Bill Text: MN HF983 | 2013-2014 | 88th Legislature | Engrossed
Bill Title: Higher education provisions modified; technical, conforming, policy, and clarifying changes made; student grants, awards, aid, school registration, and licensure provisions modified; state appropriation use prohibited for bonuses and performance-based incentive payments; information required to be provided in higher education budget proposals; procedures related to terminating institutions from financial aid programs modified; cancellation procedure of required surety bond established; MnDRIVE program established; and Higher Education Advisory Council repealed.
Sponsorship: Partisan Bill (Democrat 4)
Status: (Introduced - Dead) 2013-05-18 - Second reading [HF983 Detail]
Download: Minnesota-2013-HF983-Engrossed.html
1.2relating to higher education; making technical, conforming, policy, and clarifying
1.3changes to provisions related to higher education; modifying provisions related
1.4to student grants, awards, and aid, school registration, and licensure; prohibiting
1.5use of state appropriations for certain bonuses and performance-based incentive
1.6payments; requiring certain information to be provided in higher education
1.7budget proposals; modifying procedures related to terminating institutions from
1.8financial aid programs; establishing procedure for cancellation of required surety
1.9bond; establishing MnDRIVE program; repealing Higher Education Advisory
1.10Council;amending Minnesota Statutes 2012, sections 135A.031, subdivision 7;
1.11136A.101, subdivision 9; 136A.125, subdivisions 2, 4; 136A.233, subdivision
1.122; 136A.646; 136A.65, subdivision 8; 136A.653, by adding a subdivision;
1.13136F.40, subdivision 2; 137.027; 141.35; 299A.45, subdivision 4; proposing
1.14coding for new law in Minnesota Statutes, chapters 136A; 137; repealing
1.15Minnesota Statutes 2012, section 136A.031, subdivision 2; Minnesota Rules,
1.16parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; 4830.0160; 4830.0170;
1.174830.0180; 4830.0190; 4830.0195.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to
1.20read:
1.21 Subd. 7. Reports. (a)Instructional and noninstructional expenditure data and
1.22enrollment data must be submitted in the biennial budget document under section
1.23135A.034. This report must include a description of the methodology for determining
1.24instructional and noninstructional expenditures and estimates of inflation in higher
1.25education and the methodology or index used to determine the inflation rate. The
1.26University of Minnesota and the Minnesota State Colleges and Universities systems shall
1.27include in their biennial budget proposals to the legislature:
1.28 (1) a five-year history of systemwide expenditures, reported by:
2.1 (i) functional areas, including instruction, research, public service, student financial
2.2aid, and auxiliary services, and including direct costs and indirect costs, such as
2.3institutional support, academic support, student services, and facilities management,
2.4associated with each functional area; and
2.5 (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
2.6 (2) a five-year history of the system's total instructional expenditures per full-year
2.7equivalent student, by level of instruction, including upper-division undergraduate,
2.8lower-division undergraduate, graduate, professional, and other categories of instructional
2.9programs offered by the system;
2.10 (3) a five-year history of the system's total revenues by funding source, including
2.11tuition, state operations and maintenance appropriations, state special appropriations, other
2.12restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary
2.13revenue, indirect cost recovery, and any other revenue sources;
2.14(b) By February 1 of each even-numbered year, the Board of Regents of the University
2.15of Minnesota and the Board of Trustees of the Minnesota State Colleges and Universities
2.16must submit a report to the chairs of the legislative committees with jurisdiction over
2.17higher education policy and finance. The report must describe the following:
2.18(1) (4) an explanation describing how state appropriations made to the system in
2.19the previousodd-numbered year biennium were allocated and the methodology used to
2.20determine the allocation;
2.21(2) (5) data describing how the institution reallocated resources to advance the
2.22priorities set forth in the budget submitted under section135A.034 and the statewide
2.23objectives under section135A.011 . The information must indicate whether instruction
2.24and support programs received a reduction in or additional resources. The total amount
2.25reallocated must be clearly explained;
2.26(3) (6) the tuition rates and fees established by the governing board in each of the
2.27past ten years and comparison data for peer institutions and national averages;
2.28(4) (7) data on the number and proportion of students graduating within four, five,
2.29and six years from universities and within three years from colleges as reported in the
2.30integrated postsecondary education data system. These data must be provided for each
2.31institution by race, ethnicity, and gender. Data and information must be submitted that
2.32describe the system's plan and progress toward attaining the goals set forth in the plan
2.33to increase the number and proportion of students that graduate within four, five, or six
2.34years from a university or within three years from a college;
2.35(5) (8) data on, and the methodology used to measure, the number of students
2.36traditionally underrepresented in higher education enrolled at the system's institutions.
3.1Data and information must be submitted that describe the system's plan and progress
3.2toward attaining the goals set forth in the plan to increase the recruitment, retention, and
3.3timely graduation of students traditionally underrepresented in higher education; and
3.4(6) (9) data on the revenue received from all sources to support research or
3.5workforce development activities or the system's efforts to license, sell, or otherwise
3.6market products, ideas, technology, and related inventions created in whole or in part by
3.7the system. Data and information must be submitted that describe the system's plan and
3.8progress toward attaining the goals set forth in the plan to increase the revenue received
3.9to support research or workforce development activities or revenue received from the
3.10licensing, sale, or other marketing and technology transfer activities by the system.
3.11(c) Instructional expenditure and enrollment data (b) Data required by this
3.12subdivision shall be submitted by the public postsecondary systems to the Minnesota
3.13Office of Higher Education and the Department of Management and Budget and included
3.14in the biennial budget document.The specific data shall be submitted only after the
3.15director of the Minnesota Office of Higher Education has consulted with a data advisory
3.16task force to determine the need, content, and detail of the information. Representatives
3.17from each system, in consultation with the commissioner of management and budget
3.18and the director of the Office of Higher Education, shall develop consistent reporting
3.19practices for this purpose.
3.20 (c) To the extent practicable, each system shall develop the ability to respond to
3.21legislative requests for financial analyses that are more detailed than those required by this
3.22subdivision, including but not limited to analyses that show expenditures or revenues by
3.23institution or program, or in multiple categories of expenditures or revenues, and analyses
3.24that show revenue sources for particular types of expenditures.
3.25 Sec. 2. Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:
3.26 Subd. 9. Independent student. "Independent student" has the meaning givenit in
3.27 under Title IV of the Higher Education Act of 1965,United States Code, title 20, section
3.281070a-6 as amended, and applicable regulations.
