HF 3495

1st Committee Engrossment - 86th Legislature (2009 - 2010) Posted on 03/19/2013 07:29pm

1.1A bill for an act

1.2relating to higher education; clarifying data disclosure provisions; authorizing
1.3data matching; modifying institution eligibility; establishing award procedures;
1.4modifying fees; modifying security requirements; requiring certain notice;
1.5establishing a central system office; governing credit transfers; requiring
1.6system office streamlining; providing postretirement premium reimbursement;
1.7establishing a pilot project; making technical corrections; defining and clarifying
1.8terms; governing appropriation reductions;amending Minnesota Statutes 2008,
1.9sections 13.32, subdivision 3; 135A.51, subdivision 2; 136A.101, subdivision
1.1010; 136A.126, by adding a subdivision; 136A.15, subdivision 6; 136A.16,
1.11subdivision 14; 136A.62, subdivision 3; 136A.645; 136A.646; 136A.69,
1.12subdivisions 1, 3, 4; 141.25, subdivisions 7, 13, by adding a subdivision;
1.13141.251, subdivision 2; 141.255; 141.28, subdivision 2; Minnesota Statutes 2009
1.14Supplement, sections 136A.01, subdivision 2; 136A.101, subdivision 4; Laws
1.152009, chapter 95, article 1, section 3, subdivision 21; proposing coding for new
1.16law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota Statutes
1.172008, section 136A.1701, subdivision 5.
1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19    Section 1. Minnesota Statutes 2008, section 13.32, subdivision 3, is amended to read:
1.20    Subd. 3. Private data; when disclosure is permitted. Except as provided in
1.21subdivision 5, educational data is private data on individuals and shall not be disclosed
1.22except as follows:
1.23    (a) pursuant to section 13.05;
1.24    (b) pursuant to a valid court order;
1.25    (c) pursuant to a statute specifically authorizing access to the private data;
1.26    (d) to disclose information in health, including mental health, and safety emergencies
1.27pursuant to the provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code
1.28of Federal Regulations, title 34, section 99.36;
2.1    (e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1),
2.2(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3), (b)(6), (b)(7), and (i), and Code of Federal
2.3Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, 99.35, and 99.39;
2.4    (f) to appropriate health authorities to the extent necessary to administer
2.5immunization programs and for bona fide epidemiologic investigations which the
2.6commissioner of health determines are necessary to prevent disease or disability to
2.7individuals in the public educational agency or institution in which the investigation
2.8is being conducted;
2.9    (g) when disclosure is required for institutions that participate in a program under
2.10title IV of the Higher Education Act, United States Code, title 20, section 1092;
2.11    (h) to the appropriate school district officials to the extent necessary under
2.12subdivision 6, annually to indicate the extent and content of remedial instruction, including
2.13the results of assessment testing and academic performance at a postsecondary institution
2.14during the previous academic year by a student who graduated from a Minnesota school
2.15district within two years before receiving the remedial instruction;
2.16    (i) to appropriate authorities as provided in United States Code, title 20, section
2.171232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the
2.18system to effectively serve, prior to adjudication, the student whose records are released;
2.19provided that the authorities to whom the data are released submit a written request for
2.20the data that certifies that the data will not be disclosed to any other person except as
2.21authorized by law without the written consent of the parent of the student and the request
2.22and a record of the release are maintained in the student's file;
2.23    (j) to volunteers who are determined to have a legitimate educational interest in
2.24the data and who are conducting activities and events sponsored by or endorsed by the
2.25educational agency or institution for students or former students;
2.26    (k) to provide student recruiting information, from educational data held by colleges
2.27and universities, as required by and subject to Code of Federal Regulations, title 32,
2.28section 216;
2.29    (l) to the juvenile justice system if information about the behavior of a student who
2.30poses a risk of harm is reasonably necessary to protect the health or safety of the student
2.31or other individuals;
2.32    (m) with respect to Social Security numbers of students in the adult basic education
2.33system, to Minnesota State Colleges and Universities and the Department of Employment
2.34and Economic Development for the purpose and in the manner described in section
2.35124D.52, subdivision 7 ;
3.1    (n) to the commissioner of education for purposes of an assessment or investigation
3.2of a report of alleged maltreatment of a student as mandated by section 626.556. Upon
3.3request by the commissioner of education, data that are relevant to a report of maltreatment
3.4and are from charter school and school district investigations of alleged maltreatment of a
3.5student must be disclosed to the commissioner, including, but not limited to, the following:
3.6    (1) information regarding the student alleged to have been maltreated;
3.7    (2) information regarding student and employee witnesses;
3.8    (3) information regarding the alleged perpetrator; and
3.9    (4) what corrective or protective action was taken, if any, by the school facility in
3.10response to a report of maltreatment by an employee or agent of the school or school
3.11district;
3.12    (o) when the disclosure is of the final results of a disciplinary proceeding on a charge
3.13of a crime of violence or nonforcible sex offense to the extent authorized under United
3.14States Code, title 20, section 1232g(b)(6)(A) and (B) and Code of Federal Regulations,
3.15title 34, sections 99.31(a)(13) and (14);
3.16    (p) when the disclosure is information provided to the institution under United States
3.17Code, title 42, section 14071, concerning registered sex offenders to the extent authorized
3.18under United States Code, title 20, section 1232g(b)(7); or
3.19    (q) when the disclosure is to a parent of a student at an institution of postsecondary
3.20education regarding the student's violation of any federal, state, or local law or of any
3.21rule or policy of the institution, governing the use or possession of alcohol or of a
3.22controlled substance, to the extent authorized under United States Code, title 20, section
3.231232g(i), and Code of Federal Regulations, title 34, section 99.31(a)(15), and provided the
3.24institution has an information release form signed by the student authorizing disclosure
3.25to a parent. The institution must notify parents and students about the purpose and
3.26availability of the information release forms. At a minimum, the institution must distribute
3.27the information release forms at parent and student orientation meetings.

