1.1A bill for an act1.2relating 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 12.2HIGHER EDUCATION APPROPRIATIONS

2.3Section 1.  SUMMARY OF APPROPRIATIONS.

2.4    Subdivision 1.Summary By Fund.The amounts shown in this subdivision 2.5summarize direct appropriations, by fund, made in this article.

2.6SUMMARY BY FUND2.720082009Total2.8General$ 1,572,748,000$ 1,590,760,000$ 3,163,508,0002.9Health Care Access$2,157,000$2,157,000$4,314,0002.10Total$ 1,574,905,000$ 1,592,917,000$3,167,822,000

2.11    Subd. 2.Summary By Agency - All Funds.The amounts shown in this subdivision 2.12summarize direct appropriations, by agency, made in this article.

2.13SUMMARY BY AGENCY - ALL FUNDS2.1420082009Total2.152.16Minnesota Office of Higher Education$ 189,079,000$ 189,140,000$ 378,219,0002.172.182.19Board of Trustees of the Minnesota State Colleges and Universities$ 665,952,000$ 690,228,000$ 1,356,180,0002.202.21Board of Regents of the University of Minnesota$ 712,672,000$ 706,299,000$ 1,418,971,0002.22Mayo Medical Foundation$1,202,000$1,250,000$2,452,0002.232.24Department of Veterans Affairs$ 6,000,000$ 6,000,000$ 12,000,0002.25Total$ 1,574,905,000$ 1,592,917,000$3,167,822,000

2.26Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.27    The sums shown in the columns marked "Appropriations" are appropriated to the 2.28agencies and for the purposes specified in this article. The appropriations are from the 2.29general fund, or another named fund, and are available for the fiscal years indicated 2.30for each purpose. The figures "2008" and "2009" used in this article mean that the 2.31appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.32June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.33year 2009. "The biennium" is fiscal years 2008 and 2009.

2.34APPROPRIATIONS2.35Available for the Year2.36Ending June 302.3720082009

3.13.2Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

3.3Subdivision 1.Total Appropriation$ 189,079,000$ 189,140,000

3.4The amounts that may be spent for each 3.5purpose are specified in the following 3.6subdivisions.

3.7Subd. 2.State Grants150,762,000150,510,000

3.8If the appropriation in this subdivision for 3.9either year is insufficient, the appropriation 3.10for the other year is available for it.3.11For the biennium, the tuition maximum for 3.12students in four-year programs is $9,838 in 3.13each year for students in four-year programs, 3.14and for students in two-year programs, is 3.15$6,114 in the first year and $5,808 in the 3.16second year.3.17This appropriation sets the living and 3.18miscellaneous expense allowance at $5,900 3.19each year.

3.20Subd. 3.Safety Officers Survivors100,000100,000

3.21This appropriation is to provide educational 3.22benefits under Minnesota Statutes, section 3.23299A.45, to dependent children under age 23 3.24and to the spouses of public safety officers 3.25killed in the line of duty.3.26If the appropriation in this subdivision for 3.27either year is insufficient, the appropriation 3.28for the other year is available for it.

3.29Subd. 4.Interstate Tuition Reciprocity2,000,0002,000,000

3.30If the appropriation in this subdivision for 3.31either year is insufficient, the appropriation 3.32for the other year is available to meet 3.33reciprocity contract obligations.

4.1Subd. 5.State Work Study12,444,00012,444,000

4.2Subd. 6.Child Care Grants6,184,0006,184,000

4.3Subd. 7.Minitex5,631,0005,631,000

4.4Subd. 8.MnLINK Gateway400,000400,000

4.5Subd. 9.Learning Network of Minnesota 4,800,0004,800,000

4.6Subd. 10.Minnesota College Savings Plan1,020,0001,020,000

4.7Subd. 11.Midwest Higher Education Compact90,00090,000

4.84.9Subd. 12.Intervention for College Attendance Program Grants 624,000 624,000

4.10No more than $50,000 of this appropriation 4.11each year may be used for administrative 4.12expenses for the program under Minnesota 4.13Statutes, section 136A.861. 

4.14Subd. 13.Achieve Scholarship Program400,000935,000

4.15(a) Of this amount, $200,000 in fiscal 4.16year 2008 and $200,000 in fiscal year 4.172009 are for transfer to the University of 4.18Minnesota and $200,000 in fiscal year 2008 4.19and $200,000 in fiscal year 2009 are for 4.20transfer to the Minnesota State Colleges 4.21and Universities to provide courses under 4.22Minnesota Statutes, section 124D.09, 4.23subdivision 10, to high school students living 4.24in remote and underserved areas where 4.25the school district lacks the resources to 4.26provide academically rigorous educational 4.27opportunities, such as Advanced Placement 4.28and International Baccalaureate programs. 4.29Courses may be delivered by a high school 4.30or postsecondary faculty member, online, or 4.31through distance education. Students who 4.32successfully complete a course must receive 5.1college credit at no cost to the student. The 5.2office must report to the committees of the 5.3legislature with responsibility for higher 5.4education finance by January 15, 2009, on the 5.5program outcomes with recommendations on 5.6continuing and expanding the program.5.7(b) Of this amount, $535,000 in fiscal year 5.82009 is for Achieve scholarships under 5.9Minnesota Statutes, section 136A.127. The 5.10funding base for this program is $1,071,000 5.11in fiscal year 2010 and $1,605,000 in fiscal 5.12year 2011. Up to $12,400 of this amount may 5.13be used for administration of the program 5.14in the 2008-2009 biennium. Up to $63,200 5.15in the 2010-2011 biennium may be used for 5.16administration of the program. 

5.17Subd. 14.Other Programs 1,500,000 1,200,000

5.18This appropriation includes funding for 5.19student and parent information and the get 5.20ready outreach program.5.21$240,000 each year is for grants to increase 5.22campus-community collaboration and service 5.23learning statewide, including operations of 5.24the Minnesota campus compact, grants to 5.25member institutions and grants for member 5.26institution initiatives. For every $1 in state 5.27funding, grant recipients must contribute $2 5.28in campus or community-based support.5.29$250,000 in the first year is for a grant to 5.30Augsburg College for the purpose of its 5.31Step UP program to provide educational 5.32opportunities to chemically dependent 5.33students and to work with other public 5.34and private colleges in Minnesota to help 6.1replicate this program. This is a onetime 6.2appropriation.6.3$100,000 each year must be transferred to 6.4the Loan Repayment Assistance Program, 6.5Inc., for loan repayment assistance awards 6.6to attorneys who enter public interest law to 6.7ensure that low-income and disadvantaged 6.8populations have access to competent legal 6.9counsel.6.10$50,000 in fiscal year 2008 is for the 6.11Washington Center for Internships and 6.12Academic Seminars for a pilot program 6.13for scholarships for students enrolling in a 6.14Minnesota four-year college or university 6.15beginning in the fall semester of 2007. 6.16The appropriation shall be available only 6.17on a dollar-for-dollar match basis for 6.18funds received from nonstate sources. 6.19The Washington Center for Internships 6.20and Academic Seminars must work with 6.21Minnesota Colleges and Universities to 6.22ensure that the scholarships will go to 6.23economically disadvantaged Minnesota 6.24students, students with demonstrated need of 6.25financial assistance, and students traditionally 6.26underrepresented in higher education, and 6.27will work to ensure racial, ethnic, and gender 6.28diversity, as well as urban/rural balance. This 6.29is a onetime appropriation.6.30$250,000 each year is for the teacher 6.31education and compensation helps (TEACH) 6.32and the Minnesota early childhood teacher 6.33programs in Minnesota Statutes, section 6.34136A.126.

6.356.36Subd. 15.United Family Medicine Residency Program414,000431,000

7.1For a grant to the United Family Medicine 7.2residency program. This appropriation 7.3shall be used to support up to 18 resident 7.4physicians each year in family practice at 7.5United Family Medicine residency programs 7.6and shall prepare doctors to practice family 7.7care medicine in underserved rural and 7.8urban areas of the state. It is intended that 7.9this program will improve health care in 7.10underserved communities, provide affordable 7.11access to appropriate medical care, and 7.12manage the treatment of patients in a more 7.13cost-effective manner. The funding base for 7.14this program is $448,000 in fiscal year 2010 7.15and $467,000 in fiscal year 2011.

7.16Subd. 16.Agency Administration2,710,0002,771,000

7.17Subd. 17.Balances Forward

7.18A balance in the first year under this section 7.19does not cancel, but is available for the 7.20second year.

7.21Subd. 18.Transfers

7.22The Minnesota Office of Higher Education 7.23may transfer unencumbered balances from 7.24the appropriations in this section to the state 7.25grant appropriation, the interstate tuition 7.26reciprocity appropriation, the child care 7.27grant appropriation, the state work study 7.28appropriation, the public safety officers' 7.29survivors appropriation, and the Minnesota 7.30college savings plan appropriation. Transfers 7.31from the child care or state work study 7.32appropriations may only be made to the 7.33extent there is a projected surplus in the 7.34appropriation. A transfer may be made 7.35only with the prior written approval of the 8.1commissioner of finance and prior written 8.2notice to the chairs of the senate and house 8.3committees with jurisdiction over higher 8.4education finance.

8.5Subd. 19.TANF Work Study

8.6Notwithstanding any rule to the contrary, 8.7work study jobs funded by a TANF 8.8appropriation do not require employer 8.9matching funds.

8.108.118.12Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

8.13Subdivision 1. Total Appropriation$ 665,952,000$ 690,228,000

8.14The amounts that may be spent for each 8.15purpose are specified in the following 8.16subdivisions.

