HF 1063

2nd Unofficial Engrossment - 85th Legislature (2007 - 2008)

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

1.1A bill for an act 1.2relating to higher education; appropriating money; amending certain Minnesota 1.3Office of Higher Education provisions; requiring a risk analysis; establishing 1.4new grant and loan repayment programs; amending higher education programs; 1.5requiring certain studies; making technical changes; requiring summary statistics 1.6in required reports; repealing certain data sharing and collecting requirements; 1.7modifying financial aid programs; establishing the Minnesota GI Bill program; 1.8establishing the Achieve Scholarship Program; regulating private higher 1.9education institutions; providing penalties; amending certain grant programs; 1.10eliminating obsolete references; authorizing control of certain decreasing 1.11students' share of attendance; increasing revenue bond limits; authorizing control 1.12of certain deposits; authorizing lease agreements; authorizing interest rate swap; 1.13providing for the Textbook Disclosure, Pricing, and Access Act;amending 1.14Minnesota Statutes 2006, sections 13.322, subdivision 3; 41D.01, subdivision 1.151; 135A.01; 135A.031, subdivisions 1, 7; 135A.034, subdivision 1; 135A.51, 1.16subdivision 2; 135A.52, subdivisions 1, 2; 136A.031, subdivision 5; 136A.08, 1.17subdivision 7; 136A.101, subdivisions 4, 5a; 136A.121, subdivisions 5, 7a, by 1.18adding a subdivision; 136A.125, subdivisions 2, 4; 136A.15, subdivisions 1, 1.196; 136A.16, subdivision 8, by adding a subdivision; 136A.1702; 136A.233, 1.20subdivision 3; 136A.29, subdivision 9; 136A.61; 136A.62, subdivision 3; 1.21136A.63; 136A.64; 136A.65; 136A.657, by adding a subdivision; 136A.66; 1.22136A.67; 136A.68; 136A.69; 136A.861, subdivisions 1, 2, 3, 6; 136F.02, 1.23subdivision 1; 136F.03, subdivisions 3, 4; 136F.42, subdivision 1; 136F.58; 1.24136F.71, subdivision 2, by adding a subdivision; 136G.11, subdivision 5; 1.25137.0245, subdivisions 1, 4; 137.0246; 141.21, subdivisions 1a, 5; 141.25, 1.26subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 1.27141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; 197.775, 1.28subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 1.29135A; 136A; 137; 141; 197; repealing Minnesota Statutes 2006, sections 1.30135A.031, subdivisions 2, 3, 4, 5, 6; 135A.032; 135A.033; 135A.045; 135A.053; 1.31136A.07; 136A.08, subdivision 8; Laws 2001, First Special Session chapter 1, 1.32article 1, sections 3, subdivision 3; 4, subdivision 5. 1.33BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.1ARTICLE 1 2.2HIGHER EDUCATION APPROPRIATIONS 2.3 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 2.4     new text begin Subdivision 1. new text end new text begin Summary By Fund. new text end new text begin The amounts shown in this subdivision new text end 2.5 new text begin summarize direct appropriations, by fund, made in this article. new text end 2.6 new text begin SUMMARY BY FUND new text end 2.7 new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end 2.8 new text begin General new text end new text begin $ new text end new text begin 1,572,748,000 new text end new text begin $ new text end new text begin 1,590,760,000 new text end new text begin $ new text end new text begin 3,163,508,000 new text end 2.9 new text begin Health Care Access new text end new text begin $ new text end new text begin 2,157,000 new text end new text begin $ new text end new text begin 2,157,000 new text end new text begin $ new text end new text begin 4,314,000 new text end 2.10 new text begin Total new text end new text begin $ new text end new text begin 1,574,905,000 new text end new text begin $ new text end new text begin 1,592,917,000 new text end new text begin $ new text end new text begin 3,167,822,000 new text end 2.11     new text begin Subd. 2. new text end new text begin Summary By Agency - All Funds. new text end new text begin The amounts shown in this subdivision new text end 2.12 new text begin summarize direct appropriations, by agency, made in this article. new text end 2.13 new text begin SUMMARY BY AGENCY - ALL FUNDS new text end 2.14 new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end 2.15 2.16 new text begin Minnesota Office of Higher new text end new text begin Education new text end new text begin $ new text end new text begin 189,079,000 new text end new text begin $ new text end new text begin 189,140,000 new text end new text begin $ new text end new text begin 378,219,000 new text end 2.17 2.18 2.19 new text begin Board of Trustees of the new text end new text begin Minnesota State Colleges and new text end new text begin Universities new text end new text begin $ new text end new text begin 665,952,000 new text end new text begin $ new text end new text begin 690,228,000 new text end new text begin $ new text end new text begin 1,356,180,000 new text end 2.20 2.21 new text begin Board of Regents of the new text end new text begin University of Minnesota new text end new text begin $ new text end new text begin 712,672,000 new text end new text begin $ new text end new text begin 706,299,000 new text end new text begin $ new text end new text begin 1,418,971,000 new text end 2.22 new text begin Mayo Medical Foundation new text end new text begin $ new text end new text begin 1,202,000 new text end new text begin $ new text end new text begin 1,250,000 new text end new text begin $ new text end new text begin 2,452,000 new text end 2.23 2.24 new text begin Department of Veterans new text end new text begin Affairs new text end new text begin $ new text end new text begin 6,000,000 new text end new text begin $ new text end new text begin 6,000,000 new text end new text begin $ new text end new text begin 12,000,000 new text end 2.25 new text begin Total new text end new text begin $ new text end new text begin 1,574,905,000 new text end new text begin $ new text end new text begin 1,592,917,000 new text end new text begin $ new text end new text begin 3,167,822,000 new text end 2.26 Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end 2.27     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 2.28 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 2.29 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 2.30 new text begin for each purpose. The figures "2008" and "2009" used in this article mean that the new text end 2.31 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2008, or new text end 2.32 new text begin June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal new text end 2.33 new text begin year 2009. "The biennium" is fiscal years 2008 and 2009. new text end 2.34 new text begin APPROPRIATIONS new text end 2.35 new text begin Available for the Year new text end 2.36 new text begin Ending June 30 new text end 2.37 new text begin 2008 new text end new text begin 2009 new text end 3.1 3.2 Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER new text end new text begin EDUCATION new text end 3.3 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 189,079,000 new text end new text begin $ new text end new text begin 189,140,000 new text end 3.4 new text begin The amounts that may be spent for each new text end 3.5 new text begin purpose are specified in the following new text end 3.6 new text begin subdivisions. new text end 3.7 new text begin Subd. 2. new text end new text begin State Grants new text end new text begin 150,762,000 new text end new text begin 150,510,000 new text end 3.8 new text begin If the appropriation in this subdivision for new text end 3.9 new text begin either year is insufficient, the appropriation new text end 3.10 new text begin for the other year is available for it. new text end 3.11 new text begin For the biennium, the tuition maximum for new text end 3.12 new text begin students in four-year programs is $9,838 in new text end 3.13 new text begin each year for students in four-year programs, new text end 3.14 new text begin and for students in two-year programs, is new text end 3.15 new text begin $6,114 in the first year and $5,808 in the new text end 3.16 new text begin second year. new text end 3.17 new text begin This appropriation sets the living and new text end 3.18 new text begin miscellaneous expense allowance at $5,900 new text end 3.19 new text begin each year. new text end 3.20 new text begin Subd. 3. new text end new text begin Safety Officers Survivors new text end new text begin 100,000 new text end new text begin 100,000 new text end 3.21 new text begin This appropriation is to provide educational new text end 3.22 new text begin benefits under Minnesota Statutes, section new text end 3.23 new text begin 299A.45, to dependent children under age 23 new text end 3.24 new text begin and to the spouses of public safety officers new text end 3.25 new text begin killed in the line of duty. new text end 3.26 new text begin If the appropriation in this subdivision for new text end 3.27 new text begin either year is insufficient, the appropriation new text end 3.28 new text begin for the other year is available for it. new text end 3.29 new text begin Subd. 4. new text end new text begin Interstate Tuition Reciprocity new text end new text begin 2,000,000 new text end new text begin 2,000,000 new text end 3.30 new text begin If the appropriation in this subdivision for new text end 3.31 new text begin either year is insufficient, the appropriation new text end 3.32 new text begin for the other year is available to meet new text end 3.33 new text begin reciprocity contract obligations. new text end 4.1 new text begin Subd. 5. new text end new text begin State Work Study new text end new text begin 12,444,000 new text end new text begin 12,444,000 new text end 4.2 new text begin Subd. 6. new text end new text begin Child Care Grants new text end new text begin 6,184,000 new text end new text begin 6,184,000 new text end 4.3 new text begin Subd. 7. new text end new text begin Minitex new text end new text begin 5,631,000 new text end new text begin 5,631,000 new text end 4.4 new text begin Subd. 8. new text end new text begin MnLINK Gateway new text end new text begin 400,000 new text end new text begin 400,000 new text end 4.5 new text begin Subd. 9. new text end new text begin Learning Network of Minnesota new text end new text begin 4,800,000 new text end new text begin 4,800,000 new text end 4.6 new text begin Subd. 10. new text end new text begin Minnesota College Savings Plan new text end new text begin 1,020,000 new text end new text begin 1,020,000 new text end 4.7 new text begin Subd. 11. new text end new text begin Midwest Higher Education Compact new text end new text begin 90,000 new text end new text begin 90,000 new text end 4.8 4.9 new text begin Subd. 12. new text end new text begin Intervention for College Attendance new text end new text begin Program Grants new text end new text begin 624,000 new text end new text begin 624,000 new text end 4.10 new text begin No more than $50,000 of this appropriation new text end 4.11 new text begin each year may be used for administrative new text end 4.12 new text begin expenses for the program under Minnesota new text end 4.13 new text begin Statutes, section new text end new text begin . new text end 4.14 new text begin Subd. 13. new text end new text begin Achieve Scholarship Program new text end new text begin 400,000 new text end new text begin 935,000 new text end 4.15 new text begin (a) Of this amount, $200,000 in fiscal new text end 4.16 new text begin year 2008 and $200,000 in fiscal year new text end 4.17 new text begin 2009 are for transfer to the University of new text end 4.18 new text begin Minnesota and $200,000 in fiscal year 2008 new text end 4.19 new text begin and $200,000 in fiscal year 2009 are for new text end 4.20 new text begin transfer to the Minnesota State Colleges new text end 4.21 new text begin and Universities to provide courses under new text end 4.22 new text begin Minnesota Statutes, section 124D.09, new text end 4.23 new text begin subdivision 10, to high school students living new text end 4.24 new text begin in remote and underserved areas where new text end 4.25 new text begin the school district lacks the resources to new text end 4.26 new text begin provide academically rigorous educational new text end 4.27 new text begin opportunities, such as Advanced Placement new text end 4.28 new text begin and International Baccalaureate programs. new text end 4.29 new text begin Courses may be delivered by a high school new text end 4.30 new text begin or postsecondary faculty member, online, or new text end 4.31 new text begin through distance education. Students who new text end 4.32 new text begin successfully complete a course must receive new text end 5.1 new text begin college credit at no cost to the student. The new text end 5.2 new text begin office must report to the committees of the new text end 5.3 new text begin legislature with responsibility for higher new text end 5.4 new text begin education finance by January 15, 2009, on the new text end 5.5 new text begin program outcomes with recommendations on new text end 5.6 new text begin continuing and expanding the program. new text end 5.7 new text begin (b) Of this amount, $535,000 in fiscal year new text end 5.8 new text begin 2009 is for Achieve scholarships under new text end 5.9 new text begin Minnesota Statutes, section 136A.127. The new text end 5.10 new text begin funding base for this program is $1,071,000 new text end 5.11 new text begin in fiscal year 2010 and $1,605,000 in fiscal new text end 5.12 new text begin year 2011. Up to $12,400 of this amount may new text end 5.13 new text begin be used for administration of the program new text end 5.14 new text begin in the 2008-2009 biennium. Up to $63,200 new text end 5.15 new text begin in the 2010-2011 biennium may be used for new text end 5.16 new text begin administration of the program. new text end 5.17 new text begin Subd. 14. new text end new text begin Other Programs new text end new text begin 1,500,000 new text end new text begin 1,200,000 new text end 5.18 new text begin This appropriation includes funding for new text end 5.19 new text begin student and parent information and the get new text end 5.20 new text begin ready outreach program. new text end 5.21 new text begin $240,000 each year is for grants to increase new text end 5.22 new text begin campus-community collaboration and service new text end 5.23 new text begin learning statewide, including operations of new text end 5.24 new text begin the Minnesota campus compact, grants to new text end 5.25 new text begin member institutions and grants for member new text end 5.26 new text begin institution initiatives. For every $1 in state new text end 5.27 new text begin funding, grant recipients must contribute $2 new text end 5.28 new text begin in campus or community-based support. new text end 5.29 new text begin $250,000 in the first year is for a grant to new text end 5.30 new text begin Augsburg College for the purpose of its new text end 5.31 new text begin Step UP program to provide educational new text end 5.32 new text begin opportunities to chemically dependent new text end 5.33 new text begin students and to work with other public new text end 5.34 new text begin and private colleges in Minnesota to help new text end 6.1 new text begin replicate this program. This is a onetime new text end 6.2 new text begin appropriation. new text end 6.3 new text begin $100,000 each year must be transferred to new text end 6.4 new text begin the Loan Repayment Assistance Program, new text end 6.5 new text begin Inc., for loan repayment assistance awards new text end 6.6 new text begin to attorneys who enter public interest law to new text end 6.7 new text begin ensure that low-income and disadvantaged new text end 6.8 new text begin populations have access to competent legal new text end 6.9 new text begin counsel. new text end 6.10 new text begin $50,000 in fiscal year 2008 is for the new text end 6.11 new text begin Washington Center for Internships and new text end 6.12 new text begin Academic Seminars for a pilot program new text end 6.13 new text begin for scholarships for students enrolling in a new text end 6.14 new text begin Minnesota four-year college or university new text end 6.15 new text begin beginning in the fall semester of 2007. new text end 6.16 new text begin The appropriation shall be available only new text end 6.17 new text begin on a dollar-for-dollar match basis for new text end 6.18 new text begin funds received from nonstate sources. new text end 6.19 new text begin The Washington Center for Internships new text end 6.20 new text begin and Academic Seminars must work with new text end 6.21 new text begin Minnesota Colleges and Universities to new text end 6.22 new text begin ensure that the scholarships will go to new text end 6.23 new text begin economically disadvantaged Minnesota new text end 6.24 new text begin students, students with demonstrated need of new text end 6.25 new text begin financial assistance, and students traditionally new text end 6.26 new text begin underrepresented in higher education, and new text end 6.27 new text begin will work to ensure racial, ethnic, and gender new text end 6.28 new text begin diversity, as well as urban/rural balance. This new text end 6.29 new text begin is a onetime appropriation. new text end 6.30 new text begin $250,000 each year is for the teacher new text end 6.31 new text begin education and compensation helps (TEACH) new text end 6.32 new text begin and the Minnesota early childhood teacher new text end 6.33 new text begin programs in Minnesota Statutes, section new text end 6.34 new text begin 136A.126. new text end 6.35 6.36 new text begin Subd. 15. new text end new text begin United Family Medicine Residency new text end new text begin Program new text end new text begin 414,000 new text end new text begin 431,000 new text end 7.1 new text begin For a grant to the United Family Medicine new text end 7.2 new text begin residency program. This appropriation new text end 7.3 new text begin shall be used to support up to 18 resident new text end 7.4 new text begin physicians each year in family practice at new text end 7.5 new text begin United Family Medicine residency programs new text end 7.6 new text begin and shall prepare doctors to practice family new text end 7.7 new text begin care medicine in underserved rural and new text end 7.8 new text begin urban areas of the state. It is intended that new text end 7.9 new text begin this program will improve health care in new text end 7.10 new text begin underserved communities, provide affordable new text end 7.11 new text begin access to appropriate medical care, and new text end 7.12 new text begin manage the treatment of patients in a more new text end 7.13 new text begin cost-effective manner. The funding base for new text end 7.14 new text begin this program is $448,000 in fiscal year 2010 new text end 7.15 new text begin and $467,000 in fiscal year 2011. new text end 7.16 new text begin Subd. 16. new text end new text begin Agency Administration new text end new text begin 2,710,000 new text end new text begin 2,771,000 new text end 7.17 new text begin Subd. 17. new text end new text begin Balances Forward new text end 7.18 new text begin A balance in the first year under this section new text end 7.19 new text begin does not cancel, but is available for the new text end 7.20 new text begin second year. new text end 7.21 new text begin Subd. 18. new text end new text begin Transfers new text end 7.22 new text begin The Minnesota Office of Higher Education new text end 7.23 new text begin may transfer unencumbered balances from new text end 7.24 new text begin the appropriations in this section to the state new text end 7.25 new text begin grant appropriation, the interstate tuition new text end 7.26 new text begin reciprocity appropriation, the child care new text end 7.27 new text begin grant appropriation, the state work study new text end 7.28 new text begin appropriation, the public safety officers' new text end 7.29 new text begin survivors appropriation, and the Minnesota new text end 7.30 new text begin college savings plan appropriation. Transfers new text end 7.31 new text begin from the child care or state work study new text end 7.32 new text begin appropriations may only be made to the new text end 7.33 new text begin extent there is a projected surplus in the new text end 7.34 new text begin appropriation. A transfer may be made new text end 7.35 new text begin only with the prior written approval of the new text end 8.1 new text begin commissioner of finance and prior written new text end 8.2 new text begin notice to the chairs of the senate and house new text end 8.3 new text begin committees with jurisdiction over higher new text end 8.4 new text begin education finance. new text end 8.5 new text begin Subd. 19. new text end new text begin TANF Work Study new text end 8.6 new text begin Notwithstanding any rule to the contrary, new text end 8.7 new text begin work study jobs funded by a TANF new text end 8.8 new text begin appropriation do not require employer new text end 8.9 new text begin matching funds. new text end 8.10 8.11 8.12 Sec. 4. new text begin BOARD OF TRUSTEES OF THE new text end new text begin MINNESOTA STATE COLLEGES AND new text end new text begin UNIVERSITIES new text end 8.13 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 665,952,000 new text end new text begin $ new text end new text begin 690,228,000 new text end 8.14 new text begin The amounts that may be spent for each new text end 8.15 new text begin purpose are specified in the following new text end 8.16 new text begin subdivisions. new text end 8.17 new text begin Subd. 2. new text end new text begin General Appropriation new text end new text begin 665,952,000 new text end new text begin 690,228,000 new text end 8.18 new text begin This appropriation includes a permanent new text end 8.19 new text begin increase in each year for Cook County new text end 8.20 new text begin Higher Education to provide educational new text end 8.21 new text begin programs and academic support services to new text end 8.22 new text begin remote regions in northeastern Minnesota. new text end 8.23 new text begin Cook County Higher Education must new text end 8.24 new text begin continue to provide information to the Board new text end 8.25 new text begin of Trustees of the Minnesota State Colleges new text end 8.26 new text begin and Universities on the number of students new text end 8.27 new text begin served, credit hours delivered, and services new text end 8.28 new text begin provided to students. new text end 8.29 new text begin This appropriation includes funding new text end 8.30 new text begin for operation and maintenance of the new text end 8.31 new text begin system, including technology infrastructure new text end 8.32 new text begin improvements to deliver more online new text end 8.33 new text begin programs and services to students; and new text end 8.34 new text begin funding for initiatives to recruit and retain new text end 9.1 new text begin students traditionally underrepresented in new text end 9.2 new text begin higher education to help prepare students new text end 9.3 new text begin for college, encourage their enrollment, and new text end 9.4 new text begin provide services that enable them to continue new text end 9.5 new text begin successfully to graduation. new text end 9.6 new text begin If the Board of Trustees decides to implement new text end 9.7 new text begin other "Strategic Advancements" initiatives, new text end 9.8 new text begin funding must be from internal reallocation of new text end 9.9 new text begin existing resources or enhanced productivity. new text end 9.10 new text begin It is the expectation of the legislature that the new text end 9.11 new text begin board will hold tuition increases to no more new text end 9.12 new text begin than four percent per year for fiscal years new text end 9.13 new text begin 2008 and 2009. new text end 9.14 new text begin One percent of the appropriation in this new text end 9.15 new text begin subdivision is available after the board new text end 9.16 new text begin demonstrates to the commissioner of finance new text end 9.17 new text begin that the Minnesota State Colleges and new text end 9.18 new text begin Universities system has achieved at least new text end 9.19 new text begin three of the following five goals: new text end 9.20 new text begin (1) increase by at least three percent, new text end 9.21 new text begin compared to fiscal year 2005, the number of new text end 9.22 new text begin students who take college level courses in new text end 9.23 new text begin science, technology, engineering, and math; new text end 9.24 new text begin (2) increase by at least two percent, compared new text end 9.25 new text begin to fiscal year 2005, enrollment in courses new text end 9.26 new text begin at the four existing center of excellence new text end 9.27 new text begin programs; new text end 9.28 new text begin (3) increase by at least 700, compared to new text end 9.29 new text begin fiscal year 2007, the number of students new text end 9.30 new text begin trained on the use of electronic medical new text end 9.31 new text begin record technology; new text end 9.32 new text begin (4) increase by at least ten percent, compared new text end 9.33 new text begin to fiscal year 2007, the number of students new text end 9.34 new text begin taking online courses or the number of online new text end 9.35 new text begin courses offered; and new text end 10.1 new text begin (5) expand by at least ten percent, compared new text end 10.2 new text begin to calendar year 2006, the use of "awards of new text end 10.3 new text begin excellence" or other initiatives that reward new text end 10.4 new text begin member institutions, faculty, administrators, new text end 10.5 new text begin or staff for innovations designed to advance new text end 10.6 new text begin excellence and efficiency. new text end 10.7 new text begin By October 1, 2007, the Board of Trustees new text end 10.8 new text begin and the Office of Higher Education must new text end 10.9 new text begin agree on specific numerical indicators and new text end 10.10 new text begin definitions for each of the five goals that will new text end 10.11 new text begin be used to demonstrate the Minnesota State new text end 10.12 new text begin Colleges and Universities' attainment of each new text end 10.13 new text begin goal. new text end 10.14 new text begin On or before April 1, 2008, the Board new text end 10.15 new text begin of Trustees must report to the legislative new text end 10.16 new text begin committees with primary jurisdiction over new text end 10.17 new text begin higher education finance and policy the new text end 10.18 new text begin progress of the Minnesota State Colleges and new text end 10.19 new text begin Universities toward attaining the goals. new text end 10.20 new text begin This appropriation includes funding to new text end 10.21 new text begin eliminate nonresident undergraduate tuition new text end 10.22 new text begin at Century College, Saint Paul College, new text end 10.23 new text begin Minneapolis Community and Technical new text end 10.24 new text begin College, Rochester Community and new text end 10.25 new text begin Technical College, Inver Hills Community new text end 10.26 new text begin College, St. Cloud Technical College, new text end 10.27 new text begin and Normandale Community College. In new text end 10.28 new text begin addition, the Board of Trustees must not new text end 10.29 new text begin implement a nonresident undergraduate