1.1                          A bill for an act 
  1.2             relating to education; appropriating money for higher 
  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; requiring 
  1.8             post-secondary institutions to provide certain 
  1.9             information; modifying financial aid provisions; 
  1.10            making technical changes to membership and terms of 
  1.11            certain advisory councils, boards, and student 
  1.12            associations; modifying curriculum provisions for 
  1.13            Minnesota state colleges and universities; extending 
  1.14            and transferring the farmer-lender mediation program 
  1.15            to the Minnesota extension service; requiring certain 
  1.16            reports to the legislature; clarifying and changing 
  1.17            requirements of private career schools; amending 
  1.18            Minnesota Statutes 1998, sections 16B.465, subdivision 
  1.19            4; 135A.14, by adding a subdivision; 135A.155; 
  1.20            136A.031, subdivision 3; 136A.121, subdivision 5; 
  1.21            136A.125, subdivision 4; 136A.243, subdivision 7; 
  1.22            136A.244, subdivision 2; 136A.245, subdivision 6; 
  1.23            136F.02, subdivision 2; 136F.04, subdivision 1; 
  1.24            136F.22, subdivision 1; 136F.32, subdivision 2, and by 
  1.25            adding a subdivision; 141.21, subdivisions 3, 5, 6, 
  1.26            and by adding subdivisions; 141.25, subdivisions 1, 2, 
  1.27            3, 5, 6, 7, 8, 9, 10, and 12; 141.26, subdivision 2; 
  1.28            141.271, subdivisions 1, 2, 3, 4, 5, 6, and 12; 
  1.29            141.28, subdivisions 3 and 5; 141.29, subdivision 1; 
  1.30            141.31; 141.32; 141.35; 471.59, subdivision 1; and 
  1.31            583.22, subdivision 5; Laws 1986, chapter 398, article 
  1.32            1, section 18, as amended; proposing coding for new 
  1.33            law in Minnesota Statutes, chapters 136A; 137; and 
  1.34            141; repealing Minnesota Statutes 1998, sections 
  1.35            136A.1359; 136A.136; 141.22; 141.25, subdivisions 9a, 
  1.36            9b, and 11; and 141.36. 
  1.37  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.38                             ARTICLE 1 
  1.39                           APPROPRIATIONS 
  1.40  Section 1.  [HIGHER EDUCATION APPROPRIATIONS.] 
  1.41     The sums in the columns marked "APPROPRIATIONS" are 
  2.1   appropriated from the general fund, or other named fund, to the 
  2.2   agencies and for the purposes specified in this article.  The 
  2.3   listing of an amount under the figure "2000" or "2001" in this 
  2.4   article indicates that the amount is appropriated to be 
  2.5   available for the fiscal year ending June 30, 2000, or June 30, 
  2.6   2001, respectively.  "The first year" is fiscal year 2000.  "The 
  2.7   second year" is fiscal year 2001.  "The biennium" is fiscal 
  2.8   years 2000 and 2001. 
  2.9                           SUMMARY BY FUND 
  2.10                            2000          2001           TOTAL
  2.11  General            $1,277,440,000 $1,338,000,000 $2,615,440,000
  2.12  Health Care
  2.13  Access                  2,937,000      2,937,000      5,874,000
  2.14  Lottery Prize Fund        250,000        -0-            250,000
  2.15                   SUMMARY BY AGENCY - ALL FUNDS
  2.16                            2000          2001           TOTAL
  2.17  Higher Education Services Office
  2.18                        149,926,000    160,527,000    310,453,000
  2.19  Board of Trustees of the Minnesota
  2.20  State Colleges and Universities
  2.21                        543,597,000    572,394,000  1,115,991,000
  2.22  Board of Regents of the University
  2.23  of Minnesota
  2.24                        585,558,000    606,379,000  1,191,937,000
  2.25  Mayo Medical Foundation
  2.26                          1,546,000      1,637,000      3,183,000
  2.27                                            APPROPRIATIONS 
  2.28                                         Available for the Year 
  2.29                                             Ending June 30 
  2.30                                            2000         2001 
  2.31  Sec. 2.  HIGHER EDUCATION
  2.32  SERVICES OFFICE
  2.33  Subdivision 1.  Total
  2.34  Appropriation                        149,926,000    160,527,000
  2.35  The amounts that may be spent from this 
  2.36  appropriation for each purpose are 
  2.37  specified in the following subdivisions.
  2.38  Subd. 2.  State Grants
  2.39      117,907,000       128,367,000
  2.40  If the appropriation in this 
  2.41  subdivision for either year is 
  2.42  insufficient, the appropriation for the 
  3.1   other year is available for it.  
  3.2   The legislature intends that the higher 
  3.3   education services office make full 
  3.4   grant awards in each year of the 
  3.5   biennium.  
  3.6   For the biennium, the private 
  3.7   institution tuition maximum shall be 
  3.8   $8,300 in the first year and $8,550 in 
  3.9   the second year for four-year 
  3.10  institutions and $6,390 in the first 
  3.11  year and $6,580 in the second year for 
  3.12  two-year institutions. 
  3.13  This appropriation contains money to 
  3.14  set the living and miscellaneous 
  3.15  expense allowance at $5,075 in the 
  3.16  first year and $5,185 in the second 
  3.17  year. 
  3.18  This appropriation contains money to 
  3.19  match scholarship grants made under the 
  3.20  National Service Scholars program of 
  3.21  the Corporation for National Service to 
  3.22  students attending Minnesota high 
  3.23  schools and who will attend a Minnesota 
  3.24  post-secondary institution.  Not more 
  3.25  than one matching grant of $500 may be 
  3.26  made for each high school per year.  
  3.27  Subd. 3.  Interstate Tuition
  3.28  Reciprocity
  3.29       4,500,000      4,500,000
  3.30  If the appropriation in this 
  3.31  subdivision for either year is 
  3.32  insufficient, the appropriation for the 
  3.33  other year is available to meet 
  3.34  reciprocity contract obligations. 
  3.35  Subd. 4.  State Work Study
  3.36      12,444,000     12,444,000
  3.37  To assist the legislature in future 
  3.38  policy and appropriation decisions, the 
  3.39  office shall collect information from 
  3.40  all participating institutions on the 
  3.41  use of child care and work study 
  3.42  allocations.  For each program, the 
  3.43  data shall include at least the number 
  3.44  of recipients, the hours for which they 
  3.45  receive state money, payment per hour, 
  3.46  location of service, unmet demand, 
  3.47  returned and additional allocations, 
  3.48  and any institutional/system policies 
  3.49  that affect recipients.  The office 
  3.50  shall provide this information to the 
  3.51  higher education finance committees by 
  3.52  January 15, 2000. 
  3.53  Subd. 5.  Minitex Library Program
  3.54       4,948,000      4,968,000
  3.55  This appropriation is for Minitex and 
  3.56  MnLINK operations, the Minnesota 
  3.57  Library Access Center, licensing for 
  3.58  online table of contents, and licensing 
  4.1   for online journals including online 
  4.2   databases for MnLINK. 
  4.3   Subd. 6.  Learning Network of Minnesota
  4.4        5,178,000      5,179,000
  4.5   Subd. 7.  Income Contingent Loans
  4.6   The higher education services office 
  4.7   shall administer an income contingent 
  4.8   loan repayment program to assist 
  4.9   graduates of Minnesota schools in 
  4.10  medicine, dentistry, pharmacy, 
  4.11  chiropractic medicine, public health, 
  4.12  and veterinary medicine, and Minnesota 
  4.13  residents graduating from optometry and 
  4.14  osteopathy programs.  Applicant data 
  4.15  collected by the office for this 
  4.16  program may be disclosed to a consumer 
  4.17  credit reporting agency under the same 
  4.18  conditions as apply to the supplemental 
  4.19  loan program under Minnesota Statutes, 
  4.20  section 136A.162.  No new applicants 
  4.21  may be accepted after June 30, 1995.  
  4.22  The higher education services office 
  4.23  shall work with the office of the 
  4.24  senior vice-president for health 
  4.25  sciences at the University of Minnesota 
  4.26  to determine the borrowing and 
  4.27  repayment problems of students in the 
  4.28  academic health center.  The higher 
  4.29  education services office shall report 
  4.30  any findings and recommendations to the 
  4.31  higher education finance committees by 
  4.32  February 1, 2000. 
  4.33  Subd. 8.  Edvest 
  4.34       1,520,000      1,520,000 
  4.35  Notwithstanding Minnesota Statutes, 
  4.36  section 16C.05, subdivision 2, the 
  4.37  higher education services office may, 
  4.38  on a one-time basis, enter into a 
  4.39  contract up to eight years with a third 
  4.40  party vendor for purposes of starting 
  4.41  the Edvest program authorized in 
  4.42  Minnesota Statutes, section 136A.241. 
  4.43  Subd. 9.  Agency Administration
  4.44       3,429,000      3,549,000
  4.45  This appropriation includes money for 
  4.46  the Minnesota Minority Education 
  4.47  Partnership.  This appropriation 
  4.48  includes funding to foster 
  4.49  post-secondary attendance by providing 
  4.50  outreach services to historically 
  4.51  underserved groups of Minnesota 
  4.52  elementary and secondary students.  The 
  4.53  office may retain the entire 
  4.54  appropriation or contract with other 
  4.55  agencies or nonprofit organizations for 
  4.56  specific services in this effort. 
  4.57  Notwithstanding Laws 1994, chapter 643, 
  4.58  section 69, subdivision 2, the library 
  4.59  planning task force shall expire on 
  4.60  June 30, 2001. 
  5.1   Subd. 10.  Balances Forward 
  5.2   An unencumbered balance in the first 
  5.3   year under a subdivision in this 
  5.4   section does not cancel but is 
  5.5   available for the second year. 
  5.6   Subd. 11.  Transfers 
  5.7   The higher education services office 
  5.8   may transfer unencumbered balances from 
  5.9   the appropriations in this section to 
  5.10  the state grant appropriation, the 
  5.11  interstate tuition reciprocity 
  5.12  appropriation, the child care 
  5.13  appropriation, and the state work study 
  5.14  appropriation. 
  5.15  Sec. 3.  BOARD OF TRUSTEES OF THE
  5.16  MINNESOTA STATE COLLEGES AND UNIVERSITIES
  5.17  Subdivision 1.  Total
  5.18  Appropriation                        543,597,000    572,394,000
  5.19  The amounts that may be spent from this 
  5.20  appropriation for each purpose are 
  5.21  specified in the following subdivisions.
  5.22  Subd. 2.  Estimated Expenditures and Appropriations 
  5.23  The legislature estimates that 
  5.24  instructional expenditures will be 
  5.25  $678,729,000 in the first year and 
  5.26  $713,533,000 in the second year. 
  5.27  The legislature estimates that 
  5.28  noninstructional expenditures will be 
  5.29  $65,093,000 in the first year and 
  5.30  $66,723,000 in the second year. 
  5.31  The legislature intends that state 
  5.32  appropriations be used to strengthen 
  5.33  and support education of students.  To 
  5.34  this end, all money appropriated in 
  5.35  this section, except that in direct 
  5.36  support of system office activities, 
  5.37  shall be allocated by the board 
  5.38  directly to the colleges and 
  5.39  universities. 