8.17Subd. 2.General Appropriation 665,952,000 690,228,000

8.18This appropriation includes a permanent 8.19increase in each year for Cook County 8.20Higher Education to provide educational 8.21programs and academic support services to 8.22remote regions in northeastern Minnesota. 8.23Cook County Higher Education must 8.24continue to provide information to the Board 8.25of Trustees of the Minnesota State Colleges 8.26and Universities on the number of students 8.27served, credit hours delivered, and services 8.28provided to students.8.29This appropriation includes funding 8.30for operation and maintenance of the 8.31system, including technology infrastructure 8.32improvements to deliver more online 8.33programs and services to students; and 8.34funding for initiatives to recruit and retain 9.1students traditionally underrepresented in 9.2higher education to help prepare students 9.3for college, encourage their enrollment, and 9.4provide services that enable them to continue 9.5successfully to graduation.9.6If the Board of Trustees decides to implement 9.7other "Strategic Advancements" initiatives, 9.8funding must be from internal reallocation of 9.9existing resources or enhanced productivity. 9.10It is the expectation of the legislature that the 9.11board will hold tuition increases to no more 9.12than four percent per year for fiscal years 9.132008 and 2009.9.14One percent of the appropriation in this 9.15subdivision is available after the board 9.16demonstrates to the commissioner of finance 9.17that the Minnesota State Colleges and 9.18Universities system has achieved at least 9.19three of the following five goals:9.20(1) increase by at least three percent, 9.21compared to fiscal year 2005, the number of 9.22students who take college level courses in 9.23science, technology, engineering, and math;9.24(2) increase by at least two percent, compared 9.25to fiscal year 2005, enrollment in courses 9.26at the four existing center of excellence 9.27programs;9.28(3) increase by at least 700, compared to 9.29fiscal year 2007, the number of students 9.30trained on the use of electronic medical 9.31record technology;9.32(4) increase by at least ten percent, compared 9.33to fiscal year 2007, the number of students 9.34taking online courses or the number of online 9.35courses offered; and10.1(5) expand by at least ten percent, compared 10.2to calendar year 2006, the use of "awards of 10.3excellence" or other initiatives that reward 10.4member institutions, faculty, administrators, 10.5or staff for innovations designed to advance 10.6excellence and efficiency. 10.7By October 1, 2007, the Board of Trustees 10.8and the Office of Higher Education must 10.9agree on specific numerical indicators and 10.10definitions for each of the five goals that will 10.11be used to demonstrate the Minnesota State 10.12Colleges and Universities' attainment of each 10.13goal.10.14On or before April 1, 2008, the Board 10.15of Trustees must report to the legislative 10.16committees with primary jurisdiction over 10.17higher education finance and policy the 10.18progress of the Minnesota State Colleges and 10.19Universities toward attaining the goals.10.20This appropriation includes funding to 10.21eliminate nonresident undergraduate tuition 10.22at Century College, Saint Paul College, 10.23Minneapolis Community and Technical 10.24College, Rochester Community and 10.25Technical College, Inver Hills Community 10.26College, St. Cloud Technical College, 10.27and Normandale Community College. In 10.28addition, the Board of Trustees must not 10.29implement a nonresident undergraduate 10.30tuition rate at a community college, technical 10.31college, or consolidated community and 10.32technical college that does not have such a 10.33rate as of May 1, 2007, except for a student 10.34who is a resident of a state that has entered 10.35into a reciprocity agreement under Minnesota 11.1Statutes, section 136A.08. This paragraph 11.2expires June 30, 2009.11.3This appropriation includes funding 11.4to identify and improve on practices 11.5for selecting and purchasing textbooks 11.6and course materials that are used by 11.7students. The board, in collaboration with 11.8the Minnesota State University Student 11.9Association (MSUSA) and the Minnesota 11.10State College Student Association (MSCSA) 11.11must develop and implement pilot projects 11.12with this appropriation to address the 11.13financial burden that textbook prices and 11.14requirements place on students. These 11.15projects may include textbook rental 11.16programs, cooperative purchasing efforts, 11.17training, and education and awareness 11.18programs for students and faculty on cost 11.19considerations and textbook options. The 11.20student associations must be fully involved in 11.21the development and implementation of any 11.22project using this appropriation. The board 11.23must report, with input from MSUSA and 11.24MSCSA, to the committees of the legislature 11.25responsible for higher education finance by 11.26February 15, 2009, on the success of the pilot 11.27projects. This money is available until June 11.2830, 2009.11.29This appropriation includes funding for 11.30community-based energy development 11.31pilot projects at Mesabi Range Technical 11.32and Community College, the Minnesota 11.33West Community and Technical College, 11.34Riverland Community College, and Inver 11.35Hills Community College. Inver Hills 11.36Community College must partner with 12.1the city of Inver Grove Heights on a 12.2community-based pilot project and each 12.3of the other campuses must establish 12.4partnerships for community-based energy 12.5development pilot projects that involve 12.6students and faculty. An allocation for the 12.7pilot project is available to the participating 12.8institutions and the partnerships for the 12.9biennium ending June 30, 2009. 12.10This appropriation includes funding for a 12.11modular clean-room research and training 12.12facility at St. Paul College. This is a onetime 12.13appropriation and is available until expended.12.14This appropriation includes funding for a 12.15pilot project with the Northeast Minnesota 12.16Higher Education District and high schools 12.17in its area. Up to one-half of the first year's 12.18appropriation may be used to purchase 12.19equipment that is necessary to reestablish 12.20a technical education curriculum in the 12.21area high schools to provide the students 12.22with the technical skills necessary for the 12.23workforce. Students from area high schools 12.24may also access the facilities and faculty of 12.25the Northeast Minnesota Higher Education 12.26District for state-of-the-art technical 12.27education opportunities, including MnSCU's 12.282+2 Pathways initiative.12.29This appropriation includes funding for St. 12.30Paul College to collaborate with the United 12.31Auto Workers Local 879 to purchase a Ford 12.32Ranger pickup truck to retrofit to run on a 12.33battery-powered motor. This vehicle must 12.34be retrofitted to serve as a prototype that 12.35could be mass-produced at the St. Paul 13.1Ford assembly plant. This is a onetime 13.2appropriation.13.3This appropriation includes funding for a 13.4grant to a Minnesota public postsecondary 13.5institution with a total student enrollment 13.6under 7,000 students, that has an existing 13.7women's hockey team competing in 13.8Division I in the Western Collegiate Hockey 13.9Association. The institution may use the 13.10grant for equipment, facility improvements, 13.11travel and compensation for coaches, 13.12trainers, and other necessary personnel. This 13.13is a onetime appropriation.13.14This appropriation includes funding for a 13.15study of student demand and employer needs 13.16for higher education in the Mesabi Range 13.17region of northeastern Minnesota including 13.18the cities of Grand Rapids through Eveleth 13.19to Ely. The board must contract for the 13.20study which must be done in cooperation 13.21with the Board of Regents of the University 13.22of Minnesota, the University of Minnesota, 13.23Duluth, and the Range Association of 13.24Municipalities and Schools, which must act 13.25as the lead agency in coordinating the study. 13.26The study must specify how the identified 13.27regional educational needs can be met by the 13.28University of Minnesota, by the Minnesota 13.29State Colleges and Universities, or through 13.30degree programs offered jointly. The final 13.31report must be submitted to the committees 13.32of the legislature responsible for higher 13.33education finance by January 15, 2008, with 13.34recommendations and plans for the region.14.1This appropriation includes funding for a 14.2project to establish a center at the Mesabi 14.3Range Community and Technical College in 14.4cooperation with the Iron Range Resources 14.5and Rehabilitation Board (IRRRB) to 14.6enhance the use of eFolio Minnesota by 14.7providing on-site and Internet-based support 14.8and technical assistance to eFolio users to 14.9promote workforce development and access 14.10to workforce information generated through 14.11the eFolio Minnesota system. The board 14.12must enhance the eFolio Minnesota system 14.13as necessary to serve these purposes and 14.14report annually to the legislative committees 14.15responsible for higher education finance on 14.16the outcomes of the center's activities.14.17Any amounts in the base budget allocated 14.18to pay competitive compensation under 14.19Laws 2005, chapter 107, article 1, section 3, 14.20subdivision 2, may also be used to recruit or 14.21retain quality faculty.

14.22 Subd. 3.Board Policies

14.23(a) The board must adopt a policy that allows 14.24students to add the cost of textbooks and 14.25required course materials purchased at a 14.26campus bookstore, owned by or operated 14.27under a contract with the campus, to the 14.28existing waivers or payment plans for tuition 14.29and fees.14.30(b) By January 1, 2009, the board must adopt 14.31a policy setting the maximum number of 14.32semester credits required for a baccalaureate 14.33degree at 120 semester credits or the 14.34equivalent and the number of semester 14.35credits required for an associate degree at 15.160 semester credits or the equivalent. The 15.2board policy may provide for a process 15.3for granting waivers for specific degree 15.4programs in which industry or professional 15.5accreditation standards require a greater 15.6number of semester credits.

15.715.8Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

15.9Subdivision 1.Total Appropriation$ 712,672,000$ 706,299,000

15.10Appropriations by Fund15.112008200915.12General 710,515,000 704,142,00015.13Health Care Access2,157,0002,157,000

15.14The amounts that may be spent for each 15.15purpose are specified in the following 15.16subdivisions.

15.17Subd. 2.Operations and Maintenance 619,127,000 638,754,000

15.18This appropriation includes funding for 15.19operation and maintenance of the system 15.20including amounts to advance the University 15.21of Minnesota's efforts to sustain quality 15.22and competitiveness; and funding for the 15.23"Advancing Education" initiatives including 15.24an Ojibwe Indian language program on the 15.25Duluth campus.15.26This appropriation includes funding to 15.27establish banded tuition at the Morris, 15.28Crookston, and Duluth campuses to reduce 15.29tuition costs for students.15.30This appropriation includes funding for 15.31scholarships for undergraduate Minnesota 15.32resident students with family income under 15.33$150,000 per year. This appropriation must 15.34be matched with $1.50 of nonstate money for 15.35each $1 of state money.16.1This appropriation includes funding for the 16.2Center for Transportation Studies to complete 16.3a study to assess public policy options for 16.4reducing the volume of greenhouse gases 16.5emitted from the transportation sector in 16.6Minnesota. The Center for Transportation 16.7Studies must report its preliminary findings 16.8to the legislature by February 1, 2008, and 16.9must issue its full report by June 1, 2008. 16.10This is a onetime appropriation.16.11This appropriation includes funding to 16.12establish an India Center to improve and 16.13promote relations with India and Southeast 16.14Asia. The center must partner with public 16.15and private organizations in Minnesota to: 16.16(1) foster an understanding of the history, 16.17culture, and values of India;16.18(2) serve as a resource and catalyst to 16.19promote economic, governmental, and 16.20academic pursuits involving India; and16.21(3) facilitate educational and business 16.22exchanges and partnerships, collaborative 16.23research, and teaching and training activities 16.24for Minnesota students and teachers.16.25The Board of Regents may establish an 16.26advisory council to facilitate the mission 16.27and objectives of the India Center and must 16.28report on the progress of the India Center 16.29by February 15, 2008, to the governor 16.30and chairs of the legislative committees 16.31responsible for higher education finance. 16.32This appropriation must be matched by an 16.33equal amount of nonstate money. This is a 16.34onetime appropriation.17.1This appropriation includes funding to assist 17.2in the formation of the neighborhood alliance 17.3and for projects identified in section 10. The 17.4alliance, the Board of Regents, and the city of 17.5Minneapolis may cooperate on the projects 17.6and may use public services of other entities 17.7to complete all or a portion of a project. This 17.8is a onetime appropriation.17.9This appropriation includes funding to 17.10establish a Dakota language teacher training 17.11immersion program on the Twin Cities 17.12campus to prepare teachers to teach in 17.13Dakota language immersion programs.17.14One percent of the appropriation in this 17.15subdivision is available when the Board 17.16of Regents of the University of Minnesota 17.17demonstrates to the commissioner of finance 17.18that the board has met at least three of the 17.19five following performance goals:17.20(1) increase financial support to pay the cost 17.21of attendance for students demonstrating 17.22financial need;17.23(2) maintain or improve the University of 17.24Minnesota's rank in its national share of 17.25total research and development expenditures 17.26reported to the National Science Foundation 17.27over the 2007 ranking;17.28(3) increase by at least five percent, compared 17.29to fiscal year 2007, the number of degrees 17.30awarded in science, technology, engineering, 17.31mathematics, and health sciences disciplines;17.32(4) increase by at least five percent, compared 17.33to fiscal year 2007, the amount of financial 17.34support from key funding sources for 17.35renewable energy research; and18.1(5) increase and improve interaction and 18.2research activity beneficial to business and 18.3industry.18.4By October 1, 2007, the Board of Regents 18.5and the Office of Higher Education must 18.6agree on specific numerical indicators and 18.7definitions for each of the five goals that will 18.8be used to demonstrate the University of 18.9Minnesota's attainment of each goal.18.10On or before April 1, 2008, the Board 18.11of Regents must report to the legislative 18.12committees with primary jurisdiction over 18.13higher education finance and policy the 18.14progress of the University of Minnesota 18.15toward attaining the goals.

