities campus that:
43.12(1) move the nonresident undergraduate tuition rate for a full-time student toward the
43.13median nonresident undergraduate tuition rate for public Big Ten universities;
43.14(2) move the resident undergraduate tuition rate for a full-time student toward the median
43.15of resident undergraduate tuition rates for public Big Ten universities;
43.16(3) move the nonresident graduate tuition rate in each graduate program for a full-time
43.17student toward the median of nonresident graduate tuition rates for public Big Ten universities
43.18with a similar program; and
43.19(4) move the resident graduate tuition rate in each graduate program for a full-time
43.20student toward the median of resident graduate tuition rates for public Big Ten universities
43.21with a similar program.
43.22(b) For purposes of this section, "public Big Ten university" means the flagship campus
43.23for public universities that are members of the Big Ten Conference.

43.24    Sec. 28. LIVING AND MISCELLANEOUS EXPENSE ALLOWANCE.
43.25The living and miscellaneous expense allowance for the state grant program under
43.26Minnesota Statutes, section 136A.121, for the biennium ending June 30, 2019, is set at
43.27$9,320 for each fiscal year of the biennium.

43.28    Sec. 29. ONGOING APPROPRIATION.
43.29The appropriation under Laws 2016, chapter 189, article 25, section 62, subdivision 11,
43.30may be used to provide grants for any purpose under Minnesota Statutes, section 136A.1275.

44.1ARTICLE 3
44.2OFFICE OF HIGHER EDUCATION AGENCY POLICY

44.3    Section 1. Minnesota Statutes 2016, section 135A.15, subdivision 1a, is amended to read:
44.4    Subd. 1a. Sexual assault definition. For the purposes of this section, "sexual assault"
44.5means forcible sex offenses rape, sex offenses - fondling, sex offenses - incest, or sex
44.6offenses - statutory rape as defined in Code of Federal Regulations, title 34, part 668, subpart
44.7D, appendix A, as amended.

44.8    Sec. 2. Minnesota Statutes 2016, section 136A.103, is amended to read:
44.9136A.103 INSTITUTION ELIGIBILITY REQUIREMENTS.
44.10    (a) A postsecondary institution is eligible for state student aid under chapter 136A and
44.11sections 197.791 and 299A.45, if the institution is located in this state and:
44.12    (1) is operated by this state or the Board of Regents of the University of Minnesota; or
44.13    (2) is operated privately and, as determined by the office, meets the requirements of
44.14paragraph (b).
44.15    (b) A private institution must:
44.16    (1) maintain academic standards substantially equivalent to those of comparable
44.17institutions operated in this state;
44.18    (2) be licensed or registered as a postsecondary institution by the office; and
44.19    (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
44.20the Higher Education Act of 1965, Public Law 89-329, as amended; or
44.21    (ii) if an institution was participating in state student aid programs as of June 30, 2010,
44.22and the institution did not participate in the federal Pell Grant program by June 30, 2010,
44.23the institution must require every student who enrolls to sign a disclosure form, provided
44.24by the office, stating that the institution is not participating in the federal Pell Grant program.
44.25    (c) An institution that offers only graduate-level degrees or graduate-level nondegree
44.26programs, or that offers only degrees or programs that do not meet the required minimum
44.27program length to participate in the federal Pell Grant program, is an eligible institution if
44.28the institution is licensed or registered as a postsecondary institution by the office.
45.1    (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
45.2ownership as defined in section 136A.63, subdivision 2, must participate in the federal Pell
45.3Grant program within four calendar years of the first ownership change to continue eligibility.
45.4    (e) An institution that loses its eligibility for the federal Pell Grant program is not an
45.5eligible institution.
45.6(f) An institution must maintain adequate administrative and financial standards and
45.7compliance with all state statutes, rules, and administrative policies related to state financial
45.8aid programs.

45.9    Sec. 3. Minnesota Statutes 2016, section 136A.1795, subdivision 4, is amended to read:
45.10    Subd. 4. Loan forgiveness. (a) The commissioner may select a maximum of five
45.11applicants each year for participation in the loan forgiveness program, within the limits of
45.12available funding. Applicants are responsible for securing their own qualified educational
45.13loans.
45.14(b) The commissioner must select participants based on their suitability for practice
45.15serving the designated rural area, as indicated by experience or training. The commissioner
45.16must give preference to applicants closest to completing their training.
45.17(c) The commissioner must make annual disbursements directly to the participant of
45.18$15,000 or the balance of the participant's qualifying educational loans, whichever is less,
45.19for each year that a participant meets the service obligation required under subdivision 3,
45.20paragraph (b), up to a maximum of five years.
45.21(d) Before receiving loan repayment disbursements and as requested, the participant
45.22must complete and return to the commissioner an affidavit a confirmation of practice form
45.23provided by the commissioner verifying that the participant is practicing as required under
45.24subdivision 2, paragraph (a). The participant must provide the commissioner with verification
45.25that the full amount of loan repayment disbursement received by the participant has been
45.26applied toward the designated loans. After each disbursement, verification must be received
45.27by the commissioner and approved before the next loan repayment disbursement is made.
45.28(e) Participants who move their practice remain eligible for loan repayment as long as
45.29they practice as required under subdivision 2, paragraph (a).

45.30    Sec. 4. Minnesota Statutes 2016, section 136A.62, is amended by adding a subdivision to
45.31read:
45.32    Subd. 8. Entity. "Entity" means a specific school or campus location.

