SF 1989

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

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

1.1A bill for an act 1.2relating to higher education; appropriating money; 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 1 1.30HIGHER EDUCATION APPROPRIATIONS 1.31 Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end 1.32     new text begin The amounts shown in this section summarize direct appropriations, by fund, made new text end 1.33 new text begin in this article. new text end 2.1 new text begin 2008 new text end new text begin 2009 new text end new text begin Total new text end 2.2 new text begin General new text end new text begin $ new text end new text begin 1,555,448,000 new text end new text begin $ new text end new text begin 1,638,178,000 new text end new text begin $ new text end new text begin 3,193,626,000 new text end 2.3 new text begin Health Care Access new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end new text begin 4,314,000 new text end 2.4 new text begin Total new text end new text begin $ new text end new text begin 1,557,605,000 new text end new text begin $ new text end new text begin 1,640,335,000 new text end new text begin $ new text end new text begin 3,197,940,000 new text end 2.5 Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end 2.6     new text begin The sums shown in the columns marked "Appropriations" are appropriated to the new text end 2.7 new text begin agencies and for the purposes specified in this article. The appropriations are from the new text end 2.8 new text begin general fund, or another named fund, and are available for the fiscal years indicated new text end 2.9 new text begin for each purpose. The figures "2008" and "2009" used in this article mean that the new text end 2.10 new text begin appropriations listed under them are available for the fiscal year ending June 30, 2008, or new text end 2.11 new text begin June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal new text end 2.12 new text begin year 2009. "The biennium" is fiscal years 2008 and 2009. new text end 2.13 new text begin APPROPRIATIONS new text end 2.14 new text begin Available for the Year new text end 2.15 new text begin Ending June 30 new text end 2.16 new text begin 2008 new text end new text begin 2009 new text end 2.17 2.18 Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER new text end new text begin EDUCATION new text end 2.19 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 197,933,000 new text end new text begin $ new text end new text begin 198,654,000 new text end 2.20 new text begin The amounts that may be spent for each new text end 2.21 new text begin purpose are specified in the following new text end 2.22 new text begin subdivisions. new text end 2.23 new text begin Subd. 2. new text end new text begin Minnesota GI Bill new text end new text begin 10,000,000 new text end new text begin 10,000,000 new text end 2.24 new text begin For grants to eligible veterans or the eligible new text end 2.25 new text begin spouses and children of veterans as provided new text end 2.26 new text begin under Minnesota Statutes, section 197.791. new text end 2.27 new text begin Of this appropriation, $152,000 the first new text end 2.28 new text begin year and $104,000 the second year are for new text end 2.29 new text begin the administrative costs of operating this new text end 2.30 new text begin program. For the 2010-2011 biennium, new text end 2.31 new text begin the base for this program's administrative new text end 2.32 new text begin costs must be included within the agency new text end 2.33 new text begin administration program activity. new text end 2.34 new text begin Subd. 3. new text end new text begin State Grants new text end new text begin 150,154,000 new text end new text begin 151,124,000 new text end 3.1 new text begin If the appropriation in this subdivision for new text end 3.2 new text begin either year is insufficient, the appropriation new text end 3.3 new text begin for the other year is available for it. new text end 3.4 new text begin For the biennium, the tuition maximum for new text end 3.5 new text begin students in four-year programs is $9,957 in new text end 3.6 new text begin each year for students in four-year programs, new text end 3.7 new text begin and for students in two-year programs, is new text end 3.8 new text begin $4,717 in the first year and $4,859 in the new text end 3.9 new text begin second year. new text end 3.10 new text begin This appropriation sets the living and new text end 3.11 new text begin miscellaneous expense allowance at $6,241 new text end 3.12 new text begin each year. new text end 3.13 new text begin Subd. 4. new text end new text begin Safety Officers Survivors new text end new text begin 100,000 new text end new text begin 100,000 new text end 3.14 new text begin This appropriation is to provide educational new text end 3.15 new text begin benefits under Minnesota Statutes, section new text end 3.16 new text begin 299A.45, to dependent children under age 23 new text end 3.17 new text begin and to the spouses of public safety officers new text end 3.18 new text begin killed in the line of duty. new text end 3.19 new text begin If the appropriation in this subdivision for new text end 3.20 new text begin either year is insufficient, the appropriation new text end 3.21 new text begin for the other year is available for it. new text end 3.22 new text begin Subd. 5. new text end new text begin Interstate Tuition Reciprocity new text end new text begin 2,000,000 new text end new text begin 2,000,000 new text end 3.23 new text begin If the appropriation in this subdivision for new text end 3.24 new text begin either year is insufficient, the appropriation new text end 3.25 new text begin for the other year is available to meet new text end 3.26 new text begin reciprocity contract obligations. new text end 3.27 new text begin Subd. 6. new text end new text begin State Work Study new text end new text begin 12,444,000 new text end new text begin 12,444,000 new text end 3.28 new text begin Subd. 7. new text end new text begin Child Care Grants new text end new text begin 4,934,000 new text end new text begin 4,934,000 new text end 3.29 new text begin Subd. 8. new text end new text begin Minitex new text end new text begin 5,881,000 new text end new text begin 5,881,000 new text end 3.30 new text begin Subd. 9. new text end new text begin MnLINK Gateway new text end new text begin 400,000 new text end new text begin 400,000 new text end 3.31 new text begin Subd. 10. new text end new text begin Learning Network of Minnesota new text end new text begin 4,800,000 new text end new text begin 4,800,000 new text end 3.32 new text begin Subd. 11. new text end new text begin Minnesota College Savings Plan new text end new text begin 1,020,000 new text end new text begin 1,020,000 new text end 4.1 new text begin Subd. 12. new text end new text begin Midwest Higher Education Compact new text end new text begin 90,000 new text end new text begin 90,000 new text end 4.2 new text begin Subd. 13. new text end new text begin Other Small Programs new text end new text begin 1,960,000 new text end new text begin 1,670,000 new text end 4.3 new text begin This appropriation includes funding for new text end 4.4 new text begin postsecondary service learning, student and new text end 4.5 new text begin parent information, get ready, outreach, and new text end 4.6 new text begin intervention for college attendance programs. new text end 4.7 new text begin $265,000 each year is for grants to increase new text end 4.8 new text begin campus-community collaboration and service new text end 4.9 new text begin learning statewide, including operations of new text end 4.10 new text begin the Minnesota campus compact, grants to new text end 4.11 new text begin member institutions and grants for member new text end 4.12 new text begin institution initiatives. For every $1 in state new text end 4.13 new text begin funding, grant recipients must contribute $2 new text end 4.14 new text begin in campus or community-based support. new text end 4.15 new text begin $100,000 each year is for a grant to the new text end 4.16 new text begin Loan Repayment Assistance Program new text end 4.17 new text begin of Minnesota, Inc. for loan repayment new text end 4.18 new text begin assistance awards. new text end 4.19 new text begin $500,000 each year is for the teacher new text end 4.20 new text begin education and compensation helps (TEACH) new text end 4.21 new text begin and the Minnesota early childhood teacher new text end 4.22 new text begin retention programs in Minnesota Statutes, new text end 4.23 new text begin section 136A.126. This is a onetime new text end 4.24 new text begin appropriation. new text end 4.25 new text begin $250,000 in the first year is for a grant to new text end 4.26 new text begin Augsburg College for the purpose of its new text end 4.27 new text begin Step UP program to provide educational new text end 4.28 new text begin opportunities to chemically dependent new text end 4.29 new text begin students and to work with other public new text end 4.30 new text begin and private colleges in Minnesota to help new text end 4.31 new text begin replicate this program. This is a onetime new text end 4.32 new text begin appropriation. new text end 4.33 new text begin $40,000 in the first year is for a grant to new text end 4.34 new text begin the Washington Center for Internships and new text end 5.1 new text begin Academic Seminars for a pilot program new text end 5.2 new text begin for scholarships for students enrolling in a new text end 5.3 new text begin Minnesota four-year college or university new text end 5.4 new text begin beginning in the fall semester of 2007. The new text end 5.5 new text begin grant is available only with a dollar-for-dollar new text end 5.6 new text begin match from nonstate sources. new text end 5.7 5.8 5.9 new text begin Subd. 14. new text end new text begin Access to College and Helping new text end new text begin Individuals Everywhere Value Education and new text end new text begin Rural Pilot Programs new text end new text begin 1,000,000 new text end new text begin 1,000,000 new text end 5.10 new text begin For Access to College and Helping new text end 5.11 new text begin Individuals Everywhere Value Education new text end 5.12 new text begin pilot projects that provide distance-learning new text end 5.13 new text begin opportunities through the Minnesota State new text end 5.14 new text begin Colleges and Universities for high school new text end 5.15 new text begin students living in remote and underserved new text end 5.16 new text begin areas where the school district lacks new text end 5.17 new text begin the resources to provide academically new text end 5.18 new text begin challenging educational opportunities, new text end 5.19 new text begin including Advanced Placement and new text end 5.20 new text begin International Baccalaureate programs. new text end 5.21 new text begin Students who successfully complete a course new text end 5.22 new text begin must receive college credit at no cost to the new text end 5.23 new text begin student or the participating school district. new text end 5.24 new text begin The office must report to the committees of new text end 5.25 new text begin the legislature with responsibility for higher new text end 5.26 new text begin education finance by January 15, 2009, on the new text end 5.27 new text begin program outcomes with recommendations on new text end 5.28 new text begin continuing and expanding the program. new text end 5.29 5.30 new text begin Subd. 15. new text end new text begin United Family Medicine Residency new text end new text begin Program new text end new text begin 360,000 new text end new text begin 360,000 new text end 5.31 new text begin For a grant to the united family medicine new text end 5.32 new text begin residency program. This appropriation new text end 5.33 new text begin must be used to support up to 18 resident new text end 5.34 new text begin physicians each year in family practice at new text end 5.35 new text begin united family medicine residency programs new text end 5.36 new text begin and must prepare doctors to practice family new text end 6.1 new text begin care medicine in underserved rural and new text end 6.2 new text begin urban areas of the state. The legislature new text end 6.3 new text begin intends this program to improve health new text end 6.4 new text begin care in underserved communities, provide new text end 6.5 new text begin affordable access to appropriate medical new text end 6.6 new text begin care, and manage the treatment of patients in new text end 6.7 new text begin a more cost-effective manner. new text end 6.8 new text begin Subd. 16. new text end new text begin Agency Administration new text end new text begin 2,690,000 new text end new text begin 2,731,000 new text end 6.9 new text begin Of this appropriation, $39,000 the first new text end 6.10 new text begin year and $80,000 the second year are for new text end 6.11 new text begin compensation-related costs associated with new text end 6.12 new text begin the delivery of the office's services and new text end 6.13 new text begin programs. new text end 6.14 new text begin Subd. 17. new text end new text begin Balances Forward new text end 6.15 new text begin A balance in the first year under this section new text end 6.16 new text begin does not cancel, but is available for the new text end 6.17 new text begin second year. new text end 6.18 new text begin Subd. 18. new text end new text begin Transfers new text end 6.19 new text begin The Minnesota Office of Higher Education new text end 6.20 new text begin may transfer unencumbered balances from new text end 6.21 new text begin the appropriations in subdivisions 2 to 15 to new text end 6.22 new text begin the state grant appropriation, the safety officer new text end 6.23 new text begin survivors appropriation, the interstate tuition new text end 6.24 new text begin reciprocity appropriation, the Minnesota new text end 6.25 new text begin college savings plan appropriation, the child new text end 6.26 new text begin care appropriation, and the state work study new text end 6.27 new text begin appropriation. new text end 6.28 new text begin Subd. 19. new text end new text begin Reporting new text end 6.29 new text begin (a) By November 1 and February 15, the new text end 6.30 new text begin Minnesota Office of Higher Education new text end 6.31 new text begin must provide updated state grant spending new text end 6.32 new text begin projections, taking into account the most new text end 6.33 new text begin current and projected enrollment and tuition new text end 6.34 new text begin and fee information, economic conditions, new text end 7.1 new text begin and other relevant factors. Before submitting new text end 7.2 new text begin state grant spending projections, the office new text end 7.3 new text begin must meet and consult with representatives of new text end 7.4 new text begin public and private postsecondary education, new text end 7.5 new text begin the Department of Finance, the governor's new text end 7.6 new text begin office, legislative staff, and financial aid new text end 7.7 new text begin administrators. new text end 7.8 new text begin (b) The Minnesota Office of Higher new text end 7.9 new text begin Education shall report to the higher education new text end 7.10 new text begin divisions of the house and senate finance new text end 7.11 new text begin committees on participation in postsecondary new text end 7.12 new text begin education by income, and persistence and new text end 7.13 new text begin graduation rates of state grant recipients new text end 7.14 new text begin compared to students who did not receive new text end 7.15 new text begin state grants. The office is authorized to match new text end 7.16 new text begin individual student data from the student new text end 7.17 new text begin record enrollment database with individual new text end 7.18 new text begin student data from the state grant database on new text end 7.19 new text begin data elements necessary to perform the study. new text end 7.20 7.21 7.22 Sec. 4. new text begin BOARD OF TRUSTEES OF THE new text end new text begin MINNESOTA STATE COLLEGES AND new text end new text begin UNIVERSITIES new text end 7.23 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 662,388,000 new text end new text begin $ new text end new text begin 698,288,000 new text end 7.24 new text begin The amounts that may be spent for each new text end 7.25 new text begin purpose are specified in the following new text end 7.26 new text begin subdivisions. new text end 7.27 7.28 new text begin Subd. 2. new text end new text begin Central Office and Shared Services new text end new text begin Unit new text end new text begin $ new text end new text begin 34,170,550 new text end new text begin $ new text end new text begin 34,170,550 new text end 7.29 new text begin For the office of the chancellor and the shared new text end 7.30 new text begin services division. new text end 7.31 new text begin Subd. 3. new text end new text begin Operations and Maintenance new text end new text begin $ new text end new text begin 628,217,450 new text end new text begin $ new text end new text begin 664,118,000 new text end 7.32 new text begin (a) This appropriation includes funding new text end 7.33 new text begin for the board's initiatives on recruiting and new text end 7.34 new text begin retaining underrepresented students, strategic new text end 8.1 new text begin educational advancements, STEM initiatives, new text end 8.2 new text begin and infrastructure and technology, and for new text end 8.3 new text begin the costs of inflation. This appropriation new text end 8.4 new text begin also includes funding to reduce the tuition new text end 8.5 new text begin rate increase to two percent in the first new text end 8.6 new text begin year and zero in the second year from the new text end 8.7 new text begin board-approved plan of a four percent annual new text end 8.8 new text begin increase. new text end 8.9 new text begin (b) Appropriations for technology and new text end 8.10 new text begin infrastructure under this