18.16Subd. 3.Primary Care Education Initiatives2,157,0002,157,000

18.17This appropriation is from the health care 18.18access fund.

18.19Subd. 4.Special Appropriations

18.20(a) Agriculture and Extension Service53,175,00052,175,000

18.21(1) For the Agricultural Experiment 18.22Station, Minnesota Extension Service. This 18.23appropriation includes additional funding 18.24to promote alternative livestock research 18.25and outreach, and for an ongoing organic 18.26research and education program.18.27(2) This appropriation includes funding 18.28for research efforts that demonstrate a 18.29renewed emphasis on the needs of the state's 18.30production agriculture community and a 18.31continued focus on renewable energy derived 18.32from Minnesota biomass resources including 18.33agronomic crops, plant and animal wastes, 18.34and native plants or trees, with priority for 19.1extending the Minnesota vegetable growing 19.2season; fertilizer and soil fertility research 19.3and development; treating and curing human 19.4diseases utilizing plant and livestock cells; 19.5using biofuel production coproducts as 19.6feed for livestock; and a rapid agricultural 19.7response fund for current or emerging 19.8animal, plant, and insect problems affecting 19.9production or food safety. In addition, the 19.10appropriation may be used to secure a facility 19.11and retain current faculty levels for poultry 19.12research currently conducted at UMore Park.19.13(3) In the area of renewable energy, priority 19.14should be given to projects pertaining to: 19.15biofuel and other energy production from 19.16small grains; alternative bioenergy crops and 19.17cropping systems; and growing, harvesting, 19.18and transporting biomass plant material.19.19(4) This appropriation includes funding for 19.20the college of food, agricultural, and natural 19.21resources sciences to establish and maintain 19.22a statewide organic research and education 19.23initiative to provide leadership for organic 19.24agronomic, horticultural, livestock, and food 19.25systems research, education, and outreach 19.26and for the purchase of state-of-the-art 19.27laboratory, planting, tilling, harvesting, and 19.28processing equipment necessary for this 19.29project.19.30(5) By February 1, 2009, the Board 19.31of Regents must report to the legislative 19.32committees with responsibility for agriculture 19.33and higher education finance on the research 19.34and initiatives under this paragraph.20.1(6) The base appropriation is $52,175,000 20.2each year of the biennium ending June 30, 20.32011.20.4(7) The Board of Regents of the University 20.5of Minnesota is requested to refrain from 20.6implementing corresponding reductions in 20.7funding for the purposes for which additional 20.8funding is provided.

20.9(b) Health Sciences5,275,0005,275,000

20.10$346,000 each year is to support up to 12 20.11resident physicians each year in the St. 20.12Cloud Hospital family practice residency 20.13program. The program must prepare doctors 20.14to practice primary care medicine in the rural 20.15areas of the state. The legislature intends 20.16this program to improve health care in rural 20.17communities, provide affordable access to 20.18appropriate medical care, and manage the 20.19treatment of patients in a more cost-effective 20.20manner.20.21The remainder of this appropriation is for 20.22the rural physicians associates program, the 20.23Veterinary Diagnostic Laboratory, health 20.24sciences research, dental care, and the 20.25Biomedical Engineering Center.

20.26(c) Institute of Technology1,387,0001,387,000

20.27For the Geological Survey and the talented 20.28youth mathematics program.

20.29(d) System Specials6,551,0006,551,000

20.30For general research, student loans matching 20.31money, industrial relations education, Natural 20.32Resources Research Institute, Center for 20.33Urban and Regional Affairs, Bell Museum of 20.34Natural History, and the Humphrey exhibit.21.1This appropriation includes additional 21.2funding each year for industrial relations 21.3education. The Board of Regents of the 21.4University of Minnesota is requested to 21.5refrain from implementing corresponding 21.6reductions in funding for this purpose.

21.721.8Subd. 5.University of Minnesota and Mayo Foundation Partnership25,000,000-0-

21.9For the direct and indirect expenses of the 21.10collaborative research partnership between 21.11the University of Minnesota and the Mayo 21.12Foundation for research in biotechnology 21.13and medical genomics. For fiscal years 2010 21.14and 2011, the base shall be $8,000,000 in 21.15each year. This appropriation is available 21.16until expended. An annual report on the 21.17expenditure of these funds must be submitted 21.18to the governor and the chairs of the senate 21.19and house committees responsible for higher 21.20education and economic development by 21.21June 30 of each fiscal year.

21.22Subd. 6.Academic Health Center

21.23The appropriation for Academic Health 21.24Center funding under Minnesota Statutes, 21.25section 297F.10, is $22,250,000 each year.

21.26Sec. 6. MAYO CLINIC

21.27Subdivision 1.Total Appropriation$1,202,000$1,250,000

21.28The amounts that may be spent for each 21.29purpose are specified in the following 21.30subdivisions.

21.31Subd. 2.Medical School591,000615,000

21.32The state of Minnesota must pay a capitation 21.33each year for each student who is a resident 21.34of Minnesota. The appropriation may be 22.1transferred between years of the biennium to 22.2accommodate enrollment fluctuations. The 22.3funding base for this program is $640,000 in 22.4fiscal year 2010 and $665,000 in fiscal year 22.52011.22.6It is intended that during the biennium the 22.7Mayo Clinic use the capitation money to 22.8increase the number of doctors practicing in 22.9rural areas in need of doctors.

22.1022.11Subd. 3.Family Practice and Graduate Residency Program611,000635,000

22.12The state of Minnesota must pay stipend 22.13support for up to 27 residents each year. The 22.14funding base for this program is $660,000 in 22.15fiscal year 2010 and $686,000 in fiscal year 22.162011.

22.1722.18Sec. 7. DEPARTMENT OF VETERANS AFFAIRS.$ 6,000,000$ 6,000,000

22.19For grants to eligible veterans or the eligible 22.20spouses and children of veterans as provided 22.21under Minnesota Statutes, section 197.791. 22.22If the appropriation in this subdivision for 22.23either year is insufficient, the appropriation 22.24for the other year is available for it.22.25Of this appropriation, no more than three 22.26percent each year may be used for the 22.27administrative costs of operating this 22.28program.

22.2922.30Sec. 8. CENTER FOR RURAL POLICY AND DEVELOPMENT.

