1.1A bill for an act1.2relating to higher education; appropriating money; establishing the Minnesota 1.3GI Bill program; amending certain Minnesota Office of Higher Education 1.4provisions; establishing new grant and loan repayment programs; amending 1.5higher education programs; amending certain grant programs; amending certain 1.6higher education provisions; eliminating obsolete references; making technical 1.7changes; authorizing control of certain decreasing students' share of attendance; 1.8establishing a college readiness assessment; increasing revenue bond limits; 1.9authorizing control of certain deposits; authorizing lease agreements; authorizing 1.10interest rate swap; providing for the Textbook Disclosure, Pricing and Access 1.11Act; amending certain private postsecondary institution provisions;amending 1.12Minnesota Statutes 2006, sections 13.322, subdivision 3; 16B.70, by adding 1.13a subdivision; 41D.01, subdivision 1; 120B.023, subdivision 2; 120B.024; 1.14135A.031, subdivision 7; 135A.053, subdivision 2; 135A.14, subdivision 1; 1.15135A.51, subdivision 2; 135A.52, subdivisions 1, 2; 136A.01, subdivision 2; 1.16136A.031, subdivision 5; 136A.0411; 136A.08, subdivision 7; 136A.101, 1.17subdivision 4; 136A.121, subdivision 5; 136A.125, subdivision 2; 136A.15, 1.18subdivisions 1, 6; 136A.233, subdivision 3; 136A.29, subdivision 9; 136A.61; 1.19136A.62, subdivision 3; 136A.63; 136A.64; 136A.65; 136A.653; 136A.657; 1.20136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2, 3, 1.216; 136F.02, subdivision 1; 136F.42, subdivision 1; 136F.71, subdivision 2, by 1.22adding a subdivision; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25, 1.23subdivisions 1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 1.24141.271, subdivisions 10, 12; 141.28, subdivision 1; 141.32; 141.35; proposing 1.25coding for new law in Minnesota Statutes, chapters 135A; 136A; 136F; 141; 197; 1.26repealing Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, 1.276; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; 137.0245; 137.0246.1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.29ARTICLE 11.30HIGHER EDUCATION APPROPRIATIONS

1.31Section 1. SUMMARY OF APPROPRIATIONS.

1.32    The amounts shown in this section summarize direct appropriations, by fund, made 1.33in this article.

2.120082009Total2.2General$ 1,561,448,000$ 1,644,178,000$3,205,626,0002.3Health Care Access2,157,0002,157,0004,314,0002.4Total$ 1,563,605,000$ 1,646,335,000$3,209,940,000

2.5Sec. 2. HIGHER EDUCATION APPROPRIATIONS.

2.6    The sums shown in the columns marked "Appropriations" are appropriated to the 2.7agencies and for the purposes specified in this article. The appropriations are from the 2.8general fund, or another named fund, and are available for the fiscal years indicated 2.9for each purpose. The figures "2008" and "2009" used in this article mean that the 2.10appropriations listed under them are available for the fiscal year ending June 30, 2008, or 2.11June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal 2.12year 2009. "The biennium" is fiscal years 2008 and 2009.

2.13APPROPRIATIONS2.14Available for the Year2.15Ending June 302.1620082009

2.172.18Sec. 3. MINNESOTA OFFICE OF HIGHER EDUCATION

2.19Subdivision 1.Total Appropriation$ 197,933,000$198,654,000

2.20The amounts that may be spent for each 2.21purpose are specified in the following 2.22subdivisions.

2.23Subd. 2.Minnesota GI Bill10,000,00010,000,000

2.24For grants to eligible veterans or the eligible 2.25spouses and children of veterans as provided 2.26under Minnesota Statutes, section 197.791.2.27Of this appropriation, $152,000 the first 2.28year and $104,000 the second year are for 2.29the administrative costs of operating this 2.30program. For the 2010-2011 biennium, 2.31the base for this program's administrative 2.32costs must be included within the agency 2.33administration program activity.

2.34Subd. 3.State Grants150,154,000151,124,000

3.1If the appropriation in this subdivision for 3.2either year is insufficient, the appropriation 3.3for the other year is available for it.3.4For the biennium, the tuition maximum for 3.5students in four-year programs is $9,957 in 3.6each year for students in four-year programs, 3.7and for students in two-year programs, is 3.8$4,717 in the first year and $4,859 in the 3.9second year.3.10This appropriation sets the living and 3.11miscellaneous expense allowance at $6,241 3.12each year.

3.13Subd. 4.Safety Officers Survivors100,000100,000

3.14This appropriation is to provide educational 3.15benefits under Minnesota Statutes, section 3.16299A.45, to dependent children under age 23 3.17and to the spouses of public safety officers 3.18killed in the line of duty.3.19If the appropriation in this subdivision for 3.20either year is insufficient, the appropriation 3.21for the other year is available for it.

3.22Subd. 5.Interstate Tuition Reciprocity2,000,0002,000,000

3.23If the appropriation in this subdivision for 3.24either year is insufficient, the appropriation 3.25for the other year is available to meet 3.26reciprocity contract obligations.

3.27Subd. 6.State Work Study12,444,00012,444,000

3.28Subd. 7.Child Care Grants4,934,0004,934,000

3.29Subd. 8.Minitex5,881,0005,881,000

3.30Subd. 9.MnLINK Gateway400,000400,000

3.31Subd. 10.Learning Network of Minnesota4,800,0004,800,000

3.32Subd. 11.Minnesota College Savings Plan1,020,0001,020,000

4.1Subd. 12.Midwest Higher Education Compact90,00090,000

4.2Subd. 13.Other Small Programs1,960,0001,670,000

4.3This appropriation includes funding for 4.4postsecondary service learning, student and 4.5parent information, get ready, outreach, and 4.6intervention for college attendance programs.4.7$265,000 each year is for grants to increase 4.8campus-community collaboration and service 4.9learning statewide, including operations of 4.10the Minnesota campus compact, grants to 4.11member institutions and grants for member 4.12institution initiatives. For every $1 in state 4.13funding, grant recipients must contribute $2 4.14in campus or community-based support.4.15$100,000 each year is for a grant to the 4.16Loan Repayment Assistance Program 4.17of Minnesota, Inc. for loan repayment 4.18assistance awards.4.19$500,000 each year is for the teacher 4.20education and compensation helps (TEACH) 4.21and the Minnesota early childhood teacher 4.22retention programs in Minnesota Statutes, 4.23section 136A.126. This is a onetime 4.24appropriation.4.25$250,000 in the first year is for a grant to 4.26Augsburg College for the purpose of its 4.27Step UP program to provide educational 4.28opportunities to chemically dependent 4.29students and to work with other public 4.30and private colleges in Minnesota to help 4.31replicate this program. This is a onetime 4.32appropriation.4.33$40,000 in the first year is for a grant to 4.34the Washington Center for Internships and 5.1Academic Seminars for a pilot program 5.2for scholarships for students enrolling in a 5.3Minnesota four-year college or university 5.4beginning in the fall semester of 2007. The 5.5grant is available only with a dollar-for-dollar 5.6match from nonstate sources.

5.75.85.9Subd. 14.Access to College and Helping Individuals Everywhere Value Education and Rural Pilot Programs1,000,0001,000,000

5.10For Access to College and Helping 5.11Individuals Everywhere Value Education 5.12pilot projects that provide distance-learning 5.13opportunities through the Minnesota State 5.14Colleges and Universities for high school 5.15students living in remote and underserved 5.16areas where the school district lacks 5.17the resources to provide academically 5.18challenging educational opportunities, 5.19including Advanced Placement and 5.20International Baccalaureate programs. 5.21Students who successfully complete a course 5.22must receive college credit at no cost to the 5.23student or the participating school district. 5.24The office must report to the committees of 5.25the legislature with responsibility for higher 5.26education finance by January 15, 2009, on the 5.27program outcomes with recommendations on 5.28continuing and expanding the program.

5.295.30Subd. 15.United Family Medicine Residency Program360,000360,000

5.31For a grant to the united family medicine 5.32residency program. This appropriation 5.33must be used to support up to 18 resident 5.34physicians each year in family practice at 5.35united family medicine residency programs 5.36and must prepare doctors to practice family 6.1care medicine in underserved rural and 6.2urban areas of the state. The legislature 6.3intends this program to improve health 6.4care in underserved communities, provide 6.5affordable access to appropriate medical 6.6care, and manage the treatment of patients in 6.7a more cost-effective manner.

6.8Subd. 16.Agency Administration2,690,0002,731,000

6.9Of this appropriation, $39,000 the first 6.10year and $80,000 the second year are for 6.11compensation-related costs associated with 6.12the delivery of the office's services and 6.13programs.

6.14Subd. 17.Balances Forward

6.15A balance in the first year under this section 6.16does not cancel, but is available for the 6.17second year.

6.18Subd. 18.Transfers

6.19The Minnesota Office of Higher Education 6.20may transfer unencumbered balances from 6.21the appropriations in subdivisions 2 to 15 to 6.22the state grant appropriation, the safety officer 6.23survivors appropriation, the interstate tuition 6.24reciprocity appropriation, the Minnesota 6.25college savings plan appropriation, the child 6.26care appropriation, and the state work study 6.27appropriation.

6.28Subd. 19.Reporting

6.29(a) By November 1 and February 15, the 6.30Minnesota Office of Higher Education 6.31must provide updated state grant spending 6.32projections, taking into account the most 6.33current and projected enrollment and tuition 6.34and fee information, economic conditions, 7.1and other relevant factors. Before submitting 7.2state grant spending projections, the office 7.3must meet and consult with representatives of 7.4public and private postsecondary education, 7.5the Department of Finance, the governor's 7.6office, legislative staff, and financial aid 7.7administrators.7.8(b) The Minnesota Office of Higher 7.9Education shall report to the higher education 7.10divisions of the house and senate finance 7.11committees on participation in postsecondary 7.12education by income, and persistence and 7.13graduation rates of state grant recipients 7.14compared to students who did not receive 7.15state grants. The office is authorized to match 7.16individual student data from the student 7.17record enrollment database with individual 7.18student data from the state grant database on 7.19data elements necessary to perform the study.

7.207.217.22Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

7.23Subdivision 1.Total Appropriation$668,388,000$704,288,000

7.24The amounts that may be spent for each 7.25purpose are specified in the following 7.26subdivisions.

7.277.28Subd. 2.Central Office and Shared Services Unit$40,170,550$40,170,550

7.29For the office of the chancellor and the shared 7.30services division.

7.31Subd. 3.Operations and Maintenance$628,217,450$664,118,000

7.32(a) This appropriation includes funding 7.33for the board's initiatives on recruiting and 7.34retaining underrepresented students, strategic 8.1educational advancements, STEM initiatives, 8.2and infrastructure and technology, and for 8.3the costs of inflation. This appropriation 8.4also includes funding to reduce the tuition 8.5rate increase to two percent from the 8.6board-approved plan of a four percent annual 8.7increase.8.8(b) Appropriations for technology and 8.9infrastructure under this subdivision must 8.10not be used to increase permanent positions 8.11in the office of the chancellor or the shared 8.12services office. Any new positions funded 8.13from the technology and infrastructure 8.14appropriation must be at a campus.8.15(c) $400,000 each year is for 8.16community-based energy development 8.17pilot projects at Mesabi Range Technical 8.18and Community College, the Minnesota 8.19West Community and Technical College, 8.20and Riverland Community College. Each 8.21campus must establish partnerships for 8.22community-based energy development pilot 8.23projects that involve students and faculty. An 8.24allocation for the pilot project is available 8.25to the participating institutions and the 8.26partnerships for the biennium ending June 8.2730, 2009. 8.28(d) $750,000 in the first year is for a modular 8.29clean-room research and training facility 8.30at St. Paul College. This is a onetime 8.31appropriation and is available until expended.8.32(e) $300,000 the first year is for a grant to 8.33the Range Association of Municipalities 8.34and Schools for a study of student demand 8.35and employer needs for higher education in 9.1the Mesabi Range region of northeastern 9.2Minnesota including the cities of Grand 9.3Rapids through Eveleth to Ely. The 9.4association must coordinate and contract for 9.5a study in cooperation with the Board of 9.6Regents of the University of Minnesota and 9.7the Board of Trustees of the Minnesota State 9.8Colleges and Universities. The governing 9.9boards must advise on which of the identified 9.10needs can be met by University of Minnesota 9.11courses and which can be met by the 9.12Minnesota State Colleges and Universities, 9.13and which degree programs may be offered 9.14jointly. The final report must be submitted to 9.15the committees of the legislature responsible 9.16for higher education finance by January 15, 9.172008, with recommendations and plans for 9.18the region.9.19(f) $120,000 in each year is for the Cook 9.20County Higher Education Board to provide 9.21educational programs and academic support 9.22services. The base appropriation for this 9.23program is $120,000 in each year of the 9.24biennium ending June 30, 2011.9.25(g) $2,000,000 the first year and $1,000,000 9.26the second year are for a pilot project with 9.27the Northeast Minnesota Higher Education 9.28District and high schools in its area. Up to 9.29$1,200,000 of the first year appropriation 9.30must be used to purchase equipment that is 9.31necessary to reestablish a technical education 9.32curriculum in the area high schools to 9.33provide the students with the technical 9.34skills necessary for the workforce. Students 9.35from area high schools may also access 9.36the facilities and faculty of the Northeast 10.1Minnesota Higher Education District 10.2for state-of-the-art technical education 10.3opportunities, including MnSCU's 2+2 10.4Pathways initiative. $1,000,000 is added to 10.5the base for this project.10.6(h) $50,000 in the first year is for St. Paul 10.7College to collaborate with the United Auto 10.8Workers Local 879 to purchase a Ford 10.9Ranger pickup truck to retrofit to run on a 10.10battery-powered motor. This vehicle must 10.11be retrofitted to serve as a prototype that 10.12could be mass-produced at the St. Paul Ford 10.13assembly plant.10.14(i) $100,000 each year is for a grant to a 10.15Minnesota public postsecondary institution 10.16with a total student enrollment under 7,000 10.17students, that has an existing women's 10.18hockey team competing in Division I in the 10.19Western Collegiate Hockey Association. 10.20The institution may use the grant for 10.21equipment, facility improvements, travel and 10.22compensation for coaches, trainers, and other 10.23necessary personnel.10.24(j) $450,000 each year is to establish a center 10.25for workforce and economic development 10.26at the Mesabi Range Community and 10.27Technical College and to enhance eFolio 10.28Minnesota. The board, in cooperation with 10.29the Iron Range Resources and Rehabilitation 10.30Board (IRRRB) and the Department of 10.31Employment and Economic Development, 10.32must establish the center to provide on-site 10.33and Internet-based support and technical 10.34assistance to users of the state's eFolio 10.35Minnesota system to promote workforce and 11.1economic development. The center must 11.2assist local economic development agencies 11.3and officials to enable them to access 11.4workforce information generated through the 11.5eFolio Minnesota system. The board must 11.6enhance the eFolio Minnesota system as 11.7necessary to serve these purposes. The center 11.8must report annually to the IRRRB and the 11.9Department of Employment and Economic 11.10Development on the outcomes of the center's 11.11activities.11.12(k) $1,000,000 the first year is to identify 11.13and improve on practices for selecting and 11.14purchasing textbooks and course materials 11.15that are used by students. The board, in 11.16collaboration with the Minnesota State 11.17University Student Association (MSUSA) 11.18and the Minnesota State College Student 11.19Association (MSCSA) must develop 11.20and implement pilot projects with this 11.21appropriation to address the financial burden 11.22that textbook prices and requirements place 11.23on students. These projects may include 11.24textbook rental programs, cooperative 11.25purchasing efforts, training, and education 11.26and awareness programs for students and 11.27faculty on cost considerations and textbook 11.28options. The student associations must 11.29be fully involved in the development and 11.30implementation of any project using this 11.31appropriation. Each student association 11.32must vote to approve a project before it is 11.33implemented. MSUSA and MSCSA must 11.34report to the committees of the legislature 11.35responsible for higher education finance by 11.36February 15, 2009, on the success of the pilot 12.1projects. This money is available until June 12.230, 2009.