subdivision must new text end 8.11 new text begin not be used to increase permanent positions new text end 8.12 new text begin in the office of the chancellor or the shared new text end 8.13 new text begin services office. Any new positions funded new text end 8.14 new text begin from the technology and infrastructure new text end 8.15 new text begin appropriation must be at a campus. new text end 8.16 new text begin (c) $400,000 each year is for new text end 8.17 new text begin community-based energy development new text end 8.18 new text begin pilot projects at Mesabi Range Technical new text end 8.19 new text begin and Community College, the Minnesota new text end 8.20 new text begin West Community and Technical College, new text end 8.21 new text begin and Riverland Community College. Each new text end 8.22 new text begin campus must establish partnerships for new text end 8.23 new text begin community-based energy development pilot new text end 8.24 new text begin projects that involve students and faculty. An new text end 8.25 new text begin allocation for the pilot project is available new text end 8.26 new text begin to the participating institutions and the new text end 8.27 new text begin partnerships for the biennium ending June new text end 8.28 new text begin 30, 2009. new text end 8.29 new text begin (d) $750,000 in the first year is for a modular new text end 8.30 new text begin clean-room research and training facility new text end 8.31 new text begin at St. Paul College. This is a onetime new text end 8.32 new text begin appropriation and is available until expended. new text end 8.33 new text begin (e) $300,000 the first year is for a grant to new text end 8.34 new text begin the Range Association of Municipalities new text end 8.35 new text begin and Schools for a study of student demand new text end 9.1 new text begin and employer needs for higher education in new text end 9.2 new text begin the Mesabi Range region of northeastern new text end 9.3 new text begin Minnesota including the cities of Grand new text end 9.4 new text begin Rapids through Eveleth to Ely. The new text end 9.5 new text begin association must coordinate and contract for new text end 9.6 new text begin a study in cooperation with the Board of new text end 9.7 new text begin Regents of the University of Minnesota and new text end 9.8 new text begin the Board of Trustees of the Minnesota State new text end 9.9 new text begin Colleges and Universities. The governing new text end 9.10 new text begin boards must advise on which of the identified new text end 9.11 new text begin needs can be met by University of Minnesota new text end 9.12 new text begin courses and which can be met by the new text end 9.13 new text begin Minnesota State Colleges and Universities, new text end 9.14 new text begin and which degree programs may be offered new text end 9.15 new text begin jointly. The final report must be submitted to new text end 9.16 new text begin the committees of the legislature responsible new text end 9.17 new text begin for higher education finance by January 15, new text end 9.18 new text begin 2008, with recommendations and plans for new text end 9.19 new text begin the region. new text end 9.20 new text begin (f) $120,000 in each year is for the Cook new text end 9.21 new text begin County Higher Education Board to provide new text end 9.22 new text begin educational programs and academic support new text end 9.23 new text begin services. The base appropriation for this new text end 9.24 new text begin program is $120,000 in each year of the new text end 9.25 new text begin biennium ending June 30, 2011. new text end 9.26 new text begin (g) $2,000,000 the first year and $1,000,000 new text end 9.27 new text begin the second year are for a pilot project with new text end 9.28 new text begin the Northeast Minnesota Higher Education new text end 9.29 new text begin District and high schools in its area. Up to new text end 9.30 new text begin $1,200,000 of the first year appropriation new text end 9.31 new text begin must be used to purchase equipment that is new text end 9.32 new text begin necessary to reestablish a technical education new text end 9.33 new text begin curriculum in the area high schools to new text end 9.34 new text begin provide the students with the technical new text end 9.35 new text begin skills necessary for the workforce. Students new text end 9.36 new text begin from area high schools may also access new text end 10.1 new text begin the facilities and faculty of the Northeast new text end 10.2 new text begin Minnesota Higher Education District new text end 10.3 new text begin for state-of-the-art technical education new text end 10.4 new text begin opportunities, including MnSCU's 2+2 new text end 10.5 new text begin Pathways initiative. $1,000,000 is added to new text end 10.6 new text begin the base for this project. new text end 10.7 new text begin (h) $50,000 in the first year is for St. Paul new text end 10.8 new text begin College to collaborate with the United Auto new text end 10.9 new text begin Workers Local 879 to purchase a Ford new text end 10.10 new text begin Ranger pickup truck to retrofit to run on a new text end 10.11 new text begin battery-powered motor. This vehicle must new text end 10.12 new text begin be retrofitted to serve as a prototype that new text end 10.13 new text begin could be mass-produced at the St. Paul Ford new text end 10.14 new text begin assembly plant. new text end 10.15 new text begin (i) $100,000 each year is for a grant to a new text end 10.16 new text begin Minnesota public postsecondary institution new text end 10.17 new text begin with a total student enrollment under 7,000 new text end 10.18 new text begin students, that has an existing women's new text end 10.19 new text begin hockey team competing in Division I in the new text end 10.20 new text begin Western Collegiate Hockey Association. new text end 10.21 new text begin The institution may use the grant for new text end 10.22 new text begin equipment, facility improvements, travel and new text end 10.23 new text begin compensation for coaches, trainers, and other new text end 10.24 new text begin necessary personnel. new text end 10.25 new text begin (j) $450,000 each year is to establish a center new text end 10.26 new text begin for workforce and economic development new text end 10.27 new text begin at the Mesabi Range Community and new text end 10.28 new text begin Technical College and to enhance eFolio new text end 10.29 new text begin Minnesota. The board, in cooperation with new text end 10.30 new text begin the Iron Range Resources and Rehabilitation new text end 10.31 new text begin Board (IRRRB) and the Department of new text end 10.32 new text begin Employment and Economic Development, new text end 10.33 new text begin must establish the center to provide on-site new text end 10.34 new text begin and Internet-based support and technical new text end 10.35 new text begin assistance to users of the state's eFolio new text end 11.1 new text begin Minnesota system to promote workforce and new text end 11.2 new text begin economic development. The center must new text end 11.3 new text begin assist local economic development agencies new text end 11.4 new text begin and officials to enable them to access new text end 11.5 new text begin workforce information generated through the new text end 11.6 new text begin eFolio Minnesota system. The board must new text end 11.7 new text begin enhance the eFolio Minnesota system as new text end 11.8 new text begin necessary to serve these purposes. The center new text end 11.9 new text begin must report annually to the IRRRB and the new text end 11.10 new text begin Department of Employment and Economic new text end 11.11 new text begin Development on the outcomes of the center's new text end 11.12 new text begin activities. new text end 11.13 new text begin (k) $1,000,000 the first year is to identify new text end 11.14 new text begin and improve on practices for selecting and new text end 11.15 new text begin purchasing textbooks and course materials new text end 11.16 new text begin that are used by students. The board, in new text end 11.17 new text begin collaboration with the Minnesota State new text end 11.18 new text begin University Student Association (MSUSA) new text end 11.19 new text begin and the Minnesota State College Student new text end 11.20 new text begin Association (MSCSA) must develop new text end 11.21 new text begin and implement pilot projects with this new text end 11.22 new text begin appropriation to address the financial burden new text end 11.23 new text begin that textbook prices and requirements place new text end 11.24 new text begin on students. These projects may include new text end 11.25 new text begin textbook rental programs, cooperative new text end 11.26 new text begin purchasing efforts, training, and education new text end 11.27 new text begin and awareness programs for students and new text end 11.28 new text begin faculty on cost considerations and textbook new text end 11.29 new text begin options. The student associations must new text end 11.30 new text begin be fully involved in the development and new text end 11.31 new text begin implementation of any project using this new text end 11.32 new text begin appropriation. Each student association new text end 11.33 new text begin must vote to approve a project before it is new text end 11.34 new text begin implemented. MSUSA and MSCSA must new text end 11.35 new text begin report to the committees of the legislature new text end 11.36 new text begin responsible for higher education finance by new text end 12.1 new text begin February 15, 2009, on the success of the pilot new text end 12.2 new text begin projects. This money is available until June new text end 12.3 new text begin 30, 2009. new text end 12.4 new text begin Subd. 4. new text end new text begin Board Policies new text end 12.5 new text begin (a) The board must adopt a policy that allows new text end 12.6 new text begin students to add the cost of textbooks and new text end 12.7 new text begin required course materials purchased at a new text end 12.8 new text begin campus bookstore, owned by or operated new text end 12.9 new text begin under a contract with the campus, to the new text end 12.10 new text begin existing waivers or payment plans for tuition new text end 12.11 new text begin and fees. new text end 12.12 new text begin (b) The board must adopt a policy setting new text end 12.13 new text begin the maximum number of semester credits new text end 12.14 new text begin required for a baccalaureate degree at 120 new text end 12.15 new text begin semester credits or the equivalent and the new text end 12.16 new text begin number of semester credits required for an new text end 12.17 new text begin associate degree at 60 semester credits or the new text end 12.18 new text begin equivalent. new text end 12.19 12.20 Sec. 5. new text begin BOARD OF REGENTS OF THE new text end new text begin UNIVERSITY OF MINNESOTA new text end 12.21 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 696,082,000 new text end new text begin $ new text end new text begin 742,143,000 new text end 12.22 new text begin The amounts that may be spent for each new text end 12.23 new text begin purpose are specified in the following new text end 12.24 new text begin subdivisions. new text end 12.25 new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end new text begin 611,112,000 new text end new text begin 667,550,000 new text end 12.26 new text begin (a) This appropriation includes amounts for new text end 12.27 new text begin the board: new text end 12.28 new text begin (1) to make investments in the university's new text end 12.29 new text begin technology and related infrastructure; new text end 12.30 new text begin (2) to award faculty and staff compensation new text end 12.31 new text begin increases differentially; new text end 12.32 new text begin (3) for the board's health workforce and new text end 12.33 new text begin clinical sciences initiative; new text end 13.1 new text begin (4) initiatives in science and engineering; new text end 13.2 new text begin (5) initiatives relating to the environment, new text end 13.3 new text begin agriculture, and renewable energy; and new text end 13.4 new text begin (6) for advancing education, including an new text end 13.5 new text begin Ojibwe Indian language program on the new text end 13.6 new text begin Duluth campus. new text end 13.7 new text begin (b) $2,250,000 each year is to establish new text end 13.8 new text begin banded tuition at the Morris, Crookston, and new text end 13.9 new text begin Duluth campuses to reduce tuition costs for new text end 13.10 new text begin students. new text end 13.11 new text begin (c) $7,000,000 for the biennium is for new text end 13.12 new text begin scholarships to mitigate the effects of rising new text end 13.13 new text begin tuition on Minnesota students and families. new text end 13.14 new text begin This appropriation must be matched with new text end 13.15 new text begin $2 of nonstate money for each $1 of state new text end 13.16 new text begin money. new text end 13.17 new text begin (d) $12,404,000 in the second year is to new text end 13.18 new text begin reduce the proposed tuition rate increase. new text end 13.19 new text begin Any of this amount that is not used by the new text end 13.20 new text begin board to reduce tuition cancels to the general new text end 13.21 new text begin fund. new text end 13.22 new text begin (e) $300,000 the first year is for the Center new text end 13.23 new text begin for Transportation Studies to complete a new text end 13.24 new text begin study to assess public policy options for new text end 13.25 new text begin reducing the volume of greenhouse gases new text end 13.26 new text begin emitted from the transportation sector in new text end 13.27 new text begin Minnesota. The Center for Transportation new text end 13.28 new text begin Studies must report its preliminary findings new text end 13.29 new text begin to the legislature by February 1, 2008, and new text end 13.30 new text begin must issue its full report by June 1, 2008. new text end 13.31 new text begin This is a onetime appropriation. new text end 13.32 new text begin (f) $250,000 each year is to establish an India new text end 13.33 new text begin Center to improve and promote relations with new text end 13.34 new text begin India and Southeast Asia. The center must new text end 14.1 new text begin partner with public and private organizations new text end 14.2 new text begin in Minnesota to: new text end 14.3 new text begin (1) foster an understanding of the history, new text end 14.4 new text begin culture, and values of India; new text end 14.5 new text begin (2) serve as a resource and catalyst to new text end 14.6 new text begin promote economic, governmental, and new text end 14.7 new text begin academic pursuits involving India; and new text end 14.8 new text begin (3) facilitate educational and business new text end 14.9 new text begin exchanges and partnerships, collaborative new text end 14.10 new text begin research, and teaching and training activities new text end 14.11 new text begin for Minnesota students and teachers. new text end 14.12 new text begin The Board of Regents may establish an new text end 14.13 new text begin advisory council to facilitate the mission new text end 14.14 new text begin and objectives of the India Center and must new text end 14.15 new text begin report on the progress of the India Center by new text end 14.16 new text begin February 15, 2008, to the governor and chairs new text end 14.17 new text begin of the legislative committees responsible for new text end 14.18 new text begin higher education finance. This is a onetime new text end 14.19 new text begin appropriation. new text end 14.20 new text begin (g) $750,000 in the first year is to assist in new text end 14.21 new text begin the formation of the neighborhood alliance new text end 14.22 new text begin and for projects identified in section 8. The new text end 14.23 new text begin alliance, the Board of Regents, and the city of new text end 14.24 new text begin Minneapolis may cooperate on the projects new text end 14.25 new text begin and may use a public services of other entities new text end 14.26 new text begin to complete all or a portion of a project. new text end 14.27 new text begin (h) $300,000 the first year is to establish a new text end 14.28 new text begin Dakota language teacher training immersion new text end 14.29 new text begin program on the Twin Cities campus to new text end 14.30 new text begin prepare teachers to teach in Dakota language new text end 14.31 new text begin immersion programs. This is a onetime new text end 14.32 new text begin appropriation. new text end 14.33 new text begin (i) $400,000 each year is for the Minnesota new text end 14.34 new text begin Institute for Sustainable Agriculture to new text end 15.1 new text begin provide funds for on-station and on-farm new text end 15.2 new text begin field scale research and outreach to develop new text end 15.3 new text begin and test the agronomic and economic new text end 15.4 new text begin requirements of diverse strands of prairie new text end 15.5 new text begin plants and other perennials for bioenergy new text end 15.6 new text begin systems including but not limited to new text end 15.7 new text begin multiple species selection and establishment, new text end 15.8 new text begin ecological management between planting new text end 15.9 new text begin and harvest, harvest technologies, financial new text end 15.10 new text begin and agronomic risk management, farmer new text end 15.11 new text begin goal setting and adoption of technologies, new text end 15.12 new text begin integration of wildlife habitat into new text end 15.13 new text begin management approaches, evaluation of new text end 15.14 new text begin carbon and other benefits, and robust polices new text end 15.15 new text begin needed to induce farmer conversion on new text end 15.16 new text begin marginal lands. new text end 15.17 new text begin Subd. 3. new text end new text begin Health Care Access Fund new text end new text begin 2,157,000 new text end new