new text end 10.30 new text begin tuition rate at a community college, technical new text end 10.31 new text begin college, or consolidated community and new text end 10.32 new text begin technical college that does not have such a new text end 10.33 new text begin rate as of May 1, 2007, except for a student new text end 10.34 new text begin who is a resident of a state that has entered new text end 10.35 new text begin into a reciprocity agreement under Minnesota new text end 11.1 new text begin Statutes, section 136A.08. This paragraph new text end 11.2 new text begin expires June 30, 2009. new text end 11.3 new text begin This appropriation includes funding new text end 11.4 new text begin to identify and improve on practices new text end 11.5 new text begin for selecting and purchasing textbooks new text end 11.6 new text begin and course materials that are used by new text end 11.7 new text begin students. The board, in collaboration with new text end 11.8 new text begin the Minnesota State University Student new text end 11.9 new text begin Association (MSUSA) and the Minnesota new text end 11.10 new text begin State College Student Association (MSCSA) new text end 11.11 new text begin must develop and implement pilot projects new text end 11.12 new text begin with this appropriation to address the new text end 11.13 new text begin financial burden that textbook prices and new text end 11.14 new text begin requirements place on students. These new text end 11.15 new text begin projects may include textbook rental new text end 11.16 new text begin programs, cooperative purchasing efforts, new text end 11.17 new text begin training, and education and awareness new text end 11.18 new text begin programs for students and faculty on cost new text end 11.19 new text begin considerations and textbook options. The new text end 11.20 new text begin student associations must be fully involved in new text end 11.21 new text begin the development and implementation of any new text end 11.22 new text begin project using this appropriation. The board new text end 11.23 new text begin must report, with input from MSUSA and new text end 11.24 new text begin MSCSA, to the committees of the legislature new text end 11.25 new text begin responsible for higher education finance by new text end 11.26 new text begin February 15, 2009, on the success of the pilot new text end 11.27 new text begin projects. This money is available until June new text end 11.28 new text begin 30, 2009. new text end 11.29 new text begin This appropriation includes funding for new text end 11.30 new text begin community-based energy development new text end 11.31 new text begin pilot projects at Mesabi Range Technical new text end 11.32 new text begin and Community College, the Minnesota new text end 11.33 new text begin West Community and Technical College, new text end 11.34 new text begin Riverland Community College, and Inver new text end 11.35 new text begin Hills Community College. Inver Hills new text end 11.36 new text begin Community College must partner with new text end 12.1 new text begin the city of Inver Grove Heights on a new text end 12.2 new text begin community-based pilot project and each new text end 12.3 new text begin of the other campuses must establish new text end 12.4 new text begin partnerships for community-based energy new text end 12.5 new text begin development pilot projects that involve new text end 12.6 new text begin students and faculty. An allocation for the new text end 12.7 new text begin pilot project is available to the participating new text end 12.8 new text begin institutions and the partnerships for the new text end 12.9 new text begin biennium ending June 30, 2009. new text end 12.10 new text begin This appropriation includes funding for a new text end 12.11 new text begin modular clean-room research and training new text end 12.12 new text begin facility at St. Paul College. This is a onetime new text end 12.13 new text begin appropriation and is available until expended. new text end 12.14 new text begin This appropriation includes funding for a new text end 12.15 new text begin pilot project with the Northeast Minnesota new text end 12.16 new text begin Higher Education District and high schools new text end 12.17 new text begin in its area. Up to one-half of the first year's new text end 12.18 new text begin appropriation may be used to purchase new text end 12.19 new text begin equipment that is necessary to reestablish new text end 12.20 new text begin a technical education curriculum in the new text end 12.21 new text begin area high schools to provide the students new text end 12.22 new text begin with the technical skills necessary for the new text end 12.23 new text begin workforce. Students from area high schools new text end 12.24 new text begin may also access the facilities and faculty of new text end 12.25 new text begin the Northeast Minnesota Higher Education new text end 12.26 new text begin District for state-of-the-art technical new text end 12.27 new text begin education opportunities, including MnSCU's new text end 12.28 new text begin 2+2 Pathways initiative. new text end 12.29 new text begin This appropriation includes funding for St. new text end 12.30 new text begin Paul College to collaborate with the United new text end 12.31 new text begin Auto Workers Local 879 to purchase a Ford new text end 12.32 new text begin Ranger pickup truck to retrofit to run on a new text end 12.33 new text begin battery-powered motor. This vehicle must new text end 12.34 new text begin be retrofitted to serve as a prototype that new text end 12.35 new text begin could be mass-produced at the St. Paul new text end 13.1 new text begin Ford assembly plant. This is a onetime new text end 13.2 new text begin appropriation. new text end 13.3 new text begin This appropriation includes funding for a new text end 13.4 new text begin grant to a Minnesota public postsecondary new text end 13.5 new text begin institution with a total student enrollment new text end 13.6 new text begin under 7,000 students, that has an existing new text end 13.7 new text begin women's hockey team competing in new text end 13.8 new text begin Division I in the Western Collegiate Hockey new text end 13.9 new text begin Association. The institution may use the new text end 13.10 new text begin grant for equipment, facility improvements, new text end 13.11 new text begin travel and compensation for coaches, new text end 13.12 new text begin trainers, and other necessary personnel. This new text end 13.13 new text begin is a onetime appropriation. new text end 13.14 new text begin This appropriation includes funding for a new text end 13.15 new text begin study of student demand and employer needs new text end 13.16 new text begin for higher education in the Mesabi Range new text end 13.17 new text begin region of northeastern Minnesota including new text end 13.18 new text begin the cities of Grand Rapids through Eveleth new text end 13.19 new text begin to Ely. The board must contract for the new text end 13.20 new text begin study which must be done in cooperation new text end 13.21 new text begin with the Board of Regents of the University new text end 13.22 new text begin of Minnesota, the University of Minnesota, new text end 13.23 new text begin Duluth, and the Range Association of new text end 13.24 new text begin Municipalities and Schools, which must act new text end 13.25 new text begin as the lead agency in coordinating the study. new text end 13.26 new text begin The study must specify how the identified new text end 13.27 new text begin regional educational needs can be met by the new text end 13.28 new text begin University of Minnesota, by the Minnesota new text end 13.29 new text begin State Colleges and Universities, or through new text end 13.30 new text begin degree programs offered jointly. The final new text end 13.31 new text begin report must be submitted to the committees new text end 13.32 new text begin of the legislature responsible for higher new text end 13.33 new text begin education finance by January 15, 2008, with new text end 13.34 new text begin recommendations and plans for the region. new text end 14.1 new text begin This appropriation includes funding for a new text end 14.2 new text begin project to establish a center at the Mesabi new text end 14.3 new text begin Range Community and Technical College in new text end 14.4 new text begin cooperation with the Iron Range Resources new text end 14.5 new text begin and Rehabilitation Board (IRRRB) to new text end 14.6 new text begin enhance the use of eFolio Minnesota by new text end 14.7 new text begin providing on-site and Internet-based support new text end 14.8 new text begin and technical assistance to eFolio users to new text end 14.9 new text begin promote workforce development and access new text end 14.10 new text begin to workforce information generated through new text end 14.11 new text begin the eFolio Minnesota system. The board new text end 14.12 new text begin must enhance the eFolio Minnesota system new text end 14.13 new text begin as necessary to serve these purposes and new text end 14.14 new text begin report annually to the legislative committees new text end 14.15 new text begin responsible for higher education finance on new text end 14.16 new text begin the outcomes of the center's activities. new text end 14.17 new text begin Any amounts in the base budget allocated new text end 14.18 new text begin to pay competitive compensation under new text end 14.19 new text begin Laws 2005, chapter 107, article 1, section 3, new text end 14.20 new text begin subdivision 2, may also be used to recruit or new text end 14.21 new text begin retain quality faculty. new text end 14.22 new text begin Subd. 3. new text end new text begin Board Policies new text end 14.23 new text begin (a) The board must adopt a policy that allows new text end 14.24 new text begin students to add the cost of textbooks and new text end 14.25 new text begin required course materials purchased at a new text end 14.26 new text begin campus bookstore, owned by or operated new text end 14.27 new text begin under a contract with the campus, to the new text end 14.28 new text begin existing waivers or payment plans for tuition new text end 14.29 new text begin and fees. new text end 14.30 new text begin (b) By January 1, 2009, the board must adopt new text end 14.31 new text begin a policy setting the maximum number of new text end 14.32 new text begin semester credits required for a baccalaureate new text end 14.33 new text begin degree at 120 semester credits or the new text end 14.34 new text begin equivalent and the number of semester new text end 14.35 new text begin credits required for an associate degree at new text end 15.1 new text begin 60 semester credits or the equivalent. The new text end 15.2 new text begin board policy may provide for a process new text end 15.3 new text begin for granting waivers for specific degree new text end 15.4 new text begin programs in which industry or professional new text end 15.5 new text begin accreditation standards require a greater new text end 15.6 new text begin number of semester credits. new text end 15.7 15.8 Sec. 5. new text begin BOARD OF REGENTS OF THE new text end new text begin UNIVERSITY OF MINNESOTA new text end 15.9 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 712,672,000 new text end new text begin $ new text end new text begin 706,299,000 new text end 15.10 new text begin Appropriations by Fund new text end 15.11 new text begin 2008 new text end new text begin 2009 new text end 15.12 new text begin General new text end new text begin 710,515,000 new text end new text begin 704,142,000 new text end 15.13 new text begin Health Care Access new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end 15.14 new text begin The amounts that may be spent for each new text end 15.15 new text begin purpose are specified in the following new text end 15.16 new text begin subdivisions. new text end 15.17 new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end new text begin 619,127,000 new text end new text begin 638,754,000 new text end 15.18 new text begin This appropriation includes funding for new text end 15.19 new text begin operation and maintenance of the system new text end 15.20 new text begin including amounts to advance the University new text end 15.21 new text begin of Minnesota's efforts to sustain quality new text end 15.22 new text begin and competitiveness; and funding for the new text end 15.23 new text begin "Advancing Education" initiatives including new text end 15.24 new text begin an Ojibwe Indian language program on the new text end 15.25 new text begin Duluth campus. new text end 15.26 new text begin This appropriation includes funding to new text end 15.27 new text begin establish banded tuition at the Morris, new text end 15.28 new text begin Crookston, and Duluth campuses to reduce new text end 15.29 new text begin tuition costs for students. new text end 15.30 new text begin This appropriation includes funding for new text end 15.31 new text begin scholarships for undergraduate Minnesota new text end 15.32 new text begin resident students with family income under new text end 15.33 new text begin $150,000 per year. This appropriation must new text end 15.34 new text begin be matched with $1.50 of nonstate money for new text end 15.35 new text begin each $1 of state money. new text end 16.1 new text begin This appropriation includes funding for the new text end 16.2 new text begin Center for Transportation Studies to complete new text end 16.3 new text begin a study to assess public policy options for new text end 16.4 new text begin reducing the volume of greenhouse gases new text end 16.5 new text begin emitted from the transportation sector in new text end 16.6 new text begin Minnesota. The Center for Transportation new text end 16.7 new text begin Studies must report its preliminary findings new text end 16.8 new text begin to the legislature by February 1, 2008, and new text end 16.9 new text begin must issue its full report by June 1, 2008. new text end 16.10 new text begin This is a onetime appropriation. new text end 16.11 new text begin This appropriation includes funding to new text end 16.12 new text begin establish an India Center to improve and new text end 16.13 new text begin promote relations with India and Southeast new text end 16.14 new text begin Asia. The center must partner with public new text end 16.15 new text begin and private organizations in Minnesota to: new text end 16.16 new text begin (1) foster an understanding of the history, new text end 16.17 new text begin culture, and values of India; new text end 16.18 new text begin (2) serve as a resource and catalyst to new text end 16.19 new text begin promote economic, governmental, and new text end 16.20 new text begin academic pursuits involving India; and new text end 16.21 new text begin (3) facilitate educational and business new text end 16.22 new text begin exchanges and partnerships, collaborative new text end 16.23 new text begin research, and teaching and training activities new text end 16.24 new text begin for Minnesota students and teachers. new text end 16.25 new text begin The Board of Regents may establish an new text end 16.26 new text begin advisory council to facilitate the mission new text end 16.27 new text begin and objectives of the India Center and must new text end 16.28 new text begin report on the progress of the India Center new text end 16.29 new text begin by February 15, 2008, to the governor new text end 16.30 new text begin and chairs of the legislative committees new text end 16.31 new text begin responsible for higher education finance. new text end 16.32 new text begin This appropriation must be matched by an new text end 16.33 new text begin equal amount of nonstate money. This is a new text end 16.34 new text begin onetime appropriation. new text end 17.1 new text begin This appropriation includes funding to assist new text end 17.2 new text begin in the formation of the neighborhood alliance new text end 17.3 new text begin and for projects identified in section 10. The new text end 17.4 new text begin alliance, the Board of Regents, and the city of new text end 17.5 new text begin Minneapolis may cooperate on the projects new text end 17.6 new text begin and may use public services of other entities new text end 17.7 new text begin to complete all or a portion of a project. This new text end 17.8 new text begin is a onetime appropriation. new text end 17.9 new text begin This appropriation includes funding to new text end 17.10 new text begin establish a Dakota language teacher training new text end 17.11 new text begin immersion program on the Twin Cities new text end 17.12 new text begin campus to prepare teachers to teach in new text end 17.13 new text begin Dakota language immersion programs. new text end 17.14 new text begin One percent of the appropriation in this new text end 17.15 new text begin subdivision is available when the Board new text end 17.16 new text begin of Regents of the University of Minnesota new text end 17.17 new text begin demonstrates to the commissioner of finance new text end 17.18 new text begin that the board has met at least three of the new text end 17.19 new text begin five following performance goals: new text end 17.20 new text begin (1) increase financial support to pay the cost new text end 17.21 new text begin of attendance for students demonstrating new text end 17.22 new text begin financial need; new text end 17.23 new text begin (2) maintain or improve the University of new text end 17.24 new text begin Minnesota's rank in its national share of new text end 17.25 new text begin total research and development expenditures new text end 17.26 new text begin reported to the National Science Foundation new text end 17.27 new text begin over the 2007 ranking; new text end 17.28 new text begin (3) increase by at least five percent, compared new text end 17.29 new text begin to fiscal year 2007, the number of degrees new text end 17.30 new text begin awarded in science, technology, engineering, new text end 17.31 new text begin mathematics, and health sciences disciplines; new text end 17.32 new text begin (4) increase by at least five percent, compared new text end 17.33 new text begin to fiscal year 2007, the amount of financial new text end 17.34 new text begin support from key funding sources for new text end 17.35 new text begin renewable energy research; and new text end 18.1 new text begin (5) increase and improve interaction and new text end 18.2 new text begin research activity beneficial to business and new text end 18.3 new text begin industry. new text end 18.4 new text begin By October 1, 2007, the Board of Regents new text end 18.5 new text begin and the Office of Higher Education must new text end 18.6 new text begin agree on specific numerical indicators and new text end 18.7 new text begin definitions for each of the five goals that will new text end 18.8 new text begin be used to demonstrate the University of new text end 18.9 new text begin Minnesota's attainment of each goal. new text end 18.10 new text begin On or before April 1, 2008, the Board new text end 18.11 new text begin of Regents must report to the legislative new text end 18.12 new text begin committees with primary jurisdiction over new text end 18.13 new text begin higher education finance and policy the new text end 18.14 new text begin progress of the University of Minnesota new text end 18.15 new text begin toward attaining the goals. new text end 18.16 new text begin Subd. 3. new text end new text begin Primary Care Education Initiatives new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end 18.17 new text begin This appropriation is from the health care new text end 18.18 new text begin access fund. new text end 18.19 new text begin Subd. 4. new text end new text begin Special Appropriations new text end 18.20 new text begin (a) new text end new text begin Agriculture and Extension Service new text end new text begin 53,175,000 new text end new text begin 52,175,000 new text end 18.21 new text begin (1) For the Agricultural Experiment new text end 18.22 new text begin Station, Minnesota Extension Service. This new text end 18.23 new text begin appropriation includes additional funding new text end 18.24 new text begin to promote alternative livestock research new text end 18.25 new text begin and outreach, and for an ongoing organic new text end 18.26 new text begin research and education program. new text end 18.27 new text begin (2) This appropriation includes funding new text end 18.28 new text begin for research efforts that demonstrate a new text end 18.29 new text begin renewed emphasis on the needs of the state's new text end 18.30 new text begin production agriculture community and a new text end 18.31 new text begin continued focus on renewable energy derived new text end 18.32 new text begin from Minnesota biomass resources including new text end 18.33 new text begin agronomic crops, plant and animal wastes, new text end 18.34 new text begin and native plants or trees, with priority for new text end 19.1 new text begin extending the Minnesota vegetable growing new text end 19.2 new text begin season; fertilizer and soil fertility research new text end 19.3 new text begin and development; treating and curing human new text end 19.4 new text begin diseases utilizing plant and livestock cells; new text end 19.5 new text begin using biofuel production coproducts as new text end 19.6 new text begin feed for livestock; and a rapid agricultural new text end 19.7 new text begin response fund for current or emerging new text end 19.8 new text begin animal, plant, and insect problems affecting new text end 19.9 new text begin production or food safety. In addition, the new text end 19.10 new text begin appropriation may be used to secure a facility new text end 19.11 new text begin and retain current faculty levels for poultry new text end 19.12 new text begin research currently conducted at UMore Park. new text end 19.13 new text begin (3) In the area of renewable energy, priority new text end 19.14 new text begin should be given to projects pertaining to: new text end 19.15 new text begin biofuel and other energy production from new text end 19.16 new text begin small grains; alternative bioenergy crops and new text end 19.17 new text begin cropping systems; and growing, harvesting, new text end 19.18 new text begin and transporting biomass plant material. new text end 19.19 new text begin (4) This appropriation includes funding for new text end 19.20 new text begin the college of food, agricultural, and natural new text end 19.21 new text begin resources sciences to establish and maintain new text end 19.22 new text begin a statewide organic research and education new text end 19.23 new text begin initiative to provide leadership for organic new text end 19.24 new text begin agronomic, horticultural, livestock, and food new text end 19.25 new text begin systems research, education, and outreach new text end 19.26 new text begin and for the purchase of state-of-the-art new text end 19.27 new text begin laboratory, planting, tilling, harvesting, and new text end 19.28 new text begin processing equipment necessary for this new text end 19.29 new text begin project. new text end 19.30 new text begin (5) By February 1, 2009, the Board new text end 19.31 new text begin of Regents must report to the legislative new text end 19.32 new text begin committees with responsibility for agriculture new text end 19.33 new text begin and higher education finance on the research new text end 19.34 new text begin and initiatives under this paragraph. new text end 20.1 new text begin (6) The base appropriation is $52,175,000 new text end 20.2 new text begin each year of the biennium ending June 30, new text end 20.3 new text begin 2011. new text end 20.4 new text begin (7) The Board of Regents of the University new text end 20.5 new text begin of Minnesota is requested to refrain from new text end 20.6 new text begin implementing corresponding reductions in new text end 20.7 new text begin funding for the purposes for which additional new text end 20.8 new text begin funding is provided. new text end 20.9 new text begin (b) new text end new text begin Health Sciences new text end new text begin 5,275,000 new text end new text begin 5,275,000 new text end 20.10 new text begin $346,000 each year is to support up to 12 new text end 20.11 new text begin resident physicians each year in the St. new text end 20.12 new text begin Cloud Hospital family practice residency new text end 20.13 new text begin program. The program must prepare doctors new text end 20.14 new text begin to practice primary care medicine in the rural new text end 20.15 new text begin areas of the state. The legislature intends new text end 20.16 new text begin this program to improve health care in rural new text end 20.17 new text begin communities, provide affordable access to new text end 20.18 new text begin appropriate medical care, and manage the new text end 20.19 new text begin treatment of patients in a more cost-effective new text end 20.20 new text begin manner. new text end 20.21 new text begin The remainder of this appropriation is for new text end 20.22 new text begin the rural physicians associates program, the new text end 20.23 new text begin Veterinary Diagnostic Laboratory, health new text end 20.24 new text begin sciences research, dental care, and the new text end 20.25 new text begin Biomedical Engineering Center. new text end 20.26 new text begin (c) new text end new text begin Institute of Technology new text end new text begin 1,387,000 new text end new text begin 1,387,000 new text end 20.27 new text begin For the Geological Survey and the talented new text end 20.28 new text begin youth mathematics program. new text end 20.29 new text begin (d) new text end new text begin System Specials new text end new text begin 6,551,000 new text end new text begin 6,551,000 new text end 20.30 new text begin For general research, student loans matching new text end 20.31 new text begin money, industrial relations education, Natural new text end 20.32 new text begin Resources Research Institute, Center for new text end 20.33 new text begin Urban and Regional Affairs, Bell Museum of new text end 20.34 new text begin Natural History, and the Humphrey exhibit. new text end 21.1 new text begin This appropriation includes additional new text end 21.2 new text begin funding each year for industrial relations new text end 21.3 new text begin education. The Board of Regents of the new text end 21.4 new text begin University of Minnesota is requested to new text end 21.5 new text begin refrain from implementing corresponding new text end 21.6 new text begin reductions in funding for this purpose. new text end 21.7 21.8 new text begin Subd. 5. new text end new text begin University of Minnesota and Mayo new text end new text begin Foundation Partnership new text end new text begin 25,000,000 new text end new text begin -0- new text end 21.9 new text begin For the direct and indirect expenses of the new text end 21.10 new text begin collaborative research partnership between new text end 21.11 new text begin the University of Minnesota and the Mayo new text end 21.12 new text begin Foundation for research in biotechnology new text end 21.13 new text begin and medical genomics. For fiscal years 2010 new text end 21.14 new text begin and 2011, the base shall be $8,000,000 in new text end 21.15 new text begin each year. This appropriation is available new text end 21.16 new text begin until expended. An annual