3.28    Sec. 2. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read:
3.29    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 66
3.30years of age before the beginning of any term, semester or quarter, in which a course of
3.31study is pursued, or a person receiving a railroad retirement annuity who has reached 60
3.32years of age before the beginning of the term.

3.33    Sec. 3. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is
3.34amended to read:
4.1    Subd. 2. Responsibilities. (a) The Minnesota Office of Higher Education is
4.2responsible for:
4.3(1) necessary state level administration of financial aid programs, including
4.4accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
4.5financial aid programs to the governor and the legislature;
4.6(2) approval, registration, licensing, and financial aid eligibility of private collegiate
4.7and career schools, under sections 136A.61 to 136A.71 and chapter 141;
4.8(3) negotiating and administering reciprocity agreements;
4.9(4) publishing and distributing financial aid information and materials, and other
4.10information and materials under section 136A.87, to students and parents;
4.11(5) collecting and maintaining student enrollment and financial aid data and
4.12reporting data on students and postsecondary institutions to develop and implement a
4.13process to measure and report on the effectiveness of postsecondary institutions;
4.14(6) administering the federal programs that affect students and institutions on a
4.15statewide basis; and
4.16(7) prescribing policies, procedures, and rules under chapter 14 necessary to
4.17administer the programs under its supervision.
4.18(b) The office is authorized to match individual student data from the student record
4.19enrollment database with individual student financial aid data collected and maintained
4.20by the office in order to audit or evaluate federal or state supported education programs
4.21as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal
4.22Regulations, title 34, section 99.35. The office may match data from the following
4.23financial aid program databases with data from the student record enrollment database:
4.24tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary
4.25child care grant; the American Indian Scholarship; and the Achieve Scholarship. The
4.26office shall conduct the study in a manner that does not permit personal identification of
4.27parents or students by individuals other than representatives of the office.

4.28    Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is
4.29amended to read:
4.30    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary
4.31educational institution located in this state or in a state with which the office has entered
4.32into a higher education reciprocity agreement on state student aid programs that (1) is
4.33operated by this state or the Board of Regents of the University of Minnesota, or (2)
4.34is operated privately and, as determined by the office, meets all of the following: (i)
4.35maintains academic standards substantially equivalent to those of comparable institutions
5.1operated in this state; (ii) is licensed or registered as a postsecondary institution by the
5.2office or another state agency; and (iii) by July 1, 2013, is participating in the federal Pell
5.3Grant program under Title IV of the Higher Education Act of 1965, as amended. an
5.4institution that meets the eligibility requirements under section 136A.103.

5.5    Sec. 5. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read:
5.6    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress"
5.7means that: satisfactory academic progress as defined under Code of Federal Regulations,
5.8title 34, sections 668.16(e), 668.32(f), and 668.34.
5.9(1) by the end of a student's second academic year of attendance at an institution, the
5.10student has at least a cumulative grade point average of C or its equivalent, or academic
5.11standing consistent with the institution's graduation requirements; and
5.12(2) by the end of the first term of the third and fourth academic year of attendance,
5.13the student has a cumulative grade point average of at least a C or its equivalent.

