HF 3924

2nd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to higher education; authorizing the disclosure of certain information;
modifying the classification of certain data; modifying programs of the Office of
Higher Education; making technical changes; modifying the student share for
the state grant program; modifying and adjusting certain terms and conditions
of loans and of work-study; establishing certain task forces; establishing a
cost study; authorizing construction; granting authority to control receipts;
establishing borrowing limits; appropriating money and reducing certain
appropriations; amending Minnesota Statutes 2004, sections 135A.031,
subdivision 7; 135A.034, subdivision 1; 135A.053, subdivision 2; 136A.101,
subdivisions 4, 8; 136A.15, subdivisions 6, 9, by adding a subdivision;
136A.16, by adding a subdivision; 136A.162; 136A.1701, subdivisions 4,
7, by adding a subdivision; 136A.233, subdivision 3; 136F.42, subdivision
1; 136F.71, subdivision 2, by adding a subdivision; 137.022, subdivision 4;
137.17, subdivisions 1, 3; Minnesota Statutes 2005 Supplement, sections
13.32, subdivision 3; 135A.52, subdivisions 1, 2; 136A.1701, subdivision 12;
Laws 2005, chapter 107, article 1, sections 1; 2, subdivisions 1, 2; proposing
coding for new law in Minnesota Statutes, chapters 135A; 136A; 471; repealing
Minnesota Statutes 2004, sections 135A.01; 135A.031, subdivisions 1, 2, 5, 6;
135A.032; 135A.033; 136A.15, subdivision 5; 136A.1702; 137.17, subdivisions
2, 4; Minnesota Statutes 2005 Supplement, section 135A.031, subdivisions 3, 4;
Minnesota Rules, parts 4850.0011, subparts 9, 10, 14, 27; 4850.0014, subpart 1.

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

Section 1.

Minnesota Statutes 2005 Supplement, section 13.32, subdivision 3, is
amended to read:

Subd. 3.

Private data; when disclosure is permitted.

Except as provided in
subdivision 5, educational data is private data on individuals and shall not be disclosed
except as follows:

(a) pursuant to section 13.05;

(b) pursuant to a valid court order;

(c) pursuant to a statute specifically authorizing access to the private data;

(d) to disclose information in health and safety emergencies pursuant to the
provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code of Federal
Regulations, title 34, section 99.36;

(e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1),
(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3) new text begin , (i)(1), new text end and Code of Federal Regulations, title 34,
sections 99.31, 99.32, 99.33, 99.34, and 99.35;

(f) to appropriate health authorities to the extent necessary to administer
immunization programs and for bona fide epidemiologic investigations which the
commissioner of health determines are necessary to prevent disease or disability to
individuals in the public educational agency or institution in which the investigation
is being conducted;

(g) when disclosure is required for institutions that participate in a program under
title IV of the Higher Education Act, United States Code, title 20, section 1092;

(h) to the appropriate school district officials to the extent necessary under
subdivision 6, annually to indicate the extent and content of remedial instruction, including
the results of assessment testing and academic performance at a postsecondary institution
during the previous academic year by a student who graduated from a Minnesota school
district within two years before receiving the remedial instruction;

(i) to appropriate authorities as provided in United States Code, title 20, section
1232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the
system to effectively serve, prior to adjudication, the student whose records are released;
provided that the authorities to whom the data are released submit a written request for
the data that certifies that the data will not be disclosed to any other person except as
authorized by law without the written consent of the parent of the student and the request
and a record of the release are maintained in the student's file;

(j) to volunteers who are determined to have a legitimate educational interest in
the data and who are conducting activities and events sponsored by or endorsed by the
educational agency or institution for students or former students;

(k) to provide student recruiting information, from educational data held by colleges
and universities, as required by and subject to Code of Federal Regulations, title 32,
section 216;

(l) to the juvenile justice system if information about the behavior of a student who
poses a risk of harm is reasonably necessary to protect the health or safety of the student
or other individuals;

(m) with respect to Social Security numbers of students in the adult basic education
system, to Minnesota State Colleges and Universities and the Department of Employment
and Economic Development for the purpose and in the manner described in section
124D.52, subdivision 7; or

(n) to the commissioner of education for purposes of an assessment or investigation
of a report of alleged maltreatment of a student as mandated by section 626.556. Upon
request by the commissioner of education, data that are relevant to a report of maltreatment
and are from charter school and school district investigations of alleged maltreatment of a
student must be disclosed to the commissioner, including, but not limited to, the following:

(1) information regarding the student alleged to have been maltreated;

(2) information regarding student and employee witnesses;

(3) information regarding the alleged perpetrator; and

(4) what corrective or protective action was taken, if any, by the school facility in
response to a report of maltreatment by an employee or agent of the school or school
district.

Sec. 2.

Minnesota Statutes 2004, section 135A.031, subdivision 7, is amended to read:

Subd. 7.

Reports.

Instructional expenditure and enrollment data deleted text begin for each
instructional category deleted text end shall be submitted new text begin by the public postsecondary systems to the
Office of Higher Education and the Department of Finance and included new text end in the biennial
budget document. new text begin The specific data shall be submitted only after the director of the Office
of Higher Education has consulted with a data advisory task force to determine the need,
content, and detail of the information.
new text end

Sec. 3.

