1.1 	A bill for an act
1.2 	relating to higher education; allocating money for
1.3 	educational and related purposes with certain
1.4 	conditions; modifying various loan, grant, and
1.5 	financial aid provisions; requiring institutions to
1.6 	provide certain data; permitting disclosure of certain
1.7 	data to determine eligibility; amending various
1.8 	reciprocity provisions; providing definitions;
1.9 	directing the Board of Trustees to designate centers
1.10 	of excellence; amending the Minnesota college savings
1.11 	plan; authorizing transfer of certain bonding
1.12 	authority; amending provisions related to private
1.13 	career schools; establishing fees; providing for
1.14 	merger with the Higher Education Facilities Authority;
1.15 	establishing the Rochester University Development
1.16 	Committee; appropriating money; amending Minnesota
1.17 	Statutes 2004, sections 13.46, subdivision 2;
1.18 	135A.031, subdivisions 3, 4; 135A.052, subdivision 1;
1.19 	135A.30, subdivisions 3, 4, 5; 135A.52, subdivisions
1.20 	1, 2; 136A.01, subdivision 2; 136A.031, subdivisions
1.21 	2, 3, 4; 136A.08, by adding subdivisions; 136A.121,
1.22 	subdivisions 2, 5, 6, 9, by adding a subdivision;
1.23 	136A.125, subdivision 2; 136A.1701, by adding
1.24 	subdivisions; 136F.04, subdivision 4; 136F.32,
1.25 	subdivision 2; 136G.03, subdivisions 3, 21a, 22, 32;
1.26 	136G.05, subdivision 8; 136G.09, subdivisions 11, 12;
1.27 	136G.11, subdivisions 1, 2, 3, 13; 136G.13,
1.28 	subdivisions 1, 5; 136G.14; 137.0245, subdivisions 1,
1.29 	2, 4; 141.21, by adding a subdivision; 141.25,
1.30 	subdivisions 3, 5, 8, 9, 12; 141.251; 141.26,
1.31 	subdivision 5; 141.271, subdivisions 4, 7, 10, by
1.32 	adding subdivisions; 141.28, subdivision 1, by adding
1.33 	a subdivision; 141.29, subdivision 3; 141.30; 141.35;
1.34 	192.502, subdivision 1; 299A.45, subdivisions 1, 4;
1.35 	proposing coding for new law in Minnesota Statutes,
1.36 	chapters 136A; 137; 141; repealing Minnesota Statutes
1.37 	2004, sections 136A.011; 136A.031, subdivision 1;
1.38 	Minnesota Rules, parts 4815.0100; 4815.0110;
1.39 	4815.0120; 4815.0130; 4815.0140; 4815.0150; 4815.0160;
1.40 	4830.8100; 4830.8110; 4830.8120; 4830.8130; 4830.8140;
1.41 	4830.8150.
1.42 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.43 	ARTICLE 1
2.1 	APPROPRIATIONS

2.2 	Section 1. Higher education appropriations.
2.3 	The sums in the columns marked "APPROPRIATIONS" are appropriated
2.4 	from the general fund, or other named fund, to the agencies and
2.5 	for the purposes specified in this article.  The listing of an
2.6 	amount under the figure "2006" or "2007" in this article
2.7 	indicates that the amount is appropriated to be available for
2.8 	the fiscal year ending June 30, 2006, or June 30, 2007,
2.9 	respectively.  "The first year" is fiscal year 2006.  "The
2.10 	second year" is fiscal year 2007.  "The biennium" is fiscal
2.11 	years 2006 and 2007.
2.12 	SUMMARY BY FUND
2.13 	2006          2007           TOTAL
2.14 	General           $1,363,389,000 $1,387,079,000 $2,750,468,000
2.15 	Health Care
2.16 	Access                  2,157,000      2,157,000      4,314,000
2.17 	SUMMARY BY AGENCY - ALL FUNDS
2.18 	2006          2007           TOTAL
2.19 	Higher Education
2.20 	Services Office       167,662,000    179,952,000    347,614,000
2.21 	Board of Trustees
2.22 	of the Minnesota State
2.23 	Colleges and
2.24 	Universities          597,769,000    599,894,000  1,197,663,000
2.25 	Board of Regents
2.26 	of the University
2.27 	of Minnesota          598,724,000    607,999,000  1,206,723,000
2.28 	Mayo Medical
2.29 	Foundation              1,391,000      1,391,000      2,782,000
2.30 	APPROPRIATIONS
2.31 	                                       Available for the Year
2.32 	                                           Ending June 30
2.33 	                                          2006         2007

2.34 	Sec. 2. HIGHER EDUCATION
2.35 	SERVICES OFFICE
 2.36 		Subdivision 1.Total
2.37 	Appropriation                     $  167,662,000 $  179,952,000
2.38 	The amounts that may be spent from this
2.39 	appropriation for each purpose are
2.40 	specified in the following subdivisions.
2.41 		Subd. 2.State Grants               132,775,000    148,375,000
2.42 	If the appropriation in this
2.43 	subdivision for either year is
2.44 	insufficient, the appropriation for the
2.45 	other year is available for it.  For
3.1 	the biennium, the tuition and fee
3.2 	maximum shall be $9,477 in the first
3.3 	year and $9,998 in the second year for
3.4 	students enrolled in four-year programs
3.5 	and $4,316 in the first year and $4,597
3.6 	in the second year for students
3.7 	enrolled in two-year programs.
3.8 	This appropriation sets the living and
3.9 	miscellaneous expense allowance at
3.10 	$5,205 in each year.
3.11 	This appropriation contains money to
3.12 	provide educational benefits to
3.13 	dependent children under age 23 and the
3.14 	spouses of public safety officers
3.15 	killed in the line of duty under
3.16 	Minnesota Statutes 2004, section
3.17 	299A.45.
3.18 		Subd. 3.Interstate Tuition
3.19 	Reciprocity                            1,000,000      1,000,000
3.20 	If the appropriation in this
3.21 	subdivision for either year is
3.22 	insufficient, the appropriation for the
3.23 	other year is available to meet
3.24 	reciprocity contract obligations.
3.25 		Subd. 4.State Work Study            12,444,000     12,444,000
3.26 		Subd. 5.Child Care Grants            4,743,000      4,743,000
3.27 		Subd. 6.Minitex                      4,381,000      4,381,000
3.28 		Subd. 7.MnLINK Gateway                 400,000        400,000
3.29 		Subd. 8.Learning Network
3.30 	of Minnesota                           4,329,000      4,329,000
3.31 		Subd. 9.Minnesota College
3.32 	Savings Plan                           1,120,000      1,120,000
3.33 		Subd. 10.Other Small
3.34 	Programs                                 664,000        664,000
3.35 	This appropriation includes funding for
3.36 	Postsecondary Service Learning, Student
3.37 	and Parent Information, Get Ready
3.38 	Outreach, and Intervention for College
3.39 	Access.
3.40 	Of this appropriation, $100,000 each
3.41 	year is for grants to increase
3.42 	campus-community collaboration and
3.43 	service learning statewide.  For each
3.44 	$1 in state funding, grant recipients
3.45 	must contribute $2 in campus or
3.46 	community-based support.
3.47 		Subd. 11.Agency
3.48 	Administration                         2,606,000      2,496,000
3.49 	$100,000 in the first year and $300,000
3.50 	in the second year is for the Higher
3.51 	Education Services Office to develop
3.52 	and implement a process to measure and
3.53 	report on the effectiveness of
3.54 	postsecondary institutions in the
3.55 	state.  The funding base for this
3.56 	initiative in fiscal years 2008 and
4.1 	2009 is $300,000 per year.
4.2 	$310,000 in the first year is for the
4.3 	Higher Education Services Office to
4.4 	upgrade computer program application
4.5 	software related to state grant
4.6 	awards.  This appropriation does not
4.7 	cancel but is available until
4.8 	expended.  This is a onetime
4.9 	appropriation and is not added to the
4.10 	agency's base.
4.11 	Subd. 12.  Balances Forward
4.12 	A balance in the first year under this
4.13 	section does not cancel, but is
4.14 	available for the second year.
4.15 	Subd. 13.  Transfers
4.16 	The Higher Education Services Office
4.17 	may transfer unencumbered balances from
4.18 	the appropriations in this section to
4.19 	the state grant appropriation, the
4.20 	interstate tuition reciprocity
4.21 	appropriation, the child care
4.22 	appropriation, and the state work study
4.23 	appropriation.
4.24 	Subd. 14.  Reporting
4.25 	The Higher Education Services Office
4.26 	shall collect data monthly from
4.27 	institutions disbursing state financial
4.28 	aid.  The data collected must include,
4.29 	but is not limited to, expenditures by
4.30 	type to date and unexpended balances.
4.31 	The Higher Education Services Office
4.32 	must evaluate and report quarterly
4.33 	state financial aid expenditures and
4.34 	unexpended balances to the chairs of
4.35 	the Higher Education Finances
4.36 	Committees of the senate and house of
4.37 	representatives and the commissioner of
4.38 	finance.  By November 1 and February
4.39 	15, the Higher Education Services
4.40 	Office must provide updated state grant
4.41 	spending projections taking into
4.42 	account the most current and projected
4.43 	enrollment and tuition and fee
4.44 	information, economic conditions, and
4.45 	other relevant factors.  Before
4.46 	submitting state grant spending
4.47 	projections, the Higher Education
4.48 	Services Office must meet and consult
4.49 	with representatives of public and
4.50 	private postsecondary education, the
4.51 	Department of Finance, Governor's
4.52 	Office, legislative staff, and
4.53 	financial aid administrators.
4.54 		Subd. 15.Rochester University                       3,200,000
4.55 	$200,000 is for implementation and
4.56 	planning activities for a university in
4.57 	Rochester under article 4, section 1.
4.58 	This is a onetime appropriation.
4.59 	$3,000,000 is a onetime appropriation
4.60 	for deposit into the Rochester
4.61 	University development account under
5.1 	article 4, section 2 for the
5.2 	implementation and development purposes
5.3 	of article 4, section 3.  The Higher
5.4 	Education Services Office must approve
5.5 	the use of the money in the development
5.6 	account.
5.7 	This appropriation is available until
5.8 	June 30, 2009, except that any portion
5.9 	used for an endowment under article 4,
5.10 	section 1, does not cancel but is
5.11 	available until spent.

5.12 	Sec. 3. BOARD OF TRUSTEES OF THE MINNESOTA
5.13 	STATE COLLEGES AND UNIVERSITIES
 5.14 		Subdivision 1.Total
5.15 	Appropriation                        597,769,000    599,894,000
5.16 	The amounts that may be spent from this
5.17 	appropriation for each purpose are
5.18 	specified in the following subdivisions.
5.19 	The legislature estimates that
5.20 	instructional expenditures will be
5.21 	$808,777,000 in the first year and
5.22 	$811,653,000 in the second year.  The
5.23 	legislature estimates that
5.24 	noninstructional expenditures will be
5.25 	$58,581,000 in the first year and
5.26 	$58,790,000 in the second year.
5.27 		Subd. 2.General Appropriation      585,669,000    583,094,000
5.28 	$2,500,000 the first year and
5.29 	$2,500,000 the second year are to
5.30 	develop additional courses for the
5.31 	Minnesota online program.
5.32 	$4,800,000 the first year and
5.33 	$5,200,000 the second year are for the
5.34 	board to increase its capacity for
5.35 	training nurses.
5.36 	$1,500,000 each year is for the board
5.37 	to address the management education
5.38 	needs of farm and small business owners.
5.39 		Subd. 3.Centers of Excellence        7,500,000      7,500,000
5.40 	This appropriation requires the board
5.41 	to spend $2,000,000 from the central
5.42 	reserves of the Minnesota State
5.43 	Colleges and Universities in the
5.44 	biennium ending June 30, 2007, on
5.45 	administrative expenses of the office
5.46 	of the chancellor related to the
5.47 	implementation of the centers of
5.48 	excellence under this subdivision.
5.49 	The board must develop a process to
5.50 	designate centers of excellence.  The
5.51 	center designations may be made for the
5.52 	fields of manufacturing technology,
5.53 	science and engineering, health care,
5.54 	information technology, business, and
5.55 	teacher education.  A center of
5.56 	excellence must include no more than
5.57 	one state university working with up to
5.58 	two community and technical colleges.
6.1 	The board must select programs for
6.2 	centers of excellence based on a
6.3 	demonstration of:  (1) a comprehensive
6.4 	academic plan with a continuum of
6.5 	academic offerings and credentials in
6.6 	the program area; (2) a development
6.7 	plan with a goal of achieving
6.8 	continuous improvement leading to
6.9 	national recognition; (3) financial and
6.10 	programmatic commitments from employers
6.11 	who will benefit from the development
6.12 	of a center; and (4) an institutional
6.13 	commitment of support and assurance
6.14 	that designated funding will not
6.15 	supplant current budgets.  A center of
6.16 	excellence may create an advisory
6.17 	committee representing local,
6.18 	statewide, and national leaders in the
6.19 	field.
6.20 	By January 15 of each odd-numbered
6.21 	year, each designated center must
6.22 	report to the Board of Trustees.  The
6.23 	Board of Trustees must then report on
6.24 	the centers of excellence to the
6.25 	governor and the chairs of the
6.26 	committees in the legislature with
6.27 	responsibility for higher education
6.28 	finance on program outcomes, including
6.29 	the use of any funds made available by
6.30 	a legislative appropriation for
6.31 	incentive payments to faculty or staff.
6.32 		Subd. 4.Competitive Salaries         4,600,000      9,300,000
6.33 	For the board to make incentive
6.34 	payments to faculty or staff for
6.35 	initiatives that promote excellence in
6.36 	student learning.  To the extent
6.37 	practicable, the board must make
6.38 	payments under this paragraph available
6.39 	first to faculty or staff associated
6.40 	with a designated center of excellence.

