SF 3058

2nd Engrossment - 84th Legislature (2005 - 2006)

Posted on 12/15/2009 12:00 a.m.

A bill for an act
relating to higher education; determining instructional service base; providing
adjustments for enrollments; regulating tuition paid by seniors for certain
courses; determining resident tuition; defining certain terms; eliminating obsolete
language; authorizing the office to enter into certain agreements; amending
certain data classification provisions; providing for loan rehabilitation; providing
for temporary total disability for certain loans; amending work-study payment
eligibility; authorizing the Minnesota State Colleges and Universities Board
of Trustees to control certain depository services; limiting approval of certain
higher education degrees; requiring certain studies; authorizing construction of
an academic building; amending Minnesota Statutes 2004, sections 135A.031,
subdivision 7, by adding subdivisions; 135A.053, subdivision 2; 136A.15, by
adding a subdivision; 136A.16, by adding a subdivision; 136A.162; 136A.1701,
by adding a subdivision; 136A.233, subdivision 3; 136F.02, subdivision 1;
136F.42, subdivision 1; 136F.71, subdivision 2, by adding a subdivision;
Minnesota Statutes 2005 Supplement, sections 135A.52, subdivisions 1, 2;
136A.1701, subdivision 12; proposing coding for new law in Minnesota Statutes,
chapters 135A; 136A; repealing Minnesota Statutes 2004, sections 135A.031,
subdivision 5; 135A.033; 136A.15, subdivision 5; 136A.1702; Minnesota
Statutes 2005 Supplement, section 135A.031, subdivisions 3, 4; Minnesota
Rules, parts 4850.0011, subparts 9, 10, 14, 27; 4850.0014, subpart 1.

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

Section 1.

Minnesota Statutes 2004, section 135A.031, is amended by adding a
subdivision to read:

new text begin Subd. 3a. new text end

new text begin Determination of instructional services base. new text end

new text begin The instructional services
base for each public postsecondary system is the sum of: (1) the state share; (2) the
legislatively estimated tuition for the second year of the most recent biennium; and (3)
adjustments for inflation and enrollment changes as calculated in subdivision 4a.
new text end

Sec. 2.

Minnesota Statutes 2004, section 135A.031, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Adjustment for enrollments. new text end

new text begin (a) Each public postsecondary system's
instructional services base shall be adjusted for estimated changes in enrollments. For
each two percent change in estimated full-year equivalent enrollment, an adjustment shall
be made to 65 percent of the instructional services base. The remaining 35 percent of the
instructional services base is not subject to the adjustment in this subdivision.
new text end

new text begin (b) When student enrollment is used for budgeting purposes, the student enrollment
shall be measured in full-year equivalents and shall include only enrollments in courses
that award credit or otherwise satisfy any of the requirements of an academic or vocational
program.
new text end

new text begin (c) The enrollment adjustment shall be made for each year of the subsequent
biennium. The base enrollment year is the 1995 fiscal year enrollment. The base
enrollment shall be updated for each two percent change in estimated full-year equivalent
enrollment. If the actual enrollment differs from the estimated enrollment, an adjustment
shall be made in the next biennium.
new text end

Sec. 3.

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

Subd. 7.

Reports.

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

Sec. 4.

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

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

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

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

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

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

new text begin (c) To qualify for resident tuition under this section an individual who is not a citizen
or permanent resident of the United States must provide the college or university with
an affidavit that the individual will file an application to become a permanent resident at
the earliest opportunity the individual is eligible to do so.
new text end

new text begin EFFECTIVE DATE. new text end

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

Sec. 5.

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

Subd. 2.

Performance and accountability.

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

Sec. 6.

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

Subdivision 1.

Fees and tuition.

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

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

Sec. 7.

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

Subd. 2.

Term; income of senior citizens.

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

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

Sec. 8.

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

new text begin Subd. 10. new text end

new text begin Eligible cosigner. new text end

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

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

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

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

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

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

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

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

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

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

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

new text begin The office may establish alternative credit requirements using credit scoring.
new text end

Sec. 9.

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

new text begin Subd. 16. new text end

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

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

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

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

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

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

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

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

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

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

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

Sec. 10.

