1.1 A bill for an act
1.2 relating to higher education; strengthening the Increase Teachers of Color Act in
1.3 higher education; making permanent a pilot scholarship program for aspiring
1.4 teachers of color; establishing a special revenue fund account; modifying provisions
1.5 of the teacher shortage loan repayment program; appropriating money; amending
1.6 Minnesota Statutes 2022, section 136A.1791, subdivisions 2, 5; Laws 2021, First
1.7 Special Session chapter 2, article 2, section 45.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2022, section 136A.1791, subdivision 2, is amended to
1.10read:
1.11 Subd. 2.Program established; administration.(a) The commissioner shall establish
1.12and administer a teacher shortage loan repayment program.
1.13 (b) The commissioner must establish an application deadline and give equal consideration
1.14to all applicants regardless of the order the application was received before the deadline.
1.15 (c) If the funds available for the program are insufficient to make full awards to eligible
1.16applicants, the commissioner must prioritize awards as follows:
1.17 (1) to applicants with the greatest financial need, taking into consideration the applicant's
1.18income, household size, total qualified educational loan debt, and other relevant factors;
1.19and
1.20 (2) to applicants meeting more than one of the three eligibility categories in subdivision
1.213a.
1Section 1.
REVISOR JFK/AD 23-0120001/03/23
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 381
NINETY-THIRD SESSION 2.1 (d) The commissioner must ensure an equitable distribution of student loan repayment
2.2funds to teachers across all economic development regions using a method determined by
2.3the commissioner. Funds reserved under paragraph (e) must be allocated separately.
2.4 (e) So long as the aggregate percentage of teachers of color and American Indian teachers
2.5in the state, as determined by the Professional Educator Licensing and Standards Board, is
2.6lower than the aggregate percentage of kindergarten through grade 12 students of color and
2.7kindergarten through grade 12 American Indian students in the state, as determined by the
2.8commissioner of education under section 120B.35, subdivision 3, the commissioner must
2.9reserve a percentage of the loan forgiveness program's available funds for those teachers
2.10eligible for loan forgiveness because they belong to a racial or ethnic group underrepresented
2.11in the teacher workforce. The percentage reserved under this paragraph must be equal to or
2.12greater than the aggregate percentage of kindergarten through grade 12 students of color
2.13and kindergarten through grade 12 American Indian students in the state, as determined by
2.14the commissioner of education under section 120B.35, subdivision 3. Funds reserved under
2.15this paragraph must be considered separately for purposes of prioritizing awards under
2.16paragraph (c). The amount reserved under this paragraph seeks to improve all students'
2.17access to effective and diverse teachers under sections 120B.11 and 124D.861.
2.18 Sec. 2. Minnesota Statutes 2022, section 136A.1791, subdivision 5, is amended to read:
2.19 Subd. 5.Amount of loan repayment.(a) To the extent funding is available, the
2.20maximum annual amount of a teacher shortage loan repayment award for an approved
2.21applicant is as follows:
2.22 (1) for an applicant meeting only one of the three eligibility categories under subdivision
2.233a, the maximum award amount shall not exceed $1,000 $2,000 or the cumulative balance
2.24of the applicant's qualified educational loans, including principal and interest, whichever
2.25amount is less.; and
2.26 (2) for an applicant meeting two or more of the three eligibility categories under
2.27subdivision 3a, the maximum award amount shall not exceed $4,000 or the cumulative
2.28balance of the applicant's qualified educational loans, including principal and interest,
2.29whichever amount is less.
2.30 (b) Recipients must secure their own qualified educational loans. Teachers who graduate
2.31from an approved teacher preparation program or teachers who add a licensure field,
2.32consistent with the teacher shortage requirements of this section, are eligible to apply for
2.33the loan repayment program.
2Sec. 2.
REVISOR JFK/AD 23-0120001/03/23 3.1 (c) No teacher shall receive more than five annual awards.
3.2 Sec. 3. Laws 2021, First Special Session chapter 2, article 2, section 45, is amended to
3.3read:
3.4 Sec. 45. ASPIRING MINNESOTA TEACHERS OF COLOR SCHOLARSHIP
3.5PILOT PROGRAM.
