1.1 	A bill for an act
1.2 	relating to higher education; appropriating money; amending certain Minnesota 
1.3 	Office of Higher Education provisions; establishing new grant and loan 
1.4 	repayment programs; amending higher education programs; requiring certain 
1.5 	studies; making technical changes; requiring summary statistics in required 
1.6 	reports; repealing certain data sharing and collecting requirements; modifying 
1.7 	financial aid programs; establishing the Minnesota GI Bill program; regulating 
1.8 	private higher education institutions; providing penalties; amending certain 
1.9 	grant programs; eliminating obsolete references; authorizing control of certain 
1.10 	decreasing students' share of attendance; increasing revenue bond limits; 
1.11 	authorizing control of certain deposits; authorizing lease agreements; authorizing 
1.12 	interest rate swap; providing for the Textbook Disclosure, Pricing, and Access 
1.13 	Act;amending Minnesota Statutes 2006, sections 13.322, subdivision 3; 
1.14 	16B.70, by adding a subdivision; 41D.01, subdivision 1; 135A.01; 135A.031, 
1.15 	subdivisions 1, 7; 135A.034, subdivision 1; 135A.51, subdivision 2; 135A.52, 
1.16 	subdivisions 1, 2; 136A.031, subdivision 5; 136A.08, subdivision 7; 136A.101, 
1.17 	subdivisions 4, 5a; 136A.121, subdivisions 5, 7a, by adding a subdivision; 
1.18 	136A.125, subdivisions 2, 4; 136A.15, subdivisions 1, 6; 136A.16, subdivision 
1.19 	8, by adding a subdivision; 136A.1702; 136A.233, subdivision 3; 136A.29, 
1.20 	subdivision 9; 136A.61; 136A.62, subdivision 3; 136A.63; 136A.64; 136A.65; 
1.21 	136A.657, by adding a subdivision; 136A.66; 136A.67; 136A.68; 136A.69; 
1.22 	136A.861, subdivisions 1, 2, 3, 6; 136F.02, subdivision 1; 136F.03, subdivisions 
1.23 	3, 4; 136F.42, subdivision 1; 136F.58; 136F.71, subdivision 2, by adding a 
1.24 	subdivision; 136G.11, subdivision 5; 137.0246; 141.21, subdivisions 1a, 
1.25 	5; 141.25, subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, 
1.26 	subdivision 2; 141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 
1.27 	141.35; 197.775, subdivision 4; proposing coding for new law in Minnesota 
1.28 	Statutes, chapters 135A; 136A; 136F; 137; 141; 197; repealing Minnesota 
1.29 	Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, 6; 135A.032; 
1.30 	135A.033; 135A.045; 135A.053; 136A.07; 136A.08, subdivision 8; Laws 2001, 
1.31 	First Special Session chapter 1, article 1, sections 3, subdivision 3; 4, subdivision 
1.32 	5.
1.33 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

2.1 	ARTICLE 1
2.2 	HIGHER EDUCATION APPROPRIATIONS

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

2.6	SUMMARY BY FUND
	
2.7			2008
		2009
		Total
	
2.8	General
	$
	 1,561,945,000
	$
	 1,601,563,000
	$
	 3,163,508,000
	
2.9	Health Care Access
	$
	2,157,000
	$
	2,157,000
	$
	4,314,000
	
2.10	Total
	$
	 1,564,102,000
	$
	 1,603,720,000
	$
	3,167,822,000
	
2.11 		Subd. 2.Summary By Agency - All Funds. The amounts shown in this subdivision 
2.12 	summarize direct appropriations, by agency, made in this article.

2.13	SUMMARY BY AGENCY - ALL FUNDS
	
2.14			2008
		2009
		Total
	
2.15
2.16	Minnesota Office of Higher 
Education
	$
	 190,250,000
	$
	 189,776,000
	$
	380,026,000
	
2.17
2.18
2.19	Board of Trustees of the 
Minnesota State Colleges and 
Universities
	$
	660,914,000
	$
	694,228,000
	$
	1,355,142,000
	
2.20
2.21	Board of Regents of the 
University of Minnesota
	$
	706,736,000
	$
	713,466,000
	$
	1,420,202,000
	
2.22	Mayo Medical Foundation
	$
	1,202,000
	$
	1,250,000
	$
	2,452,000
	
2.23
2.24	Department of Veterans 
Affairs
	$
	5,000,000
	$
	5,000,000
	$
	10,000,000
	
2.25	Total
	$
	1,564,102,000
	$
	1,603,720,000
	$
	3,167,822,000

2.26	Sec. 2. HIGHER EDUCATION APPROPRIATIONS.
 	
2.27 	The sums shown in the columns marked "Appropriations" are appropriated to the 
2.28 	agencies and for the purposes specified in this article. The appropriations are from the 
2.29 	general fund, or another named fund, and are available for the fiscal years indicated 
2.30 	for each purpose. The figures "2008" and "2009" used in this article mean that the 
2.31 	appropriations listed under them are available for the fiscal year ending June 30, 2008, or 
2.32 	June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 
2.33 	year 2009. "The biennium" is fiscal years 2008 and 2009.

2.34				APPROPRIATIONS
	
2.35				Available for the Year
	
2.36				Ending June 30
	
2.37					2008
		2009

3.1
3.2	Sec. 3. MINNESOTA OFFICE OF HIGHER 
EDUCATION

3.3	Subdivision 1.Total Appropriation
 	$
	 190,250,000
	$
	189,776,000
	
3.4 	The amounts that may be spent for each 
3.5 	purpose are specified in the following 
3.6 	subdivisions.

3.7	Subd. 2.State Grants
 		150,762,000
		150,510,000
	
3.8 	If the appropriation in this subdivision for 
3.9 	either year is insufficient, the appropriation 
3.10 	for the other year is available for it.
3.11 	For the biennium, the tuition maximum for 
3.12 	students in four-year programs is $9,838 in 
3.13 	each year for students in four-year programs, 
3.14 	and for students in two-year programs, is 
3.15 	$6,114 in the first year and $5,808 in the 
3.16 	second year.
3.17 	This appropriation sets the living and 
3.18 	miscellaneous expense allowance at $5,900 
3.19 	each year.

3.20	Subd. 3.Safety Officers Survivors
 		100,000
		100,000
	
3.21 	This appropriation is to provide educational 
3.22 	benefits under Minnesota Statutes, section 
3.23 	299A.45, to dependent children under age 23 
3.24 	and to the spouses of public safety officers 
3.25 	killed in the line of duty.
3.26 	If the appropriation in this subdivision for 
3.27 	either year is insufficient, the appropriation 
3.28 	for the other year is available for it.

3.29	Subd. 4.Interstate Tuition Reciprocity
 		2,000,000
		2,000,000
	
3.30 	If the appropriation in this subdivision for 
3.31 	either year is insufficient, the appropriation 
3.32 	for the other year is available to meet 
3.33 	reciprocity contract obligations.

4.1	Subd. 5.State Work Study
 		12,444,000
		12,444,000

4.2	Subd. 6.Child Care Grants
 		6,184,000
		6,184,000

4.3	Subd. 7.Minitex
 		5,631,000
		5,631,000

4.4	Subd. 8.MnLINK Gateway
 		400,000
		400,000

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

4.6	Subd. 10.Minnesota College Savings Plan
 		1,020,000
		1,020,000

4.7	Subd. 11.Midwest Higher Education Compact
 		90,000
		90,000

4.8
4.9	Subd. 12.Intervention for College Attendance 
Program Grants
 		496,000
		496,000
	
4.10 	No more than $50,000 of this appropriation 
4.11 	each year may be used for administrative 
4.12 	expenses for the program under Minnesota 
4.13 	Statutes, section 136A.861. 

4.14
4.15	Subd. 13.Achieve Success and Persistence 
through Innovative Rigorous Education
 		2,000,000
		2,000,000
	
4.16 	(a) Of this amount, $1,000,000 is for 
4.17 	transfer to the University of Minnesota and 
4.18 	$1,000,000 is for transfer to the Minnesota 
4.19 	State Colleges and Universities to provide 
4.20 	courses under Minnesota Statutes, section 
4.21 	124D.09, subdivision 10, to high school 
4.22 	students living in remote and underserved 
4.23 	areas where the school district lacks the 
4.24 	resources to provide academically rigorous 
4.25 	educational opportunities, such as Advanced 
4.26 	Placement and International Baccalaureate 
4.27 	programs. Courses may be delivered by 
4.28 	a high school or postsecondary faculty 
4.29 	member, online, or through distance 
4.30 	education. Students who successfully 
4.31 	complete a course must receive college 
4.32 	credit at no cost to the student. The office 
4.33 	must report to the committees of the 
4.34 	legislature with responsibility for higher 
5.1 	education finance by January 15, 2009, on the 
5.2 	program outcomes with recommendations on 
5.3 	continuing and expanding the program.
5.4 	(b) Of this amount, $2,000,000 is to increase 
5.5 	Intervention for College Attendance Program 
5.6 	(ICAP) grants under Minnesota Statutes, 
5.7 	section 136A.861. In addition to other 
5.8 	grants, at least two grants must be awarded 
5.9 	to applicants that include a scholarship 
5.10 	component to the project for which they are 
5.11 	seeking funding. The scholarships must be 
5.12 	awarded to individuals who are participating 
5.13 	in ICAP and successfully completed a 
5.14 	sequence of rigorous courses as identified 
5.15 	by the school district the student attended. 
5.16 	Money for the scholarship component of the 
5.17 	project must be raised from private funds.

5.18	Subd. 14.Other Programs
 		1,199,000
		899,000
	
5.19 	This appropriation includes funding for 
5.20 	student and parent information and the get 
5.21 	ready outreach program.
5.22 	$240,000 each year is for grants to increase 
5.23 	campus-community collaboration and service 
5.24 	learning statewide, including operations of 
5.25 	the Minnesota campus compact, grants to 
5.26 	member institutions and grants for member 
5.27 	institution initiatives. For every $1 in state 
5.28 	funding, grant recipients must contribute $2 
5.29 	in campus or community-based support.
5.30 	$250,000 in the first year is for a grant to 
5.31 	Augsburg College for the purpose of its 
5.32 	Step UP program to provide educational 
5.33 	opportunities to chemically dependent 
5.34 	students and to work with other public 
5.35 	and private colleges in Minnesota to help 
6.1 	replicate this program. This is a onetime 
6.2 	appropriation.
6.3 	$100,000 each year must be transferred to 
6.4 	the Loan Repayment Assistance Program, 
6.5 	Inc., for loan repayment assistance awards 
6.6 	to attorneys who enter public interest law to 
6.7 	ensure that low-income and disadvantaged 
6.8 	populations have access to competent legal 
6.9 	counsel.
6.10 	$50,000 in fiscal year 2008 is for the 
6.11 	Washington Center for Internships and 
6.12 	Academic Seminars for a pilot program 
6.13 	for scholarships for students enrolling in a 
6.14 	Minnesota four-year college or university 
6.15 	beginning in the fall semester of 2007. 
6.16 	The appropriation shall be available only 
6.17 	on a dollar-for-dollar match basis for 
6.18 	funds received from nonstate sources. 
6.19 	The Washington Center for Internships 
6.20 	and Academic Seminars must work with 
6.21 	Minnesota Colleges and Universities to 
6.22 	ensure that the scholarships will go to 
6.23 	economically disadvantaged Minnesota 
6.24 	students, students with demonstrated need of 
6.25 	financial assistance, and students traditionally 
6.26 	underrepresented in higher education, and 
6.27 	will work to ensure racial, ethnic, and gender 
6.28 	diversity, as well as urban/rural balance. This 
6.29 	is a onetime appropriation.
6.30 	$250,000 each year is for the teacher 
6.31 	education and compensation helps (TEACH) 
6.32 	and the Minnesota early childhood teacher 
6.33 	programs in Minnesota Statutes, section 
6.34 	136A.126.

6.35
6.36	Subd. 15.United Family Medicine Residency 
Program
 		414,000
		431,000
	
7.1 	For a grant to the United Family Medicine 
7.2 	residency program. This appropriation 
7.3 	shall be used to support up to 18 resident 
7.4 	physicians each year in family practice at 
7.5 	United Family Medicine residency programs 
7.6 	and shall prepare doctors to practice family 
7.7 	care medicine in underserved rural and 
7.8 	urban areas of the state. It is intended that 
7.9 	this program will improve health care in 
7.10 	underserved communities, provide affordable 
7.11 	access to appropriate medical care, and 
7.12 	manage the treatment of patients in a more 
7.13 	cost-effective manner. The funding base for 
7.14 	this program is $448,000 in fiscal year 2010 
7.15 	and $467,000 in fiscal year 2011.

7.16	Subd. 16.Agency Administration
 		2,710,000
		2,771,000

7.17	Subd. 17.Balances Forward
 					
7.18 	A balance in the first year under this section 
7.19 	does not cancel, but is available for the 
7.20 	second year.

7.21	Subd. 18.Transfers
 					
7.22 	The Minnesota Office of Higher Education 
7.23 	may transfer unencumbered balances from 
7.24 	the appropriations in this section to the state 
7.25 	grant appropriation, the interstate tuition 
7.26 	reciprocity appropriation, the child care 
7.27 	grant appropriation, the state work study 
7.28 	appropriation, the public safety officers' 
7.29 	survivors appropriation, and the Minnesota 
7.30 	college savings plan appropriation. Transfers 
7.31 	from the child care or state work study 
7.32 	appropriations may only be made to the 
7.33 	extent there is a projected surplus in the 
7.34 	appropriation. A transfer may be made 
7.35 	only with the prior written approval of the 
8.1 	commissioner of finance and prior written 
8.2 	notice to the chairs of the senate and house 
8.3 	committees with jurisdiction over higher 
8.4 	education finance.