6.41 	Sec. 4. BOARD OF REGENTS OF THE
6.42 	UNIVERSITY OF MINNESOTA
 6.43 		Subdivision 1.Total
6.44 	Appropriation                        598,724,000    607,999,000
6.45 	The amounts that may be spent from this
6.46 	appropriation for each purpose are
6.47 	specified in the following subdivisions.
6.48 		Subd. 2.Operations and
6.49 	Maintenance                          518,200,000    542,475,000
6.50 	The legislature estimates that
6.51 	instructional expenditures will be
6.52 	$456,371,000 in the first year and
6.53 	$463,467,000 in the second year.  The
6.54 	legislature estimates that
6.55 	noninstructional expenditures will be
6.56 	$292,318,000 in the first year and
6.57 	$296,863,000 in the second year.
6.58 	$17,775,000 the second year is for
6.59 	academic initiatives that are part of
6.60 	the board's biosciences for a healthy
6.61 	society initiative.
7.1 	$5,000,000 the first year and
7.2 	$10,000,000 the second year is to award
7.3 	faculty compensation increases
7.4 	differentially.
7.5 	$20,000,000 the first year and
7.6 	$15,000,000 the second year is for
7.7 	research support.  The funding base for
7.8 	this initiative in fiscal years 2008
7.9 	and 2009 is $15,000,000 per year.
7.10 	$6,500,000 the first year and
7.11 	$13,000,000 the second year is for
7.12 	initiatives to attract and retain
7.13 	students.
7.14 	$15,000,000 the first year is for the
7.15 	direct and indirect expenses of the
7.16 	collaborative research partnership
7.17 	between the University of Minnesota and
7.18 	the Mayo Foundation for research in
7.19 	biotechnology and medical genomics.
7.20 	This is a onetime appropriation.  The
7.21 	Board of Regents must submit an annual
7.22 	report on the expenditure of these
7.23 	funds to the governor and the chairs of
7.24 	senate Higher Education Budget
7.25 	Division; the house Higher Education
7.26 	Finance Committee; the senate
7.27 	Environment, Agriculture and Economic
7.28 	Development Budget Division; and the
7.29 	house Jobs and Economic Opportunity
7.30 	Policy and Finance Committee by June 30
7.31 	of each fiscal year until the research
7.32 	funding is expended.
7.33 		Subd. 2a.Base Funding
7.34 	The university's base for fiscal years
7.35 	2008 and 2009 shall be increased by
7.36 	$6,250,000 each year.
7.37 		Subd. 3.Health Care Access Fund      2,157,000      2,157,000
7.38 	This appropriation is from the health
7.39 	care access fund and is for primary
7.40 	care education initiatives.
7.41 		Subd. 4.Special
7.42 	Appropriation                         63,367,000     63,367,000
7.43 	(a) Agriculture and Extension Service
7.44 	50,625,000     50,625,000
7.45 	For the Agricultural Experiment
7.46 	Station, Minnesota Extension Service.
7.47 	(b) Health Sciences
7.48 	4,929,000      4,929,000
7.49 	For the rural physicians associates
7.50 	program, the Veterinary Diagnostic
7.51 	Laboratory, health sciences research,
7.52 	dental care, and the Biomedical
7.53 	Engineering Center.
7.54 	(c) Institute of Technology
7.55 	1,387,000      1,387,000
8.1 	For the Geological Survey and the
8.2 	Talented Youth Mathematics Program.
8.3 	(d) System Specials
8.4 	6,426,000      6,426,000
8.5 	For general research, student loans
8.6 	matching money, industrial relations
8.7 	education, Natural Resources Research
8.8 	Institute, Center for Urban and
8.9 	Regional Affairs, Bell Museum of
8.10 	Natural History, and the Humphrey
8.11 	exhibit.
8.12 		Subd. 5.Academic Health Center
8.13 	The appropriation to the Academic
8.14 	Health Center under Minnesota Statutes,
8.15 	section 297F.10, is anticipated to be
8.16 	$20,890,000 in the first year and
8.17 	$20,474,000 in the second year.
8.18 		Subd. 6.Deaf Students
8.19 	The Board of Regents is encouraged to
8.20 	provide the same benefit to any
8.21 	Minnesota resident student who
8.22 	graduates from the Minnesota State
8.23 	Academy for the Deaf as the Board
8.24 	provides to students who graduate from
8.25 	the Minnesota State Academy for the
8.26 	Blind under Minnesota Statutes, section
8.27 	248.03.  To be eligible for this
8.28 	benefit, the student must comply with
8.29 	all requirements of the University of
8.30 	Minnesota.
8.31 		Subd. 7.Mineral Research Account
8.32 	Notwithstanding Minnesota Statutes,
8.33 	section 137.022, subdivision 4,
8.34 	$250,000 of the funds which would be
8.35 	credited to the mineral research
8.36 	account is appropriated to the Board of
8.37 	Regents for drilling a 5,000 foot core
8.38 	sampling bore hole at the Tower-Soudan
8.39 	mine complex in support of a National
8.40 	Science Foundation grant.

8.41 	Sec. 5. MAYO MEDICAL FOUNDATION
 8.42 		Subdivision 1.Total
8.43 	Appropriation                          1,391,000      1,391,000
8.44 	The amounts that may be spent from this
8.45 	appropriation for each purpose are
8.46 	specified in the following subdivisions.
8.47 		Subd. 2.Medical School                 514,000        514,000
8.48 	The state of Minnesota must pay a
8.49 	capitation each year for each student
8.50 	who is a resident of Minnesota.  The
8.51 	appropriation may be transferred
8.52 	between years of the biennium to
8.53 	accommodate enrollment fluctuations.
8.54 	It is intended that during the biennium
8.55 	the Mayo Foundation use the capitation
8.56 	money to increase the number of doctors
9.1 	practicing in rural areas in need of
9.2 	doctors.
9.3 		Subd. 3.Family Practice and
9.4 	Graduate Residency Program               531,000        531,000
9.5 	The state of Minnesota must pay a
9.6 	capitation of up to 27 residents each
9.7 	year.
9.8 		Subd. 4.St. Cloud Hospital-Mayo Family
9.9 	Practice Residency Program
9.10 	346,000        346,000
9.11 	This appropriation is to the Mayo
9.12 	Foundation to support 12 resident
9.13 	physicians each year in the St. Cloud
9.14 	Hospital-Mayo family practice residency
9.15 	program.  The program must prepare
9.16 	doctors to practice primary care
9.17 	medicine in the rural areas of the
9.18 	state.  It is intended that this
9.19 	program will improve health care in
9.20 	rural communities, provide affordable
9.21 	access to appropriate medical care, and
9.22 	manage the treatment of patients in a
9.23 	more cost-effective manner.

9.24 	ARTICLE 2
9.25 	RELATED PROVISIONS

9.26 	Section 1. Minnesota Statutes 2004, section 13.46,
9.27 	subdivision 2, is amended to read:
9.28 		Subd. 2.General.  (a) Unless the data is summary data or
9.29 	a statute specifically provides a different classification, data
9.30 	on individuals collected, maintained, used, or disseminated by
9.31 	the welfare system is private data on individuals, and shall not
9.32 	be disclosed except:
9.33 	(1) according to section 13.05;
9.34 	(2) according to court order;
9.35 	(3) according to a statute specifically authorizing access
9.36 	to the private data;
9.37 	(4) to an agent of the welfare system, including a law
9.38 	enforcement person, attorney, or investigator acting for it in
9.39 	the investigation or prosecution of a criminal or civil
9.40 	proceeding relating to the administration of a program;
9.41 	(5) to personnel of the welfare system who require the data
9.42 	to verify an individual's identity; determine eligibility,
9.43 	amount of assistance, and the need to provide services to an
9.44 	individual or family across programs; evaluate the effectiveness
10.1 	of programs; and investigate suspected fraud;
10.2 	(6) to administer federal funds or programs;
10.3 	(7) between personnel of the welfare system working in the
10.4 	same program;
10.5 	(8) to the Department of Revenue to administer and evaluate
10.6 	tax refund or tax credit programs and to identify individuals
10.7 	who may benefit from these programs.  The following information
10.8 	may be disclosed under this paragraph:  an individual's and
10.9 	their dependent's names, dates of birth, Social Security
10.10 	numbers, income, addresses, and other data as required, upon
10.11 	request by the Department of Revenue.  Disclosures by the
10.12 	commissioner of human services for the purposes described in
10.13 	this clause are governed by section 270B.14, subdivision 1.  Tax
10.14 	refund or tax credit programs include, but are not limited to,
10.15 	the dependent care credit under section 290.067, the Minnesota
10.16 	working family credit under section 290.0671, the property tax
10.17 	refund and rental credit under section 290A.04, and the
10.18 	Minnesota education credit under section 290.0674;
10.19 	(9) between the Department of Human Services, the
10.20 	Department of Education, and the Department of Employment and
10.21 	Economic Development for the purpose of monitoring the
10.22 	eligibility of the data subject for unemployment benefits, for
10.23 	any employment or training program administered, supervised, or
10.24 	certified by that agency, for the purpose of administering any
10.25 	rehabilitation program or child care assistance program, whether
10.26 	alone or in conjunction with the welfare system, or to monitor
10.27 	and evaluate the Minnesota family investment program by
10.28 	exchanging data on recipients and former recipients of food
10.29 	support, cash assistance under chapter 256, 256D, 256J, or 256K,
10.30 	child care assistance under chapter 119B, or medical programs
10.31 	under chapter 256B, 256D, or 256L;
10.32 	(10) to appropriate parties in connection with an emergency
10.33 	if knowledge of the information is necessary to protect the
10.34 	health or safety of the individual or other individuals or
10.35 	persons;
10.36 	(11) data maintained by residential programs as defined in
11.1 	section 245A.02 may be disclosed to the protection and advocacy
11.2 	system established in this state according to Part C of Public
11.3 	Law 98-527 to protect the legal and human rights of persons with
11.4 	mental retardation or other related conditions who live in
11.5 	residential facilities for these persons if the protection and
11.6 	advocacy system receives a complaint by or on behalf of that
11.7 	person and the person does not have a legal guardian or the
11.8 	state or a designee of the state is the legal guardian of the
11.9 	person;
11.10 	(12) to the county medical examiner or the county coroner
11.11 	for identifying or locating relatives or friends of a deceased
11.12 	person;
11.13 	(13) data on a child support obligor who makes payments to
11.14 	the public agency may be disclosed to the Higher Education
11.15 	Services Office to the extent necessary to determine eligibility
11.16 	under section sections 136A.121, subdivision 2, clause (5), and
11.17 	136A.125, subdivision 2, clause (8);
11.18 	(14) participant Social Security numbers and names
11.19 	collected by the telephone assistance program may be disclosed
11.20 	to the Department of Revenue to conduct an electronic data match
11.21 	with the property tax refund database to determine eligibility
11.22 	under section 237.70, subdivision 4a;
11.23 	(15) the current address of a Minnesota family investment
11.24 	program participant may be disclosed to law enforcement officers
11.25 	who provide the name of the participant and notify the agency
11.26 	that:
11.27 	(i) the participant:
11.28 	(A) is a fugitive felon fleeing to avoid prosecution, or
11.29 	custody or confinement after conviction, for a crime or attempt
11.30 	to commit a crime that is a felony under the laws of the
11.31 	jurisdiction from which the individual is fleeing; or
11.32 	(B) is violating a condition of probation or parole imposed
11.33 	under state or federal law;
11.34 	(ii) the location or apprehension of the felon is within
11.35 	the law enforcement officer's official duties; and
11.36 	(iii) the request is made in writing and in the proper
12.1 	exercise of those duties;
12.2 	(16) the current address of a recipient of general
12.3 	assistance or general assistance medical care may be disclosed
12.4 	to probation officers and corrections agents who are supervising
12.5 	the recipient and to law enforcement officers who are
12.6 	investigating the recipient in connection with a felony level
12.7 	offense;
12.8 	(17) information obtained from food support applicant or
12.9 	recipient households may be disclosed to local, state, or
12.10 	federal law enforcement officials, upon their written request,
12.11 	for the purpose of investigating an alleged violation of the
12.12 	Food Stamp Act, according to Code of Federal Regulations, title
12.13 	7, section 272.1(c);
12.14 	(18) the address, Social Security number, and, if
12.15 	available, photograph of any member of a household receiving
12.16 	food support shall be made available, on request, to a local,
12.17 	state, or federal law enforcement officer if the officer
12.18 	furnishes the agency with the name of the member and notifies
12.19 	the agency that:
12.20 	(i) the member:
12.21 	(A) is fleeing to avoid prosecution, or custody or
12.22 	confinement after conviction, for a crime or attempt to commit a
12.23 	crime that is a felony in the jurisdiction the member is
12.24 	fleeing;
12.25 	(B) is violating a condition of probation or parole imposed
12.26 	under state or federal law; or
12.27 	(C) has information that is necessary for the officer to
12.28 	conduct an official duty related to conduct described in subitem
12.29 	(A) or (B);
12.30 	(ii) locating or apprehending the member is within the
12.31 	officer's official duties; and
12.32 	(iii) the request is made in writing and in the proper
12.33 	exercise of the officer's official duty;
12.34 	(19) the current address of a recipient of Minnesota family
12.35 	investment program, general assistance, general assistance
12.36 	medical care, or food support may be disclosed to law
13.1 	enforcement officers who, in writing, provide the name of the
13.2 	recipient and notify the agency that the recipient is a person
13.3 	required to register under section 243.166, but is not residing
13.4 	at the address at which the recipient is registered under
13.5 	section 243.166;
13.6 	(20) certain information regarding child support obligors
13.7 	who are in arrears may be made public according to section
13.8 	518.575;
13.9 	(21) data on child support payments made by a child support
13.10 	obligor and data on the distribution of those payments excluding
13.11 	identifying information on obligees may be disclosed to all
13.12 	obligees to whom the obligor owes support, and data on the
13.13 	enforcement actions undertaken by the public authority, the
13.14 	status of those actions, and data on the income of the obligor
13.15 	or obligee may be disclosed to the other party;
13.16 	(22) data in the work reporting system may be disclosed
13.17 	under section 256.998, subdivision 7;
13.18 	(23) to the Department of Education for the purpose of
13.19 	matching Department of Education student data with public
13.20 	assistance data to determine students eligible for free and
13.21 	reduced price meals, meal supplements, and free milk according
13.22 	to United States Code, title 42, sections 1758, 1761, 1766,
13.23 	1766a, 1772, and 1773; to allocate federal and state funds that
13.24 	are distributed based on income of the student's family; and to
13.25 	verify receipt of energy assistance for the telephone assistance
13.26 	plan;
13.27 	(24) the current address and telephone number of program
13.28 	recipients and emergency contacts may be released to the
13.29 	commissioner of health or a local board of health as defined in
13.30 	section 145A.02, subdivision 2, when the commissioner or local
13.31 	board of health has reason to believe that a program recipient
13.32 	is a disease case, carrier, suspect case, or at risk of illness,
13.33 	and the data are necessary to locate the person;
13.34 	(25) to other state agencies, statewide systems, and
13.35 	political subdivisions of this state, including the attorney
13.36 	general, and agencies of other states, interstate information
14.1 	networks, federal agencies, and other entities as required by
14.2 	federal regulation or law for the administration of the child
14.3 	support enforcement program;
14.4 	(26) to personnel of public assistance programs as defined
14.5 	in section 256.741, for access to the child support system
14.6 	database for the purpose of administration, including monitoring
14.7 	and evaluation of those public assistance programs;
14.8 	(27) to monitor and evaluate the Minnesota family
14.9 	investment program by exchanging data between the Departments of
14.10 	Human Services and Education, on recipients and former
14.11 	recipients of food support, cash assistance under chapter 256,
14.12 	256D, 256J, or 256K, child care assistance under chapter 119B,
14.13 	or medical programs under chapter 256B, 256D, or 256L;
14.14 	(28) to evaluate child support program performance and to
14.15 	identify and prevent fraud in the child support program by
14.16 	exchanging data between the Department of Human Services,
14.17 	Department of Revenue under section 270B.14, subdivision 1,
14.18 	paragraphs (a) and (b), without regard to the limitation of use
14.19 	in paragraph (c), Department of Health, Department of Employment
14.20 	and Economic Development, and other state agencies as is
14.21 	reasonably necessary to perform these functions; or
14.22 	(29) counties operating child care assistance programs
14.23 	under chapter 119B may disseminate data on program participants,
14.24 	applicants, and providers to the commissioner of education.
14.25 	(b) Information on persons who have been treated for drug
14.26 	or alcohol abuse may only be disclosed according to the
14.27 	requirements of Code of Federal Regulations, title 42, sections
14.28 	2.1 to 2.67.
14.29 	(c) Data provided to law enforcement agencies under
14.30 	paragraph (a), clause (15), (16), (17), or (18), or paragraph
14.31 	(b), are investigative data and are confidential or protected
14.32 	nonpublic while the investigation is active.  The data are
14.33 	private after the investigation becomes inactive under section
14.34 	13.82, subdivision 5, paragraph (a) or (b).
14.35 	(d) Mental health data shall be treated as provided in
14.36 	subdivisions 7, 8, and 9, but is not subject to the access
15.1 	provisions of subdivision 10, paragraph (b).
15.2 	For the purposes of this subdivision, a request will be
15.3 	deemed to be made in writing if made through a computer
15.4 	interface system.