46.1    Sec. 5. Minnesota Statutes 2016, section 136A.646, is amended to read:
46.2136A.646 ADDITIONAL SECURITY.
46.3    (a) In the event New schools that have been granted conditional approval for degrees or
46.4names to allow them the opportunity to apply for and receive accreditation under section
46.5136A.65, subdivision 7, or any registered institution that is notified by the United States
46.6Department of Education that it has fallen below minimum financial standards and that its
46.7continued participation in Title IV will be conditioned upon its satisfying either the Zone
46.8Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter
46.9of Credit Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c),
46.10the institution shall provide a surety bond conditioned upon the faithful performance of all
46.11contracts and agreements with students in a sum equal to the "letter of credit" required by
46.12the United States Department of Education in the Letter of Credit Alternative, but in no
46.13event shall such bond be less than $10,000 nor more than $250,000.
46.14    (b) In lieu of a bond, the applicant may deposit with the commissioner of management
46.15and budget:
46.16    (1) a sum equal to the amount of the required surety bond in cash; or
46.17    (2) securities, as may be legally purchased by savings banks or for trust funds, in an
46.18aggregate market value equal to the amount of the required surety bond.; or
46.19    (3) an irrevocable letter of credit issued by a financial institution to the amount of the
46.20required surety bond.
46.21    (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to the
46.22office and shall be relieved of liability for any breach of condition occurring after the
46.23effective date of cancellation.
46.24(d) In the event of a school closure, the additional security must first be used to destroy
46.25any private educational data under section 13.32 left at a physical campus in Minnesota
46.26after all other governmental agencies have recovered or retrieved records under their record
46.27retention policies. Any remaining funds must then be used to reimburse tuition and fee costs
46.28to students that were enrolled at the time of the closure or had withdrawn in the previous
46.29120 calendar days but did not graduate. Priority for refunds will be given to students in the
46.30following order:
46.31(1) cash payments made by the student or on behalf of a student;
46.32(2) private student loans; and
47.1(3) Veteran Administration education benefits that are not restored by the Veteran
47.2Administration. If there are additional security funds remaining, the additional security
47.3funds may be used to cover any administrative costs incurred by the office related to the
47.4closure of the school.

47.5    Sec. 6. Minnesota Statutes 2016, section 136A.65, subdivision 1a, is amended to read:
47.6    Subd. 1a. Accreditation; requirement. (a) A school must not be registered or authorized
47.7to offer any degree at any level unless the school is accredited has institutional accreditation
47.8by an agency recognized by the United States Department of Education for purposes of
47.9eligibility to participate in Title IV federal financial aid programs. Any registered school
47.10undergoing institutional accreditation shall inform the office of site visits by the accrediting
47.11agency and provide office staff the opportunity to attend the visits, including excluding any
47.12exit interviews. The institution must provide the office with a copy of the final report upon
47.13receipt request of the office.
47.14    (b) A school must not be authorized to offer any degree unless the program has
47.15programmatic accreditation or the school has institutional accreditation by an agency
47.16recognized by the United States Department of Education for purposes of eligibility to
47.17participate in Title IV federal financial aid programs. Any program offered by a registered
47.18school that does not have institutional accreditation and is undergoing programmatic
47.19accreditation shall inform the office of site visits by the accrediting agency and provide
47.20office staff the opportunity to attend the visits, excluding any exit interviews. The school
47.21must provide the office with a copy of the final report by the accreditor upon request of the
47.22office.

47.23    Sec. 7. Minnesota Statutes 2016, section 136A.65, subdivision 4, is amended to read:
47.24    Subd. 4. Criteria for approval. (a) A school applying to be registered and to have its
47.25degree or degrees and name approved must substantially meet the following criteria:
47.26    (1) the school has an organizational framework with administrative and teaching personnel
47.27to provide the educational programs offered;
47.28    (2) the school has financial resources sufficient to meet the school's financial obligations,
47.29including refunding tuition and other charges consistent with its stated policy if the institution
47.30is dissolved, or if claims for refunds are made, to provide service to the students as promised,
47.31and to provide educational programs leading to degrees as offered;
48.1    (3) the school operates in conformity with generally accepted budgeting and accounting
48.2principles according to the type of school;
48.3    (4) the school provides an educational program leading to the degree it offers;
48.4    (5) the school provides appropriate and accessible library, laboratory, and other physical
48.5facilities to support the educational program offered;
48.6    (6) the school has a policy on freedom or limitation of expression and inquiry for faculty
48.7and students which is published or available on request;
48.8    (7) the school uses only publications and advertisements which are truthful and do not
48.9give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the school,
48.10its personnel, programs, services, or occupational opportunities for its graduates for promotion
48.11and student recruitment;
48.12    (8) the school's compensated recruiting agents who are operating in Minnesota identify
48.13themselves as agents of the school when talking to or corresponding with students and
48.14prospective students;
48.15    (9) the school provides information to students and prospective students concerning:
48.16    (i) comprehensive and accurate policies relating to student admission, evaluation,
48.17suspension, and dismissal;
48.18    (ii) clear and accurate policies relating to granting credit for prior education, training,
48.19and experience and for courses offered by the school;
48.20    (iii) current schedules of fees, charges for tuition, required supplies, student activities,
48.21housing, and all other standard charges;
48.22    (iv) policies regarding refunds and adjustments for withdrawal or modification of
48.23enrollment status; and
48.24    (v) procedures and standards used for selection of recipients and the terms of payment
48.25and repayment for any financial aid program; and
48.26    (10) the school must not withhold a student's official transcript because the student is
48.27in arrears or in default on any loan issued by the school to the student if the loan qualifies
48.28as an institutional loan under United States Code, title 11, section 523(a)(8)(b).
48.29    (b) An application for degree approval must also include:
48.30    (i) title of degree and formal recognition awarded;
48.31    (ii) location where such degree will be offered;
49.1    (iii) proposed implementation date of the degree;
49.2    (iv) admissions requirements for the degree;
49.3    (v) length of the degree;
49.4    (vi) projected enrollment for a period of five years;
49.5    (vii) the curriculum required for the degree, including course syllabi or outlines;
49.6    (viii) statement of academic and administrative mechanisms planned for monitoring the
49.7quality of the proposed degree;
49.8    (ix) statement of satisfaction of professional licensure criteria, if applicable;
49.9    (x) documentation of the availability of clinical, internship, externship, or practicum
49.10sites, if applicable; and
49.11    (xi) statement of how the degree fulfills the institution's mission and goals, complements
49.12existing degrees, and contributes to the school's viability.