8.5
8.6
8.7	Sec. 4. BOARD OF TRUSTEES OF THE 
MINNESOTA STATE COLLEGES AND 
UNIVERSITIES

8.8	Subdivision 1. Total Appropriation
 	$
	660,914,000
	$
	694,228,000
	
8.9 	The amounts that may be spent for each 
8.10 	purpose are specified in the following 
8.11 	subdivisions.

8.12	Subd. 2.General Appropriation
 		660,914,000
		694,228,000
	
8.13 	This appropriation includes a permanent 
8.14 	increase in each year for Cook County 
8.15 	Higher Education to provide educational 
8.16 	programs and academic support services to 
8.17 	remote regions in northeastern Minnesota. 
8.18 	Cook County Higher Education must 
8.19 	continue to provide information to the Board 
8.20 	of Trustees of the Minnesota State Colleges 
8.21 	and Universities on the number of students 
8.22 	served, credit hours delivered, and services 
8.23 	provided to students.
8.24 	This appropriation includes funding 
8.25 	for operation and maintenance of the 
8.26 	system, including technology infrastructure 
8.27 	improvements to deliver more online 
8.28 	programs and services to students; and 
8.29 	funding for initiatives to recruit and retain 
8.30 	students traditionally underrepresented in 
8.31 	higher education to help prepare students 
8.32 	for college, encourage their enrollment, and 
8.33 	provide services that enable them to continue 
8.34 	successfully to graduation.
9.1 	If the Board of Trustees decides to implement 
9.2 	other "Strategic Advancements" initiatives, 
9.3 	funding must be from internal reallocation of 
9.4 	existing resources or enhanced productivity. 
9.5 	It is the expectation of the legislature that the 
9.6 	board will hold tuition increases to no more 
9.7 	than four percent per year for fiscal years 
9.8 	2008 and 2009.
9.9 	This appropriation includes funding to 
9.10 	eliminate nonresident undergraduate 
9.11 	tuition at Saint Paul College, Minneapolis 
9.12 	Community and Technical College, 
9.13 	Rochester Community and Technical 
9.14 	College, Inver Hills Community College, St. 
9.15 	Cloud Technical College, and Normandale 
9.16 	Community College. In addition, the Board 
9.17 	of Trustees must not implement a nonresident 
9.18 	undergraduate tuition rate at a community 
9.19 	college, technical college, or consolidated 
9.20 	community and technical college that does 
9.21 	not have such a rate as of May 1, 2007, except 
9.22 	for a student who is a resident of a state that 
9.23 	has entered into a reciprocity agreement 
9.24 	under Minnesota Statutes, section 136A.08.
9.25 	This appropriation includes funding 
9.26 	to identify and improve on practices 
9.27 	for selecting and purchasing textbooks 
9.28 	and course materials that are used by 
9.29 	students. The board, in collaboration with 
9.30 	the Minnesota State University Student 
9.31 	Association (MSUSA) and the Minnesota 
9.32 	State College Student Association (MSCSA) 
9.33 	must develop and implement pilot projects 
9.34 	with this appropriation to address the 
9.35 	financial burden that textbook prices and 
9.36 	requirements place on students. These 
10.1 	projects may include textbook rental 
10.2 	programs, cooperative purchasing efforts, 
10.3 	training, and education and awareness 
10.4 	programs for students and faculty on cost 
10.5 	considerations and textbook options. The 
10.6 	student associations must be fully involved in 
10.7 	the development and implementation of any 
10.8 	project using this appropriation. The board 
10.9 	must report, with input from MSUSA and 
10.10 	MSCSA, to the committees of the legislature 
10.11 	responsible for higher education finance by 
10.12 	February 15, 2009, on the success of the pilot 
10.13 	projects. This money is available until June 
10.14 	30, 2009.
10.15 	This appropriation includes funding for 
10.16 	community-based energy development 
10.17 	pilot projects at Mesabi Range Technical 
10.18 	and Community College, the Minnesota 
10.19 	West Community and Technical College, 
10.20 	Riverland Community College, and Inver 
10.21 	Hills Community College. Inver Hills 
10.22 	Community College must partner with 
10.23 	the city of Inver Grove Heights on a 
10.24 	community-based pilot project and each 
10.25 	of the other campuses must establish 
10.26 	partnerships for community-based energy 
10.27 	development pilot projects that involve 
10.28 	students and faculty. An allocation for the 
10.29 	pilot project is available to the participating 
10.30 	institutions and the partnerships for the 
10.31 	biennium ending June 30, 2009. 
10.32 	This appropriation includes funding for a 
10.33 	modular clean-room research and training 
10.34 	facility at St. Paul College. This is a onetime 
10.35 	appropriation and is available until expended.
11.1 	This appropriation includes funding for a 
11.2 	pilot project with the Northeast Minnesota 
11.3 	Higher Education District and high schools 
11.4 	in its area. Up to one-half of the first year's 
11.5 	appropriation may be used to purchase 
11.6 	equipment that is necessary to reestablish 
11.7 	a technical education curriculum in the 
11.8 	area high schools to provide the students 
11.9 	with the technical skills necessary for the 
11.10 	workforce. Students from area high schools 
11.11 	may also access the facilities and faculty of 
11.12 	the Northeast Minnesota Higher Education 
11.13 	District for state-of-the-art technical 
11.14 	education opportunities, including MnSCU's 
11.15 	2+2 Pathways initiative.
11.16 	This appropriation includes funding for St. 
11.17 	Paul College to collaborate with the United 
11.18 	Auto Workers Local 879 to purchase a Ford 
11.19 	Ranger pickup truck to retrofit to run on a 
11.20 	battery-powered motor. This vehicle must 
11.21 	be retrofitted to serve as a prototype that 
11.22 	could be mass-produced at the St. Paul 
11.23 	Ford assembly plant. This is a onetime 
11.24 	appropriation.
11.25 	This appropriation includes funding for a 
11.26 	grant to a Minnesota public postsecondary 
11.27 	institution with a total student enrollment 
11.28 	under 7,000 students, that has an existing 
11.29 	women's hockey team competing in 
11.30 	Division I in the Western Collegiate Hockey 
11.31 	Association. The institution may use the 
11.32 	grant for equipment, facility improvements, 
11.33 	travel and compensation for coaches, 
11.34 	trainers, and other necessary personnel. This 
11.35 	is a onetime appropriation.
12.1 	This appropriation includes funding for a 
12.2 	study of student demand and employer needs 
12.3 	for higher education in the Mesabi Range 
12.4 	region of northeastern Minnesota including 
12.5 	the cities of Grand Rapids through Eveleth 
12.6 	to Ely. The board must contract for the 
12.7 	study which must be done in cooperation 
12.8 	with the Board of Regents of the University 
12.9 	of Minnesota, the University of Minnesota, 
12.10 	Duluth, and the Range Association of 
12.11 	Municipalities and Schools, which must act 
12.12 	as the lead agency in coordinating the study. 
12.13 	The study must specify how the identified 
12.14 	regional educational needs can be met by the 
12.15 	University of Minnesota, by the Minnesota 
12.16 	State Colleges and Universities, or through 
12.17 	degree programs offered jointly. The final 
12.18 	report must be submitted to the committees 
12.19 	of the legislature responsible for higher 
12.20 	education finance by January 15, 2008, with 
12.21 	recommendations and plans for the region.
12.22 	This appropriation includes funding for a 
12.23 	project to establish a center at the Mesabi 
12.24 	Range Community and Technical College in 
12.25 	cooperation with the Iron Range Resources 
12.26 	and Rehabilitation Board (IRRRB) to 
12.27 	enhance the use of eFolio Minnesota by 
12.28 	providing on-site and Internet-based support 
12.29 	and technical assistance to eFolio users to 
12.30 	promote workforce development and access 
12.31 	to workforce information generated through 
12.32 	the eFolio Minnesota system. The board 
12.33 	must enhance the eFolio Minnesota system 
12.34 	as necessary to serve these purposes and 
12.35 	report annually to the legislative committees 
13.1 	responsible for higher education finance on 
13.2 	the outcomes of the center's activities.
13.3 	Any amounts in the base budget allocated 
13.4 	to pay competitive compensation under 
13.5 	Laws 2005, chapter 107, article 1, section 3, 
13.6 	subdivision 2, must be used only to recruit or 
13.7 	retain quality faculty.

13.8	Subd. 4.Board Policies
 					
13.9 	(a) The board must adopt a policy that allows 
13.10 	students to add the cost of textbooks and 
13.11 	required course materials purchased at a 
13.12 	campus bookstore, owned by or operated 
13.13 	under a contract with the campus, to the 
13.14 	existing waivers or payment plans for tuition 
13.15 	and fees.
13.16 	(b) By January 1, 2009, the board must adopt 
13.17 	a policy setting the maximum number of 
13.18 	semester credits required for a baccalaureate 
13.19 	degree at 120 semester credits or the 
13.20 	equivalent and the number of semester 
13.21 	credits required for an associate degree at 
13.22 	60 semester credits or the equivalent. The 
13.23 	board policy may provide for a process 
13.24 	for granting waivers for specific degree 
13.25 	programs in which industry or professional 
13.26 	accreditation standards require a greater 
13.27 	number of semester credits.

13.28
13.29	Sec. 5. BOARD OF REGENTS OF THE 
UNIVERSITY OF MINNESOTA

13.30	Subdivision 1.Total Appropriation
 	$
	706,736,000
	$
	713,466,000

13.31	Appropriations by Fund
	
13.32		2008
	2009
	
13.33	General
	704,579,000
	711,309,000
	
13.34	Health Care Access
	2,157,000
	2,157,000
	
14.1 	The amounts that may be spent for each 
14.2 	purpose are specified in the following 
14.3 	subdivisions.

14.4	Subd. 2.Operations and Maintenance
 		613,191,000
		645,921,000
	
14.5 	This appropriation includes funding for 
14.6 	operation and maintenance of the system 
14.7 	including amounts to advance the University 
14.8 	of Minnesota's efforts to sustain quality 
14.9 	and competitiveness; and funding for the 
14.10 	"Advancing Education" initiatives including 
14.11 	an Ojibwe Indian language program on the 
14.12 	Duluth campus.
14.13 	This appropriation includes funding to 
14.14 	establish banded tuition at the Morris, 
14.15 	Crookston, and Duluth campuses to reduce 
14.16 	tuition costs for students.
14.17 	This appropriation includes funding for 
14.18 	scholarships for undergraduate Minnesota 
14.19 	resident students with family income under 
14.20 	$150,000 per year. This appropriation must 
14.21 	be matched with $1.50 of nonstate money for 
14.22 	each $1 of state money.
14.23 	This appropriation includes funding for the 
14.24 	Center for Transportation Studies to complete 
14.25 	a study to assess public policy options for 
14.26 	reducing the volume of greenhouse gases 
14.27 	emitted from the transportation sector in 
14.28 	Minnesota. The Center for Transportation 
14.29 	Studies must report its preliminary findings 
14.30 	to the legislature by February 1, 2008, and 
14.31 	must issue its full report by June 1, 2008. 
14.32 	This is a onetime appropriation.
14.33 	This appropriation includes funding to 
14.34 	establish an India Center to improve and 
14.35 	promote relations with India and Southeast 
15.1 	Asia. The center must partner with public 
15.2 	and private organizations in Minnesota to: 
15.3 	(1) foster an understanding of the history, 
15.4 	culture, and values of India;
15.5 	(2) serve as a resource and catalyst to 
15.6 	promote economic, governmental, and 
15.7 	academic pursuits involving India; and
15.8 	(3) facilitate educational and business 
15.9 	exchanges and partnerships, collaborative 
15.10 	research, and teaching and training activities 
15.11 	for Minnesota students and teachers.
15.12 	The Board of Regents may establish an 
15.13 	advisory council to facilitate the mission 
15.14 	and objectives of the India Center and must 
15.15 	report on the progress of the India Center 
15.16 	by February 15, 2008, to the governor 
15.17 	and chairs of the legislative committees 
15.18 	responsible for higher education finance. 
15.19 	This appropriation must be matched by an 
15.20 	equal amount of nonstate money. This is a 
15.21 	onetime appropriation.
15.22 	This appropriation includes funding to assist 
15.23 	in the formation of the neighborhood alliance 
15.24 	and for projects identified in section 10. The 
15.25 	alliance, the Board of Regents, and the city of 
15.26 	Minneapolis may cooperate on the projects 
15.27 	and may use public services of other entities 
15.28 	to complete all or a portion of a project. This 
15.29 	is a onetime appropriation.
15.30 	This appropriation includes funding to 
15.31 	establish a Dakota language teacher training 
15.32 	immersion program on the Twin Cities 
15.33 	campus to prepare teachers to teach in 
15.34 	Dakota language immersion programs.

16.1	Subd. 3.Primary Care Education Initiatives
 		2,157,000
		2,157,000
	
16.2 	This appropriation is from the health care 
16.3 	access fund.

16.4	Subd. 4.Special Appropriations

16.5	(a) Agriculture and Extension Service
		53,175,000
		52,175,000
	
16.6 	(1) For the Agricultural Experiment 
16.7 	Station, Minnesota Extension Service. This 
16.8 	appropriation includes additional funding 
16.9 	to promote alternative livestock research 
16.10 	and outreach, and for an ongoing organic 
16.11 	research and education program.
16.12 	(2) This appropriation includes funding 
16.13 	for research efforts that demonstrate a 
16.14 	renewed emphasis on the needs of the state's 
16.15 	production agriculture community and a 
16.16 	continued focus on renewable energy derived 
16.17 	from Minnesota biomass resources including 
16.18 	agronomic crops, plant and animal wastes, 
16.19 	and native plants or trees, with priority for 
16.20 	extending the Minnesota vegetable growing 
16.21 	season; fertilizer and soil fertility research 
16.22 	and development; treating and curing human 
16.23 	diseases utilizing plant and livestock cells; 
16.24 	using biofuel production coproducts as 
16.25 	feed for livestock; and a rapid agricultural 
16.26 	response fund for current or emerging 
16.27 	animal, plant, and insect problems affecting 
16.28 	production or food safety. In addition, the 
16.29 	appropriation may be used to secure a facility 
16.30 	and retain current faculty levels for poultry 
16.31 	research currently conducted at UMore Park.
16.32 	(3) In the area of renewable energy, priority 
16.33 	should be given to projects pertaining to: 
16.34 	biofuel and other energy production from 
17.1 	small grains; alternative bioenergy crops and 
17.2 	cropping systems; and growing, harvesting, 
17.3 	and transporting biomass plant material.
17.4 	(4) This appropriation includes funding for 
17.5 	the college of food, agricultural, and natural 
17.6 	resources sciences to establish and maintain 
17.7 	a statewide organic research and education 
17.8 	initiative to provide leadership for organic 
17.9 	agronomic, horticultural, livestock, and food 
17.10 	systems research, education, and outreach 
17.11 	and for the purchase of state-of-the-art 
17.12 	laboratory, planting, tilling, harvesting, and 
17.13 	processing equipment necessary for this 
17.14 	project.
17.15 	(5) By February 1, 2009, the Board 
17.16 	of Regents must report to the legislative 
17.17 	committees with responsibility for agriculture 
17.18 	and higher education finance on the research 
17.19 	and initiatives under this paragraph.
17.20 	(6) The base appropriation is $52,175,000 
17.21 	each year of the biennium ending June 30, 
17.22 	2011.
17.23 	(7) The Board of Regents of the University 
17.24 	of Minnesota is requested to refrain from 
17.25 	implementing corresponding reductions in 
17.26 	funding for the purposes for which additional 
17.27 	funding is provided.

17.28	(b) Health Sciences
		5,275,000
		5,275,000
	
17.29 	$346,000 each year is to support up to 12 
17.30 	resident physicians each year in the St. 
17.31 	Cloud Hospital family practice residency 
17.32 	program. The program must prepare doctors 
17.33 	to practice primary care medicine in the rural 
17.34 	areas of the state. The legislature intends 
17.35 	this program to improve health care in rural 
18.1 	communities, provide affordable access to 
18.2 	appropriate medical care, and manage the 
18.3 	treatment of patients in a more cost-effective 
18.4 	manner.
18.5 	The remainder of this appropriation is for 
18.6 	the rural physicians associates program, the 
18.7 	Veterinary Diagnostic Laboratory, health 
18.8 	sciences research, dental care, and the 
18.9 	Biomedical Engineering Center.

18.10	(c) Institute of Technology
		1,387,000
		1,387,000
	
18.11 	For the Geological Survey and the talented 
18.12 	youth mathematics program.

18.13	(d) System Specials
		6,551,000
		6,551,000
	
18.14 	For general research, student loans matching 
18.15 	money, industrial relations education, Natural 
18.16 	Resources Research Institute, Center for 
18.17 	Urban and Regional Affairs, Bell Museum of 
18.18 	Natural History, and the Humphrey exhibit.
18.19 	This appropriation includes additional 
18.20 	funding each year for industrial relations 
18.21 	education. The Board of Regents of the 
18.22 	University of Minnesota is requested to 
18.23 	refrain from implementing corresponding 
18.24 	reductions in funding for this purpose.

18.25
18.26	Subd. 5.University of Minnesota and Mayo 
Foundation Partnership
 		25,000,000
		-0-
	
18.27 	For the direct and indirect expenses of the 
18.28 	collaborative research partnership between 
18.29 	the University of Minnesota and the Mayo 
18.30 	Foundation for research in biotechnology 
18.31 	and medical genomics. For fiscal years 2010 
18.32 	and 2011, the base shall be $8,000,000 in 
18.33 	each year. This appropriation is available 
18.34 	until expended. An annual report on the 
19.1 	expenditure of these funds must be submitted 
19.2 	to the governor and the chairs of the senate 
19.3 	and house committees responsible for higher 
19.4 	education and economic development by 
19.5 	June 30 of each fiscal year.

19.6	Subd. 6.Academic Health Center
 					
19.7 	The appropriation for Academic Health 
19.8 	Center funding under Minnesota Statutes, 
19.9 	section 297F.10, is $22,250,000 each year.

19.10	Sec. 6. MAYO CLINIC

19.11	Subdivision 1.Total Appropriation
 	$
	1,202,000
	$
	1,250,000
	
19.12 	The amounts that may be spent for each 
19.13 	purpose are specified in the following 
19.14 	subdivisions.

19.15	Subd. 2.Medical School
 		591,000
		615,000
	
19.16 	The state of Minnesota must pay a capitation 
19.17 	each year for each student who is a resident 
19.18 	of Minnesota. The appropriation may be 
19.19 	transferred between years of the biennium to 
19.20 	accommodate enrollment fluctuations. The 
19.21 	funding base for this program is $640,000 in 
19.22 	fiscal year 2010 and $665,000 in fiscal year 
19.23 	2011.
19.24 	It is intended that during the biennium the 
19.25 	Mayo Clinic use the capitation money to 
19.26 	increase the number of doctors practicing in 
19.27 	rural areas in need of doctors.

19.28
19.29	Subd. 3.Family Practice and Graduate 
Residency Program
 		611,000
		635,000
	
19.30 	The state of Minnesota must pay stipend 
19.31 	support for up to 27 residents each year. The 
19.32 	funding base for this program is $660,000 in 
20.1 	fiscal year 2010 and $686,000 in fiscal year 
20.2 	2011.

20.3
20.4	Sec. 7. DEPARTMENT OF VETERANS 
AFFAIRS.
 	$
	5,000,000
	$
	5,000,000
	
20.5 	For grants to eligible veterans or the eligible 
20.6 	spouses and children of veterans as provided 
20.7 	under Minnesota Statutes, section 197.791. 
20.8 	If the appropriation in this subdivision for 
20.9 	either year is insufficient, the appropriation 
20.10 	for the other year is available for it.
20.11 	Of this appropriation, no more than three 
20.12 	percent each year may be used for the 
20.13 	administrative costs of operating this 
20.14 	program.

20.15 	Sec. 8. FINANCIAL AID PROGRAM STUDIES.
 20.16 		Subdivision 1.State grant. The Minnesota Office of Higher Education must 
20.17 	conduct an analysis and evaluation of the state grant program to provide information 
20.18 	to the legislature concerning the role of the program in promoting affordable access to 
20.19 	higher education in Minnesota, including promoting access for students traditionally 
20.20 	underrepresented in higher education. The analysis and evaluation must include:
20.21 	(1) evaluation of the assigned student share compared to the current and future 
20.22 	income of a student, and analysis of the number of hours a student must work to meet the 
20.23 	assigned student share without borrowing;
20.24 	(2) evaluation of the assigned family contribution, how it is determined under the 
20.25 	federal needs analysis, and how it compares to expectations of families in other public 
20.26 	programs;
20.27 	(3) analysis of the ways that students and families pay the assigned student share and 
20.28 	the assigned family contribution;
20.29 	(4) analysis of the recognized cost of attendance compared to actual attendance 
20.30 	costs and the ability of individuals and families at various income levels in Minnesota to 
20.31 	pay the cost of attendance;
20.32 	(5) analysis of the actual living and miscellaneous expenses of students, with 
20.33 	particular attention to differences between traditional and nontraditional students, and 
20.34 	comparison to the amount currently used in the state grant formula; and
21.1 	(6) analysis of other parameters of the program considered relevant by the office, 
21.2 	including prorating the state grant amount instead of the budget for the cost of attendance 
21.3 	and changing the definition of full-time enrollment.
21.4 	Whenever possible, the analysis must include:
21.5 	(i) cost estimates and information on how recommended changes affect students at 
21.6 	various income levels and at different higher education institutions in Minnesota; and
21.7 	(ii) the distributional effects, by income quintile, of state grant program parameters 
21.8 	on students and families.
21.9 	The office also shall assess the feasibility of expanding the eligibility for state grants to 
21.10 	include graduate and first professional students pursuing degree programs deemed to be 
21.11 	important to the workforce needs of the state. By February 15, 2008, the Minnesota 
21.12 	Office of Higher Education must report its preliminary findings and recommendations to 
21.13 	the committees in the house of representatives and senate with primary jurisdiction over 
21.14 	higher education policy and finance and workforce development on options to enhance 
21.15 	the targeting of financial aid to state grant recipients, with the final report submitted by 
21.16 	October 1, 2008.
21.17 		Subd. 2.Workforce needs. The Minnesota Office of Higher Education must 
21.18 	examine existing financial aid programs that provide loans and grants to students, and the 
21.19 	needs of the workforce for occupations that are currently in demand or are projected to 
21.20 	be in demand in the future and:
21.21 	(1) evaluate how effective the financial aid programs are in linking the needs of the 
21.22 	workforce with the student's financial aid needs;
21.23 	(2) identify financial aid program options, including loan forgiveness and loan 
21.24 	repayment programs, that provide incentives to students to pursue degrees in occupations:
21.25 	(i) with identified unmet workforce needs like speech pathologists; and
21.26 	(ii) of social or economic importance to the state; and
21.27 	(3) identify mechanisms, such as additional resources, to promote the growth of 
21.28 	occupations of social or economic importance to the state. By February 15, 2008, the office 
21.29 	must report its preliminary findings to the legislative committees with primary jurisdiction 
21.30 	over higher education policy and finance and workforce development, and provide options 
21.31 	and recommendations on ways to enhance the delivery of financial aid to meet the needs of 
21.32 	both students and the state's workforce, with the final report submitted by October 1, 2008.