Minnesota Statutes 2004, section 135A.034, subdivision 1, is amended to read:

Subdivision 1.

Operating budget.

The governing boards of the University of
Minnesota, and the Minnesota State Colleges and Universities shall each develop, for
legislative and executive branch acceptance, its highest budget priorities in accordance
with statewide objectives for higher education. deleted text begin It is the intent of the legislature to
appropriate at least 67 percent of the total cost of instruction after adjusting for inflation
and enrollment changes. However, in the event of a budget shortfall, or if funding of
inflation is not possible, available funding shall first be applied to the agreed upon budget
priorities.
deleted text end

Sec. 4.

new text begin [135A.043] RESIDENT TUITION.
new text end

new text begin (a) A student shall qualify for a resident tuition rate or its equivalent at state
universities and colleges, including the University of Minnesota, if the student meets
all of the following requirements:
new text end

new text begin (1) high school attendance within the state for three or more years;
new text end

new text begin (2) graduation from a state high school or attainment within the state of the
equivalent of high school graduation;
new text end

new text begin (3) registration as an entering student at, or current enrollment in, a public institution
of higher education; and
new text end

new text begin (4) in the case of a student without lawful immigration status, the filing of an
affidavit with the institution of higher education stating that the student has filed an
application to legalize his or her immigration status, or will file an application at the
earliest opportunity the individual is eligible to do so.
new text end

new text begin (b) This section is in addition to any other statute, rule, or higher education
institution regulation or policy providing eligibility for a resident tuition rate or its
equivalent to a student.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to tuition for school terms commencing on or after that date.
new text end

Sec. 5.

Minnesota Statutes 2004, section 135A.053, subdivision 2, is amended to read:

Subd. 2.

Performance and accountability.

Higher education systems and
campuses are expected to achieve the objectives in subdivision 1 and will be held
accountable for doing so. The legislature is increasing the flexibility of the systems and
campuses to provide greater responsibility to higher education in deciding how to achieve
statewide objectives, and to decentralize authority so that those decisions can be made
at the level where the education is delivered. deleted text begin To demonstrate their accountability, the
legislature expects each system and campus to measure and report on its performance,
using meaningful indicators that are critical to achieving the objectives in subdivision 1,
as provided in section 135A.033. deleted text end Nothing in this section precludes a system or campus
from determining its own objectives and performance measures beyond those identified
in this section.

Sec. 6.

Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 1, is
amended to read:

Subdivision 1.

Fees and tuition.

Except for an administration fee established by the
governing board at a level to recover costs, to be collected only when a course is taken for
credit, a senior citizen who is a legal resident of Minnesota is entitled without payment
of tuition or activity fees to attend courses offered for credit, audit any courses offered
for credit, or enroll in any noncredit courses in any state supported institution of higher
education in Minnesota when space is available after all tuition-paying students have been
accommodated. A senior citizen enrolled under this section must pay any materials,
personal property, or service charges for the course. In addition, a senior citizen who is
enrolled in a course for credit must pay an administrative fee in an amount established
by the governing board of the institution to recover deleted text begin the course deleted text end costs. There shall be no
administrative fee charges to a senior citizen auditing a course. For the purposes of this
section and section 135A.51, the term "noncredit courses" shall not include those courses
designed and offered specifically and exclusively for senior citizens.

The provisions of this section and section 135A.51 do not apply to noncredit courses
designed and offered by the University of Minnesota, and the Minnesota State Colleges
and Universities specifically and exclusively for senior citizens. Senior citizens enrolled
under the provisions of this section and section 135A.51 shall not be included by such
institutions in their computation of full-time equivalent students when requesting staff
or appropriations.

Sec. 7.

Minnesota Statutes 2005 Supplement, section 135A.52, subdivision 2, is
amended to read:

Subd. 2.

Term; income of senior citizens.

(a) Except under paragraph (b), there
shall be no limit to the number of terms, quarters or semesters a senior citizen may attend
courses, nor income limitation imposed in determining eligibility.

(b) A senior citizen enrolled in a closed enrollment contract training deleted text begin or professional
continuing education deleted text end program is not eligible for benefits under subdivision 1.

Sec. 8.

Minnesota Statutes 2004, section 136A.101, subdivision 4, is amended to read:

Subd. 4.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution new text begin that: new text end

new text begin (1) is new text end located in this state or in a state with which the office has entered into a higher
education reciprocity agreement on state student aid programs deleted text begin that either (1) deleted text end new text begin ; new text end

new text begin (2) new text end is operated by this state new text begin or by the University of Minnesota new text end , or deleted text begin (2) deleted text end is operated
publicly or privately and, as determined by the office, maintains academic standards
substantially equivalent to those of comparable institutions operated in this state deleted text begin . deleted text end new text begin ; and
new text end

new text begin (3) is licensed or registered as a postsecondary institution by the Office of Higher
Education or another state agency.
new text end

new text begin Eligible institutions must participate in federal student aid programs under Title IV
of the Higher Education Act of 1965, as amended. An institution that participated in
the state grant program in fiscal year 2007 but did not participate in federal student aid
programs under Title IV of the Higher Education Act of 1965, as amended, must become
a participant in the federal student aid programs by July 1, 2009, or lose eligibility to
participate in the state grant program.
new text end

Sec. 9.

Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:

Subd. 8.

Resident student.

"Resident student" means a student who meets one of
the following conditions:

(1) a student who has resided in Minnesota for purposes other than postsecondary
education for at least 12 months without being enrolled at a postsecondary educational
institution for more than five credits in any term;

(2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;

(3) a student who graduated from a Minnesota high school, if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high
school new text begin and the student is physically attending a Minnesota postsecondary educational
institution new text end ; deleted text begin or
deleted text end

(4) a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota deleted text begin . deleted text end new text begin ;
new text end

new text begin (5) a member, spouse, or dependent of a member of the armed forces of the United
States stationed in Minnesota on active federal military service as defined in section
190.05, subdivision 5c;
new text end

new text begin (6) a person or spouse of a person who relocated to Minnesota from an area that
is declared a presidential disaster area within the preceding 12 months if the disaster
interrupted the person's postsecondary education; or
new text end

new text begin (7) a person defined as a refugee under United States Code, title 8, section
1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has
continued to reside in Minnesota.
new text end

Sec. 10.

Minnesota Statutes 2004, section 136A.15, subdivision 6, is amended to read:

Subd. 6.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution that deleted text begin either deleted text end new text begin :
new text end

(1) is operated or regulated by this state new text begin or by the University of Minnesota new text end , or deleted text begin (2) deleted text end is
operated publicly or privately in another state, is approved by the United States Secretary
of Education, and, as determined by the office, maintains academic standards substantially
equal to those of comparable institutions operated in this state deleted text begin . It also includes any
institution chartered in a province. deleted text end new text begin ; or
new text end

new text begin (2) is licensed or registered as a postsecondary institution by the Office of Higher
Education or another state agency.
new text end

new text begin Eligible institutions must participate in federal student aid programs under Title
IV of the Higher Education Act of 1965, as amended. An institution that participated
in the SELF program in fiscal year 2007 but did not participate in federal student aid
programs under Title IV of the Higher Education Act of 1965, as amended, must become
a participant in the federal student aid programs by July 1, 2009, or lose eligibility to
participate in the SELF program.
new text end

new text begin An eligible institution must sign an institutional loan participation agreement with
the office that lists the duties and responsibilities of both the institution and the office.
new text end

Sec. 11.

Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:

Subd. 9.

new text begin Minnesota new text end resident deleted text begin student deleted text end .

" new text begin Minnesota new text end resident deleted text begin student deleted text end " means a
student who meets new text begin one of new text end the new text begin following new text end conditions deleted text begin in section 136A.101, subdivision 8. deleted text end new text begin : new text end

new text begin (1) a student who has resided in Minnesota for purposes other than postsecondary
education for at least 12 months without being enrolled at a postsecondary educational
institution for more than five credits in any term;
new text end

new text begin (2) a dependent student whose parent or legal guardian resides in Minnesota at the
time the student applies;
new text end

new text begin (3) a student who graduated from a Minnesota high school, if the student was a
resident of Minnesota during the student's period of attendance at the Minnesota high
school and the student is physically attending a Minnesota postsecondary educational
institution; or
new text end

new text begin (4) a student who, after residing in the state for a minimum of one year, earned a
high school equivalency certificate in Minnesota.
new text end

Sec. 12.

Minnesota Statutes 2004, section 136A.15, is amended by adding a
subdivision to read:

new text begin Subd. 10. new text end

new text begin Eligible cosigner. new text end

new text begin "Eligible cosigner" means a cosigner who:
new text end

new text begin (1) is at least 24 years old, or at least 18 years old if the cosigner is a sibling;
new text end

new text begin (2) is a United States citizen or permanent resident;
new text end

new text begin (3) permanently resides in the United States; and
new text end

new text begin (4) agrees to the release of information to a consumer credit reporting agency, as
specified in section 136A.162, paragraph (b);
new text end

new text begin (5) is creditworthy by meeting all of the following requirements:
new text end

new text begin (i) no balances at a consumer credit reporting agency discharged through bankruptcy
within the seven years prior to application for credit;
new text end

new text begin (ii) no garnishments, attachments, foreclosure, repossession, or defendant in a suit to
collect a debt appearing on the credit report;
new text end

new text begin (iii) no tax or mechanics liens or judgments appearing on the credit report;
new text end

new text begin (iv) no items that are charged off or are delinquent for 120 days or more, that
in total exceed $50;
new text end

new text begin (v) no more than five percent of current balances at a consumer credit reporting
agency past due, that in total exceed $50.
new text end

Sec. 13.