12.3Subd. 4.Board Policies

12.4(a) The board must adopt a policy that allows 12.5students to add the cost of textbooks and 12.6required course materials purchased at a 12.7campus bookstore, owned by or operated 12.8under a contract with the campus, to the 12.9existing waivers or payment plans for tuition 12.10and fees.12.11(b) The board must adopt a policy setting 12.12the maximum number of semester credits 12.13required for a baccalaureate degree at 120 12.14semester credits or the equivalent and the 12.15number of semester credits required for an 12.16associate degree at 60 semester credits or the 12.17equivalent.

12.1812.19Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

12.20Subdivision 1.Total Appropriation$696,082,000$742,143,000

12.21The amounts that may be spent for each 12.22purpose are specified in the following 12.23subdivisions.

12.24Subd. 2.Operations and Maintenance 611,112,000667,550,000

12.25(a) This appropriation includes amounts for 12.26the board:12.27(1) to make investments in the university's 12.28technology and related infrastructure;12.29(2) to award faculty and staff compensation 12.30increases differentially;12.31(3) for the board's health workforce and 12.32clinical sciences initiative;12.33(4) initiatives in science and engineering;13.1(5) initiatives relating to the environment, 13.2agriculture, and renewable energy; and13.3(6) for advancing education, including an 13.4Ojibwe Indian language program on the 13.5Duluth campus.13.6(b) $2,250,000 each year is to establish 13.7banded tuition at the Morris, Crookston, and 13.8Duluth campuses to reduce tuition costs for 13.9students.13.10(c) $7,000,000 for the biennium is for 13.11scholarships to mitigate the effects of rising 13.12tuition on Minnesota students and families. 13.13This appropriation must be matched with 13.14$2 of nonstate money for each $1 of state 13.15money.13.16(d) $12,404,000 in the second year is to 13.17reduce the proposed tuition rate increase. 13.18Any of this amount that is not used by the 13.19board to reduce tuition cancels to the general 13.20fund.13.21(e) $300,000 the first year is for the Center 13.22for Transportation Studies to complete a 13.23study to assess public policy options for 13.24reducing the volume of greenhouse gases 13.25emitted from the transportation sector in 13.26Minnesota. The Center for Transportation 13.27Studies must report its preliminary findings 13.28to the legislature by February 1, 2008, and 13.29must issue its full report by June 1, 2008. 13.30This is a onetime appropriation.13.31(f) $250,000 each year is to establish an India 13.32Center to improve and promote relations with 13.33India and Southeast Asia. The center must 13.34partner with public and private organizations 13.35in Minnesota to: 14.1(1) foster an understanding of the history, 14.2culture, and values of India;14.3(2) serve as a resource and catalyst to 14.4promote economic, governmental, and 14.5academic pursuits involving India; and14.6(3) facilitate educational and business 14.7exchanges and partnerships, collaborative 14.8research, and teaching and training activities 14.9for Minnesota students and teachers.14.10The Board of Regents may establish an 14.11advisory council to facilitate the mission 14.12and objectives of the India Center and must 14.13report on the progress of the India Center by 14.14February 15, 2008, to the governor and chairs 14.15of the legislative committees responsible for 14.16higher education finance. This is a onetime 14.17appropriation.14.18(g) $750,000 in the first year is to assist in 14.19the formation of the neighborhood alliance 14.20and for projects identified in section 8. The 14.21alliance, the Board of Regents, and the city of 14.22Minneapolis may cooperate on the projects 14.23and may use a public services of other entities 14.24to complete all or a portion of a project.14.25(h) $300,000 the first year is to establish a 14.26Dakota language teacher training immersion 14.27program on the Twin Cities campus to 14.28prepare teachers to teach in Dakota language 14.29immersion programs. This is a onetime 14.30appropriation.14.31(i) $400,000 each year is for the Minnesota 14.32Institute for Sustainable Agriculture to 14.33provide funds for on-station and on-farm 14.34field scale research and outreach to develop 14.35and test the agronomic and economic 15.1requirements of diverse strands of prairie 15.2plants and other perennials for bioenergy 15.3systems including but not limited to 15.4multiple species selection and establishment, 15.5ecological management between planting 15.6and harvest, harvest technologies, financial 15.7and agronomic risk management, farmer 15.8goal setting and adoption of technologies, 15.9integration of wildlife habitat into 15.10management approaches, evaluation of 15.11carbon and other benefits, and robust polices 15.12needed to induce farmer conversion on 15.13marginal lands.

15.14Subd. 3.Health Care Access Fund2,157,0002,157,000

15.15This appropriation is from the health care 15.16access fund and is for primary care education 15.17initiatives.

15.18Subd. 4.Special Appropriation65,813,00065,436,000

15.19(a) Agriculture and Extension Service52,625,00052,275,000

15.20(1) For the Agricultural Experiment 15.21Station, Minnesota Extension Service. This 15.22appropriation includes funding to promote 15.23alternative livestock research and outreach 15.24at the Minnesota Institute for Sustainable 15.25Agriculture, and to promote sustainable and 15.26organic agricultural research and education. 15.27(2) This appropriation includes funding 15.28for research efforts that demonstrate a 15.29renewed emphasis on the needs of the state's 15.30production agriculture community and a 15.31continued focus on renewable energy derived 15.32from Minnesota biomass resources including 15.33agronomic crops, plant and animal wastes, 15.34and native plants or trees, with priority for 16.1extending the Minnesota vegetable growing 16.2season; fertilizer and soil fertility research 16.3and development; treating and curing human 16.4diseases utilizing plant and livestock cells; 16.5using biofuel production coproducts as 16.6feed for livestock; and a rapid agricultural 16.7response fund for current or emerging 16.8animal, plant, and insect problems affecting 16.9production or food safety. In addition, the 16.10appropriation may be used to secure a facility 16.11and retain current faculty levels for poultry 16.12research currently conducted at UMore Park.16.13(3) In the area of renewable energy, priority 16.14should be given to projects pertaining to: 16.15biofuel and other energy production from 16.16small grains; alternative bioenergy crops and 16.17cropping systems; and growing, harvesting, 16.18and transporting biomass plant material.16.19(4) This appropriation includes funding for 16.20the college of food, agricultural, and natural 16.21resources sciences to establish and maintain 16.22a statewide organic research and education 16.23initiative to provide leadership for organic 16.24agronomic, horticultural, livestock, and food 16.25systems research, education, and outreach 16.26and for the purchase of state-of-the-art 16.27laboratory, planting, tilling, harvesting, and 16.28processing equipment necessary for this 16.29project.16.30(5) By February 1, 2009, the Board 16.31of Regents must report to the legislative 16.32committees with responsibility for agriculture 16.33and higher education finance on the research 16.34and initiatives under this paragraph.17.1(6) The base appropriation is $51,775,000 17.2each year of the biennium ending June 30, 17.32011.

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

17.5$346,000 each year is to support up to 12 17.6resident physicians each year in the St. 17.7Cloud Hospital family practice residency 17.8program. The program must prepare doctors 17.9to practice primary care medicine in the rural 17.10areas of the state. The legislature intends 17.11this program to improve health care in rural 17.12communities, provide affordable access to 17.13appropriate medical care, and manage the 17.14treatment of patients in a more cost-effective 17.15manner.17.16The remainder of this appropriation is for 17.17the rural physicians associates program, the 17.18Veterinary Diagnostic Laboratory, health 17.19sciences research, dental care, and the 17.20Biomedical Engineering Center.

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

17.22For the Geological Survey and the talented 17.23youth mathematics program.

17.24(d) System Specials6,526,0006,526,000

17.25For general research, student loans matching 17.26money, industrial relations education, 17.27Natural Resources Research Institute, Center 17.28for Urban and Regional Affairs, and the Bell 17.29Museum of Natural History. $100,000 is 17.30added to the base appropriation for industrial 17.31relations education.

17.3217.33Subd. 5.University of Minnesota and Mayo Foundation Partnership17,000,0007,000,000

18.1For the direct and indirect expenses of the 18.2collaborative research partnership between 18.3the University of Minnesota and the Mayo 18.4Foundation for research in biotechnology 18.5and medical genomics. $7,000,000 is added 18.6to the base. This appropriation is available 18.7until expended. An annual report on the 18.8expenditure of these funds must be submitted 18.9to the governor and the chairs of the senate 18.10and house committees responsible for higher 18.11education and economic development by 18.12June 30 of each fiscal year.

18.13Subd. 6.Academic Health Center

18.14The appropriation for Academic Health 18.15Center funding under Minnesota Statutes, 18.16section 297F.10, is $22,250,000 each year.

18.17Sec. 6. MAYO CLINIC

18.18Subdivision 1.Total Appropriation$1,202,000$1,250,000

18.19The amounts that may be spent for each 18.20purpose are specified in the following 18.21subdivisions.

18.22Subd. 2.Medical School591,000615,000

18.23The state of Minnesota must pay a capitation 18.24each year for each student who is a resident 18.25of Minnesota. The appropriation may be 18.26transferred between years of the biennium to 18.27accommodate enrollment fluctuations. The 18.28funding base for this program is $640,000 in 18.29fiscal year 2010 and $665,000 in fiscal year 18.302011.18.31It is intended that during the biennium the 18.32Mayo Clinic use the capitation money to 18.33increase the number of doctors practicing in 18.34rural areas in need of doctors.