  5.40  During the biennium, neither the board 
  5.41  nor campuses shall plan or develop 
  5.42  doctoral level programs or degrees 
  5.43  until after they have received the 
  5.44  recommendation of the house and senate 
  5.45  committees on education, finance, and 
  5.46  ways and means. 
  5.47  This appropriation includes an increase 
  5.48  of $5,000,000 in each year for 
  5.49  customized training and leveraged 
  5.50  equipment purchases.  
  5.51  This appropriation includes money for 
  5.52  repair and replacement of 
  5.53  state-financed facilities, a degree 
  5.54  audit reporting system, technology 
  5.55  infrastructure, Y2K, virtual 
  5.56  university, and ISEEK. 
  5.57  This appropriation includes $5,000,000 
  6.1   per year for grants to historically 
  6.2   underfunded institutions demonstrating 
  6.3   financial distress.  Grants must not 
  6.4   exceed $500,000.  The money must be 
  6.5   spent in support of instructional 
  6.6   programs or student services.  By 
  6.7   December 31 of each year, the system 
  6.8   shall report to the chairs of the 
  6.9   higher education finance committees on 
  6.10  the distribution of the grants. 
  6.11  This appropriation includes money to 
  6.12  increase access to the farm and small 
  6.13  business management programs by 
  6.14  expanding the capacity of the programs 
  6.15  and providing additional tuition 
  6.16  subsidies. 
  6.17  This appropriation includes money for 
  6.18  the Center for Research and Innovation 
  6.19  at Bemidji State University. 
  6.20  This appropriation includes money for 
  6.21  start-up funding for a rural research 
  6.22  center at Southwest State University. 
  6.23  This appropriation includes money for 
  6.24  the agriculture program at the Staples 
  6.25  campus of the Central Lakes college. 
  6.26  Metropolitan State University may 
  6.27  retain any money saved from a reduction 
  6.28  in lease costs at the 730 Hennepin 
  6.29  Avenue South site. 
  6.30  During the biennium, technical and 
  6.31  consolidated colleges shall make use of 
  6.32  instructional advisory committees 
  6.33  consisting of employers, students, and 
  6.34  instructors.  The instructional 
  6.35  advisory committee shall be consulted 
  6.36  when a technical program is proposed to 
  6.37  be created, modified, or eliminated.  
  6.38  If a decision is made to eliminate a 
  6.39  program, a college shall adequately 
  6.40  notify students and make plans to 
  6.41  assist students affected by the closure.
  6.42  The system shall prepare a budget plan 
  6.43  for the system office.  The plan shall 
  6.44  include budgeted expenditures for each 
  6.45  major division or program of the system 
  6.46  office.  The plan also shall include a 
  6.47  review of the current functions, 
  6.48  services, and programs managed or 
  6.49  provided by the system office.  The 
  6.50  review shall describe the purpose of 
  6.51  these activities and their cost; 
  6.52  analyze whether they are necessary and 
  6.53  how they benefit the colleges and 
  6.54  universities; and identify unnecessary 
  6.55  duplication of programs and services 
  6.56  provided at the system and 
  6.57  institutional levels.  The board shall 
  6.58  report to the higher education finance 
  6.59  committees by February 15, 2000, on its 
  6.60  findings and articulate an 
  6.61  organizational plan for the system 
  6.62  office. 
  6.63  In each year, the board of trustees 
  7.1   shall increase the percentage of the 
  7.2   total general fund expenditures for 
  7.3   direct instruction and academic 
  7.4   support, as reported in the federal 
  7.5   Integrated Postsecondary Education Data 
  7.6   System (IPEDS).  By February 15 of 2000 
  7.7   and 2001, the board of trustees shall 
  7.8   report to the higher education finance 
  7.9   committees the percentage of total 
  7.10  general fund expenditures spent on 
  7.11  direct instruction and on academic 
  7.12  support during the previous fiscal year 
  7.13  by institution and for the system as a 
  7.14  whole. 
  7.15  Before commencing any new program not 
  7.16  specifically authorized by law for 
  7.17  teachers of color and urban teachers, 
  7.18  the board shall evaluate existing 
  7.19  programs and determine whether to 
  7.20  expand or modify an existing program or 
  7.21  create a new program. 
  7.22  The board may waive tuition for 
  7.23  eligible Southwest Asia veterans, as 
  7.24  provided in Minnesota Statutes, section 
  7.25  136F.28. 
  7.26  Notwithstanding Minnesota Statutes, 
  7.27  section 136F.71, subdivision 1, a state 
  7.28  college shall retain revenues in excess 
  7.29  of costs for delivering customized 
  7.30  training programs.  The excess revenues 
  7.31  shall be used for expanding and 
  7.32  developing customized training programs.
  7.33  Subd. 3.  Health Care and Human
  7.34  Services Tuition Waiver
  7.35         100,000        100,000 
  7.36  This appropriation is from the health 
  7.37  care access fund for the board of 
  7.38  trustees to provide tuition waivers to 
  7.39  employees of health care or human 
  7.40  services providers located in this 
  7.41  state that are members of qualifying 
  7.42  consortia operating under sections to 
  7.43  be codified as Minnesota Statutes, 
  7.44  sections 116L.10 to 116L.15, as 
  7.45  provided in article 11, sections 3 to 8 
  7.46  of S.F. No. 2225, the second 
  7.47  engrossment, if enacted.  The 
  7.48  legislature intends that future funding 
  7.49  for this program not come from higher 
  7.50  education appropriations. 
  7.51  Subd. 4.  Itasca Community College 
  7.52  The board of trustees of the Minnesota 
  7.53  state colleges and universities is 
  7.54  authorized to construct the following 
  7.55  facilities at Itasca community college: 
  7.56  (1) a two-classroom addition to be 
  7.57  located between the college center 
  7.58  building and Davies Hall.  The project 
  7.59  shall be paid for from lease revenue 
  7.60  supplied from nonstate sources; and (2) 
  7.61  an addition to the existing child care 
  7.62  center.  The project shall be paid for 
  7.63  from the appropriation in Laws 1997, 
  8.1   chapter 183, article 1, section 3, 
  8.2   subdivision 3, for pilot infant child 
  8.3   care programs and from matching money 
  8.4   from nonstate sources. 
  8.5   Subd. 5.  Winona State University Land
  8.6   Notwithstanding Minnesota Statutes, 
  8.7   sections 94.09 to 94.16, the board of 
  8.8   trustees may sell a parcel of Winona 
  8.9   State University land for no less than 
  8.10  its appraised value in a private sale 
  8.11  to resolve conflicting property 
  8.12  boundaries.  Money from the sale is 
  8.13  appropriated to the board to be 
  8.14  allocated to Winona State University. 
  8.15  Subd. 6.  Pine Technical College 
  8.16  The board may accept federal money for 
  8.17  and is authorized to construct an 
  8.18  advanced technology center building at 
  8.19  Pine technical college.  The 
  8.20  construction of the technology center 
  8.21  is contingent upon the receipt of the 
  8.22  federal money. 
  8.23  Sec. 4.  BOARD OF REGENTS OF THE 
  8.24  UNIVERSITY OF MINNESOTA 
  8.25  Subdivision 1.  Total
  8.26  Appropriation                        585,558,000    606,379,000
  8.27  The amounts that may be spent from this 
  8.28  appropriation for each purpose are 
  8.29  specified in the following subdivisions.
  8.30  Subd. 2.  Operations and
  8.31  Maintenance                          513,279,000    533,870,000
  8.32  Estimated Expenditures 
  8.33  and Appropriations 
  8.34  The legislature estimates that 
  8.35  instructional expenditures will be 
  8.36  $461,521,000 in the first year and 
  8.37  $484,679,000 in the second year. 
  8.38  The legislature estimates that 
  8.39  noninstructional expenditures will be 
  8.40  $202,367,000 in the first year and 
  8.41  $201,717,000 in the second year.  
  8.42  By January 30, 2000, the University 
  8.43  shall submit to the governor and the 
  8.44  legislature a master academic plan for 
  8.45  the Rochester region that clearly 
  8.46  defines the academic needs of the 
  8.47  region, short and long-term plans to 
  8.48  address those needs including the 
  8.49  designation of responsibility among the 
  8.50  partner institutions, short and 
  8.51  long-term demographic and enrollment 
  8.52  projections, physical plant capacity 
  8.53  and needs, and a delineation of 
  8.54  missions among the partner institutions 
  8.55  to avoid competition and duplication. 
  8.56  Notwithstanding Minnesota Statutes 
  8.57  1998, section 137.022, subdivision 4, 
  8.58  in fiscal year 2001 the first $200,000 
  9.1   of permanent university fund income 
  9.2   from royalties for mining under state 
  9.3   mineral leases designated for the 
  9.4   natural resources research institute 
  9.5   shall be allocated by the board of 
  9.6   regents to the department of landscape 
  9.7   architecture to develop a long-range 
  9.8   plan for the reclamation of taconite 
  9.9   mining lands.  The board shall allocate 
  9.10  the money only if an equal or greater 
  9.11  amount of matching money from nonstate 
  9.12  sources has been pledged to support the 
  9.13  project by June 30, 2000. 
  9.14  The University of Minnesota academic 
  9.15  health center, after consultation with 
  9.16  the health care community and medical 
  9.17  education and research costs advisory 
  9.18  committee, shall report by January 15, 
  9.19  2000, to the higher education finance 
  9.20  committees on the strategic direction 
  9.21  of its health professional programs.  
  9.22  The plans shall include a programmatic 
  9.23  and financial model for health 
  9.24  professional education that will meet 
  9.25  the state's future workforce needs, 
  9.26  maintain the integrity of the education 
  9.27  process, provide an appropriate level 
  9.28  of ongoing financial support, and 
  9.29  provide a framework for the health 
  9.30  community and academic health center to 
  9.31  work together in meeting the health 
  9.32  needs of the state.  The academic 
  9.33  health center is requested to provide 
  9.34  the report also to the commissioner of 
  9.35  health and the legislative commission 
  9.36  on health care access. 
  9.37  Subd. 3.  Health Care Access Fund 
  9.38  $2,837,000 each year is appropriated 
  9.39  from the health care access fund for 
  9.40  primary care education initiatives, 
  9.41  which is a one-time increase of 
  9.42  $300,000 each year over the base 
  9.43  funding. 
  9.44  Subd. 4.  Compulsive Gambling Research Funding 
  9.45  $250,000 from the lottery prize fund 
  9.46  shall be appropriated on a one-time 
  9.47  basis to the board of regents of the 
  9.48  University of Minnesota for the 
  9.49  academic health center to conduct 
  9.50  research, clinical work, treatment, or 
  9.51  teaching related to compulsive gambling 
  9.52  addiction. 
  9.53  Subd. 5.  Special
  9.54  Appropriation                         72,279,000     72,509,000
  9.55  The amounts expended for each program 
  9.56  in the four categories of special 
  9.57  appropriations shall be separately 
  9.58  identified in the 2001 biennial budget 
  9.59  document. 
