1.1                          A bill for an act 
  1.2             relating to education; appropriating money for 
  1.3             education and related purposes to the higher education 
  1.4             services office, board of trustees of the Minnesota 
  1.5             state colleges and universities, board of regents of 
  1.6             the University of Minnesota, and the Mayo medical 
  1.7             foundation, with certain conditions; modifying certain 
  1.8             conditions for the Minnesota state colleges and 
  1.9             universities; clarifying requirements for student 
  1.10            conduct policy; modifying programs that promote 
  1.11            college affordability; modifying provisions relating 
  1.12            to regent selection and recruitment; authorizing board 
  1.13            of regents to establish a branch campus in Rochester; 
  1.14            clarifying and changing requirements for private 
  1.15            career schools; providing for rulemaking; amending 
  1.16            Minnesota Statutes 1998, sections 16B.465, subdivision 
  1.17            4; 135A.155; 136A.031, subdivision 3; 136A.121, 
  1.18            subdivisions 5 and 6; 136A.125, subdivision 4; 
  1.19            136F.02, subdivision 2; 136F.04, subdivision 1; 
  1.20            136F.22, subdivision 1; 136F.32, subdivision 2, and by 
  1.21            adding a subdivision; 137.0245, subdivision 4; 141.21, 
  1.22            subdivisions 3, 5, 6, and by adding subdivisions; 
  1.23            141.22; 141.25, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 
  1.24            10, and 12; 141.26, subdivision 2; 141.271, 
  1.25            subdivisions 1, 2, 3, 4, 5, 6, and 12; 141.28, 
  1.26            subdivisions 3 and 5; 141.29, subdivision 1; 141.31; 
  1.27            141.32; 141.35; and 471.59, subdivision 1; proposing 
  1.28            coding for new law in Minnesota Statutes, chapters 
  1.29            137; and 141; repealing Minnesota Statutes 1998, 
  1.30            sections 136A.1359; 136A.136; 141.25, subdivisions 9a, 
  1.31            9b, and 11; and 141.36. 
  1.32  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.33                             ARTICLE 1 
  1.34                           APPROPRIATIONS 
  1.35  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.36     The sums in the columns marked "APPROPRIATIONS" are 
  1.37  appropriated from the general fund, or other named fund, to the 
  1.38  agencies and for the purposes specified in this article.  The 
  2.1   listing of an amount under the figure "2000" or "2001" in this 
  2.2   article indicates that the amount is appropriated to be 
  2.3   available for the fiscal year ending June 30, 2000, or June 30, 
  2.4   2001, respectively.  "The first year" is fiscal year 2000.  "The 
  2.5   second year" is fiscal year 2001.  "The biennium" is fiscal 
  2.6   years 2000 and 2001. 
  2.7                           SUMMARY BY FUND
  2.8                             2000          2001           TOTAL
  2.9   General            $1,272,565,000 $1,352,975,000 $2,625,540,000
  2.10                   SUMMARY BY AGENCY - ALL FUNDS
  2.11                            2000          2001           TOTAL
  2.12  Higher Education Services
  2.13  Office                141,006,000    144,412,000    285,418,000
  2.14  Board of Trustees of the
  2.15  Minnesota State Colleges
  2.16  and Universities      543,677,000    589,447,000  1,133,124,000
  2.17  Board of Regents of the
  2.18  University of
  2.19  Minnesota             586,336,000    617,479,000  1,203,815,000
  2.20  Mayo Medical
  2.21  Foundation              1,546,000      1,637,000      3,183,000
  2.22                                             APPROPRIATIONS 
  2.23                                         Available for the Year 
  2.24                                             Ending June 30 
  2.25                                            2000         2001 
  2.26  Sec. 2.  HIGHER EDUCATION
  2.27  SERVICES OFFICE
  2.28  Subdivision 1.  Total
  2.29  Appropriation                        141,006,000    144,412,000
  2.30  The amounts that may be spent from this 
  2.31  appropriation for each purpose are 
  2.32  specified in the following subdivisions.
  2.33  Subd. 2.  State Grants
  2.34      112,669,000       116,029,000
  2.35  If the appropriation in this 
  2.36  subdivision for either year is 
  2.37  insufficient, the appropriation for the 
  2.38  other year is available for it.  
  2.39  The legislature intends that the higher 
  2.40  education services office make full 
  2.41  grant awards in each year of the 
  2.42  biennium.  
  2.43  For the biennium, the private 
  2.44  institution tuition maximum shall be 
  2.45  $8,296 in the first year and $8,546 in 
  2.46  the second year for four-year 
  2.47  institutions and $6,386 in the first 
  2.48  year and $6,578 in the second year for 
  3.1   two-year institutions. 
  3.2   This appropriation contains money to 
  3.3   set the living and miscellaneous 
  3.4   expense allowance at $4,885 in each 
  3.5   year. 
  3.6   Subd. 3.  Interstate Tuition
  3.7   Reciprocity
  3.8        4,500,000      4,500,000
  3.9   If the appropriation in this 
  3.10  subdivision for either year is 
  3.11  insufficient, the appropriation for the 
  3.12  other year is available to meet 
  3.13  reciprocity contract obligations. 
  3.14  Subd. 4.  State Work Study
  3.15      11,194,000     11,194,000
  3.16  To assist the legislature in future 
  3.17  policy and appropriation decisions, the 
  3.18  office shall collect information from 
  3.19  all participating institutions on the 
  3.20  use of child care and work study 
  3.21  allocations.  For each program, the 
  3.22  data shall include at least the number 
  3.23  of recipients, the hours for which they 
  3.24  receive state money, payment per hour, 
  3.25  location of service, unmet demand, 
  3.26  returned and additional allocations, 
  3.27  and any institutional/system policies 
  3.28  that affect recipients.  The office 
  3.29  shall provide this information to the 
  3.30  higher education finance committees by 
  3.31  January 15, 2000. 
  3.32  Subd. 5.  Minitex Library Program
  3.33       3,033,000      2,958,000
  3.34  Subd. 6.  Learning Network of Minnesota
  3.35       4,828,000      4,829,000
  3.36  Notwithstanding Minnesota Statutes, 
  3.37  section 16B.465, regional organizations 
  3.38  receiving grants under the learning 
  3.39  network may consider proposals from 
  3.40  competing providers. 
  3.41  Subd. 7.  MNLINK                                     
  3.42         450,000        450,000
  3.43  Subd. 8.  Income Contingent Loans (GRIP)
  3.44  The higher education services office 
  3.45  shall administer an income contingent 
  3.46  loan repayment program to assist 
  3.47  graduates of Minnesota schools in 
  3.48  medicine, dentistry, pharmacy, 
  3.49  chiropractic medicine, public health, 
  3.50  and veterinary medicine, and Minnesota 
  3.51  residents graduating from optometry and 
  3.52  osteopathy programs.  Applicant data 
  3.53  collected by the higher education 
  3.54  services office for this program may be 
  3.55  disclosed to a consumer credit 
  4.1   reporting agency under the same 
  4.2   conditions as apply to the supplemental 
  4.3   loan program under Minnesota Statutes, 
  4.4   section 136A.162.  
  4.5   Subd. 9.  Edvest 
  4.6        1,520,000      1,520,000 
  4.7   Subd. 10.  Agency Administration
  4.8        2,812,000      2,932,000
  4.9   This appropriation includes base 
  4.10  funding and an increase of $48,000 each 
  4.11  year to foster post-secondary 
  4.12  attendance by providing outreach 
  4.13  services to historically underserved 
  4.14  groups of Minnesota elementary and 
  4.15  secondary students.  The office may 
  4.16  retain the entire appropriation or 
  4.17  contract with other agencies or 
  4.18  nonprofit organizations for specific 
  4.19  services in this effort.  Prior to 
  4.20  expending this appropriation, the 
  4.21  office shall prepare a spending plan 
  4.22  and submit it to the department of 
  4.23  finance for review. 
  4.24  Subd. 11.  Balances Forward 
  4.25  An unencumbered balance in the first 
  4.26  year under a subdivision in this 
  4.27  section does not cancel but is 
  4.28  available for the second year. 
  4.29  Subd. 12.  Transfers 
  4.30  The higher education services office 
  4.31  may transfer unencumbered balances from 
  4.32  the appropriations in this section to 
  4.33  the state grant appropriation, the 
  4.34  interstate tuition reciprocity 
  4.35  appropriation, the child care 
  4.36  appropriation, and the state work study 
  4.37  appropriation. 
  4.38  Sec. 3.  BOARD OF TRUSTEES OF THE
  4.39  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  4.40  Subdivision 1.  Total
  4.41  Appropriation                        543,677,000    589,447,000
  4.42  The amounts that may be spent from this 
  4.43  appropriation for each purpose are 
  4.44  specified in the following subdivisions.
  4.45  The board is requested to prepare and 
  4.46  present future budget requests in a 
  4.47  campus based format so that the 
  4.48  legislature may understand the need for 
  4.49  and the effect of funding and 
  4.50  allocation decisions on each MnSCU 
  4.51  college and university. 
  4.52  The board of trustees is requested to 
  4.53  amend the board policy on institutional 
  4.54  reserves to reduce the minimum reserve 
  4.55  from five percent to three percent. 
  4.56  The legislature intends that state 
  5.1   appropriations be used to strengthen 
  5.2   and support education of students.  To 
  5.3   this end, all money appropriated in 
  5.4   this section, except that in direct 
  5.5   support of system office activities, 
  5.6   shall be allocated by the board 
  5.7   directly to the colleges and 
  5.8   universities. 
  5.9   The legislature further intends that 
  5.10  colleges and universities have broad 
  5.11  discretion in spending in order for 
  5.12  each to meet its distinctive needs.  
  5.13  Each institution shall report its 
  5.14  spending decisions to the higher 
  5.15  education finance committees by January 
  5.16  30 of 2000 and 2001. 