3.29 Sec. 3. [136A.104] INSTITUTION TERMINATION.
3.30 (a) The office shall have the authority to terminate a postsecondary institution's
3.31eligibility to participate in state student aid programs if the institution meets one of the
3.32following criteria:
3.33 (1) violates a provision of Minnesota Statutes, Minnesota Rules, or administrative
3.34policies governing student aid programs and fails to correct the violation and reimburse
4.1the office for audit findings within the time frame specified in the audit report or other
4.2notice furnished by the office;
4.3 (2) has a consistent pattern of noncompliance with Minnesota Statutes, Minnesota
4.4Rules, or administrative policies governing student aid programs as documented by the
4.5office or lacks administrative capability to successfully administer student financial aid
4.6programs on campus based on factors including, but not limited to:
4.7 (i) adequacy of financial aid staffing levels, experience, training, and turnover of key
4.8financial aid staff;
4.9 (ii) adequate checks and balances in its system of internal controls;
4.10 (iii) maintenance of records required for programs; or
4.11 (iv) the ability to participate in the electronic processes used for program
4.12administration;
4.13 (3) refuses to allow inspection of or provide information relating to financial aid
4.14records after written request by the office;
4.15 (4) misappropriates student aid program funds;
4.16 (5) falsifies information or engages in misleading or deceptive practices involving
4.17the administration of student financial aid programs;
4.18 (6) no longer meets institutional eligibility criteria in section 136A.103 or 136A.155,
4.19or additional criteria for state grant participation in Minnesota Rules, part 4830.0300,
4.20subparts 1 and 2; or
4.21 (7) is terminated from participating in federal financial aid programs by the United
4.22States Department of Education, if such termination was based on violation of laws,
4.23regulations, or participation agreements governing federal financial aid programs.
4.24 Sec. 4. [136A.1041] TERMINATION PROCEDURE.
4.25 The office shall provide written notice of its intent to terminate an institution's
4.26eligibility to participate in student financial aid programs if the institution meets any of
4.27the criteria for termination in section 136A.104. The office shall send the institution
4.28written notification of the termination which is effective 90 days from the date of the
4.29written notification. The office shall also provide an institution an opportunity for a
4.30hearing pursuant to chapter 14.
4.31 Sec. 5. [136A.1042] REQUEST FOR HEARING.
4.32 An institution may request a hearing pursuant to chapter 14 regarding its termination
4.33of eligibility to participate in a student aid program. The request must be in writing and
4.34must be received by the director within 30 days of the date on the written notification of
5.1termination sent by the office. Within ten days of receipt of the request for hearing, the
5.2office shall contact the Office of Administrative Hearings to arrange a hearing date.
5.3 Sec. 6. [136A.1043] RESTRICTION ON AWARDS DURING TERMINATION
5.4PERIOD.
5.5 After the notice of termination and until such time as the termination becomes
5.6effective, the office reserves the right to withhold further financial aid disbursements to the
5.7institution. During this period, the institution may not make any new awards to students
5.8but may use any remaining student aid program funds on campus to make disbursements
5.9to any students awarded funds prior to the notice of termination.
5.10 Sec. 7. [136A.1044] FINAL DECISION, ORDERS.
5.11 The director shall render a decision and order in writing following receipt of the
5.12report issued by the administrative law judge after the hearing. The final decision of the
5.13director shall take into consideration the hearing record and the report of the administrative
5.14law judge. The order of the director is the final decision in the termination of the
5.15institution's eligibility to participate in a student aid program administered by the office.
5.16 Sec. 8. [136A.1045] REINSTATEMENT OF ELIGIBILITY.
5.17 An institution terminated from participating in student financial aid programs
5.18may submit a request for reinstatement of eligibility. The institution must wait at least
5.1912 consecutive months from the effective date of the termination to submit a request
5.20for reinstatement. A request for reinstatement must be in writing and submitted to the
5.21director. If the institution is initially denied reinstatement, the institution must wait at
5.22least 90 days from the date of denial of reinstatement to resubmit a subsequent request
5.23for reinstatement. If an institution's eligibility is reinstated after the start of the academic
5.24term, eligible students shall receive payment retroactively to the beginning of the term
5.25during which the institution was reinstated.
5.26 Sec. 9. [136A.1046] REINSTATEMENT REQUIREMENTS.
5.27 An institution's reinstatement request must include:
5.28 (1) written documentation specifying changes the institution has made to
5.29successfully address the reasons for termination, as outlined in the termination notice;
5.30 (2) permission for the office's staff to conduct a reinstatement audit and to evaluate
5.31systems put in place to address the reasons for termination;
6.1 (3) evidence of full repayment to the office of student aid program funds the
6.2institution improperly received, withheld, disbursed, or caused to be disbursed;
6.3 (4) new participation agreements with the office for all student aid programs in
6.4which the institution wishes to participate; and
6.5 (5) if applicable, documentation of the institution's eligibility to participate in
6.6federal financial aid programs.
6.7 Sec. 10. [136A.1047] RESPONSE TO REINSTATEMENT REQUEST.
6.8 Within 60 days of receiving the institution's reinstatement request, the office shall
6.9conduct a reinstatement audit and either:
6.10 (1) place the institution on probationary status for a period of one year; or
6.11 (2) deny the request based on the institution meeting one or more of the termination
6.12criteria in section 136A.104.
6.13 Sec. 11. [136A.1048] PROBATIONARY PERIOD.
6.14 During the probationary period, the office may audit the institution's records without
6.15notice. If, while on probation, the institution violates a condition under section 136A.104,
6.16as documented by the office's audit staff, the office must remove the institution from
6.17probationary status and deny the request for reinstatement. If the institution fails to
6.18successfully complete the probationary period, termination is final and effective within 30
6.19days of written notice of the denial of the reinstatement request.
6.20 Sec. 12. [136A.1049] REINSTATEMENT.
6.21 If an institution no longer violates a condition under section 136A.104 and
6.22successfully completes the probationary period, the office must reinstate the institution's
6.23eligibility to participate in student financial aid programs effective the last date of the
6.24probationary period.
6.25 Sec. 13. [136A.105] STUDENT AWARDS AFTER TERMINATION.
6.26 If an institution is terminated from participating in student financial aid programs
6.27during a payment period, and a student at the institution was eligible for an award other
6.28than a Student Educational Loan Fund loan before the effective date of the institution's
6.29termination, the office must issue a payment for that payment period, as long as the student
6.30will not receive a payment for the same payment period from another institution and the
6.31student continues to meet the program's eligibility requirements.
7.1 Sec. 14. Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read:
7.2 Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
7.3the applicant:
7.4 (1) is a resident of the state of Minnesota;
7.5 (2) has a child 12 years of age or younger, or 14 years of age or younger who is
7.6disabled as defined in section125A.02 , and who is receiving or will receive care on a
7.7regular basis from a licensed or legal, nonlicensed caregiver;
7.8 (3) is income eligible as determined by the office's policies and rules, but is not a
7.9recipient of assistance from the Minnesota family investment program;
7.10 (4) has not earned a baccalaureate degree and has been enrolled full time less than
7.11eight semesters or the equivalent;
7.12 (5) is pursuing a nonsectarian program or course of study that applies to an
7.13undergraduate degree, diploma, or certificate;
7.14 (6) is enrolled at least half time in an eligible institution; and
7.15 (7) is in good academic standing and making satisfactory academic progress.