text begin 2,157,000 new text end 15.18 new text begin This appropriation is from the health care new text end 15.19 new text begin access fund and is for primary care education new text end 15.20 new text begin initiatives. new text end 15.21 new text begin Subd. 4. new text end new text begin Special Appropriation new text end new text begin 65,813,000 new text end new text begin 65,436,000 new text end 15.22 new text begin (a) new text end new text begin Agriculture and Extension Service new text end new text begin 52,625,000 new text end new text begin 52,275,000 new text end 15.23 new text begin (1) For the Agricultural Experiment new text end 15.24 new text begin Station, Minnesota Extension Service. This new text end 15.25 new text begin appropriation includes funding to promote new text end 15.26 new text begin alternative livestock research and outreach new text end 15.27 new text begin at the Minnesota Institute for Sustainable new text end 15.28 new text begin Agriculture, and to promote sustainable and new text end 15.29 new text begin organic agricultural research and education. new text end 15.30 new text begin (2) This appropriation includes funding new text end 15.31 new text begin for research efforts that demonstrate a new text end 15.32 new text begin renewed emphasis on the needs of the state's new text end 15.33 new text begin production agriculture community and a new text end 15.34 new text begin continued focus on renewable energy derived new text end 16.1 new text begin from Minnesota biomass resources including new text end 16.2 new text begin agronomic crops, plant and animal wastes, new text end 16.3 new text begin and native plants or trees, with priority for new text end 16.4 new text begin extending the Minnesota vegetable growing new text end 16.5 new text begin season; fertilizer and soil fertility research new text end 16.6 new text begin and development; treating and curing human new text end 16.7 new text begin diseases utilizing plant and livestock cells; new text end 16.8 new text begin using biofuel production coproducts as new text end 16.9 new text begin feed for livestock; and a rapid agricultural new text end 16.10 new text begin response fund for current or emerging new text end 16.11 new text begin animal, plant, and insect problems affecting new text end 16.12 new text begin production or food safety. In addition, the new text end 16.13 new text begin appropriation may be used to secure a facility new text end 16.14 new text begin and retain current faculty levels for poultry new text end 16.15 new text begin research currently conducted at UMore Park. new text end 16.16 new text begin (3) In the area of renewable energy, priority new text end 16.17 new text begin should be given to projects pertaining to: new text end 16.18 new text begin biofuel and other energy production from new text end 16.19 new text begin small grains; alternative bioenergy crops and new text end 16.20 new text begin cropping systems; and growing, harvesting, new text end 16.21 new text begin and transporting biomass plant material. new text end 16.22 new text begin (4) This appropriation includes funding for new text end 16.23 new text begin the college of food, agricultural, and natural new text end 16.24 new text begin resources sciences to establish and maintain new text end 16.25 new text begin a statewide organic research and education new text end 16.26 new text begin initiative to provide leadership for organic new text end 16.27 new text begin agronomic, horticultural, livestock, and food new text end 16.28 new text begin systems research, education, and outreach new text end 16.29 new text begin and for the purchase of state-of-the-art new text end 16.30 new text begin laboratory, planting, tilling, harvesting, and new text end 16.31 new text begin processing equipment necessary for this new text end 16.32 new text begin project. new text end 16.33 new text begin (5) By February 1, 2009, the Board new text end 16.34 new text begin of Regents must report to the legislative new text end 16.35 new text begin committees with responsibility for agriculture new text end 17.1 new text begin and higher education finance on the research new text end 17.2 new text begin and initiatives under this paragraph. new text end 17.3 new text begin (6) The base appropriation is $51,775,000 new text end 17.4 new text begin each year of the biennium ending June 30, new text end 17.5 new text begin 2011. new text end 17.6 new text begin (b) new text end new text begin Health Sciences new text end new text begin 5,275,000 new text end new text begin 5,275,000 new text end 17.7 new text begin $346,000 each year is to support up to 12 new text end 17.8 new text begin resident physicians each year in the St. new text end 17.9 new text begin Cloud Hospital family practice residency new text end 17.10 new text begin program. The program must prepare doctors new text end 17.11 new text begin to practice primary care medicine in the rural new text end 17.12 new text begin areas of the state. The legislature intends new text end 17.13 new text begin this program to improve health care in rural new text end 17.14 new text begin communities, provide affordable access to new text end 17.15 new text begin appropriate medical care, and manage the new text end 17.16 new text begin treatment of patients in a more cost-effective new text end 17.17 new text begin manner. new text end 17.18 new text begin The remainder of this appropriation is for new text end 17.19 new text begin the rural physicians associates program, the new text end 17.20 new text begin Veterinary Diagnostic Laboratory, health new text end 17.21 new text begin sciences research, dental care, and the new text end 17.22 new text begin Biomedical Engineering Center. new text end 17.23 new text begin (c) new text end new text begin Institute of Technology new text end new text begin 1,387,000 new text end new text begin 1,387,000 new text end 17.24 new text begin For the Geological Survey and the talented new text end 17.25 new text begin youth mathematics program. new text end 17.26 new text begin (d) new text end new text begin System Specials new text end new text begin 6,526,000 new text end new text begin 6,526,000 new text end 17.27 new text begin For general research, student loans matching new text end 17.28 new text begin money, industrial relations education, new text end 17.29 new text begin Natural Resources Research Institute, Center new text end 17.30 new text begin for Urban and Regional Affairs, and the Bell new text end 17.31 new text begin Museum of Natural History. $100,000 is new text end 17.32 new text begin added to the base appropriation for industrial new text end 17.33 new text begin relations education. new text end 18.1 18.2 new text begin Subd. 5. new text end new text begin University of Minnesota and Mayo new text end new text begin Foundation Partnership new text end new text begin 17,000,000 new text end new text begin 7,000,000 new text end 18.3 new text begin For the direct and indirect expenses of the new text end 18.4 new text begin collaborative research partnership between new text end 18.5 new text begin the University of Minnesota and the Mayo new text end 18.6 new text begin Foundation for research in biotechnology new text end 18.7 new text begin and medical genomics. $7,000,000 is added new text end 18.8 new text begin to the base. This appropriation is available new text end 18.9 new text begin until expended. An annual report on the new text end 18.10 new text begin expenditure of these funds must be submitted new text end 18.11 new text begin to the governor and the chairs of the senate new text end 18.12 new text begin and house committees responsible for higher new text end 18.13 new text begin education and economic development by new text end 18.14 new text begin June 30 of each fiscal year. new text end 18.15 new text begin Subd. 6. new text end new text begin Academic Health Center new text end 18.16 new text begin The appropriation for Academic Health new text end 18.17 new text begin Center funding under Minnesota Statutes, new text end 18.18 new text begin section 297F.10, is $22,250,000 each year. new text end 18.19 Sec. 6. new text begin MAYO CLINIC new text end 18.20 new text begin Subdivision 1. new text end new text begin Total Appropriation new text end new text begin $ new text end new text begin 1,202,000 new text end new text begin $ new text end new text begin 1,250,000 new text end 18.21 new text begin The amounts that may be spent for each new text end 18.22 new text begin purpose are specified in the following new text end 18.23 new text begin subdivisions. new text end 18.24 new text begin Subd. 2. new text end new text begin Medical School new text end new text begin 591,000 new text end new text begin 615,000 new text end 18.25 new text begin The state of Minnesota must pay a capitation new text end 18.26 new text begin each year for each student who is a resident new text end 18.27 new text begin of Minnesota. The appropriation may be new text end 18.28 new text begin transferred between years of the biennium to new text end 18.29 new text begin accommodate enrollment fluctuations. The new text end 18.30 new text begin funding base for this program is $640,000 in new text end 18.31 new text begin fiscal year 2010 and $665,000 in fiscal year new text end 18.32 new text begin 2011. new text end 19.1 new text begin It is intended that during the biennium the new text end 19.2 new text begin Mayo Clinic use the capitation money to new text end 19.3 new text begin increase the number of doctors practicing in new text end 19.4 new text begin rural areas in need of doctors. new text end 19.5 19.6 new text begin Subd. 3. new text end new text begin Family Practice and Graduate new text end new text begin Residency Program new text end new text begin 611,000 new text end new text begin 635,000 new text end 19.7 new text begin The state of Minnesota must pay stipend new text end 19.8 new text begin support for up to 27 residents each year. The new text end 19.9 new text begin funding base for this program is $660,000 in new text end 19.10 new text begin fiscal year 2010 and $686,000 in fiscal year new text end 19.11 new text begin 2011. new text end 19.12    Sec. 7. new text begin [135A.035] ACCOMMODATIONS. new text end 19.13     new text begin The Board of Regents of the University of Minnesota is strongly encouraged not to new text end 19.14 new text begin authorize and the Board of Trustees of the Minnesota State Colleges and Universities may new text end 19.15 new text begin not authorize the use of funds appropriated by the legislature to modify any of its facilities new text end 19.16 new text begin or otherwise to accommodate the practices of a specific religious group unless the system new text end 19.17 new text begin makes an equal amount of funds appropriated by the legislature to that system available new text end 19.18 new text begin for any other religious group requesting modification of the system's facilities or other new text end 19.19 new text begin accommodation of that specific religious group's practices. new text end 19.20    Sec. 8. new text begin LEGISLATIVE COMMISSION ON POSTSECONDARY FUNDING. new text end 19.21     new text begin Subdivision 1. new text end new text begin Membership. new text end new text begin A 12-member legislative commission on new text end 19.22 new text begin postsecondary funding is established consisting of six members of the house of new text end 19.23 new text begin representatives appointed by the speaker and six members of the senate appointed by new text end 19.24 new text begin the Subcommittee on Committees of the Committee on Rules and Administration. The new text end 19.25 new text begin commission may elect a chair and other officers as necessary. new text end 19.26     new text begin Subd. 2. new text end new text begin Charge. new text end new text begin The commission must develop an alternative funding formula new text end 19.27 new text begin or funding method for postsecondary education that creates incentives for high quality new text end 19.28 new text begin postsecondary education while maintaining access for students. In developing the formula new text end 19.29 new text begin or funding method, the commission must consider and address: new text end 19.30     new text begin (1) both institutional aid and direct student aid; new text end 19.31     new text begin (2) the major cost drivers in postsecondary education, such as inflation and new text end 19.32 new text begin enrollment; new text end 19.33     new text begin (3) federal postsecondary funding and tax incentives for postsecondary education; new text end 19.34 new text begin and new text end 20.1     new text begin (4) funding the formula or funding method within the projected constraints on the new text end 20.2 new text begin state budget in the coming decade. new text end 20.3     new text begin Subd. 3. new text end new text begin Report. new text end new text begin The commission must report its recommendations to the house new text end 20.4 new text begin Division on Higher Education and Workforce Development Policy and Finance, and the new text end 20.5 new text begin senate Higher Education Budget and Policy Division by June 30, 2008. new text end 20.6     new text begin Subd. 4. new text end new text begin Expiration. new text end new text begin The commission expires June 30, 2008. new text end 20.7    Sec. 9. new text begin UNIVERSITY OF MINNESOTA MINNEAPOLIS AREA new text end 20.8 new text begin NEIGHBORHOOD ALLIANCE. new text end 20.9     new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms new text end 20.10 new text begin have the meanings given them. new text end 20.11     new text begin (b) "Alliance" means a representative body of the constituencies, including, but new text end 20.12 new text begin not limited to, the University of Minnesota, the city of Minneapolis, and the recognized new text end 20.13 new text begin neighborhood organizations and business associations referenced in the report. new text end 20.14     new text begin (c) "Board" means the Board of Regents of the University of Minnesota. new text end 20.15     new text begin (d) "Report" means the report and appendix entitled Moving Forward Together: new text end 20.16 new text begin University of Minnesota Minneapolis Area Neighborhood Impact Report, submitted to new text end 20.17 new text begin the legislature in February 2007. new text end 20.18     new text begin (e) "University partnership district" or "district" means the area located within the new text end 20.19 new text begin city that includes the neighborhoods of Cedar-Riverside, Marcy-Holmes, South East new text end 20.20 new text begin Como, Prospect Park, and University, as they are defined by the city, and the university's new text end 20.21 new text begin Minneapolis campus. new text end 20.22     new text begin (f) "Tier two impact zone" means the neighborhoods of northeast Minneapolis that new text end 20.23 new text begin house significant numbers of university students and staff. Transportation and housing new text end 20.24 new text begin policy analysis and planning must include these areas but they must not be included in new text end 20.25 new text begin the projects funded through the alliance. new text end 20.26     new text begin (g) "University" means the University of Minnesota. new text end 20.27     new text begin Subd. 2. new text end new text begin Alliance; functions. new text end new text begin The alliance may facilitate, initiate, or manage new text end 20.28 new text begin projects with the board, city, or other public or private entities that are intended to new text end 20.29 new text begin maintain the university partnership district as a viable place to study, research, and live. new text end 20.30 new text begin Projects may include, but are not limited to, those outlined in the report, as well as new text end 20.31 new text begin efforts to involve students in activities to maintain and improve the university partnership new text end 20.32 new text begin district; cooperative university and university partnership district long-term planning; and new text end 20.33 new text begin incentives to increase homeownership within the district with particular emphasis on new text end 20.34 new text begin employees of the university and of other major employers located within the district. new text end 21.1     new text begin Subd. 3. new text end new text begin Report. new text end new text begin The board must report to the legislature by January 15, 2009, on new text end 21.2 new text begin the expenditure of funds appropriated under section 3. new text end 21.3    Sec. 10. new text begin MINNESOTA OFFICE OF HIGHER EDUCATION FINANCIAL AID new text end 21.4 new text begin STUDY. new text end 21.5     new text begin The Minnesota Office of Higher Education must review and evaluate the existing new text end 21.6 new text begin financial aid programs that provide loans and grants to students in postsecondary education new text end 21.7 new text begin and the needs of the workforce for occupations that are currently or will be in demand. new text end 21.8 new text begin The study must evaluate how effective the financial aid programs are at linking the needs new text end 21.9 new text begin of the workforce with student need for financial aid. The study must also identify options new text end 21.10 new text begin for designing financial aid programs including loan forgiveness and loan repayment new text end 21.11 new text begin programs that target the needs of the workforce and provide incentives to students to new text end 21.12 new text begin pursue postsecondary education in fields with identified workforce needs. By February new text end 21.13 new text begin 15, 2008, the office must report to the legislative committees responsible for higher new text end 21.14 new text begin education and workforce development on the findings of the study and provide options new text end 21.15 new text begin and recommendations on how to deliver financial aid, provide incentives for students, new text end 21.16 new text begin and meet the needs of the workforce for occupations that include speech pathologists new text end 21.17 new text begin and other occupations with unmet need. new text end 21.18ARTICLE 2 21.19MINNESOTA GI BILL FOR VETERANS 21.20    Section 1. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to 21.21read: 21.22    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 21.23for: 21.24    (1) necessary state level administration of financial aid new text begin and Minnesota GI Bill new text end 21.25programs, including accounting, auditing, and disbursing state and federal financial aid 21.26funds, and reporting on financial aid programs to the governor and the legislature; 21.27    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 21.28and career schools, under sections 136A.61 to 136A.71 and chapter 141; 21.29    (3) administering the Learning Network of Minnesota; 21.30    (4) negotiating and administering reciprocity agreements; 21.31    (5) publishing and distributing financial aid information and materials, and other 21.32information and materials under section 136A.87, to students and parents; 22.1    (6) collecting and maintaining student enrollment and financial aid data and 22.2reporting data on students and postsecondary institutions to develop and implement a 22.3process to measure and report on the effectiveness of postsecondary institutions; 22.4    (7) administering the federal programs that affect students and institutions on a 22.5statewide basis; and 22.6    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 22.7administer the programs under its supervision. 22.8 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007, and applies to new text end 22.9 new text begin qualifying coursework taken on or after that date. new text end 22.10    Sec. 2. new text begin [197.791] MINNESOTA GI BILL PROGRAM. new text end 22.11     new text begin Subdivision 1. new text end new text begin Policy. new text end new text begin It is the policy of the state of Minnesota to provide new text end 22.12 new text begin postsecondary educational assistance to Minnesota veterans who have provided honorable new text end 22.13 new text begin service to this state and nation as members of the United States armed forces, whether new text end 22.14 new text begin in peacetime or in war, and to the spouses and children of Minnesota veterans who have new text end 22.15 new text begin become severely disabled or deceased during or as the direct result of military service. new text end 22.16     new text begin Subd. 2. new text end new text begin Definitions. new text end new text begin (a) The definitions in this subdivision apply to this section. new text end 22.17     new text begin (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise new text end 22.18 new text begin specified. new text end 22.19     new text begin (c) "Cost of attendance" for both undergraduate and graduate students has the new text end 22.20 new text begin meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2. new text end 22.21     new text begin (d) "Child" means a natural or adopted child of a person described in subdivision 5, new text end 22.22 new text begin paragraph (a), clause (1), item (i) or (ii). new text end 22.23     new text begin (e) "Director" means the director of the Minnesota Office of Higher Education. new text end 22.24     new text begin (f) "Eligible institution" means a postsecondary institution located in this state new text end 22.25 new text begin that either (1) is operated by this state; or (2) is operated publicly or privately and, as new text end 22.26 new text begin determined by the office, maintains academic standards substantially equivalent to those new text end 22.27 new text begin of comparable institutions operated in this state. new text end 22.28     new text begin (g) "Eligible student" means a person who: new text end 22.29     new text begin (1) if the student is an undergraduate student, has applied for the federal Pell Grant new text end 22.30 new text begin and the Minnesota State Grant; new text end 22.31     new text begin (2) is maintaining satisfactory academic progress as defined by the institution for new text end 22.32 new text begin students participating in federal Title IV programs; new text end 22.33     new text begin (3) is enrolled in an education program leading to a certificate, diploma, or degree new text end 22.34 new text begin at an eligible institution; new text end 23.1     new text begin (4) has applied for educational assistance under the Minnesota GI Bill program prior new text end 23.2 new text begin to the end of the academic term for which the assistance is being requested. new text end 23.3     new text begin (5) is in compliance with child support payment requirements under section new text end 23.4 new text begin 136A.121, subdivision 2, clause (5). new text end 23.5     new text begin (h) "Part-time student" means an undergraduate student enrolled for fewer than 12 new text end 23.6 new text begin credits in a semester or the equivalent, or a graduate student as defined by the student's new text end 23.7 new text begin eligible institution. new text end 23.8     new text begin (i) "Program" means the Minnesota GI Bill program established in this section, new text end 23.9 new text begin unless otherwise specified. new text end 23.10     new text begin (j) "Service-connected" has the meaning given by the United States Department new text end 23.11 new text begin of Veterans Affairs. new text end 23.12     new text begin (k) "Veteran" has the meaning given in section 197.447, and also includes a service new text end 23.13 new text begin member who has fulfilled the requirements for being a veteran but is still serving actively new text end 23.14 new text begin in the United States armed forces. new text end 23.15     new text begin Subd. 3. new text end new text begin Program established. new text end new text begin There is established a program to provide new text end 23.16 new text begin postsecondary educational assistance to eligible Minnesota veterans and to the children new text end 23.17 new text begin and spouses of deceased and severely disabled Minnesota veterans. This program may be new text end 23.18 new text begin cited as the "Minnesota GI Bill program." new text end 23.19     new text begin The director, in consultation with the commissioner and in cooperation with new text end 23.20 new text begin eligible postsecondary educational institutions, shall expend a biennial appropriation new text end 23.21 new text begin for the purpose of providing postsecondary educational assistance to eligible persons new text end 23.22 new text begin in accordance with this program. Each public postsecondary educational institution in new text end 23.23 new text begin the state must participate in the program and each private postsecondary educational new text end 23.24 new text begin institution in the state is encouraged to participate in the program. Any participating new text end 23.25 new text begin private institution may suspend or terminate its participation in the program at the end new text end 23.26 new text begin of any semester or other academic term. new text end 23.27     new text begin Subd. 4. new text end new text begin Duties; responsibilities. new text end new text begin (a) The director, in consultation with the new text end 23.28 new text begin commissioner, shall establish policies and procedures including, but not limited to, new text end 23.29 new text begin procedures for student application record keeping, information sharing, payment to new text end 23.30 new text begin participating eligible institutions, and other procedures the director considers appropriate new text end 23.31 new text begin and necessary for effective and efficient administration of the program established in new text end 23.32 new text begin this section. new text end 23.33     new text begin (b) The director, in consultation with the commissioner, may delegate part or new text end 23.34 new text begin all of the administrative procedures for the program to responsible representatives of new text end 23.35 new text begin participating eligible institutions. new text end 24.1     new text begin Subd. 5. new text end new text begin Eligibility. new text end new text begin (a) A person is eligible for educational assistance under this new text end 24.2 new text begin section if: new text end 24.3     new text begin (1) the person is: new text end 24.4     new text begin (i) a veteran who is serving or has served honorably in any branch or unit of the new text end 24.5 new text begin United States armed forces at any time on or after August 2, 1990; new text end 24.6     new text begin (ii) a nonveteran who has served honorably for a total of 16 years or more new text end 24.7 new text begin cumulatively as a member of the Minnesota national guard or any other active or reserve new text end 24.8 new text begin component of the United States armed forces, and any part of that service occurred on new text end 24.9 new text begin or after August 2, 1990; new text end 24.10     new text begin (iii) the surviving spouse or child of a person described in (i) or (ii) who has died as new text end 24.11 new text begin a direct result of that military service; or new text end 24.12     new text begin (iv) the spouse or child of a person described in (i) or (ii) who has a total new text end 24.13 new text begin and permanent service-connected disability as rated by the United States veterans new text end 24.14 new text begin administration; new text end 24.15     new text begin (2) the person described in clause (1), item (i) or (ii), had Minnesota as the person's new text end 24.16 new text begin state of residence at the time of the person's initial enlistment or any reenlistment in new text end 24.17 new text begin the United States armed forces; new text end 24.18     new text begin (3) the person receiving the educational assistance is a Minnesota resident, as new text end 24.19 new text begin defined in section 136A.101, subdivision 8; and new text end 24.20     new text begin (4) the person receiving the educational assistance is an eligible student. new text end 24.21     new text begin (b) A person's eligibility terminates when the person becomes eligible for benefits new text end 24.22 new text begin under section 135A.52. new text end 24.23     new text begin (c) As proof of honorable service and disability or death status for a veteran or new text end 24.24 new text begin service member, the director, by policy and in consultation with the commissioner, may new text end 24.25 new text begin require official documentation, including the person's federal form DD-214 or other official new text end 24.26 new text begin military discharge papers, correspondence from the United States veterans administration, new text end 24.27 new text begin birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed new text end 24.28 new text begin affidavits, proof of residency, proof of identity, or any other official documentation the new text end 24.29 new text begin director considers necessary to determine an applicant's eligibility status. new text end 24.30     new text begin (d) The director, in consultation with the commissioner, may deny eligibility or new text end 24.31 new text begin terminate benefits under this section to any person who has not provided sufficient proof of new text end 24.32 new text begin eligibility for the program. An applicant may appeal the director's eligibility determination new text end 24.33 new text begin in writing to the director at any time. The director must rule on any application or appeal new text end 24.34 new text begin within 30 days of receipt of all documentation that the director requires. Upon receiving new text end 24.35 new text begin an application with insufficient documentation, the director must notify the applicant new text end 24.36 new text begin within 30 days of receipt of the application that the application is being suspended pending new text end 25.1 new text begin receipt by the director of sufficient documentation from the applicant. The decision of the new text end 25.2 new text begin director regarding an appeal is final; however, an applicant whose appeal of an eligibility new text end 25.3 new text begin determination has been rejected by the director may submit an additional appeal of that new text end 25.4 new text begin determination in writing to the director at any time that the applicant is able to provide new text end 25.5 new text begin substantively significant additional information relating to the person's eligibility for the new text end 25.6 new text begin program. An approval of an applicant's eligibility by the director following an appeal by new text end 25.7 new text begin the applicant is not retroactively effective beyond the later of one year previously or the new text end 25.8 new text begin semester of the person's original application. new text end 25.9     new text begin Subd. 6. new text end new text begin Benefit amount. new text end new text begin (a) On approval by the director of an applicant's new text end 25.10 new text begin eligibility for the program, the applicant shall be awarded, on a funds-available basis, the new text end 25.11 new text begin educational assistance under the program for use at any time according to program rules new text end 25.12 new text begin at any eligible institution. Eligibility for the program terminates upon exhaustion of a new text end 25.13 new text begin person's benefits as specified in paragraph (c). new text end 25.14     new text begin (b) The amount of educational assistance in any semester or term for an eligible new text end 25.15 new text begin person must be determined by subtracting from the eligible person's cost of attendance new text end 25.16 new text begin at that eligible public institution, or in the case of an eligible private institution the cost new text end 25.17 new text begin of attendance for a comparable program at the Twin Cities campus of the University of new text end 25.18 new text begin Minnesota, the amount the person received or was eligible to receive in that semester new text end 25.19 new text begin or term from: new text end 25.20     new text begin (1) the federal Pell Grant; new text end 25.21     new text begin (2) the state grant under section 136A.121; and new text end 25.22     new text begin (3) any federal military or veterans educational benefits, including, but not limited new text end 25.23 new text begin to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program, new text end 25.24 new text begin vocational rehabilitation benefits, and any other federal benefits associated with the new text end 25.25 new text begin person's status as a veteran, except veterans disability payments from the United States new text end 25.26 new text begin Department of Veterans Affairs. new text end 25.27     new text begin (c) The amount of education assistance for any eligible person must not exceed any new text end 25.28 new text begin of the following amounts: new text end 25.29     new text begin (1) $1,250 per semester or term of enrollment, or in the case of a part-time student new text end 25.30 new text begin $625 per semester or term of enrollment; new text end 25.31     new text begin (2) $3,570 per state fiscal year; and new text end 25.32     new text begin (3) $10,000 total. new text end 25.33 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2007, and applies to new text end 25.34 new text begin qualifying coursework taken on or after that date. new text end 25.35    Sec. 3. new text begin ANNUAL REVIEW AND RECOMMENDATION. new text end 26.1     new text begin The commissioner of veterans affairs, in consultation with the director of higher new text end 26.2 new text begin education, must annually review veterans' participation level in and expenditures for the new text end 26.3 new text begin Minnesota GI Bill program in Minnesota Statutes, section 197.791, and, by January 15 new text end 26.4 new text begin each year, must make recommendations to the chairs of the senate and house committees new text end 26.5 new text begin having oversight responsibility for veterans affairs regarding adjustment of individual new text end 26.6 new text begin benefit levels and program funding. new text end 26.7ARTICLE 3 26.8RELATED HIGHER EDUCATION 26.9    Section 1. Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read: 26.10    Subd. 3. Minnesota Office of Higher Education. (a) General. Data sharing 26.11involving the Minnesota Office of Higher Education and other institutions is governed 26.12by sections new text begin section new text end 136A.05 and 136A.08, subdivision 8. 26.13    (b) Student financial aid. Data collected and used by the Minnesota Office of 26.14Higher Education on applicants for financial assistance are classified under section 26.15136A.162 . 26.16    (c) Minnesota college savings plan data. Account owner data, account data, and 26.17data on beneficiaries of accounts under the Minnesota college savings plan are classified 26.18under section 136G.05, subdivision 10. 26.19    (d) School financial records. Financial records submitted by schools registering 26.20with the Minnesota Office of Higher Education are classified under section 136A.64. 26.21    (e) Enrollment and financial aid data. Data collected from eligible institutions on 26.22student enrollment and federal and state financial aid are governed by sections 136A.121, 26.23subdivision 18, and 136A.1701, subdivision 11. 