Minnesota Statutes 2004, section 136A.16, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Interest rate swaps and other agreements. new text end

new text begin (a) The office may enter into
interest rate exchange or swap agreements, hedges, forward purchase or sale agreements,
or other comparable interest rate protection agreements with a third party in connection
with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing
comparable interest rate protection agreements.
new text end

new text begin (b) The agreements authorized by this subdivision include, without limitation, master
agreements, options, or contracts to enter into those agreements in the future and related
agreements, including, without limitation, agreements to provide credit enhancement,
liquidity, or remarketing.
new text end

new text begin (c) The agreements authorized by this subdivision may be entered into on the basis
of negotiation with a qualified third party or through a competitive proposal process on
terms and conditions as and with covenants and provisions approved by the office and
may include, without limitation:
new text end

new text begin (1) provisions establishing reserves;
new text end

new text begin (2) pledging assets or revenues of the office for current or other payments or
termination payments;
new text end

new text begin (3) contracting with the other parties to the agreements to provide for the custody,
collection, securing, investment, and payment of money of the office or money held in
trust; or
new text end

new text begin (4) requiring the issuance of bonds or other agreements authorized by this section
in the future.
new text end

new text begin (d) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate
or at a different variable rate determined in accordance with a formula set out in the
agreement on an amount not exceeding the outstanding principal amount of the bonds or
notes at the time of payment in exchange for an agreement by the third party to pay sums
equal to interest on a like amount at a variable rate determined according to a formula
set out in the agreement.
new text end

new text begin (e) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a
variable rate determined in accordance with a formula set out in the agreement on an
amount not exceeding the outstanding principal amount of the bonds or notes at the time of
payment in exchange for an agreement by the third party to pay sums equal to interest on a
like amount at a fixed rate or rates determined according to a formula set in the agreement.
new text end

new text begin (f) Subject to any applicable covenants of the office, payments required to be made
by the office under the agreement, including termination payments, may be made from
amounts pledged or available to pay debt service on the bonds or notes with respect to
which the agreement was made or from assets of the loan capital fund of the office.
The office may issue bonds or notes to provide for any payments, including, without
limitation, a termination payment due or to become due under an agreement authorized
under this section.
new text end

Sec. 14.

Minnesota Statutes 2004, section 136A.162, is amended to read:

136A.162 CLASSIFICATION OF DATA.

All data on applicants for financial assistance collected and used by the Higher
Education Services Office for student financial aid programs administered by that office
shall be classified as private data on individuals under section 13.02, subdivision 12.
Exceptions to this classification are that:

(a) deleted text begin the names and addresses of program recipients or participants are public data;
deleted text end

deleted text begin (b) deleted text end data on applicants may be disclosed to the commissioner of human services
to the extent necessary to determine eligibility under section 136A.121, subdivision 2,
clause (5); and

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

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 15.

Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to
read:

Subd. 4.

Terms and conditions of loans.

new text begin (a) new text end The office may loan money upon such
terms and conditions as the office may prescribe. The principal amount of a loan to an
undergraduate student for a single academic year shall not exceed $6,000 new text begin for grade levels
1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal
amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount
of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006 new text end . The
aggregate principal amount of all loans made under this section to an undergraduate
student shall not exceed deleted text begin $25,000 deleted text end new text begin $34,500 through June 30, 2007, and $37,500 after June
30, 2007 new text end . The principal amount of a loan to a graduate student for a single academic year
shall not exceed $9,000. The aggregate principal amount of all loans made under this
section to a student as deleted text begin a deleted text end new text begin an undergraduate and new text end graduate student shall not exceed deleted text begin $40,000. deleted text end new text begin
$52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of the loan
may not exceed the cost of attendance less all other financial aid, including PLUS loans or
other similar parent loans borrowed on the student's behalf. The cumulative SELF loan
debt must not exceed the borrowing maximums in paragraph (b).
new text end

new text begin (b) The cumulative undergraduate borrowing maximums for SELF loans are:
new text end

new text begin (1) effective July 1, 2006, through June 30, 2007:
new text end

new text begin (i) grade level 1, $6,000;
new text end

new text begin (ii) grade level 2, $12,000;
new text end

new text begin (iii) grade level 3, $19,500;
new text end

new text begin (iv) grade level 4, $27,000; and
new text end

new text begin (v) grade level 5, $34,500; and
new text end

new text begin (2) effective July 1, 2007:
new text end

new text begin (i) grade level 1, $7,500;
new text end

new text begin (ii) grade level 2, $15,000;
new text end

new text begin (iii) grade level 3, $22,500;
new text end

new text begin (iv) grade level 4, $30,000; and
new text end

new text begin (v) grade level 5, $37,500.
new text end

Sec. 16.

Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to
read:

Subd. 7.

Repayment of loans.

new text begin (a) new text end The office shall establish repayment procedures
for loans made under this section, but in no event shall the period of permitted repayment
new text begin for SELF II or SELF III loans new text end exceed ten years from the eligible student's termination of
the student's postsecondary academic or vocational program, or 15 years from the date of
the student's first loan under this section, whichever is less.

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

Sec. 17.

Minnesota Statutes 2005 Supplement, section 136A.1701, subdivision 12,
is amended to read:

Subd. 12.

Eligible student.

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

Sec. 18.