report on the new text end 21.17 new text begin expenditure of these funds must be submitted new text end 21.18 new text begin to the governor and the chairs of the senate new text end 21.19 new text begin and house committees responsible for higher new text end 21.20 new text begin education and economic development by new text end 21.21 new text begin June 30 of each fiscal year. new text end 21.22 new text begin Subd. 6. new text end new text begin Academic Health Center new text end 21.23 new text begin The appropriation for Academic Health new text end 21.24 new text begin Center funding under Minnesota Statutes, new text end 21.25 new text begin section 297F.10, is $22,250,000 each year. new text end 21.26 Sec. 6. new text begin MAYO CLINIC new text end 21.27 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 1,202,000 new text end new text begin $ new text end new text begin 1,250,000 new text end 21.28 new text begin The amounts that may be spent for each new text end 21.29 new text begin purpose are specified in the following new text end 21.30 new text begin subdivisions. new text end 21.31 new text begin Subd. 2. new text end new text begin Medical School new text end new text begin 591,000 new text end new text begin 615,000 new text end 21.32 new text begin The state of Minnesota must pay a capitation new text end 21.33 new text begin each year for each student who is a resident new text end 21.34 new text begin of Minnesota. The appropriation may be new text end 22.1 new text begin transferred between years of the biennium to new text end 22.2 new text begin accommodate enrollment fluctuations. The new text end 22.3 new text begin funding base for this program is $640,000 in new text end 22.4 new text begin fiscal year 2010 and $665,000 in fiscal year new text end 22.5 new text begin 2011. new text end 22.6 new text begin It is intended that during the biennium the new text end 22.7 new text begin Mayo Clinic use the capitation money to new text end 22.8 new text begin increase the number of doctors practicing in new text end 22.9 new text begin rural areas in need of doctors. new text end 22.10 22.11 new text begin Subd. 3. new text end new text begin Family Practice and Graduate new text end new text begin Residency Program new text end new text begin 611,000 new text end new text begin 635,000 new text end 22.12 new text begin The state of Minnesota must pay stipend new text end 22.13 new text begin support for up to 27 residents each year. The new text end 22.14 new text begin funding base for this program is $660,000 in new text end 22.15 new text begin fiscal year 2010 and $686,000 in fiscal year new text end 22.16 new text begin 2011. new text end 22.17 22.18 Sec. 7. new text begin DEPARTMENT OF VETERANS new text end new text begin AFFAIRS. new text end new text begin $ new text end new text begin 6,000,000 new text end new text begin $ new text end new text begin 6,000,000 new text end 22.19 new text begin For grants to eligible veterans or the eligible new text end 22.20 new text begin spouses and children of veterans as provided new text end 22.21 new text begin under Minnesota Statutes, section 197.791. new text end 22.22 new text begin If the appropriation in this subdivision for new text end 22.23 new text begin either year is insufficient, the appropriation new text end 22.24 new text begin for the other year is available for it. new text end 22.25 new text begin Of this appropriation, no more than three new text end 22.26 new text begin percent each year may be used for the new text end 22.27 new text begin administrative costs of operating this new text end 22.28 new text begin program. new text end 22.29 22.30 Sec. 8. new text begin CENTER FOR RURAL POLICY AND new text end new text begin DEVELOPMENT. new text end 22.31 new text begin The appropriation in Laws 2007, chapter new text end 22.32 new text begin 57, article 2, section 3, subdivision 6, to the new text end 22.33 new text begin Center for Rural Policy and Development at new text end 22.34 new text begin Minnesota State University at Mankato for new text end 23.1 new text begin a rural wind energy assistance program is new text end 23.2 new text begin available until June 30, 2009. new text end 23.3    Sec. 9. new text begin FINANCIAL AID PROGRAM STUDIES. new text end 23.4     new text begin Subdivision 1. new text end new text begin State grant. new text end new text begin The Minnesota Office of Higher Education must new text end 23.5 new text begin conduct an analysis and evaluation of the state grant program to provide information new text end 23.6 new text begin to the legislature concerning the role of the program in promoting affordable access to new text end 23.7 new text begin higher education in Minnesota, including promoting access for students traditionally new text end 23.8 new text begin underrepresented in higher education. The analysis and evaluation must include: new text end 23.9     new text begin (1) evaluation of the assigned student share compared to the current and future new text end 23.10 new text begin income of a student, and analysis of the number of hours a student must work to meet the new text end 23.11 new text begin assigned student share without borrowing; new text end 23.12     new text begin (2) evaluation of the assigned family contribution, how it is determined under the new text end 23.13 new text begin federal needs analysis, and how it compares to expectations of families in other public new text end 23.14 new text begin programs; new text end 23.15     new text begin (3) analysis of the ways that students and families pay the assigned student share and new text end 23.16 new text begin the assigned family contribution; new text end 23.17     new text begin (4) analysis of the recognized cost of attendance compared to actual attendance new text end 23.18 new text begin costs and the ability of individuals and families at various income levels in Minnesota to new text end 23.19 new text begin pay the cost of attendance; new text end 23.20     new text begin (5) analysis of the actual living and miscellaneous expenses of students, with new text end 23.21 new text begin particular attention to differences between traditional and nontraditional students, and new text end 23.22 new text begin comparison to the amount currently used in the state grant formula; and new text end 23.23     new text begin (6) analysis of other parameters of the program considered relevant by the office, new text end 23.24 new text begin including prorating the state grant amount instead of the budget for the cost of attendance new text end 23.25 new text begin and changing the definition of full-time enrollment. new text end 23.26 new text begin Whenever possible, the analysis must include: new text end 23.27     new text begin (i) cost estimates and information on how recommended changes affect students at new text end 23.28 new text begin various income levels and at different higher education institutions in Minnesota; and new text end 23.29     new text begin (ii) the distributional effects, by income quintile, of state grant program parameters new text end 23.30 new text begin on students and families. new text end 23.31 new text begin The office also shall assess the feasibility of expanding the eligibility for state grants to new text end 23.32 new text begin include graduate and first professional students pursuing degree programs deemed to be new text end 23.33 new text begin important to the workforce needs of the state. By February 15, 2008, the Minnesota new text end 23.34 new text begin Office of Higher Education must report its preliminary findings and recommendations to new text end 23.35 new text begin the committees in the house of representatives and senate with primary jurisdiction over new text end 24.1 new text begin higher education policy and finance and workforce development on options to enhance new text end 24.2 new text begin the targeting of financial aid to state grant recipients, with the final report submitted by new text end 24.3 new text begin October 1, 2008. new text end 24.4     new text begin Subd. 2. new text end new text begin Workforce needs. new text end new text begin The Minnesota Office of Higher Education must new text end 24.5 new text begin examine existing financial aid programs that provide loans and grants to students, and the new text end 24.6 new text begin needs of the workforce for occupations that are currently in demand or are projected to new text end 24.7 new text begin be in demand in the future and: new text end 24.8     new text begin (1) evaluate how effective the financial aid programs are in linking the needs of the new text end 24.9 new text begin workforce with the student's financial aid needs; new text end 24.10     new text begin (2) identify financial aid program options, including loan forgiveness and loan new text end 24.11 new text begin repayment programs, that provide incentives to students to pursue degrees in occupations: new text end 24.12     new text begin (i) with identified unmet workforce needs like speech pathologists; and new text end 24.13     new text begin (ii) of social or economic importance to the state; and new text end 24.14     new text begin (3) identify mechanisms, such as additional resources, to promote the growth of new text end 24.15 new text begin occupations of social or economic importance to the state. By February 15, 2008, the office new text end 24.16 new text begin must report its preliminary findings to the legislative committees with primary jurisdiction new text end 24.17 new text begin over higher education policy and finance and workforce development, and provide options new text end 24.18 new text begin and recommendations on ways to enhance the delivery of financial aid to meet the needs of new text end 24.19 new text begin both students and the state's workforce, with the final report submitted by October 1, 2008. new text end 24.20    Sec. 10. new text begin POSTSECONDARY EDUCATION PARTICIPATION STUDY. new text end 24.21     new text begin The Minnesota Office of Higher Education shall, by January 15, 2008, report to the new text end 24.22 new text begin house and senate committees with jurisdiction over higher education policy and finance new text end 24.23 new text begin on participation in postsecondary education by income, and persistence and graduation new text end 24.24 new text begin rates of state grant recipients compared to students who did not receive state grants. The new text end 24.25 new text begin Minnesota Office of Higher Education is authorized to match individual student data from new text end 24.26 new text begin the student record enrollment database with individual student data from the state grant new text end 24.27 new text begin database on data elements necessary to perform the study. new text end 24.28    Sec. 11. new text begin UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA new text end 24.29 new text begin NEIGHBORHOOD ALLIANCE. new text end 24.30     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 24.31 new text begin have the meanings given them. new text end 24.32     new text begin (b) "Alliance" means a representative body of the constituencies, including, but new text end 24.33 new text begin not limited to, the University of Minnesota, the city of Minneapolis, and the recognized new text end 24.34 new text begin neighborhood organizations and business associations referenced in the report. new text end 25.1     new text begin (c) "Board" means the Board of Regents of the University of Minnesota. new text end 25.2     new text begin (d) "Report" means the report and appendix entitled Moving Forward Together: new text end 25.3 new text begin University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to new text end 25.4 new text begin the legislature in February 2007. new text end 25.5     new text begin (e) "University partnership district" or "district" means the area located within the new text end 25.6 new text begin city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East new text end 25.7 new text begin Como, Prospect Park, and University, as they are defined by the city, and the university's new text end 25.8 new text begin Minneapolis campus. new text end 25.9     new text begin (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that new text end 25.10 new text begin house significant numbers of university students and staff. Transportation and housing new text end 25.11 new text begin policy analysis and planning must include these areas but they must not be included in new text end 25.12 new text begin the projects funded through the alliance. new text end 25.13     new text begin (g) "University" means the University of Minnesota. new text end 25.14     new text begin Subd. 2. new text end new text begin Alliance; functions. new text end new text begin The alliance may facilitate, initiate, or manage new text end 25.15 new text begin projects with the board, city, or other public or private entities that are intended to new text end 25.16 new text begin maintain the university partnership district as a viable place to study, research, and live. new text end 25.17 new text begin Projects may include, but are not limited to, those outlined in the report, as well as new text end 25.18 new text begin efforts to involve students in activities to maintain and improve the university partnership new text end 25.19 new text begin district; cooperative university and university partnership district long-term planning; and new text end 25.20 new text begin incentives to increase homeownership within the district with particular emphasis on new text end 25.21 new text begin employees of the university and of other major employers located within the district. new text end 25.22     new text begin Subd. 3. new text end new text begin Report. new text end new text begin The board must report to the legislature by January 15, 2009, on new text end 25.23 new text begin the expenditure of funds appropriated under section 3. new text end 25.24ARTICLE 2 25.25RELATED HIGHER EDUCATION 25.26    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read: 25.27    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 25.28involving the Minnesota Office of Higher Education and other institutions is governed 25.29by sections new text begin section new text end 136A.05 and 136A.08, subdivision 8. 25.30    (b) Student financial aid. Data collected and used by the Minnesota Office of 25.31Higher Education on applicants for financial assistance are classified under section 25.32136A.162 . 25.33    (c) Minnesota college savings plan data. Account owner data, account data, and 25.34data on beneficiaries of accounts under the Minnesota college savings plan are classified 25.35under section 136G.05, subdivision 10. 26.1    (d) School financial records. Financial records submitted by schools registering 26.2with the Minnesota Office of Higher Education are classified under section 136A.64. 26.3    (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.4student enrollment and federal and state financial aid are governed by sections 136A.121, 26.5subdivision 18, and 136A.1701, subdivision 11. 26.6    Sec. 2. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read: 26.7    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 26.8Education Leadership Council is established. The council is composed of 16 new text begin 17 new text end members 26.9as follows: 26.10    (1) the chair of the University of Minnesota agricultural education program; 26.11    (2) a representative of the commissioner of education; 26.12    (3) a representative of the Minnesota State Colleges and Universities recommended 26.13by the chancellor; 26.14    (4) the president and the president-elect of the Minnesota Association of Agriculture 26.15Educators; 26.16    (5) a representative of the Future Farmers of America Foundation; 26.17    (6) a representative of the commissioner of agriculture; 26.18    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 26.19University of Minnesota; 26.20    (8) new text begin a representative of the Minnesota Private Colleges Council; new text end 26.21     new text begin (9) new text end two members representing agriculture education and agriculture business 26.22appointed by the governor; 26.23    (9) new text begin (10) new text end the chair of the senate Committee on Agriculture, General Legislation 26.24and Veterans Affairs; 26.25    (10) new text begin (11) new text end the chair of the house Committee on Agriculture; 26.26    (11) new text begin (12) new text end the ranking minority member of the senate Committee on Agriculture, 26.27General Legislation and Veterans Affairs, and a member of the senate Education 26.28Committee designated by the Subcommittee on Committees of the Committee on Rules 26.29and Administration; and 26.30    (12) new text begin (13) new text end the ranking minority member of the house Agriculture Committee, and a 26.31member of the house Education Committee designated by the speaker. 26.32    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 26.33(9), (10), (11), or (12) new text begin , or (13) new text end , may designate a permanent or temporary replacement 26.34member representing the same constituency. 27.1    Sec. 3. Minnesota Statutes 2006, section 135A.01, is amended to read: 27.2135A.01 FUNDING POLICY. 27.3    It is the policy of the legislature to provide stable funding, including recognition of 27.4the effects of inflation, for instructional services at public postsecondary institutions and 27.5that the state and students share the cost of those services new text begin public postsecondary education new text end . 27.6The legislature intends to provide at least 67 percent of the instructional services costs 27.7for each postsecondary system new text begin combined revenue from tuition, the university fee at the new text end 27.8 new text begin University of Minnesota, and state general fund appropriations to public postsecondary new text end 27.9 new text begin institutions new text end . It is also the policy of the legislature that the budgetary process serves to 27.10support high quality public postsecondary education. 27.11    Sec. 4. new text begin [135A.011] STATE HIGHER EDUCATION OBJECTIVES. new text end 27.12     new text begin Subdivision 1. new text end new text begin Statewide objectives. new text end new text begin Minnesota's higher education investment new text end 27.13 new text begin is made in pursuit of the following objectives: (1) to ensure quality by providing a new text end 27.14 new text begin level of excellence that is competitive on a national and international level, through new text end 27.15 new text begin high quality teaching, scholarship, and learning in a broad range of arts and sciences, new text end 27.16 new text begin technical education, and professional fields; (2) to foster student success by enabling new text end 27.17 new text begin and encouraging students to choose institutions and programs that are best suited for new text end 27.18 new text begin their talents and abilities, and to provide an educational climate that supports students new text end 27.19 new text begin in pursuing their goals and aspirations; (3) to promote democratic values and enhance new text end 27.20 new text begin Minnesota's quality of life by developing understanding and appreciation of a free and new text end 27.21 new text begin diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, new text end 27.22 new text begin regardless of personal circumstances, to participate in higher education; and (5) to enhance new text end 27.23 new text begin the economy by assisting the state in being competitive in the world market, and to prepare new text end 27.24 new text begin a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs. new text end 27.25    Sec. 5. Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read: 27.26    Subdivision 1. Determination of appropriation. The direct appropriation to each 27.27board for instructional services shall equal 67 percent of the estimated total cost of 27.28instruction new text begin appropriations new text end for the University of Minnesota, the state universities, and the 27.29community colleges, and, for technical colleges, at least 67 percent of the estimated total 27.30cost of instruction new text begin and the Minnesota State Colleges and Universities are determined new text end 27.31 new text begin by considering the biennial budget documents submitted under section 135A.034, new text end 27.32 new text begin performance in advancing the objectives under section 135A.011, available resources new text end 27.33 new text begin according to the state budget forecast, the relative balance between state support for new text end 27.34 new text begin students and public postsecondary institutions, and other factors the legislature considers new text end 28.1 new text begin important in determining the level of state appropriations for public postsecondary new text end 28.2 new text begin education new text end . 28.3    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read: 28.4    Subd. 7. Reports. new text begin (a) new text end Instructional new text begin and noninstructional new text end expenditure new text begin data new text end and 28.5enrollment data for each instructional category shall be submitted in the biennial budget 28.6document new text begin must be submitted in the biennial budget document under section 135A.034. new text end 28.7 new text begin This report must include a description of the methodology for determining instructional new text end 28.8 new text begin and noninstructional expenditures and estimates of inflation in higher education and the new text end 28.9 new text begin methodology or index used to determine the inflation rate new text end . 28.10     new text begin (b) By February 1 of each even-numbered year, the Board of Regents of the new text end 28.11 new text begin University of Minnesota and the Board of Trustees of the Minnesota State Colleges new text end 28.12 new text begin and Universities must submit a report to the chairs of the legislative committees with new text end 28.13 new text begin jurisdiction over higher education policy and finance. The report must describe the new text end 28.14 new text begin following: new text end 28.15     new text begin (1) how state appropriations made to the system in the previous odd-numbered year new text end 28.16 new text begin were allocated and the methodology used to determine the allocation; new text end 28.17     new text begin (2) data describing how the institution reallocated resources to advance the priorities new text end 28.18 new text begin set forth in the budget submitted under section 135A.034 and the statewide objectives new text end 28.19 new text begin under section 135A.011. The information must indicate whether instruction and support new text end 28.20 new text begin programs received a reduction in or additional resources. The total amount reallocated new text end 28.21 new text begin must be clearly explained; new text end 28.22     new text begin (3) the tuition rates and fees established by the governing board in each of the past new text end 28.23 new text begin ten years and comparison data for peer institutions and national averages; new text end 28.24     new text begin (4) data on the number and proportion of students graduating within four, five, new text end 28.25 new text begin and six years from universities and within three years from colleges as reported in the new text end 28.26 new text begin integrated postsecondary education data system. These data must be provided for each new text end 28.27 new text begin institution by race, ethnicity, and gender. Data and information must be submitted that new text end 28.28 new text begin describe the system's plan and progress toward attaining the goals set forth in the plan new text end 28.29 new text begin to increase the number and proportion of students that graduate within four, five, or six new text end 28.30 new text begin years from a university or within three years from a college; new text end 28.31     new text begin (5) data on, and the methodology used to measure, the number of students new text end 28.32 new text begin traditionally underrepresented in higher education enrolled at the system's institutions. new text end 28.33 new text begin Data and information must be submitted that describe the system's plan and progress new text end 28.34 new text begin toward attaining the goals set forth in the plan to increase the recruitment, retention, and new text end 28.35 new text begin timely graduation of students traditionally underrepresented in higher education; and new text end 29.1     new text begin (6) data on the revenue received from all sources to support research or workforce new text end 29.2 new text begin development activities or the system's efforts to license, sell, or otherwise market products, new text end 29.3 new text begin ideas, technology, and related inventions created in whole or in part by the system. Data new text end 29.4 new text begin and information must be submitted that describe the system's plan and progress toward new text end 29.5 new text begin attaining the goals set forth in the plan to increase the revenue received to support research new text end 29.6 new text begin or workforce development activities or revenue received from the licensing, sale, or other new text end 29.7 new text begin marketing and technology transfer activities by the system. new text end 29.8     new text begin (c) Instructional expenditure and enrollment data shall be submitted by the public new text end 29.9 new text begin postsecondary systems to the Minnesota Office of Higher Education and the Department of new text end 29.10 new text begin Finance and included in the biennial budget document. The specific data shall be submitted new text end 29.11 new text begin only after the director of the Minnesota Office of Higher Education has consulted with a new text end 29.12 new text begin data advisory task force to determine the need, content, and detail of the information. new text end 29.13    Sec. 7. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read: 29.14    Subdivision 1. Operating budget. The governing boards of the University of 29.15Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 29.16legislative and executive branch acceptance, its highest budget priorities in accordance 29.17with statewide objectives for higher education new text begin under section 135A.011 new text end . It is the intent 29.18of the legislature to appropriate at least 67 percent of the total cost of instruction after 29.19adjusting for inflation and enrollment changes. However, in the event of a budget shortfall, 29.20or if funding of inflation is not possible, available funding shall first be applied to the 29.21agreed upon budget priorities. 