19.119.2Subd. 3.Family Practice and Graduate Residency Program611,000635,000

19.3The state of Minnesota must pay stipend 19.4support for up to 27 residents each year. The 19.5funding base for this program is $660,000 in 19.6fiscal year 2010 and $686,000 in fiscal year 19.72011.19.8    Sec. 7. LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING.19.9    Subdivision 1.Membership.A 12-member legislative commission on 19.10postsecondary funding is established consisting of six members of the house of 19.11representatives appointed by the speaker and six members of the senate appointed by 19.12the Subcommittee on Committees of the Committee on Rules and Administration. The 19.13commission may elect a chair and other officers as necessary. 19.14    Subd. 2.Charge.The commission must develop an alternative funding formula 19.15or funding method for postsecondary education that creates incentives for high quality 19.16postsecondary education while maintaining access for students. In developing the formula 19.17or funding method, the commission must consider and address: 19.18    (1) both institutional aid and direct student aid; 19.19    (2) the major cost drivers in postsecondary education, such as inflation and 19.20enrollment; 19.21    (3) federal postsecondary funding and tax incentives for postsecondary education; 19.22and 19.23    (4) funding the formula or funding method within the projected constraints on the 19.24state budget in the coming decade.19.25    Subd. 3.Report.The commission must report its recommendations to the house 19.26Division on Higher Education and Workforce Development Policy and Finance, and the 19.27senate Higher Education Budget and Policy Division by June 30, 2008.19.28    Subd. 4.Expiration.The commission expires June 30, 2008.19.29    Sec. 8. UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA 19.30NEIGHBORHOOD ALLIANCE.19.31    Subdivision 1.Definitions.(a) For purposes of this section, the following terms 19.32have the meanings given them.20.1    (b) "Alliance" means a representative body of the constituencies, including, but 20.2not limited to, the University of Minnesota, the city of Minneapolis, and the recognized 20.3neighborhood organizations and business associations referenced in the report.20.4    (c) "Board" means the Board of Regents of the University of Minnesota.20.5    (d) "Report" means the report and appendix entitled Moving Forward Together: 20.6University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to 20.7the legislature in February 2007.20.8    (e) "University partnership district" or "district" means the area located within the 20.9city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East 20.10Como, Prospect Park, and University, as they are defined by the city, and the university's 20.11Minneapolis campus.20.12    (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that 20.13house significant numbers of university students and staff. Transportation and housing 20.14policy analysis and planning must include these areas but they must not be included in 20.15the projects funded through the alliance.20.16    (g) "University" means the University of Minnesota.20.17    Subd. 2.Alliance; functions.The alliance may facilitate, initiate, or manage 20.18projects with the board, city, or other public or private entities that are intended to 20.19maintain the university partnership district as a viable place to study, research, and live. 20.20Projects may include, but are not limited to, those outlined in the report, as well as 20.21efforts to involve students in activities to maintain and improve the university partnership 20.22district; cooperative university and university partnership district long-term planning; and 20.23incentives to increase homeownership within the district with particular emphasis on 20.24employees of the university and of other major employers located within the district.20.25    Subd. 3.Report.The board must report to the legislature by January 15, 2009, on 20.26the expenditure of funds appropriated under section 3.20.27    Sec. 9. MINNESOTA OFFICE OF HIGHER EDUCATION FINANCIAL AID 20.28STUDY.20.29    The Minnesota Office of Higher Education must review and evaluate the existing 20.30financial aid programs that provide loans and grants to students in postsecondary education 20.31and the needs of the workforce for occupations that are currently or will be in demand. 20.32The study must evaluate how effective the financial aid programs are at linking the needs 20.33of the workforce with student need for financial aid. The study must also identify options 20.34for designing financial aid programs including loan forgiveness and loan repayment 20.35programs that target the needs of the workforce and provide incentives to students to 21.1pursue postsecondary education in fields with identified workforce needs. By February 21.215, 2008, the office must report to the legislative committees responsible for higher 21.3education and workforce development on the findings of the study and provide options 21.4and recommendations on how to deliver financial aid, provide incentives for students, 21.5and meet the needs of the workforce for occupations that include speech pathologists 21.6and other occupations with unmet need.21.7ARTICLE 221.8MINNESOTA GI BILL FOR VETERANS21.9    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 21.10read:21.11    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 21.12for:21.13    (1) necessary state level administration of financial aid and Minnesota GI Bill 21.14programs, including accounting, auditing, and disbursing state and federal financial aid 21.15funds, and reporting on financial aid programs to the governor and the legislature;21.16    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 21.17and career schools, under sections 
         136A.61 to 
         136A.71 and chapter 141;21.18    (3) administering the Learning Network of Minnesota;21.19    (4) negotiating and administering reciprocity agreements;21.20    (5) publishing and distributing financial aid information and materials, and other 21.21information and materials under section 
         136A.87, to students and parents;21.22    (6) collecting and maintaining student enrollment and financial aid data and 21.23reporting data on students and postsecondary institutions to develop and implement a 21.24process to measure and report on the effectiveness of postsecondary institutions;21.25    (7) administering the federal programs that affect students and institutions on a 21.26statewide basis; and21.27    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 21.28administer the programs under its supervision.21.29EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 21.30qualifying coursework taken on or after that date.21.31    Sec. 2. [197.791] MINNESOTA GI BILL PROGRAM.21.32    Subdivision 1.Policy.It is the policy of the state of Minnesota to provide 21.33postsecondary educational assistance to Minnesota veterans who have provided honorable 22.1service to this state and nation as members of the United States armed forces, whether 22.2in peacetime or in war, and to the spouses and children of Minnesota veterans who have 22.3become severely disabled or deceased during or as the direct result of military service.22.4    Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section. 22.5    (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise 22.6specified.22.7    (c) "Cost of attendance" for both undergraduate and graduate students has the 22.8meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.22.9    (d) "Child" means a natural or adopted child of a person described in subdivision 5, 22.10paragraph (a), clause (1), item (i) or (ii).22.11    (e) "Director" means the director of the Minnesota Office of Higher Education.22.12    (f) "Eligible institution" means a postsecondary institution located in this state 22.13that either (1) is operated by this state; or (2) is operated publicly or privately and, as 22.14determined by the office, maintains academic standards substantially equivalent to those 22.15of comparable institutions operated in this state.22.16    (g) "Eligible student" means a person who:22.17    (1) if the student is an undergraduate student, has applied for the federal Pell Grant 22.18and the Minnesota State Grant;22.19    (2) is maintaining satisfactory academic progress as defined by the institution for 22.20students participating in federal Title IV programs;22.21    (3) is enrolled in an education program leading to a certificate, diploma, or degree 22.22at an eligible institution;22.23    (4) has applied for educational assistance under the Minnesota GI Bill program prior 22.24to the end of the academic term for which the assistance is being requested.22.25    (5) is in compliance with child support payment requirements under section 22.26136A.121, subdivision 2, clause (5).22.27    (h) "Part-time student" means an undergraduate student enrolled for fewer than 12 22.28credits in a semester or the equivalent, or a graduate student as defined by the student's 22.29eligible institution.22.30    (i) "Program" means the Minnesota GI Bill program established in this section, 22.31unless otherwise specified.22.32    (j) "Service-connected" has the meaning given by the United States Department 22.33of Veterans Affairs.22.34    (k) "Veteran" has the meaning given in section 197.447, and also includes a service 22.35member who has fulfilled the requirements for being a veteran but is still serving actively 22.36in the United States armed forces.23.1    Subd. 3.Program established.There is established a program to provide 23.2postsecondary educational assistance to eligible Minnesota veterans and to the children 23.3and spouses of deceased and severely disabled Minnesota veterans. This program may be 23.4cited as the "Minnesota GI Bill program." 23.5    The director, in consultation with the commissioner and in cooperation with 23.6eligible postsecondary educational institutions, shall expend a biennial appropriation 23.7for the purpose of providing postsecondary educational assistance to eligible persons 23.8in accordance with this program. Each public postsecondary educational institution in 23.9the state must participate in the program and each private postsecondary educational 23.10institution in the state is encouraged to participate in the program. Any participating 23.11private institution may suspend or terminate its participation in the program at the end 23.12of any semester or other academic term.23.13    Subd. 4.Duties; responsibilities.(a) The director, in consultation with the 23.14commissioner, shall establish policies and procedures including, but not limited to, 23.15procedures for student application record keeping, information sharing, payment to 23.16participating eligible institutions, and other procedures the director considers appropriate 23.17and necessary for effective and efficient administration of the program established in 23.18this section.23.19    (b) The director, in consultation with the commissioner, may delegate part or 23.20all of the administrative procedures for the program to responsible representatives of 23.21participating eligible institutions.23.22    Subd. 5.Eligibility.(a) A person is eligible for educational assistance under this 23.23section if:23.24    (1) the person is:23.25    (i) a veteran who is serving or has served honorably in any branch or unit of the 23.26United States armed forces at any time on or after August 2, 1990;23.27    (ii) a nonveteran who has served honorably for a total of 16 years or more 23.28cumulatively as a member of the Minnesota national guard or any other active or reserve 23.29component of the United States armed forces, and any part of that service occurred on 23.30or after August 2, 1990;23.31    (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as 23.32a direct result of that military service; or23.33    (iv) the spouse or child of a person described in (i) or (ii) who has a total 23.34and permanent service-connected disability as rated by the United States veterans 23.35administration;24.1    (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's 24.2state of residence at the time of the person's initial enlistment or any reenlistment in 24.3the United States armed forces;24.4    (3) the person receiving the educational assistance is a Minnesota resident, as 24.5defined in section 136A.101, subdivision 8; and24.6    (4) the person receiving the educational assistance is an eligible student.24.7    (b) A person's eligibility terminates when the person becomes eligible for benefits 24.8under section 135A.52.24.9    (c) As proof of honorable service and disability or death status for a veteran or 24.10service member, the director, by policy and in consultation with the commissioner, may 24.11require official documentation, including the person's federal form DD-214 or other official 24.12military discharge papers, correspondence from the United States veterans administration, 24.13birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed 24.14affidavits, proof of residency, proof of identity, or any other official documentation the 24.15director considers necessary to determine an applicant's eligibility status.24.16    (d) The director, in consultation with the commissioner, may deny eligibility or 24.17terminate benefits under this section to any person who has not provided sufficient proof of 24.18eligibility for the program. An applicant may appeal the director's eligibility determination 24.19in writing to the director at any time. The director must rule on any application or appeal 24.20within 30 days of receipt of all documentation that the director requires. Upon receiving 24.21an application with insufficient documentation, the director must notify the applicant 24.22within 30 days of receipt of the application that the application is being suspended pending 24.23receipt by the director of sufficient documentation from the applicant. The decision of the 24.24director regarding an appeal is final; however, an applicant whose appeal of an eligibility 24.25determination has been rejected by the director may submit an additional appeal of that 24.26determination in writing to the director at any time that the applicant is able to provide 24.27substantively significant additional information relating to the person's eligibility for the 24.28program. An approval of an applicant's eligibility by the director following an appeal by 24.29the applicant is not retroactively effective beyond the later of one year previously or the 24.30semester of the person's original application.24.31    Subd. 6.Benefit amount.(a) On approval by the director of an applicant's 24.32eligibility for the program, the applicant shall be awarded, on a funds-available basis, the 24.33educational assistance under the program for use at any time according to program rules 24.34at any eligible institution. Eligibility for the program terminates upon exhaustion of a 24.35person's benefits as specified in paragraph (c).25.1    (b) The amount of educational assistance in any semester or term for an eligible 25.2person must be determined by subtracting from the eligible person's cost of attendance 25.3at that eligible public institution, or in the case of an eligible private institution the cost 25.4of attendance for a comparable program at the Twin Cities campus of the University of 25.5Minnesota, the amount the person received or was eligible to receive in that semester 25.6or term from:25.7    (1) the federal Pell Grant;25.8    (2) the state grant under section 136A.121; and25.9    (3) any federal military or veterans educational benefits, including, but not limited 25.10to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, 25.11vocational rehabilitation benefits, and any other federal benefits associated with the 25.12person's status as a veteran, except veterans disability payments from the United States 25.13Department of Veterans Affairs.25.14    (c) The amount of education assistance for any eligible person must not exceed any 25.15of the following amounts:25.16    (1) $1,250 per semester or term of enrollment, or in the case of a part-time student 25.17$625 per semester or term of enrollment;25.18    (2) $3,570 per state fiscal year; and25.19    (3) $10,000 total. 25.20EFFECTIVE DATE.This section is effective July 1, 2007, and applies to 25.21qualifying coursework taken on or after that date.25.22    Sec. 3. ANNUAL REVIEW AND RECOMMENDATION.25.23    The commissioner of veterans affairs, in consultation with the director of higher 25.24education, must annually review veterans' participation level in and expenditures for the 25.25Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15 25.26each year, must make recommendations to the chairs of the senate and house committees 25.27having oversight responsibility for veterans affairs regarding adjustment of individual 25.28benefit levels and program funding.25.29ARTICLE 325.30RELATED HIGHER EDUCATION25.31    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:26.1    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 26.2involving the Minnesota Office of Higher Education and other institutions is governed 26.3by sections section136A.05 and 136A.08, subdivision 8. 26.4    (b) Student financial aid. Data collected and used by the Minnesota Office of 26.5Higher Education on applicants for financial assistance are classified under section 26.6136A.162
         . 26.7    (c) Minnesota college savings plan data. Account owner data, account data, and 26.8data on beneficiaries of accounts under the Minnesota college savings plan are classified 26.9under section 
         136G.05, subdivision 10. 26.10    (d) School financial records. Financial records submitted by schools registering 26.11with the Minnesota Office of Higher Education are classified under section 