Minnesota Statutes 2004, section 136A.1701, is amended by adding a
subdivision to read:

new text begin Subd. 13. new text end

new text begin Cosigner requirement. new text end

new text begin All borrowers under this section must have an
eligible cosigner. The cosigner is jointly and separately responsible for making loan
payments, including principal, interest, and other charges.
new text end

Sec. 19.

new text begin [136A.1704] LOAN REHABILITATION.
new text end

new text begin (a) For SELF loans that have defaulted, the borrower or cosigner has the option to
rehabilitate the loan, as loan rehabilitation is not prohibited under any federal or state
statute, rule, regulation, act, or requirement.
new text end

new text begin (b) A defaulted SELF loan can be rehabilitated only once and rehabilitation can
only be attempted twice per loan.
new text end

new text begin (c) An agreement specifying the required payment amount and payment due date
must be signed by the borrower or cosigner prior to the start of the rehabilitation process
and within two years of the default date.
new text end

new text begin (d) Twelve consecutive months of on-time payments are required to consider the
loan rehabilitated. There is a five-business-day grace period.
new text end

new text begin (e) If the loan is paid in full within 90 days of default, the loan will be considered
rehabilitated upon receipt of a rehabilitation request.
new text end

new text begin (f) Rehabilitation results in removal of the defaulted status, but not the past due
history, from the credit bureau.
new text end

Sec. 20.

new text begin [136A.1705] TEMPORARY TOTAL DISABILITY.
new text end

new text begin A temporary total disability for up to three years may be granted to a borrower upon
medical certification that the total disability is expected to last four months or longer. The
total disability must have originated after the loan was fully disbursed. The borrower is
required to provide a certification from a qualified physician. A qualified physician is a
doctor of medicine or osteopathy who is legally authorized to practice medicine. Periodic
recertifications of the total disability status must be provided upon request. During the
approved total disability period, the loan does not accrue interest. The borrower shall be
given the option to sign a payment extension agreement at the time payments are resumed.
new text end

Sec. 21.

Minnesota Statutes 2004, section 136A.233, subdivision 3, is amended to read:

Subd. 3.

Payments.

Work-study payments shall be made to eligible students by
postsecondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the postsecondary
institution on the basis of student financial need.

(b) In selecting students for participation, priority must be given to students enrolled
for at least 12 credits. new text begin In each academic year, a student may be awarded work-study
payments for one period of nonenrollment or less than half-time enrollment if the student
enrolls on at least a half-time basis during the following academic term.
new text end

(c) Students will be paid for hours actually worked and the maximum hourly rate
of pay shall not exceed the maximum hourly rate of pay permitted under the federal
college work-study program.

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student
compensation to be paid by an eligible employer.

(f) Each postsecondary institution receiving money for state work-study grants
shall make a reasonable effort to place work-study students in employment with eligible
employers outside the institution. However, a public employer other than the institution
may not terminate, lay off, or reduce the working hours of a permanent employee for the
purpose of hiring a work-study student, or replace a permanent employee who is on layoff
from the same or substantially the same job by hiring a work-study student.

(g) The percent of the institution's work-study allocation provided to graduate
students shall not exceed the percent of graduate student enrollment at the participating
institution.

(h) An institution may use up to 30 percent of its allocation for student internships
with private, for-profit employers.

Sec. 22.

Minnesota Statutes 2004, section 136F.42, subdivision 1, is amended to read:

Subdivision 1.

Time reporting.

As provided in Executive Order 96-2, the board,
in consultation with the commissioners of employee relations and finance, may develop
policies to allow system office or campus employees on salaries, as defined in section
43A.17, subdivision 1, to use negative time reporting in which employees report only that
time for which leave is taken. deleted text begin By the end of the 1997 fiscal year, the board, in consultation
with the commissioners of employee relations and finance, shall evaluate the use of
negative time reporting and its potential for use with other state employees. deleted text end

Sec. 23.

Minnesota Statutes 2004, section 136F.71, subdivision 2, is amended to read:

Subd. 2.

Activity funds.

All receipts attributable to the state colleges and
universities activity funds deleted text begin and deposited in the state treasury deleted text end are appropriated to the board
and are not subject to budgetary control as exercised by the commissioner of finance.

Sec. 24.

Minnesota Statutes 2004, section 136F.71, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Banking services. new text end

new text begin Notwithstanding section 16A.27, the board shall
have authority to control the amount and manner of deposit of all receipts described in
this section in depositories selected by the board. The board's authority shall include
specifying the considerations, financial activities, and conditions required from the
depository, including the requirement of collateral security or a corporate surety bond
as described in section 118A.03. The board may compensate the depository, including
paying a reasonable charge to the depository, maintaining appropriate compensating
balances with the depository, or purchasing non-interest-bearing certificates of deposit
from the depository for performing depository-related services.
new text end

Sec. 25.

Minnesota Statutes 2004, section 137.022, subdivision 4, is amended to read:

Subd. 4.

Mineral research; scholarships.