  9.60  (a) Agriculture and Extension Service 
  9.61      57,588,000     57,588,000
 10.1   This appropriation is for the 
 10.2   Agricultural Experiment Station, 
 10.3   Minnesota Extension Service, regional 
 10.4   sustainable agriculture partnerships, 
 10.5   initiatives designed to sustain 
 10.6   Minnesota's renewable natural 
 10.7   resource-based industries, and for a 
 10.8   rapid agricultural response fund to 
 10.9   conduct research to solve problems 
 10.10  affecting agricultural products 
 10.11  including, but not limited to spring 
 10.12  wheat, barley, potatoes, grapes and 
 10.13  wine, canola, and turkeys. 
 10.14  Any salary increases granted by the 
 10.15  University to personnel paid from the 
 10.16  Minnesota Extension appropriation must 
 10.17  not result in a reduction of the county 
 10.18  responsibility for the salary payments. 
 10.19  During the biennium, the University 
 10.20  shall maintain an advisory council 
 10.21  system for each experiment station.  
 10.22  The advisory councils must be broadly 
 10.23  representative of range of size and 
 10.24  income distribution of farms and 
 10.25  agribusinesses and must not 
 10.26  disproportionately represent those from 
 10.27  the upper half of the size and income 
 10.28  distributions.  
 10.29  (b) Health Sciences 
 10.30       5,789,000      5,846,000
 10.31  This appropriation is for rural 
 10.32  physicians associates program, the 
 10.33  Veterinary Diagnostic Laboratory, 
 10.34  health sciences research, dental care, 
 10.35  and the Biomedical Engineering Center. 
 10.36  (c) Institute of Technology  
 10.37       1,600,000      1,645,000
 10.38  This appropriation is for the 
 10.39  Geological Survey and the Talented 
 10.40  Youth Mathematics Program. 
 10.41  (d) System Specials 
 10.42       7,302,000      7,430,000
 10.43  This appropriation is for general 
 10.44  research, student loans matching money, 
 10.45  industrial relations education, Natural 
 10.46  Resources Research Institute, Center 
 10.47  for Urban and Regional Affairs, Bell 
 10.48  Museum of Natural History, and the 
 10.49  Humphrey exhibit. 
 10.50  Sec. 5.  MAYO MEDICAL FOUNDATION 
 10.51  Subdivision 1.  Total
 10.52  Appropriation                           1,546,000       1,637,000
 10.53  The amounts that may be spent from this 
 10.54  appropriation for each purpose are 
 10.55  specified in the following subdivisions.
 10.56  Subd. 2.  Medical School
 11.1          554,000        605,000
 11.2   The state of Minnesota shall pay a 
 11.3   capitation of $13,200 in the first year 
 11.4   and $14,405 in the second year for each 
 11.5   student who is a resident of 
 11.6   Minnesota.  The appropriation may be 
 11.7   transferred between years of the 
 11.8   biennium to accommodate enrollment 
 11.9   fluctuations. 
 11.10  The legislature intends that during the 
 11.11  biennium the Mayo foundation use the 
 11.12  capitation money to increase the number 
 11.13  of doctors practicing in rural areas in 
 11.14  need of doctors.  
 11.15  Subd. 3.  Family Practice and
 11.16  Graduate Residency Program
 11.17         601,000        625,000
 11.18  The state of Minnesota provides a 
 11.19  capitation of $21,455 in the first year 
 11.20  and $22,315 in the second year for each 
 11.21  student.  The rural training program 
 11.22  capitation is $42,910 the first year 
 11.23  and $44,630 the second year for one 
 11.24  resident. 
 11.25  Subd. 4.  St. Cloud Hospital-Mayo 
 11.26  Family Practice Residency Program 
 11.27         391,000        407,000
 11.28  This appropriation is to the Mayo 
 11.29  foundation to support 12 resident 
 11.30  physicians each year in the St. Cloud 
 11.31  Hospital-Mayo Family Practice Residency 
 11.32  program.  The program shall prepare 
 11.33  doctors to practice primary care 
 11.34  medicine in the rural areas of the 
 11.35  state.  It is intended that this 
 11.36  program will improve health care in 
 11.37  rural communities, provide affordable 
 11.38  access to appropriate medical care, and 
 11.39  manage the treatment of patients in a 
 11.40  more cost-effective manner. 
 11.41                             ARTICLE 2 
 11.42                         RELATED PROVISIONS 
 11.43     Section 1.  Minnesota Statutes 1998, section 16B.465, 
 11.44  subdivision 4, is amended to read: 
 11.45     Subd. 4.  [PROGRAM PARTICIPATION.] (a) The commissioner may 
 11.46  require the participation of state agencies, and the state board 
 11.47  of education, and the board of trustees of the Minnesota state 
 11.48  colleges and universities and may request the participation of 
 11.49  the board of regents of the University of Minnesota and the 
 11.50  board of trustees of the Minnesota state colleges and 
 11.51  universities, in the planning and implementation of the network 
 12.1   to provide interconnective technologies.  The commissioner shall 
 12.2   establish reimbursement rates in cooperation with the 
 12.3   commissioner of finance to be billed to participating agencies 
 12.4   and educational institutions sufficient to cover the operating, 
 12.5   maintenance, and administrative costs of the system. 
 12.6      (b) A direct appropriation made to an educational 
 12.7   institution for usage costs associated with the state 
 12.8   information infrastructure must only be used by the educational 
 12.9   institution for payment of usage costs of the network as billed 
 12.10  by the commissioner of administration. 
 12.11     Sec. 2.  Minnesota Statutes 1998, section 135A.14, is 
 12.12  amended by adding a subdivision to read: 
 12.13     Subd. 6.  [HEPATITIS INFORMATION.] All public and private 
 12.14  post-secondary education institutions shall provide information 
 12.15  regarding the transmission, treatment, and prevention of 
 12.16  hepatitis A, B, and C, to all persons who are first-time 
 12.17  enrollees.  The department of health shall be consulted 
 12.18  regarding the preparation of these materials. 
 12.19     Sec. 3.  Minnesota Statutes 1998, section 135A.155, is 
 12.20  amended to read: 
 12.21     135A.155 [HAZING POLICY.] 
 12.22     The board of trustees of the Minnesota state colleges and 
 12.23  universities shall, and the University of Minnesota is requested 
 12.24  to, adopt a clear, understandable written policy on student 
 12.25  conduct, including hazing.  The policy must include procedures 
 12.26  for reporting incidents of inappropriate hazing and for 
 12.27  disciplinary actions against individual violators and 
 12.28  organizations.  The policy must be provided to students when 
 12.29  they register and must be shall be made available to students by 
 12.30  appropriate means as determined by each institution, which may 
 12.31  include publication in a student handbook or other institutional 
 12.32  publication, or posting by electronic display on the Internet, 
 12.33  and shall be posted at appropriate locations on campus.  A 
 12.34  private post-secondary institution that is an eligible 
 12.35  institution as defined in section 136A.101, subdivision 4, must 
 12.36  adopt a policy that meets the requirements of this section.  
 13.1      Sec. 4.  Minnesota Statutes 1998, section 136A.031, 
 13.2   subdivision 3, is amended to read: 
 13.3      Subd. 3.  [STUDENT ADVISORY COUNCIL.] A student advisory 
 13.4   council (SAC) to the higher education services council is 
 13.5   established.  The members of SAC shall include:  the chair of 
 13.6   the University of Minnesota student senate,; the state chair of 
 13.7   the Minnesota state university student association, the 
 13.8   president of the Minnesota community college student 
 13.9   association, the president of the Minnesota technical college 
 13.10  student association,; the president of the Minnesota state 
 13.11  college student association and an officer of the Minnesota 
 13.12  state college student association, one in a community college 
 13.13  course of study and one in a technical college course of study; 
 13.14  the president of the Minnesota association of private college 
 13.15  students,; and a student who is enrolled in a private vocational 
 13.16  school, to be appointed by the Minnesota association of private 
 13.17  post-secondary schools.  A member may be represented by a 
 13.18  student designee who attends an institution from the same system 
 13.19  that the absent member represents.  The SAC shall select one of 
 13.20  its members to serve as chair. 
 13.21     The higher education services council shall inform the SAC 
 13.22  of all matters related to student issues under consideration and 
 13.23  shall refer all proposals to the SAC before taking action or 
 13.24  sending the proposals to the governor or legislature.  The SAC 
 13.25  shall report to the higher education services council quarterly 
 13.26  and at other times that the SAC considers desirable.  The SAC 
 13.27  shall determine its meeting times, but it shall also meet with 
 13.28  the council within 30 days after the director's request for a 
 13.29  meeting. 
 13.30     The SAC shall: 
 13.31     (1) bring to the attention of the higher education services 
 13.32  council any matter that the SAC believes needs the attention of 
 13.33  the council; 
 13.34     (2) make recommendations to the higher education services 
 13.35  council as it finds appropriate; 
 13.36     (3) appoint student members to the higher education 
 14.1   services council advisory groups as provided in subdivision 4; 
 14.2   and 
 14.3      (4) provide any reasonable assistance to the council. 
 14.4      Sec. 5.  Minnesota Statutes 1998, section 136A.121, 
 14.5   subdivision 5, is amended to read: 
 14.6      Subd. 5.  [GRANT STIPENDS.] The grant stipend shall be 
 14.7   based on a sharing of responsibility for covering the recognized 
 14.8   cost of attendance by the applicant, the applicant's family, and 
 14.9   the government.  The amount of a financial stipend must not 
 14.10  exceed a grant applicant's recognized cost of attendance, as 
 14.11  defined in subdivision 6, after deducting the following:  
 14.12     (1) the assigned student responsibility of at least 47 46 
 14.13  percent of the cost of attending the institution of the 
 14.14  applicant's choosing; 
 14.15     (2) the assigned family responsibility as defined in 
 14.16  section 136A.101; and 
 14.17     (3) the amount of a federal Pell grant award for which the 
 14.18  grant applicant is eligible. 
 14.19     The minimum financial stipend is $300 $100 per academic 
 14.20  year. 
 14.21     Sec. 6.  [136A.1211] [USE OF STATE GRANT SAVINGS.] 
 14.22     Savings in the state grant program resulting from an 
 14.23  increase in the maximum federal Pell grant from the anticipated 
 14.24  level of $3,125 shall be used by the office to increase the 
 14.25  living and miscellaneous expense allowance. 
 14.26     Sec. 7.  Minnesota Statutes 1998, section 136A.125, 
 14.27  subdivision 4, is amended to read: 
 14.28     Subd. 4.  [AMOUNT AND LENGTH OF GRANTS.] The amount of a 
 14.29  child care grant must be based on: 
 14.30     (1) the income of the applicant and the applicant's spouse, 
 14.31  if any; 
 14.32     (2) the number in the applicant's family, as defined by the 
 14.33  office; and 
 14.34     (3) the number of eligible children in the applicant's 
 14.35  family.  