49.13    Sec. 8. Minnesota Statutes 2016, section 136A.65, subdivision 7, is amended to read:
49.14    Subd. 7. Conditional approval. (a) The office may grant a school a one-year conditional
49.15approval for a degree or use of a term in its name for a period of less than one year if doing
49.16so would be in the best interests of currently enrolled students or prospective students.
49.17Conditional approval of a degree or use of a term under this paragraph must not exceed a
49.18period of three years.
49.19    (b) The office may grant new schools may be granted and programs a one-year conditional
49.20approval for degrees or names annually for a period not to exceed five years use of a term
49.21in its name to allow them the school the opportunity to apply for and receive accreditation
49.22as required in subdivision 1a. Conditional approval of a school or program under this
49.23paragraph must not exceed a period of five years. A new school or program granted
49.24conditional approval may be allowed to continue as a registered institution in order to
49.25complete an accreditation process upon terms and conditions the office determines.
49.26    (c) The office may grant a registered school a one-year conditional approval for degrees
49.27or use of a term in its name to allow the school the opportunity to apply for and receive
49.28accreditation as required in subdivision 1a if the school's accrediting agency is no longer
49.29recognized by the United States Department of Education for purposes of eligibility to
49.30participate in Title IV federal financial aid programs. The office must not grant conditional
49.31approvals under this paragraph to a school for a period of more than five years.
50.1    (d) The office may grant a registered school a one-year conditional approval for degrees
50.2or use of a term in its name to allow the school to change to a different accrediting agency
50.3recognized by the United States Department of Education for purposes of eligibility to
50.4participate in Title IV federal financial aid programs. The office must not grant conditional
50.5approvals under this paragraph to a school for a period of more than five years.

50.6    Sec. 9. Minnesota Statutes 2016, section 136A.653, is amended to read:
50.7136A.653 EXEMPTIONS.
50.8    Subdivision 1. Application. A school that seeks an exemption under this section from
50.9the provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the
50.10school meets the requirements of an exemption. An exemption expires two years from the
50.11date of approval or until a school adds a new program or makes a modification equal to or
50.12greater than 25 percent to an existing educational program. If a school is reapplying for an
50.13exemption, the application must be submitted to the office 90 days before the current
50.14exemption expires.
50.15    Subdivision 1. Subd. 1a. Exemption Private career schools. A school that is subject
50.16to licensing by the office under sections 136A.82 to 136A.834 is exempt from the provisions
50.17of sections 136A.61 to 136A.71. The determination of the office as to whether a particular
50.18school is subject to regulation under sections 136A.82 to 136A.834 is final for the purposes
50.19of this exemption.
50.20    Subd. 2. Educational program; nonprofit organizations. Educational programs which
50.21are sponsored by a bona fide and nonprofit trade, labor, business, professional or fraternal
50.22organization, which programs are conducted solely for that organization's membership or
50.23for the members of the particular industries or professions served by that organization, and
50.24which are not available to the public on a fee basis, are exempted from the provisions of
50.25sections 136A.61 to 136A.71.
50.26    Subd. 3. Educational program; business firms. Educational programs which are
50.27sponsored by a business firm for the training of its employees or the employees of other
50.28business firms with which it has contracted to provide educational services at no cost to the
50.29employees are exempted from the provisions of sections 136A.61 to 136A.71.
50.30    Subd. 3a. Tuition-free educational courses. A school, including a school using an
50.31online platform service, offering training, courses, or programs is exempt from sections
50.32136A.61 to 136A.71, to the extent it offers tuition-free courses to students in Minnesota. A
50.33course will be considered tuition-free if the school charges no tuition and the required fees
51.1and other required charges paid by the student for the course tuition, fees, and any other
51.2charges for a student to participate do not exceed two percent of the most recent average
51.3undergraduate tuition and required fees as of January 1 of the current year charged for
51.4full-time students at all degree-granting institutions as published annually by the United
51.5States Department of Education as of January 1 of each year. To qualify for an exemption,
51.6a school or online platform service must prominently display a notice comparable to the
51.7following: "IMPORTANT: Each educational institution makes its own decision regarding
51.8whether to accept completed coursework for credit. Check with your university or college."
51.9    Subd. 4. Voluntary submission. Any school or program exempted from the provisions
51.10of sections 136A.61 to 136A.71 by the provisions of this section may voluntarily submit to
51.11the provisions of those sections.

51.12    Sec. 10. Minnesota Statutes 2016, section 136A.657, is amended by adding a subdivision
51.13to read:
51.14    Subd. 5. Application. A school that seeks an exemption under this section from the
51.15provisions of sections 136A.61 to 136A.71 must apply to the office to establish that the
51.16school meets the requirements of an exemption. An exemption expires two years from the
51.17date of approval or when a school adds a new program or makes a modification equal to or
51.18greater than 25 percent to an existing educational program. If a school is reapplying for an
51.19exemption, the application must be submitted to the office 90 days before the current
51.20exemption expires.