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

(b)(1) Fifty percent of the income, up to deleted text begin $25,000,000 deleted text end new text begin $50,000,000 new text end , must be credited
to the mineral research account of the fund to be allocated for the Natural Resources
Research Institute-Duluth and Coleraine facilities, for mineral and mineral-related
research including mineral-related environmental research; and

(2) The remainder must be credited to the endowed scholarship account of the fund
for distribution annually for scholastic achievement as provided by the Board of Regents
to undergraduates enrolled at the University of Minnesota who are resident students as
defined in section 136A.101, subdivision 8.

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

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

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

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

Sec. 26.

Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:

Subdivision 1.

Establish.

The Board of Regents may establish a deleted text begin school of
professional and graduate studies as a nonresidential deleted text end branch campus of the University of
Minnesota deleted text begin , deleted text end new text begin in new text end Rochester, to serve the new text begin educational new text end needs of deleted text begin working adults and other
nontraditional deleted text end students deleted text begin in southeastern Minnesota. The campus shall be a joint partnership
of the University of Minnesota with Rochester Community and Technical College, and
Winona State University. deleted text end new text begin and to foster the economic goals of the region and the state. The
legislature intends that the University of Minnesota expand higher education offerings in
Rochester. It is the intent of the legislature that this be achieved in part by developing new
and strengthening existing partnerships with higher education institutions in Rochester
and the region in which the state already has a significant investment.
new text end

deleted text begin The Board of Trustees of the Minnesota State Colleges and Universities shall
cooperate to achieve the foregoing.
deleted text end

Sec. 27.

Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:

Subd. 3.

Missions.

The legislature new text begin intends that the mission of the expanded
education offerings in Rochester be congruent with the university's unique core mission of
teaching, research, and outreach in order to support the educational needs and economic
development of this region and the state. The legislature new text end recognizes that the distinctiveness
of each of the deleted text begin partner deleted text end new text begin higher education new text end institutions in Rochester must be maintained to
achieve success in serving the higher education needs of the community and the economic
goals of the state. deleted text begin Further, the legislature intends that the University of Minnesota and the
other partner institutions avoid duplicative offerings of courses and programs. Therefore,
the University of Minnesota, Winona State University, and Rochester Community and
Technical College shall develop jointly a statement of missions, roles, and responsibilities
for the programs and services at Rochester which shall be submitted to the legislature by
January 30, 2000, and any time thereafter that the missions, roles, and responsibilities
change.
deleted text end

Sec. 28.

new text begin [471.685] LIMIT ON POSTSECONDARY INSTITUTION FEES.
new text end

new text begin A statutory or home rule charter city, county, or town may not impose a fee,
assessment, or similar charge:
new text end

new text begin (1) on a person, based on the person's status as a student enrolled in a postsecondary
educational institution; or
new text end

new text begin (2) on a postsecondary educational institution, based on the number of students
attending the postsecondary institution.
new text end

Sec. 29.

Laws 2005, chapter 107, article 1, section 1, is amended to read:

Section 1. HIGHER EDUCATION APPROPRIATIONS.

The sums in the columns marked "APPROPRIATIONS" are appropriated from the general
fund, or other named fund, to the agencies and for the purposes specified in this article.
The listing of an amount under the figure "2006" or "2007" in this article indicates that the
amount is appropriated to be available for the fiscal year ending June 30, 2006, or June
30, 2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal
year 2007. "The biennium" is fiscal years 2006 and 2007.

SUMMARY BY FUND
		2006		2007		TOTAL
General	$	1,365,500,000	$	deleted text begin 1,395,500,000 deleted text end new text begin 1,395,200,000 new text end	$	deleted text begin 2,761,000,000 deleted text end new text begin 2,760,700,000 new text end
Health Care Access		2,157,000		2,157,000		4,314,000

SUMMARY BY AGENCY - ALL FUNDS
		2006		2007		TOTAL
Higher Education Services Office		172,129,000		deleted text begin 177,181,000 deleted text end new text begin 176,881,000 new text end		deleted text begin 349,310,000 deleted text end new text begin 349,010,000 new text end
Board of Trustees of the Minnesota State Colleges and Universities		600,694,000		602,194,000		1,202,888,000
Board of Regents of the University of Minnesota		593,348,000		616,736,000		1,210,084,000
Mayo Medical Foundation		1,391,000		1,391,000		2,782,000
Minnesota Department of Health		95,000		155,000		250,000

			APPROPRIATIONS
			Available for the year
			Ending June 30
				2006		2007

Sec. 30.

Laws 2005, chapter 107, article 1, section 2, subdivision 1, is amended to read:

Subdivision 1. Total Appropriation

$

172,129,000

$

deleted text begin 177,181,000 deleted text end new text begin 176,881,000 new text end

The amounts that may be spent from this
appropriation for each purpose are specified
in the following subdivisions.

Sec. 31.