3.6 Subdivision 1.Scholarship pilot program established.The commissioner must establish
3.7a scholarship pilot program to support undergraduate and graduate students who are preparing
3.8to become teachers, have demonstrated financial need, and belong to racial or ethnic groups
3.9underrepresented in the state's teacher workforce.
3.10 Subd. 2.Eligibility.(a) To be eligible for a scholarship under this section, an applicant
3.11must:
3.12 (1) either be admitted and enrolled in a teacher preparation program approved by the
3.13Professional Educator Licensing and Standards Board and be seeking initial licensure,; or
3.14be enrolled in an eligible institution under section 136A.103 and be completing a two-year
3.15program specifically designed to prepare early childhood educators an associate's degree
3.16in early childhood education, education, or special education;
3.17 (2) affirm to the teacher preparation program or the Office of Higher Education that the
3.18applicant is a person of color or American Indian;
3.19 (3) be meeting satisfactory academic progress as defined under section 136A.101,
3.20subdivision 10; and
3.21 (4) demonstrate financial need based on criteria developed by the commissioner.
3.22 (b) An eligible applicant may receive a scholarship award more than once, but may
3.23receive a total of no more than $25,000 $30,000 in scholarship awards from the program.
3.24 (c) An applicant may apply for both a scholarship under this section and an
3.25underrepresented student teacher grant under section 136A.1274, but may not receive an
3.26award from both programs during the same academic semester or term unless there are
3.27sufficient funds appropriated to support all eligible applicants.
3.28 Subd. 3.Scholarship award amount.(a) The commissioner must establish a priority
3.29application deadline and must give equal consideration to all eligible applicants regardless
3.30of the applicant's attended institution or the order the application was received before the
3.31priority application deadline. If the funds available for the program are insufficient to make
3Sec. 3.
REVISOR JFK/AD 23-0120001/03/23 4.1full awards to all eligible applicants who apply on or before the deadline, the commissioner
4.2must make awards based on the expected family contribution Student Aid Index of an
4.3applicant, prioritizing applicants with the lowest expected family contributions Student Aid
4.4Indexes. If there are multiple complete applications with identical expected family
4.5contributions Student Aid Indexes, those applications may be prioritized by application
4.6completion date.
4.7 (b) For eligible applicants enrolled in a teacher preparation program as part of a
4.8baccalaureate or postbaccalaureate degree program, the maximum award amount is $10,000
4.9per year for full-time study. For eligible applicants enrolled in an associate's degree program,
4.10the maximum award amount is $6,000 per year for full-time study. For undergraduate
4.11students, full-time study means enrollment in a minimum of 15 or more credits per term.
4.12For graduate students, full-time study means enrollment in a minimum of six graduate
4.13credits or the equivalent.
4.14 (c) If an eligible applicant is enrolled full time in a program for only one term during
4.15the academic year, the applicant may receive no more than half the applicable maximum
4.16award amount is $5,000. If an eligible applicant is enrolled part time, the award amount
4.17must be prorated on a per-credit basis.
4.18 (d) Subject to the funds available for the program, and subject to the limitation in
4.19paragraph (e), the minimum award amount established under this section for full-time study
4.20must be no less than $1,000 per year.
4.21 (e) An eligible applicant's individual award amount must not exceed the applicant's cost
4.22of attendance after deducting: (1) the student's expected family contribution Student Aid
4.23Index; (2) the sum of all state or federal grants and gift aid received, including a Pell Grant
4.24and state grant; (3) the sum of all institutional grants, scholarships, tuition waivers, and
4.25tuition remission amounts; and (4) the amount of any private grants or scholarships.
4.26 (f) Awards are made until available funds are expended. Eligible applicants who
4.27completed their applications on or before the priority application deadline but who did not
4.28receive an award due to insufficient funds, and eligible applicants who completed their
4.29applications after the priority application deadline, shall be placed on an award waiting list
4.30by order of application completion date.
4.31 Subd. 4.Administration.(a) The commissioner must establish an application process
4.32for individual students and institutions on behalf of all eligible students at the institution
4.33and other guidelines for implementing the scholarship program.
4Sec. 3.