51.21    Sec. 11. Minnesota Statutes 2016, section 136A.67, is amended to read:
51.22136A.67 REGISTRATION REPRESENTATIONS.
51.23    No school and none of its officials or employees shall advertise or represent in any
51.24manner that such school is approved or accredited by the office or the state of Minnesota,
51.25except a school which is duly registered with the office, or any of its officials or employees,
51.26may represent in advertising and shall disclose in catalogues, applications, and enrollment
51.27materials that the school is registered with the office by prominently displaying the following
51.28statement: "(Name of school) is registered with the office Minnesota Office of Higher
51.29Education pursuant to sections 136A.61 to 136A.71. Registration is not an endorsement of
51.30the institution. Credits earned at the institution may not transfer to all other institutions." In
51.31addition, all registered schools shall publish in the school catalog or student handbook the
51.32name, street address, telephone number, and Web site address of the office.

52.1    Sec. 12. [136A.672] STUDENT COMPLAINTS.
52.2    Subdivision 1. Authority. The office has the authority to review and take appropriate
52.3action on student complaints from schools covered under the provisions of sections 136A.61
52.4to 136A.71.
52.5    Subd. 2. Complaint. A complaint must be in writing, be signed by a student, and state
52.6how the school's policies and procedures or sections 136A.61 to 136A.71 were violated.
52.7Student complaints shall be limited to complaints that occurred within six years from the
52.8date the concern should have been discovered with reasonable effort and after the student
52.9has utilized the school's internal complaint process. Students do not have to utilize a school's
52.10internal complaint process before the office has authority when the student is alleging fraud
52.11or misrepresentation. The office shall not investigate grade disputes, student conduct
52.12proceedings, disability accommodation requests, and discrimination claims, including Title
52.13IX complaints.
52.14    Subd. 3. Investigation. The office shall initiate an investigation upon receipt of a
52.15complaint within the authority of subdivision 2. A school involved in an investigation shall
52.16be informed of the alleged violations and the processes of the investigation. A school
52.17involved in an investigation shall respond to the alleged violations and provide requested
52.18documentation to the office. Upon completing an investigation, the office shall inform the
52.19school and the student of the investigation outcome.
52.20    Subd. 4. Penalties. If violations are found, the office may require remedial action by
52.21the school or assign a penalty under section 136A.705. Remedial action may include student
52.22notification of violations, adjustments to the school's policies and procedures, and tuition
52.23or fee refunds to impacted students.

52.24    Sec. 13. Minnesota Statutes 2016, section 136A.68, is amended to read:
52.25136A.68 RECORDS.
52.26    A registered school shall maintain a permanent record for each student for 50 years from
52.27the last date of the student's attendance. A registered school offering distance instruction to
52.28a student located in Minnesota shall maintain a permanent record for each Minnesota student
52.29for 50 years from the last date of the student's attendance. Records include a student's
52.30academic transcript, documents, and files containing student data about academic credits
52.31earned, courses completed, grades awarded, degrees awarded, and periods of attendance.
52.32To preserve permanent records, a school shall submit a plan that meets the following
52.33requirements:
53.1    (1) at least one copy of the records must be held in a secure, fireproof depository or
53.2duplicate records must be maintained off site in a secure location and in a manner approved
53.3by the office;
53.4    (2) an appropriate official must be designated to provide a student with copies of records
53.5or a transcript upon request;
53.6    (3) an alternative method approved by the office of complying with clauses (1) and (2)
53.7must be established if the school ceases to exist; and
53.8    (4) if the school has no binding agreement approved by the office for preserving student
53.9records, a continuous surety bond or an irrevocable letter of credit issued by a financial
53.10institution must be filed with the office in an amount not to exceed $20,000. The bond or
53.11irrevocable letter of credit shall run to the state of Minnesota. In the event of a school closure,
53.12the surety bond or irrevocable letter of credit must be used by the office to retrieve, recover,
53.13maintain, digitize, and destroy academic records.

53.14    Sec. 14. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
53.15to read:
53.16    Subd. 13. Compliance audit. "Compliance audit" means an audit of a school's compliance
53.17with federal requirements related to its participation in federal Title IV student aid programs
53.18or other federal grant programs performed under either Uniform Grant Guidance, including
53.19predecessor Federal Circular A-133, or the United States Department of Education's audit
53.20guide, Audits of Federal Student Financial Assistance Programs at Participating Institutions
53.21and Institution Servicers.

53.22    Sec. 15. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
53.23to read:
53.24    Subd. 14. Entity. "Entity" means a specific school or campus location.

53.25    Sec. 16. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
53.26to read:
53.27    Subd. 15. Higher-level entity. "Higher-level entity" means a corporate parent or ultimate
53.28parent company or, in the case of a public school, the larger public system of which an
53.29entity is a part.

54.1    Sec. 17. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
54.2to read:
54.3    Subd. 16. Audited financial statements. "Audited financial statements" means the
54.4financial statements of an entity or higher-level entity that have been examined by a certified
54.5public accountant or an equivalent government agency for public entities that include (1)
54.6an auditor's report, a statement of financial position, an income statement, a statement of
54.7cash flows, and notes to the financial statements or (2) the required equivalents for public
54.8entities as determined by the Financial Accounting Standards Board, the Governmental
54.9Accounting Standards Board, or the Securities and Exchange Commission.