15.5 	Sec. 2. Minnesota Statutes 2004, section 135A.031,
15.6 	subdivision 3, is amended to read:
15.7 		Subd. 3.Determination of instructional services base.
 15.8 	The instructional services base for each public postsecondary
15.9 	system is the sum of:  (1) the state share; and (2) the
15.10 	legislatively estimated tuition for the second year of the most
15.11 	recent biennium; and (3) adjustments for inflation, enrollment
15.12 	changes as calculated in subdivision 4, and performance as
15.13 	calculated in subdivision 5.

15.14 	Sec. 3. Minnesota Statutes 2004, section 135A.031,
15.15 	subdivision 4, is amended to read:
15.16 		Subd. 4.adjustment for enrollments for budgeting. (a)
15.17 	Each public postsecondary system's instructional services base
15.18 	shall be adjusted for estimated changes in enrollments.  For
15.19 	each two percent change in estimated full-year equivalent
15.20 	enrollment, an adjustment shall be made to 65 percent of the
15.21 	instructional services base.  The remaining 35 percent of the
15.22 	instructional services base is not subject to the adjustment in
15.23 	this subdivision.
15.24 	(b) For all purposes where student enrollment is used for
15.25 	budgeting purposes, student enrollment shall be measured in
15.26 	full-year equivalents and shall include only enrollments in
15.27 	courses that award credit or otherwise satisfy any of the
15.28 	requirements of an academic or vocational program.
15.29 	(c) The enrollment adjustment shall be made for each year
15.30 	of the subsequent biennium.  The base enrollment year is the
15.31 	1995 fiscal year enrollment.  The base enrollment shall be
15.32 	updated for each two percent change in estimated full-year
15.33 	equivalent enrollment.  If the actual enrollment differs from
15.34 	the estimated enrollment, an adjustment shall be made in the
15.35 	next biennium.

15.36 	Sec. 4. Minnesota Statutes 2004, section 135A.052,
16.1 	subdivision 1, is amended to read:
16.2 		Subdivision 1.Statement of missions.  The legislature
16.3 	recognizes each type of public postsecondary institution to have
16.4 	a distinctive mission within the overall provision of public
16.5 	higher education in the state and a responsibility to cooperate
16.6 	with each other.  These missions are as follows:
16.7 	(1) the technical colleges shall offer vocational training
16.8 	and education to prepare students for skilled occupations that
16.9 	do not require a baccalaureate degree;
16.10 	(2) the community colleges shall offer lower division
16.11 	instruction in academic programs, occupational programs in which
16.12 	all credits earned will be accepted for transfer to a
16.13 	baccalaureate degree in the same field of study, and remedial
16.14 	studies, for students transferring to baccalaureate institutions
16.15 	and for those seeking associate degrees;
16.16 	(3) consolidated community technical colleges shall offer
16.17 	the same types of instruction, programs, certificates, diplomas,
16.18 	and degrees as the technical colleges and community colleges
16.19 	offer;
16.20 	(4) the state universities shall offer undergraduate and
16.21 	graduate instruction through the master's degree, including
16.22 	specialist certificates, in the liberal arts and sciences and
16.23 	professional education, and may offer applied doctoral degrees
16.24 	in professional fields including education, psychology, physical
16.25 	therapy, audiology, and nursing; and
16.26 	(5) the University of Minnesota shall offer undergraduate,
16.27 	graduate, and professional instruction through the doctoral
16.28 	degree, and shall be the primary state supported academic agency
16.29 	for research and extension services.
16.30 	It is part of the mission of each system that within the
16.31 	system's resources the system's governing board and chancellor
16.32 	or president shall endeavor to:
16.33 	(a) prevent the waste or unnecessary spending of public
16.34 	money;
16.35 	(b) use innovative fiscal and human resource practices to
16.36 	manage the state's resources and operate the system as
17.1 	efficiently as possible;
17.2 	(c) coordinate the system's activities wherever appropriate
17.3 	with the activities of the other system and governmental
17.4 	agencies;
17.5 	(d) use technology where appropriate to increase system
17.6 	productivity, improve customer service, increase public access
17.7 	to information about the system, and increase public
17.8 	participation in the business of the system;
17.9 	(e) utilize constructive and cooperative labor-management
17.10 	practices to the extent otherwise required by chapters 43A and
17.11 	179A; and
17.12 	(f) recommend to the legislature appropriate changes in law
17.13 	necessary to carry out the mission of the system.

17.14 	Sec. 5. Minnesota Statutes 2004, section 135A.30,
17.15 	subdivision 3, is amended to read:
17.16 		Subd. 3.Selection of recipients.  The governing board of
17.17 	an eligible institution shall determine, in consultation with
17.18 	its campuses, application dates and procedures, criteria to be
17.19 	considered, and methods of selecting students to receive
17.20 	scholarships.  A campus, with the approval of its governing
17.21 	board, may award a scholarship in any of the specified
17.22 	fields field of study (1) in which the campus offers a program
17.23 	that is of the quality and rigor to meet the needs of the
17.24 	talented student, and (2) that is pertinent to the mission of
17.25 	the campus.

17.26 	Sec. 6. Minnesota Statutes 2004, section 135A.30,
17.27 	subdivision 4, is amended to read:
17.28 		Subd. 4.Amount of scholarship.  The amount of the
17.29 	scholarship must may be (1) at public institutions, up to the
17.30 	cost of tuition and fees for full-time attendance for one
17.31 	academic year, or (2) at private institutions, an amount equal
17.32 	to the lesser of the actual tuition and fees charged by the
17.33 	institution or the tuition and fees in comparable public
17.34 	institutions.  Scholarships awarded under this section must not
17.35 	be considered in determining a student's financial need as
17.36 	provided in section 136A.101, subdivision 5.

18.1 	Sec. 7. Minnesota Statutes 2004, section 135A.30,
18.2 	subdivision 5, is amended to read:
18.3 		Subd. 5.Renewals.  The scholarship shall may be renewed
18.4 	yearly, for up to three additional academic years, if the
18.5 	student:
18.6 	(1) maintains full-time enrollment with a grade point
18.7 	average of at least 3.0 on a four point scale;
18.8 	(2) pursues studies and continues to demonstrate
18.9 	outstanding ability, achievement, and potential in the field for
18.10 	which the award was made; and
18.11 	(3) is achieving satisfactory progress toward a degree.

18.12 	Sec. 8. Minnesota Statutes 2004, section 135A.52,
18.13 	subdivision 1, is amended to read:
18.14 		Subdivision 1.Fees and tuition.  Except for an
18.15 	administration fee established by the governing board at a level
18.16 	to recover costs, to be collected only when a course is taken
18.17 	for credit, a senior citizen who is a legal resident of
18.18 	Minnesota is entitled without payment of tuition or activity
18.19 	fees to attend courses offered for credit, audit any courses
18.20 	offered for credit, or enroll in any noncredit adult vocational
18.21 	education courses in any state supported institution of higher
18.22 	education in Minnesota when space is available after all
18.23 	tuition-paying students have been accommodated. A senior
18.24 	citizen enrolled under this section must pay any materials,
18.25 	personal property, or service charges for the course.  In
18.26 	addition, a senior citizen who is enrolled in a course for
18.27 	credit must pay an administrative fee in an amount established
18.28 	by the governing board of the institution to recover the course
18.29 	costs.  There shall be no administrative fee charges to a senior
18.30 	citizen auditing a course.For the purposes of this section and
18.31 	section 135A.51, the term "noncredit adult vocational education 
18.32 	courses" shall not include those adult vocational education 
18.33 	courses designed and offered specifically and exclusively for
18.34 	senior citizens.
18.35 	The provisions of this section and section 135A.51 do not
18.36 	apply to noncredit courses designed and offered by the
19.1 	University of Minnesota, and the Minnesota State Colleges and
19.2 	Universities specifically and exclusively for senior citizens.
19.3 	Senior citizens enrolled under the provisions of this section
19.4 	and section 135A.51 shall not be included by such institutions
19.5 	in their computation of full-time equivalent students when
19.6 	requesting staff or appropriations. The enrollee shall pay
19.7 	laboratory or material fees.

19.8 	Sec. 9. Minnesota Statutes 2004, section 135A.52,
19.9 	subdivision 2, is amended to read:
19.10 		Subd. 2.Term; income of senior citizens. (a) Except
19.11 	under paragraph (b),there shall be no limit to the number of
19.12 	terms, quarters or semesters a senior citizen may attend
19.13 	courses, nor income limitation imposed in determining
19.14 	eligibility.
19.15 	(b) A senior citizen enrolled in a closed enrollment
19.16 	contract training or professional continuing education program
19.17 	is not eligible for benefits under subdivision 1.

19.18 	Sec. 10. Minnesota Statutes 2004, section 136A.01,
19.19 	subdivision 2, is amended to read:
19.20 		Subd. 2.Responsibilities.  The Higher Education Services
19.21 	Office is responsible for:
19.22 	(1) necessary state level administration of financial aid
19.23 	programs, including accounting, auditing, and disbursing state
19.24 	and federal financial aid funds, and reporting on financial aid
19.25 	programs to the governor and the legislature;
19.26 	(2) approval, registration, licensing, and financial aid
19.27 	eligibility of private collegiate and career schools, under
19.28 	sections 136A.61 to 136A.71 and chapter 141;
19.29 	(3) administering the Telecommunications Council under Laws
19.30 	1993, First Special Session chapter 2, article 5, section 2,the
19.31 	Learning Network of Minnesota, and the Statewide Library Task
19.32 	Force;
19.33 	(4) negotiating and administering reciprocity agreements;
19.34 	(5) publishing and distributing financial aid information
19.35 	and materials, and other information and materials under section
19.36 	136A.87, to students and parents;
20.1 	(6) collecting and maintaining student enrollment and
20.2 	financial aid data and reporting data on students and
20.3 	postsecondary institutions to measure progress in student
20.4 	learning and the effective use of public resources;
20.5 	(7) administering the federal programs that affect students
20.6 	and institutions on a statewide basis; and
20.7 	(8) prescribing policies, procedures, and rules under
20.8 	chapter 14 necessary to administer the programs under its
20.9 	supervision.

20.10 	Sec. 11. Minnesota Statutes 2004, section 136A.031,
20.11 	subdivision 2, is amended to read:
20.12 		Subd. 2.Higher education advisory council.  A Higher
20.13 	Education Advisory Council (HEAC) is established.  The HEAC is
20.14 	composed of the president of the University of Minnesota or
20.15 	designee; the chancellor of the Minnesota State Colleges and
20.16 	Universities or designee; the commissioner of education; the
20.17 	president of the Private College Council; a representative from
20.18 	the Minnesota Association of Private Postsecondary Schools; and
20.19 	a member appointed by the governor.  The HEAC shall (1) bring to
20.20 	the attention of the Higher Education Services Council Office 
20.21 	any matters that the HEAC deems necessary, and (2) review and
20.22 	comment upon matters before the council.  The council shall
20.23 	refer all proposals to the HEAC before submitting
20.24 	recommendations to the governor and the legislature.  The
20.25 	council shall provide time for a report from the HEAC at each
20.26 	meeting of the council.

20.27 	Sec. 12. Minnesota Statutes 2004, section 136A.031,
20.28 	subdivision 3, is amended to read:
20.29 		Subd. 3.Student advisory council.  A Student Advisory
20.30 	Council (SAC) to the Higher Education Services Council Office is
20.31 	established.  The members of SAC shall include:  the chair of
20.32 	the University of Minnesota student senate; the state chair of
20.33 	the Minnesota State University Student Association; the
20.34 	president of the Minnesota State College Student Association and
20.35 	an officer of the Minnesota State College Student Association,
20.36 	one in a community college course of study and one in a
21.1 	technical college course of study; the president of the
21.2 	Minnesota Association of Private College Students; and a student
21.3 	who is enrolled in a private vocational school, to be appointed
21.4 	by the Minnesota Association of Private Postsecondary Schools 
21.5 	Career College Association.  A member may be represented by a
21.6 	student designee who attends an institution from the same system
21.7 	that the absent member represents.  The SAC shall select one of
21.8 	its members to serve as chair.
21.9 	The Higher Education Services Council shall inform the SAC
21.10 	of all matters related to student issues under consideration and
21.11 	shall refer all proposals to the SAC before taking action or
21.12 	sending the proposals to the governor or legislature.The SAC
21.13 	shall report to the Higher Education Services Council Office 
21.14 	quarterly and at other times that the SAC considers desirable.
21.15 	The SAC shall determine its meeting times, but it shall also
21.16 	meet with the council office within 30 days after the director's
21.17 	request for a meeting.
21.18 	The SAC shall:
21.19 	(1) bring to the attention of the Higher Education Services
21.20 	Council Office any matter that the SAC believes needs the
21.21 	attention of the council office; and 
21.22 	(2) make recommendations to the Higher Education Services
21.23 	Council Office as it finds appropriate;
21.24 	(3) appoint student members to the Higher Education
21.25 	Services Council advisory groups as provided in subdivision 4;
21.26 	and 
21.27 	(4) provide any reasonable assistance to the council.

21.28 	Sec. 13. Minnesota Statutes 2004, section 136A.031,
21.29 	subdivision 4, is amended to read:
21.30 		Subd. 4.Student representation.  If requested by the
21.31 	SAC, the director must place at least one student from an
21.32 	affected educational system on any task force created under
21.33 	subdivision 1.  The student member or members shall be appointed
21.34 	by the SAC.

21.35 	Sec. 14. Minnesota Statutes 2004, section 136A.08, is
21.36 	amended by adding a subdivision to read:
22.1 		Subd. 7.Reporting. The Higher Education Services Office
22.2 	must annually, before the last day in January, submit a report
22.3 	to the committees in the house of representatives and the senate
22.4 	with responsibility for higher education on:
22.5 	(1) participation in the tuition reciprocity program by
22.6 	Minnesota students, and students from other states attending
22.7 	Minnesota postsecondary institutions;
22.8 	(2) reciprocity and resident tuition rates at each
22.9 	institution; and 
22.10 	(3) interstate payments and obligations for each state
22.11 	participating in the tuition reciprocity program in the prior
22.12 	year.

22.13 	Sec. 15. Minnesota Statutes 2004, section 136A.08, is
22.14 	amended by adding a subdivision to read:
22.15 		Subd. 8.Data sharing. (a) The Higher Education Services
22.16 	Office must consider developing data collection procedures and
22.17 	agreements to monitor the extent to which students who attend
22.18 	Minnesota postsecondary institutions under reciprocity
22.19 	agreements are employed in Minnesota after graduation.  These
22.20 	procedures must include matching Social Security numbers of
22.21 	reciprocity students for purposes of tracking the migration and
22.22 	employment of students who receive associate, baccalaureate, or
22.23 	graduate degrees through a tuition reciprocity program.  State
22.24 	agencies must share wage and earnings data under section 268.19
22.25 	for the purpose of evaluating the tuition reciprocity program.
22.26 	(b) The reciprocity application must request the use of
22.27 	student Social Security numbers for the purposes of this
22.28 	subdivision.  Reciprocity students must be informed that Social
22.29 	Security numbers will be used only to evaluate the reciprocity
22.30 	program by sharing information with Minnesota agencies and
22.31 	departments responsible for the administration of covered wage
22.32 	data and revenue collections.  Social Security numbers will not
22.33 	be used for any other purpose or reported to any other
22.34 	government entity.
22.35 	(c) The office must include summary data on the migration
22.36 	and earnings of reciprocity graduates in the reciprocity report
23.1 	to the legislature.  This report must include summary statistics
23.2 	on number of graduates by institution, degree granted and year
23.3 	of graduation, total number of reciprocity students employed in
23.4 	the state, and total earnings of graduates.