 14.36     The maximum award to the applicant shall be $2,000 for each 
 15.1   eligible child per academic year, except that the campus 
 15.2   financial aid officer may apply to the office for approval to 
 15.3   increase grants by up to ten percent to compensate for higher 
 15.4   market charges for infant care in a community.  The office shall 
 15.5   develop policies to determine community market costs and review 
 15.6   institutional requests for compensatory grant increases to 
 15.7   ensure need and equal treatment.  The office shall prepare a 
 15.8   chart to show the amount of a grant that will be awarded per 
 15.9   child based on the factors in this subdivision.  The chart shall 
 15.10  include a range of income and family size. 
 15.11     Sec. 8.  Minnesota Statutes 1998, section 136A.243, 
 15.12  subdivision 7, is amended to read: 
 15.13     Subd. 7.  [MARKETING.] The director shall make parents and 
 15.14  other interested individuals aware of the availability and 
 15.15  advantages of the program as a way to save for higher education 
 15.16  costs.  The cost of these promotional efforts must be paid 
 15.17  entirely from state general fund appropriations and may not be 
 15.18  funded with fees imposed on participants. 
 15.19     Sec. 9.  Minnesota Statutes 1998, section 136A.244, 
 15.20  subdivision 2, is amended to read: 
 15.21     Subd. 2.  [PERMITTED INVESTMENTS.] The board may invest the 
 15.22  accounts in any permitted investment under section 11A.24, 
 15.23  except that the accounts may be invested without limit in 
 15.24  investment options from open-ended investment companies 
 15.25  registered under the federal Investment Company Act of 1940, 
 15.26  United States Code, title 15, sections 80a-1 to 80a-64.  
 15.27     Sec. 10.  Minnesota Statutes 1998, section 136A.245, 
 15.28  subdivision 6, is amended to read: 
 15.29     Subd. 6.  [PRIVATE CONTRIBUTIONS.] (a) The office may 
 15.30  solicit and accept contributions from private corporations, 
 15.31  other businesses, foundations, employers, or individuals to 
 15.32  provide: 
 15.33     (1) matching grants under this section in addition to those 
 15.34  funded with direct appropriations; or 
 15.35     (2) grants to students who withdraw money from accounts 
 15.36  established under the program; or 
 16.1      (3) contributions to an account on behalf of a beneficiary. 
 16.2      (b) Amounts contributed may only be used for those 
 16.3   purposes.  Amounts contributed are appropriated to the director 
 16.4   to make grants for the purposes of this subdivision. 
 16.5      (c) Contributors may designate a specific field of study, 
 16.6   geographic area, or other criteria that govern use of the grants 
 16.7   funded with their contributions, but may not discriminate on the 
 16.8   basis of race, ethnicity, or gender.  The office may refuse 
 16.9   contributions that are subject, in the judgment of the director, 
 16.10  to unacceptable conditions on their use. 
 16.11     Sec. 11.  Minnesota Statutes 1998, section 136F.02, 
 16.12  subdivision 2, is amended to read: 
 16.13     Subd. 2.  [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 
 16.14  compensation, removal of members, and filling of vacancies on 
 16.15  the board are as provided in section 15.0575.  Members are 
 16.16  appointed for a term of six years, except that the term of each 
 16.17  of the student members is two years.  Terms end on June 30, 
 16.18  except that members may serve until their successors are 
 16.19  appointed. 
 16.20     Sec. 12.  Minnesota Statutes 1998, section 136F.04, 
 16.21  subdivision 1, is amended to read: 
 16.22     Subdivision 1.  [RESPONSIBILITY.] Notwithstanding section 
 16.23  136F.03, the statewide community college student association, 
 16.24  state university student association, and technical the state 
 16.25  college student association shall each have the responsibility 
 16.26  for recruiting, screening, and recommending qualified candidates 
 16.27  for its their student member members of the board. 
 16.28     Sec. 13.  Minnesota Statutes 1998, section 136F.22, 
 16.29  subdivision 1, is amended to read: 
 16.30     Subdivision 1.  [STATEWIDE.] The board shall recognize one 
 16.31  statewide student association for the community colleges, one 
 16.32  for the state universities, and one for the community and 
 16.33  technical colleges.  Each campus student association shall be 
 16.34  affiliated with its statewide student association and all 
 16.35  students enrolled on those campuses shall be members of their 
 16.36  respective statewide association. 
 17.1      Sec. 14.  Minnesota Statutes 1998, section 136F.32, 
 17.2   subdivision 2, is amended to read: 
 17.3      Subd. 2.  [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 
 17.4   (a) A technical college or consolidated technical community 
 17.5   college shall offer students the option of pursuing diplomas and 
 17.6   certificates in each technical education program, unless the 
 17.7   board determines that this is not practicable for certain 
 17.8   programs a degree is the only acceptable credential for career 
 17.9   entry in a specific field.  All vocational and technical credits 
 17.10  earned for a diploma or certificate shall be applicable toward 
 17.11  any available degree in the same program.  
 17.12     (b) Certificates and diplomas are credentials that 
 17.13  demonstrate competence in a vocational or technical area and, 
 17.14  therefore, may include a general education component only as 
 17.15  part of an articulation agreement or to meet occupational 
 17.16  requirements as established by the trade or profession, or by 
 17.17  the program advisory committee.  Students shall be provided with 
 17.18  applied training in general studies as necessary for competence 
 17.19  in the program area.  Students who have earned a certificate or 
 17.20  diploma may earn a degree in the same field if they complete the 
 17.21  general education and other degree requirements. 
 17.22     Sec. 15.  Minnesota Statutes 1998, section 136F.32, is 
 17.23  amended by adding a subdivision to read: 
 17.24     Subd. 3.  [ASSESSMENT.] To reduce barriers to enrollment 
 17.25  and to train a skilled workforce, students may be assessed for 
 17.26  skills necessary for competency in a technical or vocational 
 17.27  field as part of their program.  The results of standardized 
 17.28  assessment tests shall not prohibit enrollment in a student's 
 17.29  certificate or diploma program. 
 17.30     Sec. 16.  [137.17] [ROCHESTER BRANCH.] 
 17.31     Subdivision 1.  [ESTABLISH.] The board of regents may 
 17.32  establish a school of professional and graduate studies as a 
 17.33  nonresidential branch campus of the University of Minnesota, 
 17.34  Rochester, to serve the needs of working adults and other 
 17.35  nontraditional students in southeastern Minnesota.  The campus 
 17.36  shall be a joint partnership of the University of Minnesota with 
 18.1   Rochester community and technical college, and Winona state 
 18.2   university.  
 18.3      The board of trustees of the Minnesota state colleges and 
 18.4   universities shall cooperate to achieve the foregoing. 
 18.5      Subd. 2.  [LEADERSHIP.] The legislature intends that the 
 18.6   Rochester branch strengthen the existing partnership of 
 18.7   institutions in Rochester by providing better coordination and 
 18.8   leadership in serving the needs of the region, while maintaining 
 18.9   a cooperative basis among the institutions.  The University of 
 18.10  Minnesota is expected to take the leadership role in assessing 
 18.11  community needs and facilitating the delivery of upper division 
 18.12  and graduate academic programming and student services by 
 18.13  existing higher education providers.  It is the intent of the 
 18.14  legislature that this branch not diminish the role or function 
 18.15  of existing higher education institutions in Rochester or 
 18.16  elsewhere in the region in which the state already has a 
 18.17  significant investment. 
 18.18     Subd. 3.  [MISSIONS.] The legislature recognizes that the 
 18.19  distinctiveness of each of the partner institutions in Rochester 
 18.20  must be maintained to achieve success in serving the higher 
 18.21  education needs of the community and the economic goals of the 
 18.22  state.  Further, the legislature intends that the University of 
 18.23  Minnesota and the other partner institutions avoid duplicative 
 18.24  offerings of courses and programs.  Therefore, the University of 
 18.25  Minnesota, Winona state university, and Rochester community and 
 18.26  technical college shall develop jointly a statement of missions, 
 18.27  roles, and responsibilities for the programs and services at 
 18.28  Rochester which shall be submitted to the legislature by January 
 18.29  30, 2000, and any time thereafter that the missions, roles, and 
 18.30  responsibilities change. 
 18.31     Subd. 4.  [CHANGES.] Major changes in the missions, 
 18.32  programs, services or roles of the partner institutions shall be 
 18.33  made in full consultation with the partner institutions and the 
 18.34  systems. 
 18.35     Sec. 17.  Minnesota Statutes 1998, section 471.59, 
 18.36  subdivision 1, is amended to read: 
 19.1      Subdivision 1.  [AGREEMENT.] Two or more governmental 
 19.2   units, by agreement entered into through action of their 
 19.3   governing bodies, may jointly or cooperatively exercise any 
 19.4   power common to the contracting parties or any similar powers, 
 19.5   including those which are the same except for the territorial 
 19.6   limits within which they may be exercised.  The agreement may 
 19.7   provide for the exercise of such powers by one or more of the 
 19.8   participating governmental units on behalf of the other 
 19.9   participating units.  The term "governmental unit" as used in 
 19.10  this section includes every city, county, town, school district, 
 19.11  other political subdivision of this or another state, another 
 19.12  state, the University of Minnesota, and any agency of the state 
 19.13  of Minnesota or the United States, and includes any 
 19.14  instrumentality of a governmental unit.  For the purpose of this 
 19.15  section, an instrumentality of a governmental unit means an 
 19.16  instrumentality having independent policy making and 
 19.17  appropriating authority. 
 19.18     Sec. 18.  Minnesota Statutes 1998, section 583.22, 
 19.19  subdivision 5, is amended to read: 
 19.20     Subd. 5.  [DIRECTOR.] "Director" means the director of 
 19.21  the conflict and change center at the University of Minnesota's 
 19.22  Humphrey Institute Minnesota extension service or the director's 
 19.23  designee. 
 19.24     Sec. 19.  Laws 1986, chapter 398, article 1, section 18, as 
 19.25  amended by Laws 1987, chapter 292, section 37; Laws 1989, 
 19.26  chapter 350, article 16, section 8; Laws 1990, chapter 525, 
 19.27  section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 
 19.28  Special Session chapter 2, article 6, section 2; Laws 1995, 
 19.29  chapter 212, article 2, section 11; Laws 1997, chapter 183, 
 19.30  article 3, section 29; Laws 1998, chapter 395, section 7; and 
 19.31  Laws 1998, chapter 402, section 6, is amended to read: 
 19.32     Sec. 18.  [REPEALER.] 
 19.33     Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 
 19.34  subsections (6) and (7), and sections 583.284, 583.285, 583.286, 
 19.35  and 583.305, are repealed on July 1, 1999 2001. 
 19.36     Sec. 20.  [METRO PLAN AND SPACE UTILIZATION REPORT.] 
 20.1      By September 30, 1999, the board of trustees of the 
 20.2   Minnesota state colleges and universities shall submit to the 
 20.3   legislature the master academic plan for the metropolitan area 
 20.4   as required under Laws 1996, chapter 395, section 3, paragraph 
 20.5   (e), and a systemwide space utilization report. 
 20.6      Sec. 21.  [LEARNING NETWORK II.] 
 20.7      The Minnesota education telecommunications council, in 
 20.8   conjunction with the higher education advisory council, shall 
 20.9   develop a plan for the governance, financing, and implementation 
 20.10  of the learning network II.  The councils shall report on the 
 20.11  plan to the legislature by January 15, 2000. 