7.16 (b) A student who withdraws from enrollment for active military service or for a
7.17major illness, while under the care of a medical professional, that substantially limits the
7.18student's ability to complete the term is entitled to an additional semester or the equivalent
7.19of grant eligibility and will be considered to be in continuing enrollment status upon return.
7.20 Sec. 15. Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read:
7.21 Subd. 4. Amount and length of grants. (a) The amount of a child care grant
7.22must be based on:
7.23 (1) the income of the applicant and the applicant's spouse;
7.24 (2) the number in the applicant's family, as defined by the office; and
7.25 (3) the number of eligible children in the applicant's family.
7.26 (b) The maximum award to the applicant shall be$2,600 $2,800 for each eligible
7.27child per academic year, except that the campus financial aid officer may apply to the
7.28office for approval to increase grants by up to ten percent to compensate for higher market
7.29charges for infant care in a community. The office shall develop policies to determine
7.30community market costs and review institutional requests for compensatory grant
7.31increases to ensure need and equal treatment. The office shall prepare a chart to show the
7.32amount of a grant that will be awarded per child based on the factors in this subdivision.
7.33The chart shall include a range of income and family size.
7.34 Sec. 16. Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:
8.1 Subd. 2. Definitions. For purposes of sections136A.231 to
136A.233 , the words
8.2defined in this subdivision have the meanings ascribed to them.
8.3 (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
8.4least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
8.5institution.
8.6 (b) "Minnesota resident" means a student who meets the conditions in section
8.7136A.101, subdivision 8
.
8.8 (c) "Financial need" means the need for financial assistance in order to attend a
8.9postsecondary institution as determined by a postsecondary institution according to
8.10guidelines established by the Minnesota Office of Higher Education.
8.11 (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
8.12nonsectarian agency or state institution located in the state of Minnesota, a disabled person
8.13or a person over 65 who employs a student to provide personal services in or about the
8.14person's residence, or a private, for-profit employer employing a student as an intern in a
8.15position directly related to the student's field of study that will enhance the student's
8.16knowledge and skills in that field.
8.17 (e) "Eligible postsecondary institution" means any postsecondary institution eligible
8.18for participation in the Minnesota state grant program as specified in section136A.101,
8.19subdivision 4 .
8.20 (f) "Independent student" has the meaning givenit in under Title IV of the Higher
8.21Education Act of 1965,United States Code, title 20, section 1070a-6 as amended, and
8.22applicable regulations.
8.23 (g) "Half time" for undergraduates has the meaning given in section136A.101,
8.24subdivision 7b , and for graduate students is defined by the institution.
8.25 Sec. 17. Minnesota Statutes 2012, section 136A.646, is amended to read:
8.26136A.646 ADDITIONAL SECURITY.
8.27 (a) In the event any registered institution is notified by the United States Department
8.28of Education that it has fallen below minimum financial standards and that its continued
8.29participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
8.30Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
8.31Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
8.32institution shall provide a surety bond conditioned upon the faithful performance of all
8.33contracts and agreements with students in a sum equal to the "letter of credit" required by
8.34the United States Department of Education in the Letter of Credit Alternative, but in no
8.35event shall such bond be less than $10,000 nor more than $250,000.
9.1 (b) In lieu of a bond, the applicant may deposit with the commissioner of
9.2management and budget:
9.3 (1) a sum equal to the amount of the required surety bond in cash; or
9.4 (2) securities, as may be legally purchased by savings banks or for trust funds, in an
9.5aggregate market value equal to the amount of the required surety bond.
9.6 (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
9.7the office and shall be relieved of liability for any breach of condition occurring after
9.8the effective date of cancellation.
9.9 Sec. 18. Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:
9.10 Subd. 8. Disapproval of registration appeal.(a) If a school's degree or use of a
9.11term in its name is disapproved by the office, the school may request a hearing under
9.12chapter 14. The request must be in writing and made to the office within 30 days of the
9.13date the school is notified of the disapproval.
9.14(b) (a) The office may refuse to renew, revoke, or suspend registration, approval of
9.15a school's degree, or use of a regulated term in its name by giving written notice and
9.16reasons to the school.The school may request a hearing under chapter 14. If a hearing is
9.17requested, no revocation or suspension shall take effect until after the hearing.
9.18(c) (b) Reasons for revocation or suspension of registration or approval may be
9.19for one or more of the following reasons:
9.20 (1) violating the provisions of sections136A.61 to
136A.71 ;
9.21 (2) providing false, misleading, or incomplete information to the office;
9.22 (3) presenting information about the school which is false, fraudulent, misleading,
9.23deceptive, or inaccurate in a material respect to students or prospective students; or
9.24 (4) refusing to allow reasonable inspection or to supply reasonable information after
9.25a written request by the office has been received.
9.26 (c) Any order refusing, revoking, or suspending a school's registration, approval of a
9.27school's degree, or use of a regulated term in the school's name is appealable in accordance
9.28with chapter 14. The request must be in writing and made to the office within 30 days of the
9.29date the school is notified of the action of the office. If a school has been operating and its
9.30registration has been revoked, suspended, or refused by the office, the order is not effective
9.31until the final determination of the appeal, unless immediate effect is ordered by the court.
9.32 Sec. 19. Minnesota Statutes 2012, section 136A.653, is amended by adding a
9.33subdivision to read:
10.1 Subd. 5. Free educational courses. A school providing exclusively free training or
10.2instructional programs or courses where no tuition, fees, or any other charges are required
10.3for a student to participate is exempt from the provisions of sections 136A.61 to 136A.71.
10.4 Sec. 20. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:
10.5 Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor,
10.6a vice-chancellor, or a president, containing terms and conditions of employment. The
10.7terms of the contract must be authorized under a plan approved under section43A.18,
10.8subdivision 3a .
10.9(b) Notwithstanding section43A.17, subdivision 11 , or other law to the contrary, a
10.10contract under this section may provide a liquidated salary amount or other compensation
10.11if a contract is terminated by the board prior to its expiration.
10.12(c) Notwithstanding section356.24 or other law to the contrary, a contract under
10.13this section may contain a deferred compensation plan made in conformance with section
10.14457(f) of the Internal Revenue Code.
10.15(d) Notwithstanding any provision of the plan approved under section 43A.18,
10.16subdivision 3a, a contract under this section must not authorize or otherwise provide for a
10.17discretionary or mandatory bonus or other performance-based incentive payment.