5.14    Sec. 6. [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS.
5.15(a) A postsecondary institution is eligible for state student aid under chapter 136A
5.16and sections 197.791 and 299A.45, if the institution is located in this state or in a state
5.17with which the office has entered into a higher education reciprocity agreement on state
5.18student aid programs that:
5.19(1) is operated by this state or the Board of Regents of the University of Minnesota;
5.20or
5.21(2) is operated privately and, as determined by the office, meets the requirements of
5.22paragraph (b).
5.23(b) A private institution must:
5.24(1) maintain academic standards substantially equivalent to those of comparable
5.25institutions operated in this state;
5.26(2) be licensed or registered as a postsecondary institution by the office; and
5.27(3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of
5.28the Higher Education Act of 1965, as amended; or
5.29(ii) if an institution was participating in state student aid programs as of June 30,
5.302010, and the institution did not participate in the federal Pell Grant program by June 30,
5.312010, the institution must require every student who enrolls to sign a disclosure form,
5.32provided by the office, stating that the institution is not participating in the federal Pell
5.33Grant program.
6.1(c) An institution that offers only graduate-level degrees or graduate-level nondegree
6.2programs, or that offers only degrees or programs that do not meet the required minimum
6.3program length to participate in the federal Pell Grant program, is an eligible institution if
6.4the institution is licensed or registered as a postsecondary institution by the office.
6.5(d) An eligible institution under paragraph (b), clause (3), item (ii), that changes
6.6ownership as defined in section 136A.63, subdivision 2, must participate in the federal
6.7Pell Grant program within four calendar years of the first ownership change to continue
6.8eligibility.
6.9(e) An institution that loses its eligibility for the federal Pell Grant program is not an
6.10eligible institution.

6.11    Sec. 7. Minnesota Statutes 2008, section 136A.126, is amended by adding a
6.12subdivision to read:
6.13    Subd. 5. Awarding procedure. (a) Complete applications are ranked in order of
6.14completion date. If there are multiple applications with identical completion dates, those
6.15applications are further sorted by application receipt date.
6.16(b) Awards must be made on a first-come, first-served basis in the order complete
6.17applications are received.
6.18(c) Awards are made to eligible students until the appropriation is expended.
6.19(d) Applicants not receiving a grant and for whom the office has received a
6.20completed application are placed on a waiting list in order of application completion date.

6.21    Sec. 8. [136A.129] LEGISLATIVE NOTICE.
6.22The office shall notify the chairs of the legislative committees with primary
6.23jurisdiction over higher education finance of any proposed material change to the
6.24administration of any of the grant or financial aid programs in sections 136A.095 to
6.25136A.128.

6.26    Sec. 9. Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read:
6.27    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary
6.28educational institution that (1) is operated or regulated by this state or the Board of Regents
6.29of the University of Minnesota; (2) is operated publicly or privately in another state, is
6.30approved by the United States Secretary of Education, and, as determined by the office,
6.31maintains academic standards substantially equal to those of comparable institutions
6.32operated in this state; (3) is licensed or registered as a postsecondary institution by the
6.33office or another state agency; and (4) by July 1, 2011, is participating in the federal Pell
7.1Grant program under Title IV of the Higher Education Act of 1965, as amended. It also
7.2includes any institution chartered in a province. an institution that meets the eligibility
7.3requirements under section 136A.155.

7.4    Sec. 10. [136A.155] ADDITIONAL INSTITUTION ELIGIBILITY
7.5REQUIREMENTS.
7.6A postsecondary institution is an eligible institution for purposes of sections
7.7136A.15 to 136A.1702, if the institution:
7.8(1) meets the eligibility requirements under section 136A.103; or
7.9(2) is operated publicly or privately in another state, is approved by the United States
7.10Secretary of Education, and, as determined by the office, maintains academic standards
7.11substantially equal to those of comparable institutions operated in this state.

7.12    Sec. 11. Minnesota Statutes 2008, section 136A.16, subdivision 14, is amended to read:
7.13    Subd. 14. Notes. The office may sell at public or private sale, at the price or prices
7.14determined by the office, any note or other instrument or obligation evidencing or securing
7.15a loan made by the office or its predecessor, including the Minnesota Higher Education
7.16Coordinating Board and the Minnesota Higher Education Services Office.