21.33 	Sec. 9. POSTSECONDARY EDUCATION PARTICIPATION STUDY.
 21.34 	The Minnesota Office of Higher Education shall, by January 15, 2008, report to the 
21.35 	house and senate committees with jurisdiction over higher education policy and finance 
22.1 	on participation in postsecondary education by income, and persistence and graduation 
22.2 	rates of state grant recipients compared to students who did not receive state grants. The 
22.3 	Minnesota Office of Higher Education is authorized to match individual student data from 
22.4 	the student record enrollment database with individual student data from the state grant 
22.5 	database on data elements necessary to perform the study.

22.6 	Sec. 10. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 
22.7 	NEIGHBORHOOD ALLIANCE.
 22.8 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms 
22.9 	have the meanings given them.
22.10 	(b) "Alliance" means a representative body of the constituencies, including, but 
22.11 	not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 
22.12 	neighborhood organizations and business associations referenced in the report.
22.13 	(c) "Board" means the Board of Regents of the University of Minnesota.
22.14 	(d) "Report" means the report and appendix entitled Moving Forward Together: 
22.15 	University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 
22.16 	the legislature in February 2007.
22.17 	(e) "University partnership district" or "district" means the area located within the 
22.18 	city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 
22.19 	Como, Prospect Park, and University, as they are defined by the city, and the university's 
22.20 	Minneapolis campus.
22.21 	(f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 
22.22 	house significant numbers of university students and staff. Transportation and housing 
22.23 	policy analysis and planning must include these areas but they must not be included in 
22.24 	the projects funded through the alliance.
22.25 	(g) "University" means the University of Minnesota.
22.26 		Subd. 2.Alliance; functions. The alliance may facilitate, initiate, or manage 
22.27 	projects with the board, city, or other public or private entities that are intended to 
22.28 	maintain the university partnership district as a viable place to study, research, and live. 
22.29 	Projects may include, but are not limited to, those outlined in the report, as well as 
22.30 	efforts to involve students in activities to maintain and improve the university partnership 
22.31 	district; cooperative university and university partnership district long-term planning; and 
22.32 	incentives to increase homeownership within the district with particular emphasis on 
22.33 	employees of the university and of other major employers located within the district.
22.34 		Subd. 3.Report. The board must report to the legislature by January 15, 2009, on 
22.35 	the expenditure of funds appropriated under section 3.

23.1 	ARTICLE 2
23.2 	RELATED HIGHER EDUCATION

23.3 	Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:
23.4 		Subd. 3.Minnesota Office of Higher Education. (a) General. Data sharing 
23.5 	involving the Minnesota Office of Higher Education and other institutions is governed 
23.6 	by sections section136A.05 and 136A.08, subdivision 8. 
23.7 	(b) Student financial aid. Data collected and used by the Minnesota Office of 
23.8 	Higher Education on applicants for financial assistance are classified under section 
23.9 	136A.162. 
23.10 	(c) Minnesota college savings plan data. Account owner data, account data, and 
23.11 	data on beneficiaries of accounts under the Minnesota college savings plan are classified 
23.12 	under section 136G.05, subdivision 10. 
23.13 	(d) School financial records. Financial records submitted by schools registering 
23.14 	with the Minnesota Office of Higher Education are classified under section 136A.64. 
23.15 	(e) Enrollment and financial aid data. Data collected from eligible institutions on 
23.16 	student enrollment and federal and state financial aid are governed by sections 136A.121, 
23.17 	subdivision 18, and 136A.1701, subdivision 11.

23.18 	Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 
23.19 	to read:
23.20 		Subd. 4.Construction management education surcharge and account. (a) 
23.21 	For nonresidential construction building permits, the surcharge under subdivision 1 
23.22 	is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 
23.23 	whichever amount is greater, and designated for and deposited in the construction 
23.24 	management education account.
23.25 	(b) The construction management education account is created as an account in the 
23.26 	special revenue fund, administered by the Minnesota Office of Higher Education for 
23.27 	the purpose of enhancing construction management education in public postsecondary 
23.28 	institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the 
23.29 	director of the Minnesota Office of Higher Education for the purposes of section 136A.127.

23.30 	Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:
23.31 		Subdivision 1.Establishment; membership. (a) The Minnesota Agriculture 
23.32 	Education Leadership Council is established. The council is composed of 16 17 members 
23.33 	as follows:
24.1 	(1) the chair of the University of Minnesota agricultural education program;
24.2 	(2) a representative of the commissioner of education;
24.3 	(3) a representative of the Minnesota State Colleges and Universities recommended 
24.4 	by the chancellor;
24.5 	(4) the president and the president-elect of the Minnesota Association of Agriculture 
24.6 	Educators;
24.7 	(5) a representative of the Future Farmers of America Foundation;
24.8 	(6) a representative of the commissioner of agriculture;
24.9 	(7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 
24.10 	University of Minnesota;
24.11 	(8) a representative of the Minnesota Private Colleges Council;
24.12 	(9) two members representing agriculture education and agriculture business 
24.13 	appointed by the governor;
24.14 	(9) (10) the chair of the senate Committee on Agriculture, General Legislation 
24.15 	and Veterans Affairs;
24.16 	(10) (11) the chair of the house Committee on Agriculture;
24.17 	(11) (12) the ranking minority member of the senate Committee on Agriculture, 
24.18 	General Legislation and Veterans Affairs, and a member of the senate Education 
24.19 	Committee designated by the Subcommittee on Committees of the Committee on Rules 
24.20 	and Administration; and
24.21 	(12) (13) the ranking minority member of the house Agriculture Committee, and a 
24.22 	member of the house Education Committee designated by the speaker.
24.23 	(b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 
24.24 	(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement 
24.25 	member representing the same constituency.

24.26 	Sec. 4. Minnesota Statutes 2006, section 135A.01, is amended to read:
24.27 	135A.01 FUNDING POLICY.
24.28 	It is the policy of the legislature to provide stable funding, including recognition of 
24.29 	the effects of inflation, for instructional services at public postsecondary institutions and 
24.30 	that the state and students share the cost of those services public postsecondary education. 
24.31 	The legislature intends to provide at least 67 percent of the instructional services costs 
24.32 	for each postsecondary system combined revenue from tuition, the university fee at the 
24.33 	University of Minnesota, and state general fund appropriations to public postsecondary 
24.34 	institutions. It is also the policy of the legislature that the budgetary process serves to 
24.35 	support high quality public postsecondary education.

25.1 	Sec. 5. [135A.011] STATE HIGHER EDUCATION OBJECTIVES.
25.2 		Subdivision 1.Statewide objectives. Minnesota's higher education investment 
25.3 	is made in pursuit of the following objectives: (1) to ensure quality by providing a 
25.4 	level of excellence that is competitive on a national and international level, through 
25.5 	high quality teaching, scholarship, and learning in a broad range of arts and sciences, 
25.6 	technical education, and professional fields; (2) to foster student success by enabling 
25.7 	and encouraging students to choose institutions and programs that are best suited for 
25.8 	their talents and abilities, and to provide an educational climate that supports students 
25.9 	in pursuing their goals and aspirations; (3) to promote democratic values and enhance 
25.10 	Minnesota's quality of life by developing understanding and appreciation of a free and 
25.11 	diverse society; (4) to maintain access by providing an opportunity for all Minnesotans, 
25.12 	regardless of personal circumstances, to participate in higher education; and (5) to enhance 
25.13 	the economy by assisting the state in being competitive in the world market, and to prepare 
25.14 	a highly skilled and adaptable workforce that meets Minnesota's opportunities and needs.

25.15 	Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 1, is amended to read:
25.16 		Subdivision 1.Determination of appropriation. The direct appropriation to each 
25.17 	board for instructional services shall equal 67 percent of the estimated total cost of 
25.18 	instructionappropriations for the University of Minnesota, the state universities, and the 
25.19 	community colleges, and, for technical colleges, at least 67 percent of the estimated total 
25.20 	cost of instruction and the Minnesota State Colleges and Universities are determined 
25.21 	by considering the biennial budget documents submitted under section 135A.034, 
25.22 	performance in advancing the objectives under section 135A.011, available resources 
25.23 	according to the state budget forecast, the relative balance between state support for 
25.24 	students and public postsecondary institutions, and other factors the legislature considers 
25.25 	important in determining the level of state appropriations for public postsecondary 
25.26 	education.

25.27 	Sec. 7. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:
25.28 		Subd. 7.Reports. (a) Instructional and noninstructional expenditure data and 
25.29 	enrollment data for each instructional category shall be submitted in the biennial budget 
25.30 	document must be submitted in the biennial budget document under section 135A.034. 
25.31 	This report must include a description of the methodology for determining instructional 
25.32 	and noninstructional expenditures and estimates of inflation in higher education and the 
25.33 	methodology or index used to determine the inflation rate.
26.1 	(b) By February 1 of each even-numbered year, the Board of Regents of the 
26.2 	University of Minnesota and the Board of Trustees of the Minnesota State Colleges 
26.3 	and Universities must submit a report to the chairs of the legislative committees with 
26.4 	jurisdiction over higher education policy and finance. The report must describe the 
26.5 	following:
26.6 	(1) how state appropriations made to the system in the previous odd-numbered year 
26.7 	were allocated and the methodology used to determine the allocation;
26.8 	(2) data describing how the institution reallocated resources to advance the priorities 
26.9 	set forth in the budget submitted under section 135A.034 and the statewide objectives 
26.10 	under section 135A.011. The information must indicate whether instruction and support 
26.11 	programs received a reduction in or additional resources. The total amount reallocated 
26.12 	must be clearly explained;
26.13 	(3) the tuition rates and fees established by the governing board in each of the past 
26.14 	ten years and comparison data for peer institutions and national averages;
26.15 	(4) data on the number and proportion of students graduating within four, five, 
26.16 	and six years from universities and within three years from colleges as reported in the 
26.17 	integrated postsecondary education data system. These data must be provided for each 
26.18 	institution by race, ethnicity, and gender. Data and information must be submitted that 
26.19 	describe the system's plan and progress toward attaining the goals set forth in the plan 
26.20 	to increase the number and proportion of students that graduate within four, five, or six 
26.21 	years from a university or within three years from a college;
26.22 	(5) data on, and the methodology used to measure, the number of students 
26.23 	traditionally underrepresented in higher education enrolled at the system's institutions. 
26.24 	Data and information must be submitted that describe the system's plan and progress 
26.25 	toward attaining the goals set forth in the plan to increase the recruitment, retention, and 
26.26 	timely graduation of students traditionally underrepresented in higher education; and
26.27 	(6) data on the revenue received from all sources to support research or workforce 
26.28 	development activities or the system's efforts to license, sell, or otherwise market products, 
26.29 	ideas, technology, and related inventions created in whole or in part by the system. Data 
26.30 	and information must be submitted that describe the system's plan and progress toward 
26.31 	attaining the goals set forth in the plan to increase the revenue received to support research 
26.32 	or workforce development activities or revenue received from the licensing, sale, or other 
26.33 	marketing and technology transfer activities by the system.
26.34 	(c) Instructional expenditure and enrollment data shall be submitted by the public 
26.35 	postsecondary systems to the Minnesota Office of Higher Education and the Department of 
26.36 	Finance and included in the biennial budget document. The specific data shall be submitted 
27.1 	only after the director of the Minnesota Office of Higher Education has consulted with a 
27.2 	data advisory task force to determine the need, content, and detail of the information.

27.3 	Sec. 8. Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read:
27.4 		Subdivision 1.Operating budget. The governing boards of the University of 
27.5 	Minnesota, and the Minnesota State Colleges and Universities shall each develop, for 
27.6 	legislative and executive branch acceptance, its highest budget priorities in accordance 
27.7 	with statewide objectives for higher education under section 135A.011. It is the intent 
27.8 	of the legislature to appropriate at least 67 percent of the total cost of instruction after 
27.9 	adjusting for inflation and enrollment changes. However, in the event of a budget shortfall, 
27.10 	or if funding of inflation is not possible, available funding shall first be applied to the 
27.11 	agreed upon budget priorities.

27.12 	Sec. 9. [135A.135] PERSONAL FINANCIAL MANAGEMENT.
27.13 	During initial student registration, each technical college, community college, or 
27.14 	state university shall, and the University of Minnesota is requested to, provide each 
27.15 	student information on personal financial management. Students should understand and 
27.16 	be able to manage personal finances including, but not limited to, the responsible use of 
27.17 	consumer credit. This requirement may be waived for a student who enrolls in a college 
27.18 	course providing similar instruction.

27.19 	Sec. 10. [135A.145] SALE OF STUDENT INFORMATION; MARKETING 
27.20 	CREDIT CARDS TO STUDENTS.
27.21 		Subdivision 1.Prohibited practices. No public or private postsecondary 
27.22 	educational institution, including its agents, employees, student or alumni organizations, 
27.23 	or affiliates, may:
27.24 	(1) sell, give, or otherwise transfer to any card issuer the name, address, telephone 
27.25 	number, or other contact information of an undergraduate student at the postsecondary 
27.26 	educational institution without the student's consent; or 
27.27 	(2) enter into any agreement to market credit cards to undergraduate students at 
27.28 	a postsecondary educational institution.
27.29 	 For purposes of this section, the terms "credit," "credit card," and "card issuer" 
27.30 	have the meanings given them in the Truth in Lending Act, United States Code, title 15, 
27.31 	section 1602.
27.32 		Subd. 2.Violations. The attorney general may seek the penalties and remedies 
27.33 	available under section 8.31 against any person who violates this section.

28.1 	EFFECTIVE DATE. This section is effective July 1, 2007, except that it applies to 
28.2 	existing agreements to market credit cards upon the later of the expiration of the original 
28.3 	term of the agreement or the expiration of an extension of the original agreement if the 
28.4 	extension is in effect on July 1, 2007.

28.5 	Sec. 11. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.
28.6 		Subdivision 1.Short title. This section may be cited as the Textbook Disclosure, 
28.7 	Pricing, and Access Act.
28.8 		Subd. 2.Course material disclosures required. (a) Beginning January 1, 2009, 
28.9 	any publisher that sells or distributes course material for classroom use in a postsecondary 
28.10 	institution must make the following available in an easily accessible manner to faculty, 
28.11 	bookstores, and postsecondary institutions in Minnesota: 
28.12 	(1) the title, edition, author, and International Standard Book Number (ISBN) or 
28.13 	other easily identifiable information for all course materials; 
28.14 	(2) the undiscounted price at which the course materials are available to a bookstore; 
28.15 	(3) the formats, including bundled and unbundled, in which those course materials 
28.16 	are offered and the undiscounted prices of the various components, both sold separately or 
28.17 	packaged together;
28.18 	(4) a summary of revisions between current and previous editions of course 
28.19 	materials; and
28.20 	(5) the return policy for course material, including any penalties or conditions for 
28.21 	returns.
28.22 	(b) Any publisher that sells or distributes course material for classroom use in a 
28.23 	postsecondary institution must make all bundled course material available to bookstores 
28.24 	and postsecondary institutions in an unbundled form, or must provide notice if unbundled 
28.25 	material is not available. 
28.26 	(c) Disclosure under this section is not required for mass market and trade books that 
28.27 	are not published, marketed, or sold primarily for classroom use in or by postsecondary 
28.28 	institutions.
28.29 	(d) Nothing in this section shall be construed to limit any existing academic freedom 
28.30 	or rights of faculty members to determine the most appropriate course material for the 
28.31 	courses they teach.
28.32 		Subd. 3.Educational strategies. Public postsecondary institutions must develop 
28.33 	educational materials considering the recommendations in studies by the Minnesota Office 
28.34 	of Higher Education and others and at least annually convene and sponsor meetings 
28.35 	and workshops, and provide educational strategies for faculty, students, administrators, 
29.1 	institutions, and bookstores to inform all interested parties on strategies for reducing the 
29.2 	costs of course materials for students attending postsecondary institutions. 
29.3 		Subd. 4.Minnesota Office of Higher Education responsibilities. (a) For private 
29.4 	postsecondary institutions, the Minnesota Office of Higher Education must develop 
29.5 	educational materials considering the recommendations by the Minnesota Office of Higher 
29.6 	Education and others and at least annually convene and sponsor meetings and workshops 
29.7 	and provide educational strategies for faculty, students, administrators, institutions, and 
29.8 	bookstores to inform all interested parties on strategies for reducing the costs of course 
29.9 	materials for students attending postsecondary institutions.
29.10 	(b) The Minnesota Office of Higher Education must identify methods to compile and 
29.11 	distribute information on entities that sell or distribute course material for classroom use 
29.12 	in postsecondary institutions in a manner that meets the requirements and complies with 
29.13 	subdivision 2. The Minnesota Office of Higher Education must also evaluate ways to make 
29.14 	this information available for use by students and faculty in postsecondary institutions.
29.15 		Subd. 5.Bookstores; course materials. The University of Minnesota and private 
29.16 	colleges are encouraged to comply with the requirements for instructors and bookstores 
29.17 	under section 136F.58, subdivision 2.