22.31The appropriation in Laws 2007, chapter 22.3257, article 2, section 3, subdivision 6, to the 22.33Center for Rural Policy and Development at 22.34Minnesota State University at Mankato for 23.1a rural wind energy assistance program is 23.2available until June 30, 2009.23.3    Sec. 9. FINANCIAL AID PROGRAM STUDIES.23.4    Subdivision 1.State grant.The Minnesota Office of Higher Education must 23.5conduct an analysis and evaluation of the state grant program to provide information 23.6to the legislature concerning the role of the program in promoting affordable access to 23.7higher education in Minnesota, including promoting access for students traditionally 23.8underrepresented in higher education. The analysis and evaluation must include:23.9    (1) evaluation of the assigned student share compared to the current and future 23.10income of a student, and analysis of the number of hours a student must work to meet the 23.11assigned student share without borrowing;23.12    (2) evaluation of the assigned family contribution, how it is determined under the 23.13federal needs analysis, and how it compares to expectations of families in other public 23.14programs;23.15    (3) analysis of the ways that students and families pay the assigned student share and 23.16the assigned family contribution;23.17    (4) analysis of the recognized cost of attendance compared to actual attendance 23.18costs and the ability of individuals and families at various income levels in Minnesota to 23.19pay the cost of attendance;23.20    (5) analysis of the actual living and miscellaneous expenses of students, with 23.21particular attention to differences between traditional and nontraditional students, and 23.22comparison to the amount currently used in the state grant formula; and23.23    (6) analysis of other parameters of the program considered relevant by the office, 23.24including prorating the state grant amount instead of the budget for the cost of attendance 23.25and changing the definition of full-time enrollment.23.26Whenever possible, the analysis must include:23.27    (i) cost estimates and information on how recommended changes affect students at 23.28various income levels and at different higher education institutions in Minnesota; and23.29    (ii) the distributional effects, by income quintile, of state grant program parameters 23.30on students and families.23.31The office also shall assess the feasibility of expanding the eligibility for state grants to 23.32include graduate and first professional students pursuing degree programs deemed to be 23.33important to the workforce needs of the state. By February 15, 2008, the Minnesota 23.34Office of Higher Education must report its preliminary findings and recommendations to 23.35the committees in the house of representatives and senate with primary jurisdiction over 24.1higher education policy and finance and workforce development on options to enhance 24.2the targeting of financial aid to state grant recipients, with the final report submitted by 24.3October 1, 2008.24.4    Subd. 2.Workforce needs.The Minnesota Office of Higher Education must 24.5examine existing financial aid programs that provide loans and grants to students, and the 24.6needs of the workforce for occupations that are currently in demand or are projected to 24.7be in demand in the future and:24.8    (1) evaluate how effective the financial aid programs are in linking the needs of the 24.9workforce with the student's financial aid needs;24.10    (2) identify financial aid program options, including loan forgiveness and loan 24.11repayment programs, that provide incentives to students to pursue degrees in occupations:24.12    (i) with identified unmet workforce needs like speech pathologists; and24.13    (ii) of social or economic importance to the state; and24.14    (3) identify mechanisms, such as additional resources, to promote the growth of 24.15occupations of social or economic importance to the state. By February 15, 2008, the office 24.16must report its preliminary findings to the legislative committees with primary jurisdiction 24.17over higher education policy and finance and workforce development, and provide options 24.18and recommendations on ways to enhance the delivery of financial aid to meet the needs of 24.19both students and the state's workforce, with the final report submitted by October 1, 2008.24.20    Sec. 10. POSTSECONDARY EDUCATION PARTICIPATION STUDY.24.21    The Minnesota Office of Higher Education shall, by January 15, 2008, report to the 24.22house and senate committees with jurisdiction over higher education policy and finance 24.23on participation in postsecondary education by income, and persistence and graduation 24.24rates of state grant recipients compared to students who did not receive state grants. The 24.25Minnesota Office of Higher Education is authorized to match individual student data from 24.26the student record enrollment database with individual student data from the state grant 24.27database on data elements necessary to perform the study.24.28    Sec. 11. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 24.29NEIGHBORHOOD ALLIANCE.24.30    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 24.31have the meanings given them.24.32    (b) "Alliance" means a representative body of the constituencies, including, but 24.33not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 24.34neighborhood organizations and business associations referenced in the report.25.1    (c) "Board" means the Board of Regents of the University of Minnesota.25.2    (d) "Report" means the report and appendix entitled Moving Forward Together: 25.3University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 25.4the legislature in February 2007.25.5    (e) "University partnership district" or "district" means the area located within the 25.6city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 25.7Como, Prospect Park, and University, as they are defined by the city, and the university's 25.8Minneapolis campus.25.9    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 25.10house significant numbers of university students and staff. Transportation and housing 25.11policy analysis and planning must include these areas but they must not be included in 25.12the projects funded through the alliance.25.13    (g) "University" means the University of Minnesota.25.14    Subd. 2.Alliance; functions.The alliance may facilitate, initiate, or manage 25.15projects with the board, city, or other public or private entities that are intended to 25.16maintain the university partnership district as a viable place to study, research, and live. 25.17Projects may include, but are not limited to, those outlined in the report, as well as 25.18efforts to involve students in activities to maintain and improve the university partnership 25.19district; cooperative university and university partnership district long-term planning; and 25.20incentives to increase homeownership within the district with particular emphasis on 25.21employees of the university and of other major employers located within the district.25.22    Subd. 3.Report.The board must report to the legislature by January 15, 2009, on 25.23the expenditure of funds appropriated under section 3.25.24ARTICLE 225.25RELATED HIGHER EDUCATION25.26    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 section136A.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 17 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) a representative of the Minnesota Private Colleges Council;26.21    (9) two members representing agriculture education and agriculture business 26.22appointed by the governor;26.23    (9) (10) the chair of the senate Committee on Agriculture, General Legislation 26.24and Veterans Affairs;26.25    (10) (11) the chair of the house Committee on Agriculture;26.26    (11) (12) 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; and26.30    (12) (13) 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), or (13), 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 public postsecondary education. 27.6The legislature intends to provide at least 67 percent of the instructional services costs 27.7for each postsecondary system combined revenue from tuition, the university fee at the 27.8University of Minnesota, and state general fund appropriations to public postsecondary 27.9institutions. 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. [135A.011] STATE HIGHER EDUCATION OBJECTIVES.27.12    Subdivision 1.Statewide objectives.Minnesota's higher education investment 27.13is made in pursuit of the following objectives: (1) to ensure quality by providing a 27.14level of excellence that is competitive on a national and international level, through 27.15high quality teaching, scholarship, and learning in a broad range of arts and sciences, 27.16technical education, and professional fields; (2) to foster student success by enabling 27.17and encouraging students to choose institutions and programs that are best suited for 27.18their talents and abilities, and to provide an educational climate that supports students 27.19in pursuing their goals and aspirations; (3) to promote democratic values and enhance 27.20Minnesota's quality of life by developing understanding and appreciation of a free and 27.21diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, 27.22regardless of personal circumstances, to participate in higher education; and (5) to enhance 27.23the economy by assisting the state in being competitive in the world market, and to prepare 27.24a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs.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 27.28instructionappropriations 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 and the Minnesota State Colleges and Universities are determined 27.31by considering the biennial budget documents submitted under section 135A.034, 27.32performance in advancing the objectives under section 135A.011, available resources 27.33according to the state budget forecast, the relative balance between state support for 27.34students and public postsecondary institutions, and other factors the legislature considers 28.1important in determining the level of state appropriations for public postsecondary 28.2education.28.3    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:28.4    Subd. 7. Reports.(a) Instructional and noninstructional expenditure data and 28.5enrollment data for each instructional category shall be submitted in the biennial budget 28.6document must be submitted in the biennial budget document under section 135A.034. 28.7This report must include a description of the methodology for determining instructional 28.8and noninstructional expenditures and estimates of inflation in higher education and the 28.9methodology or index used to determine the inflation rate.28.10    (b) By February 1 of each even-numbered year, the Board of Regents of the 28.11University of Minnesota and the Board of Trustees of the Minnesota State Colleges 28.12and Universities must submit a report to the chairs of the legislative committees with 28.13jurisdiction over higher education policy and finance. The report must describe the 28.14following:28.15    (1) how state appropriations made to the system in the previous odd-numbered year 28.16were allocated and the methodology used to determine the allocation;28.17    (2) data describing how the institution reallocated resources to advance the priorities 28.18set forth in the budget submitted under section 135A.034 and the statewide objectives 28.19under section 135A.011. The information must indicate whether instruction and support 28.20programs received a reduction in or additional resources. The total amount reallocated 28.21must be clearly explained;28.22    (3) the tuition rates and fees established by the governing board in each of the past 28.23ten years and comparison data for peer institutions and national averages;28.24    (4) data on the number and proportion of students graduating within four, five, 28.25and six years from universities and within three years from colleges as reported in the 28.26integrated postsecondary education data system. These data must be provided for each 28.27institution by race, ethnicity, and gender. Data and information must be submitted that 28.28describe the system's plan and progress toward attaining the goals set forth in the plan 28.29to increase the number and proportion of students that graduate within four, five, or six 28.30years from a university or within three years from a college;28.31    (5) data on, and the methodology used to measure, the number of students 28.32traditionally underrepresented in higher education enrolled at the system's institutions. 28.33Data and information must be submitted that describe the system's plan and progress 28.34toward attaining the goals set forth in the plan to increase the recruitment, retention, and 28.35timely graduation of students traditionally underrepresented in higher education; and29.1    (6) data on the revenue received from all sources to support research or workforce 29.2development activities or the system's efforts to license, sell, or otherwise market products, 29.3ideas, technology, and related inventions created in whole or in part by the system. Data 29.4and information must be submitted that describe the system's plan and progress toward 29.5attaining the goals set forth in the plan to increase the revenue received to support research 29.6or workforce development activities or revenue received from the licensing, sale, or other 29.7marketing and technology transfer activities by the system.29.8    (c) Instructional expenditure and enrollment data shall be submitted by the public 29.9postsecondary systems to the Minnesota Office of Higher Education and the Department of 29.10Finance and included in the biennial budget document. The specific data shall be submitted 29.11only after the director of the Minnesota Office of Higher Education has consulted with a 29.12data advisory task force to determine the need, content, and detail of the information.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 under section 135A.011. 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. [135A.135] PERSONAL FINANCIAL MANAGEMENT.29.23    During initial student registration, each technical college, community college, or 29.24state university shall, and the University of Minnesota is requested to, provide each 29.25student information on personal financial management. Students should understand and 29.26be able to manage personal finances including, but not limited to, the responsible use of 29.27consumer credit. This requirement may be waived for a student who enrolls in a college 29.28course providing similar instruction.29.29    Sec. 9. [135A.145] SALE OF STUDENT INFORMATION; MARKETING 29.30CREDIT CARDS TO STUDENTS.29.31    Subdivision 1.Prohibited practices.No public or private postsecondary 29.32educational institution, including its agents, employees, student or alumni organizations, 29.33or affiliates, may:30.1    (1) sell, give, or otherwise transfer to any card issuer the name, address, telephone 30.2number, or other contact information of an undergraduate student at the postsecondary 30.3educational institution without the student's consent; or 30.4    (2) enter into any agreement to market credit cards to undergraduate students at 30.5a postsecondary educational institution.30.6     For purposes of this section, the terms "credit," "credit card," and "card issuer" 30.7have the meanings given them in the Truth in Lending Act, United States Code, title 15, 30.8section 1602.30.9    Subd. 2.Violations.The attorney general may seek the penalties and remedies 30.10available under section 8.31 against any person who violates this section.30.11EFFECTIVE DATE.This section is effective July 1, 2007, except that it applies to 30.12existing agreements to market credit cards upon the later of the expiration of the original 30.13term of the agreement or the expiration of an extension of the original agreement if the 30.14extension is in effect on July 1, 2007.30.15    Sec. 10. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.30.16    Subdivision 1.Short title.This section may be cited as the Textbook Disclosure, 30.17Pricing, and Access Act.30.18    Subd. 2.Course material disclosures required.