10.18EFFECTIVE DATE.This section is effective the day following final enactment
10.19and applies to contracts entered into on or after that date.
10.20 Sec. 21. Minnesota Statutes 2012, section 137.027, is amended to read:
10.21137.027 APPROPRIATION; FRINGE BENEFITS.
10.22(a) Direct appropriations to the University of Minnesota include money to pay
10.23the employer's share of Social Security, state retirement, and health insurance. Money
10.24provided for these purposes shall be expended only for these purposes and any amounts in
10.25excess of the employer's share shall be returned to the state treasury.
10.26(b) Unless otherwise explicitly provided for in law, direct appropriations to the
10.27University of Minnesota do not include, and may not be used to pay, any mandatory
10.28or discretionary bonus or other performance-based incentive payment provided for in
10.29an employment contract with the president or vice-presidents, chancellors, provosts,
10.30vice-provosts, deans, or directors of individual programs.
10.31 Sec. 22. [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
10.32ECONOMY FUNDING PROGRAM.
11.1 Subdivision 1. Establishment. (a) The Minnesota Discovery, Research, and
11.2InnoVation Economy (MnDRIVE) funding program is established to discover new
11.3knowledge through scientific research that will:
11.4(1) advance the state's economy;
11.5(2) leverage opportunities and establish priorities in sectors of state strength and
11.6comparative advantage;
11.7(3) improve the health and wellbeing of Minnesota's citizens;
11.8(4) advance the capacity and competitiveness of existing and emerging food- and
11.9manufacturing-related science and technology industries; and
11.10(5) build a better Minnesota by driving progress and advancing the common good.
11.11(b) The MnDRIVE funding program shall establish priorities by investing in
11.12scientific research that promotes:
11.13(1) programs that can position Minnesota as a leader in engineering, science,
11.14technology, and food-related solutions;
11.15(2) initiatives that support the growth of targeted industry clusters and the
11.16competitiveness of existing Minnesota engineering, science, technology, and food
11.17companies in developing new products and services;
11.18(3) initiatives that can result in creating new Minnesota-based companies;
11.19(4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
11.20the incidence of disease, and transform how we prevent, treat, and cure diseases; and
11.21(5) initiatives that can secure a safer environment, seek sustainable energy solutions,
11.22and prevent, diagnose, and treat environmental problems associated with Minnesota
11.23industry.
11.24 Subd. 2. Funding requests. The Board of Regents of the University of Minnesota,
11.25acting alone or in partnership with other public or private entities, is requested to submit
11.26investment proposals consistent with the goals and objectives of the MnDRIVE funding
11.27program as part of the Board of Regents biennial budget request to the legislature. The
11.28Board of Regents must give consideration to investments in existing scientific research
11.29programs that meet these guidelines but may require additional resources in order to
11.30preserve or accelerate Minnesota into a national or global leadership position. The
11.31governor shall submit a recommendation to the legislature regarding funding requests
11.32submitted by the Board of Regents.
11.33 Subd. 3. Reporting. By March 1 of each odd-numbered year, the Board of Regents
11.34of the University of Minnesota must provide to the chairs and ranking minority members
11.35of the legislative committees with primary jurisdiction over higher education policy and
12.1finance a summary report of investments and accomplishments related to funds received
12.2from the state under subdivision 2 from the prior biennium.
12.3EFFECTIVE DATE.This section is effective the day following final enactment.
12.4 Sec. 23. Minnesota Statutes 2012, section 141.35, is amended to read:
12.5141.35 EXEMPTIONS.
12.6 Sections141.21 to
141.32 shall not apply to the following:
12.7 (1) public postsecondary institutions;
12.8 (2) postsecondary institutions registered under sections136A.61 to
136A.71 ;
12.9 (3) schools of nursing accredited by the state Board of Nursing or an equivalent
12.10public board of another state or foreign country;
12.11 (4) private schools complying with the requirements of section120A.22, subdivision
12.124 ;
12.13 (5) courses taught to students in a valid apprenticeship program taught by or
12.14required by a trade union;
12.15 (6) schools exclusively engaged in training physically or mentally disabled persons
12.16for the state of Minnesota;
12.17 (7) schools licensed by boards authorized under Minnesota law to issue licenses
12.18except schools required to obtain a private career school license due to the use of
12.19"academy," "institute," "college," or "university" in their names;
12.20 (8) schools and educational programs, or training programs, contracted for by
12.21persons, firms, corporations, government agencies, or associations, for the training of their
12.22own employees, for which no fee is charged the employee;
12.23 (9) schools engaged exclusively in the teaching of purely avocational, recreational,
12.24or remedial subjects as determined by the office except schools required to obtain a private
12.25career school license due to the use of "academy," "institute," "college," or "university" in
12.26their names unless the school used "academy" or "institute" in its name prior to August
12.271, 2008;
12.28 (10) classes, courses, or programs conducted by a bona fide trade, professional, or
12.29fraternal organization, solely for that organization's membership;
12.30 (11) programs in the fine arts provided by organizations exempt from taxation
12.31under section290.05 and registered with the attorney general under chapter 309. For
12.32the purposes of this clause, "fine arts" means activities resulting in artistic creation or
12.33artistic performance of works of the imagination which are engaged in for the primary
12.34purpose of creative expression rather than commercial sale or employment. In making
13.1this determination the office may seek the advice and recommendation of the Minnesota
13.2Board of the Arts;
13.3 (12) classes, courses, or programs intended to fulfill the continuing education
13.4requirements for licensure or certification in a profession, that have been approved by a
13.5legislatively or judicially established board or agency responsible for regulating the practice
13.6of the profession, and that are offered exclusively to an individual practicing the profession;
13.7 (13) classes, courses, or programs intended to prepare students to sit for
13.8undergraduate, graduate, postgraduate, or occupational licensing and occupational
13.9entrance examinations;
13.10 (14) classes, courses, or programs providing 16 or fewer clock hours of instruction
13.11that are not part of the curriculum for an occupation or entry level employment except
13.12schools required to obtain a private career school license due to the use of "academy,"
13.13"institute," "college," or "university" in their names;
13.14 (15) classes, courses, or programs providing instruction in personal development,
13.15modeling, or acting;
13.16 (16) training or instructional programs, in which one instructor teaches an individual
13.17student, that are not part of the curriculum for an occupation or are not intended to prepare
13.18a person for entry level employment;and
13.19 (17) schools with no physical presence in Minnesota, as determined by the office,
13.20engaged exclusively in offering distance instruction that are located in and regulated by
13.21other states or jurisdictions; and
13.22 (18) schools providing exclusively free training or instructional programs or courses
13.23where no tuition, fees, or any other charges are required for a student to participate.