7.17    Sec. 12. Minnesota Statutes 2008, section 136A.62, subdivision 3, is amended to read:
7.18    Subd. 3. School. "School" means:
7.19    (1) any partnership, company, firm, society, trust, association, corporation, or any
7.20combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary
7.21education institution; (ii) is, owns, or operates a private, for-profit postsecondary education
7.22institution; or (iii) provides a postsecondary instructional program or course leading to a
7.23degree whether or not for profit;
7.24    (2) any public or private postsecondary educational institution located in another
7.25state or country which offers or makes available to a Minnesota resident any course,
7.26program or educational activity which does not require the leaving of the state for its
7.27completion; or
7.28    (3) any individual, entity, or postsecondary institution located in another state
7.29that contracts with any school located within the state of Minnesota for the purpose of
7.30providing educational programs, training programs, or awarding postsecondary credits
7.31or continuing education credits to Minnesota residents that may be applied to a degree
7.32program.

8.1    Sec. 13. Minnesota Statutes 2008, section 136A.645, is amended to read:
8.2136A.645 SCHOOL CLOSURE.
8.3    (a) When a school decides to cease postsecondary education operations, it must
8.4cooperate with the office in assisting students to find alternative means to complete their
8.5studies with a minimum of disruption, and inform the office of the following:
8.6    (1) the planned date for termination of postsecondary education operations;
8.7    (2) the planned date for the transfer of the student records;
8.8    (3) confirmation of the name and address of the organization to receive and hold
8.9the student records; and
8.10    (4) the official at the organization receiving the student records who is designated to
8.11provide official copies of records or transcripts upon request.
8.12    (b) Upon notice from a school of its intention to cease operations, the office shall
8.13notify the school of the date on which it must cease the enrollment of students and all
8.14postsecondary educational operations.
8.15Without limitation as to other circumstance, a school shall be deemed to have ceased
8.16operations when the school:
8.17(1) has an unscheduled nonemergency closure or cancellation of classes for more
8.18than 24 hours without prior notice to the office;
8.19(2) announces it is closed or closing; or
8.20(3) files for bankruptcy.

8.21    Sec. 14. Minnesota Statutes 2008, section 136A.646, is amended to read:
8.22136A.646 ADDITIONAL SECURITY.
8.23    (a) In the event any registered institution is notified by the United States Department
8.24of Education that it has fallen below minimum financial standards and that its continued
8.25participation in Title IV will be conditioned upon its satisfying either the Zone Alternative,
8.26Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit
8.27Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the
8.28institution shall provide a surety bond conditioned upon the faithful performance of all
8.29contracts and agreements with students in a sum equal to the "letter of credit" required by
8.30the United States Department of Education in the Letter of Credit Alternative, but in no
8.31event shall such bond be less than $10,000 nor more than $250,000.
8.32(b) In lieu of a bond, the institution may deposit with the commissioner of finance:
8.33(1) a sum equal to the amount of the required surety bond in cash; or
8.34(2) securities, as may be legally purchased by savings banks or for trust funds, in an
8.35aggregate market value equal to the amount of the required surety bond.

9.1    Sec. 15. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:
9.2    Subdivision 1. Registration fees. (a) The office shall collect reasonable registration
9.3fees that are sufficient to recover, but do not exceed, its costs of administering the
9.4registration program. The office shall charge $1,100 for initial registration fees and $950
9.5for annual renewal fees. the fees listed in paragraphs (b) and (c) for new registrations.
9.6(b) A new school offering no more than one degree at each level during its first year
9.7must pay registration fees for each applicable level in the following amounts:

9.8	associate degree	$2,000
9.9	baccalaureate degree	$2,500
9.10	master's degree	$3,000
9.11	doctorate degree	$3,500

9.12(c) A new school that will offer more than one degree per level during its first
9.13year must pay registration fees in an amount equal to the fee for the first degree at each
9.14degree level under paragraph (b), plus fees for each additional nondegree program or
9.15degree as follows:

9.16	nondegree program	$250
9.17	additional associate degree	$250
9.18	additional baccalaureate degree	$500
9.19	additional master's degree	$750
9.20	additional doctorate degree	$1,000

9.21(d) The annual renewal registration fee is $1,200.