29.22    Sec. 8. new text begin [135A.135] PERSONAL FINANCIAL MANAGEMENT. new text end 29.23     new text begin During initial student registration, each technical college, community college, or new text end 29.24 new text begin state university shall, and the University of Minnesota is requested to, provide each new text end 29.25 new text begin student information on personal financial management. Students should understand and new text end 29.26 new text begin be able to manage personal finances including, but not limited to, the responsible use of new text end 29.27 new text begin consumer credit. This requirement may be waived for a student who enrolls in a college new text end 29.28 new text begin course providing similar instruction. new text end 29.29    Sec. 9. new text begin [135A.145] SALE OF STUDENT INFORMATION; MARKETING new text end 29.30 new text begin CREDIT CARDS TO STUDENTS. new text end 29.31     new text begin Subdivision 1. new text end new text begin Prohibited practices. new text end new text begin No public or private postsecondary new text end 29.32 new text begin educational institution, including its agents, employees, student or alumni organizations, new text end 29.33 new text begin or affiliates, may: new text end 30.1     new text begin (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone new text end 30.2 new text begin number, or other contact information of an undergraduate student at the postsecondary new text end 30.3 new text begin educational institution without the student's consent; or new text end 30.4     new text begin (2) enter into any agreement to market credit cards to undergraduate students at new text end 30.5 new text begin a postsecondary educational institution. new text end 30.6     new text begin For purposes of this section, the terms "credit," "credit card," and "card issuer" new text end 30.7 new text begin have the meanings given them in the Truth in Lending Act, United States Code, title 15, new text end 30.8 new text begin section 1602. new text end 30.9     new text begin Subd. 2. new text end new text begin Violations. new text end new text begin The attorney general may seek the penalties and remedies new text end 30.10 new text begin available under section new text end new text begin against any person who violates this section. new text end 30.11 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007, except that it applies to new text end 30.12 new text begin existing agreements to market credit cards upon the later of the expiration of the original new text end 30.13 new text begin term of the agreement or the expiration of an extension of the original agreement if the new text end 30.14 new text begin extension is in effect on July 1, 2007. new text end 30.15    Sec. 10. new text begin [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS. new text end 30.16     new text begin Subdivision 1. new text end new text begin Short title. new text end new text begin This section may be cited as the Textbook Disclosure, new text end 30.17 new text begin Pricing, and Access Act. new text end 30.18     new text begin Subd. 2. new text end new text begin Course material disclosures required. new text end new text begin (a) Beginning January 1, 2009, new text end 30.19 new text begin any publisher that sells or distributes course material for classroom use in a postsecondary new text end 30.20 new text begin institution must make the following available in an easily accessible manner to faculty, new text end 30.21 new text begin bookstores, and postsecondary institutions in Minnesota: new text end 30.22     new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) or new text end 30.23 new text begin other easily identifiable information for all course materials; new text end 30.24     new text begin (2) the undiscounted price at which the course materials are available to a bookstore; new text end 30.25     new text begin (3) the formats, including bundled and unbundled, in which those course materials new text end 30.26 new text begin are offered and the undiscounted prices of the various components, both sold separately or new text end 30.27 new text begin packaged together; new text end 30.28     new text begin (4) a summary of revisions between current and previous editions of course new text end 30.29 new text begin materials; and new text end 30.30     new text begin (5) the return policy for course material, including any penalties or conditions for new text end 30.31 new text begin returns. new text end 30.32     new text begin (b) Any publisher that sells or distributes course material for classroom use in a new text end 30.33 new text begin postsecondary institution must make all bundled course material available to bookstores new text end 30.34 new text begin and postsecondary institutions in an unbundled form, or must provide notice if unbundled new text end 30.35 new text begin material is not available. new text end 31.1     new text begin (c) Disclosure under this section is not required for mass market and trade books that new text end 31.2 new text begin are not published, marketed, or sold primarily for classroom use in or by postsecondary new text end 31.3 new text begin institutions. new text end 31.4     new text begin (d) Nothing in this section shall be construed to limit any existing academic freedom new text end 31.5 new text begin or rights of faculty members to determine the most appropriate course material for the new text end 31.6 new text begin courses they teach. new text end 31.7     new text begin Subd. 3. new text end new text begin Educational strategies. new text end new text begin Public postsecondary institutions must develop new text end 31.8 new text begin educational materials considering the recommendations in studies by the Minnesota Office new text end 31.9 new text begin of Higher Education and others and at least annually convene and sponsor meetings new text end 31.10 new text begin and workshops, and provide educational strategies for faculty, students, administrators, new text end 31.11 new text begin institutions, and bookstores to inform all interested parties on strategies for reducing the new text end 31.12 new text begin costs of course materials for students attending postsecondary institutions. new text end 31.13     new text begin Subd. 4. new text end new text begin Minnesota Office of Higher Education responsibilities. new text end new text begin (a) For private new text end 31.14 new text begin postsecondary institutions, the Minnesota Office of Higher Education must develop new text end 31.15 new text begin educational materials considering the recommendations by the Minnesota Office of Higher new text end 31.16 new text begin Education and others and at least annually convene and sponsor meetings and workshops new text end 31.17 new text begin and provide educational strategies for faculty, students, administrators, institutions, and new text end 31.18 new text begin bookstores to inform all interested parties on strategies for reducing the costs of course new text end 31.19 new text begin materials for students attending postsecondary institutions. new text end 31.20     new text begin (b) The Minnesota Office of Higher Education must identify methods to compile and new text end 31.21 new text begin distribute information on publishers that sell or distribute course material for classroom use new text end 31.22 new text begin in postsecondary institutions in a manner that meets the requirements and complies with new text end 31.23 new text begin subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make new text end 31.24 new text begin this information available for use by students and faculty in postsecondary institutions. new text end 31.25     new text begin Subd. 5. new text end new text begin Bookstores; course materials. new text end new text begin The University of Minnesota and private new text end 31.26 new text begin colleges are encouraged to comply with the requirements for instructors and bookstores new text end 31.27 new text begin under section 136F.58, subdivision 2. new text end 31.28    Sec. 11. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read: 31.29    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 31.30of age before the beginning of any term, semester or quarter, in which a course of study 31.31is pursued new text begin , or a person receiving a railroad retirement annuity who has reached 60 years new text end 31.32 new text begin of age before the beginning of the term new text end . 31.33    Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read: 32.1    Subdivision 1. Fees and tuition. Except for an administration fee established by the 32.2governing board at a level to recover costs, to be collected only when a course is taken for 32.3credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 32.4of tuition or activity fees to attend courses offered for credit, audit any courses offered 32.5for credit, or enroll in any noncredit courses in any state supported institution of higher 32.6education in Minnesota when space is available after all tuition-paying students have been 32.7accommodated. A senior citizen enrolled under this section must pay any materials, 32.8personal property, or service charges for the course. In addition, a senior citizen who is 32.9enrolled in a course for credit must pay an administrative fee in an amount established 32.10by the governing board of the institution to recover the course costs. There shall be no 32.11administrative fee charges to a senior citizen auditing a course. For the purposes of this 32.12section and section 135A.51, the term "noncredit courses" shall not include those courses 32.13designed and offered specifically and exclusively for senior citizens. 32.14    The provisions of this section and section 135A.51 do not apply to noncredit courses 32.15designed and offered by the University of Minnesota, and the Minnesota State Colleges 32.16and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 32.17under the provisions of this section and section 135A.51 shall not be included by such 32.18institutions in their computation of full-time equivalent students when requesting staff 32.19or appropriations. 32.20    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read: 32.21    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 32.22shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 32.23courses, nor income limitation imposed in determining eligibility. 32.24    (b) A senior citizen enrolled in a closed enrollment contract training or professional 32.25continuing education program is not eligible for benefits under subdivision 1. 32.26    Sec. 14. new text begin [136A.002] DEFINITIONS. new text end 32.27     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For purposes of this chapter, the terms defined in this section new text end 32.28 new text begin have the meanings given them. new text end 32.29     new text begin Subd. 2. new text end new text begin Office of Higher Education or office. new text end new text begin "Office of Higher Education" or new text end 32.30 new text begin "office" means the Minnesota Office of Higher Education. new text end 32.31    Sec. 15. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read: 32.32    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory 32.33groups established in this section new text begin do not new text end expire on June 30, 2007. 33.1    Sec. 16. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read: 33.2    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 33.3before the last day in January, submit a report to the committees in the house of 33.4representatives and the senate with responsibility for higher education finance on: 33.5    (1) participation in the tuition reciprocity program by Minnesota students and 33.6students from other states attending Minnesota postsecondary institutions under a 33.7reciprocity agreement; 33.8    (2) reciprocity and resident tuition rates at each institution; and 33.9    (3) interstate payments and obligations for each state participating in the tuition 33.10reciprocity program in the prior year. new text begin ; and new text end 33.11     new text begin (4) summary statistics on number of graduates by institution, degree granted, and new text end 33.12 new text begin year of graduation for reciprocity students who attended Minnesota postsecondary new text end 33.13 new text begin institutions. new text end 33.14    Sec. 17. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read: 33.15    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 33.16educational institution located in this state or in a state with which the office has entered 33.17into a higher education reciprocity agreement on state student aid programs that either (1) 33.18is operated by this state new text begin or the Board of Regents of the University of Minnesota new text end , or (2) is 33.19operated publicly or privately and, as determined by the office, new text begin meets all of the following: new text end 33.20 new text begin (i) new text end maintains academic standards substantially equivalent to those of comparable 33.21institutions operated in this state new text begin ; (ii) is licensed or registered as a postsecondary institution new text end 33.22 new text begin by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal new text end 33.23 new text begin Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end . 33.24    Sec. 18. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 33.25read: 33.26    Subd. 5a. Assigned family responsibility. "Assigned family responsibility" means 33.27the amount of a family new text begin family's new text end contribution to a student's cost of attendance, as determined 33.28by a federal need analysis. For dependent students, the assigned family responsibility is 33.29 new text begin 95 percent of new text end the parental contribution. For independent students with dependents other 33.30than a spouse, the assigned family responsibility is new text begin 85 percent of new text end the student contribution. 33.31For independent students without dependents other than a spouse, the assigned family 33.32responsibility is 72 new text begin 67 new text end percent of the student contribution. The assigned family 33.33responsibility for all other independent students is 90 percent of the student contribution. 34.1    Sec. 19. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read: 34.2    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 34.3responsibility for covering the recognized cost of attendance by the applicant, the 34.4applicant's family, and the government. The amount of a financial stipend must not 34.5exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 34.6deducting the following: 34.7    (1) the assigned student responsibility of at least 46 new text begin 45.5 new text end percent of the cost of 34.8attending the institution of the applicant's choosing; 34.9    (2) the assigned family responsibility as defined in section 136A.101; and 34.10    (3) the amount of a federal Pell grant award for which the grant applicant is eligible. 34.11    The minimum financial stipend is $100 per academic year. 34.12    Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to 34.13read: 34.14    Subd. 7a. Surplus appropriation. If the amount appropriated is determined by the 34.15office to be more than sufficient to fund projected grant demand in the second year of the 34.16biennium, the office may increase the living and miscellaneous expense allowance in the 34.17second year of the biennium by up to an amount that retains sufficient appropriations 34.18to fund the projected grant demand. The adjustment may be made one or more times. 34.19In making the determination that there are more than sufficient funds, the office shall 34.20balance the need for sufficient resources to meet the projected demand for grants with the 34.21goal of fully allocating the appropriation for state grants. An increase in the living and 34.22miscellaneous expense allowance under this subdivision does not carry forward into a 34.23subsequent biennium. This subdivision expires June 30, 2007 new text begin 2009 new text end . 34.24    Sec. 21. Minnesota Statutes 2006, section 136A.121, is amended by adding a 34.25subdivision to read: 34.26     new text begin Subd. 19. new text end new text begin Reporting. new text end new text begin By November 1 and February 15, the Office of Higher new text end 34.27 new text begin Education must provide, to the committees of the legislature with jurisdiction over higher new text end 34.28 new text begin education finance and policy, updated state grant spending projections taking into account new text end 34.29 new text begin the most current and projected enrollment and tuition and fee information, economic new text end 34.30 new text begin conditions, and other relevant factors. Before submitting state grant spending projections, new text end 34.31 new text begin the Office of Higher Education must meet and consult with representatives of public and new text end 34.32 new text begin private postsecondary institutions, the Department of Finance, the Governor's Office, new text end 34.33 new text begin legislative staff, and financial aid administrators. new text end 35.1    Sec. 22. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read: 35.2    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 35.3the applicant: 35.4    (1) is a resident of the state of Minnesota; 35.5    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 35.6disabled as defined in section 125A.02, and who is receiving or will receive care on a 35.7regular basis from a licensed or legal, nonlicensed caregiver; 35.8    (3) is income eligible as determined by the office's policies and rules, but is not a 35.9recipient of assistance from the Minnesota family investment program; 35.10    (4) has not earned a baccalaureate degree and has been enrolled full time less than 35.11eight semesters or the equivalent; 35.12    (5) is pursuing a nonsectarian program or course of study that applies to an 35.13undergraduate degree, diploma, or certificate; 35.14    (6) is enrolled at least half time in an eligible institution; and 35.15    (7) is in good academic standing and making satisfactory academic progress. 35.16    (b) A student who withdraws from enrollment for active military service is entitled 35.17to an additional semester or the equivalent of grant eligibility new text begin and will be considered to be new text end 35.18 new text begin in continuing enrollment status upon return new text end . 35.19    Sec. 23. Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read: 35.20    Subd. 4. Amount and length of grants. The amount of a child care grant must be 35.21based on: 35.22    (1) the income of the applicant and the applicant's spouse; 35.23    (2) the number in the applicant's family, as defined by the office; and 35.24    (3) the number of eligible children in the applicant's family. 35.25    The maximum award to the applicant shall be $2,300 new text begin $2,600 new text end for each eligible child 35.26per academic year, except that the campus financial aid officer may apply to the office for 35.27approval to increase grants by up to ten percent to compensate for higher market charges 35.28for infant care in a community. The office shall develop policies to determine community 35.29market costs and review institutional requests for compensatory grant increases to ensure 35.30need and equal treatment. The office shall prepare a chart to show the amount of a grant 35.31that will be awarded per child based on the factors in this subdivision. The chart shall 35.32include a range of income and family size. 36.1    Sec. 24. new text begin [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; new text end 36.2 new text begin MINNESOTA EARLY CHILDHOOD TEACHER EDUCATION INCENTIVE new text end 36.3 new text begin PROGRAMS. new text end 36.4     new text begin Subdivision 1. new text end new text begin TEACH. new text end new text begin The teacher education and compensation helps program new text end 36.5 new text begin (TEACH) is established to provide tuition scholarships and education incentives to early new text end 36.6 new text begin care and education providers. The director shall make a grant with appropriations for this new text end 36.7 new text begin purpose to a nonprofit organization licensed to administer the TEACH early childhood new text end 36.8 new text begin program. new text end 36.9     new text begin Subd. 2. new text end new text begin Program components. new text end new text begin (a) The nonprofit organization must use the new text end 36.10 new text begin grant for: new text end 36.11     new text begin (1) tuition scholarships up to $5,000 per year for courses leading to the nationally new text end 36.12 new text begin recognized child development associate credential or college-level courses leading to an new text end 36.13 new text begin associate's or bachelor's degree in early childhood development and school-age care; and new text end 36.14     new text begin (2) education incentives of a minimum of $100 to participants in the tuition new text end 36.15 new text begin scholarship program if they complete a year of working in the early care and education new text end 36.16 new text begin field. new text end 36.17     new text begin (b) Applicants for the scholarship must be employed by a licensed early childhood new text end 36.18 new text begin or child care program and working directly with children, a licensed family child care new text end 36.19 new text begin provider, or an employee in a school-age program exempt from licensing under section new text end 36.20 new text begin 245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in new text end 36.21 new text begin awarding the tuition scholarships. Scholarship recipients must contribute ten percent of new text end 36.22 new text begin the total scholarship and must be sponsored by their employers, who must also contribute new text end 36.23 new text begin ten percent of the total scholarship. Scholarship recipients who are self-employed must new text end 36.24 new text begin contribute 20 percent of the total scholarship. new text end 36.25     new text begin Subd. 3. new text end new text begin Advisory committee. new text end new text begin The TEACH early childhood and Minnesota early new text end 36.26 new text begin childhood teacher education incentive programs may have an advisory board as prescribed new text end 36.27 new text begin by the national TEACH organization. new text end 36.28    Sec. 25. new text begin [136A.127] ACHIEVE SCHOLARSHIP PROGRAM. new text end 36.29     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin The Achieve Scholarship Program is established. new text end 36.30     new text begin Subd. 2. new text end new text begin Definition; qualifying course. new text end new text begin For the purposes of this section, a new text end 36.31 new text begin "qualifying course" means a course that is equivalent to at least one course credit in high new text end 36.32 new text begin school, as defined in section 120B.024, and that is a rigorous course as determined by new text end 36.33 new text begin the local school district. new text end 36.34     new text begin Subd. 3. new text end new text begin Documentation of qualifying courses. new text end new text begin At the student's request, the high new text end 36.35 new text begin school shall provide a transcript to the Office of Higher Education documenting the new text end 37.1 new text begin qualifying courses the student took. High schools shall certify, on the transcript, which new text end 37.2 new text begin courses on the transcript are qualifying courses and provide a total number of qualifying new text end 37.3 new text begin courses for each student. new text end 37.4     new text begin Subd. 4. new text end new text begin Review panel. new text end new text begin The director of the office may appoint a review panel to new text end 37.5 new text begin monitor the implementation of the Achieve Scholarship Program. The review panel may new text end 37.6 new text begin assist the director in reviewing a determination by a school district that a high school new text end 37.7 new text begin course is rigorous. The review panel shall include representatives of public and private new text end 37.8 new text begin high schools and postsecondary institutions. new text end 37.9     new text begin Subd. 5. new text end new text begin Student eligibility. new text end new text begin To be eligible to receive a scholarship under this new text end 37.10 new text begin section, a student must: new text end 37.11     new text begin (1) take and receive a passing grade for qualifying courses under subdivision 2 in new text end 37.12 new text begin a Minnesota high school and graduate from high school; new text end 37.13     new text begin (2) have total household income that qualifies for free and reduced price meals under new text end 37.14 new text begin the National School Lunch Program; and new text end 37.15     new text begin (3) be a Minnesota resident student as defined in section 136A.101, subdivision 8. new text end 37.16     new text begin Subd. 6. new text end new text begin Administration. new text end new text begin The Achieve Scholarship Program shall be administered new text end 37.17 new text begin by the Minnesota Office of Higher Education. The director shall develop forms and new text end 37.18 new text begin procedures necessary to administer the program. new text end 37.19     new text begin Subd. 7. new text end new text begin Application. new text end new text begin A student must complete and submit an application for new text end 37.20 new text begin the Achieve scholarship. new text end 37.21     new text begin Subd. 8. new text end new text begin Deadline. new text end new text begin The deadline for the office to accept applications for Achieve new text end 37.22 new text begin scholarships is 30 days after the beginning of the academic term for which the application new text end 37.23 new text begin is submitted. new text end 37.24     new text begin Subd. 9. new text end new text begin Documentation of qualifying household income. new text end new text begin Achieve Scholarship new text end 37.25 new text begin Program applicants must certify on the application that they meet the income eligibility new text end 37.26 new text begin requirement in subdivision 5, clause (2). The Office of Higher Education or the new text end 37.27 new text begin postsecondary institution may request documentation needed to confirm income eligibility. new text end 37.28     new text begin Subd. 10. new text end new text begin Scholarships awards. new text end new text begin (a) A scholarship under this section may be new text end 37.29 new text begin awarded in each of the first four years of postsecondary instruction immediately following new text end 37.30 new text begin graduation from high school. The amount of the scholarship is $250 for each qualifying new text end 37.31 new text begin course completed at a Minnesota high school. The maximum annual amount of the new text end 37.32 new text begin scholarship is $1,250 and the maximum lifetime amount for any student is $5,000. The new text end 37.33 new text begin scholarship may be used to pay qualifying expenses at eligible institutions. new text end 37.34     new text begin (b) A student must meet the requirements of section 136A.101, subdivision 10, new text end 37.35 new text begin for the Achieve scholarship to be renewed. new text end 38.1     new text begin Subd. 11. new text end new text begin Qualifying expenses. new text end new text begin Qualifying expenses are tuition, fees, and other new text end 38.2 new text begin educational expenses. new text end 38.3     new text begin Subd. 12. new text end new text begin Eligible institutions. new text end new text begin The Achieve scholarship may only be used to new text end 38.4 new text begin pay qualifying expenses at an eligible institution as defined under section 136A.101, new text end 38.5 new text begin subdivision 4. new text end 38.6     new text begin Subd. 13. new text end new text begin Evaluation report. new text end new text begin By January 15 of each odd-numbered year, the new text end 38.7 new text begin Office of Higher Education shall submit a report, to the committees of the legislature with new text end 38.8 new text begin jurisdiction over higher education finance and policy, regarding the success of the program new text end 38.9 new text begin in increasing the enrollment of students in rigorous high school courses, including, at a new text end 38.10 new text begin minimum, the following information: new text end 38.11     new text begin (1) a description of the number of individuals participating in the program; new text end 38.12     new text begin (2) the courses taken by the program participants; new text end 38.13     new text begin (3) the number of credits program participants received for the courses they new text end 38.14 new text begin completed; new text end 38.15     new text begin (4) the high schools attended by the program participants; new text end 38.16     new text begin (5) the postsecondary institutions attended by the program participants; new text end 38.17     new text begin (6) the academic performance of the students after enrolling in a postsecondary new text end 38.18 new text begin institution; and new text end 38.19     new text begin (7) other information as identified by the director. new text end 38.20 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2008. new text end 38.21    Sec. 26. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read: 38.22    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702, the terms 38.23defined in this section have the meanings ascribed to new text begin given new text end them. 38.24    Sec. 27. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read: 38.25    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 38.26educational institution that either (1) is operated or regulated by this state, or new text begin the Board of new text end 38.27 new text begin Regents of the University of Minnesota; new text end (2) is operated publicly or privately in another 38.28state, is approved by the United States Secretary of Education, and, as determined by 38.29the office, maintains academic standards substantially equal to those of comparable 38.30institutions operated in this state new text begin ; (3) is licensed or registered as a postsecondary institution new text end 38.31 new text begin by the office or another state agency; and (4) by July 1, 2011, is participating in the federal new text end 38.32 new text begin Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end . It 38.33also includes any institution chartered in a province. 39.1    Sec. 28. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read: 39.2    Subd. 8. Investment. Money made available to the office that is not immediately 39.3needed for the purposes of sections 136A.15 to 136A.1702 may be invested by the office. 39.4The money must be invested in bonds, certificates of indebtedness, and other fixed income 39.5securities, except preferred stocks, which are legal investments for the permanent school 39.6fund. The money may also be invested in prime quality commercial paper that is eligible 39.7for investment in the state employees retirement fund. All interest and profits from such 39.8investments inure to the benefit of the office or may be pledged for security of bonds 39.9issued by the office or its predecessor, the Minnesota Higher Education Coordinating 39.10Board new text begin predecessors new text end . 39.11    Sec. 29. Minnesota Statutes 2006, section 136A.16, is amended by adding a 39.12subdivision to read: 39.13     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 new text end 39.14 new text begin interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, new text end 39.15 new text begin or other comparable interest rate protection agreements with a third party in connection new text end 39.16 new text begin with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing new text end 39.17 new text begin comparable interest rate protection agreements. new text end 39.18     new text begin (b) The agreements authorized by this subdivision include without limitation master new text end 39.19 new text begin agreements, options, or contracts to enter into those agreements in the future and related new text end 39.20 new text begin agreements, including, without limitation, agreements to provide credit enhancement, new text end 39.21 new text begin liquidity, or remarketing. new text end 39.22     new text begin (c) The agreements authorized by this subdivision may be entered into on the basis new text end 39.23 new text begin of negotiation with a qualified third party or through a competitive proposal process on new text end 39.24 new text begin terms and conditions as and with covenants and provisions approved by the office and new text end 39.25 new text begin may include, without limitation: new text end 39.26     new text begin (1) provisions establishing reserves; new text end 39.27     new text begin (2) pledging assets or revenues of the office for current or other payments or new text end 39.28 new text begin termination payments; new text end 39.29     new text begin (3) contracting with the other parties to the agreements to provide for the custody, new text end 39.30 new text begin collection, securement, investment, and payment of money of the office or money held new text end 39.31 new text begin in trust; or new text end 39.32     new text begin (4) requiring the issuance of bonds or other agreements authorized by this section new text end 39.33 new text begin in the future. new text end 39.34     new text begin (d) With respect to bonds or notes outstanding or proposed to be issued bearing new text end 39.35 new text begin interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate new text end 40.1 new text begin or at a different variable rate determined in accordance with a formula set out in the new text end 40.2 new text begin agreement on an amount not exceeding the outstanding principal amount of the bonds or new text end 40.3 new text begin notes at the time of payment in exchange for an agreement by the third party to pay sums new text end 40.4 new text begin equal to interest on a like amount at a variable rate determined according to a formula new text end 40.5 new text begin set out in the agreement. new text end 40.6     new text begin (e) With respect to bonds or notes outstanding or proposed to be issued bearing new text end 40.7 new text begin interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a new text end 40.8 new text begin variable rate determined in accordance with a formula set out in the agreement on an new text end 40.9 new text begin amount not exceeding the outstanding principal amount of the bonds or notes at the time of new text end 40.10 new text begin payment in exchange for an agreement by the third party to pay sums equal to interest on a new text end 40.11 new text begin like amount at a fixed rate or rates determined according to a formula set in the agreement. new text end 40.12     new text begin (f) Subject to any applicable covenants of the office, payments required to be made new text end 40.13 new text begin by the office under the agreement, including termination payments, may be made from new text end 40.14 new text begin amounts pledged or available to pay debt service on the bonds or notes with respect to new text end 40.15 new text begin which the agreement was made or from assets of the loan capital fund of the office. new text end 40.16 new text begin The office may issue bonds or notes to provide for any payments, including, without new text end 40.17 new text begin limitation, a termination payment due or to become due under an agreement authorized new text end 40.18 new text begin under this section. new text end 40.19     new text begin (g) The authority of the office to enter into interest rate protection agreements under new text end 40.20 new text begin this section is limited to agreements related to bonds and notes with an aggregate value of new text end 40.21 new text begin no more than $20,000,000. new text end 40.22    Sec. 30. Minnesota Statutes 2006, section 136A.1702, is amended to read: 40.23136A.1702 COMMISSION APPROVAL new text begin LEGISLATIVE OVERSIGHT new text end . 40.24    The office shall obtain approval from new text begin notify new text end the Legislative Advisory Commission 40.25 new text begin chairs of the legislative committees with primary jurisdiction over higher education new text end 40.26 new text begin finance of any proposed material change to any of its student loan programs new text end prior to 40.27taking the following actions with regard to student loan programs described in Laws 40.281983, chapter 258: 40.29    (1) implementing a loan program for parents and students eligible for auxiliary loans 40.30as defined in section 136A.15, subdivision 7; 40.31    (2) acquiring student loans from other lenders to facilitate student loan programs 40.32provided for in section ; and 40.33    (3) providing for programs of supplemental and additional loans as defined in section 40.34 new text begin making the change new text end . 41.1    Sec. 31. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read: 41.2    Subd. 3. Payments. Work-study payments shall be made to eligible students by 41.3postsecondary institutions as provided in this subdivision. 41.4    (a) Students shall be selected for participation in the program by the postsecondary 41.5institution on the basis of student financial need. 41.6    (b) In selecting students for participation, priority must be given to students enrolled 41.7for at least 12 credits. new text begin In each academic year, a student may be awarded work-study new text end 41.8 new text begin payments for one period of nonenrollment or less than half-time enrollment if the student new text end 41.9 new text begin will enroll on at least a half-time basis during the following academic term. new text end 41.10    (c) Students will be paid for hours actually worked and the maximum hourly rate 41.11of pay shall not exceed the maximum hourly rate of pay permitted under the federal 41.12college work-study program. 41.13    (d) Minimum pay rates will be determined by an applicable federal or state law. 41.14    (e) The office shall annually establish a minimum percentage rate of student 41.15compensation to be paid by an eligible employer. 41.16    (f) Each postsecondary institution receiving money for state work-study grants 41.17shall make a reasonable effort to place work-study students in employment with eligible 41.18employers outside the institution. However, a public employer other than the institution 41.19may not terminate, lay off, or reduce the working hours of a permanent employee for the 41.20purpose of hiring a work-study student, or replace a permanent employee who is on layoff 41.21from the same or substantially the same job by hiring a work-study student. 41.22    (g) The percent of the institution's work-study allocation provided to graduate 41.23students shall not exceed the percent of graduate student enrollment at the participating 41.24institution. 41.25    (h) An institution may use up to 30 percent of its allocation for student internships 41.26with private, for-profit employers. 41.27    Sec. 32. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read: 41.28    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 41.29to issue revenue bonds whose aggregate principal amount at any time shall not exceed 41.30$800,000,000 new text begin $950,000,000 new text end and to issue notes, bond anticipation notes, and revenue 41.31refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, 41.32to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 41.33renovating, improving, furnishing, or equipping one or more projects or parts thereof. 41.34    Sec. 33. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read: 42.1    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 42.2shall award grants to foster postsecondary attendance new text begin and retention new text end by providing outreach 42.3services to historically underserved students in grades six through 12 new text begin and historically new text end 42.4 new text begin underrepresented college students new text end . Grants must be awarded to programs that provide 42.5precollege services, including, but not limited to: 42.6    (1) academic counseling; 42.7    (2) mentoring; 42.8    (3) fostering and improving parental involvement in planning for and facilitating a 42.9college education; 42.10    (4) services for students with English as a second language; 42.11    (5) academic enrichment activities; 42.12    (6) tutoring; 42.13    (7) career awareness and exploration; 42.14    (8) orientation to college life; 42.15    (9) assistance with high school course selection and information about college 42.16admission requirements; and 42.17    (10) financial aid counseling. 42.18    Grants shall be awarded to postsecondary institutions, professional organizations, 42.19community-based organizations, or others deemed appropriate by the director. 42.20    Grants shall be awarded for one year and may be renewed for a second year with 42.21documentation to the Minnesota Office of Higher Education of successful program 42.22outcomes. 42.23    Sec. 34. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read: 42.24    Subd. 2. Eligible students. Eligible students include students in grades six through 42.2512 who meet one or more of the following criteria: 42.26    (1) are counted under section 1124(c) of the Elementary and Secondary Education 42.27Act of 1965 (Title I); 42.28    (2) are eligible for free or reduced-price lunch under the National School Lunch Act; 42.29    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 42.30I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or 42.31    (4) are a member of a group traditionally underrepresented in higher education. 42.32     new text begin Eligible undergraduate students include those who met the student eligibility criteria new text end 42.33 new text begin as 6th through 12th graders. new text end 42.34    Sec. 35. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read: 43.1    Subd. 3. Application process. The director of the Minnesota Office of Higher 43.2Education shall develop a grant application process. The director shall attempt to support 43.3projects in a manner that ensures that eligible students throughout the state have access 43.4to precollege new text begin program new text end services. 43.5    The grant application must include, at a minimum, the following information: 43.6    (1) a description of the characteristics of the students to be served reflective of the 43.7need for services listed in subdivision 1; 43.8    (2) a description of the services to be provided and a timeline for implementation of 43.9the activities; 43.10    (3) a description of how the services provided will foster postsecondary attendance new text begin new text end 43.11 new text begin and support postsecondary retention new text end ; 43.12    (4) a description of how the services will be evaluated to determine whether the 43.13program goals were met; and 43.14    (5) other information as identified by the director. 43.15Grant recipients must specify both program and student outcome goals, and performance 43.16measures for each goal. 43.17    Sec. 36. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read: 43.18    Subd. 6. Program evaluation. Each grant recipient must annually submit a report 43.19to the Minnesota Office of Higher Education delineating its program and student outcome 43.20goals, and activities implemented to achieve the stated outcomes. The goals must be 43.21clearly stated and measurable. Grant recipients are required to collect, analyze, and report 43.22on participation and outcome data that enable the office to verify that the program goals 43.23were met. The office shall maintain: 43.24    (1) information about successful precollege program new text begin and undergraduate student new text end 43.25 new text begin retention program new text end activities for dissemination to individuals throughout the state interested 43.26in adopting or replicating successful program practices; and 43.27    (2) data on the success of the funded projects in increasing the high school 43.28graduation and new text begin , new text end college participation new text begin , and college graduation new text end rates of students served 43.29by the grant recipients. The office may convene meetings of the grant recipients, as 43.30needed, to discuss issues pertaining to the implementation of precollege services new text begin and new text end 43.31 new text begin undergraduate retention programs new text end . 43.32    Sec. 37. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read: 43.33    Subdivision 1. Membership. The board consists of 15 members appointed by the 43.34governor with the advice and consent of the senate. At least one member of the board 44.1must be a resident of each congressional district. new text begin In selecting appointees, the governor new text end 44.2 new text begin must consider the needs of the Board of Trustees and the balance of the board membership new text end 44.3 new text begin with respect to labor and business representation and racial, gender, geographic, and ethnic new text end 44.4 new text begin composition. new text end Three members must be students who are enrolled at least half time in a 44.5degree, diploma, or certificate program or have graduated from an institution governed 44.6by the board within one year of the date of appointment. The student members shall 44.7include: one member from a community college, one member from a state university, and 44.8one member from a technical college. The remaining members must be appointed to 44.9represent the state at large. 44.10    Sec. 38. Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read: 44.11    Subd. 3. Duties. new text begin (a) new text end The advisory council shall: 44.12    (1) develop a statement of the selection criteria to be applied and a description 44.13of the responsibilities and duties of a member of the board and shall distribute this to 44.14potential candidates; and 44.15    (2) for each position on the board, identify and recruit qualified candidates for the 44.16board, based on the background and experience of the candidates, and their potential for 44.17discharging the responsibilities of a member of the board. 44.18     new text begin (b) Selection criteria developed under this section must include the requirement that new text end 44.19 new text begin trustees represent diversity in geography, gender, race, occupation, and experience. new text end 44.20     new text begin (c) Selection criteria developed under this section must also include the identification new text end 44.21 new text begin of the membership needs of the board for individual skills relevant to the governance new text end 44.22 new text begin of the Minnesota State Colleges and Universities and the needs for certain individual new text end 44.23 new text begin characteristics that include geographic location, gender, race, occupation, and experience. new text end 44.24    Sec. 39. Minnesota Statutes 2006, section 136F.03, subdivision 4, is amended to read: 44.25    Subd. 4. Recommendations. new text begin Except for seats filled under section 136F.04 , new text end the 44.26advisory council shall recommend at least two and not more than four candidates for 44.27each seat. By April 15 of each even-numbered year, the advisory council shall submit its 44.28recommendations to the governor. The governor is not bound by these recommendations. 44.29    Sec. 40. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read: 44.30    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 44.31in consultation with the commissioners of employee relations and finance, may develop 44.32policies to allow system office or campus employees on salaries, as defined in section 44.3343A.17, subdivision 1 , to use negative time reporting in which employees report only that 45.1time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 45.2with the commissioners of employee relations and finance, shall evaluate the use of 45.3negative time reporting and its potential for use with other state employees. 45.4    Sec. 41. Minnesota Statutes 2006, section 136F.58, is amended to read: 45.5136F.58 BOOKSTORES new text begin ; COURSE MATERIAL ACQUISITION new text end . 45.6     new text begin Subdivision 1. new text end new text begin Authorization. new text end A state college or university may operate a bookstore 45.7in a state college or university building, or may allocate space in a state college or 45.8university building and permit a person or corporation to operate a bookstore without rent 45.9at the campus' pleasure and on such conditions as the board may impose. The board may 45.10provide insurance, at no cost to the state, for the inventory of a bookstore a state college or 45.11university conducts in its building. 45.12     new text begin Subd. 2. new text end new text begin Course material. new text end new text begin (a) An instructor shall attempt to provide adequate new text end 45.13 new text begin notice to a bookstore of the intention to order required or recommended course material new text end 45.14 new text begin so that the bookstore can provide information for the instructor's consideration prior to new text end 45.15 new text begin placing an order for the course material. new text end 45.16     new text begin (b) A bookstore must make reasonable efforts to obtain from publishers or other new text end 45.17 new text begin sources, prior to the time an instructor requests the bookstore to order course material, new text end 45.18 new text begin the following information, including, but not limited to: new text end 45.19     new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of new text end 45.20 new text begin the course material; new text end 45.21     new text begin (2) the price for the course material; new text end 45.22     new text begin (3) whether the course material is bundled with optional material, whether it can be new text end 45.23 new text begin unbundled, and the price for each bundled and unbundled component; new text end 45.24     new text begin (4) whether the material is available in an alternative format and the cost for the new text end 45.25 new text begin alternatively formatted material; new text end 45.26     new text begin (5) the availability of the course material currently and in the future; new text end 45.27     new text begin (6) changes to the course material from the previous edition, the revision date, new text end 45.28 new text begin availability, and cost for that edition, if available; and new text end 45.29     new text begin (7) any known plans for future revisions of the course material. new text end 45.30     new text begin (c) An instructor ordering course material through a bookstore shall consider the new text end 45.31 new text begin information received from the bookstore prior to placing the final order. new text end 45.32     new text begin Subd. 3. new text end new text begin Notice to purchase. new text end new text begin (a) An instructor shall make reasonable efforts to new text end 45.33 new text begin notify a bookstore of the final order for required and recommended course material at least new text end 45.34 new text begin 30 days prior to the commencement of the term. new text end 46.1     new text begin (b) The bookstore must make reasonable efforts to notify students of the following new text end 46.2 new text begin information concerning the required and recommended course material at least 15 days new text end 46.3 new text begin prior to the commencement of the term for which the course material is required including, new text end 46.4 new text begin but not limited to: new text end 46.5     new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of new text end 46.6 new text begin the course material; new text end 46.7     new text begin (2) the price for the course material; new text end 46.8     new text begin (3) whether the required course material is bundled with optional material, whether new text end 46.9 new text begin it can be unbundled, and the price for each bundled and unbundled component; and new text end 46.10     new text begin (4) whether the material is available in an alternative format and the cost for the new text end 46.11 new text begin alternatively formatted material. new text end 46.12     new text begin Subd. 4. new text end new text begin System responsibility. new text end new text begin The board shall, to the extent it considers new text end 46.13 new text begin necessary, adopt uniform forms for bookstores to request information under subdivision 2. new text end 46.14 new text begin The board shall encourage faculty to utilize the information received under subdivision 2 new text end 46.15 new text begin to achieve the lowest cost to students for course materials consistent with the academic new text end 46.16 new text begin freedom and choice of the faculty member. new text end 46.17    Sec. 42. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read: 46.18    Subd. 2. Activity funds. All receipts attributable to the state colleges and 46.19universities activity funds and deposited in the state treasury are appropriated to the board 46.20and are not subject to budgetary control as exercised by the commissioner of finance. 46.21    Sec. 43. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 46.22to read: 46.23     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 new text end 46.24 new text begin have authority to control the amount and manner of deposit of all receipts described in new text end 46.25 new text begin this section in depositories selected by the board. The board's authority shall include new text end 46.26 new text begin specifying the considerations, financial activities, and conditions required from the new text end 46.27 new text begin depository, including the requirement of collateral security or a corporate surety bond new text end 46.28 new text begin as described in section 118A.03. The board may compensate the depository, including new text end 46.29 new text begin paying a reasonable charge to the depository, maintaining appropriate compensating new text end 46.30 new text begin balances with the depository, or purchasing non-interest-bearing certificates of deposit new text end 46.31 new text begin from the depository for performing depository-related services. new text end 46.32    Sec. 44. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read: 47.1    Subd. 5. Amount of matching grant. The amount of the matching grant for a 47.2beneficiary equals: 47.3    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 47.4of the contributions made to the beneficiary's account during the calendar year, not to 47.5exceed $300 new text begin $400 new text end ; and 47.6    (2) if the beneficiary's family income is more than $50,000 but not more than 47.7$80,000, five new text begin ten new text end percent of the sum of the contributions made to the beneficiary's account 47.8during the calendar year, not to exceed $300 new text begin $400 new text end . 47.9    Sec. 45. Minnesota Statutes 2006, section 137.0245, subdivision 1, is amended to read: 47.10    Subdivision 1. Establishment. A Regent Candidate Advisory Council is established 47.11to assist in determining criteria for, and identifying and recruiting qualified candidates for 47.12membership on the Board of Regents and making recommendations to the governor new text begin joint new text end 47.13 new text begin legislative committee described in section 137.0246, subdivision 2 new text end . 