54.10    Sec. 18. Minnesota Statutes 2016, section 136A.821, is amended by adding a subdivision
54.11to read:
54.12    Subd. 17. Review-level engagement. "Review-level engagement" means a service
54.13performed by a certified public accountant that provides limited assurance that there are no
54.14material modifications that need to be made to an entity's financial statements in order for
54.15them to conform to generally accepted accounting principles. Review-level engagement
54.16provides fewer assurances than those reported under audited financial statements.

54.17    Sec. 19. Minnesota Statutes 2016, section 136A.822, subdivision 4, is amended to read:
54.18    Subd. 4. Application. Application for a license shall be on forms prepared and furnished
54.19by the office, and shall include the following and other information as the office may require:
54.20(1) the title or name of the private career school, ownership and controlling officers,
54.21members, managing employees, and director;
54.22(2) the specific programs which will be offered and the specific purposes of the
54.23instruction;
54.24(3) the place or places where the instruction will be given;
54.25(4) a listing of the equipment available for instruction in each program;
54.26(5) the maximum enrollment to be accommodated with equipment available in each
54.27specified program;
54.28(6) the qualifications of instructors and supervisors in each specified program;
54.29(7) financial documents related to the entity's and higher-level entity's most recently
54.30completed fiscal year:
54.31(i) annual gross revenues from all sources;
55.1(ii) financial statements subjected to a review level engagement or, if requested by the
55.2office, audited financial statements;
55.3(iii) a school's most recent compliance audit, if applicable; and
55.4(iv) a current balance sheet, income statement, and adequate supporting documentation,
55.5prepared and certified by an independent public accountant or CPA;
55.6(8) copies of all media advertising and promotional literature and brochures or electronic
55.7display currently used or reasonably expected to be used by the private career school;
55.8(9) copies of all Minnesota enrollment agreement forms and contract forms and all
55.9enrollment agreement forms and contract forms used in Minnesota; and
55.10(10) gross income earned in the preceding year from student tuition, fees, and other
55.11required institutional charges, unless the private career school files with the office a surety
55.12bond equal to at least $250,000 as described in subdivision 6.

55.13    Sec. 20. Minnesota Statutes 2016, section 136A.822, subdivision 6, is amended to read:
55.14    Subd. 6. Bond. (a) No license shall be issued to any private career school which
55.15maintains, conducts, solicits for, or advertises within the state of Minnesota any program,
55.16unless the applicant files with the office a continuous corporate surety bond written by a
55.17company authorized to do business in Minnesota conditioned upon the faithful performance
55.18of all contracts and agreements with students made by the applicant.
55.19    (b)(1) The amount of the surety bond shall be ten percent of the preceding year's gross
55.20net income from student tuition, fees, and other required institutional charges collected, but
55.21in no event less than $10,000 nor greater than $250,000, except that a private career school
55.22may deposit a greater amount at its own discretion. A private career school in each annual
55.23application for licensure must compute the amount of the surety bond and verify that the
55.24amount of the surety bond complies with this subdivision, unless the private career school
55.25maintains a surety bond equal to at least $250,000. A private career school that operates at
55.26two or more locations may combine gross net income from student tuition, fees, and other
55.27required institutional charges collected for all locations for the purpose of determining the
55.28annual surety bond requirement. The gross net tuition and fees used to determine the amount
55.29of the surety bond required for a private career school having a license for the sole purpose
55.30of recruiting students in Minnesota shall be only that paid to the private career school by
55.31the students recruited from Minnesota.
55.32    (2) A person required to obtain a private career school license due to the use of
55.33"academy," "institute," "college," or "university" in its name and which is also licensed by
56.1another state agency or board, except not including those schools licensed exclusively in
56.2order to participate in state grants or SELF loan financial aid programs, shall be required
56.3to provide a school bond of $10,000.
56.4    (c) The bond shall run to the state of Minnesota and to any person who may have a cause
56.5of action against the applicant arising at any time after the bond is filed and before it is
56.6canceled for breach of any contract or agreement made by the applicant with any student.
56.7The aggregate liability of the surety for all breaches of the conditions of the bond shall not
56.8exceed the principal sum deposited by the private career school under paragraph (b). The
56.9surety of any bond may cancel it upon giving 60 days' notice in writing to the office and
56.10shall be relieved of liability for any breach of condition occurring after the effective date
56.11of cancellation.
56.12    (d) In lieu of bond, the applicant may deposit with the commissioner of management
56.13and budget a sum equal to the amount of the required surety bond in cash, an irrevocable
56.14letter of credit issued by a financial institution equal to the amount of the required surety
56.15bond, or securities as may be legally purchased by savings banks or for trust funds in an
56.16aggregate market value equal to the amount of the required surety bond.
56.17    (e) Failure of a private career school to post and maintain the required surety bond or
56.18deposit under paragraph (d) shall may result in denial, suspension, or revocation of the
56.19school's license.

56.20    Sec. 21. Minnesota Statutes 2016, section 136A.822, subdivision 12, is amended to read:
56.21    Subd. 12. Permanent records. A private career school licensed under sections 136A.82
56.22to 136A.834 and located in Minnesota shall maintain a permanent record for each student
56.23for 50 years from the last date of the student's attendance. A private career school licensed
56.24under this chapter and offering distance instruction to a student located in Minnesota shall
56.25maintain a permanent record for each Minnesota student for 50 years from the last date of
56.26the student's attendance. Records include school transcripts, documents, and files containing
56.27student data about academic credits earned, courses completed, grades awarded, degrees
56.28awarded, and periods of attendance. To preserve permanent records, a private career school
56.29shall submit a plan that meets the following requirements:
56.30    (1) at least one copy of the records must be held in a secure, fireproof depository;
56.31    (2) an appropriate official must be designated to provide a student with copies of records
56.32or a transcript upon request;
57.1    (3) an alternative method, approved by the office, of complying with clauses (1) and (2)
57.2must be established if the private career school ceases to exist; and
57.3    (4) a continuous surety bond or irrevocable letter of credit issued by a financial institution
57.4must be filed with the office in an amount not to exceed $20,000 if the private career school
57.5has no binding agreement approved by the office, for preserving student records. The bond
57.6or irrevocable letter of credit shall run to the state of Minnesota. In the event of a school
57.7closure, the surety bond or irrevocable letter of credit must be used by the office to retrieve,
57.8recover, maintain, digitize, and destroy academic records.