 20.12     Sec. 22.  [CHILD CARE STUDY.] 
 20.13     The commissioners of human services and children, families, 
 20.14  and learning shall review child care program requirements for 
 20.15  Minnesota family investment program participants, to determine 
 20.16  how to better serve those participants who are approved for a 
 20.17  work plan, but are attending school part time without child care 
 20.18  eligibility.  As soon as practicable, the commissioners shall 
 20.19  implement adjustments to program requirements that they deem 
 20.20  appropriate.  The commissioners shall report on adjustments 
 20.21  implemented, if any, and their recommendations for necessary 
 20.22  statutory changes to the appropriate committees of the 
 20.23  legislature by February 1, 2000. 
 20.24     Sec. 23.  [SHORT-TERM HEALTH CARE CURRICULA.] 
 20.25     By July 1, 2000, the board of trustees of the Minnesota 
 20.26  state colleges and universities, in consultation with relevant 
 20.27  industries, shall develop a short-term, competency-based, 
 20.28  standardized curricula in health care patient services and 
 20.29  community support services for persons with long-term care 
 20.30  needs.  The standardized curricula must provide knowledge that 
 20.31  is applicable to persons employed in a wide range of health care 
 20.32  settings and human services settings, including home health care 
 20.33  assistants, personal care assistants, and certified nursing 
 20.34  assistants.  By July 1, 2000, the board shall offer certificates 
 20.35  and two-year associate degrees that articulate into four-year 
 20.36  educational programs in health care services and in human 
 21.1   services.  The board shall report to the legislature by February 
 21.2   15, 2000, on its progress on implementing this section. 
 21.3      Sec. 24.  [REPEALER.] 
 21.4      Minnesota Statutes 1998, sections 136A.1359; and 136A.136, 
 21.5   are repealed June 30, 1999. 
 21.6      Sec. 25.  [EFFECTIVE DATE.] 
 21.7      (a) Section 1 is effective July 1, 2000. 
 21.8      (b) The change in the student share of the cost of 
 21.9   attendance under section 5 is effective July 1, 2000. 
 21.10     (c) Section 19 is effective the day following final 
 21.11  enactment. 
 21.12                             ARTICLE 3 
 21.13                       PRIVATE CAREER SCHOOLS 
 21.14     Section 1.  [141.20] [CITATION.] 
 21.15     Sections 141.20 to 141.35 may be cited as the Private 
 21.16  Career School Act. 
 21.17     Sec. 2.  Minnesota Statutes 1998, section 141.21, 
 21.18  subdivision 3, is amended to read: 
 21.19     Subd. 3.  [SOLICITOR.] "Solicitor" means a person who for a 
 21.20  salary or for commission, acts as an agent, independent 
 21.21  contractor, salesperson, or counselor in procuring or attempting 
 21.22  to procure recruiting students or enrollees for a course of 
 21.23  instruction by solicitation in program using any form made 
 21.24  method, at any place except on the actual business premises of 
 21.25  the school and except for rendering, other than only providing 
 21.26  public information service at the invitation or permission of a 
 21.27  school or educational organization.  
 21.28     Sec. 3.  Minnesota Statutes 1998, section 141.21, 
 21.29  subdivision 5, is amended to read: 
 21.30     Subd. 5.  [SCHOOL.] "School" means any person, within or 
 21.31  without outside the state, that who maintains, advertises, 
 21.32  solicits, or conducts any course of instruction program for 
 21.33  profit or for a tuition charge at any level other than 
 21.34  baccalaureate or graduate programs, and which is not 
 21.35  specifically exempted by the provisions of sections 141.21 to 
 21.36  141.36 141.35.  
 22.1      Sec. 4.  Minnesota Statutes 1998, section 141.21, 
 22.2   subdivision 6, is amended to read: 
 22.3      Subd. 6.  [COURSE OF INSTRUCTION.] "Course of instruction" 
 22.4   means any classroom, correspondence, or extension course of or 
 22.5   distance instruction; any subunit of a program; or any 
 22.6   combination thereof.  
 22.7      Sec. 5.  Minnesota Statutes 1998, section 141.21, is 
 22.8   amended by adding a subdivision to read: 
 22.9      Subd. 8.  [PROGRAM.] "Program" means any course or grouping 
 22.10  of courses that is advertised or listed in a school's catalog, 
 22.11  brochures, electronic display, or other publications, or for 
 22.12  which the school grants a formal recognition. 
 22.13     Sec. 6.  Minnesota Statutes 1998, section 141.21, is 
 22.14  amended by adding a subdivision to read: 
 22.15     Subd. 9.  [DISTANCE EDUCATION SCHOOL.] "Distance education 
 22.16  school" means a school that establishes, keeps, or maintains a 
 22.17  facility or location where a program is offered through distance 
 22.18  instruction. 
 22.19     Sec. 7.  Minnesota Statutes 1998, section 141.21, is 
 22.20  amended by adding a subdivision to read: 
 22.21     Subd. 10.  [DISTANCE INSTRUCTION.] "Distance instruction" 
 22.22  means any method of instruction outside the traditional 
 22.23  in-classroom instruction, including, but not limited to, the use 
 22.24  of the United States mail and other correspondence; Internet and 
 22.25  other online computer-based education; or CD-ROM 
 22.26  self-instruction. 
 22.27     Sec. 8.  Minnesota Statutes 1998, section 141.21, is 
 22.28  amended by adding a subdivision to read: 
 22.29     Subd. 11.  [ELECTRONIC DISPLAY.] "Electronic display" means 
 22.30  text, images, or sound rendered via any electronic device 
 22.31  designed to present information, whether generated by the device 
 22.32  or transmitted from another source. 
 22.33     Sec. 9.  Minnesota Statutes 1998, section 141.25, 
 22.34  subdivision 1, is amended to read: 
 22.35     Subdivision 1.  [REQUIRED.] No A school shall must not 
 22.36  maintain, advertise, solicit for, or conduct any course of 
 23.1   instruction program in Minnesota without first obtaining a 
 23.2   license from the office.  
 23.3      Sec. 10.  Minnesota Statutes 1998, section 141.25, 
 23.4   subdivision 2, is amended to read: 
 23.5      Subd. 2.  [CONTRACT UNENFORCEABLE.] Any A contract entered 
 23.6   into with any a person for a course of instruction after 
 23.7   November 15, 1969, program by or on behalf of any a person 
 23.8   operating any a school to which a license has not been 
 23.9   issued pursuant to under sections 141.21 to 141.36 
 23.10  141.35, shall be is unenforceable in any action brought 
 23.11  thereon.  
 23.12     Sec. 11.  Minnesota Statutes 1998, section 141.25, 
 23.13  subdivision 3, is amended to read: 
 23.14     Subd. 3.  [APPLICATION.] Application for a license shall be 
 23.15  on forms prepared and furnished by the office, and shall contain 
 23.16  include the following and such other information as the office 
 23.17  may require: 
 23.18     (a) (1) the title or name of the school, together with 
 23.19  ownership and controlling officers, members, managing employees, 
 23.20  and director; 
 23.21     (b) (2) the specific fields of instruction programs which 
 23.22  will be offered and the specific purposes of such the 
 23.23  instruction; 
 23.24     (c) (3) the place or places where such the instruction will 
 23.25  be given; 
 23.26     (d) (4) a listing of the equipment available for 
 23.27  instruction in each course of instruction program; 
 23.28     (e) (5) the maximum enrollment to be accommodated with 
 23.29  equipment available in each specified course of instruction 
 23.30  program; 
 23.31     (f) (6) the qualifications of instructors and supervisors 
 23.32  in each specified course of instruction program; 
 23.33     (g) (7) a current balance sheet, income statement, and 
 23.34  adequate supporting documentation, prepared and certified by an 
 23.35  independent public accountant or CPA; 
 23.36     (h) (8) copies of all media advertising and promotional 
 24.1   literature and brochures or electronic display currently used or 
 24.2   reasonably expected to be used by such the school; 
 24.3      (i) (9) copies of all Minnesota enrollment agreement forms 
 24.4   and contract forms and all enrollment agreement forms and 
 24.5   contract forms used in Minnesota; and 
 24.6      (10) gross income earned in the preceding year from student 
 24.7   tuition, fees, and other required institutional charges, unless 
 24.8   the school files with the office a surety bond equal to at least 
 24.9   $50,000 as described in subdivision 5.  
 24.10     Sec. 12.  Minnesota Statutes 1998, section 141.25, 
 24.11  subdivision 5, is amended to read: 
 24.12     Subd. 5.  [BOND.] (a) No license shall be issued to any 
 24.13  school which maintains, conducts, solicits for, or advertises 
 24.14  within the state of Minnesota any course of instruction program, 
 24.15  unless the applicant files with the office a continuous 
 24.16  corporate surety bond in the sum of $10,000 written by a company 
 24.17  authorized to do business in Minnesota conditioned upon the 
 24.18  faithful performance of all contracts and agreements with 
 24.19  students made by the applicant.  Such 
 24.20     (b) The amount of the surety bond shall be ten percent of 
 24.21  the preceding year's gross income from student tuition, fees, 
 24.22  and other required institutional charges, but in no event less 
 24.23  than $10,000 nor greater than $50,000, except that a school may 
 24.24  deposit a greater amount at its own discretion.  A school in 
 24.25  each annual application for licensure must compute the amount of 
 24.26  the surety bond and verify that the amount of the surety bond 
 24.27  complies with this subdivision, unless the school maintains a 
 24.28  surety bond equal to at least $50,000.  A school that operates 
 24.29  at two or more locations may combine gross income from student 
 24.30  tuition, fees, and other required institutional charges for all 
 24.31  locations for the purpose of determining the annual surety bond 
 24.32  requirement.  The gross tuition and fees used to determine the 
 24.33  amount of the surety bond required for a school having a license 
 24.34  for the sole purpose of recruiting students in Minnesota shall 
 24.35  be only that paid to the school by the students recruited from 
 24.36  Minnesota. 
 25.1      (c) The bond shall run to the state of Minnesota and to any 
 25.2   person who may have a cause of action against the applicant 
 25.3   arising at any time after the bond is filed and before it is 
 25.4   canceled for breach of any contract or agreement made by the 
 25.5   applicant with any student.  The aggregate liability of the 
 25.6   surety for all breaches of the conditions of the bond shall not 
 25.7   exceed the principal sum of $10,000 deposited by the school 
 25.8   under paragraph (b).  The surety of any such bond may cancel it 
 25.9   upon giving 60 days' notice in writing to the office and shall 
 25.10  be relieved of liability for any breach of condition occurring 
 25.11  after the effective date of cancellation. 
 25.12     (d) In lieu of bond, the applicant may deposit with the 
 25.13  state treasurer the a sum of $10,000 equal to the amount of the 
 25.14  required surety bond in cash, or securities such as may be 
 25.15  legally purchased by savings banks or for trust funds in an 
 25.16  aggregate market value of $10,000 equal to the amount of the 
 25.17  required surety bond.  