(a) Beginning January 1, 2009, 30.19any publisher that sells or distributes course material for classroom use in a postsecondary 30.20institution must make the following available in an easily accessible manner to faculty, 30.21bookstores, and postsecondary institutions in Minnesota: 30.22    (1) the title, edition, author, and International Standard Book Number (ISBN) or 30.23other easily identifiable information for all course materials; 30.24    (2) the undiscounted price at which the course materials are available to a bookstore; 30.25    (3) the formats, including bundled and unbundled, in which those course materials 30.26are offered and the undiscounted prices of the various components, both sold separately or 30.27packaged together;30.28    (4) a summary of revisions between current and previous editions of course 30.29materials; and30.30    (5) the return policy for course material, including any penalties or conditions for 30.31returns.30.32    (b) Any publisher that sells or distributes course material for classroom use in a 30.33postsecondary institution must make all bundled course material available to bookstores 30.34and postsecondary institutions in an unbundled form, or must provide notice if unbundled 30.35material is not available. 31.1    (c) Disclosure under this section is not required for mass market and trade books that 31.2are not published, marketed, or sold primarily for classroom use in or by postsecondary 31.3institutions.31.4    (d) Nothing in this section shall be construed to limit any existing academic freedom 31.5or rights of faculty members to determine the most appropriate course material for the 31.6courses they teach.31.7    Subd. 3.Educational strategies.Public postsecondary institutions must develop 31.8educational materials considering the recommendations in studies by the Minnesota Office 31.9of Higher Education and others and at least annually convene and sponsor meetings 31.10and workshops, and provide educational strategies for faculty, students, administrators, 31.11institutions, and bookstores to inform all interested parties on strategies for reducing the 31.12costs of course materials for students attending postsecondary institutions. 31.13    Subd. 4.Minnesota Office of Higher Education responsibilities.(a) For private 31.14postsecondary institutions, the Minnesota Office of Higher Education must develop 31.15educational materials considering the recommendations by the Minnesota Office of Higher 31.16Education and others and at least annually convene and sponsor meetings and workshops 31.17and provide educational strategies for faculty, students, administrators, institutions, and 31.18bookstores to inform all interested parties on strategies for reducing the costs of course 31.19materials for students attending postsecondary institutions.31.20    (b) The Minnesota Office of Higher Education must identify methods to compile and 31.21distribute information on publishers that sell or distribute course material for classroom use 31.22in postsecondary institutions in a manner that meets the requirements and complies with 31.23subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make 31.24this information available for use by students and faculty in postsecondary institutions.31.25    Subd. 5.Bookstores; course materials.The University of Minnesota and private 31.26colleges are encouraged to comply with the requirements for instructors and bookstores 31.27under section 136F.58, subdivision 2.31.28    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, or a person receiving a railroad retirement annuity who has reached 60 years 31.32of age before the beginning of the term.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. [136A.002] DEFINITIONS.32.27    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 32.28have the meanings given them.32.29    Subd. 2.Office of Higher Education or office."Office of Higher Education" or 32.30"office" means the Minnesota Office of Higher Education.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 do not 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; and33.9    (3) interstate payments and obligations for each state participating in the tuition 33.10reciprocity program in the prior year.; and33.11    (4) summary statistics on number of graduates by institution, degree granted, and 33.12year of graduation for reciprocity students who attended Minnesota postsecondary 33.13institutions.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 or the Board of Regents of the University of Minnesota, or (2) is 33.19operated publicly or privately and, as determined by the office, meets all of the following: 33.20(i) maintains academic standards substantially equivalent to those of comparable 33.21institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 33.22by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 33.23Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.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 family's contribution to a student's cost of attendance, as determined 33.28by a federal need analysis. For dependent students, the assigned family responsibility is 33.2995 percent of the parental contribution. For independent students with dependents other 33.30than a spouse, the assigned family responsibility is 85 percent of the student contribution. 33.31For independent students without dependents other than a spouse, the assigned family 33.32responsibility is 72 67 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 4645.5 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, 20072009.34.24    Sec. 21. Minnesota Statutes 2006, section 136A.121, is amended by adding a 34.25subdivision to read:34.26    Subd. 19.Reporting.By November 1 and February 15, the Office of Higher 34.27Education must provide, to the committees of the legislature with jurisdiction over higher 34.28education finance and policy, updated state grant spending projections taking into account 34.29the most current and projected enrollment and tuition and fee information, economic 34.30conditions, and other relevant factors. Before submitting state grant spending projections, 34.31the Office of Higher Education must meet and consult with representatives of public and 34.32private postsecondary institutions, the Department of Finance, the Governor's Office, 34.33legislative staff, and financial aid administrators.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; and35.15    (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 and will be considered to be 35.18in continuing enrollment status upon return.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; and35.24    (3) the number of eligible children in the applicant's family.35.25    The maximum award to the applicant shall be $2,300$2,600 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. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 36.2MINNESOTA EARLY CHILDHOOD TEACHER EDUCATION INCENTIVE 36.3PROGRAMS.36.4    Subdivision 1.TEACH.The teacher education and compensation helps program 36.5(TEACH) is established to provide tuition scholarships and education incentives to early 36.6care and education providers. The director shall make a grant with appropriations for this 36.7purpose to a nonprofit organization licensed to administer the TEACH early childhood 36.8program.36.9    Subd. 2.Program components.(a) The nonprofit organization must use the 36.10grant for:36.11    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 36.12recognized child development associate credential or college-level courses leading to an 36.13associate's or bachelor's degree in early childhood development and school-age care; and 36.14    (2) education incentives of a minimum of $100 to participants in the tuition 36.15scholarship program if they complete a year of working in the early care and education 36.16field.36.17    (b) Applicants for the scholarship must be employed by a licensed early childhood 36.18or child care program and working directly with children, a licensed family child care 36.19provider, or an employee in a school-age program exempt from licensing under section 36.20245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 36.21awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 36.22the total scholarship and must be sponsored by their employers, who must also contribute 36.23ten percent of the total scholarship. Scholarship recipients who are self-employed must 36.24contribute 20 percent of the total scholarship. 36.25    Subd. 3.Advisory committee.The TEACH early childhood and Minnesota early 36.26childhood teacher education incentive programs may have an advisory board as prescribed 36.27by the national TEACH organization.36.28    Sec. 25. [136A.127] ACHIEVE SCHOLARSHIP PROGRAM.36.29    Subdivision 1.Establishment.The Achieve Scholarship Program is established.36.30    Subd. 2.Definition; qualifying course.For the purposes of this section, a 36.31"qualifying course" means a course that is equivalent to at least one course credit in high 36.32school, as defined in section 120B.024, and that is a rigorous course as determined by 36.33the local school district.36.34    Subd. 3.Documentation of qualifying courses.At the student's request, the high 36.35school shall provide a transcript to the Office of Higher Education documenting the 37.1qualifying courses the student took. High schools shall certify, on the transcript, which 37.2courses on the transcript are qualifying courses and provide a total number of qualifying 37.3courses for each student.37.4    Subd. 4.Review panel.The director of the office may appoint a review panel to 37.5monitor the implementation of the Achieve Scholarship Program. The review panel may 37.6assist the director in reviewing a determination by a school district that a high school 37.7course is rigorous. The review panel shall include representatives of public and private 37.8high schools and postsecondary institutions.37.9    Subd. 5.Student eligibility.To be eligible to receive a scholarship under this 37.10section, a student must:37.11    (1) take and receive a passing grade for qualifying courses under subdivision 2 in 37.12a Minnesota high school and graduate from high school;37.13    (2) have total household income that qualifies for free and reduced price meals under 37.14the National School Lunch Program; and37.15    (3) be a Minnesota resident student as defined in section 136A.101, subdivision 8.37.16    Subd. 6.Administration.The Achieve Scholarship Program shall be administered 37.17by the Minnesota Office of Higher Education. The director shall develop forms and 37.18procedures necessary to administer the program. 37.19    Subd. 7.Application.A student must complete and submit an application for 37.20the Achieve scholarship.37.21    Subd. 8.Deadline.The deadline for the office to accept applications for Achieve 37.22scholarships is 30 days after the beginning of the academic term for which the application 37.23is submitted.37.24    Subd. 9.Documentation of qualifying household income.Achieve Scholarship 37.25Program applicants must certify on the application that they meet the income eligibility 37.26requirement in subdivision 5, clause (2). The Office of Higher Education or the 37.27postsecondary institution may request documentation needed to confirm income eligibility.37.28    Subd. 10.Scholarships awards.(a) A scholarship under this section may be 37.29awarded in each of the first four years of postsecondary instruction immediately following 37.30graduation from high school. The amount of the scholarship is $250 for each qualifying 37.31course completed at a Minnesota high school. The maximum annual amount of the 37.32scholarship is $1,250 and the maximum lifetime amount for any student is $5,000. The 37.33scholarship may be used to pay qualifying expenses at eligible institutions.37.34    (b) A student must meet the requirements of section 136A.101, subdivision 10, 37.35for the Achieve scholarship to be renewed.38.1    Subd. 11.Qualifying expenses.Qualifying expenses are tuition, fees, and other 38.2educational expenses.38.3    Subd. 12.Eligible institutions.The Achieve scholarship may only be used to 38.4pay qualifying expenses at an eligible institution as defined under section 136A.101, 38.5subdivision 4.38.6    Subd. 13.Evaluation report.By January 15 of each odd-numbered year, the 38.7Office of Higher Education shall submit a report, to the committees of the legislature with 38.8jurisdiction over higher education finance and policy, regarding the success of the program 38.9in increasing the enrollment of students in rigorous high school courses, including, at a 38.10minimum, the following information:38.11    (1) a description of the number of individuals participating in the program;38.12    (2) the courses taken by the program participants;38.13    (3) the number of credits program participants received for the courses they 38.14completed;38.15    (4) the high schools attended by the program participants;38.16    (5) the postsecondary institutions attended by the program participants;38.17    (6) the academic performance of the students after enrolling in a postsecondary 38.18institution; and38.19    (7) other information as identified by the director.38.20EFFECTIVE DATE.This section is effective July 1, 2008.38.21    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 togiven 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 the Board of 38.27Regents of the University of Minnesota; (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; (3) is licensed or registered as a postsecondary institution 38.31by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 38.32Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. 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 predecessors. 39.11    Sec. 29. Minnesota Statutes 2006, section 136A.16, is amended by adding a 39.12subdivision to read:39.13    Subd. 16.Interest rate swaps and other agreements.(a) The office may enter into 39.14interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 39.15or other comparable interest rate protection agreements with a third party in connection 39.16with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 39.17comparable interest rate protection agreements.39.18    (b) The agreements authorized by this subdivision include without limitation master 39.19agreements, options, or contracts to enter into those agreements in the future and related 39.20agreements, including, without limitation, agreements to provide credit enhancement, 39.21liquidity, or remarketing.39.22    (c) The agreements authorized by this subdivision may be entered into on the basis 39.23of negotiation with a qualified third party or through a competitive proposal process on 39.24terms and conditions as and with covenants and provisions approved by the office and 39.25may include, without limitation:39.26    (1) provisions establishing reserves;39.27    (2) pledging assets or revenues of the office for current or other payments or 39.28termination payments;39.29    (3) contracting with the other parties to the agreements to provide for the custody, 39.30collection, securement, investment, and payment of money of the office or money held 39.31in trust; or39.32    (4) requiring the issuance of bonds or other agreements authorized by this section 39.33in the future.39.34    (d) With respect to bonds or notes outstanding or proposed to be issued bearing 39.35interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 40.1or at a different variable rate determined in accordance with a formula set out in the 40.2agreement on an amount not exceeding the outstanding principal amount of the bonds or 40.3notes at the time of payment in exchange for an agreement by the third party to pay sums 40.4equal to interest on a like amount at a variable rate determined according to a formula 40.5set out in the agreement.40.6    (e) With respect to bonds or notes outstanding or proposed to be issued bearing 40.7interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 40.8variable rate determined in accordance with a formula set out in the agreement on an 40.9amount not exceeding the outstanding principal amount of the bonds or notes at the time of 40.10payment in exchange for an agreement by the third party to pay sums equal to interest on a 40.11like amount at a fixed rate or rates determined according to a formula set in the agreement.40.12    (f) Subject to any applicable covenants of the office, payments required to be made 40.13by the office under the agreement, including termination payments, may be made from 40.14amounts pledged or available to pay debt service on the bonds or notes with respect to 40.15which the agreement was made or from assets of the loan capital fund of the office. 40.16The office may issue bonds or notes to provide for any payments, including, without 40.17limitation, a termination payment due or to become due under an agreement authorized 40.18under this section.40.19    (g) The authority of the office to enter into interest rate protection agreements under 40.20this section is limited to agreements related to bonds and notes with an aggregate value of 40.21no more than $20,000,000.40.22    Sec. 30. Minnesota Statutes 2006, section 136A.1702, is amended to read:40.23136A.1702 COMMISSION APPROVAL LEGISLATIVE OVERSIGHT.40.24    The office shall obtain approval fromnotify the Legislative Advisory Commission40.25chairs of the legislative committees with primary jurisdiction over higher education 40.26finance of any proposed material change to any of its student loan programs 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 136A.17; and40.33    (3) providing for programs of supplemental and additional loans as defined in section 40.34136A.1701 making the change. 