  5.17  Subd 2.  Campus Base Enhancement 
  5.18      30,880,000     56,532,000
  5.19  This appropriation includes funding to 
  5.20  enhance the education experience for 
  5.21  students at each college and university 
  5.22  by improving academic programs and 
  5.23  course offerings, student services, 
  5.24  retention efforts, advising, library 
  5.25  acquisitions, facilities repair and 
  5.26  betterment, and class size and 
  5.27  availability, while holding down 
  5.28  tuition increases. 
  5.29  The board is encouraged to provide 
  5.30  resources to Central Lakes College to 
  5.31  add a permanent occupational skills 
  5.32  instructor in order to provide job 
  5.33  training and skills to a larger 
  5.34  population of disabled students and to 
  5.35  create a model program that can assist 
  5.36  other MnSCU colleges in developing 
  5.37  similar programs. 
  5.38  In each year, the board of trustees 
  5.39  shall increase the percentage of the 
  5.40  total general fund expenditures for 
  5.41  direct instruction and academic 
  5.42  support, as reported in the federal 
  5.43  Integrated Postsecondary Education Data 
  5.44  System (IPEDS).  By February 15 of 2000 
  5.45  and 2001, the board of trustees shall 
  5.46  report to the legislature the 
  5.47  percentage of total general fund 
  5.48  expenditures spent on direct 
  5.49  instruction and on academic support 
  5.50  during the previous fiscal year by 
  5.51  institution and for the system as a 
  5.52  whole. 
  5.53  If the board decides to invest state 
  5.54  appropriations in programs to increase 
  5.55  teachers of color and urban teachers, 
  5.56  the board shall first make investments 
  5.57  in existing programs, wherever 
  5.58  feasible, as part of its metropolitan 
  5.59  plan. 
  5.60  During the biennium, neither the board 
  5.61  nor campuses shall plan or develop 
  5.62  doctoral level programs or degrees 
  5.63  until after they have received the 
  6.1   recommendation of the house and senate 
  6.2   committees on education, finance, and 
  6.3   ways and means. 
  6.4   During the biennium, technical and 
  6.5   consolidated colleges shall make use of 
  6.6   instructional advisory committees 
  6.7   consisting of employers, students, and 
  6.8   instructors.  The instructional 
  6.9   advisory committee shall be consulted 
  6.10  when a technical program is proposed to 
  6.11  be created, modified, or eliminated.  
  6.12  If a decision is made to eliminate a 
  6.13  program, a college shall adequately 
  6.14  notify students and make plans to 
  6.15  assist students affected by the closure.
  6.16  The board shall prepare an annual 
  6.17  budget for the system office.  The 
  6.18  budget plan shall be submitted to the 
  6.19  department of finance by July 1 of each 
  6.20  fiscal year for review.  The plan shall 
  6.21  include budgeted resources/revenues and 
  6.22  expenditures for each major division or 
  6.23  program of the system office.  The 
  6.24  board shall review the current 
  6.25  functions, services, and programs 
  6.26  managed or provided by the system 
  6.27  office.  The review shall describe the 
  6.28  purpose and origin of these activities; 
  6.29  quantify their unit or program cost; 
  6.30  describe or quantify how they benefit 
  6.31  the colleges and universities; identify 
  6.32  duplicate programs or services provided 
  6.33  at the system and institutional levels 
  6.34  and analyze whether this duplication is 
  6.35  beneficial or unnecessary.  The board 
  6.36  shall report to the higher education 
  6.37  finance committees by February 15, 
  6.38  2000, on its findings and articulate an 
  6.39  organizational plan and program budget 
  6.40  for the system office. 
  6.41  The board may waive tuition for 
  6.42  eligible Southwest Asia veterans, as 
  6.43  provided in Minnesota Statutes, section 
  6.44  136F.28. 
  6.45  Subd. 3.  Institutional Equity 
  6.46       5,000,000      5,135,000
  6.47  This appropriation is to increase the 
  6.48  state funding per full year equivalent 
  6.49  student at historically underfunded 
  6.50  MnSCU institutions. 
  6.51  Subd. 4.  Technology                                 
  6.52       1,750,000      1,750,000
  6.53  This appropriation is for technology 
  6.54  related expenditures including degree 
  6.55  audit reporting, ISEEK, the virtual 
  6.56  university, and technology 
  6.57  infrastructure/Y2K.  
  6.58  Subd. 5.  Farm Business Management                   
  6.59         100,000        100,000
  7.1   This appropriation is to increase 
  7.2   access to the farm and small business 
  7.3   management programs by expanding the 
  7.4   capacity of the programs. 
  7.5   Subd. 6.  One-Time Enhancements 
  7.6        8,760,000     11,750,000
  7.7   This appropriation is for economic 
  7.8   development, leveraged equipment 
  7.9   purchases, and the firefighters' 
  7.10  subsidy. 
  7.11  This appropriation includes $300,000 to 
  7.12  reimburse Bemidji State University for 
  7.13  the costs it incurred in testing the 
  7.14  system's model student information 
  7.15  system. 
  7.16  This appropriation includes $100,000 to 
  7.17  provide start up funding for a rural 
  7.18  research center at Southwest State 
  7.19  University. 
  7.20  Subd. 7.  Winona State Land
  7.21  Notwithstanding Minnesota Statutes, 
  7.22  sections 94.09 to 94.16, the board of 
  7.23  trustees may sell a parcel of Winona 
  7.24  State University land for no less than 
  7.25  its appraised value in a private sale 
  7.26  to resolve conflicting property 
  7.27  boundaries.  Money from the sale is 
  7.28  appropriated to the board to be 
  7.29  allocated to Winona State University. 
  7.30  Subd. 8.  Capital Projects 
  7.31  The board may undertake the following 
  7.32  projects, using system and campus 
  7.33  reserves. 
  7.34  (a) Moorhead State
  7.35  $1,090,000 to demolish structures, do 
  7.36  site preparation, and provide security 
  7.37  lighting on recently acquired land. 
  7.38  (b) Winona State 
  7.39  $6,100,000 to replace the boiler system.
  7.40  Sec. 4.  BOARD OF REGENTS OF THE 
  7.41  UNIVERSITY OF MINNESOTA 
  7.42  Subdivision 1.  Total
  7.43  Appropriation                        586,336,000    617,479,000
  7.44  The amounts that may be spent from this 
  7.45  appropriation for each purpose are 
  7.46  specified in the following subdivisions.
  7.47  Subd. 2.  Operations and
  7.48  Maintenance                          516,652,000    547,570,000
  7.49  The board of regents is requested to 
  7.50  support the development of a higher 
  7.51  education policy research center to 
  7.52  study, analyze and make recommendations 
  7.53  on higher education issues and trends 
  8.1   and to collect and disseminate higher 
  8.2   education data to policy makers in the 
  8.3   state.  The boards and institutions of 
  8.4   the Minnesota state colleges and 
  8.5   universities shall, and the Minnesota 
  8.6   private colleges are requested to, 
  8.7   cooperate and collaborate in the 
  8.8   development of the center. 
  8.9   (a) Base Enhancements 
  8.10      40,874,000     68,523,000
  8.11  This appropriation includes funding to 
  8.12  improve the undergraduate experience, 
  8.13  provide repair and betterment on 
  8.14  University campuses, connect to the 
  8.15  community, and fund competitive 
  8.16  compensation. 
  8.17  $1,706,000 in the first year and 
  8.18  $3,638,000 in the second year is to 
  8.19  enhance and expand upper division and 
  8.20  graduate programs in Rochester as 
  8.21  provided in article 2, section 13.  By 
  8.22  January 30, 2000, the University shall 
  8.23  submit to the governor and the 
  8.24  legislature a master academic plan for 
  8.25  the region that clearly defines the 
  8.26  academic needs of the region, short and 
  8.27  long-term plans to address those needs 
  8.28  including the designation of 
  8.29  responsibility among the partner 
  8.30  institutions, short and long-term 
  8.31  demographic and enrollment projections, 
  8.32  physical plant capacity and needs, and 
  8.33  a delineation of missions among the 
  8.34  partner institutions to avoid 
  8.35  competition and duplication. 
  8.36  (b) Health Professional Education 
  8.37       3,000,000      3,000,000
  8.38  The University of Minnesota academic 
  8.39  health center, after consultation with 
  8.40  the health care community and medical 
  8.41  education and research costs advisory 
  8.42  committee, shall report by January 15, 
  8.43  2000, to the higher education finance 
  8.44  committees of the legislature on the 
  8.45  strategic direction of its health 
  8.46  professional programs.  The plans shall 
  8.47  include a programmatic and financial 
  8.48  model for health professional education 
  8.49  that will meet the state's future 
  8.50  workforce needs, maintain the integrity 
  8.51  of the education process, provide an 
  8.52  appropriate level of on-going financial 
  8.53  support, and provide a framework for 
  8.54  the health community and academic 
  8.55  health center to work together in 
  8.56  meeting the health needs of the state.  
  8.57  The academic health center is requested 
  8.58  to provide the report also to the 
  8.59  commissioner of health and the 
  8.60  legislative commission on health care 
  8.61  access. 
  8.62  (c) One-Time Enhancements 
  9.1        2,819,000      2,920,000
  9.2   This appropriation includes money for 
  9.3   repair and betterment of facilities. 
  9.4   Subd. 3.  Special
  9.5   Appropriation                         69,679,000     69,909,000
  9.6   The amounts expended for each program 
  9.7   in the four categories of special 
  9.8   appropriations shall be separately 
  9.9   identified in the 2001 biennial budget 
  9.10  document. 
  9.11  (a) Agriculture and Extension Service 
  9.12      54,988,000     54,988,000
  9.13  This appropriation is for the 
  9.14  Agricultural Experiment Station, 
  9.15  Minnesota Extension Service. 
  9.16  Any salary increases granted by the 
  9.17  University to personnel paid from the 
  9.18  Minnesota Extension appropriation must 
  9.19  not result in a reduction of the county 
  9.20  responsibility for the salary payments. 
  9.21  During the biennium, the University 
  9.22  shall maintain an advisory council 
  9.23  system for each experiment station.  