26.24    Sec. 2. Minnesota Statutes 2006, section 16B.70, is amended by adding a subdivision 26.25to read: 26.26     new text begin Subd. 4. new text end new text begin Construction management education surcharge and account. new text end new text begin (a) new text end 26.27 new text begin For nonresidential construction building permits, the surcharge under subdivision 1 new text end 26.28 new text begin is increased by an amount equal to one-quarter mill (.00025) of the fee or 25 cents, new text end 26.29 new text begin whichever amount is greater, and designated for and deposited in the construction new text end 26.30 new text begin management education account. new text end 26.31     new text begin (b) The construction management education account is created as an account in the new text end 26.32 new text begin special revenue fund, administered by the Minnesota Office of Higher Education for new text end 26.33 new text begin the purpose of enhancing construction management education in public postsecondary new text end 27.1 new text begin institutions. Funds in the account are appropriated in fiscal years 2008 and 2009 to the new text end 27.2 new text begin director of the Minnesota Office of Higher Education for the purposes of section 136A.127. new text end 27.3    Sec. 3. Minnesota Statutes 2006, section 41D.01, subdivision 1, is amended to read: 27.4    Subdivision 1. Establishment; membership. (a) The Minnesota Agriculture 27.5Education Leadership Council is established. The council is composed of 16 new text begin 17 new text end members 27.6as follows: 27.7    (1) the chair of the University of Minnesota agricultural education program; 27.8    (2) a representative of the commissioner of education; 27.9    (3) a representative of the Minnesota State Colleges and Universities recommended 27.10by the chancellor; 27.11    (4) the president and the president-elect of the Minnesota Association of Agriculture 27.12Educators; 27.13    (5) a representative of the Future Farmers of America Foundation; 27.14    (6) a representative of the commissioner of agriculture; 27.15    (7) the dean of the College of Agriculture, Food, and Environmental Sciences at the 27.16University of Minnesota; 27.17    (8) new text begin a representative of the Minnesota Private Colleges Council; new text end 27.18     new text begin (9) new text end two members representing agriculture education and agriculture business 27.19appointed by the governor; 27.20    (9) new text begin (10) new text end the chair of the senate Committee on Agriculture, General Legislation 27.21and Veterans Affairs; 27.22    (10) new text begin (11) new text end the chair of the house Committee on Agriculture; 27.23    (11) new text begin (12) new text end the ranking minority member of the senate Committee on Agriculture, 27.24General Legislation and Veterans Affairs, and a member of the senate Education 27.25Committee designated by the Subcommittee on Committees of the Committee on Rules 27.26and Administration; and 27.27    (12) new text begin (13) new text end the ranking minority member of the house Agriculture Committee, and a 27.28member of the house Education Committee designated by the speaker. 27.29    (b) An ex officio member of the council under paragraph (a), clause (1), (4), (7), 27.30(9), (10), (11), or (12) new text begin , or (13) new text end , may designate a permanent or temporary replacement 27.31member representing the same constituency. 27.32    Sec. 4. Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read: 27.33    Subd. 2. Revisions and reviews required. (a) The commissioner of education must 27.34revise and appropriately embed technology and information literacy standards consistent 28.1with recommendations from school media specialists into the state's academic standards 28.2and graduation requirements and implement a review cycle for state academic standards 28.3and related benchmarks, consistent with this subdivision. During each review cycle, the 28.4commissioner also must examine the alignment of each required academic standard and 28.5related benchmark with the knowledge and skills students need for college readiness and 28.6advanced work in the particular subject area. 28.7    (b) The commissioner in the 2006-2007 school year must revise and align the state's 28.8academic standards and high school graduation requirements in mathematics to require 28.9that students satisfactorily complete the revised mathematics standards, beginning in the 28.102010-2011 school year. Under the revised standards: 28.11    (1) students must satisfactorily complete an algebra I credit by the end of eighth 28.12grade; and 28.13    (2) students scheduled to graduate in the 2014-2015 school year or later must 28.14satisfactorily complete an algebra II credit or its equivalent. 28.15The commissioner also must ensure that the statewide mathematics assessments 28.16administered to students in grades 3 through 8 and 11 beginning in the 2010-2011 28.17school year are aligned with the state academic standards in mathematics. The statewide 28.1811th grade mathematics test administered to students under clause (2) beginning in 28.19the 2013-2014 school year must include algebra II test items that are aligned with 28.20corresponding state academic standards in mathematics. new text begin The commissioner, in new text end 28.21 new text begin collaboration with the Minnesota State Colleges and Universities, must ensure that passing new text end 28.22 new text begin score for the statewide 11th grade mathematics test represents readiness for college so that new text end 28.23 new text begin a student who achieves a passing score on this test, upon graduation, is immediately ready new text end 28.24 new text begin to take college courses for college credit in a two-year or a four-year institution, consistent new text end 28.25 new text begin with section 135A.104. new text end The commissioner must implement a review of the academic 28.26standards and related benchmarks in mathematics beginning in the 2015-2016 school year. 28.27    (c) The commissioner in the 2007-2008 school year must revise and align the state's 28.28academic standards and high school graduation requirements in the arts to require that 28.29students satisfactorily complete the revised arts standards beginning in the 2010-2011 28.30school year. The commissioner must implement a review of the academic standards and 28.31related benchmarks in arts beginning in the 2016-2017 school year. 28.32    (d) The commissioner in the 2008-2009 school year must revise and align the state's 28.33academic standards and high school graduation requirements in science to require that 28.34students satisfactorily complete the revised science standards, beginning in the 2011-2012 28.35school year. Under the revised standards, students scheduled to graduate in the 2014-2015 28.36school year or later must satisfactorily complete a chemistry or physics credit. The 29.1commissioner must implement a review of the academic standards and related benchmarks 29.2in science beginning in the 2017-2018 school year. 29.3    (e) The commissioner in the 2009-2010 school year must revise and align the state's 29.4academic standards and high school graduation requirements in language arts to require 29.5that students satisfactorily complete the revised language arts standards beginning in the 29.62012-2013 school year. new text begin The commissioner, in collaboration with the Minnesota State new text end 29.7 new text begin Colleges and Universities, must ensure that the passing score for the statewide tenth new text end 29.8 new text begin grade reading and language arts test represents readiness for college so that a student who new text end 29.9 new text begin achieves a passing score on this test, upon graduation, is immediately ready to take college new text end 29.10 new text begin courses for college credit in a two-year or a four-year institution, consistent with section new text end 29.11 new text begin 135A.104. new text end The commissioner must implement a review of the academic standards and 29.12related benchmarks in language arts beginning in the 2018-2019 school year. 29.13    (f) The commissioner in the 2010-2011 school year must revise and align the state's 29.14academic standards and high school graduation requirements in social studies to require 29.15that students satisfactorily complete the revised social studies standards beginning in the 29.162013-2014 school year. The commissioner must implement a review of the academic 29.17standards and related benchmarks in social studies beginning in the 2019-2020 school year. 29.18    (g) School districts and charter schools must revise and align local academic 29.19standards and high school graduation requirements in health, physical education, world 29.20languages, and career and technical education to require students to complete the revised 29.21standards beginning in a school year determined by the school district or charter school. 29.22School districts and charter schools must formally establish a periodic review cycle for 29.23the academic standards and related benchmarks in health, physical education, world 29.24languages, and career and technical education. 29.25    Sec. 5. Minnesota Statutes 2006, section 120B.024, is amended to read: 29.26120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS. 29.27    (a) Students beginning 9th grade in the 2004-2005 school year and later must 29.28successfully complete the following high school level course credits for graduation: 29.29    (1) four credits of language arts; 29.30    (2) three credits of mathematics, encompassing at least algebra, geometry, statistics, 29.31and probability sufficient to satisfy the academic standard; 29.32    (3) three credits of science, including at least one credit in biology; 29.33    (4) three and one-half credits of social studies, encompassing at least United 29.34States history, geography, government and citizenship, world history, and economics or 29.35three credits of social studies encompassing at least United States history, geography, 30.1government and citizenship, and world history, and one-half credit of economics taught in 30.2a school's social studies, agriculture education, or business department; 30.3    (5) one credit in the arts; and 30.4    (6) a minimum of seven elective course credits. 30.5    A course credit is equivalent to a student successfully completing an academic 30.6year of study or a student mastering the applicable subject matter, as determined by the 30.7local school district. 30.8    (b) An agriculture science course may fulfill a science credit requirement in addition 30.9to the specified science credits in biology and chemistry or physics under paragraph (a), 30.10clause (3). 30.11     new text begin (c) The commissioner, in collaboration with the Minnesota State Colleges and new text end 30.12 new text begin Universities, must develop and implement a statewide plan to communicate with all new text end 30.13 new text begin Minnesota high school students no later than the beginning of ninth grade the state's new text end 30.14 new text begin expectations for college readiness, consistent with sections 120B.023, subdivision 2, new text end 30.15 new text begin paragraphs (b) and (e), and 135A.104. new text end 30.16    Sec. 6. Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read: 30.17    Subd. 7. Reports. Instructional expenditure and enrollment data for each 30.18instructional category shall be submitted new text begin by the public postsecondary systems to the new text end 30.19 new text begin Minnesota Office of Higher Education and the Department of Finance and included new text end in the 30.20biennial budget document. new text begin The specific data shall be submitted only after the director of new text end 30.21 new text begin the Minnesota Office of Higher Education has consulted with a data advisory task force to new text end 30.22 new text begin determine the need, content, and detail of the information. new text end 30.23    Sec. 7. new text begin [135A.043] RESIDENT TUITION. new text end 30.24     new text begin (a) A student shall qualify for a resident tuition rate or its equivalent at state new text end 30.25 new text begin universities and colleges, including the University of Minnesota, if the student meets new text end 30.26 new text begin all of the following requirements: new text end 30.27     new text begin (1) high school attendance within the state for three or more years; new text end 30.28     new text begin (2) graduation from a state high school or attainment within the state of the new text end 30.29 new text begin equivalent of high school graduation; and new text end 30.30     new text begin (3) registration as an entering student at, or current enrollment in, a public institution new text end 30.31 new text begin of higher education. new text end 30.32     new text begin (b) This section is in addition to any other statute, rule, or higher education new text end 30.33 new text begin institution regulation or policy providing eligibility for a resident tuition rate or its new text end 30.34 new text begin equivalent to a student. new text end 31.1     new text begin (c) To qualify for resident tuition under this section an individual who is not a citizen new text end 31.2 new text begin or permanent resident of the United States must provide the college or university with new text end 31.3 new text begin an affidavit that the individual will file an application to become a permanent resident at new text end 31.4 new text begin the earliest opportunity the individual is eligible to do so. new text end 31.5 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment new text end 31.6 new text begin and applies to tuition for school terms commencing on or after that date. new text end 31.7    Sec. 8. new text begin [135A.044] APPROPRIATION; CONTRACT BUYOUT. new text end 31.8     new text begin No appropriation from the state of Minnesota to the governing boards of the new text end 31.9 new text begin University of Minnesota or the Minnesota State Colleges and Universities shall be used new text end 31.10 new text begin directly or indirectly for costs related to the early termination of a contract of any person new text end 31.11 new text begin who reports to the director of athletics at any campus. new text end 31.12    Sec. 9. Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read: 31.13    Subd. 2. Performance and accountability. Higher education systems and 31.14campuses are expected to achieve the objectives in subdivision 1 and will be held 31.15accountable for doing so. The legislature is increasing the flexibility of the systems and 31.16campuses to provide greater responsibility to higher education in deciding how to achieve 31.17statewide objectives, and to decentralize authority so that those decisions can be made 31.18at the level where the education is delivered. To demonstrate their accountability, the 31.19legislature expects each system and campus to measure and report on its performance, 31.20using meaningful indicators that are critical to achieving the objectives in subdivision 1, 31.21as provided in section . Nothing in this section precludes a system or campus 31.22from determining its own objectives and performance measures beyond those identified 31.23in this section. 31.24    Sec. 10. new text begin [135A.104] COLLEGE READINESS. new text end 31.25     new text begin (a) Minnesota State Colleges and Universities must collaborate with the new text end 31.26 new text begin commissioner of education in establishing passing scores on the Minnesota comprehensive new text end 31.27 new text begin assessments in reading for grade 10 and in mathematics for grade 11 under section new text end 31.28 new text begin 120B.30 so that "passing score" performances on those two assessments represent a new text end 31.29 new text begin student's college readiness. For purposes of this section and chapter 120B, "college new text end 31.30 new text begin readiness" means that a student who graduates from a public high school is immediately new text end 31.31 new text begin ready to take college courses for college credit in a two-year or a four-year institution. new text end 31.32 new text begin Minnesota State Colleges and Universities also must collaborate with the commissioner of new text end 31.33 new text begin education to develop and implement a statewide plan to communicate with all Minnesota new text end 32.1 new text begin high school students no later than the beginning of ninth grade the state's expectations for new text end 32.2 new text begin college readiness. new text end 32.3     new text begin (b) The entrance and admission materials that the Minnesota State Colleges and new text end 32.4 new text begin Universities provide to prospective students must clearly indicate the level of academic new text end 32.5 new text begin preparation that the students must have in order to be ready to immediately take college new text end 32.6 new text begin courses for college credit in two-year and four-year institutions. new text end 32.7    Sec. 11. Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read: 32.8    Subdivision 1. Definitions. As used in this section, the following terms have the 32.9meanings given them. 32.10    (a) "Administrator" means the administrator of the institution or other person with 32.11general control and supervision of the institution. 32.12    (b) "Public or private postsecondary educational institution" or "institution" means 32.13any of the following institutions having an enrollment of more than 100 persons during 32.14any quarter, term, or semester during the preceding year: (1) the University of Minnesota; 32.15(2) the state universities; (3) the state community colleges; (4) public technical colleges; 32.16(5) private four-year, professional and graduate institutions; (6) private two-year colleges; 32.17and (7) schools subject to either chapter 141, sections new text begin 136A.615 new text end to 136A.71, or 32.18schools exempt under section 136A.657, and which offer educational programs within the 32.19state for an academic year greater than six consecutive months. An institution's report to 32.20the Minnesota Office of Higher Education or the Minnesota Department of Education may 32.21be considered when determining enrollment. 32.22    (c) "Student" means a person born after 1956 who did not graduate from a Minnesota 32.23high school in 1997 or later, and who is (1) registering for more than one class during 32.24a full academic term, such as a quarter or a semester or (2) housed on campus and is 32.25registering for one or more classes. Student does not include persons enrolled in extension 32.26classes only or correspondence classes only. 32.27    Sec. 12. Minnesota Statutes 2006, section 135A.51, subdivision 2, is amended to read: 32.28    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 years 32.29of age before the beginning of any term, semester or quarter, in which a course of study 32.30is pursued new text begin , or a person receiving a railroad retirement annuity who has reached 60 years new text end 32.31 new text begin of age before the beginning of the term new text end . 