         136A.64. 26.12    (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.13student enrollment and federal and state financial aid are governed by sections 136A.121, 26.14subdivision 18, and 136A.1701, subdivision 11.26.15    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 26.16to read:26.17    Subd. 4.Construction management education surcharge and account.(a) 26.18For nonresidential construction building permits, the surcharge under subdivision 1 26.19is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, 26.20whichever amount is greater, and designated for and deposited in the construction 26.21management education account.26.22    (b) The construction management education account is created as an account in the 26.23special revenue fund, administered by the Minnesota Office of Higher Education for 26.24the purpose of enhancing construction management education in public postsecondary 26.25institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the 26.26director of the Minnesota Office of Higher Education for the purposes of section 136A.127.26.27    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read:26.28    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 26.29Education Leadership Council is established. The council is composed of 16 17 members 26.30as follows:26.31    (1) the chair of the University of Minnesota agricultural education program;26.32    (2) a representative of the commissioner of education;26.33    (3) a representative of the Minnesota State Colleges and Universities recommended 26.34by the chancellor;27.1    (4) the president and the president-elect of the Minnesota Association of Agriculture 27.2Educators;27.3    (5) a representative of the Future Farmers of America Foundation;27.4    (6) a representative of the commissioner of agriculture;27.5    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 27.6University of Minnesota;27.7    (8) a representative of the Minnesota Private Colleges Council;27.8    (9) two members representing agriculture education and agriculture business 27.9appointed by the governor;27.10    (9) (10) the chair of the senate Committee on Agriculture, General Legislation 27.11and Veterans Affairs;27.12    (10) (11) the chair of the house Committee on Agriculture;27.13    (11) (12) the ranking minority member of the senate Committee on Agriculture, 27.14General Legislation and Veterans Affairs, and a member of the senate Education 27.15Committee designated by the Subcommittee on Committees of the Committee on Rules 27.16and Administration; and27.17    (12) (13) the ranking minority member of the house Agriculture Committee, and a 27.18member of the house Education Committee designated by the speaker.27.19    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 27.20(9), (10), (11), or (12), or (13), may designate a permanent or temporary replacement 27.21member representing the same constituency.27.22    Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:27.23    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 27.24revise and appropriately embed technology and information literacy standards consistent 27.25with recommendations from school media specialists into the state's academic standards 27.26and graduation requirements and implement a review cycle for state academic standards 27.27and related benchmarks, consistent with this subdivision. During each review cycle, the 27.28commissioner also must examine the alignment of each required academic standard and 27.29related benchmark with the knowledge and skills students need for college readiness and 27.30advanced work in the particular subject area.27.31    (b) The commissioner in the 2006-2007 school year must revise and align the state's 27.32academic standards and high school graduation requirements in mathematics to require 27.33that students satisfactorily complete the revised mathematics standards, beginning in the 27.342010-2011 school year. Under the revised standards:28.1    (1) students must satisfactorily complete an algebra I credit by the end of eighth 28.2grade; and28.3    (2) students scheduled to graduate in the 2014-2015 school year or later must 28.4satisfactorily complete an algebra II credit or its equivalent.28.5The commissioner also must ensure that the statewide mathematics assessments 28.6administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 28.7school year are aligned with the state academic standards in mathematics. The statewide 28.811th grade mathematics test administered to students under clause (2) beginning in 28.9the 2013-2014 school year must include algebra II test items that are aligned with 28.10corresponding state academic standards in mathematics. The commissioner, in 28.11collaboration with the Minnesota State Colleges and Universities, must ensure that passing 28.12score for the statewide 11th grade mathematics test represents readiness for college so that 28.13a student who achieves a passing score on this test, upon graduation, is immediately ready 28.14to take college courses for college credit in a two-year or a four-year institution, consistent 28.15with section 135A.104. The commissioner must implement a review of the academic 28.16standards and related benchmarks in mathematics beginning in the 2015-2016 school year.28.17    (c) The commissioner in the 2007-2008 school year must revise and align the state's 28.18academic standards and high school graduation requirements in the arts to require that 28.19students satisfactorily complete the revised arts standards beginning in the 2010-2011 28.20school year. The commissioner must implement a review of the academic standards and 28.21related benchmarks in arts beginning in the 2016-2017 school year.28.22    (d) The commissioner in the 2008-2009 school year must revise and align the state's 28.23academic standards and high school graduation requirements in science to require that 28.24students satisfactorily complete the revised science standards, beginning in the 2011-2012 28.25school year. Under the revised standards, students scheduled to graduate in the 2014-2015 28.26school year or later must satisfactorily complete a chemistry or physics credit. The 28.27commissioner must implement a review of the academic standards and related benchmarks 28.28in science beginning in the 2017-2018 school year.28.29    (e) The commissioner in the 2009-2010 school year must revise and align the state's 28.30academic standards and high school graduation requirements in language arts to require 28.31that students satisfactorily complete the revised language arts standards beginning in the 28.322012-2013 school year. The commissioner, in collaboration with the Minnesota State 28.33Colleges and Universities, must ensure that the passing score for the statewide tenth 28.34grade reading and language arts test represents readiness for college so that a student who 28.35achieves a passing score on this test, upon graduation, is immediately ready to take college 28.36courses for college credit in a two-year or a four-year institution, consistent with section 29.1135A.104. The commissioner must implement a review of the academic standards and 29.2related benchmarks in language arts beginning in the 2018-2019 school year.29.3    (f) The commissioner in the 2010-2011 school year must revise and align the state's 29.4academic standards and high school graduation requirements in social studies to require 29.5that students satisfactorily complete the revised social studies standards beginning in the 29.62013-2014 school year. The commissioner must implement a review of the academic 29.7standards and related benchmarks in social studies beginning in the 2019-2020 school year.29.8    (g) School districts and charter schools must revise and align local academic 29.9standards and high school graduation requirements in health, physical education, world 29.10languages, and career and technical education to require students to complete the revised 29.11standards beginning in a school year determined by the school district or charter school. 29.12School districts and charter schools must formally establish a periodic review cycle for 29.13the academic standards and related benchmarks in health, physical education, world 29.14languages, and career and technical education.29.15    Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read:29.16120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.29.17    (a) Students beginning 9th grade in the 2004-2005 school year and later must 29.18successfully complete the following high school level course credits for graduation:29.19    (1) four credits of language arts;29.20    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 29.21and probability sufficient to satisfy the academic standard;29.22    (3) three credits of science, including at least one credit in biology;29.23    (4) three and one-half credits of social studies, encompassing at least United 29.24States history, geography, government and citizenship, world history, and economics or 29.25three credits of social studies encompassing at least United States history, geography, 29.26government and citizenship, and world history, and one-half credit of economics taught in 29.27a school's social studies, agriculture education, or business department;29.28    (5) one credit in the arts; and29.29    (6) a minimum of seven elective course credits.29.30    A course credit is equivalent to a student successfully completing an academic 29.31year of study or a student mastering the applicable subject matter, as determined by the 29.32local school district.29.33    (b) An agriculture science course may fulfill a science credit requirement in addition 29.34to the specified science credits in biology and chemistry or physics under paragraph (a), 29.35clause (3).30.1    (c) The commissioner, in collaboration with the Minnesota State Colleges and 30.2Universities, must develop and implement a statewide plan to communicate with all 30.3Minnesota high school students no later than the beginning of ninth grade the state's 30.4expectations for college readiness, consistent with sections 120B.023, subdivision 2, 30.5paragraphs (b) and (e), and 135A.104.30.6    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:30.7    Subd. 7. Reports. Instructional expenditure and enrollment data for each 30.8instructional category shall be submitted by the public postsecondary systems to the 30.9Minnesota Office of Higher Education and the Department of Finance and included in the 30.10biennial budget document. The specific data shall be submitted only after the director of 30.11the Minnesota Office of Higher Education has consulted with a data advisory task force to 30.12determine the need, content, and detail of the information.30.13    Sec. 7. [135A.043] RESIDENT TUITION.30.14    (a) A student shall qualify for a resident tuition rate or its equivalent at state 30.15universities and colleges, including the University of Minnesota, if the student meets 30.16all of the following requirements:30.17    (1) high school attendance within the state for three or more years;30.18    (2) graduation from a state high school or attainment within the state of the 30.19equivalent of high school graduation; and30.20    (3) registration as an entering student at, or current enrollment in, a public institution 30.21of higher education.30.22    (b) This section is in addition to any other statute, rule, or higher education 30.23institution regulation or policy providing eligibility for a resident tuition rate or its 30.24equivalent to a student.30.25    (c) To qualify for resident tuition under this section an individual who is not a citizen 30.26or permanent resident of the United States must provide the college or university with 30.27an affidavit that the individual will file an application to become a permanent resident at 30.28the earliest opportunity the individual is eligible to do so.30.29EFFECTIVE DATE.This section is effective the day following final enactment 30.30and applies to tuition for school terms commencing on or after that date.30.31    Sec. 8. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:30.32    Subd. 2. Performance and accountability. Higher education systems and 30.33campuses are expected to achieve the objectives in subdivision 1 and will be held 31.1accountable for doing so. The legislature is increasing the flexibility of the systems and 31.2campuses to provide greater responsibility to higher education in deciding how to achieve 31.3statewide objectives, and to decentralize authority so that those decisions can be made 31.4at the level where the education is delivered. To demonstrate their accountability, the 31.5legislature expects each system and campus to measure and report on its performance, 31.6using meaningful indicators that are critical to achieving the objectives in subdivision 1, 31.7as provided in section 135A.033. Nothing in this section precludes a system or campus 31.8from determining its own objectives and performance measures beyond those identified 31.9in this section. 31.10    Sec. 9. [135A.104] COLLEGE READINESS.31.11    (a) Minnesota State Colleges and Universities must collaborate with the 31.12commissioner of education in establishing passing scores on the Minnesota comprehensive 31.13assessments in reading for grade 10 and in mathematics for grade 11 under section 31.14120B.30 so that "passing score" performances on those two assessments represent a 31.15student's college readiness. For purposes of this section and chapter 120B, "college 31.16readiness" means that a student who graduates from a public high school is immediately 31.17ready to take college courses for college credit in a two-year or a four-year institution. 31.18Minnesota State Colleges and Universities also must collaborate with the commissioner of 31.19education to develop and implement a statewide plan to communicate with all Minnesota 31.20high school students no later than the beginning of ninth grade the state's expectations for 31.21college readiness. 31.22    (b) The entrance and admission materials that the Minnesota State Colleges and 31.23Universities provide to prospective students must clearly indicate the level of academic 31.24preparation that the students must have in order to be ready to immediately take college 31.25courses for college credit in two-year and four-year institutions.31.26    Sec. 10. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:31.27    Subdivision 1. Definitions. As used in this section, the following terms have the 31.28meanings given them.31.29    (a) "Administrator" means the administrator of the institution or other person with 31.30general control and supervision of the institution.31.31    (b) "Public or private postsecondary educational institution" or "institution" means 31.32any of the following institutions having an enrollment of more than 100 persons during 31.33any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 31.34(2) the state universities; (3) the state community colleges; (4) public technical colleges; 32.1(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 32.2and (7) schools subject to either chapter 141, sections 
         136A.61136A.615 to 
         136A.71, or 32.3schools exempt under section 
         136A.657, and which offer educational programs within the 32.4state for an academic year greater than six consecutive months. An institution's report to 32.5the Minnesota Office of Higher Education or the Minnesota Department of Education may 32.6be considered when determining enrollment. 32.7    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 32.8high school in 1997 or later, and who is (1) registering for more than one class during 32.9a full academic term, such as a quarter or a semester or (2) housed on campus and is 32.10registering for one or more classes. Student does not include persons enrolled in extension 32.11classes only or correspondence classes only.32.12    Sec. 11. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read:32.13    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 32.14of age before the beginning of any term, semester or quarter, in which a course of study 32.15is pursued, or a person receiving a railroad retirement annuity who has reached 60 years 32.16of age before the beginning of the term.32.17    Sec. 12. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read:32.18    Subdivision 1. Fees and tuition. Except for an administration fee established by the 32.19governing board at a level to recover costs, to be collected only when a course is taken for 32.20credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 32.21of tuition or activity fees to attend courses offered for credit, audit any courses offered 32.22for credit, or enroll in any noncredit courses in any state supported institution of higher 32.23education in Minnesota when space is available after all tuition-paying students have been 32.24accommodated. A senior citizen enrolled under this section must pay any materials, 32.25personal property, or service charges for the course. In addition, a senior citizen who is 32.26enrolled in a course for credit must pay an administrative fee in an amount established 32.27by the governing board of the institution to recover the course costs. There shall be no 32.28administrative fee charges to a senior citizen auditing a course. For the purposes of this 32.29section and section 
         135A.51, the term "noncredit courses" shall not include those courses 32.30designed and offered specifically and exclusively for senior citizens.32.31    The provisions of this section and section 
         135A.51 do not apply to noncredit courses 32.32designed and offered by the University of Minnesota, and the Minnesota State Colleges 32.33and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 32.34under the provisions of this section and section 
         135A.51 shall not be included by such 33.1institutions in their computation of full-time equivalent students when requesting staff 33.2or appropriations.33.3    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read:33.4    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 33.5shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 33.6courses, nor income limitation imposed in determining eligibility.33.7    (b) A senior citizen enrolled in a closed enrollment contract training or professional 33.8continuing education program is not eligible for benefits under subdivision 1.33.9    Sec. 14. [136A.002] DEFINITIONS.33.10    Subdivision 1.Scope.For purposes of this chapter, the terms defined in this section 33.11have the meanings given them.33.12    Subd. 2.Office of Higher Education or office."Office of Higher Education" or 33.13"office" means the Minnesota Office of Higher Education.33.14    Sec. 15. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:33.15    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 33.16for:33.17    (1) necessary state level administration of financial aid programs, including 33.18accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 33.19financial aid programs to the governor and the legislature;33.20    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 33.21and career schools, under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141;33.22    (3) administering the Learning Network of Minnesota;33.23    (4) negotiating and administering reciprocity agreements;33.24    (5) publishing and distributing financial aid information and materials, and other 33.25information and materials under section 
         136A.87, to students and parents;33.26    (6) collecting and maintaining student enrollment and financial aid data and 33.27reporting data on students and postsecondary institutions to develop and implement a 33.28process to measure and report on the effectiveness of postsecondary institutions;33.29    (7) administering the federal programs that affect students and institutions on a 33.30statewide basis; and33.31    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 33.32administer the programs under its supervision.34.1    Sec. 16. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read:34.2    Subd. 5. Expiration. Notwithstanding section 
         15.059, subdivision 5, the advisory 34.3groups established in this section do not expire on June 30, 2007.34.4    Sec. 17. Minnesota Statutes 2006, section 136A.0411, is amended to read:34.5136A.0411 COLLECTING FEES.34.6    The office may charge fees for seminars, conferences, workshops, services, and 34.7materials. The office may collect fees for registration and licensure of private institutions 34.8under sections 
         136A.61136A.615 to 
         136A.71 and chapter 141. The money is annually 34.9appropriated to the office. 34.10    Sec. 18. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:34.11    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 34.12before the last day in January, submit a report to the committees in the house of 34.13representatives and the senate with responsibility for higher education finance on:34.14    (1) participation in the tuition reciprocity program by Minnesota students and 34.15students from other states attending Minnesota postsecondary institutions under a 34.16reciprocity agreement;34.17    (2) reciprocity and resident tuition rates at each institution; and34.18    (3) interstate payments and obligations for each state participating in the tuition 34.19reciprocity program in the prior year.; and34.20    (4) summary statistics on number of graduates by institution, degree granted, and 34.21year of graduation for reciprocity students who attended Minnesota postsecondary 34.22institutions.34.23    Sec. 19. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:34.24    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 34.25educational institution located in this state or in a state with which the office has entered 34.26into a higher education reciprocity agreement on state student aid programs that either (1) 34.27is operated by this state or the Board of Regents of the University of Minnesota, or (2) is 34.28operated publicly or privately and, as determined by the office, meets all of the following: 34.29(i) maintains academic standards substantially equivalent to those of comparable 34.30institutions operated in this state; (ii) is licensed or registered as a postsecondary institution 34.31by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal 34.32Pell Grant program under Title IV of the Higher Education Act of 1965, as amended.35.1    Sec. 20. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:35.2    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 35.3responsibility for covering the recognized cost of attendance by the applicant, the 35.4applicant's family, and the government. The amount of a financial stipend must not 35.5exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 35.6deducting the following:35.7    (1) the assigned student responsibility of at least 4645.5 percent of the cost of 35.8attending the institution of the applicant's choosing;35.9    (2) the assigned family responsibility as defined in section 