  9.24  The advisory councils must be broadly 
  9.25  representative of range of size and 
  9.26  income distribution of farms and 
  9.27  agribusinesses and must not 
  9.28  disproportionately represent those from 
  9.29  the upper half of the size and income 
  9.30  distributions. 
  9.31  (b) Health Sciences 
  9.32       5,789,000      5,846,000
  9.33  This appropriation is for rural 
  9.34  physicians associates program, the 
  9.35  Veterinary Diagnostic Laboratory, 
  9.36  health sciences research, dental care, 
  9.37  and the Biomedical Engineering Center. 
  9.38  (c) Institute of Technology  
  9.39       1,600,000      1,645,000
  9.40  This appropriation is for the 
  9.41  Geological Survey and the Talented 
  9.42  Youth Mathematics Program. 
  9.43  (d) System Specials 
  9.44       7,302,000      7,430,000
  9.45  This appropriation is for general 
  9.46  research, student loans matching money, 
  9.47  industrial relations education, Natural 
  9.48  Resources Research Institute, Center 
  9.49  for Urban and Regional Affairs, Bell 
  9.50  Museum of Natural History, and the 
  9.51  Humphrey exhibit. 
  9.52  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.1   Subdivision 1.  Total
 10.2   Appropriation                           1,546,000       1,637,000
 10.3   The amounts that may be spent from this 
 10.4   appropriation for each purpose are 
 10.5   specified in the following subdivisions.
 10.6   Subd. 2.  Medical School
 10.7          554,000        605,000
 10.8   The state of Minnesota shall pay a 
 10.9   capitation of $13,200 in the first year 
 10.10  and $14,405 in the second year for each 
 10.11  student who is a resident of 
 10.12  Minnesota.  The appropriation may be 
 10.13  transferred between years of the 
 10.14  biennium to accommodate enrollment 
 10.15  fluctuations. 
 10.16  The legislature intends that during the 
 10.17  biennium the Mayo foundation use the 
 10.18  capitation money to increase the number 
 10.19  of doctors practicing in rural areas in 
 10.20  need of doctors.  
 10.21  Subd. 3.  Family Practice and
 10.22  Graduate Residency Program
 10.23         601,000        625,000
 10.24  The state of Minnesota shall pay a 
 10.25  capitation of $21,455 for 26 residents 
 10.26  and $42,911 for one resident in the 
 10.27  first year, and $22,313 for 26 
 10.28  residents and $44,627 for one resident 
 10.29  in the second year. 
 10.30  Subd. 4.  St. Cloud Hospital-Mayo 
 10.31  Family Practice Residency Program 
 10.32         391,000        407,000
 10.33  This appropriation is to the Mayo 
 10.34  foundation to support 12 resident 
 10.35  physicians in the first year and 12 
 10.36  resident physicians in the second year 
 10.37  in the St. Cloud Hospital-Mayo Family 
 10.38  Practice Residency Program.  The 
 10.39  program shall prepare doctors to 
 10.40  practice primary care medicine in the 
 10.41  rural areas of the state.  It is 
 10.42  intended that this program will improve 
 10.43  health care in rural communities, 
 10.44  provide affordable access to 
 10.45  appropriate medical care, and manage 
 10.46  the treatment of patients in a more 
 10.47  cost-effective manner. 
 10.48                             ARTICLE 2 
 10.49                         RELATED PROVISIONS 
 10.50     Section 1.  Minnesota Statutes 1998, section 16B.465, 
 10.51  subdivision 4, is amended to read: 
 10.52     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
 10.53  require the participation of state agencies, and the state board 
 11.1   of education, and the board of trustees of the Minnesota state 
 11.2   colleges and universities and may request the participation of 
 11.3   the board of regents of the University of Minnesota and the 
 11.4   board of trustees of the Minnesota state colleges and 
 11.5   universities, in the planning and implementation of the network 
 11.6   to provide interconnective technologies.  The commissioner shall 
 11.7   establish reimbursement rates in cooperation with the 
 11.8   commissioner of finance to be billed to participating agencies 
 11.9   and educational institutions sufficient to cover the operating, 
 11.10  maintenance, and administrative costs of the system. 
 11.11     (b) A direct appropriation made to an educational 
 11.12  institution for usage costs associated with the state 
 11.13  information infrastructure must only be used by the educational 
 11.14  institution for payment of usage costs of the network as billed 
 11.15  by the commissioner of administration. 
 11.16     Sec. 2.  Minnesota Statutes 1998, section 135A.155, is 
 11.17  amended to read: 
 11.18     135A.155 [HAZING POLICY.] 
 11.19     The board of trustees of the Minnesota state colleges and 
 11.20  universities shall, and the University of Minnesota is requested 
 11.21  to, adopt a clear, understandable written policy on student 
 11.22  conduct, including hazing.  The policy must include procedures 
 11.23  for reporting incidents of inappropriate hazing and for 
 11.24  disciplinary actions against individual violators and 
 11.25  organizations.  The policy must be provided to students when 
 11.26  they register and must be shall be made available to students 
 11.27  through means such as publication in the student handbook or 
 11.28  course schedule or posting on a campus website, as determined by 
 11.29  each institution.  The policy also shall be posted at 
 11.30  appropriate locations on campus.  A private post-secondary 
 11.31  institution that is an eligible institution as defined in 
 11.32  section 136A.101, subdivision 4, must adopt a policy that meets 
 11.33  the requirements of this section. 
 11.34     Sec. 3.  Minnesota Statutes 1998, section 136A.031, 
 11.35  subdivision 3, is amended to read: 
 11.36     Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
 12.1   council (SAC) to the higher education services council is 
 12.2   established.  The members of SAC shall include:  the chair of 
 12.3   the University of Minnesota student senate,; the state chair of 
 12.4   the Minnesota state university student association, the 
 12.5   president of the Minnesota community college student 
 12.6   association, the president of the Minnesota technical college 
 12.7   student association,; the president of the Minnesota state 
 12.8   college student association and an officer of the Minnesota 
 12.9   state college student association, one in a community college 
 12.10  course of study and one in a technical college course of study; 
 12.11  the president of the Minnesota association of private college 
 12.12  students,; and a student who is enrolled in a private vocational 
 12.13  school, to be appointed by the Minnesota association of private 
 12.14  post-secondary schools.  A member may be represented by a 
 12.15  student designee who attends an institution from the same system 
 12.16  that the absent member represents.  The SAC shall select one of 
 12.17  its members to serve as chair. 
 12.18     The higher education services council shall inform the SAC 
 12.19  of all matters related to student issues under consideration and 
 12.20  shall refer all proposals to the SAC before taking action or 
 12.21  sending the proposals to the governor or legislature.  The SAC 
 12.22  shall report to the higher education services council quarterly 
 12.23  and at other times that the SAC considers desirable.  The SAC 
 12.24  shall determine its meeting times, but it shall also meet with 
 12.25  the council within 30 days after the director's request for a 
 12.26  meeting. 
 12.27     The SAC shall: 
 12.28     (1) bring to the attention of the higher education services 
 12.29  council any matter that the SAC believes needs the attention of 
 12.30  the council; 
 12.31     (2) make recommendations to the higher education services 
 12.32  council as it finds appropriate; 
 12.33     (3) appoint student members to the higher education 
 12.34  services council advisory groups as provided in subdivision 4; 
 12.35  and 
 12.36     (4) provide any reasonable assistance to the council. 
 13.1      Sec. 4.  Minnesota Statutes 1998, section 136A.121, 
 13.2   subdivision 5, is amended to read: 
 13.3      Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 13.4   based on a sharing of responsibility for covering the recognized 
 13.5   cost of attendance by the applicant, the applicant's family, and 
 13.6   the government.  The amount of a financial stipend must not 
 13.7   exceed a grant applicant's recognized cost of attendance, as 
 13.8   defined in subdivision 6, after deducting the following:  
 13.9      (1) the assigned student responsibility of at least 47 
 13.10  percent of the cost of attending the institution of the 
 13.11  applicant's choosing; 
 13.12     (2) the assigned family responsibility as defined in 
 13.13  section 136A.101; and 
 13.14     (3) the amount of a federal Pell grant award for which the 
 13.15  grant applicant is eligible, calculated as if the maximum Pell 
 13.16  grant were $3,125. 
 13.17     The minimum financial stipend is $300 $200 per academic 
 13.18  year. 
 13.19     Sec. 5.  Minnesota Statutes 1998, section 136A.121, 
 13.20  subdivision 6, is amended to read: 
 13.21     Subd. 6.  [COST OF ATTENDANCE.] (a) The recognized cost of 
 13.22  attendance consists of allowances specified in law for room and 
 13.23  board and miscellaneous expenses, and 
 13.24     (1) for public institutions, tuition and fees charged by 
 13.25  the institution; or 
 13.26     (2) for private institutions, an allowance for tuition and 
 13.27  fees equal to the lesser of the actual tuition and fees charged 
 13.28  by the institution, or the private institution tuition maximums 
 13.29  established in law.  By the time of the November forecast in the 
 13.30  even numbered years, the commissioner of finance shall recommend 
 13.31  to the governor and the legislature for each year of the 
 13.32  biennium an inflation adjustment to the private institution 
 13.33  tuition maximum that shall equal the percentage change in the 
 13.34  consumer price index for all urban consumers (CPI-U) for the 
 13.35  12-month period ending in October of the preceding year. 
 13.36     (b) For the purpose of paragraph (a), clause (2), the 
 14.1   private institution tuition maximum for two- and four-year, 
 14.2   private, residential, liberal arts, degree-granting colleges and 
 14.3   universities must be the same. 
 14.4      (c) For a student attending less than full time, the office 
 14.5   shall prorate the recognized cost of attendance to the actual 
 14.6   number of credits for which the student is enrolled. 
 14.7      The recognized cost of attendance for a student who is 
 14.8   confined to a Minnesota correctional institution shall consist 
 14.9   of the tuition and fee component in paragraph (a), clause (1) or 
 14.10  (2), with no allowance for living expenses. 