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. In each academic year, a student may be awarded work-study 41.8payments for one period of nonenrollment or less than half-time enrollment if the student 41.9will enroll on at least a half-time basis during the following academic term.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$950,000,000 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 and retention by providing outreach 42.3services to historically underserved students in grades six through 12 and historically 42.4underrepresented college students. 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; and42.17    (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); or42.31    (4) are a member of a group traditionally underrepresented in higher education.42.32    Eligible undergraduate students include those who met the student eligibility criteria 42.33as 6th through 12th graders.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 precollegeprogram 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 attendance43.11and support postsecondary retention;43.12    (4) a description of how the services will be evaluated to determine whether the 43.13program goals were met; and43.14    (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 and undergraduate student 43.25retention program activities for dissemination to individuals throughout the state interested 43.26in adopting or replicating successful program practices; and43.27    (2) data on the success of the funded projects in increasing the high school 43.28graduation and, college participation, and college graduation 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 and 43.31undergraduate retention programs.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. In selecting appointees, the governor 44.2must consider the needs of the Board of Trustees and the balance of the board membership 44.3with respect to labor and business representation and racial, gender, geographic, and ethnic 44.4composition. 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.(a) 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; and44.15    (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    (b) Selection criteria developed under this section must include the requirement that 44.19trustees represent diversity in geography, gender, race, occupation, and experience.44.20    (c) Selection criteria developed under this section must also include the identification 44.21of the membership needs of the board for individual skills relevant to the governance 44.22of the Minnesota State Colleges and Universities and the needs for certain individual 44.23characteristics that include geographic location, gender, race, occupation, and experience. 44.24    Sec. 39. Minnesota Statutes 2006, section 136F.03, subdivision 4, is amended to read:44.25    Subd. 4. Recommendations.Except for seats filled under section 136F.04 , 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; COURSE MATERIAL ACQUISITION.45.6    Subdivision 1.Authorization. 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    Subd. 2.Course material.(a) An instructor shall attempt to provide adequate 45.13notice to a bookstore of the intention to order required or recommended course material 45.14so that the bookstore can provide information for the instructor's consideration prior to 45.15placing an order for the course material.45.16    (b) A bookstore must make reasonable efforts to obtain from publishers or other 45.17sources, prior to the time an instructor requests the bookstore to order course material, 45.18the following information, including, but not limited to:45.19    (1) the title, edition, author, and International Standard Book Number (ISBN) of 45.20the course material;45.21    (2) the price for the course material;45.22    (3) whether the course material is bundled with optional material, whether it can be 45.23unbundled, and the price for each bundled and unbundled component;45.24    (4) whether the material is available in an alternative format and the cost for the 45.25alternatively formatted material;45.26    (5) the availability of the course material currently and in the future;45.27    (6) changes to the course material from the previous edition, the revision date, 45.28availability, and cost for that edition, if available; and45.29    (7) any known plans for future revisions of the course material.45.30    (c) An instructor ordering course material through a bookstore shall consider the 45.31information received from the bookstore prior to placing the final order.45.32    Subd. 3.Notice to purchase.(a) An instructor shall make reasonable efforts to 45.33notify a bookstore of the final order for required and recommended course material at least 45.3430 days prior to the commencement of the term.46.1    (b) The bookstore must make reasonable efforts to notify students of the following 46.2information concerning the required and recommended course material at least 15 days 46.3prior to the commencement of the term for which the course material is required including, 46.4but not limited to:46.5    (1) the title, edition, author, and International Standard Book Number (ISBN) of 46.6the course material;46.7    (2) the price for the course material;46.8    (3) whether the required course material is bundled with optional material, whether 46.9it can be unbundled, and the price for each bundled and unbundled component; and46.10    (4) whether the material is available in an alternative format and the cost for the 46.11alternatively formatted material.46.12    Subd. 4.System responsibility.The board shall, to the extent it considers 46.13necessary, adopt uniform forms for bookstores to request information under subdivision 2. 46.14The board shall encourage faculty to utilize the information received under subdivision 2 46.15to achieve the lowest cost to students for course materials consistent with the academic 46.16freedom and choice of the faculty member.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    Subd. 4.Banking services.Notwithstanding section 16A.27, the board shall 46.24have authority to control the amount and manner of deposit of all receipts described in 46.25this section in depositories selected by the board. The board's authority shall include 46.26specifying the considerations, financial activities, and conditions required from the 46.27depository, including the requirement of collateral security or a corporate surety bond 46.28as described in section 118A.03. The board may compensate the depository, including 46.29paying a reasonable charge to the depository, maintaining appropriate compensating 46.30balances with the depository, or purchasing non-interest-bearing certificates of deposit 46.31from the depository for performing depository-related services.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 $400; and47.6    (2) if the beneficiary's family income is more than $50,000 but not more than 47.7$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 47.8during the calendar year, not to exceed $300 $400.47.9    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 joint 47.13legislative committee described in section 137.0246, subdivision 2.47.14    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 joint legislative 47.18committee described in section 137.0246, subdivision 2.47.19    (b) The advisory council must submit a report to the governorjoint committee 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 137.023 and 137.024. 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. Regent nomination 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 andthe members of the 48.6higher education budget and policy divisions and the ranking minority member of those 48.7committees and divisions must be appointed in each house of the legislature. The chairs 48.8of the divisions from each body shall be cochairs of the joint legislative committee. 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 nominees48.12advisory council's recommendations 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 nominees48.15candidates recommended by the governor advisory council and the other candidates 48.16nominated by the joint committee. If the joint committee does not recommend a 48.17governor's nominee, the governor must submit a different nominee for the same vacancy.48.18A candidate other than those recommended by the advisory council may be nominated 48.19for consideration by the joint committee only if the nomination receives the support of at 48.20least three house of representatives members of the committee and two senate members 48.21of the committee. A candidate must receive a majority vote of members from the house 48.22of representatives and from the senate on the joint committee to be recommended to the 48.23joint convention. The joint committee may recommend no more than one candidate for 48.24each vacancy. In recommending nominees, the joint committee must consider the needs of 48.25the Board of Regents and the balance of the board membership with respect to gender, 48.26racial, and ethnic composition.48.27    (d) The joint committee must meet twice, approximately one week apart. The first 48.28meeting is for the purpose of interviewing candidates and recommending candidates for 48.29the joint committee to consider. The second meeting is for the purpose of voting for 48.30candidates for recommendation to the joint convention.48.31    Sec. 48. [137.0252] APPROPRIATION; CONTRACT BUYOUT.48.32    No appropriation from the state of Minnesota to the governing board of the 48.33University of Minnesota shall be used directly or indirectly for costs related to the early 48.34termination of a contract of a coach who reports to the director of athletics.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 or state 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 or state payments. The state 49.7college or university may request without delay the amount of tuition above expected 49.8federal  and state 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 or state 49.10educational assistance.49.11    Sec. 50. [197.791] MINNESOTA GI BILL PROGRAM.49.12    Subdivision 1.Definitions. (a) The definitions in this subdivision apply to this 49.13section. 49.14    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 49.15specified.49.16    (c) "Cost of attendance" for both graduate and undergraduate students has the 49.17meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.1. The 49.18tuition and fee maximum established by law for four-year programs shall be used to 49.19calculate the tuition and fee maximum under section 136A.121, subdivision 6, for 49.20a graduate student.49.21    (d) "Child" means a natural or adopted child of a person described in subdivision 4, 49.22paragraph (a), clause (1), item (i) or (ii).49.23    (e) "Eligible institution" means a postsecondary institution under section 136A.101, 49.24subdivision 4.49.25    (f) "Program" means the Minnesota GI Bill program established in this section, 49.26unless otherwise specified.49.27    (g) "Time of hostilities" means any action by the armed forces of the United States 49.28that is recognized by the issuance of a presidential proclamation or a presidential executive 49.29order in which the armed forces expeditionary medal or other campaign service medals 49.30are awarded according to presidential executive order, and any additional period or place 49.31that the commissioner determines and designates, after consultation with the United States 49.32Department of Defense, to be a period or place where the United States is in a conflict that 49.33places persons at such a risk that service in a foreign country during that period or in that 49.34place should be considered to be included.50.1    (h) "Veteran" has the meaning given in section 197.447. Veteran also includes 50.2a service member who has received an honorable discharge after leaving each period of 50.3federal active duty service and has: 50.4    (1) served 90 days or more of federal active duty in a foreign country during a time 50.5of hostilities in that country; or50.6    (2) received a service-related medical discharge from any period of service in a 50.7foreign country during a time of hostilities in that country.50.8A service member who has fulfilled the requirements for being a veteran under this 50.9paragraph but is still serving actively in the United States armed forces is also a veteran 50.10for the purposes of this section.50.11    Subd. 2.Program established.The Minnesota GI Bill Program is established to 50.12provide postsecondary educational assistance to eligible Minnesota veterans and to the 50.13children and spouses of deceased and severely disabled Minnesota veterans.50.14    The commissioner, in cooperation with eligible postsecondary educational 50.15institutions, shall administer the program for the purpose of providing postsecondary 50.16educational assistance to eligible persons in accordance with this section. Each public 50.17postsecondary educational institution in the state must participate in the program and each 50.18private postsecondary educational institution in the state is encouraged to participate in the 50.19program. Any participating private institution may suspend or terminate its participation 50.20in the program at the end of any semester or other academic term.50.21    Subd. 3.Duties; responsibilities.(a) The commissioner shall establish policies 50.22and procedures including, but not limited to, procedures for student application record 50.23keeping, information sharing, payment of educational assistance benefits, and other 50.24procedures the commissioner considers appropriate and necessary for effective and 50.25efficient administration of the program established in this section.50.26    (b) The commissioner may delegate part or all of the administrative procedures 50.27for the program to responsible representatives of participating eligible institutions. The 50.28commissioner may execute an interagency agreement with the Office of Higher Education 50.29for services the commissioner determines necessary to administer the program.50.30    Subd. 4.Eligibility.(a) A person is eligible for educational assistance under this 50.31section if:50.32    (1) the person is:50.33    (i) a veteran who is serving or has served honorably in any branch or unit of the 50.34United States armed forces at any time on or after September 11, 2001;50.35    (ii) a nonveteran who has served honorably for a total of five years or more 50.36cumulatively as a member of the Minnesota National Guard or any other active or reserve 51.1component of the United States armed forces, and any part of that service occurred on or 51.2after September 11, 2001;51.3    (iii) the surviving spouse or child of a person who has served in the military at any 51.4time on or after September 11, 2001, and who has died as a direct result of that military 51.5service; or51.6    (iv) the spouse or child of a person who has served in the military at any time on or 51.7after September 11, 2001, and who has a total and permanent service-connected disability 51.8as rated by the United States Veterans Administration;51.9    (2) the person providing the military service described in clause (1), items (i) to (iv), 51.10was a Minnesota resident within six months of the time of the person's initial enlistment or 51.11any reenlistment in the United States armed forces;51.12    (3) the person receiving the educational assistance is a Minnesota resident, as 51.13defined in section 136A.101, subdivision 8; and51.14    (4) the person receiving the educational assistance: 51.15    (i) is an undergraduate or graduate student at an eligible institution;51.16    (ii) is maintaining satisfactory academic progress as defined by the institution for 51.17students participating in federal Title IV programs;51.18    (iii) is enrolled in an education program leading to a certificate, diploma, or degree 51.19at an eligible institution; 51.20    (iv) has applied for educational assistance under this section prior to the end of the 51.21academic term for which the assistance is being requested;51.22    (v) is in compliance with child support payment requirements under section 51.23136A.121, subdivision 2, clause (5); and51.24    (vi) if an undergraduate student, has applied for the federal Pell Grant and the 51.25Minnesota State Grant.51.26    (b) A person's eligibility terminates when the person becomes eligible for benefits 51.27under section 135A.52.51.28    (c) To determine eligibility, the commissioner may require official documentation, 51.29including the person's federal form DD-214 or other official military discharge papers; 51.30correspondence from the United States Veterans Administration; birth certificate; marriage 51.31certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 51.32residency; proof of identity; or any other official documentation the commissioner 51.33considers necessary to determine eligibility.51.34    (d) The commissioner may deny eligibility or terminate benefits under this section 51.35to any person who has not provided sufficient documentation to determine eligibility for 51.36the program. An applicant may appeal the commissioner's eligibility determination or 52.1termination of benefits in writing to the commissioner at any time. The commissioner 52.2must rule on any application or appeal within 30 days of receipt of all documentation that 52.3the commissioner requires. The decision of the commissioner regarding an appeal is final. 