9.22    Sec. 16. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:
9.23    Subd. 3. Degree or nondegree program addition fee. The office processing fee
9.24fees for adding a degree or nondegree program that represents a significant departure in
9.25the objectives, content, or method of delivery of degree or nondegree programs that are
9.26currently offered by the school is $500 per degree or nondegree program. are as follows:

9.27	nondegree program that is a part of an existing degree	-0-
9.28	nondegree program that is not a part of an existing degree	$250 each
9.29 9.30	majors, specializations, emphasis areas, concentrations, and other similar areas of emphasis	$250 each
9.31	associate degrees	$500 each
9.32	baccalaureate degrees	$500 each
9.33	master's degrees	$750 each
9.34	doctorate degrees	$2,000 each

9.35    Sec. 17. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:
10.1    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit
10.2or outside consultant is necessary to review or evaluate any new or revised degree or
10.3nondegree program, the office shall be reimbursed for the expenses incurred related to the
10.4review as follows:
10.5    (1) $300 $400 for the team base fee or for a paper review conducted by a consultant
10.6if the office determines that a fact-finding visit is not required;
10.7    (2) $300 for each day or part thereof on site per team member; and
10.8    (3) the actual cost of customary meals, lodging, and related travel expenses incurred
10.9by team members.

10.10    Sec. 18. [136F.08] CENTRAL SYSTEM OFFICE.
10.11    Subdivision 1. Establishment. A central system office is established for the
10.12Minnesota State Colleges and Universities to provide central support to the institutions
10.13enrolling students and to assist the board in fulfilling its missions under section 136F.05.
10.14The central office must not assume responsibility for services that are most effectively
10.15and efficiently provided at the institution level. The central system office is under the
10.16direction of the chancellor.
10.17    Subd. 2. General duties. The central system office must coordinate system level
10.18responsibilities for financial management, personnel management, facilities management,
10.19information technology, credit transfer, legal affairs, government relations, and auditing.
10.20The central system office shall coordinate its services with the services provided at the
10.21institution level so as not to duplicate any functions that are provided by institutions.

10.22    Sec. 19. [136F.302] CREDIT TRANSFER.
10.23The board of trustees must develop and maintain a systemwide effective and
10.24efficient mechanism for seamless student transfer between system institutions that has a
10.25goal of minimal loss of credits for transferring students. The Degree Audit and Reporting
10.26System (DARS) and the u.select database, and successor databases, housed within the
10.27office of the chancellor shall be the official repository of course equivalencies between
10.28system colleges and universities. Each system college and university shall be responsible
10.29for ensuring the accuracy and completeness of course equivalencies listed for courses
10.30offered by that college or university. The development and maintenance of the system
10.31must, at a minimum, address the following:
10.32(1) alignment of institution curriculum and its communication to stakeholders;
10.33(2) transfer between similar programs;
10.34(3) documentation for transfer-related agreements between institutions;
11.1(4) systemwide transfer information on the Internet that is easily accessible and
11.2maintained in a current and accurate status;
11.3(5) training for campus-level staff to provide accurate and consistent advice to
11.4students;
11.5(6) institutional rather than student obligation to provide prompt required
11.6documentation for course equivalency determinations; and
11.7(7) consistency of transfer policies among institutions in compliance with a system
11.8policy.

11.9    Sec. 20. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision
11.10to read:
11.11    Subd. 2a. Refunds. If a contract is deemed unenforceable under subdivision 2, a
11.12school must refund tuition, fees, and other charges received from a student or on behalf
11.13of a student within 30 days of receiving written notification and demand for refund from
11.14the Minnesota Office of Higher Education.

11.15    Sec. 21. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read:
11.16    Subd. 7. Minimum standards. A license shall be issued if the office first
11.17determines:
11.18    (1) that the applicant has a sound financial condition with sufficient resources
11.19available to:
11.20    (i) meet the school's financial obligations;
11.21    (ii) refund all tuition and other charges, within a reasonable period of time, in the
11.22event of dissolution of the school or in the event of any justifiable claims for refund against
11.23the school by the student body;
11.24    (iii) provide adequate service to its students and prospective students; and
11.25    (iv) maintain and support the school;
11.26    (2) that the applicant has satisfactory facilities with sufficient tools and equipment
11.27and the necessary number of work stations to prepare adequately the students currently
11.28enrolled, and those proposed to be enrolled;
11.29    (3) that the applicant employs a sufficient number of qualified teaching personnel to
11.30provide the educational programs contemplated;
11.31    (4) that the school has an organizational framework with administrative and
11.32instructional personnel to provide the programs and services it intends to offer;
11.33    (5) that the premises and conditions under which the students work and study are
11.34sanitary, healthful, and safe, according to modern standards;
12.1    (6) that the quality and content of each occupational course or program of study
12.2provides education and adequate preparation to enrolled students for entry level positions
12.3in the occupation for which prepared;
12.4    (7) that the living quarters which are owned, maintained, recommended, or approved
12.5by the applicant for students are sanitary and safe;
12.6    (8) that the contract or enrollment agreement used by the school complies with
12.7the provisions in section 141.265;
12.8    (9) that contracts and agreements do not contain a wage assignment provision or a
12.9confession of judgment clause; and
12.10    (10) that there has been no adjudication of fraud or misrepresentation in any
12.11criminal, civil, or administrative proceeding in any jurisdiction against the school or its
12.12owner, officers, agents, or sponsoring organization.