 14.11     Sec. 6.  Minnesota Statutes 1998, section 136A.125, 
 14.12  subdivision 4, is amended to read: 
 14.13     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 14.14  child care grant must be based on: 
 14.15     (1) the income of the applicant and the applicant's spouse, 
 14.16  if any; 
 14.17     (2) the number in the applicant's family, as defined by the 
 14.18  office; and 
 14.19     (3) the number of eligible children in the applicant's 
 14.20  family.  
 14.21     The maximum award to the applicant shall be $2,000 for each 
 14.22  eligible child per academic year, except that the campus 
 14.23  financial aid officer may apply to the office for approval to 
 14.24  increase grants by up to ten percent to compensate for higher 
 14.25  market charges for infant care in a community.  The office shall 
 14.26  develop policies to determine community market costs and to 
 14.27  review institutional requests for compensatory grant increases 
 14.28  to ensure need and equal treatment.  The office shall prepare a 
 14.29  chart to show the amount of a grant that will be awarded per 
 14.30  child based on the factors in this subdivision.  The chart shall 
 14.31  include a range of income and family size. 
 14.32     Sec. 7.  Minnesota Statutes 1998, section 136F.02, 
 14.33  subdivision 2, is amended to read: 
 14.34     Subd. 2.  [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 
 14.35  compensation, removal of members, and filling of vacancies on 
 14.36  the board are as provided in section 15.0575.  Members are 
 15.1   appointed for a term of six years, except that the term of each 
 15.2   of the student members is two years.  Terms end on June 30, 
 15.3   except that members may serve until their successors are 
 15.4   appointed and qualify. 
 15.5      Sec. 8.  Minnesota Statutes 1998, section 136F.04, 
 15.6   subdivision 1, is amended to read: 
 15.7      Subdivision 1.  [RESPONSIBILITY.] Notwithstanding section 
 15.8   136F.03, the statewide community college student association, 
 15.9   state university student association, and technical the state 
 15.10  college student association shall each have the responsibility 
 15.11  for recruiting, screening, and recommending qualified candidates 
 15.12  for its their student member members of the board. 
 15.13     Sec. 9.  Minnesota Statutes 1998, section 136F.22, 
 15.14  subdivision 1, is amended to read: 
 15.15     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
 15.16  statewide student association for the community colleges, one 
 15.17  for the state universities, and one for the community and 
 15.18  technical colleges.  Each campus student association shall be 
 15.19  affiliated with its statewide student association and all 
 15.20  students enrolled on those campuses shall be members of their 
 15.21  respective statewide association. 
 15.22     Sec. 10.  Minnesota Statutes 1998, section 136F.32, 
 15.23  subdivision 2, is amended to read: 
 15.24     Subd. 2.  [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 
 15.25  (a) A technical college or consolidated technical community 
 15.26  college shall offer students the option of pursuing diplomas and 
 15.27  certificates in each technical education program, unless the 
 15.28  board determines that this is not practicable for certain 
 15.29  programs a degree is the only acceptable credential for career 
 15.30  entry in a specific field.  All vocational and technical credits 
 15.31  earned for a diploma or certificate shall be applicable toward 
 15.32  any available degree in the same program.  
 15.33     (b) Certificates and diplomas are credentials that 
 15.34  demonstrate competence in a vocational or technical area and, 
 15.35  therefore, may include a general education component only as 
 15.36  part of an articulation agreement or to meet occupational 
 16.1   requirements as established by the trade or profession, or by 
 16.2   the program advisory committee.  Students shall be provided with 
 16.3   applied training in general studies as necessary for competence 
 16.4   in the program area.  Students who have earned a certificate or 
 16.5   diploma may earn a degree in the same field if they complete the 
 16.6   general education and other degree requirements. 
 16.7      Sec. 11.  Minnesota Statutes 1998, section 136F.32, is 
 16.8   amended by adding a subdivision to read: 
 16.9      Subd. 3.  [ASSESSMENT.] To reduce barriers to enrollment 
 16.10  and to train a skilled workforce, students may be assessed for 
 16.11  skills necessary for competency in a technical or vocational 
 16.12  field as part of their program.  The results of standardized 
 16.13  assessment tests shall not prohibit enrollment in a student's 
 16.14  certificate or diploma program. 
 16.15     Sec. 12.  Minnesota Statutes 1998, section 137.0245, 
 16.16  subdivision 4, is amended to read: 
 16.17     Subd. 4.  [RECOMMENDATIONS.] The advisory council shall 
 16.18  recommend at least two and not more than four candidates.  By 
 16.19  March 15 of each odd-numbered year, the advisory council shall 
 16.20  submit its recommendations to the president of the senate and 
 16.21  the speaker of the house of representatives.  The council also 
 16.22  shall submit the names of any incumbent regents seeking 
 16.23  reelection, with or without recommendation.  The legislature 
 16.24  shall not be bound by these recommendations. 
 16.25     Sec. 13.  [137.17] [ROCHESTER BRANCH.] 
 16.26     Subdivision 1.  [ESTABLISH.] The board of regents may 
 16.27  establish a school of professional and graduate studies as a 
 16.28  nonresidential branch campus of the University of Minnesota, 
 16.29  Rochester, to serve the needs of working adults and other 
 16.30  nontraditional students in southeastern Minnesota.  The campus 
 16.31  shall be a joint partnership of the University of Minnesota with 
 16.32  Rochester community and technical college, and Winona state 
 16.33  university. 
 16.34     Subd. 2.  [LEADERSHIP.] The legislature intends that the 
 16.35  Rochester branch strengthen the existing partnership of 
 16.36  institutions in Rochester by providing better coordination and 
 17.1   leadership in serving the needs of the region, while maintaining 
 17.2   a cooperative basis among the institutions.  The University of 
 17.3   Minnesota is expected to take the leadership role in assessing 
 17.4   community needs and facilitating the delivery of upper division 
 17.5   and graduate academic programming and student services by 
 17.6   existing higher education providers.  It is the intent of the 
 17.7   legislature that this branch not diminish the role or function 
 17.8   of existing higher education institutions in Rochester or 
 17.9   elsewhere in the region in which the state already has a 
 17.10  significant investment. 
 17.11     Subd. 3.  [MISSIONS.] The legislature recognizes that the 
 17.12  distinctiveness of each of the partner institutions in Rochester 
 17.13  must be maintained to achieve success in serving the higher 
 17.14  education needs of the community and the economic goals of the 
 17.15  state.  Further, the legislature intends the University of 
 17.16  Minnesota to avoid duplicative offerings of courses and programs 
 17.17  offered by other partner institutions or of specialized programs 
 17.18  offered by other state university or University of Minnesota 
 17.19  campuses.  Therefore, the University of Minnesota, Winona state 
 17.20  university, and Rochester community and technical college shall 
 17.21  develop jointly a statement of missions and roles for the 
 17.22  programs and services at Rochester which shall be submitted to 
 17.23  the legislature by January 30, 2000, and any time thereafter 
 17.24  that the missions and roles change. 
 17.25     Subd. 4.  [CHANGES.] Any proposed changes in the programs, 
 17.26  services, missions, or roles of the partner institutions in 
 17.27  Rochester must be approved by the other partner institutions. 
 17.28     Sec. 14.  Minnesota Statutes 1998, section 471.59, 
 17.29  subdivision 1, is amended to read: 
 17.30     Subdivision 1.  [AGREEMENT.] Two or more governmental 
 17.31  units, by agreement entered into through action of their 
 17.32  governing bodies, may jointly or cooperatively exercise any 
 17.33  power common to the contracting parties or any similar powers, 
 17.34  including those which are the same except for the territorial 
 17.35  limits within which they may be exercised.  The agreement may 
 17.36  provide for the exercise of such powers by one or more of the 
 18.1   participating governmental units on behalf of the other 
 18.2   participating units.  The term "governmental unit" as used in 
 18.3   this section includes every city, county, town, school district, 
 18.4   other political subdivision of this or another state, another 
 18.5   state, the University of Minnesota, and any agency of the state 
 18.6   of Minnesota or the United States, and includes any 
 18.7   instrumentality of a governmental unit.  For the purpose of this 
 18.8   section, an instrumentality of a governmental unit means an 
 18.9   instrumentality having independent policy making and 
 18.10  appropriating authority. 
 18.11     Sec. 15.  [REGENT RECRUITMENT.] 
 18.12     A task force is appointed to recommend ways to enhance the 
 18.13  recruitment of candidates for the board of regents.  The task 
 18.14  force shall consider how to attract more regent candidates, 
 18.15  especially minority and female candidates.  The task force may 
 18.16  make recommendations in procedures or structures, including 
 18.17  changes in the structure of the regent candidate advisory 
 18.18  council or legislative procedures as they relate to the issue of 
 18.19  recruitment.  The task force shall consist of eight members as 
 18.20  follows:  two current or former members of the board of regents, 
 18.21  appointed by the board; two members of the regent candidate 
 18.22  advisory council, appointed by the council; two members of the 
 18.23  University of Minnesota alumni association, appointed by the 
 18.24  association; one member of the Minnesota house of 
 18.25  representatives, appointed by the speaker of the house; and one 
 18.26  member of the Minnesota senate, appointed by the subcommittee on 
 18.27  committees of the committee on rules and administration.  The 
 18.28  task force shall report its recommendations to the education 
 18.29  committees of the legislature by January 31, 2000. 
 18.30     Sec. 16.  [METRO PLAN.] 
 18.31     By September 15, 1999, the board of trustees of the 
 18.32  Minnesota state colleges and universities shall submit to the 
 18.33  legislature the master academic plan for the metropolitan area 
 18.34  as required under Laws 1996, chapter 395, section 3, paragraph 
 18.35  (e). 
 18.36     Sec. 17.  [REPEALER.] 
 19.1      Minnesota Statutes 1998, sections 136A.1359; and 136A.136, 
 19.2   are repealed. 