REVISOR JFK/AD 23-0120001/03/23 5.1 (b) A scholarship award must be paid to the eligible applicant's teacher preparation
5.2institution on behalf of the eligible applicant. Awards may be paid only when the institution
5.3has confirmed to the commissioner the applicant's name, racial or ethnic identity, gender,
5.4licensure area sought, and enrollment status.
5.5 Subd. 4a.Account established.An aspiring Minnesota teachers of color scholarship
5.6program account is created in the special revenue fund for depositing money appropriated
5.7to or received by the commissioner for the program. Money deposited in the account is
5.8appropriated to the commissioner, does not cancel, and is continuously available for
5.9scholarship awards under this section.
5.10 Subd. 5.Service expectation.An applicant who receives a scholarship under this section
5.11is expected to serve as a full-time teacher in Minnesota after completing the program for
5.12which the scholarship was awarded.
5.13 Subd. 6.Report.By December 15 of each year, the commissioner must submit a full
5.14report on the details of the scholarship program for the previous fiscal year to the legislative
5.15committees with jurisdiction over E-12 and higher education finance and policy. The reports
5.16must also be made available on the Office of Higher Education's website. The reports must
5.17include the following information:
5.18 (1) the number of applicants and the number of award recipients, each broken down by
5.19postsecondary institution with ten or more recipients;
5.20 (2) the total number of awards, the total dollar amount of all awards, and the average
5.21award amount;
5.22 (3) summary data on the racial or ethnic identity, gender, licensure area sought, and
5.23enrollment status of all applicants and award recipients; and
5.24 (4) other summary data identified by the commissioner as outcome indicators.
5.25 Sec. 4. APPROPRIATIONS.
5.26 Subdivision 1.Aspiring Minnesota teachers of color scholarship program.(a)
5.27$18,500,000 in fiscal year 2024 and $18,500,000 in fiscal year 2025 are appropriated from
5.28the general fund for transfer to the aspiring Minnesota teachers of color scholarship program
5.29account in the special revenue fund under Laws 2021, First Special Session chapter 2, article
5.302, section 45, as amended by this act. The commissioner of the Office of Higher Education
5.31and the commissioner of the Department of Management and Budget shall transfer to the
5.32program's special revenue fund account any remaining balance of the amount appropriated
5Sec. 4.
REVISOR JFK/AD 23-0120001/03/23 6.1for the program in Laws 2021, First Special Session chapter 2, article 1, section 2, subdivision
6.238.
6.3 (b) The commissioner may use no more than $200,000 of this appropriation to administer
6.4the program.
6.5 (c) The base for this appropriation is $10,000,000 in fiscal year 2026 and later.
6.6 Subd. 2.Grants to underrepresented student teachers.(a) $2,500,000 in fiscal year
6.72024 and $2,500,000 in fiscal year 2025 are appropriated from the general fund to the
6.8commissioner of the Office of Higher Education for grants to underrepresented student
6.9teachers under Minnesota Statutes, section 136A.1274.
6.10 (b) The commissioner may use no more than three percent of this appropriation to
6.11administer the program.
6.12 (c) The base for this appropriation is $3,000,000 in fiscal year 2026 and later.
6.13 Subd. 3.Teacher shortage loan repayment program.(a) $8,250,000 in fiscal year
6.142024 and $8,250,000 in fiscal year 2025 are appropriated from the general fund for transfer
6.15to the teacher shortage loan repayment account in the special revenue fund under Minnesota
6.16Statutes, section 136A.1791, subdivision 8.
6.17 (b) The amount reserved for eligible applicants belonging to a racial or ethnic group
6.18underrepresented in the teacher workforce pursuant to Minnesota Statutes, section 136A.1791,
6.19subdivision 2, paragraph (e), as amended by this act, may be no less than $8,000,000 in
6.20each fiscal year.
6.21 (c) The commissioner may use no more than $250,000 of this appropriation to administer
6.22the program.
6.23 (d) The base for this appropriation is $8,250,000 in fiscal year 2026 and later.
6.24 Sec. 5. REVISOR INSTRUCTION.
6.25 The revisor of statutes shall codify Laws 2021, First Special Session chapter 2, article
6.262, section 45, as amended by this act, as a new section in Minnesota Statutes numbered
6.27136A.1273.
6Sec. 5.
REVISOR JFK/AD 23-0120001/03/23