12.13    Sec. 22. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read:
12.14    Subd. 13. Schools licensed by another state agency or board. A school required
12.15to obtain a private career school license due to the use of "academy," "institute," "college,"
12.16or "university" in its name or licensed for the purpose of participating in state financial aid
12.17under chapter 136A, and which is also licensed by another state agency or board shall be
12.18required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7),
12.19and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12.

12.20    Sec. 23. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read:
12.21    Subd. 2. Conditions. The office shall adopt rules establishing the conditions for
12.22renewal of a license. The conditions shall permit two levels of renewal based on the record
12.23of the school. A school that has demonstrated the quality of its program and operation
12.24through longevity and performance in the state may renew its license based on a relaxed
12.25standard of scrutiny. A school that has been in operation in Minnesota for a limited period
12.26of time or that has not performed adequately on performance indicators shall renew its
12.27license based on a strict standard of scrutiny. The office shall specify minimum longevity
12.28standards and performance indicators that must be met before a school may be permitted
12.29to operate under the relaxed standard of scrutiny. The performance indicators used in this
12.30determination shall include, but not be limited to: degree granting status, regional or
12.31national accreditation, loan default rates, placement rate of graduates, student withdrawal
12.32rates, audit results, student complaints, and school status with the United States
12.33Department of Education. Schools that meet the requirements established in rule shall be
12.34required to submit a full relicensure report once every four years, and in the interim years
13.1will be exempt from the requirements of section 141.25, subdivision 3, clauses (4), (5),
13.2and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.

13.3    Sec. 24. Minnesota Statutes 2008, section 141.255, is amended to read:
13.4141.255 FEES.
13.5    Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure
13.6application is:
13.7(1) $1,500 $2,500 for a school that will offer no more than one program during
13.8its first year of operation;
13.9(2) $2,000 for a school that will offer two or more nondegree level programs $750
13.10for a school licensed exclusively due to the use of the term "college," "university,"
13.11"academy," or "institute" in their name, or licensed exclusively in order to participate in
13.12state grant or SELF loan financial aid programs; and
13.13(3) $2,500, plus $500 for each additional program offered by the school, for a school
13.14 during its first year of operation; and.
13.15(3) $2,500 for a school that will offer two or more degree level programs during
13.16its first year of operation.
13.17    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a
13.18renewal licensure application is:
13.19    (1) for a category A school, as determined by the office, the fee is $865 if the school
13.20offers one program or $1,150 if the school offers two or more programs; and
13.21    (2) for a category B or C school, as determined by the office, the fee is $430 if the
13.22school offers one program or $575 if the school offers two or more programs.
13.23(1) for a school that offers one program, the license renewal fee is $1,150;
13.24(2) for a school that offers more than one program, the license renewal fee is
13.25$1,150, plus $200 for each additional program with a maximum renewal licensing fee
13.26of $2,000; and
13.27(3) schools licensed exclusively due to the use of the term "college," "university,"
13.28"academy," or "institute" in their name or licensed exclusively in order to participate in
13.29state grant or SELF loan financial aid programs shall pay a renewal fee of $750.
13.30    (b) If a license renewal application is not received by the office by the close of
13.31business at least 60 days before the expiration of the current license, a late fee of $100
13.32per business day, not to exceed $3,000, shall be assessed.
13.33    Subd. 3. Degree level addition fee. The office processing fee for adding a degree
13.34level to an existing program is $2,000 per program.
14.1    Subd. 4. Program addition fee. The office processing fee for adding a program
14.2that represents a significant departure in the objectives, content, or method of delivery of
14.3programs to those that are currently offered by the school is $500 per program.
14.4    Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit
14.5or outside consultant is necessary to review or evaluate any new or revised program, the
14.6office shall be reimbursed for the expenses incurred related to the review as follows:
14.7(1) $300 $400 for the team base fee or for a paper review conducted by a consultant
14.8if the office determines that a fact-finding visit is not required;
14.9(2) $300 for each day or part thereof on site per team member; and
14.10(3) the actual cost of customary meals, lodging, and related travel expenses incurred
14.11by team members.
14.12    Subd. 6. Modification fee. The fee for modification of any existing program is
14.13$100 and is due if there is:
14.14(1) an increase or decrease of 25 percent or more, from the original date of program
14.15approval, in clock hours, credit hours, or calendar length of an existing program;
14.16(2) a change in academic measurement from clock hours to credit hours or vice
14.17versa; or
14.18(3) an addition or alteration of courses that represent a 25 percent change or more in
14.19the objectives, content, or methods of delivery.
14.20    Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid
14.21annually.
14.22    Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations
14.23must pay:
14.24(1) $250 per location, for locations two to five locations; and
14.25(2) an additional $50 $100 for each location over five.
14.26    Subd. 9. Student transcript fee. The fee for a student transcript requested from
14.27a closed school whose records are held by the office is $10 $15, with a maximum of
14.28five transcripts per request.
14.29    Subd. 10. Public office documents; copies. The office shall establish rates for
14.30copies of any public office document shall be 50 cents per page.