         136A.101; and 35.10    (3) the amount of a federal Pell grant award for which the grant applicant is eligible.35.11    The minimum financial stipend is $100 per academic year.35.12    Sec. 21. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:35.13    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 35.14the applicant:35.15    (1) is a resident of the state of Minnesota;35.16    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 35.17disabled as defined in section 
         125A.02, and who is receiving or will receive care on a 35.18regular basis from a licensed or legal, nonlicensed caregiver;35.19    (3) is income eligible as determined by the office's policies and rules, but is not a 35.20recipient of assistance from the Minnesota family investment program;35.21    (4) has not earned a baccalaureate degree and has been enrolled full time less than 35.22eight semesters or the equivalent;35.23    (5) is pursuing a nonsectarian program or course of study that applies to an 35.24undergraduate degree, diploma, or certificate;35.25    (6) is enrolled at least half time in an eligible institution; and35.26    (7) is in good academic standing and making satisfactory academic progress.35.27    (b) A student who withdraws from enrollment for active military service is entitled 35.28to an additional semester or the equivalent of grant eligibility and will be considered to be 35.29in continuing enrollment status upon return.35.30    Sec. 22. [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; 35.31MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS.35.32    Subdivision 1.TEACH.The teacher education and compensation helps program 35.33(TEACH) is established to provide tuition scholarships, education incentives, and an early 35.34childhood teacher retention program to provide retention incentives to early care and 36.1education providers. The director shall make a grant with appropriations for this purpose 36.2to a nonprofit organization licensed to administer the TEACH early childhood program.36.3    Subd. 2.Program components.(a) The nonprofit organization must use the 36.4grant for:36.5    (1) tuition scholarships up to $5,000 per year for courses leading to the nationally 36.6recognized child development associate credential or college-level courses leading to an 36.7associate's or bachelor's degree in early childhood development and school-age care; and 36.8    (2) education incentives of a minimum of $100 to participants in the tuition 36.9scholarship program if they complete a year of working in the early care and education 36.10field.36.11    (b) Applicants for the scholarship must be employed by a licensed early childhood 36.12or child care program and working directly with children, a licensed family child care 36.13provider, or an employee in a school-age program exempt from licensing under section 36.14245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in 36.15awarding the tuition scholarships. Scholarship recipients must contribute ten percent of 36.16the total scholarship and must be sponsored by their employers, who must also contribute 36.17ten percent of the total scholarship. Scholarship recipients who are self-employed must 36.18contribute 20 percent of the total scholarship. 36.19    (c) The organization must also use the grant for teacher retention incentives of 36.20$1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives 36.21must be employed by a licensed early childhood or child care program and working 36.22directly with children, a licensed family child care provider, or an employee in a 36.23school-age program exempt from licensing under section 245A.03, subdivision 2, clause 36.24(12). Lower wage earners must be given priority for the retention incentives. The amount 36.25of the retention incentive must be based on the applicant's level of education at the time of 36.26application. A provider is eligible for the retention incentive if the provider:36.27    (1) has worked in the field for at least one year and has been working at the same 36.28location for at least one year at the time of application;36.29    (2) agrees to remain in the provider's current position for a period of at least one 36.30year; and36.31    (3) has an associate's or bachelor's degree or a child development associate's degree.36.32    Subd. 3.Advisory committee.The TEACH early childhood and Minnesota early 36.33childhood teacher retention programs must have an advisory board as prescribed by the 36.34national TEACH organization.37.1    Sec. 23. [136A.127] CONSTRUCTION MANAGEMENT EDUCATION 37.2PROGRAM.37.3    Subdivision 1.Construction Management Education Account Advisory 37.4Committee.The director must establish an advisory committee for the construction 37.5management education account. Members of the committee must include: the executive 37.6vice-president of the Minnesota Mechanical Contractors association or designee, a 37.7chapter manager of one of the Minnesota chapters of the National Electrical Contractors 37.8Association or designee, the executive director of the Associated General Contractors of 37.9Minnesota or designee, two members of the nonresidential construction industry, and a 37.10construction management program coordinator or director from an accredited construction 37.11management program in the Minnesota State Colleges and Universities. Members serve 37.12three-year terms. Advisory committee members are reimbursed for expenses related to 37.13committee activities. The director may accept funds from federal, state, or local public 37.14agencies, or from private foundations or individuals for deposit into the construction 37.15management education account under section 16B.70. All money in the account must 37.16be used for the purposes of this section.37.17    Subd. 2.Grants.Grants from the construction management education account must 37.18be used to maintain and increase the quality and availability of education programs for 37.19the construction industry by awarding grants to accredited construction management 37.20programs in the Minnesota State Colleges and Universities. Grants must be used to 37.21maintain and upgrade facilities and provide greater industry access to modern construction 37.22standards and management practices. In making grants, the director, in consultation with 37.23the committee, must:37.24    (1) confirm the qualifications of any program applying for a grant;37.25    (2) affirm applications for American Council for Construction Education 37.26accreditation and, when funds are available, award grants to complete the accreditation 37.27process;37.28    (3) promote close ties between technical and community colleges and four-year 37.29construction management programs; and 37.30    (4) support the development of new educational programs with specific emphasis on 37.31outreach to the construction industry at large.37.32    Subd. 3.Grant awards.(a) The committee may award grants to a Minnesota State 37.33Colleges and Universities institution to support construction management education and to 37.34promote outreach and continuing education in the construction industry.37.35    (b) An eligible institution must provide one of the following:38.1    (1) a bachelor of science construction management degree accredited by the 38.2American Council for Construction Education;38.3    (2) a degree with an American Council for Construction Education accredited 38.4option, including, but not limited to, Engineering Technology and Industrial Technology;38.5    (3) a bachelor of science degree program documenting placement of more than 50 38.6percent of their graduates with Minnesota nonresidential contractors; and38.7    (4) the development of a construction management curriculum to meet the American 38.8Council for Construction Education criteria.38.9    (c) Grant awards may be made as follows:38.10    (1) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.11for institutions qualifying under paragraph (b), clause (1);38.12    (2) $3,000 per graduate during the past academic year up to a maximum of $100,000 38.13for institutions qualifying under paragraph (b), clause (2);38.14    (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the 38.15past academic year to a maximum of $20,000 for institutions qualifying under paragraph 38.16(b), clause (3);38.17    (4) up to $25,000 for the purpose of becoming accredited by the American Council 38.18for Construction Education for two years which may be renewed if the institution is 38.19continuing progress towards accreditation; and38.20    (5) for faculty recruitment and development in construction management programs, 38.21including support for postgraduate work leading to advanced degrees, visiting lecturer 38.22compensation and expenses, teaching assistant positions, and faculty positions; and38.23    (6) to support general classroom and laboratory operating expenses. 38.24    Grants may only be awarded from the construction management education account 38.25to the extent that funds are available. No other state funding may be provided for these 38.26grants.38.27    Subd. 4.Reports.(a) The director must annually report to the committees of the 38.28legislature responsible for higher education finance by January 15. The report must 38.29include the names of the public postsecondary educational institutions receiving grants, the 38.30amount of the grant, the purposes for each grant, the number of students served, and the 38.31number of placements made to the construction industry for the previous academic year.38.32    (b) After receiving an initial grant, the president of the public postsecondary 38.33educational institution must annually submit a report to the director listing the amount of 38.34all past grants awarded from the construction management education account and the uses 38.35of those funds. The report must be submitted with a request for a new or continuing grant 38.36and at a minimum must include the following:39.1    (1) the number of graduates placed with the Minnesota contractors during the 39.2previous academic year;39.3    (2) the expected enrollment in construction management courses in the upcoming 39.4academic year; and39.5    (3) continuing education and extension courses offered in construction management 39.6during the previous academic year and their enrollments.39.7    Subd. 5.Administration.Up to $15,000 per year from the construction 39.8management education account may be used for the administration of this program.39.9    Sec. 24. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:39.10    Subdivision 1. Scope. For purposes of sections 
         136A.15 to 
         136A.1702, the terms 39.11defined in this section have the meanings ascribed togiven them. 39.12    Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:39.13    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 39.14educational institution that either (1) is operated or regulated by this state, or the Board of 39.15Regents of the University of Minnesota; (2) is operated publicly or privately in another 39.16state, is approved by the United States Secretary of Education, and, as determined by 39.17the office, maintains academic standards substantially equal to those of comparable 39.18institutions operated in this state; (3) is licensed or registered as a postsecondary institution 39.19by the office or another state agency; and (4) by July 1, 2011, is participating in the federal 39.20Pell Grant program under Title IV of the Higher Education Act of 1965, as amended. It 39.21also includes any institution chartered in a province.39.22    Sec. 26. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:39.23    Subd. 3. Payments. Work-study payments shall be made to eligible students by 39.24postsecondary institutions as provided in this subdivision.39.25    (a) Students shall be selected for participation in the program by the postsecondary 39.26institution on the basis of student financial need.39.27    (b) In selecting students for participation, priority must be given to students enrolled 39.28for at least 12 credits. In each academic year, a student may be awarded work-study 39.29payments for one period of nonenrollment or less than half-time enrollment if the student 39.30will enroll on at least a half-time basis during the following academic term.39.31    (c) Students will be paid for hours actually worked and the maximum hourly rate 39.32of pay shall not exceed the maximum hourly rate of pay permitted under the federal 39.33college work-study program.40.1    (d) Minimum pay rates will be determined by an applicable federal or state law.40.2    (e) The office shall annually establish a minimum percentage rate of student 40.3compensation to be paid by an eligible employer.40.4    (f) Each postsecondary institution receiving money for state work-study grants 40.5shall make a reasonable effort to place work-study students in employment with eligible 40.6employers outside the institution. However, a public employer other than the institution 40.7may not terminate, lay off, or reduce the working hours of a permanent employee for the 40.8purpose of hiring a work-study student, or replace a permanent employee who is on layoff 40.9from the same or substantially the same job by hiring a work-study student.40.10    (g) The percent of the institution's work-study allocation provided to graduate 40.11students shall not exceed the percent of graduate student enrollment at the participating 40.12institution.40.13    (h) An institution may use up to 30 percent of its allocation for student internships 40.14with private, for-profit employers.40.15    Sec. 27. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read:40.16    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 40.17to issue revenue bonds whose aggregate principal amount at any time shall not exceed 40.18$800,000,000$950,000,000 and to issue notes, bond anticipation notes, and revenue 40.19refunding bonds of the authority under the provisions of sections 
         136A.25 to 
         136A.42, 40.20to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 40.21renovating, improving, furnishing, or equipping one or more projects or parts thereof. 40.22    Sec. 28. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:40.23    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 40.24shall award grants to foster postsecondary attendance and retention by providing outreach 40.25services to historically underserved students in grades six through 12 and historically 40.26underrepresented college students. Grants must be awarded to programs that provide 40.27precollege services, including, but not limited to:40.28    (1) academic counseling;40.29    (2) mentoring;40.30    (3) fostering and improving parental involvement in planning for and facilitating a 40.31college education;40.32    (4) services for students with English as a second language;40.33    (5) academic enrichment activities;40.34    (6) tutoring;41.1    (7) career awareness and exploration;41.2    (8) orientation to college life;41.3    (9) assistance with high school course selection and information about college 41.4admission requirements; and41.5    (10) financial aid counseling.41.6    Grants shall be awarded to postsecondary institutions, professional organizations, 41.7community-based organizations, or others deemed appropriate by the director.41.8    Grants shall be awarded for one year and may be renewed for a second year with 41.9documentation to the Minnesota Office of Higher Education of successful program 41.10outcomes.41.11    Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:41.12    Subd. 2. Eligible students. Eligible students include students in grades six through 41.1312 who meet one or more of the following criteria:41.14    (1) are counted under section 1124(c) of the Elementary and Secondary Education 41.15Act of 1965 (Title I);41.16    (2) are eligible for free or reduced-price lunch under the National School Lunch Act;41.17    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 41.18I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or41.19    (4) are a member of a group traditionally underrepresented in higher education.41.20    Eligible undergraduate students include those who met the student eligibility criteria 41.21as 6th through 12th graders.41.22    Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:41.23    Subd. 3. Application process. The director of the Minnesota Office of Higher 41.24Education shall develop a grant application process. The director shall attempt to support 41.25projects in a manner that ensures that eligible students throughout the state have access 41.26to precollegeprogram services.41.27    The grant application must include, at a minimum, the following information:41.28    (1) a description of the characteristics of the students to be served reflective of the 41.29need for services listed in subdivision 1;41.30    (2) a description of the services to be provided and a timeline for implementation of 41.31the activities;41.32    (3) a description of how the services provided will foster postsecondary attendance41.33and support postsecondary retention;42.1    (4) a description of how the services will be evaluated to determine whether the 42.2program goals were met; and42.3    (5) other information as identified by the director.42.4Grant recipients must specify both program and student outcome goals, and performance 42.5measures for each goal.42.6    Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:42.7    Subd. 6. Program evaluation. Each grant recipient must annually submit a report 42.8to the Minnesota Office of Higher Education delineating its program and student outcome 42.9goals, and activities implemented to achieve the stated outcomes. The goals must be 42.10clearly stated and measurable. Grant recipients are required to collect, analyze, and report 42.11on participation and outcome data that enable the office to verify that the program goals 42.12were met. The office shall maintain:42.13    (1) information about successful precollege program and undergraduate student 42.14retention program activities for dissemination to individuals throughout the state interested 42.15in adopting or replicating successful program practices; and42.16    (2) data on the success of the funded projects in increasing the high school 42.17graduation and, college participation, and college graduation rates of students served 42.18by the grant recipients. The office may convene meetings of the grant recipients, as 42.19needed, to discuss issues pertaining to the implementation of precollege services and 42.20undergraduate retention programs.42.21    Sec. 32. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read:42.22    Subdivision 1. Membership. The board consists of 15 17 members appointed by 42.23the governor with the advice and consent of the senate. At least one member of the board 42.24must be a resident of each congressional district. Three members must be students who are 42.25enrolled at least half time in a degree, diploma, or certificate program or have graduated 42.26from an institution governed by the board within one year of the date of appointment. The 42.27student members shall include: one member from a community college, one member from 42.28a state university, and one member from a technical college. Two members must be 42.29members of the AFL-CIO. The remaining members must be appointed to represent the 42.30state at large.42.31    Sec. 33. [136F.045] UNION MEMBER SELECTION.42.32    Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting, 42.33screening, and recommending qualified candidates for their members of the board. The 43.1AFL-CIO must develop a statement of selection criteria for board membership and a 43.2process for recommending candidates. Beginning in 2008, and every six years thereafter, 43.3the AFL-CIO must recommend four candidates for the two board positions to the governor 43.4by April 15. The governor must appoint two of the candidates to the board of trustees.43.5    Sec. 34. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read:43.6    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 43.7in consultation with the commissioners of employee relations and finance, may develop 43.8policies to allow system office or campus employees on salaries, as defined in section 43.943A.17, subdivision 1