23.5 	Sec. 16. Minnesota Statutes 2004, section 136A.121,
23.6 	subdivision 2, is amended to read:
23.7 		Subd. 2.Eligibility for grants.  An applicant is
23.8 	eligible to be considered for a grant, regardless of the
23.9 	applicant's sex, creed, race, color, national origin, or
23.10 	ancestry, under sections 136A.095 to 136A.131 if the office
23.11 	finds that the applicant:
23.12 	(1) is a resident of the state of Minnesota;
23.13 	(2) is a graduate of a secondary school or its equivalent,
23.14 	or is 17 years of age or over, and has met all requirements for
23.15 	admission as a student to an eligible college or technical
23.16 	college of choice as defined in sections 136A.095 to 136A.131;
23.17 	(3) has met the financial need criteria established in
23.18 	Minnesota Rules;
23.19 	(4) is not in default, as defined by the office, of any
23.20 	federal or state student educational loan; and
23.21 	(5) is not more than 30 days in arrears for any in
23.22 	court-ordered child support payments owed to a that is collected
23.23 	or enforced by the public agency authority responsible for child
23.24 	support enforcement or, if the applicant is more than 30 days in
23.25 	arrears in court-ordered child support that is collected or
23.26 	enforced by the public authority responsible for child support
23.27 	enforcement, but is complying with a written payment
23.28 	agreement under section 518.553or order for arrearages. An
23.29 	agreement must provide for a repayment of arrearages at no less
23.30 	than 20 percent per month of the amount of the monthly child
23.31 	support obligation or no less than $30 per month if there is no
23.32 	current monthly child support obligation.  Compliance means that
23.33 	payments are made by the payment date.
23.34 	The director and the commissioner of human services shall
23.35 	develop procedures to implement clause (5).

23.36 	Sec. 17. Minnesota Statutes 2004, section 136A.121,
24.1 	subdivision 5, is amended to read:
24.2 		Subd. 5.Grant stipends.  The grant stipend shall be
24.3 	based on a sharing of responsibility for covering the recognized
24.4 	cost of attendance by the applicant, the applicant's family, and
24.5 	the government.  The amount of a financial stipend must not
24.6 	exceed a grant applicant's recognized cost of attendance, as
24.7 	defined in subdivision 6, after deducting the following:
24.8 	(1) the assigned student responsibility of at least 46 45 
24.9 	percent of the cost of attending the institution of the
24.10 	applicant's choosing;
24.11 	(2) the assigned family responsibility as defined in
24.12 	section 136A.101; and
24.13 	(3) the amount of a federal Pell grant award for which the
24.14 	grant applicant is eligible.
24.15 	The minimum financial stipend is $100 per academic year.

24.16 	Sec. 18. Minnesota Statutes 2004, section 136A.121,
24.17 	subdivision 6, is amended to read:
24.18 		Subd. 6.Cost of attendance.  (a) The recognized cost of
24.19 	attendance consists of allowances specified in law for living
24.20 	and miscellaneous expenses, and an allowance for tuition and
24.21 	fees equal to the lesser of the average tuition and fees charged
24.22 	by the institution, or the tuition and fee maximums established
24.23 	in law.
24.24 	(b) For a student registering for less than full time, the
24.25 	office shall prorate the cost of attendance to the actual number
24.26 	of credits for which the student is enrolled.
24.27 	The recognized cost of attendance for a student who is
24.28 	confined to a Minnesota correctional institution shall consist
24.29 	of the tuition and fee component in paragraph (a), with no
24.30 	allowance for living and miscellaneous expenses.
24.31 	For the purpose of this subdivision, "fees" include only
24.32 	those fees that are mandatory and charged to full-time resident
24.33 	students attending the institution. Fees do not include charges
24.34 	for tools, equipment, computers, or other similar materials
24.35 	where the student retains ownership.  Fees include charges for
24.36 	these materials if the institution retains ownership.  Fees do
25.1 	not include optional or punitive fees.

25.2 	Sec. 19. Minnesota Statutes 2004, section 136A.121,
25.3 	subdivision 9, is amended to read:
25.4 		Subd. 9.Awards.  An undergraduate student who meets the
25.5 	office's requirements is eligible to apply for and receive a
25.6 	grant in any year of undergraduate study unless the student has
25.7 	obtained a baccalaureate degree or previously has been enrolled
25.8 	full time or the equivalent for eight nine semesters or the
25.9 	equivalent, excluding courses taken from a Minnesota school or
25.10 	postsecondary institution which is not participating in the
25.11 	state grant program and from which a student transferred no
25.12 	credit. A student who withdraws from enrollment for active
25.13 	military service is entitled to an additional semester or the
25.14 	equivalent of grant eligibility.A student enrolled in a
25.15 	two-year program at a four-year institution is only eligible for
25.16 	the tuition and fee maximums established by law for two-year
25.17 	institutions.

25.18 	Sec. 20. Minnesota Statutes 2004, section 136A.121, is
25.19 	amended by adding a subdivision to read:
25.20 		Subd. 18.Data. An eligible institution must provide to
25.21 	the office student enrollment, financial aid, financial, and
25.22 	other data as determined by the director, to enable the office
25.23 	to carry out its responsibilities under chapter 136A.

25.24 	Sec. 21. Minnesota Statutes 2004, section 136A.125,
25.25 	subdivision 2, is amended to read:
25.26 		Subd. 2.Eligible students. (a) An applicant is eligible
25.27 	for a child care grant if the applicant:
25.28 	(1) is a resident of the state of Minnesota;
25.29 	(2) has a child 12 years of age or younger, or 14 years of
25.30 	age or younger who is handicapped as defined in section 125A.02,
25.31 	and who is receiving or will receive care on a regular basis
25.32 	from a licensed or legal, nonlicensed caregiver;
25.33 	(3) is income eligible as determined by the office's
25.34 	policies and rules, but is not a recipient of assistance from
25.35 	the Minnesota family investment program;
25.36 	(4) has not earned a baccalaureate degree and has been
26.1 	enrolled full time less than eight nine semesters or the
26.2 	equivalent;
26.3 	(5) is pursuing a nonsectarian program or course of study
26.4 	that applies to an undergraduate degree, diploma, or
26.5 	certificate;
26.6 	(6) is enrolled at least half time in an eligible
26.7 	institution; and 
26.8 	(7) is in good academic standing and making satisfactory
26.9 	academic progress; and 
26.10 	(8) is not more than 30 days in arrears in court-ordered
26.11 	child support that is collected or enforced by the public
26.12 	authority responsible for child support enforcement or, if the
26.13 	applicant is more than 30 days in arrears in court-ordered child
26.14 	support that is collected or enforced by the public authority
26.15 	responsible for child support enforcement, but is complying with
26.16 	a written payment agreement under section 518.553 or order for
26.17 	arrearages.
26.18 	(b) A student who withdraws from enrollment for active
26.19 	military service is entitled to an additional semester or the
26.20 	equivalent of grant eligibility.

26.21 	Sec. 22. Minnesota Statutes 2004, section 136A.1701, is
26.22 	amended by adding a subdivision to read:
26.23 		Subd. 11.Data. An eligible institution must provide to
26.24 	the office student enrollment, financial aid, financial, and
26.25 	other data as determined by the director, to enable the office
26.26 	to carry out its responsibilities under chapter 136A.

26.27 	Sec. 23. Minnesota Statutes 2004, section 136A.1701, is
26.28 	amended by adding a subdivision to read:
26.29 		Subd. 12.Eligible student. "Eligible student" means a
26.30 	student who is a Minnesota resident who is enrolled or accepted
26.31 	for enrollment at an eligible institution in Minnesota or in
26.32 	another state or province.  Non-Minnesota residents are eligible
26.33 	students if they are enrolled or accepted for enrollment in a
26.34 	minimum of one course of at least 30 days in length during the
26.35 	academic year that requires physical attendance at an eligible
26.36 	institution located in Minnesota.  Non-Minnesota resident
27.1 	students enrolled exclusively during the academic year in
27.2 	correspondence courses or courses offered over the Internet are
27.3 	not eligible students.  Non-Minnesota resident students not
27.4 	physically attending classes in Minnesota due to enrollment in a
27.5 	study abroad program for 12 months or less are eligible students.
27.6 	Non-Minnesota residents enrolled in study abroad programs
27.7 	exceeding 12 months are not eligible students.  For purposes of
27.8 	this section, an "eligible student" must also meet the
27.9 	eligibility requirements of section 136A.15, subdivision 8.

27.10 	Sec. 24. [136A.1703] INCOME-CONTINGENT LOANS.
27.11 	The office shall administer an income-contingent loan
27.12 	repayment program to assist graduates of Minnesota schools in
27.13 	medicine, dentistry, pharmacy, chiropractic medicine, public
27.14 	health, and veterinary medicine, and Minnesota residents
27.15 	graduating from optometry and osteopathy programs.  Applicant
27.16 	data collected by the office for this program may be disclosed
27.17 	to a consumer credit reporting agency under the same conditions
27.18 	as those that apply to the supplemental loan program under
27.19 	section 136A.162.  No new applicants may be accepted after June
27.20 	30, 1995.

27.21 	Sec. 25. [136A.1785] LOAN CAPITAL FUND.
27.22 	The office may deposit and hold assets derived from the
27.23 	operation of its student loan programs authorized by this
27.24 	chapter in a fund known as the loan capital fund.  Assets in the
27.25 	loan capital fund are available to the office solely for
27.26 	carrying out the purposes and terms of sections 136A.15 to
27.27 	136A.1703, including, but not limited to, making student loans
27.28 	authorized by this chapter, paying administrative expenses
27.29 	associated with the operation of its student loan programs,
27.30 	repurchasing defaulted student loans, and paying expenses in
27.31 	connection with the issuance of revenue bonds authorized under
27.32 	this chapter.  Assets in the loan capital fund may be invested
27.33 	as provided in sections 11A.24 and 136A.16, subdivision 8.  All
27.34 	interest and earnings from the investment of the loan capital
27.35 	fund inure to the benefit of the fund and are deposited into the
27.36 	fund.

28.1 	Sec. 26. Minnesota Statutes 2004, section 136F.04,
28.2 	subdivision 4, is amended to read:
28.3 		Subd. 4.Recommendations.  Each student association shall
28.4 	recommend at least two and not more than four candidates for its
28.5 	student member.  By January 2 April 15 of the year in which its
28.6 	members' term expires, each student association shall submit its
28.7 	recommendations to the governor.  The governor is not bound by
28.8 	these recommendations.

28.9 	Sec. 27. Minnesota Statutes 2004, section 136F.32,
28.10 	subdivision 2, is amended to read:
28.11 		Subd. 2.Technical and consolidated technical colleges.
 28.12 	(a) A technical college or consolidated technical community
28.13 	college shall offer students the option of pursuing diplomas and 
28.14 	or certificates in each technical education program, unless the
28.15 	board determines that a degree is the only acceptable credential
28.16 	for career entry in a specific field.  All vocational and
28.17 	technical credits earned for a diploma or certificate shall be
28.18 	applicable toward any available degree in the same program.
28.19 	(b) Certificates and diplomas are credentials that
28.20 	demonstrate competence in a vocational or technical area and,
28.21 	therefore, may include a general education component only as
28.22 	part of an articulation agreement or to meet occupational
28.23 	requirements as established by the trade or profession, or by
28.24 	the program advisory committee.  Students shall be provided with
28.25 	applied training in general studies as necessary for competence
28.26 	in the program area.  Students who have earned a certificate or
28.27 	diploma may earn a degree in the same field if they complete the
28.28 	general education and other degree requirements.

28.29 	Sec. 28. Minnesota Statutes 2004, section 136G.03,
28.30 	subdivision 3, is amended to read:
28.31 		Subd. 3.Account owner.  "Account owner" means a person
28.32 	who enters into a participation agreement and is entitled
28.33 	to select or change conduct transactions on the account,
28.34 	including selecting and changing the beneficiary of an account
28.35 	or to receive and receiving distributions from the account for
28.36 	other than payment of qualified higher education expenses.

29.1 	Sec. 29. Minnesota Statutes 2004, section 136G.03,
29.2 	subdivision 21a, is amended to read:
29.3 		Subd. 21a.Minor trust account.  "Minor trust account"
29.4 	means a Uniform Gift to Minors Act account,or a Uniform
29.5 	Transfers to Minors Act account, or a trust instrument naming a
29.6 	minor person as beneficiary,created and operating under the
29.7 	laws of Minnesota or another state.

29.8 	Sec. 30. Minnesota Statutes 2004, section 136G.03,
29.9 	subdivision 22, is amended to read:
29.10 		Subd. 22.Nonqualified distribution.  "Nonqualified
29.11 	distribution" means a distribution made from an account other
29.12 	than (1) a qualified distribution; or (2) a distribution due to
29.13 	the death or disability of, or scholarship to, or attendance at
29.14 	a United States military academy by,a beneficiary.

29.15 	Sec. 31. Minnesota Statutes 2004, section 136G.03,
29.16 	subdivision 32, is amended to read:
29.17 		Subd. 32.Scholarship.  "Scholarship" means a
29.18 	scholarship,or educational assistance allowance, or payment
29.19 	under section 529(b)(3)(C) of the Internal Revenue Code.

29.20 	Sec. 32. Minnesota Statutes 2004, section 136G.05,
29.21 	subdivision 8, is amended to read:
29.22 		Subd. 8.Administration.  The director shall administer
29.23 	the program, including accepting and processing applications,
29.24 	maintaining account records, making payments, making matching
29.25 	grants under section 136G.11, and undertaking any other
29.26 	necessary tasks to administer the program.  The office may
29.27 	contract with one or more third parties to carry out some or all
29.28 	of these administrative duties, including promotion providing
29.29 	incentives and marketing of the program.  The office and the
29.30 	board may jointly contract with third-party providers, if the
29.31 	office and board determine that it is desirable to contract with
29.32 	the same entity or entities for administration and investment
29.33 	management.

29.34 	Sec. 33. Minnesota Statutes 2004, section 136G.09,
29.35 	subdivision 11, is amended to read:
29.36 		Subd. 11.Effect of plan changes on participation
30.1 	agreement.  Amendments to sections 136G.01 to 136G.13
30.2 	automatically amend the participation agreement.  Any amendments
30.3 	to the operating procedures and policies of the plan shall
30.4 	automatically amend the participation agreement 30 days after
30.5 	adoption by the office or the board.

30.6 	Sec. 34. Minnesota Statutes 2004, section 136G.09,
30.7 	subdivision 12, is amended to read:
30.8 		Subd. 12.Special account to hold plan assets in trust.
 30.9 	All assets of the plan, including contributions to accounts and
30.10 	matching grant accounts and earnings, are held in trust for the
30.11 	exclusive benefit of account owners and beneficiaries.  Assets
30.12 	must be held in a separate account in the state treasury to be
30.13 	known as the Minnesota college savings plan account or in
30.14 	accounts with the third party provider selected pursuant to
30.15 	section 136G.05, subdivision 8.  Plan assets are not subject to
30.16 	claims by creditors of the state, are not part of the general
30.17 	fund, and are not subject to appropriation by the state.
30.18 	Payments from the Minnesota college savings plan account shall
30.19 	be made under sections 136G.01 to 136G.13.