 25.18     (e) Failure of a school to post and maintain the required 
 25.19  surety bond or deposit under paragraph (d) may result in denial, 
 25.20  suspension, or revocation of the school's license.  
 25.21     Sec. 13.  Minnesota Statutes 1998, section 141.25, 
 25.22  subdivision 6, is amended to read: 
 25.23     Subd. 6.  [RESIDENT AGENT.] Schools domiciled located 
 25.24  outside the state of Minnesota which that offer, advertise, 
 25.25  solicit for, or conduct any course of instruction program within 
 25.26  the state of Minnesota shall first file with the secretary of 
 25.27  state a sworn statement designating a resident agent authorized 
 25.28  to receive service of process.  Such The statement shall 
 25.29  designate the secretary of state as resident agent for service 
 25.30  of process in the absence of an a designated agent otherwise so 
 25.31  designated.  In the event If a school fails to file such the 
 25.32  statement, the secretary of state is hereby designated as the 
 25.33  resident agent authorized to receive service of process.  Such 
 25.34  The authorization shall be irrevocable as to causes of action 
 25.35  arising out of transactions occurring prior to the filing of 
 25.36  written notice of withdrawal from the state of Minnesota filed 
 26.1   with the secretary of state.  
 26.2      Sec. 14.  Minnesota Statutes 1998, section 141.25, 
 26.3   subdivision 7, is amended to read: 
 26.4      Subd. 7.  [MINIMUM STANDARDS.] No A license shall be issued 
 26.5   unless if the office first determines: 
 26.6      (a) (1) that the applicant has a sound financial condition 
 26.7   with sufficient resources available to: 
 26.8      (i) meet the school's financial obligations; to 
 26.9      (ii) refund all tuition and other charges, within a 
 26.10  reasonable period of time, in the event of dissolution of the 
 26.11  school or in the event of any justifiable claims for refund 
 26.12  against the school by the student body; to 
 26.13     (iii) provide adequate service to its students and 
 26.14  prospective students; and for the proper use 
 26.15     (iv) maintain and support of the school to be maintained; 
 26.16     (b) (2) that the applicant has satisfactory training 
 26.17  facilities with sufficient tools and equipment and the necessary 
 26.18  number of work stations to train prepare adequately the students 
 26.19  currently enrolled, and those proposed to be enrolled; 
 26.20     (c) (3) that the applicant employs a sufficient number of 
 26.21  qualified instructors trained by experience and education 
 26.22  teaching personnel to give provide the training educational 
 26.23  programs contemplated; 
 26.24     (d) (4) that the school has an organizational framework 
 26.25  with administrative and instructional personnel to provide the 
 26.26  programs and services it intends to offer; 
 26.27     (5) that the premises and conditions under which the 
 26.28  students work and study are sanitary, healthful, and safe, 
 26.29  according to modern standards; 
 26.30     (e) (6) that the quality and content of each occupational 
 26.31  course or program of instruction or study shall be of such 
 26.32  quality and content as to provide provides education and 
 26.33  training which will adequately prepare adequate preparation to 
 26.34  enrolled students for entry level positions in the occupation 
 26.35  for which trained prepared; 
 26.36     (f) (7) that the living quarters which are owned, 
 27.1   maintained, or approved by the applicant for students are 
 27.2   sanitary and safe; 
 27.3      (g) (8) that the contract or enrollment agreement used by 
 27.4   the school complies with the following provisions: in section 
 27.5   141.265; 
 27.6      (1) the name and address of the school must be clearly 
 27.7   stated; 
 27.8      (2) inclusion of a clear and conspicuous disclosure that 
 27.9   such agreement becomes a legally binding instrument upon written 
 27.10  acceptance of the student by the school unless canceled pursuant 
 27.11  to section 141.271; 
 27.12     (3) must contain the school's cancellation and refund 
 27.13  policy which shall be clearly and conspicuously entitled, 
 27.14  "Buyer's Right to Cancel"; 
 27.15     (4) the total cost of the course including tuition and all 
 27.16  other charges shall be clearly stated; 
 27.17     (5) the name and description of the course, including the 
 27.18  number of hours or credits of classroom instruction and/or home 
 27.19  study lessons shall be included; 
 27.20     (6) no contract or agreement shall (9) that contracts and 
 27.21  agreements do not contain a wage assignment provision and/or or 
 27.22  a confession of judgment clause; and 
 27.23     (7) each contract or enrollment agreement shall contain a 
 27.24  clear and conspicuous explanation of the form and means of 
 27.25  notice the student should use in the event the student elects to 
 27.26  cancel the contract or sale, the effective date of cancellation, 
 27.27  and the name and address of the seller to which the notice 
 27.28  should be sent or delivered; and 
 27.29     (h) (10) that there has been no adjudication of fraud or 
 27.30  misrepresentation in any criminal, civil, or administrative 
 27.31  proceeding in any jurisdiction against the school or its owner, 
 27.32  officers, agents, or sponsoring organization.  
 27.33     Sec. 15.  Minnesota Statutes 1998, section 141.25, 
 27.34  subdivision 8, is amended to read: 
 27.35     Subd. 8.  [FEES AND TERMS OF LICENSE.] (a) Applications An 
 27.36  application for an initial license under sections 141.21 
 28.1   to 141.36 141.35 shall be accompanied by a nonrefundable 
 28.2   application fee established by the office that is sufficient to 
 28.3   recover, but not exceed, its administrative costs. 
 28.4      (b) All licenses shall expire one year from the date issued 
 28.5   by the office, except as provided in section 141.251.  Each 
 28.6   renewal application shall be accompanied by a nonrefundable 
 28.7   renewal fee established by the office that is sufficient to 
 28.8   recover, but does not exceed, its administrative costs.  
 28.9      (c) Application for renewal of license shall be made at 
 28.10  least 30 days before the expiration of the school's current 
 28.11  license.  Each renewal form shall be supplied by the office.  It 
 28.12  shall not be necessary for an applicant to supply all 
 28.13  information required in the initial application at the time of 
 28.14  renewal unless requested by the office.  
 28.15     Sec. 16.  Minnesota Statutes 1998, section 141.25, 
 28.16  subdivision 9, is amended to read: 
 28.17     Subd. 9.  [CATALOG OR, BROCHURE, OR ELECTRONIC DISPLAY.] 
 28.18  Before a license is issued to a school, other than one which 
 28.19  offers exclusively a correspondence course of instruction, the 
 28.20  school shall furnish to the office a catalog or, brochure 
 28.21  containing the following, or electronic display including: 
 28.22     (1) identifying data, such as volume number and date of 
 28.23  publication; 
 28.24     (2) name and address of the school and its governing body 
 28.25  and officials; 
 28.26     (3) a calendar of the school showing legal holidays, 
 28.27  beginning and ending dates of each course quarter, term, or 
 28.28  semester, and other important dates; 
 28.29     (4) the school policy and regulations on enrollment 
 28.30  including dates and specific entrance requirements for 
 28.31  each course program; 
 28.32     (5) the school policy and regulations about leave, 
 28.33  absences, class cuts, make-up work, tardiness, and interruptions 
 28.34  for unsatisfactory attendance; 
 28.35     (6) the school policy and regulations about standards of 
 28.36  progress for the student including the grading system of the 
 29.1   school, the minimum grades considered satisfactory, conditions 
 29.2   for interruption for unsatisfactory grades or progress, a 
 29.3   description of any probationary period allowed by the school, 
 29.4   and conditions of reentrance for those dismissed for 
 29.5   unsatisfactory progress; 
 29.6      (7) the school policy and regulations about student conduct 
 29.7   and conditions for dismissal for unsatisfactory conduct; 
 29.8      (8) a detailed schedule of fees, charges for tuition, 
 29.9   books, supplies, tools, student activities, laboratory fees, 
 29.10  service charges, rentals, deposits, and all other charges; 
 29.11     (9) the school policy and regulations, including an 
 29.12  explanation of section 141.271, about refunding tuition, fees, 
 29.13  and other charges if the student does not enter the course 
 29.14  program, withdraws from the program, or the program is 
 29.15  discontinued; 
 29.16     (10) a description of the available facilities and 
 29.17  equipment; 
 29.18     (11) a course outline for each course offered showing 
 29.19  course objectives, subjects or units in the course, type of work 
 29.20  or skill to be learned, and approximate time, hours, or credits 
 29.21  to be spent on each subject or unit; and 
 29.22     (12) the school policy and regulations about granting 
 29.23  credit for previous education and training preparation; 
 29.24     (13) a procedure for investigating and resolving student 
 29.25  complaints; and 
 29.26     (14) the name and address of the Minnesota higher education 
 29.27  services office. 
 29.28     A school that is exclusively a distance education school is 
 29.29  exempt from clauses (3) and (5). 
 29.30     Sec. 17.  Minnesota Statutes 1998, section 141.25, 
 29.31  subdivision 10, is amended to read: 
 29.32     Subd. 10.  [PLACEMENT RECORDS.] (a) Before a license is 
 29.33  issued to a school that offers, advertises or implies a 
 29.34  placement service, the school shall file with the office for the 
 29.35  past year and thereafter at reasonable intervals determined by 
 29.36  the office, a certified copy of the school's placement record, 
 30.1   containing a list of graduates, a description of their job jobs, 
 30.2   name names of their employer employers, and other information as 
 30.3   the office may prescribe.  
 30.4      (b) Each school that offers a placement service shall 
 30.5   furnish to each prospective student, prior to enrollment, 
 30.6   written information concerning the percentage of the previous 
 30.7   year's graduates who were placed in the occupation for which 
 30.8   trained prepared or in related employment. 
 30.9      Sec. 18.  Minnesota Statutes 1998, section 141.25, 
 30.10  subdivision 12, is amended to read: 
 30.11     Subd. 12.  [PERMANENT RECORDS.] Before a license is issued 
 30.12  to a school, each A school licensed under this chapter and 
 30.13  located in Minnesota shall maintain a permanent records record 
 30.14  for all students enrolled at any time each student for 50 years 
 30.15  from the last date of the student's attendance.  Each A school 
 30.16  licensed under this chapter and offering a correspondence course 
 30.17  of instruction distance instruction to a student located in 
 30.18  Minnesota shall maintain a permanent records record for each 
 30.19  Minnesota students enrolled at any time student for 50 years 
 30.20  from the last date of the student's attendance.  Records include 
 30.21  school transcripts, documents, and files containing student data 
 30.22  about academic credits earned, courses completed, grades 
 30.23  awarded, degrees awarded, and periods of attendance.  To 
 30.24  preserve permanent records, a school shall submit a plan that 
 30.25  meets the following requirements: 
 30.26     (a) (1) at least one copy of the records must be held in a 
 30.27  secure depository; 
 30.28     (b) (2) an appropriate official must be designated to 
 30.29  provide a student with copies of records or a transcript upon 
 30.30  request; 
 30.31     (c) (3) an alternative method of complying with paragraphs 
 30.32  (a) and (b) clauses (1) and (2) must be established if the 
 30.33  school ceases to exist; and 
 30.34     (d) (4) a continuous surety bond must be filed with the 
 30.35  office in an amount not to exceed $20,000 if the school has no 
 30.36  binding agreement for preserving student records or a trust must 
 31.1   be arranged if the school ceases to exist. 