13.24 Sec. 24. Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:
13.25 Subd. 4. Renewal. Each award must be given for one academic year and is
13.26renewable for a maximum of eight semesters or the equivalent. A student who withdraws
13.27from enrollment for active military service or for a major illness, while under the care
13.28of a medical professional, that substantially limits the student's ability to complete the
13.29term is entitled to an additional semester or the equivalent of grant eligibility. An award
13.30must not be given to a dependent child who is 23 years of age or older on the first day of
13.31the academic year.
13.32 Sec. 25. REPEALER.
13.33(a) Minnesota Statutes 2012, section 136A.031, subdivision 2, is repealed.
14.1(b) Minnesota Rules, parts 4830.0120; 4830.0130; 4830.0140; 4830.0150;
14.24830.0160; 4830.0170; 4830.0180; 4830.0190; and 4830.0195, are repealed.
1.3changes to provisions related to higher education; modifying provisions related
1.4to student grants, awards, and aid, school registration, and licensure; prohibiting
1.5use of state appropriations for certain bonuses and performance-based incentive
1.6payments; requiring certain information to be provided in higher education
1.7budget proposals; modifying procedures related to terminating institutions from
1.8financial aid programs; establishing procedure for cancellation of required surety
1.9bond; establishing MnDRIVE program; repealing Higher Education Advisory
1.10Council;amending Minnesota Statutes 2012, sections 135A.031, subdivision 7;
1.11136A.101, subdivision 9; 136A.125, subdivisions 2, 4; 136A.233, subdivision
1.122; 136A.646; 136A.65, subdivision 8; 136A.653, by adding a subdivision;
1.13136F.40, subdivision 2; 137.027; 141.35; 299A.45, subdivision 4; proposing
1.14coding for new law in Minnesota Statutes, chapters 136A; 137; repealing
1.15Minnesota Statutes 2012, section 136A.031, subdivision 2; Minnesota Rules,
1.16parts 4830.0120; 4830.0130; 4830.0140; 4830.0150; 4830.0160; 4830.0170;
1.174830.0180; 4830.0190; 4830.0195.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.19 Section 1. Minnesota Statutes 2012, section 135A.031, subdivision 7, is amended to
1.20read:
1.21 Subd. 7. Reports. (a)
1.22
1.23
1.24
1.25
1.26University of Minnesota and the Minnesota State Colleges and Universities systems shall
1.27include in their biennial budget proposals to the legislature:
1.28 (1) a five-year history of systemwide expenditures, reported by:
2.1 (i) functional areas, including instruction, research, public service, student financial
2.2aid, and auxiliary services, and including direct costs and indirect costs, such as
2.3institutional support, academic support, student services, and facilities management,
2.4associated with each functional area; and
2.5 (ii) objects of expenditure, such as salaries, benefits, supplies, and equipment;
2.6 (2) a five-year history of the system's total instructional expenditures per full-year
2.7equivalent student, by level of instruction, including upper-division undergraduate,
2.8lower-division undergraduate, graduate, professional, and other categories of instructional
2.9programs offered by the system;
2.10 (3) a five-year history of the system's total revenues by funding source, including
2.11tuition, state operations and maintenance appropriations, state special appropriations, other
2.12restricted state funds, federal appropriations, sponsored research funds, gifts, auxiliary
2.13revenue, indirect cost recovery, and any other revenue sources;
2.14
2.15
2.16
2.17
2.18
2.19the previous
2.20determine the allocation;
2.21
2.22priorities set forth in the budget submitted under section
2.23objectives under section
2.24and support programs received a reduction in or additional resources. The total amount
2.25reallocated must be clearly explained;
2.26
2.27past ten years and comparison data for peer institutions and national averages;
2.28
2.29and six years from universities and within three years from colleges as reported in the
2.30integrated postsecondary education data system. These data must be provided for each
2.31institution by race, ethnicity, and gender. Data and information must be submitted that
2.32describe the system's plan and progress toward attaining the goals set forth in the plan
2.33to increase the number and proportion of students that graduate within four, five, or six
2.34years from a university or within three years from a college;
2.35
2.36traditionally underrepresented in higher education enrolled at the system's institutions.
3.1Data and information must be submitted that describe the system's plan and progress
3.2toward attaining the goals set forth in the plan to increase the recruitment, retention, and
3.3timely graduation of students traditionally underrepresented in higher education; and
3.4
3.5workforce development activities or the system's efforts to license, sell, or otherwise
3.6market products, ideas, technology, and related inventions created in whole or in part by
3.7the system. Data and information must be submitted that describe the system's plan and
3.8progress toward attaining the goals set forth in the plan to increase the revenue received
3.9to support research or workforce development activities or revenue received from the
3.10licensing, sale, or other marketing and technology transfer activities by the system.
3.11
3.12subdivision shall be submitted by the public postsecondary systems to the Minnesota
3.13Office of Higher Education and the Department of Management and Budget and included
3.14in the biennial budget document.
3.15
3.16
3.17from each system, in consultation with the commissioner of management and budget
3.18and the director of the Office of Higher Education, shall develop consistent reporting
3.19practices for this purpose.
3.20 (c) To the extent practicable, each system shall develop the ability to respond to
3.21legislative requests for financial analyses that are more detailed than those required by this
3.22subdivision, including but not limited to analyses that show expenditures or revenues by
3.23institution or program, or in multiple categories of expenditures or revenues, and analyses
3.24that show revenue sources for particular types of expenditures.
3.25 Sec. 2. Minnesota Statutes 2012, section 136A.101, subdivision 9, is amended to read:
3.26 Subd. 9. Independent student. "Independent student" has the meaning given
3.27 under Title IV of the Higher Education Act of 1965,
3.28
3.29 Sec. 3. [136A.104] INSTITUTION TERMINATION.
3.30 (a) The office shall have the authority to terminate a postsecondary institution's
3.31eligibility to participate in state student aid programs if the institution meets one of the
3.32following criteria:
3.33 (1) violates a provision of Minnesota Statutes, Minnesota Rules, or administrative
3.34policies governing student aid programs and fails to correct the violation and reimburse
4.1the office for audit findings within the time frame specified in the audit report or other
4.2notice furnished by the office;
4.3 (2) has a consistent pattern of noncompliance with Minnesota Statutes, Minnesota
4.4Rules, or administrative policies governing student aid programs as documented by the
4.5office or lacks administrative capability to successfully administer student financial aid
4.6programs on campus based on factors including, but not limited to:
4.7 (i) adequacy of financial aid staffing levels, experience, training, and turnover of key
4.8financial aid staff;
4.9 (ii) adequate checks and balances in its system of internal controls;
4.10 (iii) maintenance of records required for programs; or
4.11 (iv) the ability to participate in the electronic processes used for program
4.12administration;
4.13 (3) refuses to allow inspection of or provide information relating to financial aid
4.14records after written request by the office;
4.15 (4) misappropriates student aid program funds;
4.16 (5) falsifies information or engages in misleading or deceptive practices involving
4.17the administration of student financial aid programs;
4.18 (6) no longer meets institutional eligibility criteria in section 136A.103 or 136A.155,
4.19or additional criteria for state grant participation in Minnesota Rules, part 4830.0300,
4.20subparts 1 and 2; or
4.21 (7) is terminated from participating in federal financial aid programs by the United
4.22States Department of Education, if such termination was based on violation of laws,
4.23regulations, or participation agreements governing federal financial aid programs.