Laws 2005, chapter 107, article 1, section 2, subdivision 2, is amended to read:

Subd. 2. State Grants

136,394,000

deleted text begin 144,756,000 deleted text end new text begin 144,456,000 new text end

If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it. For
the biennium, the tuition and fee maximum
shall be $9,208 the first year and $9,438 the
second year for students enrolled in four-year
programs and $6,567 the first year and
$6,436 the second year for students enrolled
in two-year programs. new text begin The funding base for
this program in fiscal years 2008 and 2009 is
$144,406,000 per year.
new text end

The Higher Education Services Office must
study the for-profit postsecondary education
sector licensed or registered in Minnesota.
The study must examine tuition levels
and program offerings, student debt load,
financial assistance, and the impact of the
tuition and fee maximums set in law on this
postsecondary sector and its students. The
study must also analyze the relationship of
the tuition and fee maximums and tuition
levels. The office must report on the findings
to the legislative committees responsible for
higher education finance by November 15,
2006. This study may be done in conjunction
with the licensing study in article 3.

This appropriation sets the living and
miscellaneous expense allowance at $5,350
each year.

This appropriation contains money to provide
educational benefits to dependent children
under age 23 and the spouses of public
safety officers killed in the line of duty under
Minnesota Statutes 2004, section 299A.45.

Sec. 32. new text begin CREDIT SCORING STUDY.
new text end

new text begin The Office of Higher Education may study alternatives to the existing credit
requirements for the SELF loan program, including using credit scoring. The office must
report the findings of any study of credit requirements to the legislature by January 15,
2007.
new text end

Sec. 33. new text begin HIGHER EDUCATION ENGLISH PROFICIENCY TASK FORCE.
new text end

new text begin (a) A Higher Education English Proficiency Task Force is created consisting of
ten members as follows:
new text end

new text begin (1) two postsecondary students, one from the University of Minnesota and one
from the Minnesota State Colleges and Universities, appointed by the Office of Higher
Education;
new text end

new text begin (2) one University of Minnesota administrator, appointed by the University of
Minnesota president;
new text end

new text begin (3) one faculty member of the University of Minnesota, appointed by the Office of
Higher Education;
new text end

new text begin (4) one Minnesota State Colleges and Universities administrator, appointed by
the chancellor;
new text end

new text begin (5) one faculty member of the Minnesota State Colleges and Universities, appointed
by the Office of Higher Education;
new text end

new text begin (6) two state representatives, one from each caucus, appointed by the house chair
of higher education; and
new text end

new text begin (7) two state senators, one from each caucus, appointed by the senate chair of higher
education.
new text end

new text begin (b) Appointments of faculty members must be made from a list of two or more
nominees submitted jointly by the Inter Faculty Organization (IFO) and the Minnesota
State College Faculty (MSCF) and two or more nominees submitted jointly by groups
representing faculty at each campus of the University of Minnesota. Lists of nominees
must be submitted to the Office of Higher Education by June 30, 2006. Appointments shall
be made by July 15, 2006. Members of the task force must serve without compensation
or reimbursement of personal expenses.
new text end

new text begin (c) The Minnesota Office of Higher Education shall convene the first meeting of the
task force and must provide office support services to the task force as needed. The task
force may determine the date, location, and agenda of additional meetings.
new text end

new text begin (d) The task force shall investigate and report on the assessment of all faculty
and teaching assistants' communication skills, including the ability to speak English
clearly and with good pronunciation; the notification to students of opportunities to
file complaints; the process for responding to student complaints; and the resolution of
reported communication problems.
new text end

new text begin (e) The task force shall report findings and recommendations for improvements to
the legislature by January 15, 2007.
new text end

Sec. 34. new text begin HIGHER EDUCATION TEXTBOOK COST STUDY.
new text end

new text begin The Minnesota Office of Higher Education shall convene an advisory task force
to study the costs of required textbooks for students attending public and nonpublic
postsecondary institutions. The task force must, at a minimum, include students,
representatives of the Association of American Publishers, the postsecondary textbook
publishers, the National Association of College Stores, campus bookstore managers,
faculty, and administrators. Student members must be appointed according to section
136A.031, subdivision 4. Faculty members must be appointed from lists of two or more
nominees submitted by the Inter Faculty Organization (IFO), the Minnesota State College
Faculty (MSCF), and by groups representing faculty at each campus of the University
of Minnesota. The study must, without limitation, examine textbook pricing trends and
strategies, the practice of textbook rental, policies related to repurchase of textbooks from
students, textbook selection policies, and purchasing practices of colleges and universities.
The task force must review the findings and recommendations of other existing studies
and any state or national laws that have been considered or adopted to reduce the
financial burden of textbook costs. The office must report on its findings and present any
recommendations by January 15, 2007, to the legislative committees with jurisdiction
over higher education policy and finance.
new text end