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

136A.162 CLASSIFICATION OF DATA.

deleted text begin All deleted text end new text begin (a) Except as provided in paragraphs (b) and (c), new text end data on applicants for financial
assistance collected and used by the Higher Education Services Office for student
financial aid programs administered by that office deleted text begin shall be classified as deleted text end new text begin are new text end private data
on individuals deleted text begin under deleted text end new text begin as defined in new text end section 13.02, subdivision 12. deleted text begin Exceptions to this
classification are that:
deleted text end

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

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

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

(1) the lender-assigned borrower identification number;

(2) the name and address of borrower;

(3) the name and address of cosigner;

(4) the date the account is opened;

(5) the outstanding account balance;

(6) the dollar amount past due;

(7) the number of payments past due;

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

(9) the type of account;

(10) the responsibility for the account; and

(11) the status or remarks code.

Sec. 11.

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

Subd. 12.

Eligible student.

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

Sec. 12.

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

new text begin Subd. 13. new text end

new text begin Cosigner requirement. new text end

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

Sec. 13.

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

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

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

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

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

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

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

Sec. 14.

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

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

Sec. 15.

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

Subd. 3.

Payments.

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

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

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

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

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

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

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

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

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

Sec. 16.

Minnesota Statutes 2004, section 136F.02, subdivision 1, is amended to read:

Subdivision 1.

Membership.

The board consists of 15 members appointed by the
governor with the advice and consent of the senate. At least one member of the board
must be a resident of each congressional district. Three members must be students who are
enrolled at least half time in a degree, diploma, or certificate program or have graduated
from an institution governed by the board within one year of the date of appointment. The
student members shall include: one member from a community college, one member from
a state university, and one member from a technical college. The remaining members must
be appointed to represent the state at large. new text begin At least one member must be a representative
of organized labor and at least one member must be a representative of business.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
applies to appointments to the board made on and after that date, and must be complied
with as soon as vacancies can be filled.
new text end

Sec. 17.

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

Subdivision 1.

Time reporting.

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

Sec. 18.

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

Subd. 2.

Activity funds.

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

Sec. 19.

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

new text begin Subd. 4. new text end

new text begin Banking services. new text end

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

Sec. 20. new text begin TEMPORARY PROVISION FOR APPROVAL OF CERTAIN HIGHER
EDUCATION DEGREES.
new text end

new text begin Subdivision 1. new text end

new text begin Supersede. new text end

new text begin This section supersedes any conflicting Minnesota
statute or rule.
new text end

new text begin Subd. 2. new text end

new text begin Degree approval. new text end

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

new text begin Subd. 3. new text end

new text begin Approval criteria. new text end

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

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

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

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

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

new text begin Subd. 4. new text end

new text begin Effect of approval. new text end

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

new text begin Subd. 5. new text end

new text begin Notice of changes. new text end

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

new text begin Subd. 6. new text end

new text begin Expiration. new text end

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

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 21. new text begin HIGHER EDUCATION TEXTBOOK COST STUDY.
new text end

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

Sec. 22. new text begin MINNESOTA STATE UNIVERSITY, MANKATO, CONSTRUCTION
AUTHORIZATION.
new text end

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

Sec. 23. new text begin UNIVERSITY OF MINNESOTA LICENSING AND MINNESOTA
MARKET IMPACT STUDY.
new text end

new text begin The University of Minnesota is requested to establish a task force to study the
market impact on Minnesota producers of agricultural products from the University of
Minnesota licensing germplasm and to make recommendations to the legislature and the
Board of Regents on ways to mitigate any negative impacts on Minnesota businesses that
arise from University of Minnesota license agreements.
new text end

new text begin The task force must include:
new text end

new text begin (1) a representative of the University of Minnesota;
new text end

new text begin (2) a representative of the Department of Agriculture, serving as the chair; and
new text end

new text begin (3) representatives of the Minnesota Farm Bureau, the Minnesota Farmers Union,
agricultural commodity organizations, the Minnesota Apple Growers Association, the
Minnesota Fruit and Vegetable Growers Association, the Minnesota Nursery Landscape
Association, and the Minnesota Grown Program. The chair may also invite participation
from other staff and faculty of the University of Minnesota as necessary to fulfill the
purpose of the task force. Members serve on the task force on a voluntary basis.
new text end

new text begin The task force is requested to report to the committees of the legislature with
responsibility for higher education no later than January 15, 2007.
new text end

Sec. 24. new text begin REVISOR'S INSTRUCTION.
new text end

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

Sec. 25. new text begin REPEALER.
new text end

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