 31.2      Sec. 19.  [141.251] [LICENSE RENEWAL.] 
 31.3      Subdivision 1.  [APPLICATION.] Application for renewal of a 
 31.4   license must be made at least 30 days before expiration of the 
 31.5   current license on a form provided by the office.  A renewal 
 31.6   application shall be accompanied by a nonrefundable fee 
 31.7   established by the office that is sufficient to recover, but 
 31.8   does not exceed, its administrative costs. 
 31.9      Subd. 2.  [CONDITIONS.] The office shall adopt rules 
 31.10  establishing the conditions for renewal of a license.  The 
 31.11  conditions shall permit two levels of renewal based on the 
 31.12  record of the school.  A school that has demonstrated the 
 31.13  quality of its program and operation through longevity and 
 31.14  performance in the state may renew its license based on a 
 31.15  relaxed standard of scrutiny.  A school that has been in 
 31.16  operation in Minnesota for a limited period of time or that has 
 31.17  not performed adequately on performance indicators shall renew 
 31.18  its license based on a strict standard of scrutiny.  The office 
 31.19  shall specify minimum longevity standards and performance 
 31.20  indicators that must be met before a school may be permitted to 
 31.21  operate under the relaxed standard of scrutiny.  The performance 
 31.22  indicators used in this determination shall include, but not be 
 31.23  limited to:  degree granting status, national accreditation, 
 31.24  loan default rates, placement rate of graduates, student 
 31.25  withdrawal rates, audit results, student complaints, and school 
 31.26  status with the United States Department of Education.  Schools 
 31.27  that meet the requirements established in rule shall be required 
 31.28  to submit a full relicensure report once every four years, and 
 31.29  in the interim years will be exempt from the requirements of 
 31.30  section 141.25, subdivision 3, clauses (4), (5), and (8), and 
 31.31  Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, 
 31.32  subpart 4. 
 31.33     Sec. 20.  Minnesota Statutes 1998, section 141.26, 
 31.34  subdivision 2, is amended to read: 
 31.35     Subd. 2.  [APPLICATION FOR PERMIT.] (a) The application for 
 31.36  the permit shall state the full name, address, previous 
 32.1   employment, and such other information concerning the solicitor 
 32.2   applicant as the office may require.  
 32.3      (b) The application shall have attached to it a certified 
 32.4   affidavit signed by a school official and the solicitor 
 32.5   attesting to the fact that the applicant has been furnished a 
 32.6   copy, has read and has knowledge of the provisions of this 
 32.7   chapter and Minnesota Rules, parts 3530.6500 to 3530.7800.  
 32.8      Sec. 21.  [141.265] [INFORMATION TO STUDENTS.] 
 32.9      Subdivision 1.  [CATALOG, BROCHURE, OR ELECTRONIC DISPLAY.] 
 32.10  A school or its agent must provide the catalog, brochure, or 
 32.11  electronic display required in section 141.25, subdivision 9, to 
 32.12  a prospective student in a time or manner that gives the 
 32.13  prospective student at least five days to read the catalog, 
 32.14  brochure, or electronic display before signing a contract or 
 32.15  enrollment agreement or before being accepted by a school that 
 32.16  does not use a written contract or enrollment agreement. 
 32.17     Subd. 2.  [CONTRACT INFORMATION.] A contract or enrollment 
 32.18  agreement used by a school must include at least the following: 
 32.19     (1) the name and address of the school, clearly stated; 
 32.20     (2) a clear and conspicuous disclosure that the agreement 
 32.21  is a legally binding instrument upon written acceptance of the 
 32.22  student by the school unless canceled under section 141.271; 
 32.23     (3) the school's cancellation and refund policy that shall 
 32.24  be clearly and conspicuously entitled "Buyer's Right to Cancel"; 
 32.25     (4) a clear statement of total cost of the program 
 32.26  including tuition and all other charges; 
 32.27     (5) the name and description of the program, including the 
 32.28  number of hours or credits of classroom instruction, or distance 
 32.29  instruction, that shall be included; and 
 32.30     (6) a clear and conspicuous explanation of the form and 
 32.31  means of notice the student should use in the event the student 
 32.32  elects to cancel the contract or sale, the effective date of 
 32.33  cancellation, and the name and address of the seller to which 
 32.34  the notice should be sent or delivered. 
 32.35     Subd. 3.  [CONTRACT COPIES.] Immediately upon signing of 
 32.36  the enrollment agreement or the contract by a prospective 
 33.1   student, the school or agent shall furnish to the prospective 
 33.2   student an exact duplicate copy of the enrollment agreement or 
 33.3   contract.  
 33.4      Sec. 22.  Minnesota Statutes 1998, section 141.271, 
 33.5   subdivision 1, is amended to read: 
 33.6      Subdivision 1.  [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT 
 33.7   TO REFUND STUDENT.] For the purposes of this section, "student" 
 33.8   means the party to the contract, whether the party is the 
 33.9   student, the student's parent or guardian, or other person on 
 33.10  behalf of the student. 
 33.11     Subd. 1a.  [NOTICE; RIGHT TO REFUND.] Every school shall 
 33.12  notify each student, in writing, of acceptance or rejection.  In 
 33.13  the event that the student is rejected by the school, all 
 33.14  tuition, fees and other charges shall be refunded.  
 33.15     Sec. 23.  Minnesota Statutes 1998, section 141.271, 
 33.16  subdivision 2, is amended to read: 
 33.17     Subd. 2.  [SCHOOLS USING WRITTEN CONTRACTS.] (a) 
 33.18  Notwithstanding anything to the contrary, every a school which 
 33.19  utilizes that uses a written contract or enrollment agreement 
 33.20  shall refund all tuition, fees and other charges paid by a 
 33.21  student, if the student gives written notice of cancellation 
 33.22  within five business days after the day on which the contract 
 33.23  was executed regardless of whether the course of instruction 
 33.24  program has started.  
 33.25     (b) With respect to those schools utilizing a written 
 33.26  contract or enrollment agreement, When a student has been 
 33.27  accepted by the school and has entered into a contractual 
 33.28  agreement with the school and gives written notice of 
 33.29  cancellation following the fifth business day after the date of 
 33.30  execution of contract, but before the start of the course of 
 33.31  instruction program in the case of resident schools, or before 
 33.32  the first lesson has been serviced by the school in the case of 
 33.33  correspondence (home study) distance education schools, all 
 33.34  tuition, fees and other charges, except 15 percent of the total 
 33.35  cost of the course program but not to exceed $50, shall be 
 33.36  refunded to the student. 
 34.1      Sec. 24.  Minnesota Statutes 1998, section 141.271, 
 34.2   subdivision 3, is amended to read: 
 34.3      Subd. 3.  [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 
 34.4   Notwithstanding anything to the contrary, every a school which 
 34.5   that does not utilize use a written contract or enrollment 
 34.6   agreement shall refund all tuition, fees and other charges paid 
 34.7   by a student if the student gives written notice of cancellation 
 34.8   within five business days after the day on which the student is 
 34.9   accepted by the school regardless of whether the course of 
 34.10  instruction program has started. 
 34.11     (b) With respect to those schools not utilizing a written 
 34.12  contract or enrollment agreement, When a student has been 
 34.13  accepted by the school and gives written notice of cancellation 
 34.14  following the fifth business day after the day of acceptance by 
 34.15  the school, but before the start of the course of 
 34.16  instruction program, in the case of resident schools, or before 
 34.17  the first lesson has been serviced by the school, in the case of 
 34.18  correspondence (home study) distance education schools, all 
 34.19  tuition, fees and other charges, except 15 percent of the total 
 34.20  cost of the course program but not to exceed $50, shall be 
 34.21  refunded to the student. 
 34.22     Sec. 25.  Minnesota Statutes 1998, section 141.271, 
 34.23  subdivision 4, is amended to read: 
 34.24     Subd. 4.  [RESIDENT SCHOOLS.] With respect to all schools 
 34.25  offering a resident course of instruction, When a student has 
 34.26  been accepted by the a school offering a resident program and 
 34.27  gives written notice of cancellation after the start of the 
 34.28  period of instruction for which the student has been charged, 
 34.29  but before completion of 75 percent of the period of instruction 
 34.30  for which the student has been charged, the amount charged for 
 34.31  tuition, fees, and all other charges for the completed portion 
 34.32  of the period of instruction for which the student has been 
 34.33  charged shall not exceed the pro rata be prorated as a portion 
 34.34  of the total charges for tuition, fees, and all other charges 
 34.35  that the length of the completed portion of the period of 
 34.36  instruction for which the student has been charged bears to its 
 35.1   total length, plus.  An additional 25 percent of the total cost 
 35.2   of the period of instruction for which the student has been 
 35.3   charged may be added, but shall not to exceed $100.  After 
 35.4   completion of 75 percent of the period of instruction for which 
 35.5   the student has been charged, no refunds are required.  
 35.6      Sec. 26.  Minnesota Statutes 1998, section 141.271, 
 35.7   subdivision 5, is amended to read: 
 35.8      Subd. 5.  [CORRESPONDENCE HOME STUDY DISTANCE EDUCATION 
 35.9   SCHOOLS.] With respect to all schools offering a correspondence 
 35.10  (home study) course of instruction, When a student has been 
 35.11  accepted by the a distance education school and gives written 
 35.12  notice of cancellation after the first lesson has been completed 
 35.13  by the student and serviced by the school, but before completion 
 35.14  of 75 percent of the course of instruction program, the amount 
 35.15  charged for tuition, fees and all other charges for the 
 35.16  completed lessons shall not exceed the pro rata be prorated as a 
 35.17  portion of the total charges for tuition, fees and all other 
 35.18  charges that the number of lessons completed by the student 
 35.19  bears to the total number of lessons offered, plus.  An 
 35.20  additional 25 percent of the total cost of the course program 
 35.21  may be added but shall not to exceed $75.  After completion of 
 35.22  75 percent of the course of instruction program, no refunds are 
 35.23  required.  
 35.24     Sec. 27.  Minnesota Statutes 1998, section 141.271, 
 35.25  subdivision 6, is amended to read: 
 35.26     Subd. 6.  [COMBINATION CORRESPONDENCE-RESIDENT DISTANCE 
 35.27  EDUCATION-RESIDENT SCHOOLS.] With respect to all schools 
 35.28  offering a combination correspondence (home study)-resident 
 35.29  course of instruction, When a student has been accepted by the a 
 35.30  school that offers a combination distance education-resident 
 35.31  program and gives written notice of cancellation after the start 
 35.32  of the course of instruction program or after the first lesson 
 35.33  has been completed by the student and serviced by the school, 
 35.34  whichever phase comes first, the school shall refund all 
 35.35  tuition, fees and other charges as provided for in subdivision 4 
 35.36  if cancellation occurs during the resident portion, and as 
 36.1   provided for in subdivision 5 if cancellation occurs during 
 36.2   the correspondence distance instruction portion; provided 
 36.3   that,.  If the cancellation occurs before the student has 
 36.4   commenced one of the phases, the price of that phase shall not 
 36.5   be considered in making the proration and the student shall be 
 36.6   entitled to a full refund of the price thereof charges.  