32.32    Sec. 13. Minnesota Statutes 2006, section 135A.52, subdivision 1, is amended to read: 33.1    Subdivision 1. Fees and tuition. Except for an administration fee established by the 33.2governing board at a level to recover costs, to be collected only when a course is taken for 33.3credit, a senior citizen who is a legal resident of Minnesota is entitled without payment 33.4of tuition or activity fees to attend courses offered for credit, audit any courses offered 33.5for credit, or enroll in any noncredit courses in any state supported institution of higher 33.6education in Minnesota when space is available after all tuition-paying students have been 33.7accommodated. A senior citizen enrolled under this section must pay any materials, 33.8personal property, or service charges for the course. In addition, a senior citizen who is 33.9enrolled in a course for credit must pay an administrative fee in an amount established 33.10by the governing board of the institution to recover the course costs. There shall be no 33.11administrative fee charges to a senior citizen auditing a course. For the purposes of this 33.12section and section 135A.51, the term "noncredit courses" shall not include those courses 33.13designed and offered specifically and exclusively for senior citizens. 33.14    The provisions of this section and section 135A.51 do not apply to noncredit courses 33.15designed and offered by the University of Minnesota, and the Minnesota State Colleges 33.16and Universities specifically and exclusively for senior citizens. Senior citizens enrolled 33.17under the provisions of this section and section 135A.51 shall not be included by such 33.18institutions in their computation of full-time equivalent students when requesting staff 33.19or appropriations. 33.20    Sec. 14. Minnesota Statutes 2006, section 135A.52, subdivision 2, is amended to read: 33.21    Subd. 2. Term; income of senior citizens. (a) Except under paragraph (b), there 33.22shall be no limit to the number of terms, quarters or semesters a senior citizen may attend 33.23courses, nor income limitation imposed in determining eligibility. 33.24    (b) A senior citizen enrolled in a closed enrollment contract training or professional 33.25continuing education program is not eligible for benefits under subdivision 1. 33.26    Sec. 15. new text begin [136A.002] DEFINITIONS. new text end 33.27     new text begin Subdivision 1. new text end new text begin Scope. new text end new text begin For purposes of this chapter, the terms defined in this section new text end 33.28 new text begin have the meanings given them. new text end 33.29     new text begin Subd. 2. new text end new text begin Office of Higher Education or office. new text end new text begin "Office of Higher Education" or new text end 33.30 new text begin "office" means the Minnesota Office of Higher Education. new text end 33.31    Sec. 16. Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read: 33.32    Subd. 2. Responsibilities. The Minnesota Office of Higher Education is responsible 33.33for: 34.1    (1) necessary state level administration of financial aid programs, including 34.2accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 34.3financial aid programs to the governor and the legislature; 34.4    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 34.5and career schools, under sections new text begin 136A.615 new text end to 136A.71 and chapter 141; 34.6    (3) administering the Learning Network of Minnesota; 34.7    (4) negotiating and administering reciprocity agreements; 34.8    (5) publishing and distributing financial aid information and materials, and other 34.9information and materials under section 136A.87, to students and parents; 34.10    (6) collecting and maintaining student enrollment and financial aid data and 34.11reporting data on students and postsecondary institutions to develop and implement a 34.12process to measure and report on the effectiveness of postsecondary institutions; 34.13    (7) administering the federal programs that affect students and institutions on a 34.14statewide basis; and 34.15    (8) prescribing policies, procedures, and rules under chapter 14 necessary to 34.16administer the programs under its supervision. 34.17    Sec. 17. Minnesota Statutes 2006, section 136A.031, subdivision 5, is amended to read: 34.18    Subd. 5. Expiration. Notwithstanding section 15.059, subdivision 5, the advisory 34.19groups established in this section new text begin do not new text end expire on June 30, 2007. 34.20    Sec. 18. Minnesota Statutes 2006, section 136A.0411, is amended to read: 34.21136A.0411 COLLECTING FEES. 34.22    The office may charge fees for seminars, conferences, workshops, services, and 34.23materials. The office may collect fees for registration and licensure of private institutions 34.24under sections new text begin 136A.615 new text end to 136A.71 and chapter 141. The money is annually 34.25appropriated to the office. 34.26    Sec. 19. Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read: 34.27    Subd. 7. Reporting. The Minnesota Office of Higher Education must annually, 34.28before the last day in January, submit a report to the committees in the house of 34.29representatives and the senate with responsibility for higher education finance on: 34.30    (1) participation in the tuition reciprocity program by Minnesota students and 34.31students from other states attending Minnesota postsecondary institutions under a 34.32reciprocity agreement; 34.33    (2) reciprocity and resident tuition rates at each institution; and 35.1    (3) interstate payments and obligations for each state participating in the tuition 35.2reciprocity program in the prior year. new text begin ; and new text end 35.3     new text begin (4) summary statistics on number of graduates by institution, degree granted, and new text end 35.4 new text begin year of graduation for reciprocity students who attended Minnesota postsecondary new text end 35.5 new text begin institutions. new text end 35.6    Sec. 20. Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read: 35.7    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 35.8educational institution located in this state or in a state with which the office has entered 35.9into a higher education reciprocity agreement on state student aid programs that either (1) 35.10is operated by this state new text begin or the Board of Regents of the University of Minnesota new text end , or (2) is 35.11operated publicly or privately and, as determined by the office, new text begin meets all of the following: new text end 35.12 new text begin (i) new text end maintains academic standards substantially equivalent to those of comparable 35.13institutions operated in this state new text begin ; (ii) is licensed or registered as a postsecondary institution new text end 35.14 new text begin by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal new text end 35.15 new text begin Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end . 35.16    Sec. 21. Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read: 35.17    Subd. 5. Grant stipends. The grant stipend shall be based on a sharing of 35.18responsibility for covering the recognized cost of attendance by the applicant, the 35.19applicant's family, and the government. The amount of a financial stipend must not 35.20exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after 35.21deducting the following: 35.22    (1) the assigned student responsibility of at least 46 new text begin 45.5 new text end percent of the cost of 35.23attending the institution of the applicant's choosing; 35.24    (2) the assigned family responsibility as defined in section 136A.101; and 35.25    (3) the amount of a federal Pell grant award for which the grant applicant is eligible. 35.26    The minimum financial stipend is $100 per academic year. 35.27    Sec. 22. Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read: 35.28    Subd. 2. Eligible students. (a) An applicant is eligible for a child care grant if 35.29the applicant: 35.30    (1) is a resident of the state of Minnesota; 35.31    (2) has a child 12 years of age or younger, or 14 years of age or younger who is 35.32disabled as defined in section 125A.02, and who is receiving or will receive care on a 35.33regular basis from a licensed or legal, nonlicensed caregiver; 36.1    (3) is income eligible as determined by the office's policies and rules, but is not a 36.2recipient of assistance from the Minnesota family investment program; 36.3    (4) has not earned a baccalaureate degree and has been enrolled full time less than 36.4eight semesters or the equivalent; 36.5    (5) is pursuing a nonsectarian program or course of study that applies to an 36.6undergraduate degree, diploma, or certificate; 36.7    (6) is enrolled at least half time in an eligible institution; and 36.8    (7) is in good academic standing and making satisfactory academic progress. 36.9    (b) A student who withdraws from enrollment for active military service is entitled 36.10to an additional semester or the equivalent of grant eligibility new text begin and will be considered to be new text end 36.11 new text begin in continuing enrollment status upon return new text end . 36.12    Sec. 23. new text begin [136A.126] TEACHER EDUCATION AND COMPENSATION HELPS; new text end 36.13 new text begin MINNESOTA EARLY CHILDHOOD TEACHER RETENTION PROGRAMS. new text end 36.14     new text begin Subdivision 1. new text end new text begin TEACH. new text end new text begin The teacher education and compensation helps program new text end 36.15 new text begin (TEACH) is established to provide tuition scholarships, education incentives, and an early new text end 36.16 new text begin childhood teacher retention program to provide retention incentives to early care and new text end 36.17 new text begin education providers. The director shall make a grant with appropriations for this purpose new text end 36.18 new text begin to a nonprofit organization licensed to administer the TEACH early childhood program. new text end 36.19     new text begin Subd. 2. new text end new text begin Program components. new text end new text begin (a) The nonprofit organization must use the new text end 36.20 new text begin grant for: new text end 36.21     new text begin (1) tuition scholarships up to $5,000 per year for courses leading to the nationally new text end 36.22 new text begin recognized child development associate credential or college-level courses leading to an new text end 36.23 new text begin associate's or bachelor's degree in early childhood development and school-age care; and new text end 36.24     new text begin (2) education incentives of a minimum of $100 to participants in the tuition new text end 36.25 new text begin scholarship program if they complete a year of working in the early care and education new text end 36.26 new text begin field. new text end 36.27     new text begin (b) Applicants for the scholarship must be employed by a licensed early childhood new text end 36.28 new text begin or child care program and working directly with children, a licensed family child care new text end 36.29 new text begin provider, or an employee in a school-age program exempt from licensing under section new text end 36.30 new text begin 245A.03, subdivision 2, clause (12). Lower wage earners must be given priority in new text end 36.31 new text begin awarding the tuition scholarships. Scholarship recipients must contribute ten percent of new text end 36.32 new text begin the total scholarship and must be sponsored by their employers, who must also contribute new text end 36.33 new text begin ten percent of the total scholarship. Scholarship recipients who are self-employed must new text end 36.34 new text begin contribute 20 percent of the total scholarship. new text end 37.1     new text begin (c) The organization must also use the grant for teacher retention incentives of new text end 37.2 new text begin $1,000 to $3,500 annually to be paid biannually. Applicants for the retention incentives new text end 37.3 new text begin must be employed by a licensed early childhood or child care program and working new text end 37.4 new text begin directly with children, a licensed family child care provider, or an employee in a new text end 37.5 new text begin school-age program exempt from licensing under section 245A.03, subdivision 2, clause new text end 37.6 new text begin (12). Lower wage earners must be given priority for the retention incentives. The amount new text end 37.7 new text begin of the retention incentive must be based on the applicant's level of education at the time of new text end 37.8 new text begin application. A provider is eligible for the retention incentive if the provider: new text end 37.9     new text begin (1) has worked in the field for at least one year and has been working at the same new text end 37.10 new text begin location for at least one year at the time of application; new text end 37.11     new text begin (2) agrees to remain in the provider's current position for a period of at least one new text end 37.12 new text begin year; and new text end 37.13     new text begin (3) has an associate's or bachelor's degree or a child development associate's degree. new text end 37.14     new text begin Subd. 3. new text end new text begin Advisory committee. new text end new text begin The TEACH early childhood and Minnesota early new text end 37.15 new text begin childhood teacher retention programs must have an advisory board as prescribed by the new text end 37.16 new text begin national TEACH organization. new text end 37.17    Sec. 24. new text begin [136A.127] CONSTRUCTION MANAGEMENT EDUCATION new text end 37.18 new text begin PROGRAM. new text end 37.19     new text begin Subdivision 1. new text end new text begin Construction Management Education Account Advisory new text end 37.20 new text begin Committee. new text end new text begin The director must establish an advisory committee for the construction new text end 37.21 new text begin management education account. Members of the committee must include: the executive new text end 37.22 new text begin vice-president of the Minnesota Mechanical Contractors association or designee, a new text end 37.23 new text begin chapter manager of one of the Minnesota chapters of the National Electrical Contractors new text end 37.24 new text begin Association or designee, the executive director of the Associated General Contractors of new text end 37.25 new text begin Minnesota or designee, two members of the nonresidential construction industry, and a new text end 37.26 new text begin construction management program coordinator or director from an accredited construction new text end 37.27 new text begin management program in the Minnesota State Colleges and Universities. Members serve new text end 37.28 new text begin three-year terms. Advisory committee members are reimbursed for expenses related to new text end 37.29 new text begin committee activities. The director may accept funds from federal, state, or local public new text end 37.30 new text begin agencies, or from private foundations or individuals for deposit into the construction new text end 37.31 new text begin management education account under section 16B.70. All money in the account must new text end 37.32 new text begin be used for the purposes of this section. new text end 37.33     new text begin Subd. 2. new text end new text begin Grants. new text end new text begin Grants from the construction management education account must new text end 37.34 new text begin be used to maintain and increase the quality and availability of education programs for new text end 37.35 new text begin the construction industry by awarding grants to accredited construction management new text end 38.1 new text begin programs in the Minnesota State Colleges and Universities. Grants must be used to new text end 38.2 new text begin maintain and upgrade facilities and provide greater industry access to modern construction new text end 38.3 new text begin standards and management practices. In making grants, the director, in consultation with new text end 38.4 new text begin the committee, must: new text end 38.5     new text begin (1) confirm the qualifications of any program applying for a grant; new text end 38.6     new text begin (2) affirm applications for American Council for Construction Education new text end 38.7 new text begin accreditation and, when funds are available, award grants to complete the accreditation new text end 38.8 new text begin process; new text end 38.9     new text begin (3) promote close ties between technical and community colleges and four-year new text end 38.10 new text begin construction management programs; and new text end 38.11     new text begin (4) support the development of new educational programs with specific emphasis on new text end 38.12 new text begin outreach to the construction industry at large. new text end 38.13     new text begin Subd. 3. new text end new text begin Grant awards. new text end new text begin (a) The committee may award grants to a Minnesota State new text end 38.14 new text begin Colleges and Universities institution to support construction management education and to new text end 38.15 new text begin promote outreach and continuing education in the construction industry. new text end 38.16     new text begin (b) An eligible institution must provide one of the following: new text end 38.17     new text begin (1) a bachelor of science construction management degree accredited by the new text end 38.18 new text begin American Council for Construction Education; new text end 38.19     new text begin (2) a degree with an American Council for Construction Education accredited new text end 38.20 new text begin option, including, but not limited to, Engineering Technology and Industrial Technology; new text end 38.21     new text begin (3) a bachelor of science degree program documenting placement of more than 50 new text end 38.22 new text begin percent of their graduates with Minnesota nonresidential contractors; and new text end 38.23     new text begin (4) the development of a construction management curriculum to meet