 19.3                              ARTICLE 3 
 19.4                           OTHER PROVISIONS 
 19.5      Section 1.  Minnesota Statutes 1998, section 141.21, 
 19.6   subdivision 3, is amended to read: 
 19.7      Subd. 3.  [SOLICITOR.] "Solicitor" means a person who for a 
 19.8   salary or for commission, acts as an agent, independent 
 19.9   contractor, salesperson, or counselor in procuring or attempting 
 19.10  to procure recruiting students or enrollees for a course of 
 19.11  instruction by solicitation in program using any form made 
 19.12  method, at any place except on the actual business premises of 
 19.13  the school and except for rendering, other than only providing 
 19.14  public information service at the invitation or permission of a 
 19.15  school or educational organization.  
 19.16     Sec. 2.  Minnesota Statutes 1998, section 141.21, 
 19.17  subdivision 5, is amended to read: 
 19.18     Subd. 5.  [SCHOOL.] "School" means any person, within or 
 19.19  without outside the state, that who maintains, advertises, 
 19.20  solicits, or conducts any course of instruction program for 
 19.21  profit or for a tuition charge at any level other than 
 19.22  baccalaureate or graduate programs, and which is not 
 19.23  specifically exempted by the provisions of sections 141.21 to 
 19.24  141.36 141.35.  
 19.25     Sec. 3.  Minnesota Statutes 1998, section 141.21, 
 19.26  subdivision 6, is amended to read: 
 19.27     Subd. 6.  [COURSE OF INSTRUCTION.] "Course of instruction" 
 19.28  means any classroom, correspondence, or extension course of 
 19.29  instruction; any subunit of a program; or any combination 
 19.30  thereof.  
 19.31     Sec. 4.  Minnesota Statutes 1998, section 141.21, is 
 19.32  amended by adding a subdivision to read: 
 19.33     Subd. 8.  [PROGRAM.] "Program" means any course or grouping 
 19.34  of courses that is advertised or listed in a school's catalog, 
 19.35  brochures, website, or other publications, or for which the 
 19.36  school grants a formal recognition. 
 20.1      Sec. 5.  Minnesota Statutes 1998, section 141.21, is 
 20.2   amended by adding a subdivision to read: 
 20.3      Subd. 9.  [DISTANCE EDUCATION SCHOOL.] "Distance education 
 20.4   school" means a school that establishes, keeps, or maintains a 
 20.5   facility or location where a program is offered through 
 20.6   correspondence, telecommunication, or electronic media, 
 20.7   including Internet website, interactive Internet, or CD-ROM 
 20.8   self-instruction. 
 20.9      Sec. 6.  Minnesota Statutes 1998, section 141.21, is 
 20.10  amended by adding a subdivision to read: 
 20.11     Subd. 10.  [WEB SITE.] "Website" means a location on the 
 20.12  World Wide Web made up of one or more pages. 
 20.13     Sec. 7.  Minnesota Statutes 1998, section 141.22, is 
 20.14  amended to read: 
 20.15     141.22 [CITATION.] 
 20.16     Sections 141.21 to 141.36 141.35 may be cited as the 
 20.17  Private Business, Trade and Correspondence Career School Act.  
 20.18     Sec. 8.  Minnesota Statutes 1998, section 141.25, 
 20.19  subdivision 1, is amended to read: 
 20.20     Subdivision 1.  [REQUIRED.] No A school shall must not 
 20.21  maintain, advertise, solicit for, or conduct any course of 
 20.22  instruction program in Minnesota without first obtaining a 
 20.23  license from the office.  
 20.24     Sec. 9.  Minnesota Statutes 1998, section 141.25, 
 20.25  subdivision 2, is amended to read: 
 20.26     Subd. 2.  [CONTRACT UNENFORCEABLE.] Any A contract entered 
 20.27  into with any a person for a course of instruction after 
 20.28  November 15, 1969, program by or on behalf of any a person 
 20.29  operating any a school to which a license has not been 
 20.30  issued pursuant to under sections 141.21 to 141.36 
 20.31  141.35, shall be is unenforceable in any action brought 
 20.32  thereon.  
 20.33     Sec. 10.  Minnesota Statutes 1998, section 141.25, 
 20.34  subdivision 3, is amended to read: 
 20.35     Subd. 3.  [APPLICATION.] Application for a license shall be 
 20.36  on forms prepared and furnished by the office, and shall contain 
 21.1   include the following and such other information as the office 
 21.2   may require: 
 21.3      (a) (1) the title or name of the school, together with 
 21.4   ownership and controlling officers, members, managing employees, 
 21.5   and director; 
 21.6      (b) (2) the specific fields of instruction programs which 
 21.7   will be offered and the specific purposes of such the 
 21.8   instruction; 
 21.9      (c) (3) the place or places where such the instruction will 
 21.10  be given; 
 21.11     (d) (4) a listing of the equipment available for 
 21.12  instruction in each course of instruction program; 
 21.13     (e) (5) the maximum enrollment to be accommodated with 
 21.14  equipment available in each specified course of instruction 
 21.15  program; 
 21.16     (f) (6) the qualifications of instructors and supervisors 
 21.17  in each specified course of instruction program; 
 21.18     (g) (7) a current balance sheet, income statement, and 
 21.19  adequate supporting documentation, prepared and certified by an 
 21.20  independent public accountant or CPA; 
 21.21     (h) (8) copies of all media advertising and promotional 
 21.22  literature and brochures, including websites, currently used or 
 21.23  reasonably expected to be used by such the school; 
 21.24     (i) (9) copies of all Minnesota enrollment agreement forms 
 21.25  and contract forms and all enrollment agreement forms and 
 21.26  contract forms used in Minnesota; and 
 21.27     (10) gross income earned in the preceding year from student 
 21.28  tuition, fees, and other required institutional charges, unless 
 21.29  the school files with the office a surety bond equal to at least 
 21.30  $50,000 as described in subdivision 5.  
 21.31     Sec. 11.  Minnesota Statutes 1998, section 141.25, 
 21.32  subdivision 5, is amended to read: 
 21.33     Subd. 5.  [BOND.] (a) No license shall be issued to any 
 21.34  school which maintains, conducts, solicits for, or advertises 
 21.35  within the state of Minnesota any course of instruction program, 
 21.36  unless the applicant files with the office a continuous 
 22.1   corporate surety bond in the sum of $10,000 written by a company 
 22.2   authorized to do business in Minnesota conditioned upon the 
 22.3   faithful performance of all contracts and agreements with 
 22.4   students made by the applicant.  Such 
 22.5      (b) The amount of the surety bond shall be ten percent of 
 22.6   the preceding year's gross income from student tuition, fees, 
 22.7   and other required institutional charges, but in no event less 
 22.8   than $10,000 nor greater than $50,000, except that a school may 
 22.9   deposit a greater amount at its own discretion.  A school in 
 22.10  each annual application for licensure must compute the amount of 
 22.11  the surety bond and verify that the amount of the surety bond 
 22.12  complies with this subdivision, unless the school maintains a 
 22.13  surety bond equal to at least $50,000.  A school that operates 
 22.14  at two or more locations may combine gross income from student 
 22.15  tuition, fees, and other required institutional charges for all 
 22.16  locations for the purpose of determining the annual surety bond 
 22.17  requirement.  The gross tuition and fees used to determine the 
 22.18  amount of the surety bond required for a school having a license 
 22.19  for the sole purpose of recruiting students in Minnesota shall 
 22.20  be only that paid to the school by the students recruited from 
 22.21  Minnesota. 
 22.22     (c) The bond shall run to the state of Minnesota and to any 
 22.23  person who may have a cause of action against the applicant 
 22.24  arising at any time after the bond is filed and before it is 
 22.25  canceled for breach of any contract or agreement made by the 
 22.26  applicant with any student.  The aggregate liability of the 
 22.27  surety for all breaches of the conditions of the bond shall not 
 22.28  exceed the principal sum of $10,000 deposited by the school 
 22.29  under paragraph (b).  The surety of any such bond may cancel it 
 22.30  upon giving 60 days' notice in writing to the office and shall 
 22.31  be relieved of liability for any breach of condition occurring 
 22.32  after the effective date of cancellation. 
 22.33     (d) In lieu of bond, the applicant may deposit with the 
 22.34  state treasurer the a sum of $10,000 equal to the amount of the 
 22.35  required surety bond in cash, or securities such as may be 
 22.36  legally purchased by savings banks or for trust funds in an 
 23.1   aggregate market value of $10,000 equal to the amount of the 
 23.2   required surety bond.  
 23.3      (e) Failure of a school to post and maintain the required 
 23.4   surety bond or deposit under paragraph (d) may result in denial, 
 23.5   suspension, or revocation of the school's license.  
 23.6      Sec. 12.  Minnesota Statutes 1998, section 141.25, 
 23.7   subdivision 6, is amended to read: 
 23.8      Subd. 6.  [RESIDENT AGENT.] Schools domiciled located 
 23.9   outside the state of Minnesota which that offer, advertise, 
 23.10  solicit for, or conduct any course of instruction program within 
 23.11  the state of Minnesota shall first file with the secretary of 
 23.12  state a sworn statement designating a resident agent authorized 
 23.13  to receive service of process.  Such The statement shall 
 23.14  designate the secretary of state as resident agent for service 
 23.15  of process in the absence of an a designated agent otherwise so 
 23.16  designated.  In the event If a school fails to file such the 
 23.17  statement, the secretary of state is hereby designated as the 
 23.18  resident agent authorized to receive service of process.  Such 
 23.19  The authorization shall be irrevocable as to causes of action 
 23.20  arising out of transactions occurring prior to the filing of 
 23.21  written notice of withdrawal from the state of Minnesota filed 
 23.22  with the secretary of state.  