47.14    Sec. 46. Minnesota Statutes 2006, section 137.0245, subdivision 4, is amended to read: 47.15    Subd. 4. Recommendations. (a) The advisory council shall recommend at least 47.16two and not more than four candidates. By January 15 of each odd-numbered year, 47.17the advisory council shall submit its recommendations to the governor new text begin joint legislative new text end 47.18 new text begin committee described in section 137.0246, subdivision 2 new text end . 47.19    (b) The advisory council must submit a report to the governor new text begin joint committee new text end on the 47.20needs criterion identified under subdivision 3, paragraph (c), at the same time it submits its 47.21recommendations. 47.22    Sec. 47. Minnesota Statutes 2006, section 137.0246, is amended to read: 47.23137.0246 REGENT NOMINATION AND ELECTION. 47.24    Subdivision 1. Governor nomination. By February 15 following the receipt 47.25of recommendations from the advisory council, the governor must submit to the joint 47.26committee established under subdivision 2 a slate of regent nominations that complies with 47.27sections and . The slate must name one nominee for each vacancy. In 47.28selecting nominees, the governor must consider the needs of the Board of Regents and the 47.29balance of the board membership with respect to gender, racial, and ethnic composition. 47.30The governor must inform the joint committee how each candidate and the slate meet the 47.31needs identified in the report under section 137.0245, subdivision 4, paragraph (b). 47.32    Subd. 2. new text begin Regent nomination new text end joint committee. (a) The joint legislative committee 47.33consists of 20 legislator members. Ten members shall be appointed by the speaker of the 48.1house. Ten members shall be appointed by the Subcommittee on Committees of the 48.2Committee on Rules and Administration from the senate. An equal number of members 48.3from the majority and minority party shall be appointed from each house. The members 48.4appointed from the minority party must be appointed from among those recommended by 48.5the minority leader. The chairs of the education policy committees and new text begin the members new text end of the 48.6higher education budget new text begin and policy new text end divisions and the ranking minority member of those 48.7committees and divisions must be appointed new text begin in each house of the legislature new text end . new text begin The chairs new text end 48.8 new text begin of the divisions from each body shall be cochairs of the joint legislative committee. new text end A 48.9majority of the members from each house is a quorum of the joint committee. 48.10    (b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 48.11resolution, the joint legislative committee shall meet to consider the governor's nominees 48.12 new text begin advisory council's recommendations new text end for regent of the University of Minnesota for possible 48.13presentation to a joint convention of the legislature. 48.14    (c) The joint committee may only recommend to the joint convention nominees 48.15 new text begin candidates new text end recommended by the governor new text begin advisory council and the other candidates new text end 48.16 new text begin nominated by the joint committee new text end . If the joint committee does not recommend a 48.17governor's nominee, the governor must submit a different nominee for the same vacancy. new text begin new text end 48.18 new text begin A candidate other than those recommended by the advisory council may be nominated new text end 48.19 new text begin for consideration by the joint committee only if the nomination receives the support of at new text end 48.20 new text begin least three house of representatives members of the committee and two senate members new text end 48.21 new text begin of the committee. A candidate must receive a majority vote of members from the house new text end 48.22 new text begin of representatives and from the senate on the joint committee to be recommended to the new text end 48.23 new text begin joint convention. The joint committee may recommend no more than one candidate for new text end 48.24 new text begin each vacancy. In recommending nominees, the joint committee must consider the needs of new text end 48.25 new text begin the Board of Regents and the balance of the board membership with respect to gender, new text end 48.26 new text begin racial, and ethnic composition. new text end 48.27     new text begin (d) The joint committee must meet twice, approximately one week apart. The first new text end 48.28 new text begin meeting is for the purpose of interviewing candidates and recommending candidates for new text end 48.29 new text begin the joint committee to consider. The second meeting is for the purpose of voting for new text end 48.30 new text begin candidates for recommendation to the joint convention. new text end 48.31    Sec. 48. new text begin [137.0252] APPROPRIATION; CONTRACT BUYOUT. new text end 48.32     new text begin No appropriation from the state of Minnesota to the governing board of the new text end 48.33 new text begin University of Minnesota shall be used directly or indirectly for costs related to the early new text end 48.34 new text begin termination of a contract of a coach who reports to the director of athletics. new text end 49.1    Sec. 49. Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read: 49.2    Subd. 4. Delayed payment of tuition. A state college or university may not assess 49.3late fees or other late charges for veterans who are eligible to receive federal new text begin or state new text end 49.4educational assistance and who have applied for that assistance but not yet received it, 49.5nor may they prevent these students from registering for a subsequent term because of 49.6outstanding tuition charges that arise from delayed federal new text begin or state new text end payments. The state 49.7college or university may request without delay the amount of tuition above expected 49.8federal new text begin and state new text end educational assistance and may require payment of the full amount of 49.9tuition owed by the veteran within 30 days of receipt of the expected federal new text begin or state new text end 49.10educational assistance. 49.11    Sec. 50. new text begin [197.791] MINNESOTA GI BILL PROGRAM. new text end 49.12     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) The definitions in this subdivision apply to this new text end 49.13 new text begin section. new text end 49.14     new text begin (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise new text end 49.15 new text begin specified. new text end 49.16     new text begin (c) "Cost of attendance" for both graduate and undergraduate students has the new text end 49.17 new text begin meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.1. The new text end 49.18 new text begin tuition and fee maximum established by law for four-year programs shall be used to new text end 49.19 new text begin calculate the tuition and fee maximum under section 136A.121, subdivision 6, for new text end 49.20 new text begin a graduate student. new text end 49.21     new text begin (d) "Child" means a natural or adopted child of a person described in subdivision 4, new text end 49.22 new text begin paragraph (a), clause (1), item (i) or (ii). new text end 49.23     new text begin (e) "Eligible institution" means a postsecondary institution under section 136A.101, new text end 49.24 new text begin subdivision 4. new text end 49.25     new text begin (f) "Program" means the Minnesota GI Bill program established in this section, new text end 49.26 new text begin unless otherwise specified. new text end 49.27     new text begin (g) "Time of hostilities" means any action by the armed forces of the United States new text end 49.28 new text begin that is recognized by the issuance of a presidential proclamation or a presidential executive new text end 49.29 new text begin order in which the armed forces expeditionary medal or other campaign service medals new text end 49.30 new text begin are awarded according to presidential executive order, and any additional period or place new text end 49.31 new text begin that the commissioner determines and designates, after consultation with the United States new text end 49.32 new text begin Department of Defense, to be a period or place where the United States is in a conflict that new text end 49.33 new text begin places persons at such a risk that service in a foreign country during that period or in that new text end 49.34 new text begin place should be considered to be included. new text end 50.1     new text begin (h) "Veteran" has the meaning given in section 197.447. Veteran also includes new text end 50.2 new text begin a service member who has received an honorable discharge after leaving each period of new text end 50.3 new text begin federal active duty service and has: new text end 50.4     new text begin (1) served 90 days or more of federal active duty in a foreign country during a time new text end 50.5 new text begin of hostilities in that country; or new text end 50.6     new text begin (2) received a service-related medical discharge from any period of service in a new text end 50.7 new text begin foreign country during a time of hostilities in that country. new text end 50.8 new text begin A service member who has fulfilled the requirements for being a veteran under this new text end 50.9 new text begin paragraph but is still serving actively in the United States armed forces is also a veteran new text end 50.10 new text begin for the purposes of this section. new text end 50.11     new text begin Subd. 2. new text end new text begin Program established. new text end new text begin The Minnesota GI Bill Program is established to new text end 50.12 new text begin provide postsecondary educational assistance to eligible Minnesota veterans and to the new text end 50.13 new text begin children and spouses of deceased and severely disabled Minnesota veterans. new text end 50.14     new text begin The commissioner, in cooperation with eligible postsecondary educational new text end 50.15 new text begin institutions, shall administer the program for the purpose of providing postsecondary new text end 50.16 new text begin educational assistance to eligible persons in accordance with this section. Each public new text end 50.17 new text begin postsecondary educational institution in the state must participate in the program and each new text end 50.18 new text begin private postsecondary educational institution in the state is encouraged to participate in the new text end 50.19 new text begin program. Any participating private institution may suspend or terminate its participation new text end 50.20 new text begin in the program at the end of any semester or other academic term. new text end 50.21     new text begin Subd. 3. new text end new text begin Duties; responsibilities. new text end new text begin (a) The commissioner shall establish policies new text end 50.22 new text begin and procedures including, but not limited to, procedures for student application record new text end 50.23 new text begin keeping, information sharing, payment of educational assistance benefits, and other new text end 50.24 new text begin procedures the commissioner considers appropriate and necessary for effective and new text end 50.25 new text begin efficient administration of the program established in this section. new text end 50.26     new text begin (b) The commissioner may delegate part or all of the administrative procedures new text end 50.27 new text begin for the program to responsible representatives of participating eligible institutions. The new text end 50.28 new text begin commissioner may execute an interagency agreement with the Office of Higher Education new text end 50.29 new text begin for services the commissioner determines necessary to administer the program. new text end 50.30     new text begin Subd. 4. new text end new text begin Eligibility. new text end new text begin (a) A person is eligible for educational assistance under this new text end 50.31 new text begin section if: new text end 50.32     new text begin (1) the person is: new text end 50.33     new text begin (i) a veteran who is serving or has served honorably in any branch or unit of the new text end 50.34 new text begin United States armed forces at any time on or after September 11, 2001; new text end 50.35     new text begin (ii) a nonveteran who has served honorably for a total of five years or more new text end 50.36 new text begin cumulatively as a member of the Minnesota National Guard or any other active or reserve new text end 51.1 new text begin component of the United States armed forces, and any part of that service occurred on or new text end 51.2 new text begin after September 11, 2001; new text end 51.3     new text begin (iii) the surviving spouse or child of a person who has served in the military at any new text end 51.4 new text begin time on or after September 11, 2001, and who has died as a direct result of that military new text end 51.5 new text begin service; or new text end 51.6     new text begin (iv) the spouse or child of a person who has served in the military at any time on or new text end 51.7 new text begin after September 11, 2001, and who has a total and permanent service-connected disability new text end 51.8 new text begin as rated by the United States Veterans Administration; new text end 51.9     new text begin (2) the person providing the military service described in clause (1), items (i) to (iv), new text end 51.10 new text begin was a Minnesota resident within six months of the time of the person's initial enlistment or new text end 51.11 new text begin any reenlistment in the United States armed forces; new text end 51.12     new text begin (3) the person receiving the educational assistance is a Minnesota resident, as new text end 51.13 new text begin defined in section 136A.101, subdivision 8; and new text end 51.14     new text begin (4) the person receiving the educational assistance: new text end 51.15     new text begin (i) is an undergraduate or graduate student at an eligible institution; new text end 51.16     new text begin (ii) is maintaining satisfactory academic progress as defined by the institution for new text end 51.17 new text begin students participating in federal Title IV programs; new text end 51.18     new text begin (iii) is enrolled in an education program leading to a certificate, diploma, or degree new text end 51.19 new text begin at an eligible institution; new text end 51.20     new text begin (iv) has applied for educational assistance under this section prior to the end of the new text end 51.21 new text begin academic term for which the assistance is being requested; new text end 51.22     new text begin (v) is in compliance with child support payment requirements under section new text end 51.23 new text begin 136A.121, subdivision 2, clause (5); and new text end 51.24     new text begin (vi) if an undergraduate student, has applied for the federal Pell Grant and the new text end 51.25 new text begin Minnesota State Grant. new text end 51.26     new text begin (b) A person's eligibility terminates when the person becomes eligible for benefits new text end 51.27 new text begin under section 135A.52. new text end 51.28     new text begin (c) To determine eligibility, the commissioner may require official documentation, new text end 51.29 new text begin including the person's federal form DD-214 or other official military discharge papers; new text end 51.30 new text begin correspondence from the United States Veterans Administration; birth certificate; marriage new text end 51.31 new text begin certificate; proof of enrollment at an eligible institution; signed affidavits; proof of new text end 51.32 new text begin residency; proof of identity; or any other official documentation the commissioner new text end 51.33 new text begin considers necessary to determine eligibility. new text end 51.34     new text begin (d) The commissioner may deny eligibility or terminate benefits under this section new text end 51.35 new text begin to any person who has not provided sufficient documentation to determine eligibility for new text end 51.36 new text begin the program. An applicant may appeal the commissioner's eligibility determination or new text end 52.1 new text begin termination of benefits in writing to the commissioner at any time. The commissioner new text end 52.2 new text begin must rule on any application or appeal within 30 days of receipt of all documentation that new text end 52.3 new text begin the commissioner requires. The decision of the commissioner regarding an appeal is final. new text end 52.4 new text begin However, an applicant whose appeal of an eligibility determination has been rejected by new text end 52.5 new text begin the commissioner may submit an additional appeal of that determination in writing to the new text end 52.6 new text begin commissioner at any time that the applicant is able to provide substantively significant new text end 52.7 new text begin additional information regarding the applicant's eligibility for the program. An approval new text end 52.8 new text begin of an applicant's eligibility by the commissioner following an appeal by the applicant is new text end 52.9 new text begin not retroactively effective for more than one year or the semester of the person's original new text end 52.10 new text begin application, whichever is later. new text end 52.11     new text begin (e) Upon receiving an application with insufficient documentation to determine new text end 52.12 new text begin eligibility, the commissioner must notify the applicant within 30 days of receipt of the new text end 52.13 new text begin application that the application is being suspended pending receipt by the commissioner of new text end 52.14 new text begin sufficient documentation from the applicant to determine eligibility. new text end 52.15     new text begin Subd. 5. new text end new text begin Benefit amount. new text end new text begin (a) On approval by the commissioner of eligibility for new text end 52.16 new text begin the program, the applicant shall be awarded, on a funds-available basis, the educational new text end 52.17 new text begin assistance under the program for use at any time according to program rules at any new text end 52.18 new text begin eligible institution. new text end 52.19     new text begin (b) The amount of educational assistance in any semester or term for an eligible new text end 52.20 new text begin person must be determined by subtracting from the eligible person's cost of attendance the new text end 52.21 new text begin amount the person received or was eligible to receive in that semester or term from: new text end 52.22     new text begin (1) the federal Pell Grant; new text end 52.23     new text begin (2) the state grant program under section 136A.121; and new text end 52.24     new text begin (3) any federal military or veterans educational benefits including but not limited new text end 52.25 new text begin to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, new text end 52.26 new text begin vocational rehabilitation benefits, and any other federal benefits associated with the new text end 52.27 new text begin person's status as a veteran, except veterans disability payments from the United States new text end 52.28 new text begin Veterans Administration. new text end 52.29     new text begin (c) The amount of educational assistance for any eligible person who is a full-time new text end 52.30 new text begin student must not exceed the following: new text end 52.31     new text begin (1) $1,000 per semester or term of enrollment; new text end 52.32     new text begin (2) $2,000 per state fiscal year; and new text end 52.33     new text begin (3) $10,000 in a lifetime. new text end 52.34 new text begin For a part-time student, the amount of educational assistance must not exceed $500 new text end 52.35 new text begin per semester or term of enrollment. For the purpose of this paragraph, a part-time new text end 52.36 new text begin undergraduate student is a student taking fewer than 12 credits for a semester or term new text end 53.1 new text begin of enrollment and a part-time graduate student is a student considered part-time by the new text end 53.2 new text begin eligible institution the graduate student is attending. new text end 53.3     new text begin Subd. 6. new text end new text begin Insufficient appropriation. new text end new text begin If the amount appropriated is determined new text end 53.4 new text begin by the commissioner to be insufficient to pay the benefit amounts in subdivision 5, the new text end 53.5 new text begin commissioner must reduce the amounts specified in subdivision 5, paragraph (c), clauses new text end 53.6 new text begin (1) and (2). new text end 53.7 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007, and applies to new text end 53.8 new text begin qualifying coursework taken on or after that date. new text end 53.9    Sec. 51. new text begin MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE new text end 53.10 new text begin AT WORTHINGTON; YMCA LEASE AGREEMENT. new text end 53.11     new text begin (a) The Board of Trustees of Minnesota State Colleges and Universities may enter new text end 53.12 new text begin into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on new text end 53.13 new text begin the Minnesota West Community and Technical College at Worthington campus for the new text end 53.14 new text begin construction of a YMCA facility. The lease may also include the city of Worthington. new text end 53.15     new text begin (b) Siting and design of the facility must be consistent with the college's master new text end 53.16 new text begin plan and Minnesota State Colleges and Universities' building standards. Minnesota new text end 53.17 new text begin West Community and Technical College may negotiate for use of the facility for college new text end 53.18 new text begin purposes. The lease must contain a provision that the lease shall terminate if the improved new text end 53.19 new text begin property is no longer used for the partial benefit of the students at the Worthington campus. new text end 53.20    Sec. 52. new text begin INTEREST RATE PROTECTION AGREEMENTS; REPORT. new text end 53.21     new text begin The Office of Higher Education must report by February 1, 2009, to the senate and new text end 53.22 new text begin house of representatives committees with primary jurisdiction over higher education new text end 53.23 new text begin finance and policy on the results of the office's interest rate protection agreement activity new text end 53.24 new text begin under Minnesota Statutes, section 136A.16, subdivision 16. new text end 53.25    Sec. 53. new text begin REPEALER. new text end 53.26 new text begin (a) new text end new text begin Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, and 6; new text end 53.27 new text begin 135A.032; 135A.033; 135A.045; 135A.053; 136A.07; and 136A.08, subdivision 8, new text end new text begin are new text end 53.28 new text begin repealed. new text end 53.29 new text begin (b) new text end new text begin Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; new text end 53.30 new text begin and 4, subdivision 5, new text end new text begin are repealed. new text end 54.1ARTICLE 3 54.2PRIVATE INSTITUTIONS 54.3    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read: 54.4136A.61 POLICY. 54.5    The legislature has found and hereby declares that the availability of legitimate 54.6courses and programs leading to academic degrees offered by responsible private 54.7 new text begin not-for-profit and for-profit new text end institutions of postsecondary education and the existence 54.8of legitimate private colleges and universities are in the best interests of the people of 54.9this state. The legislature has found and declares that the state can provide assistance 54.10and protection for persons choosing private institutions and programs, by establishing 54.11policies and procedures to assure the authenticity and legitimacy of private postsecondary 54.12education institutions and programs. The legislature has also found and declares that 54.13this same policy applies to any new text begin private and new text end public postsecondary educational institution 54.14located in another state or country which offers or makes available to a Minnesota resident 54.15any course, program or educational activity which does not require the leaving of the 54.16state for its completion. 54.17    Sec. 2. new text begin [136A.615] CITATION. new text end 54.18     new text begin Sections 136A.61 to 136A.71 may be cited as the "Minnesota Private and new text end 54.19 new text begin Out-of-State Public Postsecondary Education Act." new text end 54.20    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read: 54.21    Subd. 3. School. "School" means new text begin : new text end 54.22     new text begin (1) new text end any individual, partnership, company, firm, society, trust, association, 54.23corporation, or any combination thereof, which (a) new text begin (i) new text end is, owns, or operates a private, 54.24nonprofit postsecondary education institution; (b) new text begin (ii) is, owns, or operates a private, new text end 54.25 new text begin for-profit postsecondary education institution; or (iii) new text end provides a postsecondary 54.26instructional program or course leading to a degree whether or not for profit; (c) is, owns, 54.27or operates a private, postsecondary education institution which uses the term "college", 54.28"academy", "institute" or "university" in its name; or (d) operates for profit and provides 54.29programs or courses which are intended to allow an individual to fulfill in part or totally 54.30the requirements necessary to maintain a license to practice an occupation. School shall 54.31also mean 55.1     new text begin (2) new text end any public postsecondary educational institution located in another state or 55.2country which offers or makes available to a Minnesota resident any course, program or 55.3educational activity which does not require the leaving of the state for its completion new text begin ; or new text end 55.4     new text begin (3) any individual, entity, or postsecondary institution located in another state new text end 55.5 new text begin that contracts with any school located within the state of Minnesota for the purpose of new text end 55.6 new text begin providing educational programs, training programs, or awarding postsecondary credits new text end 55.7 new text begin or continuing education credits to Minnesota residents that may be applied to a degree new text end 55.8 new text begin program new text end . 55.9    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read: 55.10136A.63 REGISTRATION. 55.11     new text begin Subdivision 1. new text end new text begin Annual registration. new text end All schools located within Minnesota and 55.12all schools located outside Minnesota which offer new text begin degree new text end programs or courses within 55.13Minnesota shall register annually with the office. 