4.24 Sec. 4. [136A.1041] TERMINATION PROCEDURE.
4.25 The office shall provide written notice of its intent to terminate an institution's
4.26eligibility to participate in student financial aid programs if the institution meets any of
4.27the criteria for termination in section 136A.104. The office shall send the institution
4.28written notification of the termination which is effective 90 days from the date of the
4.29written notification. The office shall also provide an institution an opportunity for a
4.30hearing pursuant to chapter 14.
4.31 Sec. 5. [136A.1042] REQUEST FOR HEARING.
4.32 An institution may request a hearing pursuant to chapter 14 regarding its termination
4.33of eligibility to participate in a student aid program. The request must be in writing and
4.34must be received by the director within 30 days of the date on the written notification of
5.1termination sent by the office. Within ten days of receipt of the request for hearing, the
5.2office shall contact the Office of Administrative Hearings to arrange a hearing date.
5.3 Sec. 6. [136A.1043] RESTRICTION ON AWARDS DURING TERMINATION
5.4PERIOD.
5.5 After the notice of termination and until such time as the termination becomes
5.6effective, the office reserves the right to withhold further financial aid disbursements to the
5.7institution. During this period, the institution may not make any new awards to students
5.8but may use any remaining student aid program funds on campus to make disbursements
5.9to any students awarded funds prior to the notice of termination.
5.10 Sec. 7. [136A.1044] FINAL DECISION, ORDERS.
5.11 The director shall render a decision and order in writing following receipt of the
5.12report issued by the administrative law judge after the hearing. The final decision of the
5.13director shall take into consideration the hearing record and the report of the administrative
5.14law judge. The order of the director is the final decision in the termination of the
5.15institution's eligibility to participate in a student aid program administered by the office.
5.16 Sec. 8. [136A.1045] REINSTATEMENT OF ELIGIBILITY.
5.17 An institution terminated from participating in student financial aid programs
5.18may submit a request for reinstatement of eligibility. The institution must wait at least
5.1912 consecutive months from the effective date of the termination to submit a request
5.20for reinstatement. A request for reinstatement must be in writing and submitted to the
5.21director. If the institution is initially denied reinstatement, the institution must wait at
5.22least 90 days from the date of denial of reinstatement to resubmit a subsequent request
5.23for reinstatement. If an institution's eligibility is reinstated after the start of the academic
5.24term, eligible students shall receive payment retroactively to the beginning of the term
5.25during which the institution was reinstated.
5.26 Sec. 9. [136A.1046] REINSTATEMENT REQUIREMENTS.
5.27 An institution's reinstatement request must include:
5.28 (1) written documentation specifying changes the institution has made to
5.29successfully address the reasons for termination, as outlined in the termination notice;
5.30 (2) permission for the office's staff to conduct a reinstatement audit and to evaluate
5.31systems put in place to address the reasons for termination;
6.1 (3) evidence of full repayment to the office of student aid program funds the
6.2institution improperly received, withheld, disbursed, or caused to be disbursed;
6.3 (4) new participation agreements with the office for all student aid programs in
6.4which the institution wishes to participate; and
6.5 (5) if applicable, documentation of the institution's eligibility to participate in
6.6federal financial aid programs.
6.7 Sec. 10. [136A.1047] RESPONSE TO REINSTATEMENT REQUEST.
6.8 Within 60 days of receiving the institution's reinstatement request, the office shall
6.9conduct a reinstatement audit and either:
6.10 (1) place the institution on probationary status for a period of one year; or
6.11 (2) deny the request based on the institution meeting one or more of the termination
6.12criteria in section 136A.104.
6.13 Sec. 11. [136A.1048] PROBATIONARY PERIOD.
6.14 During the probationary period, the office may audit the institution's records without
6.15notice. If, while on probation, the institution violates a condition under section 136A.104,
6.16as documented by the office's audit staff, the office must remove the institution from
6.17probationary status and deny the request for reinstatement. If the institution fails to
6.18successfully complete the probationary period, termination is final and effective within 30
6.19days of written notice of the denial of the reinstatement request.
6.20 Sec. 12. [136A.1049] REINSTATEMENT.
6.21 If an institution no longer violates a condition under section 136A.104 and
6.22successfully completes the probationary period, the office must reinstate the institution's
6.23eligibility to participate in student financial aid programs effective the last date of the
6.24probationary period.
6.25 Sec. 13. [136A.105] STUDENT AWARDS AFTER TERMINATION.
6.26 If an institution is terminated from participating in student financial aid programs
6.27during a payment period, and a student at the institution was eligible for an award other
6.28than a Student Educational Loan Fund loan before the effective date of the institution's
6.29termination, the office must issue a payment for that payment period, as long as the student
6.30will not receive a payment for the same payment period from another institution and the
6.31student continues to meet the program's eligibility requirements.
7.1 Sec. 14. Minnesota Statutes 2012, section 136A.125, subdivision 2, is amended to read:
7.2 Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if
7.3the applicant:
7.4 (1) is a resident of the state of Minnesota;
7.5 (2) has a child 12 years of age or younger, or 14 years of age or younger who is
7.6disabled as defined in section
7.7regular basis from a licensed or legal, nonlicensed caregiver;
7.8 (3) is income eligible as determined by the office's policies and rules, but is not a
7.9recipient of assistance from the Minnesota family investment program;
7.10 (4) has not earned a baccalaureate degree and has been enrolled full time less than
7.11eight semesters or the equivalent;
7.12 (5) is pursuing a nonsectarian program or course of study that applies to an
7.13undergraduate degree, diploma, or certificate;
7.14 (6) is enrolled at least half time in an eligible institution; and
7.15 (7) is in good academic standing and making satisfactory academic progress.
7.16 (b) A student who withdraws from enrollment for active military service or for a
7.17major illness, while under the care of a medical professional, that substantially limits the
7.18student's ability to complete the term is entitled to an additional semester or the equivalent
7.19of grant eligibility and will be considered to be in continuing enrollment status upon return.