14.31    Sec. 25. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read:
14.32    Subd. 2. Unlawful designation. No school organized after November 15, 1969,
14.33shall apply to itself either as a part of its name or in any other manner the designation of
14.34"college" or "university" unless such school applies for and receives certification from the
15.1office that it meets appropriate standards and is entitled to such designation. Operating
15.2schools now using such designation may continue use thereof.

15.3    Sec. 26. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read:

15.4

Subd. 21.Transfers

15.5The Minnesota Office of Higher Education
15.6may transfer unencumbered balances from
15.7the appropriations in this section to the state
15.8grant appropriation, the interstate tuition
15.9reciprocity appropriation, the child care
15.10grant appropriation, the Indian scholarship
15.11appropriation, the state work-study
15.12appropriation, the achieve scholarship
15.13appropriation, the public safety officers'
15.14survivors appropriation, and the Minnesota
15.15college savings plan appropriation. Transfers
15.16from the state grant, child care, or state
15.17work-study appropriations may only be made
15.18to the extent there is a projected surplus in
15.19the appropriation. A transfer may be made
15.20only with prior written notice to the chairs
15.21of the senate and house of representatives
15.22committees with jurisdiction over higher
15.23education finance.
15.24EFFECTIVE DATE.This section is effective the day following final enactment.

15.25    Sec. 27. STREAMLINED MNSCU SYSTEM OFFICE.
15.26Notwithstanding any law or policy to the contrary, the Board of Trustees of the
15.27Minnesota State Colleges and Universities shall streamline services provided through
15.28the system's central service office to reduce expenditures, better target the use of state
15.29resources, and provide services at the most appropriate and efficient level so as not
15.30to duplicate any services provided at the institutional level. These actions must be
15.31implemented so as to achieve budgetary savings and efficiencies in delivery of services
15.32and the accomplishment of the academic mission. The board must revise any board
15.33policies in a way that is consistent with the requirements of this section.

16.1    Sec. 28. CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND
16.2UNIVERSITIES.
16.3(a) The Board of Trustees of the Minnesota State Colleges and Universities must
16.4develop and implement a plan to improve credit transfers within the system. At a
16.5minimum, the board must:
16.6(1) enhance the availability of easily used information on transferring and tracking
16.7credits;
16.8(2) improve training for all staff involved with credit transfer;
16.9(3) identify barriers to transferring credits including intellectual property issues for
16.10faculty and devise methods to eliminate these barriers; and
16.11(4) identify discrepancies in the treatment of transferring and accepting credits
16.12by various institutions within the system and devise methods to improve the uniform
16.13treatment of credit transfers.
16.14(b) The board must convene working groups of affected faculty, staff, and
16.15administrators representing institutions and academic and technical disciplines in the
16.16system to work on issues and barriers to credit transfer. The purpose of the working
16.17groups is to develop specific actions that will remove any barriers to credit transfer and to
16.18improve the ease and transparency of credit transfer for students.
16.19(c) The board of trustees must report to the legislature by January 15, 2012, on the
16.20plans for and progress towards improvements in the transfer of credits. Any proposal to
16.21develop and implement a mandatory or voluntary common course numbering system for
16.22the Minnesota State Colleges and Universities must not be required until after the receipt
16.23of the report under this section.