57.9    Sec. 22. Minnesota Statutes 2016, section 136A.822, subdivision 13, is amended to read:
57.10    Subd. 13. Private career schools licensed by another state agency or board. A private
57.11career school required to obtain a private career school license due to the use of "academy,"
57.12"institute," "college," or "university" in its name or licensed for the purpose of participating
57.13in state financial aid under chapter 136A, and which is also licensed by another state agency
57.14or board shall be required to satisfy only the requirements of subdivisions 4, clauses (1),
57.15(2), (3), (5), (7), (8), and (10); 5; 6, paragraph (b), clause (2); 8, clauses (1), (4), (7), (8),
57.16and (9); 9; 10, clause (13); and 12. If a school is licensed to participate in state financial aid
57.17under this chapter, the school must follow the refund policy in section 136A.827, even if
57.18that section conflicts with the refund policy of the licensing agency or board. A distance
57.19education private career school located in another state, or a school licensed to recruit
57.20Minnesota residents for attendance at a school outside of this state, or a school licensed by
57.21another state agency as its primary licensing body, may continue to use the school's name
57.22as permitted by its home state or its primary licensing body.

57.23    Sec. 23. Minnesota Statutes 2016, section 136A.826, subdivision 2, is amended to read:
57.24    Subd. 2. Contract information. A contract or enrollment agreement used by a private
57.25career school must include at least the following:
57.26    (1) the name and address of the private career school, clearly stated;
57.27    (2) a clear and conspicuous disclosure that the agreement is a legally binding instrument
57.28upon written acceptance of the student by the private career school unless canceled under
57.29section 136A.827;
57.30    (3) the private career school's cancellation and refund policy that shall be clearly and
57.31conspicuously entitled "Buyer's Right to Cancel";
57.32    (4) a clear statement of total cost of the program including tuition and all other charges;
58.1    (5) the name and description of the program, including the number of hours or credits
58.2of classroom instruction, or distance instruction, that shall be included; and
58.3    (6) a clear and conspicuous explanation of the form and means of notice the student
58.4should use in the event the student elects to cancel the contract or sale, the effective date of
58.5cancellation, and the name and address, e-mail address, or phone number of the seller to
58.6which the notice should be sent or delivered.
58.7The contract or enrollment agreement must not include a wage assignment provision or a
58.8confession of judgment clause.

58.9    Sec. 24. Minnesota Statutes 2016, section 136A.827, subdivision 2, is amended to read:
58.10    Subd. 2. Private career schools using written contracts. (a) Notwithstanding anything
58.11to the contrary, a private career school that uses a written contract or enrollment agreement
58.12shall refund all tuition, fees and other charges paid by a student, if the student gives written
58.13notice of cancellation within five business days after the day on which the contract was
58.14executed regardless of whether the program has started.
58.15(b) When a student has been accepted by the private career school and has entered into
58.16a contractual agreement with the private career school and gives written notice of cancellation
58.17following the fifth business day after the date of execution of contract, but before the start
58.18of the program in the case of resident private career schools, or before the first lesson has
58.19been serviced by the private career school in the case of distance education private career
58.20schools, all tuition, fees and other charges, except 15 percent of the total cost of the program
58.21but not to exceed $50, shall be refunded to the student.

58.22    Sec. 25. Minnesota Statutes 2016, section 136A.827, subdivision 3, is amended to read:
58.23    Subd. 3. Notice; amount. (a) A private career school shall refund all tuition, fees and
58.24other charges paid by a student if the student gives written notice of cancellation within five
58.25business days after the day on which the student is accepted by the private career school
58.26regardless of whether the program has started.
58.27(b) When a student has been accepted by the private career school and gives written
58.28notice of cancellation following the fifth business day after the day of acceptance by the
58.29private career school, but before the start of the program, in the case of resident private
58.30career schools, or before the first lesson has been serviced by the private career school, in
58.31the case of distance education private career schools, all tuition, fees and other charges,
59.1except 15 percent of the total cost of the program but not to exceed $50, shall be refunded
59.2to the student.