7.20 Sec. 15. Minnesota Statutes 2012, section 136A.125, subdivision 4, is amended to read:
7.21 Subd. 4. Amount and length of grants. (a) The amount of a child care grant
7.22must be based on:
7.23 (1) the income of the applicant and the applicant's spouse;
7.24 (2) the number in the applicant's family, as defined by the office; and
7.25 (3) the number of eligible children in the applicant's family.
7.26 (b) The maximum award to the applicant shall be
7.27child per academic year, except that the campus financial aid officer may apply to the
7.28office for approval to increase grants by up to ten percent to compensate for higher market
7.29charges for infant care in a community. The office shall develop policies to determine
7.30community market costs and review institutional requests for compensatory grant
7.31increases to ensure need and equal treatment. The office shall prepare a chart to show the
7.32amount of a grant that will be awarded per child based on the factors in this subdivision.
7.33The chart shall include a range of income and family size.
7.34 Sec. 16. Minnesota Statutes 2012, section 136A.233, subdivision 2, is amended to read:
8.1 Subd. 2. Definitions. For purposes of sections
8.2defined in this subdivision have the meanings ascribed to them.
8.3 (a) "Eligible student" means a Minnesota resident enrolled or intending to enroll at
8.4least half time in a degree, diploma, or certificate program in a Minnesota postsecondary
8.5institution.
8.6 (b) "Minnesota resident" means a student who meets the conditions in section
8.8 (c) "Financial need" means the need for financial assistance in order to attend a
8.9postsecondary institution as determined by a postsecondary institution according to
8.10guidelines established by the Minnesota Office of Higher Education.
8.11 (d) "Eligible employer" means any eligible postsecondary institution, any nonprofit,
8.12nonsectarian agency or state institution located in the state of Minnesota, a disabled person
8.13or a person over 65 who employs a student to provide personal services in or about the
8.14person's residence, or a private, for-profit employer employing a student as an intern in a
8.15position directly related to the student's field of study that will enhance the student's
8.16knowledge and skills in that field.
8.17 (e) "Eligible postsecondary institution" means any postsecondary institution eligible
8.18for participation in the Minnesota state grant program as specified in section
8.19subdivision 4
8.20 (f) "Independent student" has the meaning given
8.21Education Act of 1965,
8.22applicable regulations.
8.23 (g) "Half time" for undergraduates has the meaning given in section
8.24subdivision 7b
8.25 Sec. 17. Minnesota Statutes 2012, section 136A.646, is amended to read:
8.26136A.646 ADDITIONAL SECURITY.
8.27 (a) In the event any registered institution is notified by the United States Department
8.28of Education that it has fallen below minimum financial standards and that its continued
8.29participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
8.30Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
8.31Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
8.32institution shall provide a surety bond conditioned upon the faithful performance of all
8.33contracts and agreements with students in a sum equal to the "letter of credit" required by
8.34the United States Department of Education in the Letter of Credit Alternative, but in no
8.35event shall such bond be less than $10,000 nor more than $250,000.
9.1 (b) In lieu of a bond, the applicant may deposit with the commissioner of
9.2management and budget:
9.3 (1) a sum equal to the amount of the required surety bond in cash; or
9.4 (2) securities, as may be legally purchased by savings banks or for trust funds, in an
9.5aggregate market value equal to the amount of the required surety bond.
9.6 (c) The surety of any bond may cancel it upon giving 60 days' notice in writing to
9.7the office and shall be relieved of liability for any breach of condition occurring after
9.8the effective date of cancellation.
9.9 Sec. 18. Minnesota Statutes 2012, section 136A.65, subdivision 8, is amended to read:
9.10 Subd. 8. Disapproval of registration appeal.
9.11
9.12
9.13
9.14
9.15a school's degree, or use of a regulated term in its name by giving written notice and
9.16reasons to the school.
9.17
9.18
9.19for one or more of the following reasons:
9.20 (1) violating the provisions of sections
9.21 (2) providing false, misleading, or incomplete information to the office;
9.22 (3) presenting information about the school which is false, fraudulent, misleading,
9.23deceptive, or inaccurate in a material respect to students or prospective students; or
9.24 (4) refusing to allow reasonable inspection or to supply reasonable information after
9.25a written request by the office has been received.
9.26 (c) Any order refusing, revoking, or suspending a school's registration, approval of a
9.27school's degree, or use of a regulated term in the school's name is appealable in accordance
9.28with chapter 14. The request must be in writing and made to the office within 30 days of the
9.29date the school is notified of the action of the office. If a school has been operating and its
9.30registration has been revoked, suspended, or refused by the office, the order is not effective
9.31until the final determination of the appeal, unless immediate effect is ordered by the court.
9.32 Sec. 19. Minnesota Statutes 2012, section 136A.653, is amended by adding a
9.33subdivision to read:
10.1 Subd. 5. Free educational courses. A school providing exclusively free training or
10.2instructional programs or courses where no tuition, fees, or any other charges are required
10.3for a student to participate is exempt from the provisions of sections 136A.61 to 136A.71.
10.4 Sec. 20. Minnesota Statutes 2012, section 136F.40, subdivision 2, is amended to read:
10.5 Subd. 2. Contracts. (a) The board may enter into a contract with the chancellor,
10.6a vice-chancellor, or a president, containing terms and conditions of employment. The
10.7terms of the contract must be authorized under a plan approved under section
10.8subdivision 3a
10.9(b) Notwithstanding section
10.10contract under this section may provide a liquidated salary amount or other compensation
10.11if a contract is terminated by the board prior to its expiration.
10.12(c) Notwithstanding section
10.13this section may contain a deferred compensation plan made in conformance with section
10.14457(f) of the Internal Revenue Code.
10.15(d) Notwithstanding any provision of the plan approved under section 43A.18,
10.16subdivision 3a, a contract under this section must not authorize or otherwise provide for a
10.17discretionary or mandatory bonus or other performance-based incentive payment.
10.18EFFECTIVE DATE.This section is effective the day following final enactment
10.19and applies to contracts entered into on or after that date.
10.20 Sec. 21. Minnesota Statutes 2012, section 137.027, is amended to read:
10.21137.027 APPROPRIATION; FRINGE BENEFITS.
10.22(a) Direct appropriations to the University of Minnesota include money to pay
10.23the employer's share of Social Security, state retirement, and health insurance. Money
10.24provided for these purposes shall be expended only for these purposes and any amounts in
10.25excess of the employer's share shall be returned to the state treasury.
10.26(b) Unless otherwise explicitly provided for in law, direct appropriations to the
10.27University of Minnesota do not include, and may not be used to pay, any mandatory
10.28or discretionary bonus or other performance-based incentive payment provided for in
10.29an employment contract with the president or vice-presidents, chancellors, provosts,
10.30vice-provosts, deans, or directors of individual programs.