16.24    Sec. 29. POSTRETIREMENT HEALTH INSURANCE PREMIUM
16.25REIMBURSEMENT.
16.26The Minnesota State Colleges and Universities (MnSCU) system shall waive
16.27premium reimbursement payments including any late payment charges, fees, penalties, or
16.28interest payments imposed on overdue health insurance premium reimbursements owed
16.29by a college retiree to the college under a contractual or collective bargaining agreement
16.30providing for postretirement health insurance benefits arising from employment under
16.31a contract or collective bargaining agreement with a school district or technical college
16.32prior to July 1, 1995, and who became an employee of Minnesota State Colleges and
16.33Universities on July 1, 1995. This section applies only if the college has failed to bill
16.34the retiree for the premium reimbursement payments as required under the applicable
17.1collective bargaining or contractual agreement, or if not otherwise established, within 90
17.2days following the date on which the premium was due.
17.3EFFECTIVE DATE.This section is effective July 1, 2010.

17.4    Sec. 30. REPORT OF CREDIT TRANSFER ACTIVITIES.
17.5The Board of Trustees of the Minnesota State Colleges and Universities shall report
17.6on February 15, 2011, and annually thereafter through 2015, on its activities to achieve
17.7the credit transfer goals of Minnesota Statutes, section 136F.302, and the results of those
17.8activities. The report shall be made to the chairs and ranking minority members of the
17.9legislative committees with primary jurisdiction over higher education policy and finance.
17.10The goals of Minnesota Statutes, section 136F.302, should be fully achieved as soon as
17.11possible, but no later than the start of the 2015-2016 academic year.

17.12    Sec. 31. PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF
17.13MINNESOTA STATE COLLEGES AND UNIVERSITIES.
17.14    Subdivision 1. Establishment. To increase the distribution of potential economic
17.15benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and
17.16Universities, a pilot project is established to transfer certain reserve deposits of selected
17.17institutions from the state treasury to a community financial institution. Notwithstanding
17.18Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management
17.19and budget shall transfer the board-required reserve funds of colleges and universities
17.20selected by the board of trustees under subdivision 2, to a community financial institution
17.21designated for each of the participating colleges and universities.
17.22    Subd. 2. Participating colleges and universities. By June 11, 2010, colleges and
17.23universities must apply to the Board of Trustees of the Minnesota State Colleges and
17.24Universities for participation in the pilot project. Each applicant must designate one or
17.25more community financial institutions for the deposit of board-required reserves, with the
17.26terms of the deposit for each designated community financial institution. The designated
17.27community financial institution must be located within 25 miles of a participating campus.
17.28From the applicants, the board shall select eight postsecondary institutions to participate in
17.29the local deposit pilot project. In making its selection, the board must consider the size
17.30of the institution's reserves and the terms offered by the designated community financial
17.31institutions. Two-year and four-year institutions must be selected to participate in the pilot
17.32project and at least five of the selected institutions must be located in greater Minnesota.
18.1By June 25, 2010, the board must notify the commissioner of management and
18.2budget of the participating colleges and universities and the associated community
18.3financial institutions.
18.4    Subd. 3. Community financial institution. As used in this section, "community
18.5financial institution" means a federally insured bank or credit union, chartered as a bank
18.6or credit union by the state of Minnesota or the United States, that is headquartered in
18.7Minnesota and that has no more than $2,500,000,000 in assets.
18.8    Subd. 4. Evaluation and report. The commissioner of management and budget and
18.9the board of trustees shall independently evaluate the effectiveness or harm of the local
18.10deposit pilot project in increasing the use of community financial institutions and providing
18.11wider distribution of the economic benefit of the deposit of postsecondary reserves. Each
18.12evaluation must include the participating colleges, universities, and community financial
18.13institutions. The commissioner and the board shall report the results of the pilot project
18.14evaluation to the appropriate committees of the legislature by December 1, 2011, with
18.15recommendations on the future implementation of the pilot project.

18.16    Sec. 32. APPROPRIATION REDUCTIONS.
18.17Any reduction in appropriations for the biennium ending June 30, 2011, for the
18.18central system office of Minnesota State Colleges and Universities must not be passed
18.19through to any institution or campus. The Board of Trustees of the Minnesota State
18.20Colleges and Universities must not charge any institution for appropriation reductions
18.21made to the central office.

18.22    Sec. 33. REPEALER.
18.23Minnesota Statutes 2008, section 136A.1701, subdivision 5, is repealed.