29.18 	Sec. 12. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:
29.19 		Subd. 2.Senior citizen. "Senior citizen" means a person who has reached 62 years 
29.20 	of age before the beginning of any term, semester or quarter, in which a course of study 
29.21 	is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 
29.22 	of age before the beginning of the term.

29.23 	Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:
29.24 		Subdivision 1.Fees and tuition. Except for an administration fee established by the 
29.25 	governing board at a level to recover costs, to be collected only when a course is taken for 
29.26 	credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 
29.27 	of tuition or activity fees to attend courses offered for credit, audit any courses offered 
29.28 	for credit, or enroll in any noncredit courses in any state supported institution of higher 
29.29 	education in Minnesota when space is available after all tuition-paying students have been 
29.30 	accommodated. A senior citizen enrolled under this section must pay any materials, 
29.31 	personal property, or service charges for the course. In addition, a senior citizen who is 
29.32 	enrolled in a course for credit must pay an administrative fee in an amount established 
29.33 	by the governing board of the institution to recover the course costs. There shall be no 
29.34 	administrative fee charges to a senior citizen auditing a course. For the purposes of this 
30.1 	section and section 135A.51, the term "noncredit courses" shall not include those courses 
30.2 	designed and offered specifically and exclusively for senior citizens.
30.3 	The provisions of this section and section 135A.51 do not apply to noncredit courses 
30.4 	designed and offered by the University of Minnesota, and the Minnesota State Colleges 
30.5 	and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 
30.6 	under the provisions of this section and section 135A.51 shall not be included by such 
30.7 	institutions in their computation of full-time equivalent students when requesting staff 
30.8 	or appropriations.

30.9 	Sec. 14. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:
30.10 		Subd. 2.Term; income of senior citizens. (a) Except under paragraph (b), there 
30.11 	shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 
30.12 	courses, nor income limitation imposed in determining eligibility.
30.13 	(b) A senior citizen enrolled in a closed enrollment contract training or professional 
30.14 	continuing education program is not eligible for benefits under subdivision 1.

30.15 	Sec. 15. [136A.002] DEFINITIONS.
30.16 		Subdivision 1.Scope. For purposes of this chapter, the terms defined in this section 
30.17 	have the meanings given them.
30.18 		Subd. 2.Office of Higher Education or office. "Office of Higher Education" or 
30.19 	"office" means the Minnesota Office of Higher Education.

30.20 	Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:
30.21 		Subd. 5.Expiration. Notwithstanding section 15.059, subdivision 5, the advisory 
30.22 	groups established in this section do not expire on June 30, 2007.

30.23 	Sec. 17. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:
30.24 		Subd. 7.Reporting. The Minnesota Office of Higher Education must annually, 
30.25 	before the last day in January, submit a report to the committees in the house of 
30.26 	representatives and the senate with responsibility for higher education finance on:
30.27 	(1) participation in the tuition reciprocity program by Minnesota students and 
30.28 	students from other states attending Minnesota postsecondary institutions under a 
30.29 	reciprocity agreement;
30.30 	(2) reciprocity and resident tuition rates at each institution; and
30.31 	(3) interstate payments and obligations for each state participating in the tuition 
30.32 	reciprocity program in the prior year.; and
31.1 	(4) summary statistics on number of graduates by institution, degree granted, and 
31.2 	year of graduation for reciprocity students who attended Minnesota postsecondary 
31.3 	institutions.

31.4 	Sec. 18. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:
31.5 		Subd. 4.Eligible institution. "Eligible institution" means a postsecondary 
31.6 	educational institution located in this state or in a state with which the office has entered 
31.7 	into a higher education reciprocity agreement on state student aid programs that either (1) 
31.8 	is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 
31.9 	operated publicly or privately and, as determined by the office, meets all of the following: 
31.10 	(i) maintains academic standards substantially equivalent to those of comparable 
31.11 	institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 
31.12 	by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 
31.13 	Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.

31.14 	Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to 
31.15 	read:
31.16 		Subd. 5a.Assigned family responsibility. "Assigned family responsibility" means 
31.17 	the amount of a family family's contribution to a student's cost of attendance, as determined 
31.18 	by a federal need analysis. For dependent students, the assigned family responsibility is 
31.19 	95 percent of the parental contribution. For independent students with dependents other 
31.20 	than a spouse, the assigned family responsibility is 85 percent of the student contribution. 
31.21 	For independent students without dependents other than a spouse, the assigned family 
31.22 	responsibility is 72 67 percent of the student contribution. The assigned family 
31.23 	responsibility for all other independent students is 90 percent of the student contribution.

31.24 	Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:
31.25 		Subd. 5.Grant stipends. The grant stipend shall be based on a sharing of 
31.26 	responsibility for covering the recognized cost of attendance by the applicant, the 
31.27 	applicant's family, and the government. The amount of a financial stipend must not 
31.28 	exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 
31.29 	deducting the following:
31.30 	(1) the assigned student responsibility of at least 4645.5 percent of the cost of 
31.31 	attending the institution of the applicant's choosing;
31.32 	(2) the assigned family responsibility as defined in section 136A.101; and 
31.33 	(3) the amount of a federal Pell grant award for which the grant applicant is eligible.
32.1 	The minimum financial stipend is $100 per academic year.

32.2 	Sec. 21. Minnesota Statutes 2006, section 136A.121, subdivision 7a, is amended to 
32.3 	read:
32.4 		Subd. 7a.Surplus appropriation. If the amount appropriated is determined by the 
32.5 	office to be more than sufficient to fund projected grant demand in the second year of the 
32.6 	biennium, the office may increase the living and miscellaneous expense allowance in the 
32.7 	second year of the biennium by up to an amount that retains sufficient appropriations 
32.8 	to fund the projected grant demand. The adjustment may be made one or more times. 
32.9 	In making the determination that there are more than sufficient funds, the office shall 
32.10 	balance the need for sufficient resources to meet the projected demand for grants with the 
32.11 	goal of fully allocating the appropriation for state grants. An increase in the living and 
32.12 	miscellaneous expense allowance under this subdivision does not carry forward into a 
32.13 	subsequent biennium. This subdivision expires June 30, 20072009.

32.14 	Sec. 22. Minnesota Statutes 2006, section 136A.121, is amended by adding a 
32.15 	subdivision to read:
32.16 		Subd. 19.Reporting. By November 1 and February 15, the Office of Higher 
32.17 	Education must provide updated state grant spending projections taking into account 
32.18 	the most current and projected enrollment and tuition and fee information, economic 
32.19 	conditions, and other relevant factors. Before submitting state grant spending projections, 
32.20 	the Office of Higher Education must meet and consult with representatives of public and 
32.21 	private postsecondary institutions, the Department of Finance, the Governor's Office, 
32.22 	legislative staff, and financial aid administrators.

32.23 	Sec. 23. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:
32.24 		Subd. 2.Eligible students. (a) An applicant is eligible for a child care grant if 
32.25 	the applicant:
32.26 	(1) is a resident of the state of Minnesota;
32.27 	(2) has a child 12 years of age or younger, or 14 years of age or younger who is 
32.28 	disabled as defined in section 125A.02, and who is receiving or will receive care on a 
32.29 	regular basis from a licensed or legal, nonlicensed caregiver;
32.30 	(3) is income eligible as determined by the office's policies and rules, but is not a 
32.31 	recipient of assistance from the Minnesota family investment program;
32.32 	(4) has not earned a baccalaureate degree and has been enrolled full time less than 
32.33 	eight semesters or the equivalent;
33.1 	(5) is pursuing a nonsectarian program or course of study that applies to an 
33.2 	undergraduate degree, diploma, or certificate;
33.3 	(6) is enrolled at least half time in an eligible institution; and
33.4 	(7) is in good academic standing and making satisfactory academic progress.
33.5 	(b) A student who withdraws from enrollment for active military service is entitled 
33.6 	to an additional semester or the equivalent of grant eligibility and will be considered to be 
33.7 	in continuing enrollment status upon return.

33.8 	Sec. 24. Minnesota Statutes 2006, section 136A.125, subdivision 4, is amended to read:
33.9 		Subd. 4.Amount and length of grants. The amount of a child care grant must be 
33.10 	based on:
33.11 	(1) the income of the applicant and the applicant's spouse;
33.12 	(2) the number in the applicant's family, as defined by the office; and
33.13 	(3) the number of eligible children in the applicant's family.
33.14 	The maximum award to the applicant shall be $2,300$2,600 for each eligible child 
33.15 	per academic year, except that the campus financial aid officer may apply to the office for 
33.16 	approval to increase grants by up to ten percent to compensate for higher market charges 
33.17 	for infant care in a community. The office shall develop policies to determine community 
33.18 	market costs and review institutional requests for compensatory grant increases to ensure 
33.19 	need and equal treatment. The office shall prepare a chart to show the amount of a grant 
33.20 	that will be awarded per child based on the factors in this subdivision. The chart shall 
33.21 	include a range of income and family size.

33.22 	Sec. 25. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 
33.23 	MINNESOTA EARLY CHILDHOOD TEACHER EDUCATION INCENTIVE 
33.24 	PROGRAMS.
33.25 		Subdivision 1.TEACH. The teacher education and compensation helps program 
33.26 	(TEACH) is established to provide tuition scholarships and education incentives to early 
33.27 	care and education providers. The director shall make a grant with appropriations for this 
33.28 	purpose to a nonprofit organization licensed to administer the TEACH early childhood 
33.29 	program.
33.30 		Subd. 2.Program components. (a) The nonprofit organization must use the 
33.31 	grant for:
33.32 	(1) tuition scholarships up to $5,000 per year for courses leading to the nationally 
33.33 	recognized child development associate credential or college-level courses leading to an 
33.34 	associate's or bachelor's degree in early childhood development and school-age care; and 
34.1 	(2) education incentives of a minimum of $100 to participants in the tuition 
34.2 	scholarship program if they complete a year of working in the early care and education 
34.3 	field.
34.4 	(b) Applicants for the scholarship must be employed by a licensed early childhood 
34.5 	or child care program and working directly with children, a licensed family child care 
34.6 	provider, or an employee in a school-age program exempt from licensing under section 
34.7 	245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 
34.8 	awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 
34.9 	the total scholarship and must be sponsored by their employers, who must also contribute 
34.10 	ten percent of the total scholarship. Scholarship recipients who are self-employed must 
34.11 	contribute 20 percent of the total scholarship. 
34.12 		Subd. 3.Advisory committee. The TEACH early childhood and Minnesota early 
34.13 	childhood teacher education incentive programs may have an advisory board as prescribed 
34.14 	by the national TEACH organization.

34.15 	Sec. 26. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 
34.16 	PROGRAM.
34.17 		Subdivision 1.Construction Management Education Account Advisory 
34.18 	Committee. The director must establish an advisory committee for the construction 
34.19 	management education account. Members of the committee must include: the executive 
34.20 	vice-president of the Minnesota Mechanical Contractors Association or designee, a 
34.21 	chapter manager of one of the Minnesota chapters of the National Electrical Contractors 
34.22 	Association or designee, the executive director of the Associated General Contractors of 
34.23 	Minnesota or designee, two members of the nonresidential construction industry, and 
34.24 	two construction management program coordinators or directors from an accredited 
34.25 	construction management program or a program in candidacy status for accreditation in 
34.26 	the Minnesota State Colleges and Universities and the University of Minnesota. Members 
34.27 	serve three-year terms. Advisory committee members are reimbursed for expenses related 
34.28 	to committee activities. The director may accept funds from federal, state, or local public 
34.29 	agencies, or from private foundations or individuals for deposit into the construction 
34.30 	management education account under section 16B.70. All money in the account must 
34.31 	be used for the purposes of this section.
34.32 		Subd. 2.Grants. The director must make grants from the construction management 
34.33 	education account to maintain and increase the quality and availability of education 
34.34 	programs for the construction industry for purposes that include but are not limited to 
34.35 	maintaining and upgrading facilities, and providing greater industry access to modern 
35.1 	construction standards and management practices. In making grants, the director, in 
35.2 	consultation with the committee, must consider the following:
35.3 	(1) the qualifications of any program applying for a grant;
35.4 	(2) applications for American Council for Construction Education accreditation and, 
35.5 	when funds are available, award grants to complete the accreditation process;
35.6 	(3) promotion of close ties between technical and community colleges and four-year 
35.7 	construction management programs; and 
35.8 	(4) support of the development of new educational programs with specific emphasis 
35.9 	on outreach to the construction industry at large.
35.10 		Subd. 3.Grant awards. (a) An eligible program at the Minnesota State Colleges 
35.11 	and Universities or the University of Minnesota may apply for a grant. The director may 
35.12 	award grants to eligible programs to support construction management education and 
35.13 	continuing education, and to promote outreach in the construction industry.
35.14 	(b) An eligible program must have one of the following:
35.15 	(1) a bachelor of science construction management degree accredited by the 
35.16 	American Council for Construction Education;
35.17 	(2) a degree with an American Council for Construction Education accredited 
35.18 	option, including, but not limited to, engineering technology and industrial technology;
35.19 	(3) a bachelor of science degree program documenting placement of more than 50 
35.20 	percent of its graduates with Minnesota nonresidential contractors; and
35.21 	(4) the development of a construction management curriculum to meet the American 
35.22 	Council for Construction Education criteria.
35.23 	(c) Grant awards must be based on:
35.24 	(1) the number of program graduates;
35.25 	(2) the number of graduates placed with Minnesota nonresidential contractors during 
35.26 	the past academic year;
35.27 	(3) plans to be accredited by the American Council for Construction Education 
35.28 	for two years, which may be renewed if the institution is continuing progress towards 
35.29 	accreditation;
35.30 	(4) faculty recruitment and development in construction management programs, 
35.31 	including support for postgraduate work leading to advanced degrees, visiting lecturer 
35.32 	compensation and expenses, teaching assistant positions, and faculty positions; and
35.33 	(5) support for general classroom and laboratory operating expenses. 
35.34 	Grants may only be awarded from the construction management education account 
35.35 	to the extent that funds are available. No other state funding may be provided for these 
35.36 	grants.
36.1 		Subd. 4.Reports. (a) The director must annually report to the committees of the 
36.2 	legislature responsible for higher education finance by January 15. The report must 
36.3 	include the public postsecondary educational institutions that received grants, grant 
36.4 	amounts and purposes, the number of students served, and the number of placements 
36.5 	made to the construction industry.
36.6 	(b) Grant recipients must report to the office on the amount of all past grants 
36.7 	awarded from the construction management education account and the uses of those 
36.8 	funds. The report must be submitted with a request for a new or continuing grant and 
36.9 	include information required by the office.
36.10 		Subd. 5.Administration. Up to $15,000 per year from the construction 
36.11 	management education account may be used for the administration of this program.

36.12 	Sec. 27. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:
36.13 		Subdivision 1.Scope. For purposes of sections 136A.15 to 136A.1702, the terms 
36.14 	defined in this section have the meanings ascribed togiven them. 

36.15 	Sec. 28. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:
36.16 		Subd. 6.Eligible institution. "Eligible institution" means a postsecondary 
36.17 	educational institution that either (1) is operated or regulated by this state, or the Board of 
36.18 	Regents of the University of Minnesota; (2) is operated publicly or privately in another 
36.19 	state, is approved by the United States Secretary of Education, and, as determined by 
36.20 	the office, maintains academic standards substantially equal to those of comparable 
36.21 	institutions operated in this state; (3) is licensed or registered as a postsecondary institution 
36.22 	by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 
36.23 	Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 
36.24 	also includes any institution chartered in a province.

36.25 	Sec. 29. Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:
36.26 		Subd. 8.Investment. Money made available to the office that is not immediately 
36.27 	needed for the purposes of sections 136A.15 to 136A.1702 may be invested by the office. 
36.28 	The money must be invested in bonds, certificates of indebtedness, and other fixed income 
36.29 	securities, except preferred stocks, which are legal investments for the permanent school 
36.30 	fund. The money may also be invested in prime quality commercial paper that is eligible 
36.31 	for investment in the state employees retirement fund. All interest and profits from such 
36.32 	investments inure to the benefit of the office or may be pledged for security of bonds 
37.1 	issued by the office or its predecessor, the Minnesota Higher Education Coordinating 
37.2 	Board predecessors. 