the American new text end 38.24 new text begin Council for Construction Education criteria. new text end 38.25     new text begin (c) Grant awards may be made as follows: new text end 38.26     new text begin (1) $3,000 per graduate during the past academic year up to a maximum of $100,000 new text end 38.27 new text begin for institutions qualifying under paragraph (b), clause (1); new text end 38.28     new text begin (2) $3,000 per graduate during the past academic year up to a maximum of $100,000 new text end 38.29 new text begin for institutions qualifying under paragraph (b), clause (2); new text end 38.30     new text begin (3) $3,000 per graduate placed with Minnesota nonresidential contractors during the new text end 38.31 new text begin past academic year to a maximum of $20,000 for institutions qualifying under paragraph new text end 38.32 new text begin (b), clause (3); new text end 38.33     new text begin (4) up to $25,000 for the purpose of becoming accredited by the American Council new text end 38.34 new text begin for Construction Education for two years which may be renewed if the institution is new text end 38.35 new text begin continuing progress towards accreditation; and new text end 39.1     new text begin (5) for faculty recruitment and development in construction management programs, new text end 39.2 new text begin including support for postgraduate work leading to advanced degrees, visiting lecturer new text end 39.3 new text begin compensation and expenses, teaching assistant positions, and faculty positions; and new text end 39.4     new text begin (6) to support general classroom and laboratory operating expenses. new text end 39.5     new text begin Grants may only be awarded from the construction management education account new text end 39.6 new text begin to the extent that funds are available. No other state funding may be provided for these new text end 39.7 new text begin grants. new text end 39.8     new text begin Subd. 4. new text end new text begin Reports. new text end new text begin (a) The director must annually report to the committees of the new text end 39.9 new text begin legislature responsible for higher education finance by January 15. The report must new text end 39.10 new text begin include the names of the public postsecondary educational institutions receiving grants, the new text end 39.11 new text begin amount of the grant, the purposes for each grant, the number of students served, and the new text end 39.12 new text begin number of placements made to the construction industry for the previous academic year. new text end 39.13     new text begin (b) After receiving an initial grant, the president of the public postsecondary new text end 39.14 new text begin educational institution must annually submit a report to the director listing the amount of new text end 39.15 new text begin all past grants awarded from the construction management education account and the uses new text end 39.16 new text begin of those funds. The report must be submitted with a request for a new or continuing grant new text end 39.17 new text begin and at a minimum must include the following: new text end 39.18     new text begin (1) the number of graduates placed with the Minnesota contractors during the new text end 39.19 new text begin previous academic year; new text end 39.20     new text begin (2) the expected enrollment in construction management courses in the upcoming new text end 39.21 new text begin academic year; and new text end 39.22     new text begin (3) continuing education and extension courses offered in construction management new text end 39.23 new text begin during the previous academic year and their enrollments. new text end 39.24     new text begin Subd. 5. new text end new text begin Administration. new text end new text begin Up to $15,000 per year from the construction new text end 39.25 new text begin management education account may be used for the administration of this program. new text end 39.26    Sec. 25. Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read: 39.27    Subdivision 1. Scope. For purposes of sections 136A.15 to 136A.1702, the terms 39.28defined in this section have the meanings ascribed to new text begin given new text end them. 39.29    Sec. 26. Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read: 39.30    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 39.31educational institution that either (1) is operated or regulated by this state, or new text begin the Board of new text end 39.32 new text begin Regents of the University of Minnesota; new text end (2) is operated publicly or privately in another 39.33state, is approved by the United States Secretary of Education, and, as determined by 39.34the office, maintains academic standards substantially equal to those of comparable 40.1institutions operated in this state new text begin ; (3) is licensed or registered as a postsecondary institution new text end 40.2 new text begin by the office or another state agency; and (4) by July 1, 2011, is participating in the federal new text end 40.3 new text begin Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end . It 40.4also includes any institution chartered in a province. 40.5    Sec. 27. Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read: 40.6    Subd. 3. Payments. Work-study payments shall be made to eligible students by 40.7postsecondary institutions as provided in this subdivision. 40.8    (a) Students shall be selected for participation in the program by the postsecondary 40.9institution on the basis of student financial need. 40.10    (b) In selecting students for participation, priority must be given to students enrolled 40.11for at least 12 credits. new text begin In each academic year, a student may be awarded work-study new text end 40.12 new text begin payments for one period of nonenrollment or less than half-time enrollment if the student new text end 40.13 new text begin will enroll on at least a half-time basis during the following academic term. new text end 40.14    (c) Students will be paid for hours actually worked and the maximum hourly rate 40.15of pay shall not exceed the maximum hourly rate of pay permitted under the federal 40.16college work-study program. 40.17    (d) Minimum pay rates will be determined by an applicable federal or state law. 40.18    (e) The office shall annually establish a minimum percentage rate of student 40.19compensation to be paid by an eligible employer. 40.20    (f) Each postsecondary institution receiving money for state work-study grants 40.21shall make a reasonable effort to place work-study students in employment with eligible 40.22employers outside the institution. However, a public employer other than the institution 40.23may not terminate, lay off, or reduce the working hours of a permanent employee for the 40.24purpose of hiring a work-study student, or replace a permanent employee who is on layoff 40.25from the same or substantially the same job by hiring a work-study student. 40.26    (g) The percent of the institution's work-study allocation provided to graduate 40.27students shall not exceed the percent of graduate student enrollment at the participating 40.28institution. 40.29    (h) An institution may use up to 30 percent of its allocation for student internships 40.30with private, for-profit employers. 40.31    Sec. 28. Minnesota Statutes 2006, section 136A.29, subdivision 9, is amended to read: 40.32    Subd. 9. Revenue bonds; limit. The authority is authorized and empowered 40.33to issue revenue bonds whose aggregate principal amount at any time shall not exceed 40.34$800,000,000 new text begin $950,000,000 new text end and to issue notes, bond anticipation notes, and revenue 41.1refunding bonds of the authority under the provisions of sections 136A.25 to 136A.42, 41.2to provide funds for acquiring, constructing, reconstructing, enlarging, remodeling, 41.3renovating, improving, furnishing, or equipping one or more projects or parts thereof. 41.4    Sec. 29. Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read: 41.5    Subdivision 1. Grants. The director of the Minnesota Office of Higher Education 41.6shall award grants to foster postsecondary attendance new text begin and retention new text end by providing outreach 41.7services to historically underserved students in grades six through 12 new text begin and historically new text end 41.8 new text begin underrepresented college students new text end . Grants must be awarded to programs that provide 41.9precollege services, including, but not limited to: 41.10    (1) academic counseling; 41.11    (2) mentoring; 41.12    (3) fostering and improving parental involvement in planning for and facilitating a 41.13college education; 41.14    (4) services for students with English as a second language; 41.15    (5) academic enrichment activities; 41.16    (6) tutoring; 41.17    (7) career awareness and exploration; 41.18    (8) orientation to college life; 41.19    (9) assistance with high school course selection and information about college 41.20admission requirements; and 41.21    (10) financial aid counseling. 41.22    Grants shall be awarded to postsecondary institutions, professional organizations, 41.23community-based organizations, or others deemed appropriate by the director. 41.24    Grants shall be awarded for one year and may be renewed for a second year with 41.25documentation to the Minnesota Office of Higher Education of successful program 41.26outcomes. 41.27    Sec. 30. Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read: 41.28    Subd. 2. Eligible students. Eligible students include students in grades six through 41.2912 who meet one or more of the following criteria: 41.30    (1) are counted under section 1124(c) of the Elementary and Secondary Education 41.31Act of 1965 (Title I); 41.32    (2) are eligible for free or reduced-price lunch under the National School Lunch Act; 41.33    (3) receive assistance under the Temporary Assistance for Needy Families Law (Title 41.34I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or 42.1    (4) are a member of a group traditionally underrepresented in higher education. 42.2     new text begin Eligible undergraduate students include those who met the student eligibility criteria new text end 42.3 new text begin as 6th through 12th graders. new text end 42.4    Sec. 31. Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read: 42.5    Subd. 3. Application process. The director of the Minnesota Office of Higher 42.6Education shall develop a grant application process. The director shall attempt to support 42.7projects in a manner that ensures that eligible students throughout the state have access 42.8to precollege new text begin program new text end services. 42.9    The grant application must include, at a minimum, the following information: 42.10    (1) a description of the characteristics of the students to be served reflective of the 42.11need for services listed in subdivision 1; 42.12    (2) a description of the services to be provided and a timeline for implementation of 42.13the activities; 42.14    (3) a description of how the services provided will foster postsecondary attendance new text begin new text end 42.15 new text begin and support postsecondary retention new text end ; 42.16    (4) a description of how the services will be evaluated to determine whether the 42.17program goals were met; and 42.18    (5) other information as identified by the director. 42.19Grant recipients must specify both program and student outcome goals, and performance 42.20measures for each goal. 42.21    Sec. 32. Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read: 42.22    Subd. 6. Program evaluation. Each grant recipient must annually submit a report 42.23to the Minnesota Office of Higher Education delineating its program and student outcome 42.24goals, and activities implemented to achieve the stated outcomes. The goals must be 42.25clearly stated and measurable. Grant recipients are required to collect, analyze, and report 42.26on participation and outcome data that enable the office to verify that the program goals 42.27were met. The office shall maintain: 42.28    (1) information about successful precollege program new text begin and undergraduate student new text end 42.29 new text begin retention program new text end activities for dissemination to individuals throughout the state interested 42.30in adopting or replicating successful program practices; and 42.31    (2) data on the success of the funded projects in increasing the high school 42.32graduation and new text begin , new text end college participation new text begin , and college graduation new text end rates of students served 42.33by the grant recipients. The office may convene meetings of the grant recipients, as 43.1needed, to discuss issues pertaining to the implementation of precollege services new text begin and new text end 43.2 new text begin undergraduate retention programs new text end . 43.3    Sec. 33. Minnesota Statutes 2006, section 136F.02, subdivision 1, is amended to read: 43.4    Subdivision 1. Membership. The board consists of 15 new text begin 17 new text end members appointed by 43.5the governor with the advice and consent of the senate. At least one member of the board 43.6must be a resident of each congressional district. Three members must be students who are 43.7enrolled at least half time in a degree, diploma, or certificate program or have graduated 43.8from an institution governed by the board within one year of the date of appointment. The 43.9student members shall include: one member from a community college, one member from 43.10a state university, and one member from a technical college. new text begin Two members must be new text end 43.11 new text begin members of the AFL-CIO. new text end The remaining members must be appointed to represent the 43.12state at large. 43.13    Sec. 34. new text begin [136F.045] UNION MEMBER SELECTION. new text end 43.14     new text begin Notwithstanding section 136F.03, the AFL-CIO has the responsibility for recruiting, new text end 43.15 new text begin screening, and recommending qualified candidates for their members of the board. The new text end 43.16 new text begin AFL-CIO must develop a statement of selection criteria for board membership and a new text end 43.17 new text begin process for recommending candidates. Beginning in 2008, and every six years thereafter, new text end 43.18 new text begin the AFL-CIO must recommend four candidates for the two board positions to the governor new text end 43.19 new text begin by April 15. The governor must appoint two of the candidates to the board of trustees. new text end 43.20    Sec. 35. Minnesota Statutes 2006, section 136F.42, subdivision 1, is amended to read: 43.21    Subdivision 1. Time reporting. As provided in Executive Order 96-2, the board, 43.22in consultation with the commissioners of employee relations and finance, may develop 43.23policies to allow system office or campus employees on salaries, as defined in section 43.2443A.17, subdivision 1 , to use negative time reporting in which employees report only that 43.25time for which leave is taken. By the end of the 1997 fiscal year, the board, in consultation 43.26with the commissioners of employee relations and finance, shall evaluate the use of 43.27negative time reporting and its potential for use with other state employees. 43.28    Sec. 36. Minnesota Statutes 2006, section 136F.71, subdivision 2, is amended to read: 43.29    Subd. 2. Activity funds. All receipts attributable to the state colleges and 43.30universities activity funds and deposited in the state treasury are appropriated to the board 43.31and are not subject to budgetary control as exercised by the commissioner of finance. 44.1    Sec. 37. Minnesota Statutes 2006, section 136F.71, is amended by adding a subdivision 44.2to read: 44.3     new text begin Subd. 4. new text end new text begin Banking services. new text end new text begin Notwithstanding section 16A.27, the board shall new text end 44.4 new text begin have authority to control the amount and manner of deposit of all receipts described in new text end 44.5 new text begin this section in depositories selected by the board. The board's authority shall include new text end 44.6 new text begin specifying the considerations, financial activities, and conditions required from the new text end 44.7 new text begin depository, including the requirement of collateral security or a corporate surety bond new text end 44.8 new text begin as described in section 118A.03. The board may compensate the depository, including new text end 44.9 new text begin paying a reasonable charge to the depository, maintaining appropriate compensating new text end 44.10 new text begin balances with the depository, or purchasing non-interest-bearing certificates of deposit new text end 44.11 new text begin from the depository for performing depository-related services. new text end 44.12    Sec. 38. Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read: 44.13    Subd. 5. Amount of matching grant. The amount of the matching grant for a 44.14beneficiary equals: 44.15    (1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum 44.16of the contributions made to the beneficiary's account during the calendar year, not to 44.17exceed $300 new text begin $400 new text end ; and 44.18    (2) if the beneficiary's family income is more than $50,000 but not more than 44.19$80,000, five new text begin ten new text end percent of the sum of the contributions made to the beneficiary's account 44.20during the calendar year, not to exceed $300 new text begin $400 new text end . 