         , to use negative time reporting in which employees report only that 43.10time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 43.11with the commissioners of employee relations and finance, shall evaluate the use of 43.12negative time reporting and its potential for use with other state employees.43.13    Sec. 35. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read:43.14    Subd. 2. Activity funds. All receipts attributable to the state colleges and 43.15universities activity funds and deposited in the state treasury are appropriated to the board 43.16and are not subject to budgetary control as exercised by the commissioner of finance.43.17    Sec. 36. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 43.18to read:43.19    Subd. 4.Banking services.Notwithstanding section 16A.27, the board shall 43.20have authority to control the amount and manner of deposit of all receipts described in 43.21this section in depositories selected by the board. The board's authority shall include 43.22specifying the considerations, financial activities, and conditions required from the 43.23depository, including the requirement of collateral security or a corporate surety bond 43.24as described in section 118A.03. The board may compensate the depository, including 43.25paying a reasonable charge to the depository, maintaining appropriate compensating 43.26balances with the depository, or purchasing non-interest-bearing certificates of deposit 43.27from the depository for performing depository-related services.43.28    Sec. 37. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:43.29    Subd. 5. Amount of matching grant. The amount of the matching grant for a 43.30beneficiary equals:44.1    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 44.2of the contributions made to the beneficiary's account during the calendar year, not to 44.3exceed $300 $400; and44.4    (2) if the beneficiary's family income is more than $50,000 but not more than 44.5$80,000, five ten percent of the sum of the contributions made to the beneficiary's account 44.6during the calendar year, not to exceed $300 $400.44.7    Sec. 38. MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE 44.8AT WORTHINGTON; YMCA LEASE AGREEMENT.44.9    (a) The Board of Trustees of Minnesota State Colleges and Universities may enter 44.10into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on 44.11the Minnesota West Community and Technical College at Worthington campus for the 44.12construction of a YMCA facility. The lease may also include the city of Worthington.44.13    (b) Siting and design of the facility must be consistent with the college's master 44.14plan and Minnesota State Colleges and Universities' building standards. Minnesota 44.15West Community and Technical College may negotiate for use of the facility for college 44.16purposes. The lease must contain a provision that the lease shall terminate if the improved 44.17property is no longer used for the partial benefit of the students at the Worthington campus.44.18    Sec. 39. INTEREST RATE SWAP AND OTHER AGREEMENTS; 44.19IMPLEMENTATION PLAN.44.20    The Minnesota Office of Higher Education must develop a plan for implementing 44.21interest rate exchanges, swaps, or other interest rate protection agreements for its student 44.22loan programs. The plan must be presented in a report to the committees of legislature 44.23responsible for higher education finance by January 15, 2008. The report must address 44.24potential contracting arrangements and options, benefits and risks associated with these 44.25agreements, and the potential impacts on the student loan program, its assets, and its 44.26objectives.44.27    Sec. 40. REPEALER.44.28(a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6; 44.29135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, are repealed.44.30(b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, are repealed.45.1ARTICLE 445.2TEXTBOOK PRICING AND ACCESS45.3    Section 1. [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS.45.4    Subdivision 1.Short title.This section may be cited as the Textbook Disclosure, 45.5Pricing, and Access Act.45.6    Subd. 2.Purpose and intent.The purpose of this act is to ensure that every student 45.7in higher education is offered better and more timely access to affordable course materials 45.8by educating and informing faculty, students, administrators, institutions, bookstores, and 45.9publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the 45.10policy of the state of Minnesota that all involved parties must work together to identify 45.11ways to decrease the cost of course materials for students while protecting the academic 45.12freedom of faculty members to provide high-quality course materials for students. 45.13    Subd. 3.Definitions.For the purposes of this section, the following definitions 45.14have the meanings given.45.15    (1) "Bundled" means any course material packaged together to be sold for one price.45.16    (2) "Bookstore" means a store that is affiliated with a postsecondary institution or 45.17has a contract with a postsecondary institution to sell course materials to students enrolled 45.18at the postsecondary institution.45.19    (3) "Course material" means textbooks as defined in section 297A.67, subdivision 45.2013, custom course materials, and instructional materials as defined in section 297A.67, 45.21subdivision 13a, sold to students by a bookstore in a bundled or unbundled form.45.22    (4) "Custom course materials" means any combination of textbooks, course 45.23materials, or any part thereof that has been customized, produced, and sold by a distributor 45.24or publisher specifically for a specific course, program, or field of study.45.25    (5) "Distributor" means an independent contractor, including its employees or agents, 45.26that is in the business of selling, distributing, advertising, marketing, or maintaining an 45.27inventory of course materials for a postsecondary institution or bookstore.45.28    (6) "Postsecondary institution" means a Minnesota institution defined under section 45.29136A.101, subdivision 4.45.30    (7) "Publisher" means a publishing house, firm, or business, including its employees 45.31or agents, acting with authority of the publisher that publishes, sells, markets, or maintains 45.32an inventory of course materials to a postsecondary institution or bookstore.45.33    Subd. 4.Publisher disclosures.(a) Beginning January 1, 2008, a publisher or 45.34distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty 46.1member or other individual at a postsecondary institution responsible for selecting course 46.2material within seven days of a request, at least the following:46.3    (1) the title, edition, author, and International Standard Book Number (ISBN) of all 46.4course material and custom course materials, if applicable;46.5    (2) the price for the course material;46.6    (3) whether the required course material is bundled with optional material, whether 46.7it can be unbundled, and the price for each bundled and unbundled component;46.8    (4) whether the material is available in an alternative format and the cost for the 46.9alternatively formatted material; and46.10    (5) summary of revisions to requested course material for the previous edition or 46.11release for materials that have been in circulation for five years or less and a detailed 46.12breakdown of revisions must be made available in writing within seven days of the request.46.13    (b) A publisher or distributor must make all bundled course materials available to 46.14bookstores or postsecondary institutions in an unbundled form or provide written or verbal 46.15notice within seven days of a request under this subdivision if the unbundled materials are 46.16not available. 46.17    (c) A publisher or distributor must post on its Web site, include in its marketing 46.18materials, or disclose in writing when a request is made under this subdivision for the 46.19return policy for course material, including any penalties or conditions for returns.46.20    (d) Disclosure under this section is not required for mass market and trade books that 46.21are not published, marketed, or sold primarily for use in or by postsecondary institutions.46.22    Subd. 5.Payment for course material.Each postsecondary institution must adopt 46.23policies that allow students to add the costs of course material purchased at a bookstore 46.24to existing waivers or payment plans for tuition and fees. 46.25    Subd. 6.Notice to purchase.(a) An instructor shall make reasonable efforts to 46.26notify a bookstore of the final order for required and recommended course material 46.27including, but not limited to, alternative formats, previous editions, or custom course 46.28materials at least 30 days prior to the commencement of the term.46.29    (b) The bookstore must notify students of the following information concerning the 46.30required and recommended course material at least 15 days prior to the commencement of 46.31the term for which the course material is required, including, but not limited to:46.32    (1) the title, edition, author, and International Standard Book Number (ISBN) of 46.33the course material;46.34    (2) the price for the course material;46.35    (3) whether the required course material is bundled with optional material, whether 46.36it can be unbundled, and the price for each bundled and unbundled component; and47.1    (4) whether the material is available in an alternative format and the cost for the 47.2alternatively formatted material.47.3    Subd. 7.Educational strategies.(a) During the biennium ending June 30, 2009, 47.4the Minnesota Office of Higher Education shall work with postsecondary institutions 47.5to develop educational materials based upon the findings of the Minnesota Textbook 47.6Advisory Task Force recommendations and other relevant information, convene and 47.7sponsor meetings and workshops, and provide educational materials for faculty, students, 47.8administrators, institutions, bookstores, and publishers in order to educate all interested 47.9parties on strategies for reducing the costs of course materials for students attending 47.10postsecondary institutions. 47.11    (b) The Minnesota Office of Higher Education must develop and maintain a 47.12standardized request form for publisher disclosure under this section with all required 47.13information. The request form must be in an electronic format that can be downloaded 47.14from the office Web site.47.15ARTICLE 547.16PRIVATE INSTITUTIONS47.17    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read:47.18136A.61 POLICY.47.19    The legislature has found and hereby declares that the availability of legitimate 47.20courses and programs leading to academic degrees offered by responsible private not for 47.21profit and for profit institutions of postsecondary education and the existence of legitimate 47.22private colleges and universities are in the best interests of the people of this state. The 47.23legislature has found and declares that the state can provide assistance and protection 47.24for persons choosing private institutions and programs, by establishing policies and 47.25procedures to assure the authenticity and legitimacy of private postsecondary education 47.26institutions and programs. The legislature has also found and declares that this same 47.27policy applies to any private and public postsecondary educational institution located in 47.28another state or country which offers or makes available to a Minnesota resident any 47.29course, program or educational activity which does not require the leaving of the state 47.30for its completion.47.31    Sec. 2. [136A.615] CITATION.47.32    Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and 47.33Out-of-State Public Postsecondary Education Act."48.1    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:48.2    Subd. 3. School. "School" means: 48.3    (1) any individual, partnership, company, firm, society, trust, association, 48.4corporation, or any combination thereof, which (a) (i) is, owns, or operates a private, 48.5nonprofit postsecondary education institution; (b) (ii) is, owns, or operates a private, for 48.6profit postsecondary education institution; (iii) provides a postsecondary instructional 48.7program or course leading to a degree whether or not for profit; (c) (iv) is, owns, or 48.8operates a private, postsecondary education institution which uses the term "college", 48.9"academy", "institute" or "university" in its name; or (d) operates for profit and provides 48.10programs or courses which are intended to allow an individual to fulfill in part or totally 48.11the requirements necessary to maintain a license to practice an occupation. School shall 48.12also mean48.13    (2) any public postsecondary educational institution located in another state or 48.14country which offers or makes available to a Minnesota resident any course, program or 48.15educational activity which does not require the leaving of the state for its completion; or48.16    (3) any individual, entity, or postsecondary institution located in another state 48.17that contracts with any school located within the state of Minnesota for the purpose of 48.18providing educational programs, training programs, or awarding postsecondary credits 48.19or continuing education credits to Minnesota residents that may be applied to a degree 48.20program.48.21    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read:48.22136A.63 REGISTRATION.48.23    Subdivision 1.Annual registration. All schools located within Minnesota and 48.24all schools located outside Minnesota which offer degree programs or courses within 48.25Minnesota shall register annually with the office.48.26    Subd. 2.Sale of an institution.Within 30 days of a change of ownership the school 48.27must submit a registration renewal application, all usual and ordinary information and 48.28materials for an initial registration, and applicable registration fees for a new institution. 48.29For purposes of this subdivision, "change of ownership" means a merger or consolidation 48.30with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of 48.31the assets of a school; the transfer of a controlling interest of at least 51 percent of the 48.32school's stock; or a change in the not-for-profit or for profit status of a school.48.33    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read:48.34136A.64 INFORMATION REQUIRED FOR REGISTRATION.49.1    Subdivision 1. Schools to provide information. As a basis for registration, schools 49.2shall provide the office with such information as the office needs to determine the nature 49.3and activities of the school, including but not limited to, requirements for admission, 49.4enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 49.5employed. The office shall have the authority to verify the accuracy of the information 49.6submitted to it by inspection or any other means it deems necessary. the following which 49.7shall be accompanied by an affidavit attesting to its accuracy and truthfulness: 49.8    (1) articles of incorporation, constitution, bylaws, or other operating documents; 49.9    (2) a duly adopted statement of the school's mission and goals; 49.10    (3) evidence of current school or program licenses granted by departments or 49.11agencies of any state; 49.12    (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate 49.13past fiscal year including any management letters provided by the independent auditor 49.14or, if the school is a public institution outside Minnesota, an income statement for the 49.15immediate past fiscal year; 49.16    (5) all current promotional and recruitment materials and advertisements; and49.17    (6) the current school catalog and, if not contained in the catalog: 49.18    (i) the members of the board of trustees or directors, if any; 49.19    (ii) the current institutional officers; 49.20    (iii) current full-time and part-time faculty with degrees held or applicable 49.21experience; 49.22    (iv) a description of all school facilities; 49.23    (v) a description of all current course offerings; 49.24    (vi) all requirements for satisfactory completion of courses, programs, and degrees; 49.25    (vii) the school's policy about freedom or limitation of expression and inquiry; 49.26    (viii) a current schedule of fees, charges for tuition, required supplies, student 49.27activities, housing, and all other standard charges; 49.28    (ix) the school's policy about refunds and adjustments; 49.29    (x) the school's policy about granting credit for prior education, training, and 49.30experience; and 49.31    (xi) the school's policies about student admission, evaluation, suspension, and 49.32dismissal. 49.33    Subd. 2. Financial records. The office shall not disclose financial records or 49.34accreditation reports provided to it by a school pursuant to this section except for the 49.35purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 50.1decision to approve or not to approve the granting of degrees or the use of a name by the 50.2school. Section 
         15.17, subdivision 4, shall not apply to such records. 50.3    Subd. 3.Additional information.If the office is unable to determine the nature 50.4and activities of a school on the basis of the information in subdivision 1, the office shall 50.5notify the school of additional information needed.50.6    Subd. 4.Verification of information.The office may verify the accuracy of 50.7submitted information by inspection, visitation, or any other means it considers necessary.50.8    Subd. 5.Public information.All information submitted to the office is public 50.9information except financial and accreditation records and information. The office may 50.10disclose financial records or information to defend its decision to approve or disapprove 50.11granting of degrees or the use of a name or its decisions to revoke the approval at a hearing 50.12under chapter 14 or other legal proceedings.50.13    Subd. 6.Late registration penalty.Applications for renewal for any registration 50.14received after the deadline date specified in the renewal materials provided by the office 50.15are subject to a late fee equal to 20 percent of the annual registration renewal fee.50.16    Subd. 7.Out-of-state expenses.A school shall reimburse the office for actual costs 50.17associated with a site evaluation visit outside Minnesota if the visit is necessary under 50.18section 136A.64, subdivision 1 or 3.50.19    Sec. 6. [136A.645] SCHOOL CLOSURE.50.20    (a) When a school decides to cease postsecondary education operations, or if its 50.21registration is refused, revoked, or suspended it must cooperate with the office in assisting 50.22students to find alternative means to complete their studies with a minimum of disruption, 50.23and inform the office of the following:50.24    (1) the planned date for termination of postsecondary education operations; 50.25    (2) the planned date for the transfer of the student records; 50.26    (3) confirmation of the name and address of the organization to receive and hold 50.27the student records; and 50.28    (4) the official at the organization receiving the student records who is designated to 50.29provide official copies of records or transcripts upon request. 50.30    (b) Upon notice from a school of its intention to cease operations, or if a school's 50.31registration is revoked, refused, or suspended, the office shall notify the school of the date 50.32on which it must cease the enrollment of students and all postsecondary educational 50.33operations.50.34    Sec. 7. [136A.646] ADDITIONAL SECURITY.51.1    In the event any registered institution is notified by the United States Department 51.2of Education that it has fallen below minimum financial standards and that its continued 51.3participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 51.4Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit 51.5Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the 51.6institution shall provide a surety bond conditioned upon the faithful performance of all 51.7contracts and agreements with students in a sum equal to the "letter of credit" required by 51.8the United States Department of Education in the Letter of Credit Alternative, but in no 51.9event shall such bond be less than $10,000 and not more than $250,000.51.10    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read:51.11136A.65 APPROVAL OF DEGREES AND NAME.51.12    Subdivision 1. Prohibition. No school subject to registration shall grant a degree 51.13unless such degree isand its underlying curriculum are approved by the office, nor 51.14shall any school subject to registration use the name "college," "academy," "institute" or 51.15"university" in its name without approval by the office.51.16    Subd. 1a.Accreditation; requirement.A school must not be registered or 51.17authorized to offer any degree at any level unless the school is accredited by an agency 51.18recognized by the United States Department of Education for purposes of eligibility to 51.19participate in Title IV federal financial aid programs. Any registered school undergoing 51.20institutional accreditation shall inform the office of site visits by the accrediting agency 51.21and provide office staff the opportunity to attend the visits, including any exit interviews. 