37.3 	Sec. 30. Minnesota Statutes 2006, section 136A.16, is amended by adding a 
37.4 	subdivision to read:
37.5 		Subd. 16.Interest rate swaps and other agreements. (a) The office may enter into 
37.6 	interest rate exchange or swap agreements, hedges, forward purchase or sale agreements, 
37.7 	or other comparable interest rate protection agreements with a third party in connection 
37.8 	with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing 
37.9 	comparable interest rate protection agreements.
37.10 	(b) The agreements authorized by this subdivision include without limitation master 
37.11 	agreements, options, or contracts to enter into those agreements in the future and related 
37.12 	agreements, including, without limitation, agreements to provide credit enhancement, 
37.13 	liquidity, or remarketing.
37.14 	(c) The agreements authorized by this subdivision may be entered into on the basis 
37.15 	of negotiation with a qualified third party or through a competitive proposal process on 
37.16 	terms and conditions as and with covenants and provisions approved by the office and 
37.17 	may include, without limitation:
37.18 	(1) provisions establishing reserves;
37.19 	(2) pledging assets or revenues of the office for current or other payments or 
37.20 	termination payments;
37.21 	(3) contracting with the other parties to the agreements to provide for the custody, 
37.22 	collection, securement, investment, and payment of money of the office or money held 
37.23 	in trust; or
37.24 	(4) requiring the issuance of bonds or other agreements authorized by this section 
37.25 	in the future.
37.26 	(d) With respect to bonds or notes outstanding or proposed to be issued bearing 
37.27 	interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate 
37.28 	or at a different variable rate determined in accordance with a formula set out in the 
37.29 	agreement on an amount not exceeding the outstanding principal amount of the bonds or 
37.30 	notes at the time of payment in exchange for an agreement by the third party to pay sums 
37.31 	equal to interest on a like amount at a variable rate determined according to a formula 
37.32 	set out in the agreement.
37.33 	(e) With respect to bonds or notes outstanding or proposed to be issued bearing 
37.34 	interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a 
37.35 	variable rate determined in accordance with a formula set out in the agreement on an 
38.1 	amount not exceeding the outstanding principal amount of the bonds or notes at the time of 
38.2 	payment in exchange for an agreement by the third party to pay sums equal to interest on a 
38.3 	like amount at a fixed rate or rates determined according to a formula set in the agreement.
38.4 	(f) Subject to any applicable covenants of the office, payments required to be made 
38.5 	by the office under the agreement, including termination payments, may be made from 
38.6 	amounts pledged or available to pay debt service on the bonds or notes with respect to 
38.7 	which the agreement was made or from assets of the loan capital fund of the office. 
38.8 	The office may issue bonds or notes to provide for any payments, including, without 
38.9 	limitation, a termination payment due or to become due under an agreement authorized 
38.10 	under this section.
38.11 	(g) The authority of the office to enter into interest rate protection agreements under 
38.12 	this section is limited to agreements related to bonds and notes with an aggregate value of 
38.13 	no more than $20,000,000.

38.14 	Sec. 31. Minnesota Statutes 2006, section 136A.1702, is amended to read:
38.15 	136A.1702 COMMISSION APPROVAL LEGISLATIVE OVERSIGHT.
38.16 	The office shall obtain approval fromnotify the Legislative Advisory Commission
38.17 	chairs of the legislative committees with primary jurisdiction over higher education 
38.18 	finance of any proposed material change to any of its student loan programs prior to 
38.19 	taking the following actions with regard to student loan programs described in Laws 
38.20 	1983, chapter 258:
38.21 	(1) implementing a loan program for parents and students eligible for auxiliary loans 
38.22 	as defined in section 136A.15, subdivision 7;
38.23 	(2) acquiring student loans from other lenders to facilitate student loan programs 
38.24 	provided for in section 136A.17; and
38.25 	(3) providing for programs of supplemental and additional loans as defined in section 
38.26 	136A.1701 making the change. 

38.27 	Sec. 32. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:
38.28 		Subd. 3.Payments. Work-study payments shall be made to eligible students by 
38.29 	postsecondary institutions as provided in this subdivision.
38.30 	(a) Students shall be selected for participation in the program by the postsecondary 
38.31 	institution on the basis of student financial need.
38.32 	(b) In selecting students for participation, priority must be given to students enrolled 
38.33 	for at least 12 credits. In each academic year, a student may be awarded work-study 
39.1 	payments for one period of nonenrollment or less than half-time enrollment if the student 
39.2 	will enroll on at least a half-time basis during the following academic term.
39.3 	(c) Students will be paid for hours actually worked and the maximum hourly rate 
39.4 	of pay shall not exceed the maximum hourly rate of pay permitted under the federal 
39.5 	college work-study program.
39.6 	(d) Minimum pay rates will be determined by an applicable federal or state law.
39.7 	(e) The office shall annually establish a minimum percentage rate of student 
39.8 	compensation to be paid by an eligible employer.
39.9 	(f) Each postsecondary institution receiving money for state work-study grants 
39.10 	shall make a reasonable effort to place work-study students in employment with eligible 
39.11 	employers outside the institution. However, a public employer other than the institution 
39.12 	may not terminate, lay off, or reduce the working hours of a permanent employee for the 
39.13 	purpose of hiring a work-study student, or replace a permanent employee who is on layoff 
39.14 	from the same or substantially the same job by hiring a work-study student.
39.15 	(g) The percent of the institution's work-study allocation provided to graduate 
39.16 	students shall not exceed the percent of graduate student enrollment at the participating 
39.17 	institution.
39.18 	(h) An institution may use up to 30 percent of its allocation for student internships 
39.19 	with private, for-profit employers.

39.20 	Sec. 33. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:
39.21 		Subd. 9.Revenue bonds; limit. The authority is authorized and empowered 
39.22 	to issue revenue bonds whose aggregate principal amount at any time shall not exceed 
39.23 	$800,000,000$950,000,000 and to issue notes, bond anticipation notes, and revenue 
39.24 	refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, 
39.25 	to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 
39.26 	renovating, improving, furnishing, or equipping one or more projects or parts thereof. 

39.27 	Sec. 34. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:
39.28 		Subdivision 1.Grants. The director of the Minnesota Office of Higher Education 
39.29 	shall award grants to foster postsecondary attendance and retention by providing outreach 
39.30 	services to historically underserved students in grades six through 12 and historically 
39.31 	underrepresented college students. Grants must be awarded to programs that provide 
39.32 	precollege services, including, but not limited to:
39.33 	(1) academic counseling;
39.34 	(2) mentoring;
40.1 	(3) fostering and improving parental involvement in planning for and facilitating a 
40.2 	college education;
40.3 	(4) services for students with English as a second language;
40.4 	(5) academic enrichment activities;
40.5 	(6) tutoring;
40.6 	(7) career awareness and exploration;
40.7 	(8) orientation to college life;
40.8 	(9) assistance with high school course selection and information about college 
40.9 	admission requirements; and
40.10 	(10) financial aid counseling.
40.11 	Grants shall be awarded to postsecondary institutions, professional organizations, 
40.12 	community-based organizations, or others deemed appropriate by the director.
40.13 	Grants shall be awarded for one year and may be renewed for a second year with 
40.14 	documentation to the Minnesota Office of Higher Education of successful program 
40.15 	outcomes.

40.16 	Sec. 35. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:
40.17 		Subd. 2.Eligible students. Eligible students include students in grades six through 
40.18 	12 who meet one or more of the following criteria:
40.19 	(1) are counted under section 1124(c) of the Elementary and Secondary Education 
40.20 	Act of 1965 (Title I);
40.21 	(2) are eligible for free or reduced-price lunch under the National School Lunch Act;
40.22 	(3) receive assistance under the Temporary Assistance for Needy Families Law (Title 
40.23 	I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or
40.24 	(4) are a member of a group traditionally underrepresented in higher education.
40.25 	Eligible undergraduate students include those who met the student eligibility criteria 
40.26 	as 6th through 12th graders.

40.27 	Sec. 36. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:
40.28 		Subd. 3.Application process. The director of the Minnesota Office of Higher 
40.29 	Education shall develop a grant application process. The director shall attempt to support 
40.30 	projects in a manner that ensures that eligible students throughout the state have access 
40.31 	to precollegeprogram services.
40.32 	The grant application must include, at a minimum, the following information:
40.33 	(1) a description of the characteristics of the students to be served reflective of the 
40.34 	need for services listed in subdivision 1;
41.1 	(2) a description of the services to be provided and a timeline for implementation of 
41.2 	the activities;
41.3 	(3) a description of how the services provided will foster postsecondary attendance
41.4 	and support postsecondary retention;
41.5 	(4) a description of how the services will be evaluated to determine whether the 
41.6 	program goals were met; and
41.7 	(5) other information as identified by the director.
41.8 	Grant recipients must specify both program and student outcome goals, and performance 
41.9 	measures for each goal.

41.10 	Sec. 37. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:
41.11 		Subd. 6.Program evaluation. Each grant recipient must annually submit a report 
41.12 	to the Minnesota Office of Higher Education delineating its program and student outcome 
41.13 	goals, and activities implemented to achieve the stated outcomes. The goals must be 
41.14 	clearly stated and measurable. Grant recipients are required to collect, analyze, and report 
41.15 	on participation and outcome data that enable the office to verify that the program goals 
41.16 	were met. The office shall maintain:
41.17 	(1) information about successful precollege program and undergraduate student 
41.18 	retention program activities for dissemination to individuals throughout the state interested 
41.19 	in adopting or replicating successful program practices; and
41.20 	(2) data on the success of the funded projects in increasing the high school 
41.21 	graduation and, college participation, and college graduation rates of students served 
41.22 	by the grant recipients. The office may convene meetings of the grant recipients, as 
41.23 	needed, to discuss issues pertaining to the implementation of precollege services and 
41.24 	undergraduate retention programs.

41.25 	Sec. 38. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:
41.26 		Subdivision 1.Membership. The board consists of 15 members appointed by the 
41.27 	governor with the advice and consent of the senate. At least one member of the board 
41.28 	must be a resident of each congressional district. In selecting appointees, the governor 
41.29 	must consider the needs of the Board of Trustees and the balance of the board membership 
41.30 	with respect to labor and business representation and racial, gender, geographic, and ethnic 
41.31 	composition. Three members must be students who are enrolled at least half time in a 
41.32 	degree, diploma, or certificate program or have graduated from an institution governed 
41.33 	by the board within one year of the date of appointment. The student members shall 
41.34 	include: one member from a community college, one member from a state university, 
42.1 	and one member from a technical college. Two members must be active members of 
42.2 	the largest organized labor organization in Minnesota and two members must be active 
42.3 	members of large business associations. The remaining members must be appointed to 
42.4 	represent the state at large.

42.5 	Sec. 39. Minnesota Statutes 2006, section 136F.03, subdivision 3, is amended to read:
42.6 		Subd. 3.Duties. (a) The advisory council shall:
42.7 	(1) develop a statement of the selection criteria to be applied and a description 
42.8 	of the responsibilities and duties of a member of the board and shall distribute this to 
42.9 	potential candidates; and
42.10 	(2) for each position on the board, identify and recruit qualified candidates for the 
42.11 	board, based on the background and experience of the candidates, and their potential for 
42.12 	discharging the responsibilities of a member of the board.
42.13 	(b) Selection criteria developed under this section must include the requirement that 
42.14 	trustees represent diversity in geography, gender, race, occupation, and experience.
42.15 	(c) Selection criteria developed under this section must also include the identification 
42.16 	of the membership needs of the board for individual skills relevant to the governance 
42.17 	of the Minnesota State Colleges and Universities and the needs for certain individual 
42.18 	characteristics that include geographic location, gender, race, occupation, and experience. 

42.19 	Sec. 40. Minnesota Statutes 2006, section 136F.03, subdivision 4, is amended to read:
42.20 		Subd. 4.Recommendations. Except for seats filled under sections 136F.04 and 
42.21 	136F.045, the advisory council shall recommend at least two and not more than four 
42.22 	candidates for each seat. By April 15 of each even-numbered year, the advisory council 
42.23 	shall submit its recommendations to the governor. The governor is not bound by these 
42.24 	recommendations.

42.25 	Sec. 41. [136F.045] LABOR AND BUSINESS MEMBER SELECTION.
42.26 	(a) The largest labor organization in Minnesota is responsible for recruiting, 
42.27 	screening, and recommending qualified candidates for the Board of Trustees. The 
42.28 	organization must develop a statement of selection criteria for board membership and a 
42.29 	process for recommending candidates. By April 15, 2008, and every six years thereafter, 
42.30 	the organization must recommend to the governor four candidates for the two labor 
42.31 	positions on the Board of Trustees. The governor must appoint two of the candidates 
42.32 	recommended under this paragraph to the board.
43.1 	(b) The large business associations in Minnesota are responsible for recruiting, 
43.2 	screening, and recommending qualified candidates for the Board of Trustees. The 
43.3 	associations must develop a joint statement of selection criteria for board membership 
43.4 	and a process for recommending candidates. By April 15, 2010, and every six years 
43.5 	thereafter, the associations must jointly recommend to the governor four candidates for the 
43.6 	two business positions on the Board of Trustees. The governor must appoint two of the 
43.7 	candidates recommended under this paragraph to the board.

43.8 	Sec. 42. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:
43.9 		Subdivision 1.Time reporting. As provided in Executive Order 96-2, the board, 
43.10 	in consultation with the commissioners of employee relations and finance, may develop 
43.11 	policies to allow system office or campus employees on salaries, as defined in section 
43.12 	43A.17, subdivision 1, to use negative time reporting in which employees report only that 
43.13 	time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 
43.14 	with the commissioners of employee relations and finance, shall evaluate the use of 
43.15 	negative time reporting and its potential for use with other state employees.

43.16 	Sec. 43. Minnesota Statutes 2006, section 136F.58, is amended to read:
43.17 	136F.58 BOOKSTORES; COURSE MATERIAL ACQUISITION.
43.18 		Subdivision 1.Authorization. A state college or university may operate a bookstore 
43.19 	in a state college or university building, or may allocate space in a state college or 
43.20 	university building and permit a person or corporation to operate a bookstore without rent 
43.21 	at the campus' pleasure and on such conditions as the board may impose. The board may 
43.22 	provide insurance, at no cost to the state, for the inventory of a bookstore a state college or 
43.23 	university conducts in its building.
43.24 		Subd. 2.Course material. (a) An instructor shall attempt to provide adequate 
43.25 	notice to a bookstore of the intention to order required or recommended course material 
43.26 	so that the bookstore can provide information for the instructor's consideration prior to 
43.27 	placing an order for the course material.
43.28 	(b) A bookstore must make reasonable efforts to obtain from publishers or other 
43.29 	sources, prior to the time an instructor requests the bookstore to order course material, 
43.30 	the following information, including, but not limited to:
43.31 	(1) the title, edition, author, and International Standard Book Number (ISBN) of 
43.32 	the course material;
43.33 	(2) the price for the course material;
44.1 	(3) whether the course material is bundled with optional material, whether it can be 
44.2 	unbundled, and the price for each bundled and unbundled component;
44.3 	(4) whether the material is available in an alternative format and the cost for the 
44.4 	alternatively formatted material;
44.5 	(5) the availability of the course material currently and in the future;
44.6 	(6) changes to the course material from the previous edition, the revision date, 
44.7 	availability, and cost for that edition, if available; and
44.8 	(7) any known plans for future revisions of the course material.
44.9 	(c) An instructor ordering course material through a bookstore shall consider the 
44.10 	information received from the bookstore prior to placing the final order.
44.11 		Subd. 3.Notice to purchase. (a) An instructor shall make reasonable efforts to 
44.12 	notify a bookstore of the final order for required and recommended course material at least 
44.13 	30 days prior to the commencement of the term.
44.14 	(b) The bookstore must make reasonable efforts to notify students of the following 
44.15 	information concerning the required and recommended course material at least 15 days 
44.16 	prior to the commencement of the term for which the course material is required including, 
44.17 	but not limited to:
44.18 	(1) the title, edition, author, and International Standard Book Number (ISBN) of 
44.19 	the course material;
44.20 	(2) the price for the course material;
44.21 	(3) whether the required course material is bundled with optional material, whether 
44.22 	it can be unbundled, and the price for each bundled and unbundled component; and
44.23 	(4) whether the material is available in an alternative format and the cost for the 
44.24 	alternatively formatted material.
44.25 		Subd. 4.System responsibility. The board shall, to the extent it considers 
44.26 	necessary, adopt uniform forms for bookstores to request information under subdivision 2. 
44.27 	The board shall encourage faculty to utilize the information received under subdivision 2 
44.28 	to achieve the lowest cost to students for course materials consistent with the academic 
44.29 	freedom and choice of the faculty member.

44.30 	Sec. 44. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:
44.31 		Subd. 2.Activity funds. All receipts attributable to the state colleges and 
44.32 	universities activity funds and deposited in the state treasury are appropriated to the board 
44.33 	and are not subject to budgetary control as exercised by the commissioner of finance.

45.1 	Sec. 45. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 
45.2 	to read:
45.3 		Subd. 4.Banking services. Notwithstanding section 16A.27, the board shall 
45.4 	have authority to control the amount and manner of deposit of all receipts described in 
45.5 	this section in depositories selected by the board. The board's authority shall include 
45.6 	specifying the considerations, financial activities, and conditions required from the 
45.7 	depository, including the requirement of collateral security or a corporate surety bond 
45.8 	as described in section 118A.03. The board may compensate the depository, including 
45.9 	paying a reasonable charge to the depository, maintaining appropriate compensating 
45.10 	balances with the depository, or purchasing non-interest-bearing certificates of deposit 
45.11 	from the depository for performing depository-related services.

45.12 	Sec. 46. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:
45.13 		Subd. 5.Amount of matching grant. The amount of the matching grant for a 
45.14 	beneficiary equals:
45.15 	(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 
45.16 	of the contributions made to the beneficiary's account during the calendar year, not to 
45.17 	exceed $300 $400; and
45.18 	(2) if the beneficiary's family income is more than $50,000 but not more than 
45.19 	$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 
45.20 	during the calendar year, not to exceed $300 $400.