30.20 	Sec. 35. Minnesota Statutes 2004, section 136G.11,
30.21 	subdivision 1, is amended to read:
30.22 		Subdivision 1.Matching grant qualification.  By June 30
30.23 	of each year, a state matching grant must be added to each
30.24 	account established under the program if the following
30.25 	conditions are met:
30.26 	(1) the contributor applies, in writing in a form
30.27 	prescribed by the director, for a matching grant;
30.28 	(2) a minimum contribution of $200 was made during the
30.29 	preceding calendar year; and 
30.30 	(3) the beneficiary's family meets Minnesota college
30.31 	savings plan residency requirements; and 
30.32 	(4) the family income of the beneficiary did not exceed
30.33 	$80,000.

30.34 	Sec. 36. Minnesota Statutes 2004, section 136G.11,
30.35 	subdivision 2, is amended to read:
30.36 		Subd. 2.Family income.  (a) For purposes of this
31.1 	section, "family income" means:
31.2 	(1) if the beneficiary is under age 25, the combined
31.3 	adjusted gross income of the beneficiary's parents or legal
31.4 	guardians as reported on the federal tax return or returns for
31.5 	the calendar year in which contributions were made.  If the
31.6 	beneficiary's parents or legal guardians are divorced, the
31.7 	income of the parent claiming the beneficiary as a dependent on
31.8 	the federal individual income tax return and the income of that
31.9 	parent's spouse, if any, is used to determine family income; or
31.10 	(2) if the beneficiary is age 25 or older, the combined
31.11 	adjusted gross income of the beneficiary and spouse, if any.
31.12 	(b) For a parent or legal guardian of beneficiaries under
31.13 	age 25 and for beneficiaries age 25 or older who resided in
31.14 	Minnesota and filed a federal individual income tax return, the
31.15 	matching grant must be based on family income from the calendar
31.16 	year in which contributions were made.

31.17 	Sec. 37. Minnesota Statutes 2004, section 136G.11,
31.18 	subdivision 3, is amended to read:
31.19 		Subd. 3.Residency requirement.  (a) If the beneficiary
31.20 	is under age 25, the beneficiary's parents or legal guardians
31.21 	must be Minnesota residents to qualify for a matching grant.  If
31.22 	the beneficiary is age 25 or older, the beneficiary must be a
31.23 	Minnesota resident to qualify for a matching grant.
31.24 	(b) To meet the residency requirements, the parent or legal
31.25 	guardian of beneficiaries under age 25 must have filed a
31.26 	Minnesota individual income tax return as a Minnesota resident
31.27 	and claimed the beneficiary as a dependent on the parent or
31.28 	legal guardian's federal tax return for the calendar year in
31.29 	which contributions were made. If the beneficiary's parents are
31.30 	divorced, the parent or legal guardian claiming the beneficiary
31.31 	as a dependent on the federal individual income tax return must
31.32 	be a Minnesota resident.For beneficiaries age 25 or older, the
31.33 	beneficiary, and a spouse, if any, must have filed a Minnesota
31.34 	and a federal individual income tax return as a Minnesota
31.35 	resident for the calendar year in which contributions were made.
31.36 	(c) A parent of beneficiaries under age 25 and
32.1 	beneficiaries age 25 or older who did not reside in Minnesota in
32.2 	the calendar year in which contributions were made are not
32.3 	eligible for a matching grant.

32.4 	Sec. 38. Minnesota Statutes 2004, section 136G.11,
32.5 	subdivision 13, is amended to read:
32.6 		Subd. 13.Forfeiture of matching grants.  (a) Matching
32.7 	grants are forfeited if:
32.8 	(1) the account owner transfers the total account balance
32.9 	of an account to another account or to another qualified tuition
32.10 	program;
32.11 	(2) the beneficiary receives a full tuition scholarship or
32.12 	admission to is attending a United States service academy;
32.13 	(3) the beneficiary dies or becomes disabled;
32.14 	(4) the account owner changes the beneficiary of the
32.15 	account; or
32.16 	(5) the account owner closes the account with a
32.17 	nonqualified withdrawal.
32.18 	(b) Matching grants must be proportionally forfeited if:
32.19 	(1) the account owner transfers a portion of an account to
32.20 	another account or to another qualified tuition program;
32.21 	(2) the beneficiary receives a scholarship covering a
32.22 	portion of qualified higher education expenses; or
32.23 	(3) the account owner makes a partial nonqualified
32.24 	withdrawal.
32.25 	(c) If the account owner makes a misrepresentation in a
32.26 	participation agreement or an application for a matching grant
32.27 	that results in a matching grant, the matching grant associated
32.28 	with the misrepresentation is forfeited.  The office and the
32.29 	board must instruct the plan administrator as to the amount to
32.30 	be forfeited from the matching grant account.  The office and
32.31 	the board must withdraw the matching grant or the proportion of
32.32 	the matching grant that is related to the misrepresentation.

32.33 	Sec. 39. Minnesota Statutes 2004, section 136G.13,
32.34 	subdivision 1, is amended to read:
32.35 		Subdivision 1.Qualified distribution methods.  (a)
32.36 	Qualified distributions may be made:
33.1 	(1) directly to participating eligible educational
33.2 	institutions on behalf of the beneficiary; or 
33.3 	(2) in the form of a check payable to both the beneficiary
33.4 	and the eligible educational institution; or 
33.5 	(3) directly to the account owner or beneficiary if the
33.6 	account owner or beneficiary has already paid qualified higher
33.7 	education expenses.
33.8 	(b) Qualified distributions must be withdrawn
33.9 	proportionally from contributions and earnings in an account
33.10 	owner's account on the date of distribution as provided in
33.11 	section 529 of the Internal Revenue Code.

33.12 	Sec. 40. Minnesota Statutes 2004, section 136G.13,
33.13 	subdivision 5, is amended to read:
33.14 		Subd. 5.Distributions due to death or disability of, or
33.15 	scholarship to, or attendance at a united states military
33.16 	academy by,a beneficiary.  An account owner may request a
33.17 	distribution due to the death or disability of, or scholarship
33.18 	to, or attendance at a United States military academy by,a
33.19 	beneficiary from an account by submitting a completed request to
33.20 	the plan.  Prior to distribution, the account owner shall
33.21 	certify the reason for the distribution and provide written
33.22 	confirmation from a third party that the beneficiary has died,
33.23 	become disabled, or received a scholarship for attendance at an
33.24 	eligible educational institution, or is attending a United
33.25 	States military academy.  The plan must not consider a request
33.26 	to make a distribution until a third-party written confirmation
33.27 	is received by the plan.  For purposes of this subdivision, a
33.28 	third-party written confirmation consists of the following:
33.29 	(1) for death of the beneficiary, a certified copy of the
33.30 	beneficiary's death record;
33.31 	(2) for disability of the beneficiary, a certification by a
33.32 	physician who is a doctor of medicine or osteopathy stating that
33.33 	the doctor is legally authorized to practice in a state of the
33.34 	United States and that the beneficiary is unable to attend any
33.35 	eligible educational institution because of an injury or illness
33.36 	that is expected to continue indefinitely or result in death.
34.1 	Certification must be on a form approved by the plan; or 
34.2 	(3) for a scholarship award to the beneficiary, a letter
34.3 	from the grantor of the scholarship or from the eligible
34.4 	educational institution receiving or administering the
34.5 	scholarship, that identifies the beneficiary by name and Social
34.6 	Security number or taxpayer identification number as the
34.7 	recipient of the scholarship and states the amount of the
34.8 	scholarship, the period of time or number of credits or units to
34.9 	which it applies, the date of the scholarship, and, if
34.10 	applicable, the eligible educational institution to which the
34.11 	scholarship is to be applied; or 
34.12 	(4) for attendance by the beneficiary at a United States
34.13 	military academy, a letter from the military academy indicating
34.14 	the beneficiary's enrollment and attendance.

34.15 	Sec. 41. Minnesota Statutes 2004, section 136G.14, is
34.16 	amended to read:
34.17 	136G.14 MINOR TRUST ACCOUNTS.
34.18 	(a) This section applies to a plan account in which funds
34.19 	of a minor trust account are invested.
34.20 	(b) The account owner may not be changed to any person
34.21 	other than a successor custodian or the beneficiary unless a
34.22 	court order directing the change of ownership is provided to the
34.23 	plan administrator.  The custodian must sign all forms and
34.24 	requests submitted to the plan administrator in the custodian's
34.25 	representative capacity.  The custodian must notify the plan
34.26 	administrator in writing when the beneficiary becomes legally
34.27 	entitled to be the account owner.  An account owner under this
34.28 	section may not select a contingent account owner.
34.29 	(c) The beneficiary of an account under this section may
34.30 	not be changed.  If the beneficiary dies, assets in a plan
34.31 	account become the property of the beneficiary's estate.  Funds
34.32 	in an account must not be transferred or rolled over to another
34.33 	account owner or to an account for another beneficiary.  A
34.34 	nonqualified distribution from an account, or a distribution due
34.35 	to the disability or scholarship award to the beneficiary, or
34.36 	made on account of the beneficiary's attendance at a United
35.1 	States military academy,must be used for the benefit of the
35.2 	beneficiary.

35.3 	Sec. 42. Minnesota Statutes 2004, section 137.0245,
35.4 	subdivision 1, is amended to read:
35.5 		Subdivision 1.Establishment.  A Regent Candidate
35.6 	Advisory Council is established to assist the legislature in
35.7 	determining criteria for, and identifying and recruiting
35.8 	qualified candidates for membership on the Board of Regents and
35.9 	making recommendations to the governor.

35.10 	Sec. 43. Minnesota Statutes 2004, section 137.0245,
35.11 	subdivision 2, is amended to read:
35.12 		Subd. 2.Membership. (a) The Regent Candidate Advisory
35.13 	Council shall consist of 24 members, appointed as provided in
35.14 	this subdivision.
35.15 	(b) Twelve Ten members shall be appointed by the
35.16 	Subcommittee on Committees of the Committee on Rules and
35.17 	Administration of the senate. Twelve Ten members shall be
35.18 	appointed by the speaker of the house of representatives.  Each
35.19 	of these appointing authority authorities must appoint one
35.20 	member who is a student enrolled in a degree program at the
35.21 	University of Minnesota at the time of appointment.  No more
35.22 	than one-third one-fourth of the members appointed by each of
35.23 	these appointing authority authorities may be current or former
35.24 	legislators.  No more than two-thirds three-fourths of the
35.25 	members appointed by each of these appointing authority 
35.26 	authorities may belong to the same political party; however,
35.27 	political activity or affiliation is not required for the
35.28 	appointment of any member.
35.29 	(c) Two members shall be appointed by the University of
35.30 	Minnesota Alumni Association.  Two members shall be appointed by
35.31 	the University of Minnesota Foundation.
35.32 	(d) Geographical representation must be taken into
35.33 	consideration when making appointments. Political activity or
35.34 	affiliation is not required for appointment of any member of the
35.35 	advisory council.Section 15.0575 shall govern the advisory
35.36 	council, except that:
36.1 	(1) the members shall be appointed to six-year terms with
36.2 	one-third appointed each even-numbered year; and
36.3 	(2) student members are appointed to two-year terms with
36.4 	two students appointed each even-numbered year.

36.5 	Sec. 44. Minnesota Statutes 2004, section 137.0245,
36.6 	subdivision 4, is amended to read:
36.7 		Subd. 4.Recommendations.  The advisory council shall
36.8 	recommend at least two and not more than four candidates.  By
36.9 	March 15 February 1 of each odd-numbered year, the advisory
36.10 	council shall submit its recommendations to the president of the
36.11 	senate and the speaker of the house of representatives.  The
36.12 	legislature shall not be bound by these recommendations governor
36.13 	who must nominate a slate of candidates and present it to the
36.14 	legislature under section 137.0247.

36.15 	Sec. 45. [137.0247] LEGISLATIVE ELECTION OF REGENTS.
36.16 		Subdivision 1.Governor nomination. Within 30 days of
36.17 	receiving the recommendations of the Regent Candidate Advisory
36.18 	Council, the governor must submit a slate of regent candidates
36.19 	to the legislature that names one candidate for each vacancy.
36.20 	The governor may name candidates from the recommendations of the
36.21 	advisory council, or may select a candidate without regard to
36.22 	the recommendations but according to sections 137.023 and
36.23 	137.024.  In selecting candidates, the governor must consider
36.24 	the needs of the board of regents and the balance of the board
36.25 	membership with respect to gender, racial, and ethnic
36.26 	composition.
36.27 		Subd. 2.Election by the legislature. In each
36.28 	odd-numbered year, the legislature must elect regents as
36.29 	required under the Minnesota Constitution, article XII, section
36.30 	3, from a slate of candidates submitted by the governor under
36.31 	this section.  If the legislature fails to fill one or more of
36.32 	the open positions, the governor has 15 days from the date of
36.33 	the joint convention to submit a new slate of candidates for the
36.34 	open regent positions.  The legislature must meet in joint
36.35 	convention to act on the second slate of candidates.  The
36.36 	nomination and election process under this section continues
37.1 	until regents have been elected for all positions scheduled for
37.2 	the current election cycle.