Sec. 35. new text begin TEMPORARY PROVISION FOR APPROVAL OF CERTAIN HIGHER
EDUCATION DEGREES.
new text end

new text begin Subdivision 1. new text end

new text begin Supersede. new text end

new text begin This section supersedes any conflicting Minnesota
Statute or Rule.
new text end

new text begin Subd. 2. new text end

new text begin Degree approval. new text end

new text begin A school licensed pursuant to Minnesota Statutes,
chapter 141, may not grant a degree as defined in Minnesota Statutes, section 136A.62,
subdivision 4, unless the degree is approved by the Office of Higher Education.
new text end

new text begin Subd. 3. new text end

new text begin Approval criteria. new text end

new text begin A school licensed pursuant to Minnesota Statutes,
chapter 141, to obtain approval to grant a degree must provide evidence to the Office of
Higher Education that the following requirements are met:
new text end

new text begin (1) the school employs qualified teaching personnel to provide the educational
programs for each degree for which approval is sought;
new text end

new text begin (2) the educational program is appropriate to each degree for which approval is
sought;
new text end

new text begin (3) the school has appropriate and accessible library, laboratory, and other physical
facilities to support the education program for each degree for which approval is sought;
and
new text end

new text begin (4) the school makes a rationale showing that the degree programs are consistent
with the school's mission and goals.
new text end

new text begin Subd. 4. new text end

new text begin Effect of approval. new text end

new text begin Approval to grant a degree under this section has the
same effect as approval under Minnesota Statutes, section 136A.65.
new text end

new text begin Subd. 5. new text end

new text begin Notice of changes. new text end

new text begin A school authorized to grant a degree under this section
must notify the Office of Higher Education of proposed changes to the degree and the
addition of majors or specialty areas to a degree.
new text end

new text begin Subd. 6. new text end

new text begin Expiration. new text end

new text begin This section expires June 30, 2007.
new text end

Sec. 36. new text begin MINNESOTA STATE UNIVERSITY, MANKATO, CONSTRUCTION
AUTHORIZATION.
new text end

new text begin The Board of Trustees of the Minnesota State Colleges and Universities may
design, construct, furnish, and equip an academic building on the Minnesota State
University, Mankato campus for the College of Business at a site approved by the board
using nonstate money. A facility endowment must be created with nonstate money for
operating costs of the building.
new text end

Sec. 37. new text begin UNIVERSITY OF MINNESOTA LICENSING AND MINNESOTA
MARKET IMPACT STUDY.
new text end

new text begin The University of Minnesota shall establish a task force to study the market impact
on Minnesota producers of agricultural products from the University of Minnesota
licensing germplasm and to make recommendations to the legislature and the Board
of Regents on ways to mitigate any negative impacts on Minnesota businesses that
arise from University of Minnesota license agreements. The task force must include a
representative of the University of Minnesota Extension Service serving as the chair, and
representatives of the Minnesota Farm Bureau, the Minnesota Farmers Union, agricultural
commodity organizations, the Minnesota Apple Growers Association, the Minnesota Fruit
and Vegetable Growers Association, the Minnesota Nursery Landscape Association, the
Minnesota Department of Agriculture, and the Minnesota grown program. Members
serve on the task force on a voluntary basis. The chair may also invite participation from
other staff and faculty of the University of Minnesota as necessary to fulfill the purpose
of the task force. The task force must report to the committees of the legislature with
responsibility for higher education no later than January 15, 2007.
new text end

Sec. 38. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Board of Regents. new text end

new text begin $5,000,000 is appropriated from the general
fund for fiscal year 2007 to the Board of Regents of the University of Minnesota for
the purposes of section 26. This appropriation is for academic programs supporting the
University of Minnesota - Rochester, including faculty, staff, and program planning
and development in the areas of biomedical technologies, engineering, and computer
technologies, health care administration, and allied health programs; ongoing operations
of industrial liaison activities; and operation of leased facilities. This appropriation is in
addition to the appropriation in Laws 2005, chapter 107, article 1, section 4, subdivision 2.
The funding base for activities related to section 26 is $5,000,000 for fiscal year 2008 and
$6,330,000 for fiscal year 2009.
new text end

new text begin Subd. 2. new text end

new text begin Board of Trustees. new text end

new text begin $100,000 is appropriated from the general fund for
fiscal year 2007 to the Board of Trustees of the Minnesota State Colleges and Universities
to facilitate the provision of assistance to veterans at Minnesota State Colleges and
Universities campuses under Minnesota Statutes, section 197.585, if enacted.
new text end

Sec. 39. new text begin ESTABLISHING BORROWING LIMITS.
new text end

new text begin The Office of Higher Education shall study alternatives to establishing borrowing
limits under Minnesota Statutes 2004, section 136A.1701, subdivision 4, by dollar amount
in statute, such as indexing. The office must report the findings of such study to the
legislature by February 1, 2007.
new text end

Sec. 40. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall delete the term "sections 136A.15 to 136A.1702" and
insert "sections 136A.15 to 136A.1705" wherever it appears in Minnesota Statutes and
Minnesota Rules.
new text end

Sec. 41. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, sections 135A.01; 135A.031, subdivisions 1, 2, 5, and 6;
135A.032; 135A.033; 136A.15, subdivision 5; 136A.1702; and 137.17, subdivisions
2 and 4, new text end new text begin and Minnesota Statutes 2005 Supplement, section 135A.031, subdivisions 3
and 4, new text end new text begin and Minnesota Rules, part 4850.0011, subparts 9, 10, 14, and 27; and 4850.0014,
subpart 1, new text end new text begin are repealed.
new text end

Sec. 42. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 41 are effective the day following final enactment.
new text end