59.3    Sec. 26. Minnesota Statutes 2016, section 136A.828, subdivision 3, is amended to read:
59.4    Subd. 3. False statements. (a) A private career school, agent, or solicitor shall not make,
59.5or cause to be made, any statement or representation, oral, written or visual, in connection
59.6with the offering or publicizing of a program, if the private career school, agent, or solicitor
59.7knows or reasonably should have known the statement or representation to be false,
59.8fraudulent, deceptive, substantially inaccurate, or misleading.
59.9(b) Other than opinion-based statements or puffery, a school shall only make claims that
59.10are evidence-based, can be validated, and are based on current conditions and not on
59.11conditions that are no longer relevant.
59.12(c) A school shall not guarantee or imply the guarantee of employment.
59.13(d) A school shall not guarantee or advertise any certain wage or imply earnings greater
59.14than the prevailing wage for entry-level wages in the field of study for the geographic area
59.15unless advertised wages are based on verifiable wage information from graduates.
59.16(e) If placement statistics are used in advertising or other promotional materials, the
59.17school must be able to substantiate the statistics with school records. These records must
59.18be made available to the office upon request. A school is prohibited from reporting the
59.19following in placement statistics:
59.20(1) a student required to receive a job offer or start a job to be classified as a graduate;
59.21(2) a graduate if the graduate held a position before enrolling in the program, unless
59.22graduating enabled the graduate to maintain the position or the graduate received a promotion
59.23or raise upon graduation;
59.24    (3) a graduate who works less than 20 hours per week; and
59.25    (4) a graduate who is not expected to maintain the position for at least 180 days.
59.26(f) A school shall not use endorsements, commendations, or recommendations by a
59.27student in favor of a school except with the consent of the student and without any offer of
59.28financial or other material compensation. Endorsements may be used only when they portray
59.29current conditions.
59.30(g) A school may advertise that the school or its programs have been accredited by an
59.31accrediting agency recognized by the United States Department of Education or the Council
59.32for Higher Education Accreditation, but shall not advertise any other accreditation unless
60.1approved by the office. The office may approve an institution's advertising of accreditation
60.2that is not recognized by the United States Department of Education or the Council for
60.3Higher Education if that accreditation is industry specific. Clear distinction must be made
60.4when the school is in candidacy or application status versus full accreditation.
60.5(h) A school may advertise that financial aid is available, including a listing of the
60.6financial aid programs in which the school participates, but federal or state financial aid
60.7shall not be used as a primary incentive in advertisement, promotion, or recruitment.
60.8(i) A school may advertise placement or career assistance, if offered, but shall not use
60.9the words "wanted," "help wanted," or "trainee," either in the headline or the body of the
60.10advertisement.
60.11(j) A school shall not be advertised under any "help wanted," "employment," or similar
60.12classification.
60.13(k) A school shall not falsely claim that it is conducting a talent hunt, contest, or similar
60.14test.
60.15(l) The commissioner, at any time, may require a retraction of a false, misleading, or
60.16deceptive claim. To the extent reasonable, the retraction must be published in the same
60.17manner as the original claim.

60.18    Sec. 27. [136A.8295] STUDENT COMPLAINTS.
60.19    Subdivision 1. Authority. The office has the authority to review and take appropriate
60.20action on student complaints from schools covered under the provisions of sections 136A.822
60.21to 136A.834.
60.22    Subd. 2. Complaint. A complaint must be in writing, be signed by a student, and state
60.23how the school's policies and procedures or sections 136A.822 to 136A.834 were violated.
60.24Student complaints shall be limited to complaints that occurred within six years from the
60.25date the concern should have been discovered with reasonable effort and after the student
60.26has utilized the school's internal complaint process. Students do not have to utilize a school's
60.27internal complaint process before the office has authority when the student is alleging fraud
60.28or misrepresentation. The office shall not investigate grade disputes, student conduct
60.29proceedings, disability accommodation requests, and discrimination claims, including Title
60.30IX complaints.
60.31    Subd. 3. Investigation. The office shall initiate an investigation upon receipt of a
60.32complaint within the authority of subdivision 2. A school involved in an investigation shall
60.33be informed of the alleged violations and the processes of the investigation. A school
61.1involved in an investigation shall respond to the alleged violations and provide requested
61.2documentation to the office. Upon completion of an investigation, the office shall inform
61.3the school and the student of the investigation outcome.
61.4    Subd. 4. Penalties. If violations are found, the office may require remedial action by
61.5the school or assign a penalty under section 136A.832. Remedial action may include student
61.6notification of violations, adjustments to the school's policies and procedures, and tuition
61.7or fee refunds to impacted students.

61.8    Sec. 28. Minnesota Statutes 2016, section 136A.83, is amended to read:
61.9136A.83 INSPECTION.
61.10(a) The office or a delegate may inspect the instructional books and records, classrooms,
61.11dormitories, tools, equipment and classes of any private career school or applicant for license
61.12at any reasonable time. The office may require the submission of a certified public audit,
61.13or if there is no such audit available audited financial statements. The office or a delegate
61.14may inspect the financial books and records of the private career school. In no event shall
61.15such financial information be used by the office to regulate or set the tuition or fees charged
61.16by the private career school.
61.17(b) Data obtained from an inspection of the financial records of a private career school
61.18or submitted to the office as part of a license application or renewal are nonpublic data as
61.19defined in section 13.02, subdivision 9. Data obtained from inspections may be disclosed
61.20to other members of the office, to law enforcement officials, or in connection with a legal
61.21or administrative proceeding commenced to enforce a requirement of law.