45.21 	Sec. 47. Minnesota Statutes 2006, section 137.0246, is amended to read:
45.22 	137.0246 REGENT NOMINATION AND ELECTION.
45.23 		Subdivision 1.Governor nomination. By February 15 following the receipt 
45.24 	of recommendations from the advisory council, the governor must submit to the joint 
45.25 	committee established under subdivision 2 a slate of regent nominations that complies with 
45.26 	sections 137.023 and 137.024. The slate must name one nominee for each vacancy. In 
45.27 	selecting nominees, the governor must consider the needs of the Board of Regents and the 
45.28 	balance of the board membership with respect to gender, racial, and ethnic composition. 
45.29 	The governor must inform the joint committee how each candidate and the slate meet the 
45.30 	needs identified in the report under section 137.0245, subdivision 4, paragraph (b).
45.31 		Subd. 2.Regent nomination joint committee. (a) The joint legislative committee 
45.32 	consists of 20 legislator members. Ten members shall be appointed by the speaker of the 
45.33 	house. Ten members shall be appointed by the Subcommittee on Committees of the 
45.34 	Committee on Rules and Administration from the senate. An equal number of members 
46.1 	from the majority and minority party shall be appointed from each house. The members 
46.2 	appointed from the minority party must be appointed from among those recommended by 
46.3 	the minority leader. The chairs of the education policy committees andthe members of the 
46.4 	higher education budget and policy divisions and the ranking minority member of those 
46.5 	committees and divisions must be appointed in each house of the legislature. The chairs 
46.6 	of the divisions from each body shall be cochairs of the joint legislative committee. A 
46.7 	majority of the members from each house is a quorum of the joint committee.
46.8 	(b) By February 28 of each odd-numbered year, or at a date agreed to by concurrent 
46.9 	resolution, the joint legislative committee shall meet to consider the governor's nominees
46.10 	advisory council's recommendations for regent of the University of Minnesota for possible 
46.11 	presentation to a joint convention of the legislature.
46.12 	(c) The joint committee may only recommend to the joint convention nominees
46.13 	candidates recommended by the governor advisory council and the other candidates 
46.14 	nominated by the joint committee. If the joint committee does not recommend a 
46.15 	governor's nominee, the governor must submit a different nominee for the same vacancy.
46.16 	A candidate other than those recommended by the advisory council may be nominated 
46.17 	for consideration by the joint committee only if the nomination receives the support of at 
46.18 	least three house of representatives members of the committee and two senate members 
46.19 	of the committee. A candidate must receive a majority vote of members from the house 
46.20 	of representatives and from the senate on the joint committee to be recommended to the 
46.21 	joint convention. The joint committee may recommend no more than one candidate for 
46.22 	each vacancy. In recommending nominees, the joint committee must consider the needs of 
46.23 	the Board of Regents and the balance of the board membership with respect to gender, 
46.24 	racial, and ethnic composition.
46.25 	(d) The joint committee must meet twice, approximately one week apart. The first 
46.26 	meeting is for the purpose of interviewing candidates and recommending candidates for 
46.27 	the joint committee to consider. The second meeting is for the purpose of voting for 
46.28 	candidates for recommendation to the joint convention.

46.29 	Sec. 48. [137.0252] APPROPRIATION; CONTRACT BUYOUT.
46.30 	No appropriation from the state of Minnesota to the governing board of the 
46.31 	University of Minnesota shall be used directly or indirectly for costs related to the early 
46.32 	termination of a contract of a coach who reports to the director of athletics.

46.33 	Sec. 49. Minnesota Statutes 2006, section 197.775, subdivision 4, is amended to read:
47.1 		Subd. 4.Delayed payment of tuition. A state college or university may not assess 
47.2 	late fees or other late charges for veterans who are eligible to receive federal or state 
47.3 	educational assistance and who have applied for that assistance but not yet received it, 
47.4 	nor may they prevent these students from registering for a subsequent term because of 
47.5 	outstanding tuition charges that arise from delayed federal or state payments. The state 
47.6 	college or university may request without delay the amount of tuition above expected 
47.7 	federal  and state educational assistance and may require payment of the full amount of 
47.8 	tuition owed by the veteran within 30 days of receipt of the expected federal or state 
47.9 	educational assistance.

47.10 	Sec. 50. [197.791] MINNESOTA GI BILL PROGRAM.
47.11 		Subdivision 1.Definitions.  (a) The definitions in this subdivision apply to this 
47.12 	section. 
47.13 	(b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 
47.14 	specified.
47.15 	(c) "Cost of attendance" has the meaning given in section 136A.121, subdivision 
47.16 	6, multiplied by a factor of 1.1.
47.17 	(d) "Child" means a natural or adopted child of a person described in subdivision 4, 
47.18 	paragraph (a), clause (1), item (i) or (ii).
47.19 	(e) "Eligible institution" means a postsecondary institution under section 136A.101, 
47.20 	subdivision 4.
47.21 	(f) "Program" means the Minnesota GI Bill program established in this section, 
47.22 	unless otherwise specified.
47.23 	(g) "Time of hostilities" means any action by the armed forces of the United States 
47.24 	that is recognized by the issuance of a presidential proclamation or a presidential executive 
47.25 	order in which the armed forces expeditionary medal or other campaign service medals 
47.26 	are awarded according to presidential executive order, and any additional period or place 
47.27 	that the commissioner determines and designates, after consultation with the United States 
47.28 	Department of Defense, to be a period or place where the United States is in a conflict that 
47.29 	places persons at such a risk that service in a foreign country during that period or in that 
47.30 	place should be considered to be included.
47.31 	(h) "Veteran" has the meaning given in section 197.447. Veteran also includes 
47.32 	a service member who has received an honorable discharge after leaving each period of 
47.33 	federal active duty service and has: 
47.34 	(1) served 90 days or more of federal active duty in a foreign country during a time 
47.35 	of hostilities in that country; or
48.1 	(2) received a service-related medical discharge from any period of service in a 
48.2 	foreign country during a time of hostilities in that country.
48.3 	A service member who has fulfilled the requirements for being a veteran under this 
48.4 	paragraph but is still serving actively in the United States armed forces is also a veteran 
48.5 	for the purposes of this section.
48.6 		Subd. 2.Program established. The Minnesota GI Bill Program is established to 
48.7 	provide postsecondary educational assistance to eligible Minnesota veterans and to the 
48.8 	children and spouses of deceased and severely disabled Minnesota veterans.
48.9 	The commissioner, in cooperation with eligible postsecondary educational 
48.10 	institutions, shall administer the program for the purpose of providing postsecondary 
48.11 	educational assistance to eligible persons in accordance with this section. Each public 
48.12 	postsecondary educational institution in the state must participate in the program and each 
48.13 	private postsecondary educational institution in the state is encouraged to participate in the 
48.14 	program. Any participating private institution may suspend or terminate its participation 
48.15 	in the program at the end of any semester or other academic term.
48.16 		Subd. 3.Duties; responsibilities. (a) The commissioner shall establish policies 
48.17 	and procedures including, but not limited to, procedures for student application record 
48.18 	keeping, information sharing, payment of educational assistance benefits, and other 
48.19 	procedures the commissioner considers appropriate and necessary for effective and 
48.20 	efficient administration of the program established in this section.
48.21 	(b) The commissioner may delegate part or all of the administrative procedures 
48.22 	for the program to responsible representatives of participating eligible institutions. The 
48.23 	commissioner may execute an interagency agreement with the Office of Higher Education 
48.24 	for services the commissioner determines necessary to administer the program.
48.25 		Subd. 4.Eligibility. (a) A person is eligible for educational assistance under this 
48.26 	section if:
48.27 	(1) the person is:
48.28 	(i) a veteran who is serving or has served honorably in any branch or unit of the 
48.29 	United States armed forces at any time on or after September 11, 2001;
48.30 	(ii) a nonveteran who has served honorably for a total of five years or more 
48.31 	cumulatively as a member of the Minnesota National Guard or any other active or reserve 
48.32 	component of the United States armed forces, and any part of that service occurred on or 
48.33 	after September 11, 2001;
48.34 	(iii) the surviving spouse or child of a person who has served in the military at any 
48.35 	time on or after September 11, 2001, and who has died as a direct result of that military 
48.36 	service; or
49.1 	(iv) the spouse or child of a person who has served in the military at any time on or 
49.2 	after September 11, 2001, and who has a total and permanent service-connected disability 
49.3 	as rated by the United States Veterans Administration;
49.4 	(2) the person providing the military service described in clause (1), items (i) to (iv), 
49.5 	was a Minnesota resident within six months of the time of the person's initial enlistment or 
49.6 	any reenlistment in the United States armed forces;
49.7 	(3) the person receiving the educational assistance is a Minnesota resident, as 
49.8 	defined in section 136A.101, subdivision 8; and
49.9 	(4) the person receiving the educational assistance: 
49.10 	(i) is an undergraduate student at an eligible institution;
49.11 	(ii) is maintaining satisfactory academic progress as defined by the institution for 
49.12 	students participating in federal Title IV programs;
49.13 	(iii) is enrolled in an education program leading to a certificate, diploma, or degree 
49.14 	at an eligible institution; 
49.15 	(iv) has applied for educational assistance under this section prior to the end of the 
49.16 	academic term for which the assistance is being requested;
49.17 	(v) is in compliance with child support payment requirements under section 
49.18 	136A.121, subdivision 2, clause (5); and
49.19 	(vi) has applied for the federal Pell Grant and the Minnesota State Grant.
49.20 	(b) A person's eligibility terminates when the person becomes eligible for benefits 
49.21 	under section 135A.52.
49.22 	(c) To determine eligibility, the commissioner may require official documentation, 
49.23 	including the person's federal form DD-214 or other official military discharge papers; 
49.24 	correspondence from the United States Veterans Administration; birth certificate; marriage 
49.25 	certificate; proof of enrollment at an eligible institution; signed affidavits; proof of 
49.26 	residency; proof of identity; or any other official documentation the commissioner 
49.27 	considers necessary to determine eligibility.
49.28 	(d) The commissioner may deny eligibility or terminate benefits under this section 
49.29 	to any person who has not provided sufficient documentation to determine eligibility for 
49.30 	the program. An applicant may appeal the commissioner's eligibility determination or 
49.31 	termination of benefits in writing to the commissioner at any time. The commissioner 
49.32 	must rule on any application or appeal within 30 days of receipt of all documentation that 
49.33 	the commissioner requires. The decision of the commissioner regarding an appeal is final. 
49.34 	However, an applicant whose appeal of an eligibility determination has been rejected by 
49.35 	the commissioner may submit an additional appeal of that determination in writing to the 
49.36 	commissioner at any time that the applicant is able to provide substantively significant 
50.1 	additional information regarding the applicant's eligibility for the program. An approval 
50.2 	of an applicant's eligibility by the commissioner following an appeal by the applicant is 
50.3 	not retroactively effective for more than one year or the semester of the person's original 
50.4 	application, whichever is later.
50.5 	(e) Upon receiving an application with insufficient documentation to determine 
50.6 	eligibility, the commissioner must notify the applicant within 30 days of receipt of the 
50.7 	application that the application is being suspended pending receipt by the commissioner of 
50.8 	sufficient documentation from the applicant to determine eligibility.
50.9 		Subd. 5.Benefit amount. (a) On approval by the commissioner of eligibility for 
50.10 	the program, the applicant shall be awarded, on a funds-available basis, the educational 
50.11 	assistance under the program for use at any time according to program rules at any 
50.12 	eligible institution.
50.13 	(b) The amount of educational assistance in any semester or term for an eligible 
50.14 	person must be determined by subtracting from the eligible person's cost of attendance the 
50.15 	amount the person received or was eligible to receive in that semester or term from:
50.16 	(1) the federal Pell Grant;
50.17 	(2) the state grant program under section 136A.121; and 
50.18 	(3) any federal military or veterans educational benefits including but not limited 
50.19 	to the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 
50.20 	vocational rehabilitation benefits, and any other federal benefits associated with the 
50.21 	person's status as a veteran, except veterans disability payments from the United States 
50.22 	Veterans Administration.
50.23 	(c) The amount of educational assistance for any eligible person who is a full-time 
50.24 	student must not exceed the following:
50.25 	(1) $1,000 per semester or term of enrollment;
50.26 	(2) $2,000 per state fiscal year; and
50.27 	(3) $10,000 in a lifetime.
50.28 	For a part-time student, the amount of educational assistance must not exceed $500 per 
50.29 	semester or term of enrollment. For the purpose of this paragraph, a part-time student is a 
50.30 	student taking fewer than 12 credits for a semester or term of enrollment.
50.31 		Subd. 6.Insufficient appropriation. If the amount appropriated is determined 
50.32 	by the commissioner to be insufficient to pay the benefit amounts in subdivision 5, the 
50.33 	commissioner must reduce the amounts specified in subdivision 5, paragraph (c), clauses 
50.34 	(1) and (2).

51.1 	EFFECTIVE DATE. This section is effective July 1, 2007, and applies to 
51.2 	qualifying coursework taken on or after that date.

51.3 	Sec. 51. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 
51.4 	AT WORTHINGTON; YMCA LEASE AGREEMENT.
 51.5 	(a) The Board of Trustees of Minnesota State Colleges and Universities may enter 
51.6 	into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 
51.7 	the Minnesota West Community and Technical College at Worthington campus for the 
51.8 	construction of a YMCA facility. The lease may also include the city of Worthington.
51.9 	(b) Siting and design of the facility must be consistent with the college's master 
51.10 	plan and Minnesota State Colleges and Universities' building standards. Minnesota 
51.11 	West Community and Technical College may negotiate for use of the facility for college 
51.12 	purposes. The lease must contain a provision that the lease shall terminate if the improved 
51.13 	property is no longer used for the partial benefit of the students at the Worthington campus.

51.14 	Sec. 52. INTEREST RATE PROTECTION AGREEMENTS; REPORT.
 51.15 	The Office of Higher Education must report by February 1, 2009, to the senate and 
51.16 	house of representatives committees with primary jurisdiction over higher education 
51.17 	finance and policy on the results of the office's interest rate protection agreement activity 
51.18 	under Minnesota Statutes, section 136A.16, subdivision 16.

51.19 	Sec. 53.  REPEALER.
 51.20 	(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 2, 3, 4, 5, and 6; 
51.21 	135A.032; 135A.033; 135A.045; 135A.053; 136A.07; and 136A.08, subdivision 8, are 
51.22 	repealed.
51.23 	(b) Laws 2001, First Special Session chapter 1, article 1, sections 3, subdivision 3; 
51.24 	and 4, subdivision 5, are repealed.

51.25 	ARTICLE 3
51.26 	PRIVATE INSTITUTIONS

51.27 	Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:
51.28 	136A.61 POLICY.
51.29 	The legislature has found and hereby declares that the availability of legitimate 
51.30 	courses and programs leading to academic degrees offered by responsible private 
51.31 	not-for-profit and for-profit institutions of postsecondary education and the existence 
51.32 	of legitimate private colleges and universities are in the best interests of the people of 
52.1 	this state. The legislature has found and declares that the state can provide assistance 
52.2 	and protection for persons choosing private institutions and programs, by establishing 
52.3 	policies and procedures to assure the authenticity and legitimacy of private postsecondary 
52.4 	education institutions and programs. The legislature has also found and declares that 
52.5 	this same policy applies to any private and public postsecondary educational institution 
52.6 	located in another state or country which offers or makes available to a Minnesota resident 
52.7 	any course, program or educational activity which does not require the leaving of the 
52.8 	state for its completion.

52.9 	Sec. 2. [136A.615] CITATION.
52.10 	Sections 136A.61 to 136A.71 may be cited as the "Minnesota Private and 
52.11 	Out-of-State Public Postsecondary Education Act."

52.12 	Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:
52.13 		Subd. 3.School. "School" means: 
52.14 	(1) any individual, partnership, company, firm, society, trust, association, 
52.15 	corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 
52.16 	nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, 
52.17 	for-profit postsecondary education institution; or (iii) provides a postsecondary 
52.18 	instructional program or course leading to a degree whether or not for profit; (c) is, owns, 
52.19 	or operates a private, postsecondary education institution which uses the term "college", 
52.20 	"academy", "institute" or "university" in its name; or (d) operates for profit and provides 
52.21 	programs or courses which are intended to allow an individual to fulfill in part or totally 
52.22 	the requirements necessary to maintain a license to practice an occupation. School shall 
52.23 	also mean
52.24 	(2) any public postsecondary educational institution located in another state or 
52.25 	country which offers or makes available to a Minnesota resident any course, program or 
52.26 	educational activity which does not require the leaving of the state for its completion; or
52.27 	(3) any individual, entity, or postsecondary institution located in another state 
52.28 	that contracts with any school located within the state of Minnesota for the purpose of 
52.29 	providing educational programs, training programs, or awarding postsecondary credits 
52.30 	or continuing education credits to Minnesota residents that may be applied to a degree 
52.31 	program.

52.32 	Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:
52.33 	136A.63 REGISTRATION.
53.1 		Subdivision 1.Annual registration. All schools located within Minnesota and 
53.2 	all schools located outside Minnesota which offer degree programs or courses within 
53.3 	Minnesota shall register annually with the office.
53.4 		Subd. 2.Sale of an institution. Within 30 days of a change of its ownership a school 
53.5 	must submit a registration renewal application, all usual and ordinary information and 
53.6 	materials for an initial registration, and applicable registration fees for a new institution. 
53.7 	For purposes of this subdivision, "change of ownership" means a merger or consolidation 
53.8 	with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 
53.9 	the assets of a school; the transfer of a controlling interest of at least 51 percent of the 
53.10 	school's stock; or a change in the not-for-profit or for-profit status of a school.