52.4However, an applicant whose appeal of an eligibility determination has been rejected by 52.5the commissioner may submit an additional appeal of that determination in writing to the 52.6commissioner at any time that the applicant is able to provide substantively significant 52.7additional information regarding the applicant's eligibility for the program. An approval 52.8of an applicant's eligibility by the commissioner following an appeal by the applicant is 52.9not retroactively effective for more than one year or the semester of the person's original 52.10application, whichever is later.52.11    (e) Upon receiving an application with insufficient documentation to determine 52.12eligibility, the commissioner must notify the applicant within 30 days of receipt of the 52.13application that the application is being suspended pending receipt by the commissioner of 52.14sufficient documentation from the applicant to determine eligibility.52.15    Subd. 5.Benefit amount.(a) On approval by the commissioner of eligibility for 52.16the program, the applicant shall be awarded, on a funds-available basis, the educational 52.17assistance under the program for use at any time according to program rules at any 52.18eligible institution.52.19    (b) The amount of educational assistance in any semester or term for an eligible 52.20person must be determined by subtracting from the eligible person's cost of attendance the 52.21amount the person received or was eligible to receive in that semester or term from:52.22    (1) the federal Pell Grant;52.23    (2) the state grant program under section 136A.121; and 52.24    (3) any federal military or veterans educational benefits including but not limited 52.25to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 52.26vocational rehabilitation benefits, and any other federal benefits associated with the 52.27person's status as a veteran, except veterans disability payments from the United States 52.28Veterans Administration.52.29    (c) The amount of educational assistance for any eligible person who is a full-time 52.30student must not exceed the following:52.31    (1) $1,000 per semester or term of enrollment;52.32    (2) $2,000 per state fiscal year; and52.33    (3) $10,000 in a lifetime.52.34For a part-time student, the amount of educational assistance must not exceed $500 52.35per semester or term of enrollment. For the purpose of this paragraph, a part-time 52.36undergraduate student is a student taking fewer than 12 credits for a semester or term 53.1of enrollment and a part-time graduate student is a student considered part-time by the 53.2eligible institution the graduate student is attending.53.3    Subd. 6.Insufficient appropriation.If the amount appropriated is determined 53.4by the commissioner to be insufficient to pay the benefit amounts in subdivision 5, the 53.5commissioner must reduce the amounts specified in subdivision 5, paragraph (c), clauses 53.6(1) and (2).53.7EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 53.8qualifying coursework taken on or after that date.53.9    Sec. 51. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 53.10AT WORTHINGTON; YMCA LEASE AGREEMENT.53.11    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 53.12into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 53.13the Minnesota West Community and Technical College at Worthington campus for the 53.14construction of a YMCA facility. The lease may also include the city of Worthington.53.15    (b) Siting and design of the facility must be consistent with the college's master 53.16plan and Minnesota State Colleges and Universities' building standards. Minnesota 53.17West Community and Technical College may negotiate for use of the facility for college 53.18purposes. The lease must contain a provision that the lease shall terminate if the improved 53.19property is no longer used for the partial benefit of the students at the Worthington campus.53.20    Sec. 52. INTEREST RATE PROTECTION AGREEMENTS; REPORT.53.21    The Office of Higher Education must report by February 1, 2009, to the senate and 53.22house of representatives committees with primary jurisdiction over higher education 53.23finance and policy on the results of the office's interest rate protection agreement activity 53.24under Minnesota Statutes, section 136A.16, subdivision 16.53.25    Sec. 53.  REPEALER.53.26(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, and 6; 53.27135A.032; 135A.033; 135A.045; 135A.053; 136A.07; and 136A.08, subdivision 8, are 53.28repealed.53.29(b) Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; 53.30and 4, subdivision 5, are repealed.54.1ARTICLE 354.2PRIVATE INSTITUTIONS54.3    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 54.7not-for-profit and for-profit 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 private and 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. [136A.615] CITATION.54.18    Sections 136A.61 to 136A.71 may be cited as the "Minnesota Private and 54.19Out-of-State Public Postsecondary Education Act."54.20    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:54.21    Subd. 3. School. "School" means: 54.22    (1) any individual, partnership, company, firm, society, trust, association, 54.23corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 54.24nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, 54.25for-profit postsecondary education institution; or (iii) 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 mean55.1    (2) 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; or55.4    (3) any individual, entity, or postsecondary institution located in another state 55.5that contracts with any school located within the state of Minnesota for the purpose of 55.6providing educational programs, training programs, or awarding postsecondary credits 55.7or continuing education credits to Minnesota residents that may be applied to a degree 55.8program.55.9    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:55.10136A.63 REGISTRATION.55.11    Subdivision 1.Annual registration. All schools located within Minnesota and 55.12all schools located outside Minnesota which offer degree programs or courses within 55.13Minnesota shall register annually with the office.55.14    Subd. 2.Sale of an institution.Within 30 days of a change of its ownership a school 55.15must submit a registration renewal application, all usual and ordinary information and 55.16materials for an initial registration, and applicable registration fees for a new institution. 55.17For purposes of this subdivision, "change of ownership" means a merger or consolidation 55.18with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 55.19the assets of a school; the transfer of a controlling interest of at least 51 percent of the 55.20school's stock; or a change in the not-for-profit or for-profit status of a school.55.21    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:55.22136A.64 INFORMATION REQUIRED FOR REGISTRATION.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. the following which 55.29shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 55.30    (1) articles of incorporation, constitution, bylaws, or other operating documents; 55.31    (2) a duly adopted statement of the school's mission and goals; 55.32    (3) evidence of current school or program licenses granted by departments or 55.33agencies of any state; 56.1    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 56.2past fiscal year including any management letters provided by the independent auditor 56.3or, if the school is a public institution outside Minnesota, an income statement for the 56.4immediate past fiscal year; 56.5    (5) all current promotional and recruitment materials and advertisements; and56.6    (6) the current school catalog and, if not contained in the catalog: 56.7    (i) the members of the board of trustees or directors, if any; 56.8    (ii) the current institutional officers; 56.9    (iii) current full-time and part-time faculty with degrees held or applicable 56.10experience; 56.11    (iv) a description of all school facilities; 56.12    (v) a description of all current course offerings; 56.13    (vi) all requirements for satisfactory completion of courses, programs, and degrees; 56.14    (vii) the school's policy about freedom or limitation of expression and inquiry; 56.15    (viii) a current schedule of fees, charges for tuition, required supplies, student 56.16activities, housing, and all other standard charges; 56.17    (ix) the school's policy about refunds and adjustments; 56.18    (x) the school's policy about granting credit for prior education, training, and 56.19experience; and 56.20    (xi) the school's policies about student admission, evaluation, suspension, and 56.21dismissal. 56.22    Subd. 2. Financial records. The office shall not disclose financial records or 56.23accreditation reports 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    Subd. 3.Additional information.If the office is unable to determine the nature 56.28and activities of a school on the basis of the information in subdivision 1, the office shall 56.29notify the school of additional information needed.56.30    Subd. 4.Verification of information.The office may verify the accuracy of 56.31submitted information by inspection, visitation, or any other means it considers necessary.56.32    Subd. 5.Public information.All information submitted to the office is public 56.33information except financial and accreditation records and information. The office may 56.34disclose financial records or information to defend its decision to approve or disapprove 56.35granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 56.36under chapter 14 or other legal proceedings.57.1    Subd. 6.Late registration penalty.Applications for renewal for any registration 57.2received after the deadline date specified in the renewal materials provided by the office 57.3are subject to a late fee equal to 20 percent of the annual registration renewal fee.57.4    Subd. 7.Out-of-state expenses.A school shall reimburse the office for actual costs 57.5associated with a site evaluation visit outside Minnesota if the visit is necessary under 57.6subdivision 1 or 3.57.7    Sec. 6. [136A.645] SCHOOL CLOSURE.57.8    When a school decides to cease postsecondary education operations, it must 57.9cooperate with the office in assisting students to find alternative means to complete their 57.10studies with a minimum of disruption, and inform the office of the following:57.11    (1) the planned date for termination of postsecondary education operations;57.12    (2) the planned date for the transfer of the student records;57.13    (3) confirmation of the name and address of the organization to receive and hold 57.14the student records; and57.15    (4) the official at the organization receiving the student records who is designated to 57.16provide official copies of records or transcripts upon request.57.17Upon notice from a school of its intention to cease operations, the office shall notify the 57.18school of the date on which it must cease the enrollment of students and all postsecondary 57.19educational operations.57.20    Sec. 7. [136A.646] ADDITIONAL SECURITY.57.21    In the event any registered institution is notified by the United States Department 57.22of Education that it has fallen below minimum financial standards and that its continued 57.23participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 57.24Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 57.25Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 57.26institution shall provide a surety bond conditioned upon the faithful performance of all 57.27contracts and agreements with students in a sum equal to the "letter of credit" required by 57.28the United States Department of Education in the Letter of Credit Alternative, but in no 57.29event shall such bond be less than $10,000 nor more than $250,000.57.30    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 isand its underlying curriculum are 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    Subd. 1a.Accreditation; requirement.A school must not be registered or 58.4authorized to offer any degree at any level unless the school is accredited by an agency 58.5recognized by the United States Department of Education for purposes of eligibility to 58.6participate in Title IV federal financial aid programs. Any registered school undergoing 58.7institutional accreditation shall inform the office of site visits by the accrediting agency 58.8and provide office staff the opportunity to attend the visits, including any exit interviews. 58.9The institution must provide the office with a copy of the final report upon receipt.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, and using such 58.16term in its name on or before August 1, 19752007, and if it meets the other policies and 58.17standards for approval established by the office.58.18    Subd. 4.Criteria for approval.(a) A school applying to be registered and to have 58.19its degree or degrees and name approved must substantially meet the following criteria: 58.20    (1) the school has an organizational framework with administrative and teaching 58.21personnel to provide the educational programs offered;58.22    (2) the school has financial resources sufficient to meet the school's financial 58.23obligations, including refunding tuition and other charges consistent with its stated policy 58.24if the institution is dissolved, or if claims for refunds are made, to provide service to the 58.25students as promised, and to provide educational programs leading to degrees as offered;58.26    (3) the school operates in conformity with generally accepted budgeting and 58.27accounting principles;58.28    (4) the school provides an educational program leading to the degree it offers; 58.29    (5) the school provides appropriate and accessible library, laboratory, and other 58.30physical facilities to support the educational program offered;58.31    (6) the school has a policy on freedom or limitation of expression and inquiry for 58.32faculty and students which is published or available on request; 58.33    (7) the school uses only publications and advertisements which are truthful and do 58.34not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 58.35school, its personnel, programs, services, or occupational opportunities for its graduates 58.36for promotion and student recruitment;59.1    (8) the school's compensated recruiting agents who are operating in Minnesota 59.2identify themselves as agents of the school when talking to or corresponding with students 59.3and prospective students; and59.4    (9) the school provides information to students and prospective students concerning: 59.5    (i) comprehensive and accurate policies relating to student admission, evaluation, 59.6suspension, and dismissal; 59.7    (ii) clear and accurate policies relating to granting credit for prior education, training, 59.8and experience and for courses offered by the school; 59.9    (iii) current schedules of fees, charges for tuition, required supplies, student 59.10activities, housing, and all other standard charges; 59.11    (iv) policies regarding refunds and adjustments for withdrawal or modification 59.12of enrollment status; and 59.13    (v) procedures and standards used for selection of recipients and the terms of 59.14payment and repayment for any financial aid program.59.15    (b) An application for degree approval must also include: 59.16    (i) title of degree and formal recognition awarded; 59.17    (ii) location where such degree will be offered; 59.18    (iii) proposed implementation date of the degree; 59.19    (iv) admissions requirements for the degree; 59.20    (v) length of the degree; 59.21    (vi) projected enrollment for a period of five years; 59.22    (vii) the curriculum required for the degree, including course syllabi or outlines; 59.23    (viii) statement of academic and administrative mechanisms planned for monitoring 59.24the quality of the proposed degree; 59.25    (ix) statement of satisfaction of professional licensure criteria, if applicable; 59.26    (x) documentation of the availability of clinical, internship, externship, or practicum 59.27sites, if applicable; and 59.28    (xi) statement of how the degree fulfills the institution's mission and goals, 59.29complements existing degrees, and contributes to the school's viability.59.30    Subd. 5.Requirements for degree approval.For each degree a school offers to a 59.31student, where the student does not leave Minnesota for the major portion of the program 59.32or course leading to the degree, the school must have: 59.33    (1) qualified teaching personnel to provide the educational programs for each degree 59.34for which approval is sought; 59.35    (2) appropriate educational programs leading to each degree for which approval 59.36is sought; 60.1    (3) appropriate and accessible library, laboratory, and other physical facilities to 60.2support the educational program for each degree for which approval is sought; and 60.3    (4) a rationale showing that degree programs are consistent with the school's mission 60.4and goals.60.5    Subd. 6.Name.A school may use the term "academy" or "institute" in its name 60.6without meeting any additional requirements. A school may use the term "college" in its 60.7name if it offers at least one program leading to an associate degree. A school may use 60.8the term "university" in its name if it offers at least one program leading to a master's 60.9or doctorate degree.60.10    Subd. 7.Conditional approval.The office may grant conditional approval for a 60.11degree or use of a term in its name for a period of less than one year if doing so would be 60.12in the best interests of currently enrolled students or prospective students.60.13    Subd. 8.Disapproval of registration appeal.