37.3 	Sec. 46. Minnesota Statutes 2004, section 192.502,
37.4 	subdivision 1, is amended to read:
37.5 		Subdivision 1.Postsecondary students.  (a) A member of
37.6 	the Minnesota National Guard or any other military reserve
37.7 	component who is a As used in this subdivision, the terms
37.8 	"qualified person" and "qualified student" have the same meaning
37.9 	and include:
37.10 	(1) any student at a postsecondary education educational 
37.11 	institution and who is called or ordered to state into active
37.12 	military service in the Minnesota National Guard, as defined in
37.13 	section 190.05, subdivision 5, or who is called or ordered to
37.14 	federal active military service ; and 
37.15 	(2) a veteran, as defined in section 197.447, who has a
37.16 	service connected disability as certified by the United States
37.17 	Department of Veterans Affairs, who is a student at a
37.18 	postsecondary educational institution, and whose medical
37.19 	condition or medical treatment requirements reasonably prevent
37.20 	the person's attendance at or progress in part or all of the
37.21 	person's higher educational training or studies at any given
37.22 	time.
37.23 	(b) A qualified person or qualified student has the
37.24 	following rights:
37.25 	(1) with regard to courses in which the person is enrolled,
37.26 	the person may:
37.27 	(i) withdraw from one or more courses for which tuition and
37.28 	fees have been paid that are attributable to the courses.  The
37.29 	tuition and fees must be credited to the person's account at the
37.30 	postsecondary institution.  Any refunds are subject to the
37.31 	requirements of the state or federal financial aid programs of
37.32 	origination.  In such a case, the student must not receive
37.33 	credit for the courses and must not receive a failing grade, an
37.34 	incomplete, or other negative annotation on the student's
37.35 	record, and the student's grade point average must not be
37.36 	altered or affected in any manner because of action under this
38.1 	item;
38.2 	(ii) be given a grade of incomplete and be allowed to
38.3 	complete the course upon release from active duty service, upon
38.4 	completion of medical treatment, or upon sufficient medical
38.5 	recovery under the postsecondary institution's standard practice
38.6 	for completion of incompletes; or
38.7 	(iii) continue and complete the course for full credit.
38.8 	Class sessions the student misses due to performance of state or
38.9 	federal active military service or due to the person's medical
38.10 	treatment or medical condition must be counted as excused
38.11 	absences and must not be used in any way to adversely impact the
38.12 	student's grade or standing in the class.  Any student who
38.13 	selects this option is not, however, automatically excused from
38.14 	completing assignments due during the period the student is
38.15 	performing state or federal active military service or receiving
38.16 	medical treatment or recovering from a medical condition.  A
38.17 	letter grade or a grade of pass must only be awarded only if, in
38.18 	the opinion of the faculty member teaching the course, the
38.19 	student has completed sufficient work and has demonstrated
38.20 	sufficient progress toward meeting course requirements to
38.21 	justify the grade;
38.22 	(2) to receive a refund of amounts paid for room, board,
38.23 	and fees attributable to the time period during which the
38.24 	student was serving in state or federal active military service
38.25 	or receiving medical treatment or dealing with the person's
38.26 	medical condition and did not use the facilities or services for
38.27 	which the amounts were paid.  Any refund of room, board, and
38.28 	fees is subject to the requirements of the state or federal
38.29 	financial aid programs of origination; and
38.30 	(3) if the student chooses to withdraw, the student has the
38.31 	right to be readmitted and reenrolled as a student at the
38.32 	postsecondary education institution, without penalty or
38.33 	redetermination of admission eligibility, within one year two
38.34 	years following release from the state or federal active
38.35 	military service or following completion of medical treatment or
38.36 	sufficient recovery from the person's medical condition.
39.1 	(b) (c) The protections in this section may be invoked as
39.2 	follows:
39.3 	(1) the qualified person or qualified student, or an
39.4 	appropriate officer from the military organization in which the
39.5 	person will be serving, or an appropriate medical authority or
39.6 	the person's authorized caregiver or family member,must give
39.7 	advance verbal or written notice that the person is being called
39.8 	or ordered to qualifying active military service or will be
39.9 	undertaking medical treatment or a period of recovery for a
39.10 	medical condition;
39.11 	(2) advance notice is not required if the giving of notice
39.12 	is precluded by military or medical necessity or, under all the
39.13 	relevant circumstances, the giving of notice is impossible or
39.14 	unreasonable; and
39.15 	(3) upon written request from the postsecondary
39.16 	institution, the person must provide written verification of the
39.17 	order to active service or of the existence of the medical
39.18 	condition or medical treatment.
39.19 	(c) (d) This section provides minimum protections for
39.20 	qualified students.  Nothing in this section prevents
39.21 	postsecondary institutions from providing additional options or
39.22 	protections to students who are called or ordered to state or
39.23 	federal active military service or are undertaking medical
39.24 	treatment or a period of recovery from a medical condition.
39.25 	
EFFECTIVE DATE. This section is effective the day
39.26 	following final enactment.

39.27 	Sec. 47. Minnesota Statutes 2004, section 299A.45,
39.28 	subdivision 1, is amended to read:
39.29 		Subdivision 1.Eligibility.  Following certification
39.30 	under section 299A.44 and compliance with this section and rules
39.31 	of the commissioner of public safety and the higher education
39.32 	services office, dependent children less than 23 years of age
39.33 	and the surviving spouse of a public safety officer killed in
39.34 	the line of duty on or after January 1, 1973, are eligible to
39.35 	receive educational benefits under this section.  To qualify for
39.36 	an award, they must be enrolled in undergraduate degree or
40.1 	certificate programs after June 30, 1990, at an eligible
40.2 	Minnesota institution as provided in section 136A.101,
40.3 	subdivision 4. A student who withdraws from enrollment for
40.4 	active military service is entitled to an additional semester or
40.5 	the equivalent of grant eligibility.Persons who have received
40.6 	a baccalaureate degree or have been enrolled full time or the
40.7 	equivalent of ten semesters or the equivalent, whichever occurs
40.8 	first, are no longer eligible.

40.9 	Sec. 48. Minnesota Statutes 2004, section 299A.45,
40.10 	subdivision 4, is amended to read:
40.11 		Subd. 4.Renewal.  Each award must be given for one
40.12 	academic year and is renewable for a maximum of eight semesters
40.13 	or the equivalent. A student who withdraws from enrollment for
40.14 	active military service is entitled to an additional semester or
40.15 	the equivalent of grant eligibility.An award must not be given
40.16 	to a dependent child who is 23 years of age or older on the
40.17 	first day of the academic year.

40.18 	Sec. 49. RECIPROCITY NEGOTIATIONS.
 40.19 		Subdivision 1.South dakota. The Higher Education
40.20 	Services Office must examine the feasibility of reinstating
40.21 	interstate payments in the Minnesota-South Dakota reciprocity
40.22 	program while maintaining the tuition reciprocity agreement.
40.23 	The office must examine the advantages and disadvantages of
40.24 	computing interstate payments under the reciprocity agreement
40.25 	and the impact of interstate payments on participating students,
40.26 	institutions, and the general fund of the two states.  The
40.27 	office must report on the feasibility and impacts of reciprocity
40.28 	payments to the committees of the legislature with
40.29 	responsibility for higher education by January 10, 2006.
40.30 		Subd. 2.Wisconsin. The Higher Education Services Office
40.31 	must, as soon as possible, commence negotiations with the state
40.32 	of Wisconsin on the tuition reciprocity agreement.  The
40.33 	negotiations must include the issue of the disparity between the
40.34 	tuition paid by Wisconsin residents and Minnesota residents at
40.35 	campuses of the University of Minnesota with a goal of reducing
40.36 	or eliminating the disparity.
41.1 	This section does not mandate the inclusion of any
41.2 	particular term in a tuition reciprocity agreement.

41.3 	Sec. 50. APPLICATION OF ELIGIBILITY.
 41.4 	The additional semester or the equivalent of grant
41.5 	eligibility under sections 19, 21, 47, and 48 applies to any
41.6 	student who withdrew from enrollment in a postsecondary
41.7 	institution after December 31, 2002, because the student was
41.8 	ordered to active military service as defined in Minnesota
41.9 	Statutes, section 190.05, subdivision 5b or 5c.

41.10 	Sec. 51. ADVISORY TASK FORCE ON PUBLIC POSTSECONDARY
41.11 	FUNDING.
 41.12 	The Higher Education Services Office shall convene an
41.13 	advisory task force to study the current postsecondary funding
41.14 	policy under Minnesota Statutes, sections 135A.01 to 135A.034.
41.15 	The task force must include the chief financial officers of the
41.16 	University of Minnesota and the Minnesota State Colleges and
41.17 	Universities and the commissioner of finance, or their
41.18 	designees.  The task force may include other members as selected
41.19 	by the Higher Education Services Office.  The task force must
41.20 	study and make specific recommendations on alternatives to the
41.21 	methods currently used by the postsecondary systems to implement
41.22 	the provisions of Minnesota Statutes, section 135A.031,
41.23 	subdivision 4.  The task force must submit its recommendations
41.24 	to the legislature and the governor by January 15, 2006.  The
41.25 	task force expires on June 30, 2007.

41.26 	Sec. 52. TRANSITIONAL APPOINTMENTS TO THE REGENT
41.27 	CANDIDATE ADVISORY COUNCIL.
 41.28 	Notwithstanding Minnesota Statutes, section 137.0245,
41.29 	subdivision 2, for appointments made in 2006 and 2008,
41.30 	appointing authorities under section 43 shall make transitional
41.31 	appointments to the regent candidate advisory council for terms
41.32 	of varying lengths so that by 2010, and each even year
41.33 	thereafter, the house of representatives and the senate shall
41.34 	appoint a total of seven members, including one student and the
41.35 	University of Minnesota Alumni Association or the University of
41.36 	Minnesota Foundation shall alternately appoint one member, but
42.1 	every third appointment cycle, each will appoint a member.
42.2 	Beginning with appointments in 2010, one-third of the members
42.3 	are appointed to six-year terms under Minnesota Statutes,
42.4 	section 137.0245, subdivision 2.

42.5 	Sec. 53. ALTERNATIVE FORMAT INSTRUCTIONAL MATERIAL
42.6 	NETWORK.
 42.7 	The Higher Education Services Office must convene a group
42.8 	with representatives from the Minnesota State Colleges and
42.9 	Universities, the University of Minnesota, and all sectors of
42.10 	private postsecondary education to develop a network containing
42.11 	postsecondary instructional material in an electronic format.
42.12 	The material on the network must be made available to Minnesota
42.13 	postsecondary institutions and to postsecondary students with
42.14 	disabilities that require a reading accommodation.  The group
42.15 	must establish standards for the instructional material that is
42.16 	housed on the network.  Instructional material must be in a
42.17 	format that is compatible with assistive technology used by
42.18 	students who require a reading accommodation.  Instructional
42.19 	material includes, but is not limited to, printed materials
42.20 	published or produced primarily for use by students in
42.21 	postsecondary educational courses.  It also includes
42.22 	instructional materials that are produced by postsecondary
42.23 	institutions for use in conjunction with a course of study.  The
42.24 	Higher Education Services Office must report to the committees
42.25 	in the house of representatives and senate with responsibility
42.26 	for higher education by January 15, 2006, on progress in
42.27 	developing the network and with recommendations on methods to
42.28 	meet the needs of students for instructional materials in
42.29 	alternative formats.

42.30 	Sec. 54. REVISOR INSTRUCTION.
 42.31 	The revisor of statutes shall change the terms "HESO" and
42.32 	"Higher Education Services Office" to "Minnesota Office of
42.33 	Higher Education" wherever in Minnesota Statutes and Minnesota
42.34 	Rules the terms appear.

42.35 	Sec. 55. REPEALER.
 42.36 	(a) Minnesota Statutes 2004, sections 136A.011, and
43.1 	136A.031, subdivision 1, are repealed.
43.2 	(b) Minnesota Rules, parts 4815.0100; 4815.0110; 4815.0120;
43.3 	4815.0130; 4815.0140; 4815.0150; 4815.0160; 4830.8100;
43.4 	4830.8110; 4830.8120; 4830.8130; 4830.8140; and 4830.8150, are
43.5 	repealed.

43.6 	ARTICLE 3
43.7 	PRIVATE CAREER SCHOOLS

43.8 	Section 1. Minnesota Statutes 2004, section 141.21, is
43.9 	amended by adding a subdivision to read:
43.10 		Subd. 6a.Multiple location. "Multiple location" means
43.11 	any site where classes or administrative services are provided
43.12 	to students and which has a street address that is different
43.13 	than the street address found on the school's private career
43.14 	school license.

43.15 	Sec. 2. Minnesota Statutes 2004, section 141.25,
43.16 	subdivision 3, is amended to read:
43.17 		Subd. 3.Application.  Application for a license shall be
43.18 	on forms prepared and furnished by the office, and shall include
43.19 	the following and other information as the office may require:
43.20 	(1) the title or name of the school, ownership and
43.21 	controlling officers, members, managing employees, and director;
43.22 	(2) the specific programs which will be offered and the
43.23 	specific purposes of the instruction;
43.24 	(3) the place or places where the instruction will be
43.25 	given;
43.26 	(4) a listing of the equipment available for instruction in
43.27 	each program;
43.28 	(5) the maximum enrollment to be accommodated with
43.29 	equipment available in each specified program;
43.30 	(6) the qualifications of instructors and supervisors in
43.31 	each specified program;
43.32 	(7) a current balance sheet, income statement, and adequate
43.33 	supporting documentation, prepared and certified by an
43.34 	independent public accountant or CPA;
43.35 	(8) copies of all media advertising and promotional
43.36 	literature and brochures or electronic display currently used or
44.1 	reasonably expected to be used by the school;
44.2 	(9) copies of all Minnesota enrollment agreement forms and
44.3 	contract forms and all enrollment agreement forms and contract
44.4 	forms used in Minnesota; and
44.5 	(10) gross income earned in the preceding year from student
44.6 	tuition, fees, and other required institutional charges, unless
44.7 	the school files with the office a surety bond equal to at least
44.8 	$50,000 $250,000 as described in subdivision 5.

44.9 	Sec. 3. Minnesota Statutes 2004, section 141.25,
44.10 	subdivision 5, is amended to read:
44.11 		Subd. 5.Bond.  (a) No license shall be issued to any
44.12 	school which maintains, conducts, solicits for, or advertises
44.13 	within the state of Minnesota any program, unless the applicant
44.14 	files with the office a continuous corporate surety bond written
44.15 	by a company authorized to do business in Minnesota conditioned
44.16 	upon the faithful performance of all contracts and agreements
44.17 	with students made by the applicant.
44.18 	(b) The amount of the surety bond shall be ten percent of
44.19 	the preceding year's gross income from student tuition, fees,
44.20 	and other required institutional charges, but in no event less
44.21 	than $10,000 nor greater than $50,000 $250,000, except that a
44.22 	school may deposit a greater amount at its own discretion.  A
44.23 	school in each annual application for licensure must compute the
44.24 	amount of the surety bond and verify that the amount of the
44.25 	surety bond complies with this subdivision, unless the school
44.26 	maintains a surety bond equal to at least $50,000 $250,000.  A
44.27 	school that operates at two or more locations may combine gross
44.28 	income from student tuition, fees, and other required
44.29 	institutional charges for all locations for the purpose of
44.30 	determining the annual surety bond requirement.  The gross
44.31 	tuition and fees used to determine the amount of the surety bond
44.32 	required for a school having a license for the sole purpose of
44.33 	recruiting students in Minnesota shall be only that paid to the
44.34 	school by the students recruited from Minnesota.
44.35 	(c) The bond shall run to the state of Minnesota and to any
44.36 	person who may have a cause of action against the applicant
45.1 	arising at any time after the bond is filed and before it is
45.2 	canceled for breach of any contract or agreement made by the
45.3 	applicant with any student.  The aggregate liability of the
45.4 	surety for all breaches of the conditions of the bond shall not
45.5 	exceed the principal sum deposited by the school under paragraph
45.6 	(b).  The surety of any bond may cancel it upon giving 60 days'
45.7 	notice in writing to the office and shall be relieved of
45.8 	liability for any breach of condition occurring after the
45.9 	effective date of cancellation.
45.10 	(d) In lieu of bond, the applicant may deposit with the
45.11 	commissioner of finance a sum equal to the amount of the
45.12 	required surety bond in cash, or securities as may be legally
45.13 	purchased by savings banks or for trust funds in an aggregate
45.14 	market value equal to the amount of the required surety bond.
45.15 	(e) Failure of a school to post and maintain the required
45.16 	surety bond or deposit under paragraph (d) may result in denial,
45.17 	suspension, or revocation of the school's license.

45.18 	Sec. 4. Minnesota Statutes 2004, section 141.25,
45.19 	subdivision 8, is amended to read:
45.20 		Subd. 8.Fees and terms of license.  An application for
45.21 	an initial license under sections 141.21 to 141.35 shall be
45.22 	accompanied by a nonrefundable application fee established by
45.23 	the office as provided in section 141.255that is sufficient to
45.24 	recover, but not exceed, its the administrative costs of the
45.25 	office.
45.26 	All licenses shall expire one year from the date issued by
45.27 	the office, except as provided in section 141.251.