53.11 	Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:
53.12 	136A.64 INFORMATION REQUIRED FOR REGISTRATION.
53.13 		Subdivision 1.Schools to provide information. As a basis for registration, schools 
53.14 	shall provide the office with such information as the office needs to determine the nature 
53.15 	and activities of the school, including but not limited to, requirements for admission, 
53.16 	enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 
53.17 	employed. The office shall have the authority to verify the accuracy of the information 
53.18 	submitted to it by inspection or any other means it deems necessary. the following which 
53.19 	shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 
53.20 	(1) articles of incorporation, constitution, bylaws, or other operating documents; 
53.21 	(2) a duly adopted statement of the school's mission and goals; 
53.22 	(3) evidence of current school or program licenses granted by departments or 
53.23 	agencies of any state; 
53.24 	(4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 
53.25 	past fiscal year including any management letters provided by the independent auditor 
53.26 	or, if the school is a public institution outside Minnesota, an income statement for the 
53.27 	immediate past fiscal year; 
53.28 	(5) all current promotional and recruitment materials and advertisements; and
53.29 	(6) the current school catalog and, if not contained in the catalog: 
53.30 	(i) the members of the board of trustees or directors, if any; 
53.31 	(ii) the current institutional officers; 
53.32 	(iii) current full-time and part-time faculty with degrees held or applicable 
53.33 	experience; 
53.34 	(iv) a description of all school facilities; 
53.35 	(v) a description of all current course offerings; 
54.1 	(vi) all requirements for satisfactory completion of courses, programs, and degrees; 
54.2 	(vii) the school's policy about freedom or limitation of expression and inquiry; 
54.3 	(viii) a current schedule of fees, charges for tuition, required supplies, student 
54.4 	activities, housing, and all other standard charges; 
54.5 	(ix) the school's policy about refunds and adjustments; 
54.6 	(x) the school's policy about granting credit for prior education, training, and 
54.7 	experience; and 
54.8 	(xi) the school's policies about student admission, evaluation, suspension, and 
54.9 	dismissal. 
54.10 		Subd. 2.Financial records. The office shall not disclose financial records or 
54.11 	accreditation reports provided to it by a school pursuant to this section except for the 
54.12 	purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 
54.13 	decision to approve or not to approve the granting of degrees or the use of a name by the 
54.14 	school. Section 15.17, subdivision 4, shall not apply to such records. 
54.15 		Subd. 3.Additional information. If the office is unable to determine the nature 
54.16 	and activities of a school on the basis of the information in subdivision 1, the office shall 
54.17 	notify the school of additional information needed.
54.18 		Subd. 4.Verification of information. The office may verify the accuracy of 
54.19 	submitted information by inspection, visitation, or any other means it considers necessary.
54.20 		Subd. 5.Public information. All information submitted to the office is public 
54.21 	information except financial and accreditation records and information. The office may 
54.22 	disclose financial records or information to defend its decision to approve or disapprove 
54.23 	granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 
54.24 	under chapter 14 or other legal proceedings.
54.25 		Subd. 6.Late registration penalty. Applications for renewal for any registration 
54.26 	received after the deadline date specified in the renewal materials provided by the office 
54.27 	are subject to a late fee equal to 20 percent of the annual registration renewal fee.
54.28 		Subd. 7.Out-of-state expenses. A school shall reimburse the office for actual costs 
54.29 	associated with a site evaluation visit outside Minnesota if the visit is necessary under 
54.30 	subdivision 1 or 3.

54.31 	Sec. 6. [136A.645] SCHOOL CLOSURE.
54.32 	When a school decides to cease postsecondary education operations, it must 
54.33 	cooperate with the office in assisting students to find alternative means to complete their 
54.34 	studies with a minimum of disruption, and inform the office of the following:
54.35 	(1) the planned date for termination of postsecondary education operations;
55.1 	(2) the planned date for the transfer of the student records;
55.2 	(3) confirmation of the name and address of the organization to receive and hold 
55.3 	the student records; and
55.4 	(4) the official at the organization receiving the student records who is designated to 
55.5 	provide official copies of records or transcripts upon request.
55.6 	Upon notice from a school of its intention to cease operations, the office shall notify the 
55.7 	school of the date on which it must cease the enrollment of students and all postsecondary 
55.8 	educational operations.

55.9 	Sec. 7. [136A.646] ADDITIONAL SECURITY.
55.10 	In the event any registered institution is notified by the United States Department 
55.11 	of Education that it has fallen below minimum financial standards and that its continued 
55.12 	participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 
55.13 	Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 
55.14 	Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 
55.15 	institution shall provide a surety bond conditioned upon the faithful performance of all 
55.16 	contracts and agreements with students in a sum equal to the "letter of credit" required by 
55.17 	the United States Department of Education in the Letter of Credit Alternative, but in no 
55.18 	event shall such bond be less than $10,000 nor more than $250,000.

55.19 	Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:
55.20 	136A.65 APPROVAL OF DEGREES AND NAME.
55.21 		Subdivision 1.Prohibition. No school subject to registration shall grant a degree 
55.22 	unless such degree isand its underlying curriculum are approved by the office, nor 
55.23 	shall any school subject to registration use the name "college," "academy," "institute" or 
55.24 	"university" in its name without approval by the office.
55.25 		Subd. 1a.Accreditation; requirement. A school must not be registered or 
55.26 	authorized to offer any degree at any level unless the school is accredited by an agency 
55.27 	recognized by the United States Department of Education for purposes of eligibility to 
55.28 	participate in Title IV federal financial aid programs. Any registered school undergoing 
55.29 	institutional accreditation shall inform the office of site visits by the accrediting agency 
55.30 	and provide office staff the opportunity to attend the visits, including any exit interviews. 
55.31 	The institution must provide the office with a copy of the final report upon receipt.
55.32 		Subd. 2.Procedures. The office shall establish procedures for approval, including 
55.33 	notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 
55.34 	granted. If a hearing is requested, no disapproval shall take effect until after such hearing.
56.1 		Subd. 3.Application. A school subject to registration shall be granted approval 
56.2 	to use the term "college," "academy," "institute" or "university" in its name whether or 
56.3 	not it offers a program leading to a degree, if it was organized, operating, and using such 
56.4 	term in its name on or before August 1, 19752007, and if it meets the other policies and 
56.5 	standards for approval established by the office.
56.6 		Subd. 4.Criteria for approval. (a) A school applying to be registered and to have 
56.7 	its degree or degrees and name approved must substantially meet the following criteria: 
56.8 	(1) the school has an organizational framework with administrative and teaching 
56.9 	personnel to provide the educational programs offered;
56.10 	(2) the school has financial resources sufficient to meet the school's financial 
56.11 	obligations, including refunding tuition and other charges consistent with its stated policy 
56.12 	if the institution is dissolved, or if claims for refunds are made, to provide service to the 
56.13 	students as promised, and to provide educational programs leading to degrees as offered;
56.14 	(3) the school operates in conformity with generally accepted budgeting and 
56.15 	accounting principles;
56.16 	(4) the school provides an educational program leading to the degree it offers; 
56.17 	(5) the school provides appropriate and accessible library, laboratory, and other 
56.18 	physical facilities to support the educational program offered;
56.19 	(6) the school has a policy on freedom or limitation of expression and inquiry for 
56.20 	faculty and students which is published or available on request; 
56.21 	(7) the school uses only publications and advertisements which are truthful and do 
56.22 	not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 
56.23 	school, its personnel, programs, services, or occupational opportunities for its graduates 
56.24 	for promotion and student recruitment;
56.25 	(8) the school's compensated recruiting agents who are operating in Minnesota 
56.26 	identify themselves as agents of the school when talking to or corresponding with students 
56.27 	and prospective students; and
56.28 	(9) the school provides information to students and prospective students concerning: 
56.29 	(i) comprehensive and accurate policies relating to student admission, evaluation, 
56.30 	suspension, and dismissal; 
56.31 	(ii) clear and accurate policies relating to granting credit for prior education, training, 
56.32 	and experience and for courses offered by the school; 
56.33 	(iii) current schedules of fees, charges for tuition, required supplies, student 
56.34 	activities, housing, and all other standard charges; 
56.35 	(iv) policies regarding refunds and adjustments for withdrawal or modification 
56.36 	of enrollment status; and 
57.1 	(v) procedures and standards used for selection of recipients and the terms of 
57.2 	payment and repayment for any financial aid program.
57.3 	(b) An application for degree approval must also include: 
57.4 	(i) title of degree and formal recognition awarded; 
57.5 	(ii) location where such degree will be offered; 
57.6 	(iii) proposed implementation date of the degree; 
57.7 	(iv) admissions requirements for the degree; 
57.8 	(v) length of the degree; 
57.9 	(vi) projected enrollment for a period of five years; 
57.10 	(vii) the curriculum required for the degree, including course syllabi or outlines; 
57.11 	(viii) statement of academic and administrative mechanisms planned for monitoring 
57.12 	the quality of the proposed degree; 
57.13 	(ix) statement of satisfaction of professional licensure criteria, if applicable; 
57.14 	(x) documentation of the availability of clinical, internship, externship, or practicum 
57.15 	sites, if applicable; and 
57.16 	(xi) statement of how the degree fulfills the institution's mission and goals, 
57.17 	complements existing degrees, and contributes to the school's viability.
57.18 		Subd. 5.Requirements for degree approval. For each degree a school offers to a 
57.19 	student, where the student does not leave Minnesota for the major portion of the program 
57.20 	or course leading to the degree, the school must have: 
57.21 	(1) qualified teaching personnel to provide the educational programs for each degree 
57.22 	for which approval is sought; 
57.23 	(2) appropriate educational programs leading to each degree for which approval 
57.24 	is sought; 
57.25 	(3) appropriate and accessible library, laboratory, and other physical facilities to 
57.26 	support the educational program for each degree for which approval is sought; and 
57.27 	(4) a rationale showing that degree programs are consistent with the school's mission 
57.28 	and goals.
57.29 		Subd. 6.Name. A school may use the term "academy" or "institute" in its name 
57.30 	without meeting any additional requirements. A school may use the term "college" in its 
57.31 	name if it offers at least one program leading to an associate degree. A school may use 
57.32 	the term "university" in its name if it offers at least one program leading to a master's 
57.33 	or doctorate degree.
57.34 		Subd. 7.Conditional approval. The office may grant conditional approval for a 
57.35 	degree or use of a term in its name for a period of less than one year if doing so would be 
57.36 	in the best interests of currently enrolled students or prospective students.
58.1 		Subd. 8.Disapproval of registration appeal. (a) If a school's degree or use of a 
58.2 	term in its name is disapproved by the office, the school may request a hearing under 
58.3 	chapter 14. The request must be in writing and made to the office within 30 days of the 
58.4 	date the school is notified of the disapproval. 
58.5 	(b) The office may refuse to renew, revoke, or suspend registration, approval of 
58.6 	a school's degree, or use of a regulated term in its name by giving written notice and 
58.7 	reasons to the school. The school may request a hearing under chapter 14. If a hearing is 
58.8 	requested, no revocation or suspension shall take effect until after the hearing. 
58.9 	(c) Reasons for revocation or suspension of registration or approval may be for one 
58.10 	or more of the following reasons: 
58.11 	(1) violating the provisions of sections 136A.61 to 136A.71; 
58.12 	(2) providing false, misleading, or incomplete information to the office; 
58.13 	(3) presenting information about the school which is false, fraudulent, misleading, 
58.14 	deceptive, or inaccurate in a material respect to students or prospective students; or 
58.15 	(4) refusing to allow reasonable inspection or to supply reasonable information after 
58.16 	a written request by the office has been received.

58.17 	Sec. 9. Minnesota Statutes 2006, section 136A.657, is amended by adding a 
58.18 	subdivision to read:
58.19 		Subd. 4.Statement required; religious nature. Any degree awarded upon 
58.20 	completion of a religiously exempt program shall include descriptive language to make 
58.21 	the religious nature of the award clear.

58.22 	Sec. 10. Minnesota Statutes 2006, section 136A.66, is amended to read:
58.23 	136A.66 LIST.
58.24 	The office shall maintain a list of schools registered institutions authorized to grant 
58.25 	degrees and schools authorized to use the name "college," "academy," "institute" or 
58.26 	"university," and shall make such list available to the public.

58.27 	Sec. 11. Minnesota Statutes 2006, section 136A.67, is amended to read:
58.28 	136A.67 UNAUTHORIZED REPRESENTATIONS.
58.29 	No school and none of its officials or employees shall advertise or represent in any 
58.30 	manner that such school is approved or accredited by the office or state of Minnesota 
58.31 	except that any A school which is duly registered with the office, or any of its officials or 
58.32 	employees, may represent in advertising and shall disclose in catalogues, applications, 
58.33 	and enrollment materials that the school is registered with the office. by prominently 
59.1 	displaying the following statement: "(Name of school) is registered as a private institution 
59.2 	with the Minnesota Office of Higher Education pursuant to sections 136A.61 to 136A.71. 
59.3 	Registration is not an endorsement of the institution. Credits earned at the institution 
59.4 	may not transfer to all other institutions."

59.5 	Sec. 12. Minnesota Statutes 2006, section 136A.68, is amended to read:
59.6 	136A.68 RECORDS.
59.7 	After August 1, 1975, all schools located in this state must maintain permanent 
59.8 	records of all students enrolled therein at any time. The office may require schools to 
59.9 	provide a plan acceptable to the office for preserving all such records for at least ten years. 
59.10 	The office may require that such plan include the filing of a continuous surety bond or a 
59.11 	deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 
59.12 	records after such school ceases to exist. A registered school shall maintain a permanent 
59.13 	record for each student for 50 years from the last date of the student's attendance. A 
59.14 	registered school offering distance instruction to a student located in Minnesota shall 
59.15 	maintain a permanent record for each Minnesota student for 50 years from the last date of 
59.16 	the student's attendance. Records include a student's academic transcript, documents, and 
59.17 	files containing student data about academic credits earned, courses completed, grades 
59.18 	awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 
59.19 	school shall submit a plan that meets the following requirements: 
59.20 	(1) at least one copy of the records must be held in a secure, fireproof depository 
59.21 	or duplicate records must be maintained off site in a secure location and in a manner 
59.22 	approved by the office; 
59.23 	(2) an appropriate official must be designated to provide a student with copies of 
59.24 	records or a transcript upon request; 
59.25 	(3) an alternative method approved by the office of complying with clauses (1) and 
59.26 	(2) must be established if the school ceases to exist; and 
59.27 	(4) if the school has no binding agreement approved by the office for preserving 
59.28 	student records, a continuous surety bond must be filed with the office in an amount not to 
59.29 	exceed $20,000. The bond shall run to the state of Minnesota.

59.30 	Sec. 13. Minnesota Statutes 2006, section 136A.69, is amended to read:
59.31 	136A.69 FEES.
59.32 		Subdivision 1.Registration fees. The office shall collect reasonable registration 
59.33 	fees that are sufficient to recover, but do not exceed, its costs of administering the 
60.1 	registration program. The office shall charge $1,100 for initial registration fees and $950 
60.2 	for annual renewal fees.
60.3 		Subd. 2.Degree level addition fee. The office processing fee for adding a degree 
60.4 	level to an existing program is $2,000 per program.
60.5 		Subd. 3.Program addition fee. The office processing fee for adding a program 
60.6 	that represents a significant departure in the objectives, content, or method of delivery of 
60.7 	programs that are currently offered by the school is $500 per program.
60.8 		Subd. 4.Visit or consulting fee. If the office determines that a fact-finding visit 
60.9 	or outside consultant is necessary to review or evaluate any new or revised program, the 
60.10 	office shall be reimbursed for the expenses incurred related to the review as follows: 
60.11 	(1) $300 for the team base fee or for a paper review conducted by a consultant if the 
60.12 	office determines that a fact-finding visit is not required; 
60.13 	(2) $300 for each day or part thereof on site per team member; and 
60.14 	(3) the actual cost of customary meals, lodging, and related travel expenses incurred 
60.15 	by team members.
60.16 		Subd. 5.Modification fee. The fee for modification of any existing program is 
60.17 	$100 and is due if there is: 
60.18 	(1) an increase or decrease of 25 percent or more from the original date of program 
60.19 	approval, in clock hours, credit hours, or calendar length of an existing program; 
60.20 	(2) a change in academic measurement from clock hours to credit hours or vice 
60.21 	versa; or 
60.22 	(3) an addition or alteration of courses that represent a 25 percent change or more in 
60.23 	the objectives, content, or methods of delivery.

60.24 	Sec. 14. [136A.705] PENALTY.
60.25 	The director may assess fines for violations of a provision of sections 136A.61 to 
60.26 	136A.71. Each day's failure to comply with a provision of sections 136A.61 to 136A.71 
60.27 	shall be a separate violation and fines shall not exceed $500 per day per violation. 
60.28 	Amounts received under this section must be deposited in the special revenue fund and are 
60.29 	appropriated to the Office of Higher Education for the purposes in sections 136A.61 to 
60.30 	136A.71.

60.31 	Sec. 15. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:
60.32 		Subd. 1a.Office of Higher Education or office. "Office of Higher Education" or 
60.33 	"office" means the Minnesota Office of Higher Education.

61.1 	Sec. 16. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:
61.2 		Subd. 5.School. "School" means any person, within or outside the state, who 
61.3 	maintains, advertises, administers, solicits for, or conducts any program for profit at any
61.4 	less than an associate degree level other than baccalaureate or graduate programs, and is 
61.5 	not specifically exempted by sections 141.21 toand is not registered as a private institution 
61.6 	under sections 136A.61 to 136A.71 and is not specifically exempted by section 141.35
61.7 	or 141.37. School also means any person, within or outside the state, who maintains, 
61.8 	advertises, administers, solicits for, or conducts any program at less than an associate 
61.9 	degree level, is not registered as a private institution pursuant to sections 136A.61 to 
61.10 	136A.71, and uses the term, "college," "institute," "academy," or "university" in its name.

61.11 	Sec. 17. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:
61.12 		Subdivision 1.Required. A school must not maintain, advertise, solicit for, 
61.13 	administer, or conduct any program in Minnesota without first obtaining a license from 
61.14 	the office.