61.22    Sec. 29. Minnesota Statutes 2016, section 136A.833, is amended to read:
61.23136A.833 EXEMPTIONS.
61.24    Subdivision 1. Application for exemptions. A school that seeks an exemption from the
61.25provisions of sections 136A.822 to 136A.834 must apply to the office to establish that the
61.26school meets the requirements of an exemption. An exemption expires two years from the
61.27date of approval or when a school adds a new program or makes a modification equal to or
61.28greater than 25 percent to an existing educational program. If a school is reapplying for an
61.29exemption, the application must be submitted to the office 90 days before the current
61.30exemption expires.
61.31    Subd. 2. Exemption reasons. Sections 136A.821 to 136A.832 shall not apply to the
61.32following:
62.1    (1) public postsecondary institutions;
62.2    (2) postsecondary institutions registered under sections 136A.61 to 136A.71;
62.3    (3) private career schools of nursing accredited by the state Board of Nursing or an
62.4equivalent public board of another state or foreign country;
62.5    (4) private schools complying with the requirements of section 120A.22, subdivision 4;
62.6    (5) courses taught to students in a valid apprenticeship program taught by or required
62.7by a trade union;
62.8    (6) private career schools exclusively engaged in training physically or mentally disabled
62.9persons for the state of Minnesota;
62.10    (7) private career schools licensed by boards authorized under Minnesota law to issue
62.11licenses except private career schools required to obtain a private career school license due
62.12to the use of "academy," "institute," "college," or "university" in their names;
62.13    (8) private career schools and educational programs, or training programs, contracted
62.14for by persons, firms, corporations, government agencies, or associations, for the training
62.15of their own employees, for which no fee is charged the employee;
62.16    (9) private career schools engaged exclusively in the teaching of purely avocational,
62.17recreational, or remedial subjects as determined by the office except private career schools
62.18required to obtain a private career school license due to the use of "academy," "institute,"
62.19"college," or "university" in their names unless the private career school used "academy"
62.20or "institute" in its name prior to August 1, 2008;
62.21    (10) classes, courses, or programs conducted by a bona fide trade, professional, or
62.22fraternal organization, solely for that organization's membership;
62.23    (11) programs in the fine arts provided by organizations exempt from taxation under
62.24section 290.05 and registered with the attorney general under chapter 309. For the purposes
62.25of this clause, "fine arts" means activities resulting in artistic creation or artistic performance
62.26of works of the imagination which are engaged in for the primary purpose of creative
62.27expression rather than commercial sale or employment. In making this determination the
62.28office may seek the advice and recommendation of the Minnesota Board of the Arts;
62.29    (12) classes, courses, or programs intended to fulfill the continuing education
62.30requirements for licensure or certification in a profession, that have been approved by a
62.31legislatively or judicially established board or agency responsible for regulating the practice
62.32of the profession, and that are offered exclusively to an individual practicing the profession;
63.1    (13) classes, courses, or programs intended to prepare students to sit for undergraduate,
63.2graduate, postgraduate, or occupational licensing and occupational entrance examinations;
63.3    (14) classes, courses, or programs providing 16 or fewer clock hours of instruction that
63.4are not part of the curriculum for an occupation or entry level employment except private
63.5career schools required to obtain a private career school license due to the use of "academy,"
63.6"institute," "college," or "university" in their names;
63.7    (15) classes, courses, or programs providing instruction in personal development,
63.8modeling, or acting;
63.9    (16) training or instructional programs, in which one instructor teaches an individual
63.10student, that are not part of the curriculum for an occupation or are not intended to prepare
63.11a person for entry level employment;
63.12    (17) private career schools with no physical presence in Minnesota, as determined by
63.13the office, engaged exclusively in offering distance instruction that are located in and
63.14regulated by other states or jurisdictions if the distance education instruction does not include
63.15internships, externships, field placements, or clinical placements for residents of Minnesota;
63.16and
63.17    (18) private career schools providing exclusively training, instructional programs, or
63.18courses where tuition, fees, and any other charges for a student to participate do not exceed
63.19$100.

63.20    Sec. 30. Minnesota Statutes 2016, section 136A.834, is amended by adding a subdivision
63.21to read:
63.22    Subd. 5. Application. A school that seeks an exemption from the provisions of sections
63.23136A.82 to 136A.834 must apply to the office to establish that the school meets the
63.24requirements of an exemption. An exemption expires two years from the date of approval
63.25or when a school adds a new program or makes a modification equal to or greater than 25
63.26percent to an existing educational program. If a school is reapplying for an exemption, the
63.27application must be submitted to the office 90 days before the current exemption expires.

63.28    Sec. 31. Laws 2015, chapter 69, article 3, section 20, subdivision 10, is amended to read:
63.29    Subd. 10. Credit load. By the end of the first academic year including summer term, a
63.30grantee must have accumulated at least the lesser of 30 program credits by the end of the
63.31first academic year including summer term or the number of credits that the student's program
63.32is scheduled for during the first academic year. A college must certify that a grantee is
64.1carrying sufficient credits in the second grant year to complete the program at the end of
64.2the second year, including summer school. The commissioner shall set the terms and provide
64.3the form for certification.
64.4EFFECTIVE DATE.This section is effective the day following final enactment."
64.5Delete the title and insert:
64.6"A bill for an act
64.7relating to higher education; providing funding and policy for the Office of Higher
64.8Education, the Minnesota State Colleges and Universities, the University of
64.9Minnesota, and other related programs; modifying state grant program calculation
64.10parameters; providing financial aid and student loan forgiveness programs; requiring
64.11reports; appropriating money;amending Minnesota Statutes 2016, sections 43A.06,
64.12subdivision 1; 135A.031, subdivision 7; 135A.15, subdivision 1a; 136A.101,
64.13subdivision 5a; 136A.103; 136A.125, subdivisions 2, 4; 136A.1275; 136A.1795,
64.14subdivision 4; 136A.62, by adding a subdivision; 136A.646; 136A.65, subdivisions
64.151a, 4, 7; 136A.653; 136A.657, by adding a subdivision; 136A.67; 136A.68;
64.16136A.685; 136A.821, by adding subdivisions; 136A.822, subdivisions 4, 6, 12,
64.1713; 136A.826, subdivision 2; 136A.827, subdivisions 2, 3; 136A.828, subdivision
64.183; 136A.83; 136A.833; 136A.834, by adding a subdivision; 136A.902, subdivision
64.191; 148.89, subdivision 5; Laws 2014, chapter 312, article 1, section 15; Laws 2015,
64.20chapter 69, article 3, section 20, subdivision 10; proposing coding for new law in
64.21Minnesota Statutes, chapters 135A; 136A; 136F; 137; 148; 298."