(a) If a school's degree or use of a 60.14term in its name is disapproved by the office, the school may request a hearing under 60.15chapter 14. The request must be in writing and made to the office within 30 days of the 60.16date the school is notified of the disapproval. 60.17    (b) The office may refuse to renew, revoke, or suspend registration, approval of 60.18a school's degree, or use of a regulated term in its name by giving written notice and 60.19reasons to the school. The school may request a hearing under chapter 14. If a hearing is 60.20requested, no revocation or suspension shall take effect until after the hearing. 60.21    (c) Reasons for revocation or suspension of registration or approval may be for one 60.22or more of the following reasons: 60.23    (1) violating the provisions of sections 136A.61 to 136A.71; 60.24    (2) providing false, misleading, or incomplete information to the office; 60.25    (3) presenting information about the school which is false, fraudulent, misleading, 60.26deceptive, or inaccurate in a material respect to students or prospective students; or 60.27    (4) refusing to allow reasonable inspection or to supply reasonable information after 60.28a written request by the office has been received.60.29    Sec. 9. Minnesota Statutes 2006, section 136A.657, is amended by adding a 60.30subdivision to read:60.31    Subd. 4.Statement required; religious nature.Any degree awarded upon 60.32completion of a religiously exempt program shall include descriptive language to make 60.33the religious nature of the award clear.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 registered institutions 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 A school which is duly registered with the office, or any of its officials or 61.11employees, may represent in advertising and shall disclose in catalogues, applications, 61.12and enrollment materials that the school is registered with the office. by prominently 61.13displaying the following statement: "(Name of school) is registered as a private institution 61.14with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71. 61.15Registration is not an endorsement of the institution. Credits earned at the institution 61.16may not transfer to all other institutions."61.17    Sec. 12. [136A.675] RISK ANALYSIS.61.18    The office shall develop a set of financial and programmatic evaluation metrics to 61.19aid in the detection of the failure or potential failure of a school to meet the standards 61.20established under sections 136A.61 to 136A.71. These metrics shall include indicators 61.21of financial stability, changes in the senior management or the financial aid and senior 61.22administrative staff of an institution, changes in enrollment, changes in program offerings, 61.23and changes in faculty staffing patterns. The development of financial standards shall use 61.24industry standards as benchmarks. The development of the nonfinancial standards shall 61.25include a measure of trends and dramatic changes in trends or practice. The agency must 61.26specify the metrics and standards for each area and provide a copy to each registered 61.27institution and post them on the agency Web site. The agency shall use regularly reported 61.28data submitted to the federal government or other regulatory or accreditation agencies 61.29wherever possible. The agency may require more frequent data reporting by an institution 61.30to ascertain whether the standards are being met.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. A registered school shall maintain a permanent 62.7record for each student for 50 years from the last date of the student's attendance. A 62.8registered school offering distance instruction to a student located in Minnesota shall 62.9maintain a permanent record for each Minnesota student for 50 years from the last date of 62.10the student's attendance. Records include a student's academic transcript, documents, and 62.11files containing student data about academic credits earned, courses completed, grades 62.12awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 62.13school shall submit a plan that meets the following requirements: 62.14    (1) at least one copy of the records must be held in a secure, fireproof depository 62.15or duplicate records must be maintained off site in a secure location and in a manner 62.16approved by the office; 62.17    (2) an appropriate official must be designated to provide a student with copies of 62.18records or a transcript upon request; 62.19    (3) an alternative method approved by the office of complying with clauses (1) and 62.20(2) must be established if the school ceases to exist; and 62.21    (4) if the school has no binding agreement approved by the office for preserving 62.22student records, a continuous surety bond must be filed with the office in an amount not to 62.23exceed $20,000. The bond shall run to the state of Minnesota.62.24    Sec. 14. Minnesota Statutes 2006, section 136A.69, is amended to read:62.25136A.69 FEES.62.26    Subdivision 1.Registration fees. 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    Subd. 2.Degree level addition fee.The office processing fee for adding a degree 62.31level to an existing program is $2,000 per program.62.32    Subd. 3.Program addition fee.The office processing fee for adding a program 62.33that represents a significant departure in the objectives, content, or method of delivery of 62.34programs that are currently offered by the school is $500 per program.63.1    Subd. 4.Visit or consulting fee.If the office determines that a fact-finding visit 63.2or outside consultant is necessary to review or evaluate any new or revised program, the 63.3office shall be reimbursed for the expenses incurred related to the review as follows: 63.4    (1) $300 for the team base fee or for a paper review conducted by a consultant if the 63.5office determines that a fact-finding visit is not required; 63.6    (2) $300 for each day or part thereof on site per team member; and 63.7    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 63.8by team members.63.9    Subd. 5.Modification fee.The fee for modification of any existing program is 63.10$100 and is due if there is: 63.11    (1) an increase or decrease of 25 percent or more from the original date of program 63.12approval, in clock hours, credit hours, or calendar length of an existing program; 63.13    (2) a change in academic measurement from clock hours to credit hours or vice 63.14versa; or 63.15    (3) an addition or alteration of courses that represent a 25 percent change or more in 63.16the objectives, content, or methods of delivery.63.17    Sec. 15. [136A.705] PENALTY.63.18    The director may assess fines for violations of a provision of sections 136A.61 to 63.19136A.71. Each day's failure to comply with a provision of sections 136A.61 to 136A.71 63.20shall be a separate violation and fines shall not exceed $500 per day per violation. 63.21Amounts received under this section must be deposited in the special revenue fund and are 63.22appropriated to the Office of Higher Education for the purposes in sections 136A.61 to 63.23136A.71.63.24    Sec. 16. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:63.25    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 63.26"office" 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, administers, solicits for, or conducts any program for profit at any63.30less than an associate degree level other than baccalaureate or graduate programs, and is 63.31not specifically exempted by sections 141.21 toand is not registered as a private institution 63.32under sections 136A.61 to 136A.71 and is not specifically exempted by section 141.3563.33or 141.37. School also means any person, within or outside the state, who maintains, 64.1advertises, administers, solicits for, or conducts any program at less than an associate 64.2degree level, is not registered as a private institution pursuant to sections 136A.61 to 64.3136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.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, 64.6administer, 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 shall 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; and65.15    (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, recommended, 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; and66.1    (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) a notice to students relating to the transferability of any credits earned at the 66.35school to other institutions; 67.1    (14) a procedure for investigating and resolving student complaints; and67.2    (14) (15) 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 reissued 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, upon request, 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; and67.30    (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 approved by the office, for preserving 67.32student records or a trust must be arranged if the school ceases to exist. The bond shall run 67.33to the state of Minnesota.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; and68.6    (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, not to exceed $3,000, 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; and68.24    (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.68.28The contract or enrollment agreement must not include a wage assignment provision or a 68.29confession of judgment clause.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 class for a period of 21 consecutive days without contacting the school to 69.1indicate an intent to continue in school or otherwise making arrangements concerning the 69.2absence, 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., except that 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 Disclosure required.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 A69.14school, agent, or solicitor may advertiserepresent in advertisements and shall disclose 69.15in catalogues, applications, and enrollment materials that the school and solicitor have 69.16been is duly licensed by the state using by prominently displaying the following language69.17statement:69.18"(Name of school) is licensed as a private career school with the Minnesota Office of 69.19Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. 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. The director may assess 69.29fines for violations of a provision of this chapter. Each day's failure to comply with this 69.30chapter shall be a separate violation and fines shall not exceed $500 per day per violation. 69.31Amounts received under this section must be deposited in the special revenue fund and are 69.32appropriated to the Office of Higher Education for the purposes of this chapter.70.1    Sec. 30. Minnesota Statutes 2006, section 141.35, is amended to read:70.2141.35 EXEMPTIONS.70.3    Sections 
         141.21 to 
         141.35 141.32 shall not apply to the following:70.4    (1) public postsecondary institutions;70.5    (2) private postsecondary institutions registered under sections 
         136A.61136A.615 70.6to 
         136A.71that are nonprofit, or that are for profit and registered under sections 136A.6170.7to 136A.71 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) (11) 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) (12) 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) (13) 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) (14) 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) (15) classes, courses, or programs providing instruction in personal 71.9development, modeling, or acting;71.10    (17) (16) 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; and71.13    (18) (17) 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. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.71.17    Subdivision 1.Exemption.Any school or any department or branch of a school: 71.18    (1) which is substantially owned, operated, or supported by a bona fide church 71.19or religious organization; 71.20    (2) whose programs are primarily designed for, aimed at, and attended by persons 71.21who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 71.22religious organization; and 71.23    (3) whose programs are primarily intended to prepare its students to become 71.24ministers of, to enter into some other vocation closely related to, or to conduct their lives 71.25in consonance with the particular faith of that church or religious organization,71.26is exempt from the provisions of sections 141.21 to 141.32.71.27    Subd. 2.Limitations.(a) An exemption shall not extend to any school, department 71.28or branch of a school, or program of a school which through advertisements or solicitations 71.29represents to any students or prospective students that the school, its aims, goals, missions, 71.30purposes, or programs are different from those described in subdivision 1.71.31    (b) An exemption shall not extend to any school which represents to any student or 71.32prospective student that the major purpose of its programs is to:71.33    (1) prepare the student for a vocation not closely related to that particular religious 71.34faith; or72.1    (2) provide the student with a general educational program recognized by other 72.2schools or the broader educational, business, or social community as being substantially 72.3equivalent to the educational programs offered by schools or departments or branches of 72.4schools which are not religious in nature and are not exempt from chapter 141 and from 72.5rules adopted pursuant under this chapter.72.6    Subd. 3.Scope.Nothing in this chapter or the rules adopted under it shall be 72.7interpreted as permitting the office to determine the truth or falsity of any particular set 72.8of religious beliefs.72.9    Subd. 4.Descriptive language required.Any certificate, diploma, degree, or other 72.10formal recognition awarded upon completion of any religiously exempt program shall 72.11include such descriptive language as to make the religious nature of the award clear.72.12    Sec. 32. EFFECTIVE DATE; TRANSITION PROCESS.72.13    This article is effective July 1, 2007. Schools licensed pursuant to Minnesota 72.14Statutes, chapter 141, that qualify for private institution registration after July 1, 2007, 72.15shall apply for and complete the process for registration prior to the expiration of their 72.16current private career school license under Minnesota Statutes, chapter 141. Schools 72.17registered as private institutions pursuant to Minnesota Statutes, sections 136A.61 to 72.18136A.71, that are required to obtain a private career school license after July 1, 2007, shall 72.19apply for and complete the process for licensure prior to the expiration of the current 72.20registration, but in any event no later than December 31, 2007. If the office finds it 72.21is necessary to allow for the proper processing of license or registration applications 72.22required by this section, the office is authorized to extend existing license or registration 72.23for a reasonable period of time.