61.15 	Sec. 18. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:
61.16 		Subd. 5.Bond. (a) No license shall be issued to any school which maintains, 
61.17 	conducts, solicits for, or advertises within the state of Minnesota any program, unless the 
61.18 	applicant files with the office a continuous corporate surety bond written by a company 
61.19 	authorized to do business in Minnesota conditioned upon the faithful performance of all 
61.20 	contracts and agreements with students made by the applicant.
61.21 	(b) The amount of the surety bond shall be ten percent of the preceding year's gross 
61.22 	income from student tuition, fees, and other required institutional charges, but in no event 
61.23 	less than $10,000 nor greater than $250,000, except that a school may deposit a greater 
61.24 	amount at its own discretion. A school in each annual application for licensure must 
61.25 	compute the amount of the surety bond and verify that the amount of the surety bond 
61.26 	complies with this subdivision, unless the school maintains a surety bond equal to at least 
61.27 	$250,000. A school that operates at two or more locations may combine gross income 
61.28 	from student tuition, fees, and other required institutional charges for all locations for the 
61.29 	purpose of determining the annual surety bond requirement. The gross tuition and fees 
61.30 	used to determine the amount of the surety bond required for a school having a license for 
61.31 	the sole purpose of recruiting students in Minnesota shall be only that paid to the school 
61.32 	by the students recruited from Minnesota.
61.33 	(c) The bond shall run to the state of Minnesota and to any person who may have a 
61.34 	cause of action against the applicant arising at any time after the bond is filed and before it 
62.1 	is canceled for breach of any contract or agreement made by the applicant with any student. 
62.2 	The aggregate liability of the surety for all breaches of the conditions of the bond shall not 
62.3 	exceed the principal sum deposited by the school under paragraph (b). The surety of any 
62.4 	bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 
62.5 	of liability for any breach of condition occurring after the effective date of cancellation.
62.6 	(d) In lieu of bond, the applicant may deposit with the commissioner of finance a 
62.7 	sum equal to the amount of the required surety bond in cash, or securities as may be 
62.8 	legally purchased by savings banks or for trust funds in an aggregate market value equal 
62.9 	to the amount of the required surety bond.
62.10 	(e) Failure of a school to post and maintain the required surety bond or deposit under 
62.11 	paragraph (d) may shall result in denial, suspension, or revocation of the school's license.

62.12 	Sec. 19. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:
62.13 		Subd. 7.Minimum standards. A license shall be issued if the office first 
62.14 	determines:
62.15 	(1) that the applicant has a sound financial condition with sufficient resources 
62.16 	available to:
62.17 	(i) meet the school's financial obligations;
62.18 	(ii) refund all tuition and other charges, within a reasonable period of time, in the 
62.19 	event of dissolution of the school or in the event of any justifiable claims for refund against 
62.20 	the school by the student body;
62.21 	(iii) provide adequate service to its students and prospective students; and
62.22 	(iv) maintain and support the school;
62.23 	(2) that the applicant has satisfactory facilities with sufficient tools and equipment 
62.24 	and the necessary number of work stations to prepare adequately the students currently 
62.25 	enrolled, and those proposed to be enrolled;
62.26 	(3) that the applicant employs a sufficient number of qualified teaching personnel to 
62.27 	provide the educational programs contemplated;
62.28 	(4) that the school has an organizational framework with administrative and 
62.29 	instructional personnel to provide the programs and services it intends to offer;
62.30 	(5) that the premises and conditions under which the students work and study are 
62.31 	sanitary, healthful, and safe, according to modern standards;
62.32 	(6) that the quality and content of each occupational course or program of study 
62.33 	provides education and adequate preparation to enrolled students for entry level positions 
62.34 	in the occupation for which prepared;
63.1 	(7) that the living quarters which are owned, maintained, recommended, or approved 
63.2 	by the applicant for students are sanitary and safe;
63.3 	(8) that the contract or enrollment agreement used by the school complies with 
63.4 	the provisions in section 141.265; 
63.5 	(9) that contracts and agreements do not contain a wage assignment provision or a 
63.6 	confession of judgment clause; and
63.7 	(10) that there has been no adjudication of fraud or misrepresentation in any 
63.8 	criminal, civil, or administrative proceeding in any jurisdiction against the school or its 
63.9 	owner, officers, agents, or sponsoring organization.

63.10 	Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:
63.11 		Subd. 9.Catalog, brochure, or electronic display. Before a license is issued to 
63.12 	a school, the school shall furnish to the office a catalog, brochure, or electronic display 
63.13 	including:
63.14 	(1) identifying data, such as volume number and date of publication;
63.15 	(2) name and address of the school and its governing body and officials;
63.16 	(3) a calendar of the school showing legal holidays, beginning and ending dates of 
63.17 	each course quarter, term, or semester, and other important dates;
63.18 	(4) the school policy and regulations on enrollment including dates and specific 
63.19 	entrance requirements for each program;
63.20 	(5) the school policy and regulations about leave, absences, class cuts, make-up 
63.21 	work, tardiness, and interruptions for unsatisfactory attendance;
63.22 	(6) the school policy and regulations about standards of progress for the student 
63.23 	including the grading system of the school, the minimum grades considered satisfactory, 
63.24 	conditions for interruption for unsatisfactory grades or progress, a description of any 
63.25 	probationary period allowed by the school, and conditions of reentrance for those 
63.26 	dismissed for unsatisfactory progress;
63.27 	(7) the school policy and regulations about student conduct and conditions for 
63.28 	dismissal for unsatisfactory conduct;
63.29 	(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 
63.30 	activities, laboratory fees, service charges, rentals, deposits, and all other charges;
63.31 	(9) the school policy and regulations, including an explanation of section 141.271, 
63.32 	about refunding tuition, fees, and other charges if the student does not enter the program, 
63.33 	withdraws from the program, or the program is discontinued;
63.34 	(10) a description of the available facilities and equipment;
64.1 	(11) a course outline syllabus for each course offered showing course objectives, 
64.2 	subjects or units in the course, type of work or skill to be learned, and approximate time, 
64.3 	hours, or credits to be spent on each subject or unit;
64.4 	(12) the school policy and regulations about granting credit for previous education 
64.5 	and preparation;
64.6 	(13) a notice to students relating to the transferability of any credits earned at the 
64.7 	school to other institutions; 
64.8 	(14) a procedure for investigating and resolving student complaints; and
64.9 	(14) (15) the name and address of the Minnesota Office of Higher Education.
64.10 	A school that is exclusively a distance education school is exempt from clauses 
64.11 	(3) and (5).

64.12 	Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:
64.13 		Subd. 10.Placement records. (a) Before a license is issued reissued to a school 
64.14 	that offers, advertises or implies a placement service, the school shall file with the office 
64.15 	for the past year and thereafter at reasonable intervals determined by the office, a certified 
64.16 	copy of the school's placement record, containing a list of graduates, a description of their 
64.17 	jobs, names of their employers, and other information as the office may prescribe.
64.18 	(b) Each school that offers a placement service shall furnish to each prospective 
64.19 	student, upon request, prior to enrollment, written information concerning the percentage 
64.20 	of the previous year's graduates who were placed in the occupation for which prepared or 
64.21 	in related employment.

64.22 	Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:
64.23 		Subd. 12.Permanent records. A school licensed under this chapter and located 
64.24 	in Minnesota shall maintain a permanent record for each student for 50 years from the 
64.25 	last date of the student's attendance. A school licensed under this chapter and offering 
64.26 	distance instruction to a student located in Minnesota shall maintain a permanent record 
64.27 	for each Minnesota student for 50 years from the last date of the student's attendance. 
64.28 	Records include school transcripts, documents, and files containing student data about 
64.29 	academic credits earned, courses completed, grades awarded, degrees awarded, and 
64.30 	periods of attendance. To preserve permanent records, a school shall submit a plan that 
64.31 	meets the following requirements:
64.32 	(1) at least one copy of the records must be held in a secure, fireproof depository;
64.33 	(2) an appropriate official must be designated to provide a student with copies of 
64.34 	records or a transcript upon request;
65.1 	(3) an alternative method, approved by the office, of complying with clauses (1) and 
65.2 	(2) must be established if the school ceases to exist; and
65.3 	(4) a continuous surety bond must be filed with the office in an amount not to exceed 
65.4 	$20,000 if the school has no binding agreement approved by the office, for preserving 
65.5 	student records or a trust must be arranged if the school ceases to exist. The bond shall run 
65.6 	to the state of Minnesota.

65.7 	Sec. 23. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:
65.8 		Subd. 2.Renewal licensure fee; late fee. (a) The office processing fee for a 
65.9 	renewal licensure application is:
65.10 	(1) for a category A school, as determined by the office, the fee is $865 if the school 
65.11 	offers one program or $1,150 if the school offers two or more programs; and
65.12 	(2) for a category B or C school, as determined by the office, the fee is $430 if the 
65.13 	school offers one program or $575 if the school offers two or more programs.
65.14 	(b) If a license renewal application is not received by the office by the close of 
65.15 	business at least 60 days before the expiration of the current license, a late fee of $100 
65.16 	per business day, not to exceed $3,000, shall be assessed.

65.17 	Sec. 24. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:
65.18 		Subd. 2.Contract information. A contract or enrollment agreement used by a 
65.19 	school must include at least the following:
65.20 	(1) the name and address of the school, clearly stated;
65.21 	(2) a clear and conspicuous disclosure that the agreement is a legally binding 
65.22 	instrument upon written acceptance of the student by the school unless canceled under 
65.23 	section 141.271; 
65.24 	(3) the school's cancellation and refund policy that shall be clearly and conspicuously 
65.25 	entitled "Buyer's Right to Cancel";
65.26 	(4) a clear statement of total cost of the program including tuition and all other 
65.27 	charges;
65.28 	(5) the name and description of the program, including the number of hours or 
65.29 	credits of classroom instruction, or distance instruction, that shall be included; and
65.30 	(6) a clear and conspicuous explanation of the form and means of notice the student 
65.31 	should use in the event the student elects to cancel the contract or sale, the effective 
65.32 	date of cancellation, and the name and address of the seller to which the notice should 
65.33 	be sent or delivered.
66.1 	The contract or enrollment agreement must not include a wage assignment provision or a 
66.2 	confession of judgment clause.

66.3 	Sec. 25. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:
66.4 		Subd. 10.Cancellation occurrence. Written notice of cancellation shall take place 
66.5 	on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 
66.6 	carried, it shall occur on the date the notice is delivered to the school. If a student has not 
66.7 	attended classes class for a period of 21 consecutive days without contacting the school to 
66.8 	indicate an intent to continue in school or otherwise making arrangements concerning the 
66.9 	absence, the student is considered to have withdrawn from school for all purposes as of 
66.10 	the student's last documented date of attendance.

66.11 	Sec. 26. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:
66.12 		Subd. 12.Instrument not to be negotiated. A school shall not negotiate any 
66.13 	promissory instrument received as payment of tuition or other charge prior to completion 
66.14 	of 50 percent of the program., except that prior to that time, instruments may be transferred 
66.15 	by assignment to purchasers who shall be subject to all defenses available against the 
66.16 	school named as payee.

66.17 	Sec. 27. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:
66.18 		Subdivision 1.Not to advertise state approval Disclosure required. Schools, 
66.19 	agents of schools, and solicitors may not advertise or represent in writing or orally that 
66.20 	such school is approved or accredited by the state of Minnesota, except that any A
66.21 	school, agent, or solicitor may advertiserepresent in advertisements and shall disclose 
66.22 	in catalogues, applications, and enrollment materials that the school and solicitor have 
66.23 	been is duly licensed by the state using by prominently displaying the following language
66.24 	statement:
66.25 	"(Name of school) is licensed as a private career school with the Minnesota Office of 
66.26 	Higher Education pursuant to Minnesota Statutes, sections 141.21 to 141.32. Licensure is 
66.27 	not an endorsement of the institution. Credits earned at the institution may not transfer to 
66.28 	all other institutions. The educational programs may not meet the needs of every student 
66.29 	or employer."

66.30 	Sec. 28. Minnesota Statutes 2006, section 141.32, is amended to read:
66.31 	141.32 PENALTY.
67.1 	Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 
67.2 	to comply with this chapter shall be a separate violation. The office shall adopt rules 
67.3 	establishing a list of civil penalties and the fine associated with each violation. Fines 
67.4 	for violations shall not exceed $500 per day per violation. The director may assess 
67.5 	fines for violations of a provision of this chapter. Each day's failure to comply with this 
67.6 	chapter shall be a separate violation and fines shall not exceed $500 per day per violation. 
67.7 	Amounts received under this section must be deposited in the special revenue fund and are 
67.8 	appropriated to the Office of Higher Education for the purposes of this chapter.

67.9 	Sec. 29. Minnesota Statutes 2006, section 141.35, is amended to read:
67.10 	141.35 EXEMPTIONS.
67.11 	Sections 141.21 to 141.35 141.32 shall not apply to the following:
67.12 	(1) public postsecondary institutions;
67.13 	(2) private postsecondary institutions registered under sections 136A.61136A.615 
67.14 	to 136A.71that are nonprofit, or that are for profit and registered under sections 136A.61
67.15 	to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate 
67.16 	or postbaccalaureate programs;
67.17 	(3) schools of nursing accredited by the state Board of Nursing or an equivalent 
67.18 	public board of another state or foreign country;
67.19 	(4) private schools complying with the requirements of section 120A.22, subdivision 
67.20 	4;
67.21 	(5) courses taught to students in a valid apprenticeship program taught by or 
67.22 	required by a trade union;
67.23 	(6) schools exclusively engaged in training physically or mentally disabled persons 
67.24 	for the state of Minnesota;
67.25 	(7) schools licensed by boards authorized under Minnesota law to issue licenses;
67.26 	(8) schools and educational programs, or training programs, contracted for by 
67.27 	persons, firms, corporations, government agencies, or associations, for the training of their 
67.28 	own employees, for which no fee is charged the employee;
67.29 	(9) schools engaged exclusively in the teaching of purely avocational, recreational, 
67.30 	or remedial subjects as determined by the office;
67.31 	(10) driver training schools and instructors as defined in section 171.33, subdivisions 
67.32 	1 and 2;
67.33 	(11) classes, courses, or programs conducted by a bona fide trade, professional, or 
67.34 	fraternal organization, solely for that organization's membership;
68.1 	(12) (11) programs in the fine arts provided by organizations exempt from taxation 
68.2 	under section 290.05 and registered with the attorney general under chapter 309. For 
68.3 	the purposes of this clause, "fine arts" means activities resulting in artistic creation or 
68.4 	artistic performance of works of the imagination which are engaged in for the primary 
68.5 	purpose of creative expression rather than commercial sale or employment. In making 
68.6 	this determination the office may seek the advice and recommendation of the Minnesota 
68.7 	Board of the Arts;
68.8 	(13) (12) classes, courses, or programs intended to fulfill the continuing education 
68.9 	requirements for licensure or certification in a profession, that have been approved by 
68.10 	a legislatively or judicially established board or agency responsible for regulating the 
68.11 	practice of the profession, and that are offered exclusively to an individual practicing 
68.12 	the profession;
68.13 	(14) (13) classes, courses, or programs intended to prepare students to sit for 
68.14 	undergraduate, graduate, postgraduate, or occupational licensing and occupational 
68.15 	entrance examinations;
68.16 	(15) (14) classes, courses, or programs providing 16 or fewer clock hours of 
68.17 	instruction that are not part of the curriculum for an occupation or entry level employment;
68.18 	(16) (15) classes, courses, or programs providing instruction in personal 
68.19 	development, modeling, or acting;
68.20 	(17) (16) training or instructional programs, in which one instructor teaches an 
68.21 	individual student, that are not part of the curriculum for an occupation or are not intended 
68.22 	to prepare a person for entry level employment; and
68.23 	(18) (17) schools with no physical presence in Minnesota, as determined by the 
68.24 	office, engaged exclusively in offering distance instruction that are located in and 
68.25 	regulated by other states or jurisdictions.

68.26 	Sec. 30. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
68.27 		Subdivision 1.Exemption. Any school or any department or branch of a school: 
68.28 	(1) which is substantially owned, operated, or supported by a bona fide church 
68.29 	or religious organization; 
68.30 	(2) whose programs are primarily designed for, aimed at, and attended by persons 
68.31 	who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 
68.32 	religious organization; and 
68.33 	(3) whose programs are primarily intended to prepare its students to become 
68.34 	ministers of, to enter into some other vocation closely related to, or to conduct their lives 
68.35 	in consonance with the particular faith of that church or religious organization,
69.1 	is exempt from the provisions of sections 141.21 to 141.32.
69.2 		Subd. 2.Limitations. (a) An exemption shall not extend to any school, department 
69.3 	or branch of a school, or program of a school which through advertisements or solicitations 
69.4 	represents to any students or prospective students that the school, its aims, goals, missions, 
69.5 	purposes, or programs are different from those described in subdivision 1.
69.6 	(b) An exemption shall not extend to any school which represents to any student or 
69.7 	prospective student that the major purpose of its programs is to:
69.8 	(1) prepare the student for a vocation not closely related to that particular religious 
69.9 	faith; or
69.10 	(2) provide the student with a general educational program recognized by other 
69.11 	schools or the broader educational, business, or social community as being substantially 
69.12 	equivalent to the educational programs offered by schools or departments or branches of 
69.13 	schools which are not religious in nature and are not exempt from chapter 141 and from 
69.14 	rules adopted pursuant under this chapter.
69.15 		Subd. 3.Scope. Nothing in this chapter or the rules adopted under it shall be 
69.16 	interpreted as permitting the office to determine the truth or falsity of any particular set 
69.17 	of religious beliefs.
69.18 		Subd. 4.Descriptive language required. Any certificate, diploma, degree, or other 
69.19 	formal recognition awarded upon completion of any religiously exempt program shall 
69.20 	include such descriptive language as to make the religious nature of the award clear.

69.21 	Sec. 31. EFFECTIVE DATE; TRANSITION PROCESS.
 69.22 	This article is effective July 1, 2007. Schools licensed pursuant to Minnesota 
69.23 	Statutes, chapter 141, that qualify for private institution registration after July 1, 2007, 
69.24 	shall apply for and complete the process for registration prior to the expiration of their 
69.25 	current private career school license under Minnesota Statutes, chapter 141. Schools 
69.26 	registered as private institutions pursuant to Minnesota Statutes, sections 136A.61 to 
69.27 	136A.71, that are required to obtain a private career school license after July 1, 2007, shall 
69.28 	apply for and complete the process for licensure prior to the expiration of the current 
69.29 	registration, but in any event no later than December 31, 2007. If the office finds it 
69.30 	is necessary to allow for the proper processing of license or registration applications 
69.31 	required by this section, the office is authorized to extend existing license or registration 
69.32 	for a reasonable period of time.