 23.23     Sec. 13.  Minnesota Statutes 1998, section 141.25, 
 23.24  subdivision 7, is amended to read: 
 23.25     Subd. 7.  [MINIMUM STANDARDS.] No A license shall be issued 
 23.26  unless if the office first determines: 
 23.27     (a) (1) that the applicant has a sound financial condition 
 23.28  with sufficient resources available to: 
 23.29     (i) meet the school's financial obligations; to 
 23.30     (ii) refund all tuition and other charges, within a 
 23.31  reasonable period of time, in the event of dissolution of the 
 23.32  school or in the event of any justifiable claims for refund 
 23.33  against the school by the student body; to 
 23.34     (iii) provide adequate service to its students and 
 23.35  prospective students; and for the proper use 
 23.36     (iv) maintain and support of the school to be maintained; 
 24.1      (b) (2) that the applicant has satisfactory training 
 24.2   facilities with sufficient tools and equipment and the necessary 
 24.3   number of work stations to train prepare adequately the students 
 24.4   currently enrolled, and those proposed to be enrolled; 
 24.5      (c) (3) that the applicant employs a sufficient number of 
 24.6   qualified instructors trained by experience and education 
 24.7   teaching personnel to give provide the training educational 
 24.8   programs contemplated; 
 24.9      (d) (4) that the school has an organizational framework 
 24.10  with administrative and instructional personnel to provide the 
 24.11  programs and services it intends to offer; 
 24.12     (5) that the premises and conditions under which the 
 24.13  students work and study are sanitary, healthful, and safe, 
 24.14  according to modern standards; 
 24.15     (e) (6) that the content of each occupational course or 
 24.16  program of instruction or study shall be of such quality and 
 24.17  content as to provide provides education and training which will 
 24.18  adequately prepare adequate preparation to enrolled students for 
 24.19  entry level positions in the occupation for which trained 
 24.20  prepared; 
 24.21     (f) (7) that the living quarters which are owned, 
 24.22  maintained, or approved by the applicant for students are 
 24.23  sanitary and safe; 
 24.24     (g) (8) that the contract or enrollment agreement used by 
 24.25  the school complies with the following provisions: in section 
 24.26  141.265; 
 24.27     (1) the name and address of the school must be clearly 
 24.28  stated; 
 24.29     (2) inclusion of a clear and conspicuous disclosure that 
 24.30  such agreement becomes a legally binding instrument upon written 
 24.31  acceptance of the student by the school unless canceled pursuant 
 24.32  to section 141.271; 
 24.33     (3) must contain the school's cancellation and refund 
 24.34  policy which shall be clearly and conspicuously entitled, 
 24.35  "Buyer's Right to Cancel"; 
 24.36     (4) the total cost of the course including tuition and all 
 25.1   other charges shall be clearly stated; 
 25.2      (5) the name and description of the course, including the 
 25.3   number of hours or credits of classroom instruction and/or home 
 25.4   study lessons shall be included; 
 25.5      (6) no contract or agreement shall (9) that contracts and 
 25.6   agreements do not contain a wage assignment provision and/or or 
 25.7   a confession of judgment clause; and 
 25.8      (7) each contract or enrollment agreement shall contain a 
 25.9   clear and conspicuous explanation of the form and means of 
 25.10  notice the student should use in the event the student elects to 
 25.11  cancel the contract or sale, the effective date of cancellation, 
 25.12  and the name and address of the seller to which the notice 
 25.13  should be sent or delivered; and 
 25.14     (h) (10) that there has been no adjudication of fraud or 
 25.15  misrepresentation in any criminal, civil, or administrative 
 25.16  proceeding in any jurisdiction against the school or its owner, 
 25.17  officers, agents, or sponsoring organization.  
 25.18     Sec. 14.  Minnesota Statutes 1998, section 141.25, 
 25.19  subdivision 8, is amended to read: 
 25.20     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications An 
 25.21  application for an initial license under sections 141.21 
 25.22  to 141.36 141.35 shall be accompanied by a nonrefundable 
 25.23  application fee established by the office that is sufficient to 
 25.24  recover, but not exceed, its administrative costs. 
 25.25     (b) All licenses shall expire one year from the date issued 
 25.26  by the office.  Each renewal application shall be accompanied by 
 25.27  a nonrefundable renewal fee established by the office that is 
 25.28  sufficient to recover, but does not exceed, its administrative 
 25.29  costs.  
 25.30     (c) Application for renewal of license shall be made at 
 25.31  least 30 days before the expiration of the school's current 
 25.32  license.  Each renewal form shall be supplied by the office.  It 
 25.33  shall not be necessary for an applicant to supply all 
 25.34  information required in the initial application at the time of 
 25.35  renewal unless requested by the office.  
 25.36     Sec. 15.  Minnesota Statutes 1998, section 141.25, 
 26.1   subdivision 9, is amended to read: 
 26.2      Subd. 9.  [CATALOG, BROCHURE, OR WEBSITE.] Before a license 
 26.3   is issued to a school, other than one which offers exclusively a 
 26.4   correspondence course of instruction, the school shall furnish 
 26.5   to the office a catalog or, brochure containing the following, 
 26.6   or copy of any website pages including: 
 26.7      (1) identifying data, such as volume number and date of 
 26.8   publication; 
 26.9      (2) name and address of the school and its governing body 
 26.10  and officials; 
 26.11     (3) a calendar of the school showing legal holidays, 
 26.12  beginning and ending dates of each course quarter, term, or 
 26.13  semester, and other important dates; 
 26.14     (4) the school policy and regulations on enrollment 
 26.15  including dates and specific entrance requirements for 
 26.16  each course program; 
 26.17     (5) the school policy and regulations about leave, 
 26.18  absences, class cuts, make-up work, tardiness, and interruptions 
 26.19  for unsatisfactory attendance; 
 26.20     (6) the school policy and regulations about standards of 
 26.21  progress for the student including the grading system of the 
 26.22  school, the minimum grades considered satisfactory, conditions 
 26.23  for interruption for unsatisfactory grades or progress, a 
 26.24  description of any probationary period allowed by the school, 
 26.25  and conditions of reentrance for those dismissed for 
 26.26  unsatisfactory progress; 
 26.27     (7) the school policy and regulations about student conduct 
 26.28  and conditions for dismissal for unsatisfactory conduct; 
 26.29     (8) a detailed schedule of fees, charges for tuition, 
 26.30  books, supplies, tools, student activities, laboratory fees, 
 26.31  service charges, rentals, deposits, and all other charges; 
 26.32     (9) the school policy and regulations, including an 
 26.33  explanation of section 141.271, about refunding tuition, fees, 
 26.34  and other charges if the student does not enter the course 
 26.35  program, withdraws from the program, or the program is 
 26.36  discontinued; 
 27.1      (10) a description of the available facilities and 
 27.2   equipment; 
 27.3      (11) a course outline for each course offered showing 
 27.4   course objectives, subjects or units in the course, type of work 
 27.5   or skill to be learned, and approximate time, hours, or credits 
 27.6   to be spent on each subject or unit; and 
 27.7      (12) the school policy and regulations about granting 
 27.8   credit for previous education and training. preparation; 
 27.9      (13) a procedure for investigating and resolving student 
 27.10  complaints; and 
 27.11     (14) the name and address of the Minnesota higher education 
 27.12  services office. 
 27.13     A school that is exclusively a distance education school is 
 27.14  exempt from clauses (3) and (5). 
 27.15     Sec. 16.  Minnesota Statutes 1998, section 141.25, 
 27.16  subdivision 10, is amended to read: 
 27.17     Subd. 10.  [PLACEMENT RECORDS.] (a) Before a license is 
 27.18  issued to a school that offers, advertises or implies a 
 27.19  placement service, the school shall file with the office for the 
 27.20  past year and thereafter at reasonable intervals determined by 
 27.21  the office, a certified copy of the school's placement record, 
 27.22  containing a list of graduates, a description of their job jobs, 
 27.23  name names of their employer employers, and other information as 
 27.24  the office may prescribe.  
 27.25     (b) Each school that offers a placement service shall 
 27.26  furnish to each prospective student, prior to enrollment, 
 27.27  written information concerning the percentage of the previous 
 27.28  year's graduates who were placed in the occupation for which 
 27.29  trained prepared or in related employment. 
 27.30     Sec. 17.  Minnesota Statutes 1998, section 141.25, 
 27.31  subdivision 12, is amended to read: 
 27.32     Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
 27.33  to a school, each A school licensed under this chapter and 
 27.34  located in Minnesota shall maintain a permanent records record 
 27.35  for all students enrolled at any time each student for 50 years 
 27.36  from the last date of the student's attendance.  Each A school 
 28.1   licensed under this chapter and offering a correspondence course 
 28.2   of instruction distance education program to a student located 
 28.3   in Minnesota shall maintain a permanent records record for each 
 28.4   Minnesota students enrolled at any time student for 50 years 
 28.5   from the last date of the student's attendance.  Records include 
 28.6   school transcripts, documents, and files containing student data 
 28.7   about academic credits earned, courses completed, grades 
 28.8   awarded, degrees awarded, and periods of attendance.  To 
 28.9   preserve permanent records, a school shall submit a plan that 
 28.10  meets the following requirements: 
 28.11     (a) (1) at least one copy of the records must be held in a 
 28.12  secure depository; 
 28.13     (b) (2) an appropriate official must be designated to 
 28.14  provide a student with copies of records or a transcript upon 
 28.15  request; 
 28.16     (c) (3) an alternative method of complying with paragraphs 
 28.17  (a) and (b) clauses (1) and (2) must be established if the 
 28.18  school ceases to exist; and 
 28.19     (d) (4) a continuous surety bond must be filed with the 
 28.20  office in an amount not to exceed $20,000 if the school has no 
 28.21  binding agreement for preserving student records or a trust must 
 28.22  be arranged if the school ceases to exist. 
 28.23     Sec. 18.  [141.251] [LICENSE RENEWAL.] 
 28.24     Subdivision 1.  [APPLICATION.] Application for renewal of a 
 28.25  license must be made at least 30 days before expiration of the 
 28.26  current license on a form provided by the office.  A renewal 
 28.27  application shall be accompanied by a nonrefundable fee 
 28.28  established by the office that is sufficient to recover, but 
 28.29  does not exceed, its administrative costs. 