51.22The institution must provide the office with a copy of the final report upon receipt.51.23    Subd. 2. Procedures. The office shall establish procedures for approval, including 51.24notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 51.25granted. If a hearing is requested, no disapproval shall take effect until after such hearing.51.26    Subd. 3. Application. A school subject to registration shall be granted approval to 51.27use the term "college," "academy," "institute" or "university" in its name whether or not it 51.28offers a program leading to a degree, if it was organized, operating and using such term in 51.29its name on or before August 1, 1975, and if it meets the other policies and standards for 51.30approval established by the office.51.31    Subd. 4.Criteria for approval.(a) A school applying to be registered and to have 51.32its degree or degrees and name approved must substantially meet the following criteria: 51.33    (1) the school has an organizational framework with administrative and teaching 51.34personnel to provide the educational programs offered;52.1    (2) the school has financial resources sufficient to meet the school's financial 52.2obligations, including refunding tuition and other charges consistent with its stated policy 52.3if the institution is dissolved, or if claims for refunds are made, to provide service to the 52.4students as promised, and to provide educational programs leading to degrees as offered;52.5    (3) the school operates in conformity with generally accepted budgeting and 52.6accounting procedures, such as the standards adopted by the National Association of 52.7College and University Business Officers, located at 1 Dupont Circle, Washington, D.C., 52.820036;52.9    (4) the school provides an educational program leading to the degree it offers; 52.10    (5) the school provides appropriate and accessible library, laboratory, and other 52.11physical facilities to support the educational program offered;52.12    (6) the school has a policy on freedom or limitation of expression and inquiry for 52.13faculty and students which is published or available on request; 52.14    (7) the school uses only publications and advertisements which are truthful and do 52.15not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the 52.16school, its personnel, programs, services, or occupational opportunities for its graduates 52.17for promotion and student recruitment;52.18    (8) the school's compensated recruiting agents who are operating in Minnesota 52.19identify themselves as agents of the school when talking to or corresponding with students 52.20and prospective students; and52.21    (9) the school provides information to students and prospective students concerning: 52.22    (i) comprehensive and accurate policies relating to student admission, evaluation, 52.23suspension, and dismissal; 52.24    (ii) clear and accurate policies relating to granting credit for prior education, training, 52.25and experience and for courses offered by the school; 52.26    (iii) current schedules of fees, charges for tuition, required supplies, student 52.27activities, housing, and all other standard charges; 52.28    (iv) policies regarding refunds and adjustments for withdrawal or modification 52.29of enrollment status; and 52.30    (v) procedures and standards used for selection of recipients and the terms of 52.31payment and repayment for any financial aid program.52.32    (b) An application for degree approval must also include: 52.33    (i) title of degree and formal recognition awarded; 52.34    (ii) location where such degree will be offered; 52.35    (iii) proposed implementation date of the degree; 52.36    (iv) admissions requirements for the degree; 53.1    (v) length of the degree; 53.2    (vi) projected enrollment for a period of five years; 53.3    (vii) the curriculum required for the degree, including course syllabi or outlines; 53.4    (viii) statement of academic and administrative mechanisms planned for monitoring 53.5the quality of the proposed degree; 53.6    (ix) statement of satisfaction of professional licensure criteria, if applicable; 53.7    (x) documentation of the availability of clinical, internship, externship, or practicum 53.8sites, if applicable; and 53.9    (xi) statement of how the degree fulfills the institution's mission and goals, 53.10complements existing degrees, and contributes to the school's viability.53.11    Subd. 5.Requirements for degree approval.For each degree a school offers to a 53.12student, where the student does not leave Minnesota for the major portion of the program 53.13or course leading to the degree, the school must have: 53.14    (1) qualified teaching personnel to provide the educational programs for each degree 53.15for which approval is sought; 53.16    (2) appropriate educational programs leading to each degree for which approval 53.17is sought; 53.18    (3) appropriate and accessible library, laboratory, and other physical facilities to 53.19support the educational program for each degree for which approval is sought; and 53.20    (4) a rationale showing that degree programs are consistent with the school's mission 53.21and goals.53.22    Subd. 6.Name.A school may use the term "academy" or "institute" in its name 53.23without meeting any additional requirements. A school may use the term "college" in its 53.24name if it offers at least one program leading to an associate degree. A school may use 53.25the term "university" in its name if it offers at least one program leading to a master's 53.26or doctorate degree.53.27    Subd. 7.Grandfathered names.Names used before August 1, 2007, by a school, 53.28organized, operating, and using the term "academy," "institute," "college," or "university" 53.29in its name on or before August 1, 2007, may continue using such term whether or not it 53.30offers a program leading to a degree.53.31    Subd. 8.Conditional approval.The office may grant conditional approval for a 53.32degree or use of a term in its name for a period of less than one year if doing so would be 53.33in the best interests of currently enrolled students or prospective students.53.34    Subd. 9.Disapproval of registration appeal.If a school's degree or use of a term 53.35in its name is disapproved by the office, the school may request a hearing under chapter 54.114. The request must be in writing and made to the office within 30 days of the date 54.2the school is notified of the disapproval. 54.3    (a) The office may refuse to renew, revoke, or suspend registration, approval of 54.4a school's degree, or use of a regulated term in its name by giving written notice and 54.5reasons to the school. The school may request a hearing under chapter 14. If a hearing is 54.6requested, no revocation or suspension shall take effect until after the hearing. 54.7    (b) Reasons for revocation or suspension of registration or approval may be for one 54.8or more of the following reasons: 54.9    (1) violating the provisions of sections 136A.615 to 136A.71; 54.10    (2) providing false, misleading, or incomplete information to the office; 54.11    (3) presenting information about the school which is false, fraudulent, misleading, 54.12deceptive, or inaccurate in a material respect to prospective students; or 54.13    (4) refusing to allow reasonable inspection or to supply reasonable information after 54.14a written request by the office has been received.54.15    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read:54.16136A.653 EXEMPTIONS.54.17    Subdivision 1. Exemption. A school that is subject to licensing by the office under 54.18chapter 141, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 54.19The determination of the office as to whether a particular school is subject to regulation 54.20under chapter 141 is final for the purposes of this exemption. 54.21    Subd. 2. Educational program; nonprofit organizations. Educational programs 54.22which are sponsored by a bona fide and nonprofit trade, labor, business, professional 54.23or fraternal organization, which programs are conducted solely for that organization's 54.24membership or for the members of the particular industries or professions served by that 54.25organization, and which are not available to the public on a fee basis, are exempted from 54.26the provisions of sections 
         136A.61136A.615 to 
         136A.71. 54.27    Subd. 3. Educational program; business firms. Educational programs which are 54.28sponsored by a business firm for the training of its employees or the employees of other 54.29business firms with which it has contracted to provide educational services at no cost to the 54.30employees are exempted from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 54.31    Subd. 4. Voluntary submission. Any school or program exempted from the 54.32provisions of sections 
         136A.61136A.615 to 
         136A.71 by the provisions of this section 54.33may voluntarily submit to the provisions of those sections. 55.1    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read:55.2136A.657 EXEMPTION; RELIGIOUS SCHOOLS.55.3    Subdivision 1. Exemption. Any school or any department or branch of a school (a) 55.4which is substantially owned, operated or supported by a bona fide church or religious 55.5organization; (b) whose programs are primarily designed for, aimed at and attended by 55.6persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 55.7church or religious organization; and (c) whose programs are primarily intended to prepare 55.8its students to become ministers of, to enter into some other vocation closely related to, or 55.9to conduct their lives in consonance with, the particular faith of that church or religious 55.10organization, is exempt from the provisions of sections 
         136A.61136A.615 to 
         136A.71. 55.11    Subd. 2. Limitation. This exemption shall not extend to any school or to any 55.12department or branch of a school which through advertisements or solicitations represents 55.13to any students or prospective students that the school, its aims, goals, missions or 55.14purposes or its programs are different from those described in subdivision 1. This 55.15exemption shall not extend to any school which represents to any student or prospective 55.16student that the major purpose of its programs is to prepare the student for a vocation not 55.17closely related to that particular religious faith, or to provide the student with a general 55.18educational program recognized by other schools or the broader educational, business or 55.19social community as being substantially equivalent to the educational programs offered 55.20by schools or departments or branches of schools which are not exempt from sections 55.21136A.61136A.615 to 
         136A.71, and rules adopted pursuant thereto. 55.22    Subd. 3. Scope. Nothing in sections 
         136A.61136A.615 to 
         136A.71, or the rules 55.23adopted pursuant thereto, shall be interpreted as permitting the office to determine the 55.24truth or falsity of any particular set of religious beliefs. 55.25    Subd. 4.Statement required; religious nature.Any degree awarded upon 55.26completion of a religiously exempt program shall include descriptive language to make 55.27the religious nature of the award clear.55.28    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read:55.29136A.66 LIST.55.30    The office shall maintain a list of schools registered institutions authorized to grant 55.31degrees and schools authorized to use the name "college," "academy," "institute" or 55.32"university," and shall make such list available to the public.56.1    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read:56.2136A.67 UNAUTHORIZED REPRESENTATIONS.56.3    No school and none of its officials or employees shall advertise or represent in any 56.4manner that such school is approved or accredited by the office or state of Minnesota 56.5except that any A school which is duly registered with the office, or any of its officials or 56.6employees, may represent in advertising and shall disclose in catalogues, applications, 56.7and enrollment materials that the school is registered with the office. by prominently 56.8displaying the following statement: "(Name of school) is registered as a private institution 56.9with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71. 56.10Registration is not an endorsement of the institution. Credits earned at the institution 56.11may not transfer to all other institutions."56.12    Sec. 13. [136A.675] RISK ANALYSIS.56.13    The office shall develop a set of financial and programmatic evaluation metrics to 56.14aid in the detection of the failure or potential failure of a school to meet the standards 56.15established under sections 136A.61 to 136A.71. These metrics shall include indicators 56.16of financial stability, changes in the senior management or the financial aid and senior 56.17administrative staff of an institution, changes in enrollment, changes in program offerings, 56.18and changes in faculty staffing patterns. The development of financial standards shall use 56.19industry standards as benchmarks. The development of the nonfinancial standards shall 56.20include a measure of trends and dramatic changes in trends or practice. The agency must 56.21specify the metrics and standards for each area and provide a copy to each registered 56.22institution and post them on the agency Web site. The agency shall use regularly reported 56.23data submitted to the federal government or other regulatory or accreditation agencies 56.24wherever possible. The agency may require more frequent data reporting by an institution 56.25to ascertain whether the standards are being met.56.26    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read:56.27136A.68 RECORDS.56.28    After August 1, 1975, all schools located in this state must maintain permanent 56.29records of all students enrolled therein at any time. The office may require schools to 56.30provide a plan acceptable to the office for preserving all such records for at least ten years. 56.31The office may require that such plan include the filing of a continuous surety bond or a 56.32deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 56.33records after such school ceases to exist. A registered school shall maintain a permanent 56.34record for each student for 50 years from the last date of the student's attendance. A 57.1registered school offering distance instruction to a student located in Minnesota shall 57.2maintain a permanent record for each Minnesota student for 50 years from the last date of 57.3the student's attendance. Records include a student's academic transcript, documents, and 57.4files containing student data about academic credits earned, courses completed, grades 57.5awarded, degrees awarded, and periods of attendance. To preserve permanent records, a 57.6school shall submit a plan that meets the following requirements: 57.7    (1) at least one copy of the records must be held in a secure, fireproof depository 57.8or duplicate records must be maintained off site in a secure location and in a manner 57.9approved by the office; 57.10    (2) an appropriate official must be designated to provide a student with copies of 57.11records or a transcript upon request; 57.12    (3) an alternative method approved by the office of complying with clauses (1) and 57.13(2) must be established if the school ceases to exist; and 57.14    (4) if the school has no binding agreement approved by the office for preserving 57.15student records, a continuous surety bond must be filed with the office in an amount not to 57.16exceed $20,000. The bond shall run to the state of Minnesota.57.17    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read:57.18136A.69 FEES.57.19    Subdivision 1.Registration fees. The office shall collect reasonable registration 57.20fees that are sufficient to recover, but do not exceed, its costs of administering the 57.21registration program. The office shall charge $1,100 for initial registration fees and $950 57.22for annual renewal fees.57.23    Subd. 2.Degree level addition fee.The office processing fee for adding a degree 57.24level to an existing program is $2,000 per program.57.25    Subd. 3.Program addition fee.The office processing fee for adding a program 57.26that represents a significant departure in the objectives, content, or method of delivery of 57.27programs that are currently offered by the school is $500 per program.57.28    Subd. 4.Visit or consulting fee.If the office determines that a fact-finding visit 57.29or outside consultant is necessary to review or evaluate any new or revised program, the 57.30office shall be reimbursed for the expenses incurred related to the review as follows: 57.31    (1) $300 for the team base fee or for a paper review conducted by a consultant if the 57.32office determines that a fact-finding visit is not required; 57.33    (2) $300 for each day or part thereof on site per team member; and 57.34    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 57.35by team members.58.1    Subd. 5.Modification fee.The fee for modification of any existing program is 58.2$100 and is due if there is: 58.3    (1) an increase or decrease of 25 percent or more from the original date of program 58.4approval, in clock hours, credit hours, or calendar length of an existing program; 58.5    (2) a change in academic measurement from clock hours to credit hours or vice 58.6versa; or 58.7    (3) an addition or alteration of courses that represent a 25 percent change or more in 58.8the objectives, content, or methods of delivery.58.9    Sec. 16. [136A.705] PENALTY.58.10    The director may assess fines for violations of a provision of sections 136A.615 to 58.11136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 58.12shall be a separate violation and fines shall not exceed $500 per day per violation. 58.13Amounts received under this section must be deposited in the special revenue fund and 58.14are appropriated in fiscal years 2008 and 2009 for the purposes in sections 136A.615 to 58.15136A.71.58.16    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read:58.17136A.71 INJUNCTION.58.18    Upon application of the attorney general the district courts shall have jurisdiction to 58.19enjoin any violations of sections 
         136A.61136A.615 to 