45.28 	Sec. 5. Minnesota Statutes 2004, section 141.25,
45.29 	subdivision 9, is amended to read:
45.30 		Subd. 9.Catalog, brochure, or electronic display.
 45.31 	Before a license is issued to a school, the school shall furnish
45.32 	to the office a catalog, brochure, or electronic display
45.33 	including:
45.34 	(1) identifying data, such as volume number and date of
45.35 	publication;
45.36 	(2) name and address of the school and its governing body
46.1 	and officials;
46.2 	(3) a calendar of the school showing legal holidays,
46.3 	beginning and ending dates of each course quarter, term, or
46.4 	semester, and other important dates;
46.5 	(4) the school policy and regulations on enrollment
46.6 	including dates and specific entrance requirements for each
46.7 	program;
46.8 	(5) the school policy and regulations about leave,
46.9 	absences, class cuts, make-up work, tardiness, and interruptions
46.10 	for unsatisfactory attendance;
46.11 	(6) the school policy and regulations about standards of
46.12 	progress for the student including the grading system of the
46.13 	school, the minimum grades considered satisfactory, conditions
46.14 	for interruption for unsatisfactory grades or progress, a
46.15 	description of any probationary period allowed by the school,
46.16 	and conditions of reentrance for those dismissed for
46.17 	unsatisfactory progress;
46.18 	(7) the school policy and regulations about student conduct
46.19 	and conditions for dismissal for unsatisfactory conduct;
46.20 	(8) a detailed schedule of fees, charges for tuition,
46.21 	books, supplies, tools, student activities, laboratory fees,
46.22 	service charges, rentals, deposits, and all other charges;
46.23 	(9) the school policy and regulations, including an
46.24 	explanation of section 141.271, about refunding tuition, fees,
46.25 	and other charges if the student does not enter the program,
46.26 	withdraws from the program, or the program is discontinued;
46.27 	(10) a description of the available facilities and
46.28 	equipment;
46.29 	(11) a course outline syllabus for each course offered
46.30 	showing course objectives, subjects or units in the course, type
46.31 	of work or skill to be learned, and approximate time, hours, or
46.32 	credits to be spent on each subject or unit;
46.33 	(12) the school policy and regulations about granting
46.34 	credit for previous education and preparation;
46.35 	(13) a procedure for investigating and resolving student
46.36 	complaints; and
47.1 	(14) the name and address of the Minnesota Higher Education
47.2 	Services Office.
47.3 	A school that is exclusively a distance education school is
47.4 	exempt from clauses (3) and (5).

47.5 	Sec. 6. Minnesota Statutes 2004, section 141.25,
47.6 	subdivision 12, is amended to read:
47.7 		Subd. 12.Permanent records.  A school licensed under
47.8 	this chapter and located in Minnesota shall maintain a permanent
47.9 	record for each student for 50 years from the last date of the
47.10 	student's attendance.  A school licensed under this chapter and
47.11 	offering distance instruction to a student located in Minnesota
47.12 	shall maintain a permanent record for each Minnesota student for
47.13 	50 years from the last date of the student's attendance.
47.14 	Records include school transcripts, documents, and files
47.15 	containing student data about academic credits earned, courses
47.16 	completed, grades awarded, degrees awarded, and periods of
47.17 	attendance.  To preserve permanent records, a school shall
47.18 	submit a plan that meets the following requirements:
47.19 	(1) at least one copy of the records must be held in a
47.20 	secure, fireproof depository;
47.21 	(2) an appropriate official must be designated to provide a
47.22 	student with copies of records or a transcript upon request;
47.23 	(3) an alternative method, approved by the office,of
47.24 	complying with clauses (1) and (2) must be established if the
47.25 	school ceases to exist; and
47.26 	(4) a continuous surety bond must be filed with the office
47.27 	in an amount not to exceed $20,000 if the school has no binding
47.28 	agreement for preserving student records or a trust must be
47.29 	arranged if the school ceases to exist.

47.30 	Sec. 7. Minnesota Statutes 2004, section 141.251, is
47.31 	amended to read:
47.32 	141.251 LICENSE RENEWAL.
47.33 		Subdivision 1.Application. Application for renewal of a
47.34 	license must be made at least 30 60 days before expiration of
47.35 	the current license on a form provided by the office.  A renewal
47.36 	application shall be accompanied by a nonrefundable fee
48.1 	established by the office as provided in section 141.255that is
48.2 	sufficient to recover, but does not exceed, its the 
48.3 	administrative costs of the office.
48.4 		Subd. 2.Conditions. The office shall adopt rules
48.5 	establishing the conditions for renewal of a license.  The
48.6 	conditions shall permit two levels of renewal based on the
48.7 	record of the school.  A school that has demonstrated the
48.8 	quality of its program and operation through longevity and
48.9 	performance in the state may renew its license based on a
48.10 	relaxed standard of scrutiny.  A school that has been in
48.11 	operation in Minnesota for a limited period of time or that has
48.12 	not performed adequately on performance indicators shall renew
48.13 	its license based on a strict standard of scrutiny.  The office
48.14 	shall specify minimum longevity standards and performance
48.15 	indicators that must be met before a school may be permitted to
48.16 	operate under the relaxed standard of scrutiny.  The performance
48.17 	indicators used in this determination shall include, but not be
48.18 	limited to:  degree granting status, regional or national
48.19 	accreditation, loan default rates, placement rate of graduates,
48.20 	student withdrawal rates, audit results, student complaints, and
48.21 	school status with the United States Department of Education.
48.22 	Schools that meet the requirements established in rule shall be
48.23 	required to submit a full relicensure report once every four
48.24 	years, and in the interim years will be exempt from the
48.25 	requirements of section 141.25, subdivision 3, clauses (4), (5),
48.26 	and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and
48.27 	4880.2100, subpart 4.

48.28 	Sec. 8. [141.255] FEES.
48.29 		Subdivision 1.Initial licensure fee. The office
48.30 	processing fee for an initial licensure application is:
48.31 	(1) $1,500 for a school that will offer no more than one
48.32 	program during its first year of operation;
48.33 	(2) $2,000 for a school that will offer two or more
48.34 	nondegree level programs during its first year of operation; and 
48.35 	(3) $2,500 for a school that will offer two or more degree
48.36 	level programs during its first year of operation.
49.1 		Subd. 2.Renewal licensure fee; late fee. (a) The office
49.2 	processing fee for a renewal licensure application is:
49.3 	(1) for a category A school, as determined by the office,
49.4 	the fee is $865 if the school offers one program or $1,150 if
49.5 	the school offers two or more programs; and 
49.6 	(2) for a category B or C school, as determined by the
49.7 	office, the fee is $430 if the school offers one program or $575
49.8 	if the school offers two or more programs.
49.9 	(b) If a license renewal application is not received by the
49.10 	office by the close of business at least 60 days before the
49.11 	expiration of the current license, a late fee of $100 per
49.12 	business day shall be assessed.
49.13 		Subd. 3.Degree level addition fee. The office
49.14 	processing fee for adding a degree level to an existing program
49.15 	is $2,000 per program.
49.16 		Subd. 4.Program addition fee. The office processing fee
49.17 	for adding a program that represents a significant departure in
49.18 	the objectives, content, or method of delivery of programs that
49.19 	are currently offered by the school is $500 per program.
49.20 		Subd. 5.Visit or consulting fee. If the office
49.21 	determines that a fact-finding visit or outside consultant is
49.22 	necessary to review or evaluate any new or revised program, the
49.23 	office shall be reimbursed for the expenses incurred related to
49.24 	the review as follows:
49.25 	(1) $300 for the team base fee or for a paper review
49.26 	conducted by a consultant if the office determines that a
49.27 	fact-finding visit is not required;
49.28 	(2) $300 for each day or part thereof on site per team
49.29 	member; and 
49.30 	(3) the actual cost of customary meals, lodging, and
49.31 	related travel expenses incurred by team members.
49.32 		Subd. 6.Modification fee. The fee for modification of
49.33 	any existing program is $100 and is due if there is:
49.34 	(1) an increase or decrease of 25 percent or more, from the
49.35 	original date of program approval, in clock hours, credit hours,
49.36 	or calendar length of an existing program;
50.1 	(2) a change in academic measurement from clock hours to
50.2 	credit hours or vice versa; or 
50.3 	(3) an addition or alteration of courses that represent a
50.4 	25 percent change or more in the objectives, content, or methods
50.5 	of delivery.
50.6 		Subd. 7.Solicitor permit fee. The solicitor permit fee
50.7 	is $350 and must be paid annually.
50.8 		Subd. 8.Multiple location fee. Schools wishing to
50.9 	operate at multiple locations must pay:
50.10 	(1) $250 per location, for two to five locations; and 
50.11 	(2) $50 per location, for six or more locations.
50.12 		Subd. 9.Student transcript fee. The fee for a student
50.13 	transcript requested from a closed school whose records are held
50.14 	by the office is $10, with a maximum of five transcripts per
50.15 	request.
50.16 		Subd. 10.Public office documents; copies. The office
50.17 	shall establish rates for copies of any public office document.

50.18 	Sec. 9. Minnesota Statutes 2004, section 141.26,
50.19 	subdivision 5, is amended to read:
50.20 		Subd. 5.Fee.  The initial and renewal application for
50.21 	each permit shall be accompanied by a nonrefundable fee as
50.22 	established by the office under section 141.255.

50.23 	Sec. 10. Minnesota Statutes 2004, section 141.271, is
50.24 	amended by adding a subdivision to read:
50.25 		Subd. 1b.Short-term programs. Licensed schools
50.26 	conducting programs not exceeding 40 hours in length shall not
50.27 	be required to make a full refund once the programs have
50.28 	commenced and shall be allowed to prorate any refund based on
50.29 	the actual length of the program as stated in the school catalog
50.30 	or advertisements and the number of hours attended by the
50.31 	student.

50.32 	Sec. 11. Minnesota Statutes 2004, section 141.271,
50.33 	subdivision 4, is amended to read:
50.34 		Subd. 4.Resident schools.  When a student has been
50.35 	accepted by a school offering a resident program and gives
50.36 	written notice of cancellation, or the school has actual notice
51.1 	of a student's nonattendance after the start of the period of
51.2 	instruction for which the student has been charged, but before
51.3 	completion of 75 percent of the period of instruction, the
51.4 	amount charged for tuition, fees, and all other charges shall be
51.5 	prorated based on number of days in the term as a portion of the
51.6 	total charges for tuition, fees, and all other charges.  An
51.7 	additional 25 percent of the total cost of the period of
51.8 	instruction may be added, but shall not exceed $100.  After
51.9 	completion of 75 percent of the period of instruction for which
51.10 	the student has been charged, no refunds are required.

51.11 	Sec. 12. Minnesota Statutes 2004, section 141.271,
51.12 	subdivision 7, is amended to read:
51.13 		Subd. 7.Equipment and supplies.  The fair market retail
51.14 	price, if separately stated in the catalog and contract or
51.15 	enrollment agreement, of equipment or supplies furnished to the
51.16 	student, which the student fails to return in condition suitable
51.17 	for resale, and which may reasonably be resold,within ten
51.18 	business days following cancellation may be retained by the
51.19 	school and may be deducted from the total cost for tuition, fees
51.20 	and all other charges when computing refunds.
51.21 	An overstatement of the fair market retail price of any
51.22 	equipment or supplies furnished the student shall be considered
51.23 	inconsistent with this provision.

51.24 	Sec. 13. Minnesota Statutes 2004, section 141.271,
51.25 	subdivision 10, is amended to read:
51.26 		Subd. 10.Cancellation occurrence.  Written notice of
51.27 	cancellation shall take place on the date the letter of
51.28 	cancellation is postmarked or, in the cases where the notice is
51.29 	hand carried, it shall occur on the date the notice is delivered
51.30 	to the school. If a student has not attended classes for a
51.31 	period of 21 consecutive days, the student is considered to have
51.32 	withdrawn from school for all purposes as of the student's last
51.33 	documented date of attendance.

51.34 	Sec. 14. Minnesota Statutes 2004, section 141.271, is
51.35 	amended by adding a subdivision to read:
51.36 		Subd. 14.Closed school. In the event a school closes
52.1 	for any reason during a term and interrupts and terminates
52.2 	classes during that term, all tuition for the term shall be
52.3 	refunded to the students or the appropriate state or federal
52.4 	agency or private lender that had provided any funding for the
52.5 	term and any outstanding obligation of the student for the term
52.6 	is canceled.

52.7 	Sec. 15. Minnesota Statutes 2004, section 141.28,
52.8 	subdivision 1, is amended to read:
52.9 		Subdivision 1.Not to advertise state approval.  Schools,
52.10 	agents of schools, and solicitors may not advertise or represent
52.11 	in writing or orally that such school is approved or accredited
52.12 	by the state of Minnesota, except that any school, agent, or
52.13 	solicitor may advertise that the school and solicitor have been
52.14 	duly licensed by the state.using the following language:
52.15 	"(Name of school) is licensed as a private career school with
52.16 	the Minnesota Higher Education Services Office.  Licensure is
52.17 	not an endorsement of the institution.  Credits earned at the
52.18 	institution may not transfer to all other institutions.  The
52.19 	educational programs may not meet the needs of every student or
52.20 	employer." 

52.21 	Sec. 16. Minnesota Statutes 2004, section 141.28, is
52.22 	amended by adding a subdivision to read:
52.23 		Subd. 6.Financial aid payments. (a) All schools must
52.24 	collect, assess, and distribute funds received from loans or
52.25 	other financial aid as provided in this subdivision.
52.26 	(b) Student loans or other financial aid funds received
52.27 	from federal, state, or local governments or administered in
52.28 	accordance with federal student financial assistance programs
52.29 	under title IV of the Higher Education Act of 1965, as amended,
52.30 	United States Code, title 20, chapter 28, must be collected and
52.31 	applied as provided by applicable federal, state, or local law
52.32 	or regulation.
52.33 	(c) Student loans or other financial aid assistance
52.34 	received from a bank, finance or credit card company, or other
52.35 	private lender must be collected or disbursed as provided in
52.36 	paragraphs (d) and (e).
53.1 	(d) Loans or other financial aid payments for amounts
53.2 	greater than $3,000 must be disbursed:
53.3 	(1) in two equal disbursements, if the term length is more
53.4 	than four months.  The loan or payment amounts may be disbursed
53.5 	no earlier than the first day the student attends class with the
53.6 	remainder to be disbursed halfway through the class or term; or 
53.7 	(2) in three equal disbursements, if the term length is
53.8 	more than six months.  The loan or payment amounts may be
53.9 	disbursed no earlier than the first day the student attends
53.10 	class, one-third of the way through the class or term, and
53.11 	two-thirds of the way through the class or term.
53.12 	(e) Loans or other financial aid payments for amounts less
53.13 	than $3,000 may be disbursed as a single disbursement on the
53.14 	first day a student attends class, regardless of term length.
53.15 	(f) No school may enter into a contract or agreement with,
53.16 	or receive any money from, a bank, finance or credit card
53.17 	company, or other private lender, unless the private lender
53.18 	follows the requirements for disbursements provided in
53.19 	paragraphs (d) and (e).