 28.30     Subd. 2.  [CONDITIONS.] The office shall adopt rules 
 28.31  establishing the conditions for renewal of a license.  The 
 28.32  conditions shall permit two levels of renewal based on the 
 28.33  record of the school.  A school that has demonstrated the 
 28.34  quality of its program and operation through longevity and 
 28.35  performance in the state may renew its license based on a 
 28.36  relaxed standard of scrutiny.  A school that has been in 
 29.1   operation in Minnesota for a limited period of time or that has 
 29.2   not performed adequately on performance indicators shall renew 
 29.3   its license based on a strict standard of scrutiny.  The office 
 29.4   shall specify minimum longevity standards and performance 
 29.5   indicators that must be met before a school may be permitted to 
 29.6   operate under the relaxed standard of scrutiny.  The performance 
 29.7   indicators used in this determination shall include, but not be 
 29.8   limited to:  degree granting status, national accreditation, 
 29.9   loan default rates, placement rate of graduates, student 
 29.10  withdrawal rates, audit results, student complaints, and school 
 29.11  status with the United States Department of Education.  Schools 
 29.12  that meet the requirements established in rule shall be required 
 29.13  to submit a full relicensure report once every four years, and 
 29.14  in the interim years will be exempt from the requirements of 
 29.15  section 141.25, subdivision 3, clauses (4), (5), and (8), and 
 29.16  Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, 
 29.17  subpart 4. 
 29.18     Sec. 19.  Minnesota Statutes 1998, section 141.26, 
 29.19  subdivision 2, is amended to read: 
 29.20     Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
 29.21  the permit shall state the full name, address, previous 
 29.22  employment, and such other information concerning the solicitor 
 29.23  applicant as the office may require.  
 29.24     (b) The application shall have attached to it a certified 
 29.25  affidavit signed by a school official and the solicitor 
 29.26  attesting to the fact that the applicant has been furnished a 
 29.27  copy, has read and has knowledge of the provisions of this 
 29.28  chapter and Minnesota Rules, parts 3530.6500 to 3530.7800.  
 29.29     Sec. 20.  [141.265] [INFORMATION TO STUDENTS.] 
 29.30     Subdivision 1.  [CATALOG.] A school or its agent shall 
 29.31  deliver the catalog, brochure, or copy of the website pages 
 29.32  required in section 141.25, subdivision 9, to a prospective 
 29.33  student in a time or manner that provides the prospective 
 29.34  student at least five business days to read the catalog, 
 29.35  brochure, or copy of the website pages before signing a contract 
 29.36  or enrollment agreement or before being accepted by a school 
 30.1   that does not use a written contract or enrollment agreement. 
 30.2      Subd. 2.  [CONTRACT INFORMATION.] A contract or enrollment 
 30.3   agreement used by a school must include at least the following: 
 30.4      (1) the name and address of the school, clearly stated; 
 30.5      (2) a clear and conspicuous disclosure that the agreement 
 30.6   is a legally binding instrument upon written acceptance of the 
 30.7   student by the school unless canceled under section 141.271; 
 30.8      (3) the school's cancellation and refund policy that shall 
 30.9   be clearly and conspicuously entitled "Buyer's Right to Cancel"; 
 30.10     (4) a clear statement of total cost of the program 
 30.11  including tuition and all other charges; 
 30.12     (5) the name and description of the program, including the 
 30.13  number of hours or credits of classroom instruction, distance 
 30.14  education instruction, or both that shall be included; and 
 30.15     (6) a clear and conspicuous explanation of the form and 
 30.16  means of notice the student should use in the event the student 
 30.17  elects to cancel the contract or sale, the effective date of 
 30.18  cancellation, and the name and address of the seller to which 
 30.19  the notice should be sent or delivered. 
 30.20     Subd. 3.  [CONTRACT COPIES.] Immediately upon signing of 
 30.21  the enrollment agreement or the contract by a prospective 
 30.22  student, the school or agent shall furnish to the prospective 
 30.23  student an exact duplicate copy of the enrollment agreement or 
 30.24  contract.  
 30.25     Sec. 21.  Minnesota Statutes 1998, section 141.271, 
 30.26  subdivision 1, is amended to read: 
 30.27     Subdivision 1.  [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT 
 30.28  TO REFUND STUDENT.] For the purposes of this section, "student" 
 30.29  means the party to the contract, whether the party is the 
 30.30  student, the student's parent or guardian, or other person on 
 30.31  behalf of the student. 
 30.32     Subd. 1a.  [NOTICE; RIGHT TO REFUND.] Every school shall 
 30.33  notify each student, in writing, of acceptance or rejection.  In 
 30.34  the event that the student is rejected by the school, all 
 30.35  tuition, fees and other charges shall be refunded.  
 30.36     Sec. 22.  Minnesota Statutes 1998, section 141.271, 
 31.1   subdivision 2, is amended to read: 
 31.2      Subd. 2.  [SCHOOLS USING WRITTEN CONTRACTS.] (a) 
 31.3   Notwithstanding anything to the contrary, every a school which 
 31.4   utilizes that uses a written contract or enrollment agreement 
 31.5   shall refund all tuition, fees and other charges paid by a 
 31.6   student, if the student gives written notice of cancellation 
 31.7   within five business days after the day on which the contract 
 31.8   was executed regardless of whether the course of instruction 
 31.9   program has started.  
 31.10     (b) With respect to those schools utilizing a written 
 31.11  contract or enrollment agreement, When a student has been 
 31.12  accepted by the school and has entered into a contractual 
 31.13  agreement with the school and gives written notice of 
 31.14  cancellation following the fifth business day after the date of 
 31.15  execution of contract, but before the start of the course of 
 31.16  instruction program in the case of resident schools, or before 
 31.17  the first lesson has been serviced by the school in the case of 
 31.18  correspondence (home study) distance education schools, all 
 31.19  tuition, fees and other charges, except 15 percent of the total 
 31.20  cost of the course program but not to exceed $50, shall be 
 31.21  refunded to the student. 
 31.22     Sec. 23.  Minnesota Statutes 1998, section 141.271, 
 31.23  subdivision 3, is amended to read: 
 31.24     Subd. 3.  [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 
 31.25  Notwithstanding anything to the contrary, every a school which 
 31.26  that does not utilize use a written contract or enrollment 
 31.27  agreement shall refund all tuition, fees and other charges paid 
 31.28  by a student if the student gives written notice of cancellation 
 31.29  within five business days after the day on which the student is 
 31.30  accepted by the school regardless of whether the course of 
 31.31  instruction program has started. 
 31.32     (b) With respect to those schools not utilizing a written 
 31.33  contract or enrollment agreement, When a student has been 
 31.34  accepted by the school and gives written notice of cancellation 
 31.35  following the fifth business day after the day of acceptance by 
 31.36  the school, but before the start of the course of 
 32.1   instruction program, in the case of resident schools, or before 
 32.2   the first lesson has been serviced by the school, in the case of 
 32.3   correspondence (home study) distance education schools, all 
 32.4   tuition, fees and other charges, except 15 percent of the total 
 32.5   cost of the course program but not to exceed $50, shall be 
 32.6   refunded to the student. 
 32.7      Sec. 24.  Minnesota Statutes 1998, section 141.271, 
 32.8   subdivision 4, is amended to read: 
 32.9      Subd. 4.  [RESIDENT SCHOOLS.] With respect to all schools 
 32.10  offering a resident course of instruction, When a student has 
 32.11  been accepted by the a school offering a resident program and 
 32.12  gives written notice of cancellation after the start of the 
 32.13  period of instruction for which the student has been charged, 
 32.14  but before completion of 75 percent of the period of instruction 
 32.15  for which the student has been charged, the amount charged for 
 32.16  tuition, fees, and all other charges for the completed portion 
 32.17  of the period of instruction for which the student has been 
 32.18  charged shall not exceed the pro rata be prorated as a portion 
 32.19  of the total charges for tuition, fees, and all other charges 
 32.20  that the length of the completed portion of the period of 
 32.21  instruction for which the student has been charged bears to its 
 32.22  total length, plus.  An additional 25 percent of the total cost 
 32.23  of the period of instruction for which the student has been 
 32.24  charged may be added, but shall not to exceed $100.  After 
 32.25  completion of 75 percent of the period of instruction for which 
 32.26  the student has been charged, no refunds are required.  
 32.27     Sec. 25.  Minnesota Statutes 1998, section 141.271, 
 32.28  subdivision 5, is amended to read: 
 32.29     Subd. 5.  [CORRESPONDENCE HOME STUDY DISTANCE EDUCATION 
 32.30  SCHOOLS.] With respect to all schools offering a correspondence 
 32.31  (home study) course of instruction, When a student has been 
 32.32  accepted by the a distance education school and gives written 
 32.33  notice of cancellation after the first lesson has been completed 
 32.34  by the student and serviced by the school, but before completion 
 32.35  of 75 percent of the course of instruction program, the amount 
 32.36  charged for tuition, fees and all other charges for the 
 33.1   completed lessons shall not exceed the pro rata be prorated as a 
 33.2   portion of the total charges for tuition, fees and all other 
 33.3   charges that the number of lessons completed by the student 
 33.4   bears to the total number of lessons offered, plus.  An 
 33.5   additional 25 percent of the total cost of the course program 
 33.6   may be added but shall not to exceed $75.  After completion of 
 33.7   75 percent of the course of instruction program, no refunds are 
 33.8   required.  
 33.9      Sec. 26.  Minnesota Statutes 1998, section 141.271, 
 33.10  subdivision 6, is amended to read: 
 33.11     Subd. 6.  [COMBINATION CORRESPONDENCE-RESIDENT DISTANCE 
 33.12  EDUCATION-RESIDENT SCHOOLS.] With respect to all schools 
 33.13  offering a combination correspondence (home study)-resident 
 33.14  course of instruction, When a student has been accepted by the a 
 33.15  school that offers a combination distance education-residence 
 33.16  program and gives written notice of cancellation after the start 
 33.17  of the course of instruction program or after the first lesson 
 33.18  has been completed by the student and serviced by the school, 
 33.19  whichever phase comes first, the school shall refund all 
 33.20  tuition, fees and other charges as provided for in subdivision 4 
 33.21  if cancellation occurs during the resident portion, and as 
 33.22  provided for in subdivision 5 if cancellation occurs during 
 33.23  the correspondence distance education portion; provided that,.  