         136A.71. 58.20    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:58.21    Subd. 1a. Office of Higher Education or office. "Office of Higher Education" or 58.22"office" means the Minnesota Office of Higher Education.58.23    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:58.24    Subd. 5. School. "School" means any person, within or outside the state, who 58.25maintains, advertises, administers, solicits for, or conducts any program for profit at 58.26any less than an associate degree level other than baccalaureate or graduate programs, 58.27and is not specifically exempted by sections 141.21 toand is not registered as a private 58.28institution under sections 136A.615 to 136A.71 and is not specifically exempted by 58.29section 141.35 or 141.37. 58.30    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:59.1    Subdivision 1. Required. A school must not maintain, advertise, solicit for, 59.2administer, or conduct any program in Minnesota without first obtaining a license from 59.3the office.59.4    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:59.5    Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 59.6conducts, solicits for, or advertises within the state of Minnesota any program, unless the 59.7applicant files with the office a continuous corporate surety bond written by a company 59.8authorized to do business in Minnesota conditioned upon the faithful performance of all 59.9contracts and agreements with students made by the applicant.59.10    (b) The amount of the surety bond shall be ten percent of the preceding year's gross 59.11income from student tuition, fees, and other required institutional charges, but in no event 59.12less than $10,000 nor greater than $250,000, except that a school may deposit a greater 59.13amount at its own discretion. A school in each annual application for licensure must 59.14compute the amount of the surety bond and verify that the amount of the surety bond 59.15complies with this subdivision, unless the school maintains a surety bond equal to at least 59.16$250,000. A school that operates at two or more locations may combine gross income 59.17from student tuition, fees, and other required institutional charges for all locations for the 59.18purpose of determining the annual surety bond requirement. The gross tuition and fees 59.19used to determine the amount of the surety bond required for a school having a license for 59.20the sole purpose of recruiting students in Minnesota shall be only that paid to the school 59.21by the students recruited from Minnesota.59.22    (c) The bond shall run to the state of Minnesota and to any person who may have a 59.23cause of action against the applicant arising at any time after the bond is filed and before it 59.24is canceled for breach of any contract or agreement made by the applicant with any student. 59.25The aggregate liability of the surety for all breaches of the conditions of the bond shall not 59.26exceed the principal sum deposited by the school under paragraph (b). The surety of any 59.27bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 59.28of liability for any breach of condition occurring after the effective date of cancellation.59.29    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 59.30sum equal to the amount of the required surety bond in cash, or securities as may be 59.31legally purchased by savings banks or for trust funds in an aggregate market value equal 59.32to the amount of the required surety bond.59.33    (e) Failure of a school to post and maintain the required surety bond or deposit under 59.34paragraph (d) may shall result in denial, suspension, or revocation of the school's license.60.1    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:60.2    Subd. 7. Minimum standards. A license shall be issued if the office first 60.3determines:60.4    (1) that the applicant has a sound financial condition with sufficient resources 60.5available to:60.6    (i) meet the school's financial obligations;60.7    (ii) refund all tuition and other charges, within a reasonable period of time, in the 60.8event of dissolution of the school or in the event of any justifiable claims for refund against 60.9the school by the student body;60.10    (iii) provide adequate service to its students and prospective students; and60.11    (iv) maintain and support the school;60.12    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 60.13and the necessary number of work stations to prepare adequately the students currently 60.14enrolled, and those proposed to be enrolled;60.15    (3) that the applicant employs a sufficient number of qualified teaching personnel to 60.16provide the educational programs contemplated;60.17    (4) that the school has an organizational framework with administrative and 60.18instructional personnel to provide the programs and services it intends to offer;60.19    (5) that the premises and conditions under which the students work and study are 60.20sanitary, healthful, and safe, according to modern standards;60.21    (6) that the quality and content of each occupational course or program of study 60.22provides education and adequate preparation to enrolled students for entry level positions 60.23in the occupation for which prepared;60.24    (7) that the living quarters which are owned, maintained, recommended, or approved 60.25by the applicant for students are sanitary and safe;60.26    (8) that the contract or enrollment agreement used by the school complies with 60.27the provisions in section 
         141.265; 60.28    (9) that contracts and agreements do not contain a wage assignment provision or a 60.29confession of judgment clause; and60.30    (10) that there has been no adjudication of fraud or misrepresentation in any 60.31criminal, civil, or administrative proceeding in any jurisdiction against the school or its 60.32owner, officers, agents, or sponsoring organization.60.33    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:61.1    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 61.2a school, the school shall furnish to the office a catalog, brochure, or electronic display 61.3including:61.4    (1) identifying data, such as volume number and date of publication;61.5    (2) name and address of the school and its governing body and officials;61.6    (3) a calendar of the school showing legal holidays, beginning and ending dates of 61.7each course quarter, term, or semester, and other important dates;61.8    (4) the school policy and regulations on enrollment including dates and specific 61.9entrance requirements for each program;61.10    (5) the school policy and regulations about leave, absences, class cuts, make-up 61.11work, tardiness, and interruptions for unsatisfactory attendance;61.12    (6) the school policy and regulations about standards of progress for the student 61.13including the grading system of the school, the minimum grades considered satisfactory, 61.14conditions for interruption for unsatisfactory grades or progress, a description of any 61.15probationary period allowed by the school, and conditions of reentrance for those 61.16dismissed for unsatisfactory progress;61.17    (7) the school policy and regulations about student conduct and conditions for 61.18dismissal for unsatisfactory conduct;61.19    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 61.20activities, laboratory fees, service charges, rentals, deposits, and all other charges;61.21    (9) the school policy and regulations, including an explanation of section 
         141.271, 61.22about refunding tuition, fees, and other charges if the student does not enter the program, 61.23withdraws from the program, or the program is discontinued;61.24    (10) a description of the available facilities and equipment;61.25    (11) a course outline syllabus for each course offered showing course objectives, 61.26subjects or units in the course, type of work or skill to be learned, and approximate time, 61.27hours, or credits to be spent on each subject or unit;61.28    (12) the school policy and regulations about granting credit for previous education 61.29and preparation;61.30    (13) a notice to students relating to the transferability of any credits earned at the 61.31school to other institutions; 61.32    (14) a procedure for investigating and resolving student complaints; and61.33    (14) (15) the name and address of the Minnesota Office of Higher Education.61.34    A school that is exclusively a distance education school is exempt from clauses 61.35(3) and (5).62.1    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:62.2    Subd. 10. Placement records. (a) Before a license is issued reissued to a school 62.3that offers, advertises or implies a placement service, the school shall file with the office 62.4for the past year and thereafter at reasonable intervals determined by the office, a certified 62.5copy of the school's placement record, containing a list of graduates, a description of their 62.6jobs, names of their employers, and other information as the office may prescribe.62.7    (b) Each school that offers a placement service shall furnish to each prospective 62.8student, upon request, prior to enrollment, written information concerning the percentage 62.9of the previous year's graduates who were placed in the occupation for which prepared or 62.10in related employment.62.11    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:62.12    Subd. 12. Permanent records. A school licensed under this chapter and located 62.13in Minnesota shall maintain a permanent record for each student for 50 years from the 62.14last date of the student's attendance. A school licensed under this chapter and offering 62.15distance instruction to a student located in Minnesota shall maintain a permanent record 62.16for each Minnesota student for 50 years from the last date of the student's attendance. 62.17Records include school transcripts, documents, and files containing student data about 62.18academic credits earned, courses completed, grades awarded, degrees awarded, and 62.19periods of attendance. To preserve permanent records, a school shall submit a plan that 62.20meets the following requirements:62.21    (1) at least one copy of the records must be held in a secure, fireproof depository;62.22    (2) an appropriate official must be designated to provide a student with copies of 62.23records or a transcript upon request;62.24    (3) an alternative method, approved by the office, of complying with clauses (1) and 62.25(2) must be established if the school ceases to exist; and62.26    (4) a continuous surety bond must be filed with the office in an amount not to exceed 62.27$20,000 if the school has no binding agreement approved by the office, for preserving 62.28student records or a trust must be arranged if the school ceases to exist. The bond shall run 62.29to the state of Minnesota.62.30    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:62.31    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 62.32renewal licensure application is:62.33    (1) for a category A school, as determined by the office, the fee is $865 if the school 62.34offers one program or $1,150 if the school offers two or more programs; and63.1    (2) for a category B or C school, as determined by the office, the fee is $430 if the 63.2school offers one program or $575 if the school offers two or more programs.63.3    (b) If a license renewal application is not received by the office by the close of 63.4business at least 60 days before the expiration of the current license, a late fee of $100 63.5per business day, not to exceed $3,000, shall be assessed.63.6    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:63.7    Subd. 2. Contract information. A contract or enrollment agreement used by a 63.8school must include at least the following:63.9    (1) the name and address of the school, clearly stated;63.10    (2) a clear and conspicuous disclosure that the agreement is a legally binding 63.11instrument upon written acceptance of the student by the school unless canceled under 63.12section 
         141.271; 63.13    (3) the school's cancellation and refund policy that shall be clearly and conspicuously 63.14entitled "Buyer's Right to Cancel";63.15    (4) a clear statement of total cost of the program including tuition and all other 63.16charges;63.17    (5) the name and description of the program, including the number of hours or 63.18credits of classroom instruction, or distance instruction, that shall be included; and63.19    (6) a clear and conspicuous explanation of the form and means of notice the student 63.20should use in the event the student elects to cancel the contract or sale, the effective 63.21date of cancellation, and the name and address of the seller to which the notice should 63.22be sent or delivered.63.23The contract or enrollment agreement must not include a wage assignment provision or a 63.24confession of judgment clause.63.25    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:63.26    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 63.27on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 63.28carried, it shall occur on the date the notice is delivered to the school. If a student has not 63.29attended classes class for a period of 21 consecutive days without contacting the school to 63.30indicate an intent to continue in school or otherwise making arrangements concerning the 63.31absence, the student is considered to have withdrawn from school for all purposes as of 63.32the student's last documented date of attendance.63.33    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:64.1    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 64.2promissory instrument received as payment of tuition or other charge prior to completion 64.3of 50 percent of the program., except that prior to that time, instruments may be transferred 64.4by assignment to purchasers who shall be subject to all defenses available against the 64.5school named as payee.64.6    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:64.7    Subdivision 1. Not to advertise state approval Disclosure required.Schools, 64.8agents of schools, and solicitors may not advertise or represent in writing or orally that 64.9such school is approved or accredited by the state of Minnesota, except that any A64.10school, agent, or solicitor may advertiserepresent in advertisements and shall disclose 64.11in catalogues, applications, and enrollment materials that the school and solicitor have 64.12been is duly licensed by the state using by prominently displaying the following language64.13statement:64.14"(Name of school) is licensed as a private career school with the Minnesota Office of 64.15Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 64.16institution may not transfer to all other institutions. The educational programs may not 64.17meet the needs of every student or employer."64.18    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read:64.19141.32 PENALTY.64.20    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 64.21to comply with this chapter shall be a separate violation. The office shall adopt rules 64.22establishing a list of civil penalties and the fine associated with each violation. Fines for 64.23violations shall not exceed $500 per day per violation. The director may assess fines for 64.24violations of a provision of this chapter. Each day's failure to comply with a provision 64.25of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed 64.26$500 per day per violation. Amounts received under this section must be deposited in the 64.27special revenue fund and are appropriated in fiscal years 2008 and 2009 for the purposes 64.28of this chapter.64.29    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read:64.30141.35 EXEMPTIONS.64.31    Sections 
         141.21 to 
         141.35 141.32 shall not apply to the following:64.32    (1) public postsecondary institutions;65.1    (2) private postsecondary institutions registered under sections 
         136A.61136A.615 65.2to 
         136A.71that are nonprofit, or that are for profit and registered under sections 136A.6165.3to 136A.71 as of December 31, 1998, or are approved to offer exclusively baccalaureate 65.4or postbaccalaureate programs;65.5    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 65.6public board of another state or foreign country;65.7    (4) private schools complying with the requirements of section 
         120A.22, subdivision 65.84
         ;65.9    (5) courses taught to students in a valid apprenticeship program taught by or 65.10required by a trade union;65.11    (6) schools exclusively engaged in training physically or mentally disabled persons 65.12for the state of Minnesota;65.13    (7) schools licensed by boards authorized under Minnesota law to issue licenses;65.14    (8) schools and educational programs, or training programs, contracted for by 65.15persons, firms, corporations, government agencies, or associations, for the training of their 65.16own employees, for which no fee is charged the employee;65.17    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 65.18or remedial subjects as determined by the office;65.19    (10) driver training schools and instructors as defined in section 171.33, subdivisions 65.201 and 2;65.21    (11) classes, courses, or programs conducted by a bona fide trade, professional, or 65.22fraternal organization, solely for that organization's membership;65.23    (12) (11) programs in the fine arts provided by organizations exempt from taxation 65.24under section 
         290.05 and registered with the attorney general under chapter 309. For 65.25the purposes of this clause, "fine arts" means activities resulting in artistic creation or 65.26artistic performance of works of the imagination which are engaged in for the primary 65.27purpose of creative expression rather than commercial sale or employment. In making 65.28this determination the office may seek the advice and recommendation of the Minnesota 65.29Board of the Arts;65.30    (13) (12) classes, courses, or programs intended to fulfill the continuing education 65.31requirements for licensure or certification in a profession, that have been approved by 65.32a legislatively or judicially established board or agency responsible for regulating the 65.33practice of the profession, and that are offered exclusively to an individual practicing 65.34the profession;66.1    (14) (13) classes, courses, or programs intended to prepare students to sit for 66.2undergraduate, graduate, postgraduate, or occupational licensing and occupational 66.3entrance examinations;66.4    (15) (14) classes, courses, or programs providing 16 or fewer clock hours of 66.5instruction that are not part of the curriculum for an occupation or entry level employment;66.6    (16) (15) classes, courses, or programs providing instruction in personal 66.7development, modeling, or acting;66.8    (17) (16) training or instructional programs, in which one instructor teaches an 66.9individual student, that are not part of the curriculum for an occupation or are not intended 66.10to prepare a person for entry level employment; and66.11    (18) (17) schools with no physical presence in Minnesota, as determined by the 66.12office, engaged exclusively in offering distance instruction that are located in and 66.13regulated by other states or jurisdictions.66.14    Sec. 33. [141.37] EXEMPTION; RELIGIOUS SCHOOLS.66.15    Subdivision 1.Exemption.Any school or any department or branch of a school: 66.16    (1) which is substantially owned, operated, or supported by a bona fide church 66.17or religious organization; 66.18    (2) whose programs are primarily designed for, aimed at, and attended by persons 66.19who sincerely hold or seek to learn the particular religious faith or beliefs of that church or 66.20religious organization; and 66.21    (3) whose programs are primarily intended to prepare its students to become 66.22ministers of, to enter into some other vocation closely related to, or to conduct their lives 66.23in consonance with the particular faith of that church or religious organization,66.24is exempt from the provisions of sections 141.21 to 141.32.66.25    Subd. 2.Limitations.(a) An exemption shall not extend to any school, department 66.26or branch of a school, or program of a school which through advertisements or solicitations 66.27represents to any students or prospective students that the school, its aims, goals, missions, 66.28purposes, or programs are different from those described in subdivision 1.66.29    (b) An exemption shall not extend to any school which represents to any student or 66.30prospective student that the major purpose of its programs is to:66.31    (1) prepare the student for a vocation not closely related to that particular religious 66.32faith; or66.33    (2) provide the student with a general educational program recognized by other 66.34schools or the broader educational, business, or social community as being substantially 66.35equivalent to the educational programs offered by schools or departments or branches of 67.1schools which are not religious in nature and are not exempt from chapter 141 and from 67.2rules adopted pursuant under this chapter.67.3    Subd. 3.Scope.Nothing in this chapter or the rules adopted under it shall be 67.4interpreted as permitting the office to determine the truth or falsity of any particular set 67.5of religious beliefs.67.6    Subd. 4.Descriptive language required.Any certificate, diploma, degree, or other 67.7formal recognition awarded upon completion of any religiously exempt program shall 67.8include such descriptive language as to make the religious nature of the award clear.67.9    Sec. 34. EFFECTIVE DATE; TRANSITION PROCESS.67.10    Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71, 67.11shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes, 67.12chapter 141, that qualify for private institution registration after July 1, 2007, shall apply 67.13for and complete the process for registration prior to the expiration of their current private 67.14career school license. Schools currently registered as private institutions pursuant to 67.15Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private 67.16career school license after August 1, 2007, shall apply for and complete the process for 67.17licensure prior to the expiration of the current registration, but in any event no later than 67.18December 31, 2007. The office is authorized to extend existing license or registration for a 67.19reasonable period of time to allow for the completion of the new processes when necessary.