53.20 	Sec. 17. Minnesota Statutes 2004, section 141.29,
53.21 	subdivision 3, is amended to read:
53.22 		Subd. 3.Powers and duties.  The office shall have (in
53.23 	addition to the powers and duties now vested therein by law) the
53.24 	following powers and duties:
53.25 	(a) To negotiate and enter into interstate reciprocity
53.26 	agreements with similar agencies in other states, if in the
53.27 	judgment of the office such agreements are or will be helpful in
53.28 	effectuating the purposes of Laws 1973, Chapter 714;
53.29 	(b) To grant conditional school license for periods of less
53.30 	than one year if in the judgment of the office correctable
53.31 	deficiencies exist at the time of application and when refusal
53.32 	to issue school license would adversely affect currently
53.33 	enrolled students;
53.34 	(c) The office may upon its own motion, and shall upon the
53.35 	verified complaint in writing of any person setting forth fact
53.36 	which, if proved, would constitute grounds for refusal or
54.1 	revocation under Laws 1973, Chapter 714, investigate the actions
54.2 	of any applicant or any person or persons holding or claiming to
54.3 	hold a license or permit.  However, before proceeding to a
54.4 	hearing on the question of whether a license or permit shall be
54.5 	refused, revoked or suspended for any cause enumerated in
54.6 	subdivision 1, the office may shall grant a reasonable time to
54.7 	the holder of or applicant for a license or permit to correct
54.8 	the situation.  If within such time the situation is corrected
54.9 	and the school is in compliance with the provisions of this
54.10 	chapter, no further action leading to refusal, revocation, or
54.11 	suspension shall be taken.

54.12 	Sec. 18. Minnesota Statutes 2004, section 141.30, is
54.13 	amended to read:
54.14 	141.30 INSPECTION.
54.15 	(a) The office or a delegate may inspect the instructional
54.16 	books and records, classrooms, dormitories, tools, equipment and
54.17 	classes of any school or applicant for license at any reasonable
54.18 	time.  The office may require the submission of a certified
54.19 	public audit, or if there is no such audit available the office
54.20 	or a delegate may inspect the financial books and records of the
54.21 	school.  In no event shall such financial information be used by
54.22 	the office to regulate or set the tuition or fees charged by the
54.23 	school.
54.24 	(b) Data obtained from an inspection of the financial
54.25 	records of a school or submitted to the office as part of a
54.26 	license application or renewal are nonpublic data as defined in
54.27 	section 13.02, subdivision 9.  Data obtained from inspections
54.28 	may be disclosed to other members of the office, to law
54.29 	enforcement officials, or in connection with a legal or
54.30 	administrative proceeding commenced to enforce a requirement of
54.31 	law.

54.32 	Sec. 19. Minnesota Statutes 2004, section 141.35, is
54.33 	amended to read:
54.34 	141.35 EXEMPTIONS.
54.35 	Sections 141.21 to 141.35 shall not apply to the following:
54.36 	(1) public postsecondary institutions;
55.1 	(2) private postsecondary institutions registered under
55.2 	sections 136A.61 to 136A.71 that are nonprofit, or that are for
55.3 	profit and registered under sections 136A.61 to 136A.71 as of
55.4 	December 31, 1998, or are approved to offer exclusively
55.5 	baccalaureate or postbaccalaureate programs;
55.6 	(3) schools of nursing accredited by the state Board of
55.7 	Nursing or an equivalent public board of another state or
55.8 	foreign country;
55.9 	(4) private schools complying with the requirements of
55.10 	section 120A.22, subdivision 4;
55.11 	(5) courses taught to students in a valid apprenticeship
55.12 	program taught by or required by a trade union;
55.13 	(6) schools exclusively engaged in training physically or
55.14 	mentally handicapped persons for the state of Minnesota;
55.15 	(7) schools licensed by boards authorized under Minnesota
55.16 	law to issue licenses;
55.17 	(8) schools and educational programs, or training programs,
55.18 	contracted for by persons, firms, corporations, government
55.19 	agencies, or associations, for the training of their own
55.20 	employees, for which no fee is charged the employee;
55.21 	(9) schools engaged exclusively in the teaching of purely
55.22 	avocational, recreational, or remedial subjects as determined by
55.23 	the office;
55.24 	(10) driver training schools and instructors as defined in
55.25 	section 171.33, subdivisions 1 and 2;
55.26 	(11) classes, courses, or programs conducted by a bona fide
55.27 	trade, professional, or fraternal organization, solely for that
55.28 	organization's membership;
55.29 	(12) programs in the fine arts provided by organizations
55.30 	exempt from taxation under section 290.05 and registered with
55.31 	the attorney general under chapter 309.  For the purposes of
55.32 	this clause, "fine arts" means activities resulting in artistic
55.33 	creation or artistic performance of works of the imagination
55.34 	which are engaged in for the primary purpose of creative
55.35 	expression rather than commercial sale or employment.  In making
55.36 	this determination the office may seek the advice and
56.1 	recommendation of the Minnesota Board of the Arts;
56.2 	(13) classes, courses, or programs intended to fulfill the
56.3 	continuing education requirements for licensure or certification
56.4 	in a profession, that have been approved by a legislatively or
56.5 	judicially established board or agency responsible for
56.6 	regulating the practice of the profession, and that are offered
56.7 	primarily exclusively to an individual practicing the
56.8 	profession;
56.9 	(14) classes, courses, or programs intended to prepare
56.10 	students to sit for undergraduate, graduate, postgraduate, or
56.11 	occupational licensing and occupational entrance examinations;
56.12 	(15) classes, courses, or programs providing 16 or fewer
56.13 	clock hours of instruction that are not part of the curriculum
56.14 	for an occupation or entry level employment;
56.15 	(16) classes, courses, or programs providing instruction in
56.16 	personal development, modeling, or acting;
56.17 	(17) training or instructional programs, in which one
56.18 	instructor teaches an individual student, that are not part of
56.19 	the curriculum for an occupation or are not intended to prepare
56.20 	a person for entry level employment; and
56.21 	(18) schools with no physical presence in Minnesota, as
56.22 	determined by the office,engaged exclusively in offering
56.23 	distance instruction that are located in and regulated by other
56.24 	states or jurisdictions.

56.25 	Sec. 20. REGULATION OF PRIVATE AND OUT-OF-STATE
56.26 	POSTSECONDARY INSTITUTIONS.
 56.27 	The Higher Education Services Office must convene a working
56.28 	group to develop recommendations to revise the regulation, under
56.29 	Minnesota Statutes, sections 136A.61 to 136A.71, and chapter
56.30 	141, of private and out-of-state postsecondary institutions that
56.31 	offer instruction in Minnesota or to Minnesota residents who are
56.32 	not required to leave the state.  Members of the working group
56.33 	are appointed by the director of the Higher Education Services
56.34 	Office and must include one or more representatives of the
56.35 	Minnesota Private College Council, the Minnesota Career College
56.36 	Association, and other interested institutions that are
57.1 	registered or licensed under state law.
57.2 	In developing recommendations, the working group must
57.3 	consider the office's mission to protect both consumers of
57.4 	postsecondary education and the state's interests.  The
57.5 	recommendations must address the provision of degrees,
57.6 	certificates, diplomas, and training offered by for-profit and
57.7 	nonprofit institutions in Minnesota and outside of Minnesota, in
57.8 	classrooms or online and regulatory issues under federal law.
57.9 	The recommendations may include other relevant issues as
57.10 	determined by the working group.
57.11 	The office must provide preliminary recommendations to the
57.12 	committees of the legislature with jurisdiction over higher
57.13 	education policy by November 15, 2005, and must provide final
57.14 	recommendations by January 15, 2006.

57.15 	ARTICLE 4
57.16 	ROCHESTER UNIVERSITY DEVELOPMENT

57.17 	Section 1. ROCHESTER UNIVERSITY DEVELOPMENT COMMITTEE.
 57.18 		Subdivision 1.Establishment. The Rochester University
57.19 	Development Committee is established to research and make
57.20 	recommendations to the governor and legislature on the creation
57.21 	of a mission-driven postsecondary educational institution in the
57.22 	Rochester area that meets the educational needs of the region
57.23 	and the state and that capitalizes on the unique opportunities
57.24 	for educational partnerships presented in the Rochester area.
57.25 		Subd. 2.Membership. (a) The committee is composed of 11
57.26 	members, to be appointed by the governor as follows:
57.27 	(1) a trustee of the Minnesota State Colleges and
57.28 	Universities, or the trustee's designee;
57.29 	(2) a regent of the University of Minnesota, or the
57.30 	regent's designee;
57.31 	(3) six persons from the Rochester area representing
57.32 	business, health and medical sciences, and technology;
57.33 	(4) the commissioner of finance, or the commissioner's
57.34 	designee;
57.35 	(5) one person who by training or experience has special
57.36 	expertise in postsecondary finance and planning; and 
58.1 	(6) one person who by training or experience has special
58.2 	expertise in postsecondary academic planning and programming.
58.3 	(b) Before the first meeting of the committee, the governor
58.4 	shall select one person from the committee who shall serve as
58.5 	chair.
58.6 		Subd. 3.Compensation and removal. Appointments to the
58.7 	committee are not subject to Minnesota Statutes, section 15.0597.
58.8 	Members of the committee are not entitled to reimbursement under
58.9 	Minnesota Statutes, section 15.059, subdivision 6.  Members may
58.10 	be removed and vacancies filled pursuant to Minnesota Statutes,
58.11 	section 15.059, subdivision 4.  The director of the Higher
58.12 	Education Services Office may provide administrative support to
58.13 	the committee.
58.14 		Subd. 4.Duties. (a) The committee shall develop a
58.15 	proposal for establishment and implementation of the
58.16 	university.  The committee's report must include recommendations
58.17 	on:
58.18 	(1) the mission and focus of the university;
58.19 	(2) the nature of undergraduate and graduate programs to be
58.20 	offered by the university;
58.21 	(3) site and facility needs of the university;
58.22 	(4) funding sources and opportunities for the university;
58.23 	(5) operational needs of the university;
58.24 	(6) alliances or other types of cooperative arrangements
58.25 	with public and private institutions;
58.26 	(7) governance structure of the university; and 
58.27 	(8) mechanisms to ensure that the university's programs are
58.28 	aligned with the unique needs and opportunities of the Rochester
58.29 	area, and that programs take advantage of opportunities
58.30 	presented by regional business and industry.
58.31 	(b) If the committee recommends any programmatic changes
58.32 	that result in institutional realignments, the committee must
58.33 	consult with the representatives of affected employees and
58.34 	address the continuation of collective bargaining and
58.35 	contractual rights and benefits including accumulated sick
58.36 	leave, vacation time, seniority, time to tenure, separation or
59.1 	retirement benefits, and pension plan coverage.
59.2 	(c) The committee may also research and provide
59.3 	recommendations on sites for the university facilities and
59.4 	programs.  The committee shall recommend any changes to
59.5 	Minnesota law required to implement recommendations of the
59.6 	committee.
59.7 		Subd. 5.Endowment. The committee may establish an
59.8 	endowment for the betterment and operation of the university.
59.9 	The endowment shall be under the fiscal control of the Higher
59.10 	Education Services Office and all money and earnings of the
59.11 	endowment shall be held in the Rochester university development
59.12 	account.  The endowment may be used to leverage private funds.
59.13 	The committee may recommend:  (1) whether the principal of the
59.14 	endowment fund should be maintained inviolate; (2) under what
59.15 	conditions, if any, the principal may be used to make
59.16 	expenditures for the university; and (3) the treatment of any
59.17 	nonstate contributions to the endowment.
59.18 		Subd. 6.Report. The committee must issue a report with
59.19 	recommendations to the governor and the legislature by January
59.20 	15, 2006.  Data collected, created, or maintained by the
59.21 	committee in preparing this report is protected nonpublic data
59.22 	under Minnesota Statutes, section 13.02, subdivision 13.
59.23 		Subd. 7.Sunset. The committee expires on December 31,
59.24 	2007.

59.25 	Sec. 2. ROCHESTER UNIVERSITY DEVELOPMENT ACCOUNT.
 59.26 	A Rochester University development account is created in
59.27 	the state treasury in the special revenue fund.  Money in this
59.28 	account is appropriated to the Higher Education Services Office
59.29 	for allocation to the committee established in section 1 and for
59.30 	the development activities outlined in section 3.  The office
59.31 	shall serve as fiscal agent for the committee established in
59.32 	section 1.

59.33 	Sec. 3. ROCHESTER UNIVERSITY DEVELOPMENT AND
59.34 	IMPLEMENTATION.
 59.35 	With the approval of the Higher Education Services Office,
59.36 	money in the Rochester university development account may be
60.1 	used to:
60.2 	(1) provide additional planning and development funds, if
60.3 	needed;
60.4 	(2) provide initial funding for academic program
60.5 	development;
60.6 	(3) provide funding related to academic facilities, if
60.7 	needed; or 
60.8 	(4) establish an endowment for the institution under
60.9 	section 1, subdivision 5.

60.10 	Sec. 4. EFFECTIVE DATE.
 60.11 	This article is effective the day following final enactment.

60.12 	ARTICLE 5
60.13 	SUPPLEMENTAL APPROPRIATIONS

60.14 	Section 1. Higher education supplemental appropriations.
60.15 	The appropriations in this article are available after House
60.16 	File No. 1664 is passed by the house of representatives and are
60.17 	added to the appropriations in article 1.
60.18 	The sums in the columns marked "APPROPRIATIONS" are appropriated
60.19 	from the general fund, or other named fund, to the agencies and
60.20 	for the purposes specified in this article.  The listing of an
60.21 	amount under the figure "2006" or "2007" in this article
60.22 	indicates that the amount is appropriated to be available for
60.23 	the fiscal year ending June 30, 2006, or June 30, 2007,
60.24 	respectively.  "The first year" is fiscal year 2006.  "The
60.25 	second year" is fiscal year 2007.  "The biennium" is fiscal
60.26 	years 2006 and 2007.

60.27 	Sec. 2. BOARD OF TRUSTEES OF THE MINNESOTA
60.28 	STATE COLLEGES AND UNIVERSITIES
 60.29 		Subdivision 1.Total
60.30 	Appropriation                         12,725,000    ...,...,...
60.31 	The amounts that may be spent from this
60.32 	appropriation for each purpose are
60.33 	specified in the following subdivisions.
60.34 	The legislature estimates that
60.35 	instructional expenditures will be
60.36 	$825,994,000 in the first year and
60.37 	$811,653,000 in the second year.  The
60.38 	legislature estimates that
60.39 	noninstructional expenditures will be
60.40 	$59,828,000 in the first year and
60.41 	$58,790,000 in the second year.
61.1 		Subd. 2.General Appropriation        12,725,000    ...,...,...

61.2 	Sec. 3. BOARD OF REGENTS OF THE
61.3 	UNIVERSITY OF MINNESOTA
 61.4 		Subdivision 1.Total
61.5 	Appropriation                          9,500,000      3,225,000
61.6 	The amounts that may be spent from this
61.7 	appropriation for each purpose are
61.8 	specified in the following subdivisions.
61.9 		Subd. 2.Operations and
61.10 	Maintenance                            9,500,000      3,225,000
61.11 	The legislature estimates that
61.12 	instructional expenditures will be
61.13 	$461,344,000 in the first year and
61.14 	$468,229,000 in the second year.  The
61.15 	legislature estimates that
61.16 	noninstructional expenditures will be
61.17 	$295,503,000 in the first year and
61.18 	$299,913,000 in the second year.
61.19 	An additional $3,225,000 the second
61.20 	year is for academic initiatives that
61.21 	are part of the board's biosciences for
61.22 	a healthy society initiative.
61.23 		Subd. 3.Base Funding
61.24 	Notwithstanding article 1, section 4,
61.25 	subdivision 2a, base funding for the
61.26 	university shall be increased by
61.27 	$3,000,000 each year.