 33.24  If the cancellation occurs before the student has commenced one 
 33.25  of the phases, the price of that phase shall not be considered 
 33.26  in making the proration and the student shall be entitled to a 
 33.27  full refund of the price thereof charges.  Conversely, if the 
 33.28  student has completed a phase of the course program before 
 33.29  cancellation, the price thereof charges may be retained by the 
 33.30  school provided that the total tuition, fees and other charges 
 33.31  for each phase have been stated separately in the school's 
 33.32  catalog and contract or enrollment agreement.  
 33.33     Sec. 27.  Minnesota Statutes 1998, section 141.271, 
 33.34  subdivision 12, is amended to read: 
 33.35     Subd. 12.  [INSTRUMENT NOT TO BE NEGOTIATED.] No A school 
 33.36  shall not negotiate any promissory instrument received as 
 34.1   payment of tuition or other charge prior to completion of 50 
 34.2   percent of the course of instruction program.  Prior to such 
 34.3   that time, such instruments may be transferred by assignment to 
 34.4   purchasers who shall be subject to all defenses available 
 34.5   against the school named as payee.  
 34.6      Sec. 28.  Minnesota Statutes 1998, section 141.28, 
 34.7   subdivision 3, is amended to read: 
 34.8      Subd. 3.  [FALSE STATEMENTS.] No A school, agent, or 
 34.9   solicitor shall not make, or cause to be made, any statement or 
 34.10  representation, oral, written or visual, in connection with the 
 34.11  offering or publicizing of a course program, if such the school, 
 34.12  agent, or solicitor knows or reasonably should have known the 
 34.13  statement or representation to be false, fraudulent, deceptive, 
 34.14  substantially inaccurate, or misleading.  
 34.15     Sec. 29.  Minnesota Statutes 1998, section 141.28, 
 34.16  subdivision 5, is amended to read: 
 34.17     Subd. 5.  [IMPROBABLE COURSE PROGRAM COMPLETION OR 
 34.18  EMPLOYMENT.] No A school, agent, or solicitor shall not enroll a 
 34.19  prospective student when it is obvious that the prospective 
 34.20  student is unlikely to successfully complete a course of 
 34.21  instruction program or is unlikely to qualify for employment in 
 34.22  the vocation or field for which the training preparation is 
 34.23  designed unless this fact is affirmatively disclosed to the 
 34.24  prospective student.  If a prospective student expresses a 
 34.25  desire to enroll after such disclosure, a disclaimer may be 
 34.26  obtained by the school.  Such The disclaimer shall be signed by 
 34.27  the student and shall state substantially as follows one or both 
 34.28  of the following:  "I am fully aware that it is unlikely I will 
 34.29  be able to successfully complete the course of instruction 
 34.30  program" and/or and "I am fully aware of the improbability or 
 34.31  impossibility that I will qualify for employment in the vocation 
 34.32  or field for which the course program was designed."  
 34.33     Sec. 30.  Minnesota Statutes 1998, section 141.29, 
 34.34  subdivision 1, is amended to read: 
 34.35     Subdivision 1.  [GROUNDS.] The office may, after notice and 
 34.36  upon providing an opportunity for a hearing, pursuant to under 
 35.1   chapter 14 if requested by the parties adversely affected, 
 35.2   refuse to issue, refuse to renew, revoke, or suspend any a 
 35.3   license or solicitor's permit for any one or any combination of 
 35.4   the following grounds: 
 35.5      (a) (1) violation of any provisions of sections 141.21 to 
 35.6   141.36 141.35 or any rule promulgated adopted by the office; 
 35.7      (b) (2) furnishing to the office false, misleading, or 
 35.8   incomplete information; 
 35.9      (c) (3) presenting to prospective students information 
 35.10  relating to the school which that is false, fraudulent, 
 35.11  deceptive, substantially inaccurate, or misleading; 
 35.12     (d) (4) refusal to allow reasonable inspection or supply 
 35.13  reasonable information after written request therefor by the 
 35.14  office; 
 35.15     (e) (5) the existence of any circumstance which that would 
 35.16  be grounds for the refusal of an initial or renewal license 
 35.17  under section 141.25.  
 35.18     Sec. 31.  Minnesota Statutes 1998, section 141.31, is 
 35.19  amended to read: 
 35.20     141.31 [INJUNCTION.] 
 35.21     Upon application of the attorney general the district 
 35.22  courts shall have jurisdiction to enjoin any violation of 
 35.23  sections 141.21 to 141.36 141.35.  
 35.24     Sec. 32.  Minnesota Statutes 1998, section 141.32, is 
 35.25  amended to read: 
 35.26     141.32 [PENALTY.] 
 35.27     Violation of any provisions a provision of this chapter 
 35.28  shall be a misdemeanor.  Each day's failure to comply with this 
 35.29  chapter shall be a separate violation.  The office shall adopt 
 35.30  rules establishing a list of civil penalties and the fine 
 35.31  associated with each violation.  Fines for violations shall not 
 35.32  exceed $500 per day per violation.  
 35.33     Sec. 33.  Minnesota Statutes 1998, section 141.35, is 
 35.34  amended to read: 
 35.35     141.35 [EXEMPTIONS.] 
 35.36     None of the provisions of Sections 141.21 to 141.36 141.35 
 36.1   shall not apply to the following: 
 36.2      (a) (1) colleges authorized by the laws of Minnesota or of 
 36.3   any other state or foreign country to grant degrees public 
 36.4   post-secondary institutions; 
 36.5      (2) private post-secondary institutions registered under 
 36.6   sections 136A.61 to 136A.71 that are nonprofit, or that are for 
 36.7   profit and registered under sections 136A.61 to 136A.71 as of 
 36.8   December 31, 1998, or are approved to offer exclusively 
 36.9   baccalaureate or postbaccalaureate programs; 
 36.10     (b) (3) schools of nursing accredited by the state board of 
 36.11  nursing or an equivalent public board of another state or 
 36.12  foreign country; 
 36.13     (c) public schools as defined in section 120A.05, 
 36.14  subdivisions 9, 11, 13, and 17; 
 36.15     (d) (4) private schools complying with the requirements of 
 36.16  section 120A.22, subdivision 2 4; 
 36.17     (e) private and parochial nonprofit schools exempt from 
 36.18  taxation under the constitution of Minnesota; 
 36.19     (f) (5) courses taught to students in a valid 
 36.20  apprenticeship program taught by or required by a trade union; 
 36.21     (g) (6) schools exclusively engaged in training physically 
 36.22  or mentally handicapped persons for the state of Minnesota; 
 36.23     (h) (7) schools now or hereafter licensed by boards 
 36.24  authorized under Minnesota law to issue such licenses; 
 36.25     (i) (8) schools and educational programs, or training 
 36.26  programs, conducted contracted for by persons, firms, 
 36.27  corporations, government agencies or associations, for the 
 36.28  training of their own employees, for which no fee is charged the 
 36.29  employee; 
 36.30     (j) (9) schools engaged exclusively in the teaching of 
 36.31  purely avocational, recreational, or remedial subjects as 
 36.32  determined by the office.  Private schools teaching a method or 
 36.33  procedure to increase the speed with which a student reads are 
 36.34  not within this exemption; 
 36.35     (k) (10) driver training schools and instructors as defined 
 36.36  in section 171.33, subdivisions 1 and 2; 
 37.1      (l) (11) classes, courses, or programs conducted by a bona 
 37.2   fide trade, professional, or fraternal organization, solely for 
 37.3   that organization's membership; 
 37.4      (m) courses of instruction (12) programs in the fine arts 
 37.5   provided by organizations exempt from taxation pursuant to under 
 37.6   section 290.05 and registered with the attorney general pursuant 
 37.7   to under chapter 309.  For the purposes of this clause, "fine 
 37.8   arts" means activities resulting in artistic creation or 
 37.9   artistic performance of works of the imagination which are 
 37.10  engaged in for the primary purpose of creative expression rather 
 37.11  than commercial sale or employment. In making this determination 
 37.12  the office may seek the advice and recommendation of the 
 37.13  Minnesota board of the arts; 
 37.14     (n) (13) classes, courses, or programs intended to fulfill 
 37.15  the continuing education requirements for licensure or 
 37.16  certification in a profession, which classes, courses, or 
 37.17  programs that have been approved by a legislatively or 
 37.18  judicially established board or agency responsible for 
 37.19  regulating the practice of the profession, and which that are 
 37.20  offered primarily to a person who currently practices an 
 37.21  individual practicing the profession; 
 37.22     (o) (14) classes, courses, or programs intended to prepare 
 37.23  students to sit for undergraduate, graduate, postgraduate, or 
 37.24  occupational licensing and occupational entrance examinations; 
 37.25     (p) (15) classes, courses, or programs of a seminar nature 
 37.26  providing 16 or fewer clock hours of instruction that are not 
 37.27  part of the curriculum for an occupation or are not intended to 
 37.28  prepare a person for entry level employment; 
 37.29     (q) (16) classes, courses, or programs of a seminar nature 
 37.30  providing instruction in personal development, modeling, or 
 37.31  acting; and 
 37.32     (r) (17) training or instructional programs, in which one 
 37.33  instructor teaches an individual student, that are not part of 
 37.34  the curriculum for an occupation or are not intended to prepare 
 37.35  a person for entry level employment; and 
 37.36     (18) schools with no physical presence in Minnesota engaged 
 38.1   exclusively in offering distance education courses or programs 
 38.2   that are located in and regulated by other states or 
 38.3   jurisdictions.  
 38.4      Sec. 34.  [SUBMISSION OF RULES.] 
 38.5      At least 30 days prior to final adoption of rules 
 38.6   authorized under sections 18 and 32, the office must submit the 
 38.7   proposed rules to all members of the education committees of the 
 38.8   legislature. 
 38.9      Sec. 35.  [REPEALER.] 
 38.10     Minnesota Statutes 1998, sections 141.25, subdivisions 9a, 
 38.11  9b, and 11; and 141.36, are repealed.