10.31 Sec. 22. [137.71] MINNESOTA DISCOVERY, RESEARCH, AND INNOVATION
10.32ECONOMY FUNDING PROGRAM.
11.1 Subdivision 1. Establishment. (a) The Minnesota Discovery, Research, and
11.2InnoVation Economy (MnDRIVE) funding program is established to discover new
11.3knowledge through scientific research that will:
11.4(1) advance the state's economy;
11.5(2) leverage opportunities and establish priorities in sectors of state strength and
11.6comparative advantage;
11.7(3) improve the health and wellbeing of Minnesota's citizens;
11.8(4) advance the capacity and competitiveness of existing and emerging food- and
11.9manufacturing-related science and technology industries; and
11.10(5) build a better Minnesota by driving progress and advancing the common good.
11.11(b) The MnDRIVE funding program shall establish priorities by investing in
11.12scientific research that promotes:
11.13(1) programs that can position Minnesota as a leader in engineering, science,
11.14technology, and food-related solutions;
11.15(2) initiatives that support the growth of targeted industry clusters and the
11.16competitiveness of existing Minnesota engineering, science, technology, and food
11.17companies in developing new products and services;
11.18(3) initiatives that can result in creating new Minnesota-based companies;
11.19(4) initiatives that can improve the quality of life of Minnesota's citizens, decrease
11.20the incidence of disease, and transform how we prevent, treat, and cure diseases; and
11.21(5) initiatives that can secure a safer environment, seek sustainable energy solutions,
11.22and prevent, diagnose, and treat environmental problems associated with Minnesota
11.23industry.
11.24 Subd. 2. Funding requests. The Board of Regents of the University of Minnesota,
11.25acting alone or in partnership with other public or private entities, is requested to submit
11.26investment proposals consistent with the goals and objectives of the MnDRIVE funding
11.27program as part of the Board of Regents biennial budget request to the legislature. The
11.28Board of Regents must give consideration to investments in existing scientific research
11.29programs that meet these guidelines but may require additional resources in order to
11.30preserve or accelerate Minnesota into a national or global leadership position. The
11.31governor shall submit a recommendation to the legislature regarding funding requests
11.32submitted by the Board of Regents.
11.33 Subd. 3. Reporting. By March 1 of each odd-numbered year, the Board of Regents
11.34of the University of Minnesota must provide to the chairs and ranking minority members
11.35of the legislative committees with primary jurisdiction over higher education policy and
12.1finance a summary report of investments and accomplishments related to funds received
12.2from the state under subdivision 2 from the prior biennium.
12.3EFFECTIVE DATE.This section is effective the day following final enactment.
12.4 Sec. 23. Minnesota Statutes 2012, section 141.35, is amended to read:
12.5141.35 EXEMPTIONS.
12.6 Sections
12.7 (1) public postsecondary institutions;
12.8 (2) postsecondary institutions registered under sections
12.9 (3) schools of nursing accredited by the state Board of Nursing or an equivalent
12.10public board of another state or foreign country;
12.11 (4) private schools complying with the requirements of section
12.124
12.13 (5) courses taught to students in a valid apprenticeship program taught by or
12.14required by a trade union;
12.15 (6) schools exclusively engaged in training physically or mentally disabled persons
12.16for the state of Minnesota;
12.17 (7) schools licensed by boards authorized under Minnesota law to issue licenses
12.18except schools required to obtain a private career school license due to the use of
12.19"academy," "institute," "college," or "university" in their names;
12.20 (8) schools and educational programs, or training programs, contracted for by
12.21persons, firms, corporations, government agencies, or associations, for the training of their
12.22own employees, for which no fee is charged the employee;
12.23 (9) schools engaged exclusively in the teaching of purely avocational, recreational,
12.24or remedial subjects as determined by the office except schools required to obtain a private
12.25career school license due to the use of "academy," "institute," "college," or "university" in
12.26their names unless the school used "academy" or "institute" in its name prior to August
12.271, 2008;
12.28 (10) classes, courses, or programs conducted by a bona fide trade, professional, or
12.29fraternal organization, solely for that organization's membership;
12.30 (11) programs in the fine arts provided by organizations exempt from taxation
12.31under section
12.32the purposes of this clause, "fine arts" means activities resulting in artistic creation or
12.33artistic performance of works of the imagination which are engaged in for the primary
12.34purpose of creative expression rather than commercial sale or employment. In making
13.1this determination the office may seek the advice and recommendation of the Minnesota
13.2Board of the Arts;
13.3 (12) classes, courses, or programs intended to fulfill the continuing education
13.4requirements for licensure or certification in a profession, that have been approved by a
13.5legislatively or judicially established board or agency responsible for regulating the practice
13.6of the profession, and that are offered exclusively to an individual practicing the profession;
13.7 (13) classes, courses, or programs intended to prepare students to sit for
13.8undergraduate, graduate, postgraduate, or occupational licensing and occupational
13.9entrance examinations;
13.10 (14) classes, courses, or programs providing 16 or fewer clock hours of instruction
13.11that are not part of the curriculum for an occupation or entry level employment except
13.12schools required to obtain a private career school license due to the use of "academy,"
13.13"institute," "college," or "university" in their names;
13.14 (15) classes, courses, or programs providing instruction in personal development,
13.15modeling, or acting;
13.16 (16) training or instructional programs, in which one instructor teaches an individual
13.17student, that are not part of the curriculum for an occupation or are not intended to prepare
13.18a person for entry level employment;
13.19 (17) schools with no physical presence in Minnesota, as determined by the office,
13.20engaged exclusively in offering distance instruction that are located in and regulated by
13.21other states or jurisdictions; and
13.22 (18) schools providing exclusively free training or instructional programs or courses
13.23where no tuition, fees, or any other charges are required for a student to participate.
13.24 Sec. 24. Minnesota Statutes 2012, section 299A.45, subdivision 4, is amended to read:
13.25 Subd. 4. Renewal. Each award must be given for one academic year and is
13.26renewable for a maximum of eight semesters or the equivalent. A student who withdraws
13.27from enrollment for active military service or for a major illness, while under the care
13.28of a medical professional, that substantially limits the student's ability to complete the
13.29term is entitled to an additional semester or the equivalent of grant eligibility. An award
13.30must not be given to a dependent child who is 23 years of age or older on the first day of
13.31the academic year.
13.32 Sec. 25. REPEALER.
13.33(a) Minnesota Statutes 2012, section 136A.031, subdivision 2, is repealed.
14.1(b) Minnesota Rules, parts 4830.0120; 4830.0130; 4830.0140; 4830.0150;
14.24830.0160; 4830.0170; 4830.0180; 4830.0190; and 4830.0195, are repealed.