 36.7   Conversely, if the student has completed a phase of the course 
 36.8   program before cancellation, the price thereof charges may be 
 36.9   retained by the school provided that the total tuition, fees and 
 36.10  other charges for each phase have been stated separately in the 
 36.11  school's catalog or electronic display and contract or 
 36.12  enrollment agreement.  
 36.13     Sec. 28.  Minnesota Statutes 1998, section 141.271, 
 36.14  subdivision 12, is amended to read: 
 36.15     Subd. 12.  [INSTRUMENT NOT TO BE NEGOTIATED.] No A school 
 36.16  shall not negotiate any promissory instrument received as 
 36.17  payment of tuition or other charge prior to completion of 50 
 36.18  percent of the course of instruction program.  Prior to such 
 36.19  that time, such instruments may be transferred by assignment to 
 36.20  purchasers who shall be subject to all defenses available 
 36.21  against the school named as payee.  
 36.22     Sec. 29.  Minnesota Statutes 1998, section 141.28, 
 36.23  subdivision 3, is amended to read: 
 36.24     Subd. 3.  [FALSE STATEMENTS.] No A school, agent, or 
 36.25  solicitor shall not make, or cause to be made, any statement or 
 36.26  representation, oral, written or visual, in connection with the 
 36.27  offering or publicizing of a course program, if such the school, 
 36.28  agent, or solicitor knows or reasonably should have known the 
 36.29  statement or representation to be false, fraudulent, deceptive, 
 36.30  substantially inaccurate, or misleading.  
 36.31     Sec. 30.  Minnesota Statutes 1998, section 141.28, 
 36.32  subdivision 5, is amended to read: 
 36.33     Subd. 5.  [IMPROBABLE COURSE PROGRAM COMPLETION OR 
 36.34  EMPLOYMENT.] No A school, agent, or solicitor shall not enroll a 
 36.35  prospective student when it is obvious that the prospective 
 36.36  student is unlikely to successfully complete a course of 
 37.1   instruction program or is unlikely to qualify for employment in 
 37.2   the vocation or field for which the training preparation is 
 37.3   designed unless this fact is affirmatively disclosed to the 
 37.4   prospective student.  If a prospective student expresses a 
 37.5   desire to enroll after such disclosure, a disclaimer may be 
 37.6   obtained by the school.  Such The disclaimer shall be signed by 
 37.7   the student and shall state substantially as follows one or both 
 37.8   of the following:  "I am fully aware that it is unlikely I will 
 37.9   be able to successfully complete the course of instruction 
 37.10  program" and/or and "I am fully aware of the improbability or 
 37.11  impossibility that I will qualify for employment in the vocation 
 37.12  or field for which the course program was designed."  
 37.13     Sec. 31.  Minnesota Statutes 1998, section 141.29, 
 37.14  subdivision 1, is amended to read: 
 37.15     Subdivision 1.  [GROUNDS.] The office may, after notice and 
 37.16  upon providing an opportunity for a hearing, pursuant to under 
 37.17  chapter 14 if requested by the parties adversely affected, 
 37.18  refuse to issue, refuse to renew, revoke, or suspend any a 
 37.19  license or solicitor's permit for any one or any combination of 
 37.20  the following grounds: 
 37.21     (a) (1) violation of any provisions of sections 141.21 to 
 37.22  141.36 141.35 or any rule promulgated adopted by the office; 
 37.23     (b) (2) furnishing to the office false, misleading, or 
 37.24  incomplete information; 
 37.25     (c) (3) presenting to prospective students information 
 37.26  relating to the school which that is false, fraudulent, 
 37.27  deceptive, substantially inaccurate, or misleading; 
 37.28     (d) (4) refusal to allow reasonable inspection or supply 
 37.29  reasonable information after written request therefor by the 
 37.30  office; 
 37.31     (e) (5) the existence of any circumstance which that would 
 37.32  be grounds for the refusal of an initial or renewal license 
 37.33  under section 141.25.  
 37.34     Sec. 32.  Minnesota Statutes 1998, section 141.31, is 
 37.35  amended to read: 
 37.36     141.31 [INJUNCTION.] 
 38.1      Upon application of the attorney general the district 
 38.2   courts shall have jurisdiction to enjoin any violation of 
 38.3   sections 141.21 to 141.36 141.35.  
 38.4      Sec. 33.  Minnesota Statutes 1998, section 141.32, is 
 38.5   amended to read: 
 38.6      141.32 [PENALTY.] 
 38.7      Violation of any provisions a provision of this chapter 
 38.8   shall be a misdemeanor.  Each day's failure to comply with this 
 38.9   chapter shall be a separate violation.  The office shall adopt 
 38.10  rules establishing a list of civil penalties and the fine 
 38.11  associated with each violation.  Fines for violations shall not 
 38.12  exceed $500 per day per violation.  
 38.13     Sec. 34.  Minnesota Statutes 1998, section 141.35, is 
 38.14  amended to read: 
 38.15     141.35 [EXEMPTIONS.] 
 38.16     None of the provisions of Sections 141.21 to 141.36 141.35 
 38.17  shall not apply to the following: 
 38.18     (a) (1) colleges authorized by the laws of Minnesota or of 
 38.19  any other state or foreign country to grant degrees public 
 38.20  post-secondary institutions; 
 38.21     (2) private post-secondary institutions registered under 
 38.22  sections 136A.61 to 136A.71 that are nonprofit, or that are for 
 38.23  profit and registered under sections 136A.61 to 136A.71 as of 
 38.24  December 31, 1998, or are approved to offer exclusively 
 38.25  baccalaureate or postbaccalaureate programs; 
 38.26     (b) (3) schools of nursing accredited by the state board of 
 38.27  nursing or an equivalent public board of another state or 
 38.28  foreign country; 
 38.29     (c) public schools as defined in section 120A.05, 
 38.30  subdivisions 9, 11, 13, and 17; 
 38.31     (d) (4) private schools complying with the requirements of 
 38.32  section 120A.22, subdivision 2 4; 
 38.33     (e) private and parochial nonprofit schools exempt from 
 38.34  taxation under the constitution of Minnesota; 
 38.35     (f) (5) courses taught to students in a valid 
 38.36  apprenticeship program taught by or required by a trade union; 
 39.1      (g) (6) schools exclusively engaged in training physically 
 39.2   or mentally handicapped persons for the state of Minnesota; 
 39.3      (h) (7) schools now or hereafter licensed by boards 
 39.4   authorized under Minnesota law to issue such licenses; 
 39.5      (i) (8) schools and educational programs, or training 
 39.6   programs, conducted contracted for by persons, firms, 
 39.7   corporations, government agencies, or associations, for the 
 39.8   training of their own employees, for which no fee is charged the 
 39.9   employee; 
 39.10     (j) (9) schools engaged exclusively in the teaching of 
 39.11  purely avocational, recreational, or remedial subjects as 
 39.12  determined by the office.  Private schools teaching a method or 
 39.13  procedure to increase the speed with which a student reads are 
 39.14  not within this exemption; 
 39.15     (k) (10) driver training schools and instructors as defined 
 39.16  in section 171.33, subdivisions 1 and 2; 
 39.17     (l) (11) classes, courses, or programs conducted by a bona 
 39.18  fide trade, professional, or fraternal organization, solely for 
 39.19  that organization's membership; 
 39.20     (m) courses of instruction (12) programs in the fine arts 
 39.21  provided by organizations exempt from taxation pursuant to under 
 39.22  section 290.05 and registered with the attorney general pursuant 
 39.23  to under chapter 309.  For the purposes of this clause, "fine 
 39.24  arts" means activities resulting in artistic creation or 
 39.25  artistic performance of works of the imagination which are 
 39.26  engaged in for the primary purpose of creative expression rather 
 39.27  than commercial sale or employment. In making this determination 
 39.28  the office may seek the advice and recommendation of the 
 39.29  Minnesota board of the arts; 
 39.30     (n) (13) classes, courses, or programs intended to fulfill 
 39.31  the continuing education requirements for licensure or 
 39.32  certification in a profession, which classes, courses, or 
 39.33  programs that have been approved by a legislatively or 
 39.34  judicially established board or agency responsible for 
 39.35  regulating the practice of the profession, and which that are 
 39.36  offered primarily to a person who currently practices an 
 40.1   individual practicing the profession; 
 40.2      (o) (14) classes, courses, or programs intended to prepare 
 40.3   students to sit for undergraduate, graduate, postgraduate, or 
 40.4   occupational licensing and occupational entrance examinations; 
 40.5      (p) (15) classes, courses, or programs of a seminar nature 
 40.6   providing 16 or fewer clock hours of instruction that are not 
 40.7   part of the curriculum for an occupation or are not intended to 
 40.8   prepare a person for entry level employment; 
 40.9      (q) (16) classes, courses, or programs of a seminar nature 
 40.10  providing instruction in personal development, modeling, or 
 40.11  acting; and 
 40.12     (r) (17) training or instructional programs, in which one 
 40.13  instructor teaches an individual student, that are not part of 
 40.14  the curriculum for an occupation or are not intended to prepare 
 40.15  a person for entry level employment; and 
 40.16     (18) schools with no physical presence in Minnesota engaged 
 40.17  exclusively in offering distance instruction that are located in 
 40.18  and regulated by other states or jurisdictions.  
 40.19     Sec. 35.  [REPORT REQUIRED.] 
 40.20     (a) The higher education services office shall conduct a 
 40.21  study of the licensure and regulation of private, for-profit 
 40.22  education and training providers in Minnesota and make 
 40.23  recommendations to the legislature regarding: 
 40.24     (1) the appropriate level of regulation of providers of 
 40.25  accelerated custom-designed training courses or programs; and 
 40.26     (2) changes in statutes or rules necessary to reflect the 
 40.27  increased availability of courses and programs offered through 
 40.28  electronic means and the use of the Internet to communicate 
 40.29  information regarding courses and programs. 
 40.30     (b) The recommendations submitted shall: 
 40.31     (1) identify and define terminology associated with 
 40.32  accelerated custom-designed training opportunities; 
 40.33     (2) delineate the minimum standards providers must meet; 
 40.34     (3) delineate the procedures providers must follow to 
 40.35  validate that they have met the standards established; and 
 40.36     (4) specify the providers' contractual and financial 
 41.1   obligations to individuals participating in the training 
 41.2   provided by the providers. 
 41.3      (c) In developing its recommendations, the office shall 
 41.4   consult with the Minnesota High Technology Association and 
 41.5   providers that may be affected by changes in the statutes or 
 41.6   rules.  A report of the findings and recommendations shall be 
 41.7   submitted to the chairs of the senate higher education budget 
 41.8   division and the house higher education finance committee by 
 41.9   January 15, 2000. 
 41.10     Sec. 36.  [REPEALER.] 
 41.11     Minnesota Statutes 1998, sections 141.22; 141.25, 
 41.12  subdivisions 9a, 9b, and 11; and 141.36, are repealed.