55.14     new text begin Subd. 2. new text end new text begin Sale of an institution. new text end new text begin Within 30 days of a change of its ownership a school new text end 55.15 new text begin must submit a registration renewal application, all usual and ordinary information and new text end 55.16 new text begin materials for an initial registration, and applicable registration fees for a new institution. new text end 55.17 new text begin For purposes of this subdivision, "change of ownership" means a merger or consolidation new text end 55.18 new text begin with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of new text end 55.19 new text begin the assets of a school; the transfer of a controlling interest of at least 51 percent of the new text end 55.20 new text begin school's stock; or a change in the not-for-profit or for-profit status of a school. new text end 55.21    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read: 55.22136A.64 INFORMATION new text begin REQUIRED FOR REGISTRATION new text end . 55.23    Subdivision 1. Schools to provide information. As a basis for registration, schools 55.24shall provide the office with such information as the office needs to determine the nature 55.25and activities of the school, including but not limited to, requirements for admission, 55.26enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 55.27employed. The office shall have the authority to verify the accuracy of the information 55.28submitted to it by inspection or any other means it deems necessary. new text begin the following which new text end 55.29 new text begin shall be accompanied by an affidavit attesting to its accuracy and truthfulness: new text end 55.30     new text begin (1) articles of incorporation, constitution, bylaws, or other operating documents; new text end 55.31     new text begin (2) a duly adopted statement of the school's mission and goals; new text end 55.32     new text begin (3) evidence of current school or program licenses granted by departments or new text end 55.33 new text begin agencies of any state; new text end 56.1     new text begin (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate new text end 56.2 new text begin past fiscal year including any management letters provided by the independent auditor new text end 56.3 new text begin or, if the school is a public institution outside Minnesota, an income statement for the new text end 56.4 new text begin immediate past fiscal year; new text end 56.5     new text begin (5) all current promotional and recruitment materials and advertisements; and new text end 56.6     new text begin (6) the current school catalog and, if not contained in the catalog: new text end 56.7     new text begin (i) the members of the board of trustees or directors, if any; new text end 56.8     new text begin (ii) the current institutional officers; new text end 56.9     new text begin (iii) current full-time and part-time faculty with degrees held or applicable new text end 56.10 new text begin experience; new text end 56.11     new text begin (iv) a description of all school facilities; new text end 56.12     new text begin (v) a description of all current course offerings; new text end 56.13     new text begin (vi) all requirements for satisfactory completion of courses, programs, and degrees; new text end 56.14     new text begin (vii) the school's policy about freedom or limitation of expression and inquiry; new text end 56.15     new text begin (viii) a current schedule of fees, charges for tuition, required supplies, student new text end 56.16 new text begin activities, housing, and all other standard charges; new text end 56.17     new text begin (ix) the school's policy about refunds and adjustments; new text end 56.18     new text begin (x) the school's policy about granting credit for prior education, training, and new text end 56.19 new text begin experience; and new text end 56.20     new text begin (xi) the school's policies about student admission, evaluation, suspension, and new text end 56.21 new text begin dismissal. new text end 56.22    Subd. 2. Financial records. The office shall not disclose financial records new text begin or new text end 56.23 new text begin accreditation reports new text end provided to it by a school pursuant to this section except for the 56.24purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 56.25decision to approve or not to approve the granting of degrees or the use of a name by the 56.26school. Section 15.17, subdivision 4, shall not apply to such records. 56.27     new text begin Subd. 3. new text end new text begin Additional information. new text end new text begin If the office is unable to determine the nature new text end 56.28 new text begin and activities of a school on the basis of the information in subdivision 1, the office shall new text end 56.29 new text begin notify the school of additional information needed. new text end 56.30     new text begin Subd. 4. new text end new text begin Verification of information. new text end new text begin The office may verify the accuracy of new text end 56.31 new text begin submitted information by inspection, visitation, or any other means it considers necessary. new text end 56.32     new text begin Subd. 5. new text end new text begin Public information. new text end new text begin All information submitted to the office is public new text end 56.33 new text begin information except financial and accreditation records and information. The office may new text end 56.34 new text begin disclose financial records or information to defend its decision to approve or disapprove new text end 56.35 new text begin granting of degrees or the use of a name or its decisions to revoke the approval at a hearing new text end 56.36 new text begin under chapter 14 or other legal proceedings. new text end 57.1     new text begin Subd. 6. new text end new text begin Late registration penalty. new text end new text begin Applications for renewal for any registration new text end 57.2 new text begin received after the deadline date specified in the renewal materials provided by the office new text end 57.3 new text begin are subject to a late fee equal to 20 percent of the annual registration renewal fee. new text end 57.4     new text begin Subd. 7. new text end new text begin Out-of-state expenses. new text end new text begin A school shall reimburse the office for actual costs new text end 57.5 new text begin associated with a site evaluation visit outside Minnesota if the visit is necessary under new text end 57.6 new text begin subdivision 1 or 3. new text end 57.7    Sec. 6. new text begin [136A.645] SCHOOL CLOSURE. new text end 57.8     new text begin When a school decides to cease postsecondary education operations, it must new text end 57.9 new text begin cooperate with the office in assisting students to find alternative means to complete their new text end 57.10 new text begin studies with a minimum of disruption, and inform the office of the following: new text end 57.11     new text begin (1) the planned date for termination of postsecondary education operations; new text end 57.12     new text begin (2) the planned date for the transfer of the student records; new text end 57.13     new text begin (3) confirmation of the name and address of the organization to receive and hold new text end 57.14 new text begin the student records; and new text end 57.15     new text begin (4) the official at the organization receiving the student records who is designated to new text end 57.16 new text begin provide official copies of records or transcripts upon request. new text end 57.17 new text begin Upon notice from a school of its intention to cease operations, the office shall notify the new text end 57.18 new text begin school of the date on which it must cease the enrollment of students and all postsecondary new text end 57.19 new text begin educational operations. new text end 57.20    Sec. 7. new text begin [136A.646] ADDITIONAL SECURITY. new text end 57.21     new text begin In the event any registered institution is notified by the United States Department new text end 57.22 new text begin of Education that it has fallen below minimum financial standards and that its continued new text end 57.23 new text begin participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, new text end 57.24 new text begin Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit new text end 57.25 new text begin Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the new text end 57.26 new text begin institution shall provide a surety bond conditioned upon the faithful performance of all new text end 57.27 new text begin contracts and agreements with students in a sum equal to the "letter of credit" required by new text end 57.28 new text begin the United States Department of Education in the Letter of Credit Alternative, but in no new text end 57.29 new text begin event shall such bond be less than $10,000 nor more than $250,000. new text end 57.30    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read: 57.31136A.65 APPROVAL OF DEGREES AND NAME. 57.32    Subdivision 1. Prohibition. No school subject to registration shall grant a degree 57.33unless such degree is new text begin and its underlying curriculum are new text end approved by the office, nor 58.1shall any school subject to registration use the name "college," "academy," "institute" or 58.2"university" in its name without approval by the office. 58.3     new text begin Subd. 1a. new text end new text begin Accreditation; requirement. new text end new text begin A school must not be registered or new text end 58.4 new text begin authorized to offer any degree at any level unless the school is accredited by an agency new text end 58.5 new text begin recognized by the United States Department of Education for purposes of eligibility to new text end 58.6 new text begin participate in Title IV federal financial aid programs. Any registered school undergoing new text end 58.7 new text begin institutional accreditation shall inform the office of site visits by the accrediting agency new text end 58.8 new text begin and provide office staff the opportunity to attend the visits, including any exit interviews. new text end 58.9 new text begin The institution must provide the office with a copy of the final report upon receipt. new text end 58.10    Subd. 2. Procedures. The office shall establish procedures for approval, including 58.11notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 58.12granted. If a hearing is requested, no disapproval shall take effect until after such hearing. 58.13    Subd. 3. Application. A school subject to registration shall be granted approval 58.14to use the term "college," "academy," "institute" or "university" in its name whether or 58.15not it offers a program leading to a degree, if it was organized, operating new text begin , new text end and using such 58.16term in its name on or before August 1, 1975 new text begin 2007 new text end , and if it meets the other policies and 58.17standards for approval established by the office. 58.18     new text begin Subd. 4. new text end new text begin Criteria for approval. new text end new text begin (a) A school applying to be registered and to have new text end 58.19 new text begin its degree or degrees and name approved must substantially meet the following criteria: new text end 58.20     new text begin (1) the school has an organizational framework with administrative and teaching new text end 58.21 new text begin personnel to provide the educational programs offered; new text end 58.22     new text begin (2) the school has financial resources sufficient to meet the school's financial new text end 58.23 new text begin obligations, including refunding tuition and other charges consistent with its stated policy new text end 58.24 new text begin if the institution is dissolved, or if claims for refunds are made, to provide service to the new text end 58.25 new text begin students as promised, and to provide educational programs leading to degrees as offered; new text end 58.26     new text begin (3) the school operates in conformity with generally accepted budgeting and new text end 58.27 new text begin accounting principles; new text end 58.28     new text begin (4) the school provides an educational program leading to the degree it offers; new text end 58.29     new text begin (5) the school provides appropriate and accessible library, laboratory, and other new text end 58.30 new text begin physical facilities to support the educational program offered; new text end 58.31     new text begin (6) the school has a policy on freedom or limitation of expression and inquiry for new text end 58.32 new text begin faculty and students which is published or available on request; new text end 58.33     new text begin (7) the school uses only publications and advertisements which are truthful and do new text end 58.34 new text begin not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the new text end 58.35 new text begin school, its personnel, programs, services, or occupational opportunities for its graduates new text end 58.36 new text begin for promotion and student recruitment; new text end 59.1     new text begin (8) the school's compensated recruiting agents who are operating in Minnesota new text end 59.2 new text begin identify themselves as agents of the school when talking to or corresponding with students new text end 59.3 new text begin and prospective students; and new text end 59.4     new text begin (9) the school provides information to students and prospective students concerning: new text end 59.5     new text begin (i) comprehensive and accurate policies relating to student admission, evaluation, new text end 59.6 new text begin suspension, and dismissal; new text end 59.7     new text begin (ii) clear and accurate policies relating to granting credit for prior education, training, new text end 59.8 new text begin and experience and for courses offered by the school; new text end 59.9     new text begin (iii) current schedules of fees, charges for tuition, required supplies, student new text end 59.10 new text begin activities, housing, and all other standard charges; new text end 59.11     new text begin (iv) policies regarding refunds and adjustments for withdrawal or modification new text end 59.12 new text begin of enrollment status; and new text end 59.13     new text begin (v) procedures and standards used for selection of recipients and the terms of new text end 59.14 new text begin payment and repayment for any financial aid program. new text end 59.15     new text begin (b) An application for degree approval must also include: new text end 59.16     new text begin (i) title of degree and formal recognition awarded; new text end 59.17     new text begin (ii) location where such degree will be offered; new text end 59.18     new text begin (iii) proposed implementation date of the degree; new text end 59.19     new text begin (iv) admissions requirements for the degree; new text end 59.20     new text begin (v) length of the degree; new text end 59.21     new text begin (vi) projected enrollment for a period of five years; new text end 59.22     new text begin (vii) the curriculum required for the degree, including course syllabi or outlines; new text end 59.23     new text begin (viii) statement of academic and administrative mechanisms planned for monitoring new text end 59.24 new text begin the quality of the proposed degree; new text end 59.25     new text begin (ix) statement of satisfaction of professional licensure criteria, if applicable; new text end 59.26     new text begin (x) documentation of the availability of clinical, internship, externship, or practicum new text end 59.27 new text begin sites, if applicable; and new text end 59.28     new text begin (xi) statement of how the degree fulfills the institution's mission and goals, new text end 59.29 new text begin complements existing degrees, and contributes to the school's viability. new text end 59.30     new text begin Subd. 5. new text end new text begin Requirements for degree approval. new text end new text begin For each degree a school offers to a new text end 59.31 new text begin student, where the student does not leave Minnesota for the major portion of the program new text end 59.32 new text begin or course leading to the degree, the school must have: new text end 59.33     new text begin (1) qualified teaching personnel to provide the educational programs for each degree new text end 59.34 new text begin for which approval is sought; new text end 59.35     new text begin (2) appropriate educational programs leading to each degree for which approval new text end 59.36 new text begin is sought; new text end 60.1     new text begin (3) appropriate and accessible library, laboratory, and other physical facilities to new text end 60.2 new text begin support the educational program for each degree for which approval is sought; and new text end 60.3     new text begin (4) a rationale showing that degree programs are consistent with the school's mission new text end 60.4 new text begin and goals. new text end 60.5     new text begin Subd. 6. new text end new text begin Name. new text end new text begin A school may use the term "academy" or "institute" in its name new text end 60.6 new text begin without meeting any additional requirements. A school may use the term "college" in its new text end 60.7 new text begin name if it offers at least one program leading to an associate degree. A school may use new text end 60.8 new text begin the term "university" in its name if it offers at least one program leading to a master's new text end 60.9 new text begin or doctorate degree. new text end 60.10     new text begin Subd. 7. new text end new text begin Conditional approval. new text end new text begin The office may grant conditional approval for a new text end 60.11 new text begin degree or use of a term in its name for a period of less than one year if doing so would be new text end 60.12 new text begin in the best interests of currently enrolled students or prospective students. new text end 60.13     new text begin Subd. 8. new text end new text begin Disapproval of registration appeal. new text end new text begin (a) If a school's degree or use of a new text end 60.14 new text begin term in its name is disapproved by the office, the school may request a hearing under new text end 60.15 new text begin chapter 14. The request must be in writing and made to the office within 30 days of the new text end 60.16 new text begin date the school is notified of the disapproval. new text end 60.17     new text begin (b) The office may refuse to renew, revoke, or suspend registration, approval of new text end 60.18 new text begin a school's degree, or use of a regulated term in its name by giving written notice and new text end 60.19 new text begin reasons to the school. The school may request a hearing under chapter 14. If a hearing is new text end 60.20 new text begin requested, no revocation or suspension shall take effect until after the hearing. new text end 60.21     new text begin (c) Reasons for revocation or suspension of registration or approval may be for one new text end 60.22 new text begin or more of the following reasons: new text end 60.23     new text begin (1) violating the provisions of sections 136A.61 to 136A.71; new text end 60.24     new text begin (2) providing false, misleading, or incomplete information to the office; new text end 60.25     new text begin (3) presenting information about the school which is false, fraudulent, misleading, new text end 60.26 new text begin deceptive, or inaccurate in a material respect to students or prospective students; or new text end 60.27     new text begin (4) refusing to allow reasonable inspection or to supply reasonable information after new text end 60.28 new text begin a written request by the office has been received. new text end 60.29    Sec. 9. Minnesota Statutes 2006, section 136A.657, is amended by adding a 60.30subdivision to read: 60.31     new text begin Subd. 4. new text end new text begin Statement required; religious nature. new text end new text begin Any degree awarded upon new text end 60.32 new text begin completion of a religiously exempt program shall include descriptive language to make new text end 60.33 new text begin the religious nature of the award clear. new text end 61.1    Sec. 10. Minnesota Statutes 2006, section 136A.66, is amended to read: 61.2136A.66 LIST. 61.3    The office shall maintain a list of schools new text begin registered institutions new text end authorized to grant 61.4degrees and schools authorized to use the name "college," "academy," "institute" or 61.5"university," and shall make such list available to the public. 61.6    Sec. 11. Minnesota Statutes 2006, section 136A.67, is amended to read: 61.7136A.67 UNAUTHORIZED REPRESENTATIONS. 61.8    No school and none of its officials or employees shall advertise or represent in any 61.9manner that such school is approved or accredited by the office or state of Minnesota 61.10except that any new text begin A new text end school which is duly registered with the office, or any of its officials or 61.11employees, may represent new text begin in advertising and shall disclose in catalogues, applications, new text end 61.12 new text begin and enrollment materials new text end that the school is registered with the office. new text begin by prominently new text end 61.13 new text begin displaying the following statement: "(Name of school) is registered as a private institution new text end 61.14 new text begin with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71. new text end 61.15 new text begin Registration is not an endorsement of the institution. Credits earned at the institution new text end 61.16 new text begin may not transfer to all other institutions." new text end 61.17    Sec. 12. new text begin [136A.675] RISK ANALYSIS. new text end 61.18     new text begin The office shall develop a set of financial and programmatic evaluation metrics to new text end 61.19 new text begin aid in the detection of the failure or potential failure of a school to meet the standards new text end 61.20 new text begin established under sections 136A.61 to 136A.71. These metrics shall include indicators new text end 61.21 new text begin of financial stability, changes in the senior management or the financial aid and senior new text end 61.22 new text begin administrative staff of an institution, changes in enrollment, changes in program offerings, new text end 61.23 new text begin and changes in faculty staffing patterns. The development of financial standards shall use new text end 61.24 new text begin industry standards as benchmarks. The development of the nonfinancial standards shall new text end 61.25 new text begin include a measure of trends and dramatic changes in trends or practice. The agency must new text end 61.26 new text begin specify the metrics and standards for each area and provide a copy to each registered new text end 61.27 new text begin institution and post them on the agency Web site. The agency shall use regularly reported new text end 61.28 new text begin data submitted to the federal government or other regulatory or accreditation agencies new text end 61.29 new text begin wherever possible. The agency may require more frequent data reporting by an institution new text end 61.30 new text begin to ascertain whether the standards are being met. new text end 61.31    Sec. 13. Minnesota Statutes 2006, section 136A.68, is amended to read: 61.32136A.68 RECORDS. 62.1    After August 1, 1975, all schools located in this state must maintain permanent 62.2records of all students enrolled therein at any time. The office may require schools to 62.3provide a plan acceptable to the office for preserving all such records for at least ten years. 62.4The office may require that such plan include the filing of a continuous surety bond or a 62.5deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 62.6records after such school ceases to exist. new text begin A registered school shall maintain a permanent new text end 62.7 new text begin record for each student for 50 years from the last date of the student's attendance. A new text end 62.8 new text begin registered school offering distance instruction to a student located in Minnesota shall new text end 62.9 new text begin maintain a permanent record for each Minnesota student for 50 years from the last date of new text end 62.10 new text begin the student's attendance. Records include a student's academic transcript, documents, and new text end 62.11 new text begin files containing student data about academic credits earned, courses completed, grades new text end 62.12 new text begin awarded, degrees awarded, and periods of attendance. To preserve permanent records, a new text end 62.13 new text begin school shall submit a plan that meets the following requirements: new text end 62.14     new text begin (1) at least one copy of the records must be held in a secure, fireproof depository new text end 62.15 new text begin or duplicate records must be maintained off site in a secure location and in a manner new text end 62.16 new text begin approved by the office; new text end 62.17     new text begin (2) an appropriate official must be designated to provide a student with copies of new text end 62.18 new text begin records or a transcript upon request; new text end 62.19     new text begin (3) an alternative method approved by the office of complying with clauses (1) and new text end 62.20 new text begin (2) must be established if the school ceases to exist; and new text end 62.21     new text begin (4) if the school has no binding agreement approved by the office for preserving new text end 62.22 new text begin student records, a continuous surety bond must be filed with the office in an amount not to new text end 62.23 new text begin exceed $20,000. The bond shall run to the state of Minnesota. new text end 62.24    Sec. 14. Minnesota Statutes 2006, section 136A.69, is amended to read: 62.25136A.69 FEES. 62.26     new text begin Subdivision 1. new text end new text begin Registration fees. new text end The office shall collect reasonable registration 62.27fees that are sufficient to recover, but do not exceed, its costs of administering the 62.28registration program. The office shall charge $1,100 for initial registration fees and $950 62.29for annual renewal fees. 62.30     new text begin Subd. 2. new text end new text begin Degree level addition fee. new text end new text begin The office processing fee for adding a degree new text end 62.31 new text begin level to an existing program is $2,000 per program. new text end 62.32     new text begin Subd. 3. new text end new text begin Program addition fee. new text end new text begin The office processing fee for adding a program new text end 62.33 new text begin that represents a significant departure in the objectives, content, or method of delivery of new text end 62.34 new text begin programs that are currently offered by the school is $500 per program. new text end 63.1     new text begin Subd. 4. new text end new text begin Visit or consulting fee. new text end new text begin If the office determines that a fact-finding visit new text end 63.2 new text begin or outside consultant is necessary to review or evaluate any new or revised program, the new text end 63.3 new text begin office shall be reimbursed for the expenses incurred related to the review as follows: new text end 63.4     new text begin (1) $300 for the team base fee or for a paper review conducted by a consultant if the new text end 63.5 new text begin office determines that a fact-finding visit is not required; new text end 63.6     new text begin (2) $300 for each day or part thereof on site per team member; and new text end 63.7     new text begin (3) the actual cost of customary meals, lodging, and related travel expenses incurred new text end 63.8 new text begin by team members. new text end 63.9     new text begin Subd. 5. new text end new text begin Modification fee. new text end new text begin The fee for modification of any existing program is new text end 63.10 new text begin $100 and is due if there is: new text end 63.11     new text begin (1) an increase or decrease of 25 percent or more from the original date of program new text end 63.12 new text begin approval, in clock hours, credit hours, or calendar length of an existing program; new text end 63.13     new text begin (2) a change in academic measurement from clock hours to credit hours or vice new text end 63.14 new text begin versa; or new text end 63.15     new text begin (3) an addition or alteration of courses that represent a 25 percent change or more in new text end 63.16 new text begin the objectives, content, or methods of delivery. new text end 63.17    Sec. 15. new text begin [136A.705] PENALTY. new text end 63.18     new text begin The director may assess fines for violations of a provision of sections 136A.61 to new text end 63.19 new text begin 136A.71. Each day's failure to comply with a provision of sections 136A.61 to 136A.71 new text end 63.20 new text begin shall be a separate violation and fines shall not exceed $500 per day per violation. new text end 63.21 new text begin Amounts received under this section must be deposited in the special revenue fund and are new text end 63.22 new text begin appropriated to the Office of Higher Education for the purposes in sections 136A.61 to new text end 63.23 new text begin 136A.71. new text end 63.24    Sec. 16. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read: 63.25    Subd. 1a. Office new text begin of Higher Education or office new text end . "Office new text begin of Higher Education new text end " new text begin or new text end 63.26 new text begin "office" new text end means the Minnesota Office of Higher Education. 63.27    Sec. 17. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read: 63.28    Subd. 5. School. "School" means any person, within or outside the state, who 63.29maintains, advertises, new text begin administers, new text end solicits new text begin for new text end , or conducts any program for profit at any new text begin new text end 63.30 new text begin less than an associate degree new text end level other than baccalaureate or graduate programs, and is 63.31not specifically exempted by sections to new text begin and is not registered as a private institution new text end 63.32 new text begin under sections 136A.61 to 136A.71 and is not specifically exempted by section new text end 141.35 new text begin new text end 63.33 new text begin or 141.37 new text end . new text begin School also means any person, within or outside the state, who maintains, new text end 64.1 new text begin advertises, administers, solicits for, or conducts any program at less than an associate new text end 64.2 new text begin degree level, is not registered as a private institution pursuant to sections 136A.61 to new text end 64.3 new text begin 136A.71, and uses the term, "college," "institute," "academy," or "university" in its name. new text end 64.4    Sec. 18. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read: 64.5    Subdivision 1. Required. A school must not maintain, advertise, solicit for, 64.6 new text begin administer, new text end or conduct any program in Minnesota without first obtaining a license from 64.7the office. 64.8    Sec. 19. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read: 64.9    Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 64.10conducts, solicits for, or advertises within the state of Minnesota any program, unless the 64.11applicant files with the office a continuous corporate surety bond written by a company 64.12authorized to do business in Minnesota conditioned upon the faithful performance of all 64.13contracts and agreements with students made by the applicant. 64.14    (b) The amount of the surety bond shall be ten percent of the preceding year's gross 64.15income from student tuition, fees, and other required institutional charges, but in no event 64.16less than $10,000 nor greater than $250,000, except that a school may deposit a greater 64.17amount at its own discretion. A school in each annual application for licensure must 64.18compute the amount of the surety bond and verify that the amount of the surety bond 64.19complies with this subdivision, unless the school maintains a surety bond equal to at least 64.20$250,000. A school that operates at two or more locations may combine gross income 64.21from student tuition, fees, and other required institutional charges for all locations for the 64.22purpose of determining the annual surety bond requirement. The gross tuition and fees 64.23used to determine the amount of the surety bond required for a school having a license for 64.24the sole purpose of recruiting students in Minnesota shall be only that paid to the school 64.25by the students recruited from Minnesota. 64.26    (c) The bond shall run to the state of Minnesota and to any person who may have a 64.27cause of action against the applicant arising at any time after the bond is filed and before it 64.28is canceled for breach of any contract or agreement made by the applicant with any student. 64.29The aggregate liability of the surety for all breaches of the conditions of the bond shall not 64.30exceed the principal sum deposited by the school under paragraph (b). The surety of any 64.31bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 64.32of liability for any breach of condition occurring after the effective date of cancellation. 64.33    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 64.34sum equal to the amount of the required surety bond in cash, or securities as may be 65.1legally purchased by savings banks or for trust funds in an aggregate market value equal 65.2to the amount of the required surety bond. 65.3    (e) Failure of a school to post and maintain the required surety bond or deposit under 65.4paragraph (d) may new text begin shall new text end result in denial, suspension, or revocation of the school's license. 65.5    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read: 65.6    Subd. 7. Minimum standards. A license shall be issued if the office first 65.7determines: 65.8    (1) that the applicant has a sound financial condition with sufficient resources 65.9available to: 65.10    (i) meet the school's financial obligations; 65.11    (ii) refund all tuition and other charges, within a reasonable period of time, in the 65.12event of dissolution of the school or in the event of any justifiable claims for refund against 65.13the school by the student body; 65.14    (iii) provide adequate service to its students and prospective students; and 65.15    (iv) maintain and support the school; 65.16    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 65.17and the necessary number of work stations to prepare adequately the students currently 65.18enrolled, and those proposed to be enrolled; 65.19    (3) that the applicant employs a sufficient number of qualified teaching personnel to 65.20provide the educational programs contemplated; 65.21    (4) that the school has an organizational framework with administrative and 65.22instructional personnel to provide the programs and services it intends to offer; 65.23    (5) that the premises and conditions under which the students work and study are 65.24sanitary, healthful, and safe, according to modern standards; 65.25    (6) that the quality and content of each occupational course or program of study 65.26provides education and adequate preparation to enrolled students for entry level positions 65.27in the occupation for which prepared; 65.28    (7) that the living quarters which are owned, maintained, new text begin recommended, new text end or approved 65.29by the applicant for students are sanitary and safe; 65.30    (8) that the contract or enrollment agreement used by the school complies with 65.31the provisions in section 141.265; 65.32    (9) that contracts and agreements do not contain a wage assignment provision or a 65.33confession of judgment clause; and 66.1    (10) that there has been no adjudication of fraud or misrepresentation in any 66.2criminal, civil, or administrative proceeding in any jurisdiction against the school or its 66.3owner, officers, agents, or sponsoring organization. 66.4    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read: 66.5    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 66.6a school, the school shall furnish to the office a catalog, brochure, or electronic display 66.7including: 66.8    (1) identifying data, such as volume number and date of publication; 66.9    (2) name and address of the school and its governing body and officials; 66.10    (3) a calendar of the school showing legal holidays, beginning and ending dates of 66.11each course quarter, term, or semester, and other important dates; 66.12    (4) the school policy and regulations on enrollment including dates and specific 66.13entrance requirements for each program; 66.14    (5) the school policy and regulations about leave, absences, class cuts, make-up 66.15work, tardiness, and interruptions for unsatisfactory attendance; 66.16    (6) the school policy and regulations about standards of progress for the student 66.17including the grading system of the school, the minimum grades considered satisfactory, 66.18conditions for interruption for unsatisfactory grades or progress, a description of any 66.19probationary period allowed by the school, and conditions of reentrance for those 66.20dismissed for unsatisfactory progress; 66.21    (7) the school policy and regulations about student conduct and conditions for 66.22dismissal for unsatisfactory conduct; 66.23    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 66.24activities, laboratory fees, service charges, rentals, deposits, and all other charges; 66.25    (9) the school policy and regulations, including an explanation of section 141.271, 66.26about refunding tuition, fees, and other charges if the student does not enter the program, 66.27withdraws from the program, or the program is discontinued; 66.28    (10) a description of the available facilities and equipment; 66.29    (11) a course outline syllabus for each course offered showing course objectives, 66.30subjects or units in the course, type of work or skill to be learned, and approximate time, 66.31hours, or credits to be spent on each subject or unit; 66.32    (12) the school policy and regulations about granting credit for previous education 66.33and preparation; 66.34    (13) new text begin a notice to students relating to the transferability of any credits earned at the new text end 66.35 new text begin school to other institutions; new text end 67.1     new text begin (14) new text end a procedure for investigating and resolving student complaints; and 67.2    (14) new text begin (15) new text end the name and address of the Minnesota Office of Higher Education. 67.3    A school that is exclusively a distance education school is exempt from clauses 67.4(3) and (5). 67.5    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read: 67.6    Subd. 10. Placement records. (a) Before a license is issued new text begin reissued new text end to a school 67.7that offers, advertises or implies a placement service, the school shall file with the office 67.8for the past year and thereafter at reasonable intervals determined by the office, a certified 67.9copy of the school's placement record, containing a list of graduates, a description of their 67.10jobs, names of their employers, and other information as the office may prescribe. 67.11    (b) Each school that offers a placement service shall furnish to each prospective 67.12student, new text begin upon request, new text end prior to enrollment, written information concerning the percentage 67.13of the previous year's graduates who were placed in the occupation for which prepared or 67.14in related employment. 67.15    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read: 67.16    Subd. 12. Permanent records. A school licensed under this chapter and located 67.17in Minnesota shall maintain a permanent record for each student for 50 years from the 67.18last date of the student's attendance. A school licensed under this chapter and offering 67.19distance instruction to a student located in Minnesota shall maintain a permanent record 67.20for each Minnesota student for 50 years from the last date of the student's attendance. 67.21Records include school transcripts, documents, and files containing student data about 67.22academic credits earned, courses completed, grades awarded, degrees awarded, and 67.23periods of attendance. To preserve permanent records, a school shall submit a plan that 67.24meets the following requirements: 67.25    (1) at least one copy of the records must be held in a secure, fireproof depository; 67.26    (2) an appropriate official must be designated to provide a student with copies of 67.27records or a transcript upon request; 67.28    (3) an alternative method, approved by the office, of complying with clauses (1) and 67.29(2) must be established if the school ceases to exist; and 67.30    (4) a continuous surety bond must be filed with the office in an amount not to exceed 67.31$20,000 if the school has no binding agreement new text begin approved by the office, new text end for preserving 67.32student records or a trust must be arranged if the school ceases to exist. new text begin The bond shall run new text end 67.33 new text begin to the state of Minnesota. new text end 68.1    Sec. 24. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read: 68.2    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 68.3renewal licensure application is: 68.4    (1) for a category A school, as determined by the office, the fee is $865 if the school 68.5offers one program or $1,150 if the school offers two or more programs; and 68.6    (2) for a category B or C school, as determined by the office, the fee is $430 if the 68.7school offers one program or $575 if the school offers two or more programs. 68.8    (b) If a license renewal application is not received by the office by the close of 68.9business at least 60 days before the expiration of the current license, a late fee of $100 68.10per business day new text begin , not to exceed $3,000, new text end shall be assessed. 68.11    Sec. 25. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read: 68.12    Subd. 2. Contract information. A contract or enrollment agreement used by a 68.13school must include at least the following: 68.14    (1) the name and address of the school, clearly stated; 68.15    (2) a clear and conspicuous disclosure that the agreement is a legally binding 68.16instrument upon written acceptance of the student by the school unless canceled under 68.17section 141.271; 68.18    (3) the school's cancellation and refund policy that shall be clearly and conspicuously 68.19entitled "Buyer's Right to Cancel"; 68.20    (4) a clear statement of total cost of the program including tuition and all other 68.21charges; 68.22    (5) the name and description of the program, including the number of hours or 68.23credits of classroom instruction, or distance instruction, that shall be included; and 68.24    (6) a clear and conspicuous explanation of the form and means of notice the student 68.25should use in the event the student elects to cancel the contract or sale, the effective 68.26date of cancellation, and the name and address of the seller to which the notice should 68.27be sent or delivered. 68.28 new text begin The contract or enrollment agreement must not include a wage assignment provision or a new text end 68.29 new text begin confession of judgment clause. new text end 68.30    Sec. 26. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read: 68.31    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 68.32on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 68.33carried, it shall occur on the date the notice is delivered to the school. If a student has not 68.34attended classes new text begin class new text end for a period of 21 consecutive days new text begin without contacting the school to new text end 69.1 new text begin indicate an intent to continue in school or otherwise making arrangements concerning the new text end 69.2 new text begin absence new text end , the student is considered to have withdrawn from school for all purposes as of 69.3the student's last documented date of attendance. 69.4    Sec. 27. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read: 69.5    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 69.6promissory instrument received as payment of tuition or other charge prior to completion 69.7of 50 percent of the program. new text begin , except that new text end prior to that time, instruments may be transferred 69.8by assignment to purchasers who shall be subject to all defenses available against the 69.9school named as payee. 69.10    Sec. 28. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read: 69.11    Subdivision 1. Not to advertise state approval new text begin Disclosure required new text end . Schools, 69.12agents of schools, and solicitors may not advertise or represent in writing or orally that 69.13such school is approved or accredited by the state of Minnesota, except that any new text begin A new text end 69.14school, agent, or solicitor may advertise new text begin represent in advertisements and shall disclose new text end 69.15 new text begin in catalogues, applications, and enrollment materials new text end that the school and solicitor have 69.16been new text begin is new text end duly licensed by the state using new text begin by prominently displaying new text end the following language new text begin new text end 69.17 new text begin statement new text end : 69.18"(Name of school) is licensed as a private career school with the Minnesota Office of 69.19Higher Education new text begin pursuant to Minnesota Statutes, sections 141.21 to 141.32 new text end . Licensure is 69.20not an endorsement of the institution. Credits earned at the institution may not transfer to 69.21all other institutions. The educational programs may not meet the needs of every student 69.22or employer." 69.23    Sec. 29. Minnesota Statutes 2006, section 141.32, is amended to read: 69.24141.32 PENALTY. 69.25    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 69.26to comply with this chapter shall be a separate violation. The office shall adopt rules 69.27establishing a list of civil penalties and the fine associated with each violation. Fines 69.28for violations shall not exceed $500 per day per violation. new text begin The director may assess new text end 69.29 new text begin fines for violations of a provision of this chapter. Each day's failure to comply with this new text end 69.30 new text begin chapter shall be a separate violation and fines shall not exceed $500 per day per violation. new text end 69.31 new text begin Amounts received under this section must be deposited in the special revenue fund and are new text end 69.32 new text begin appropriated to the Office of Higher Education for the purposes of this chapter. new text end 70.1    Sec. 30. Minnesota Statutes 2006, section 141.35, is amended to read: 70.2141.35 EXEMPTIONS. 70.3    Sections 141.21 to shall not apply to the following: 70.4    (1) public postsecondary institutions; 70.5    (2) private postsecondary institutions registered under sections new text begin 136A.615 new text end 70.6to 136A.71 that are nonprofit, or that are for profit and registered under sections 70.7to as of December 31, 1998, or are approved to offer exclusively baccalaureate 70.8or postbaccalaureate programs; 70.9    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 70.10public board of another state or foreign country; 70.11    (4) private schools complying with the requirements of section 120A.22, subdivision 70.124 ; 70.13    (5) courses taught to students in a valid apprenticeship program taught by or 70.14required by a trade union; 70.15    (6) schools exclusively engaged in training physically or mentally disabled persons 70.16for the state of Minnesota; 70.17    (7) schools licensed by boards authorized under Minnesota law to issue licenses; 70.18    (8) schools and educational programs, or training programs, contracted for by 70.19persons, firms, corporations, government agencies, or associations, for the training of their 70.20own employees, for which no fee is charged the employee; 70.21    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 70.22or remedial subjects as determined by the office; 70.23    (10) driver training schools and instructors as defined in section 171.33, subdivisions 70.241 and 2 ; 70.25    (11) classes, courses, or programs conducted by a bona fide trade, professional, or 70.26fraternal organization, solely for that organization's membership; 70.27    (12) new text begin (11) new text end programs in the fine arts provided by organizations exempt from taxation 70.28under section 290.05 and registered with the attorney general under chapter 309. For 70.29the purposes of this clause, "fine arts" means activities resulting in artistic creation or 70.30artistic performance of works of the imagination which are engaged in for the primary 70.31purpose of creative expression rather than commercial sale or employment. In making 70.32this determination the office may seek the advice and recommendation of the Minnesota 70.33Board of the Arts; 70.34    (13) new text begin (12) new text end classes, courses, or programs intended to fulfill the continuing education 70.35requirements for licensure or certification in a profession, that have been approved by 70.36a legislatively or judicially established board or agency responsible for regulating the 71.1practice of the profession, and that are offered exclusively to an individual practicing 71.2the profession; 71.3    (14) new text begin (13) new text end classes, courses, or programs intended to prepare students to sit for 71.4undergraduate, graduate, postgraduate, or occupational licensing and occupational 71.5entrance examinations; 71.6    (15) new text begin (14) new text end classes, courses, or programs providing 16 or fewer clock hours of 71.7instruction that are not part of the curriculum for an occupation or entry level employment; 71.8    (16) new text begin (15) new text end classes, courses, or programs providing instruction in personal 71.9development, modeling, or acting; 71.10    (17) new text begin (16) new text end training or instructional programs, in which one instructor teaches an 71.11individual student, that are not part of the curriculum for an occupation or are not intended 71.12to prepare a person for entry level employment; and 71.13    (18) new text begin (17) new text end schools with no physical presence in Minnesota, as determined by the 71.14office, engaged exclusively in offering distance instruction that are located in and 71.15regulated by other states or jurisdictions. 71.16    Sec. 31. new text begin [141.37] EXEMPTION; RELIGIOUS SCHOOLS. new text end 71.17     new text begin Subdivision 1. new text end new text begin Exemption. new text end new text begin Any school or any department or branch of a school: new text end 71.18     new text begin (1) which is substantially owned, operated, or supported by a bona fide church new text end 71.19 new text begin or religious organization; new text end 71.20     new text begin (2) whose programs are primarily designed for, aimed at, and attended by persons new text end 71.21 new text begin who sincerely hold or seek to learn the particular religious faith or beliefs of that church or new text end 71.22 new text begin religious organization; and new text end 71.23     new text begin (3) whose programs are primarily intended to prepare its students to become new text end 71.24 new text begin ministers of, to enter into some other vocation closely related to, or to conduct their lives new text end 71.25 new text begin in consonance with the particular faith of that church or religious organization, new text end 71.26 new text begin is exempt from the provisions of sections 141.21 to 141.32. new text end 71.27     new text begin Subd. 2. new text end new text begin Limitations. new text end new text begin (a) An exemption shall not extend to any school, department new text end 71.28 new text begin or branch of a school, or program of a school which through advertisements or solicitations new text end 71.29 new text begin represents to any students or prospective students that the school, its aims, goals, missions, new text end 71.30 new text begin purposes, or programs are different from those described in subdivision 1. new text end 71.31     new text begin (b) An exemption shall not extend to any school which represents to any student or new text end 71.32 new text begin prospective student that the major purpose of its programs is to: new text end 71.33     new text begin (1) prepare the student for a vocation not closely related to that particular religious new text end 71.34 new text begin faith; or new text end 72.1     new text begin (2) provide the student with a general educational program recognized by other new text end 72.2 new text begin schools or the broader educational, business, or social community as being substantially new text end 72.3 new text begin equivalent to the educational programs offered by schools or departments or branches of new text end 72.4 new text begin schools which are not religious in nature and are not exempt from chapter 141 and from new text end 72.5 new text begin rules adopted pursuant under this chapter. new text end 72.6     new text begin Subd. 3. new text end new text begin Scope. new text end new text begin Nothing in this chapter or the rules adopted under it shall be new text end 72.7 new text begin interpreted as permitting the office to determine the truth or falsity of any particular set new text end 72.8 new text begin of religious beliefs. new text end 72.9     new text begin Subd. 4. new text end new text begin Descriptive language required. new text end new text begin Any certificate, diploma, degree, or other new text end 72.10 new text begin formal recognition awarded upon completion of any religiously exempt program shall new text end 72.11 new text begin include such descriptive language as to make the religious nature of the award clear. new text end 72.12    Sec. 32. new text begin EFFECTIVE DATE; TRANSITION PROCESS. new text end 72.13     new text begin This article is effective July 1, 2007. Schools licensed pursuant to Minnesota new text end 72.14 new text begin Statutes, chapter 141, that qualify for private institution registration after July 1, 2007, new text end 72.15 new text begin shall apply for and complete the process for registration prior to the expiration of their new text end 72.16 new text begin current private career school license under Minnesota Statutes, chapter 141. Schools new text end 72.17 new text begin registered as private institutions pursuant to Minnesota Statutes, sections 136A.61 to new text end 72.18 new text begin 136A.71, that are required to obtain a private career school license after July 1, 2007, shall new text end 72.19 new text begin apply for and complete the process for licensure prior to the expiration of the current new text end 72.20 new text begin registration, but in any event no later than December 31, 2007. If the office finds it new text end 72.21 new text begin is necessary to allow for the proper processing of license or registration applications new text end 72.22 new text begin required by this section, the office is authorized to extend existing license or registration new text end 72.23 new text begin for a reasonable period of time. new text end