44.21    Sec. 39. new text begin MINNESOTA WEST COMMUNITY AND TECHNICAL COLLEGE new text end 44.22 new text begin AT WORTHINGTON; YMCA LEASE AGREEMENT. new text end 44.23     new text begin (a) The Board of Trustees of Minnesota State Colleges and Universities may enter new text end 44.24 new text begin into a lease agreement with the YMCA not to exceed 40 years, for the lease of land on new text end 44.25 new text begin the Minnesota West Community and Technical College at Worthington campus for the new text end 44.26 new text begin construction of a YMCA facility. The lease may also include the city of Worthington. new text end 44.27     new text begin (b) Siting and design of the facility must be consistent with the college's master new text end 44.28 new text begin plan and Minnesota State Colleges and Universities' building standards. Minnesota new text end 44.29 new text begin West Community and Technical College may negotiate for use of the facility for college new text end 44.30 new text begin purposes. The lease must contain a provision that the lease shall terminate if the improved new text end 44.31 new text begin property is no longer used for the partial benefit of the students at the Worthington campus. new text end 44.32    Sec. 40. new text begin INTEREST RATE SWAP AND OTHER AGREEMENTS; new text end 44.33 new text begin IMPLEMENTATION PLAN. new text end 45.1     new text begin The Minnesota Office of Higher Education must develop a plan for implementing new text end 45.2 new text begin interest rate exchanges, swaps, or other interest rate protection agreements for its student new text end 45.3 new text begin loan programs. The plan must be presented in a report to the committees of legislature new text end 45.4 new text begin responsible for higher education finance by January 15, 2008. The report must address new text end 45.5 new text begin potential contracting arrangements and options, benefits and risks associated with these new text end 45.6 new text begin agreements, and the potential impacts on the student loan program, its assets, and its new text end 45.7 new text begin objectives. new text end 45.8    Sec. 41. new text begin REPEALER. new text end 45.9 new text begin (a) Minnesota Statutes 2006, sections 135A.031, subdivisions 1, 2, 3, 4, 5, and 6; new text end 45.10 new text begin 135A.032; 135A.033; 136A.07; and 136A.08, subdivision 8, new text end new text begin are repealed. new text end 45.11 new text begin (b) Minnesota Statutes 2006, sections 137.0245; and 137.0246, new text end new text begin are repealed. new text end 45.12ARTICLE 4 45.13TEXTBOOK PRICING AND ACCESS 45.14    Section 1. new text begin [135A.25] TEXTBOOK DISCLOSURE, PRICING, AND ACCESS. new text end 45.15     new text begin Subdivision 1. new text end new text begin Short title. new text end new text begin This section may be cited as the Textbook Disclosure, new text end 45.16 new text begin Pricing, and Access Act. new text end 45.17     new text begin Subd. 2. new text end new text begin Purpose and intent. new text end new text begin The purpose of this act is to ensure that every student new text end 45.18 new text begin in higher education is offered better and more timely access to affordable course materials new text end 45.19 new text begin by educating and informing faculty, students, administrators, institutions, bookstores, and new text end 45.20 new text begin publishers on all aspects of the selection, purchase, sales, and use of the materials. It is the new text end 45.21 new text begin policy of the state of Minnesota that all involved parties must work together to identify new text end 45.22 new text begin ways to decrease the cost of course materials for students while protecting the academic new text end 45.23 new text begin freedom of faculty members to provide high-quality course materials for students. new text end 45.24     new text begin Subd. 3. new text end new text begin Definitions. new text end new text begin For the purposes of this section, the following definitions new text end 45.25 new text begin have the meanings given. new text end 45.26     new text begin (1) "Bundled" means any course material packaged together to be sold for one price. new text end 45.27     new text begin (2) "Bookstore" means a store that is affiliated with a postsecondary institution or new text end 45.28 new text begin has a contract with a postsecondary institution to sell course materials to students enrolled new text end 45.29 new text begin at the postsecondary institution. new text end 45.30     new text begin (3) "Course material" means textbooks as defined in section 297A.67, subdivision new text end 45.31 new text begin 13, custom course materials, and instructional materials as defined in section 297A.67, new text end 45.32 new text begin subdivision 13a, sold to students by a bookstore in a bundled or unbundled form. new text end 46.1     new text begin (4) "Custom course materials" means any combination of textbooks, course new text end 46.2 new text begin materials, or any part thereof that has been customized, produced, and sold by a distributor new text end 46.3 new text begin or publisher specifically for a specific course, program, or field of study. new text end 46.4     new text begin (5) "Distributor" means an independent contractor, including its employees or agents, new text end 46.5 new text begin that is in the business of selling, distributing, advertising, marketing, or maintaining an new text end 46.6 new text begin inventory of course materials for a postsecondary institution or bookstore. new text end 46.7     new text begin (6) "Postsecondary institution" means a Minnesota institution defined under section new text end 46.8 new text begin 136A.101, subdivision 4. new text end 46.9     new text begin (7) "Publisher" means a publishing house, firm, or business, including its employees new text end 46.10 new text begin or agents, acting with authority of the publisher that publishes, sells, markets, or maintains new text end 46.11 new text begin an inventory of course materials to a postsecondary institution or bookstore. new text end 46.12     new text begin Subd. 4. new text end new text begin Publisher disclosures. new text end new text begin (a) Beginning January 1, 2008, a publisher or new text end 46.13 new text begin distributor must post on its Web site, include in a catalog, or disclose in writing to a faculty new text end 46.14 new text begin member or other individual at a postsecondary institution responsible for selecting course new text end 46.15 new text begin material within seven days of a request, at least the following: new text end 46.16     new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of all new text end 46.17 new text begin course material and custom course materials, if applicable; new text end 46.18     new text begin (2) the price for the course material; new text end 46.19     new text begin (3) whether the required course material is bundled with optional material, whether new text end 46.20 new text begin it can be unbundled, and the price for each bundled and unbundled component; new text end 46.21     new text begin (4) whether the material is available in an alternative format and the cost for the new text end 46.22 new text begin alternatively formatted material; and new text end 46.23     new text begin (5) summary of revisions to requested course material for the previous edition or new text end 46.24 new text begin release for materials that have been in circulation for five years or less and a detailed new text end 46.25 new text begin breakdown of revisions must be made available in writing within seven days of the request. new text end 46.26     new text begin (b) A publisher or distributor must make all bundled course materials available to new text end 46.27 new text begin bookstores or postsecondary institutions in an unbundled form or provide written or verbal new text end 46.28 new text begin notice within seven days of a request under this subdivision if the unbundled materials are new text end 46.29 new text begin not available. new text end 46.30     new text begin (c) A publisher or distributor must post on its Web site, include in its marketing new text end 46.31 new text begin materials, or disclose in writing when a request is made under this subdivision for the new text end 46.32 new text begin return policy for course material, including any penalties or conditions for returns. new text end 46.33     new text begin (d) Disclosure under this section is not required for mass market and trade books that new text end 46.34 new text begin are not published, marketed, or sold primarily for use in or by postsecondary institutions. new text end 47.1     new text begin Subd. 5. new text end new text begin Payment for course material. new text end new text begin Each postsecondary institution must adopt new text end 47.2 new text begin policies that allow students to add the costs of course material purchased at a bookstore new text end 47.3 new text begin to existing waivers or payment plans for tuition and fees. new text end 47.4     new text begin Subd. 6. new text end new text begin Notice to purchase. new text end new text begin (a) An instructor shall make reasonable efforts to new text end 47.5 new text begin notify a bookstore of the final order for required and recommended course material new text end 47.6 new text begin including, but not limited to, alternative formats, previous editions, or custom course new text end 47.7 new text begin materials at least 30 days prior to the commencement of the term. new text end 47.8     new text begin (b) The bookstore must notify students of the following information concerning the new text end 47.9 new text begin required and recommended course material at least 15 days prior to the commencement of new text end 47.10 new text begin the term for which the course material is required, including, but not limited to: new text end 47.11     new text begin (1) the title, edition, author, and International Standard Book Number (ISBN) of new text end 47.12 new text begin the course material; new text end 47.13     new text begin (2) the price for the course material; new text end 47.14     new text begin (3) whether the required course material is bundled with optional material, whether new text end 47.15 new text begin it can be unbundled, and the price for each bundled and unbundled component; and new text end 47.16     new text begin (4) whether the material is available in an alternative format and the cost for the new text end 47.17 new text begin alternatively formatted material. new text end 47.18     new text begin Subd. 7. new text end new text begin Educational strategies. new text end new text begin (a) During the biennium ending June 30, 2009, new text end 47.19 new text begin the Minnesota Office of Higher Education shall work with postsecondary institutions new text end 47.20 new text begin to develop educational materials based upon the findings of the Minnesota Textbook new text end 47.21 new text begin Advisory Task Force recommendations and other relevant information, convene and new text end 47.22 new text begin sponsor meetings and workshops, and provide educational materials for faculty, students, new text end 47.23 new text begin administrators, institutions, bookstores, and publishers in order to educate all interested new text end 47.24 new text begin parties on strategies for reducing the costs of course materials for students attending new text end 47.25 new text begin postsecondary institutions. new text end 47.26     new text begin (b) The Minnesota Office of Higher Education must develop and maintain a new text end 47.27 new text begin standardized request form for publisher disclosure under this section with all required new text end 47.28 new text begin information. The request form must be in an electronic format that can be downloaded new text end 47.29 new text begin from the office Web site. new text end 47.30ARTICLE 5 47.31PRIVATE INSTITUTIONS 47.32    Section 1. Minnesota Statutes 2006, section 136A.61, is amended to read: 47.33136A.61 POLICY. 47.34    The legislature has found and hereby declares that the availability of legitimate 47.35courses and programs leading to academic degrees offered by responsible private new text begin not for new text end 48.1 new text begin profit and for profit new text end institutions of postsecondary education and the existence of legitimate 48.2private colleges and universities are in the best interests of the people of this state. The 48.3legislature has found and declares that the state can provide assistance and protection 48.4for persons choosing private institutions and programs, by establishing policies and 48.5procedures to assure the authenticity and legitimacy of private postsecondary education 48.6institutions and programs. The legislature has also found and declares that this same 48.7policy applies to any new text begin private and new text end public postsecondary educational institution located in 48.8another state or country which offers or makes available to a Minnesota resident any 48.9course, program or educational activity which does not require the leaving of the state 48.10for its completion. 48.11    Sec. 2. new text begin [136A.615] CITATION. new text end 48.12     new text begin Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and new text end 48.13 new text begin Out-of-State Public Postsecondary Education Act." new text end 48.14    Sec. 3. Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read: 48.15    Subd. 3. School. "School" means new text begin : new text end 48.16     new text begin (1) new text end any individual, partnership, company, firm, society, trust, association, 48.17corporation, or any combination thereof, which (a) new text begin (i) new text end is, owns, or operates a private, 48.18nonprofit postsecondary education institution; (b) new text begin (ii) is, owns, or operates a private, for new text end 48.19 new text begin profit postsecondary education institution; (iii) new text end provides a postsecondary instructional 48.20program or course leading to a degree whether or not for profit; (c) new text begin (iv) new text end is, owns, or 48.21operates a private, postsecondary education institution which uses the term "college", 48.22"academy", "institute" or "university" in its name; or (d) operates for profit and provides 48.23programs or courses which are intended to allow an individual to fulfill in part or totally 48.24the requirements necessary to maintain a license to practice an occupation. School shall 48.25also mean 48.26     new text begin (2) new text end any public postsecondary educational institution located in another state or 48.27country which offers or makes available to a Minnesota resident any course, program or 48.28educational activity which does not require the leaving of the state for its completion new text begin ; or new text end 48.29     new text begin (3) any individual, entity, or postsecondary institution located in another state new text end 48.30 new text begin that contracts with any school located within the state of Minnesota for the purpose of new text end 48.31 new text begin providing educational programs, training programs, or awarding postsecondary credits new text end 48.32 new text begin or continuing education credits to Minnesota residents that may be applied to a degree new text end 48.33 new text begin program new text end . 49.1    Sec. 4. Minnesota Statutes 2006, section 136A.63, is amended to read: 49.2136A.63 REGISTRATION. 49.3     new text begin Subdivision 1. new text end new text begin Annual registration. new text end All schools located within Minnesota and 49.4all schools located outside Minnesota which offer new text begin degree new text end programs or courses within 49.5Minnesota shall register annually with the office. 49.6     new text begin Subd. 2. new text end new text begin Sale of an institution. new text end new text begin Within 30 days of a change of ownership the school new text end 49.7 new text begin must submit a registration renewal application, all usual and ordinary information and new text end 49.8 new text begin materials for an initial registration, and applicable registration fees for a new institution. new text end 49.9 new text begin For purposes of this subdivision, "change of ownership" means a merger or consolidation new text end 49.10 new text begin with a corporation; a sale, lease, exchange, or other disposition of all or substantially all of new text end 49.11 new text begin the assets of a school; the transfer of a controlling interest of at least 51 percent of the new text end 49.12 new text begin school's stock; or a change in the not-for-profit or for profit status of a school. new text end 49.13    Sec. 5. Minnesota Statutes 2006, section 136A.64, is amended to read: 49.14136A.64 INFORMATION new text begin REQUIRED FOR REGISTRATION new text end . 49.15    Subdivision 1. Schools to provide information. As a basis for registration, schools 49.16shall provide the office with such information as the office needs to determine the nature 49.17and activities of the school, including but not limited to, requirements for admission, 49.18enrollments, tuition charge, refund policies, curriculum, degrees granted, and faculty 49.19employed. The office shall have the authority to verify the accuracy of the information 49.20submitted to it by inspection or any other means it deems necessary. new text begin the following which new text end 49.21 new text begin shall be accompanied by an affidavit attesting to its accuracy and truthfulness: new text end 49.22     new text begin (1) articles of incorporation, constitution, bylaws, or other operating documents; new text end 49.23     new text begin (2) a duly adopted statement of the school's mission and goals; new text end 49.24     new text begin (3) evidence of current school or program licenses granted by departments or new text end 49.25 new text begin agencies of any state; new text end 49.26     new text begin (4) a fiscal balance sheet on an accrual basis, or a certified audit of the immediate new text end 49.27 new text begin past fiscal year including any management letters provided by the independent auditor new text end 49.28 new text begin or, if the school is a public institution outside Minnesota, an income statement for the new text end 49.29 new text begin immediate past fiscal year; new text end 49.30     new text begin (5) all current promotional and recruitment materials and advertisements; and new text end 49.31     new text begin (6) the current school catalog and, if not contained in the catalog: new text end 49.32     new text begin (i) the members of the board of trustees or directors, if any; new text end 49.33     new text begin (ii) the current institutional officers; new text end 49.34     new text begin (iii) current full-time and part-time faculty with degrees held or applicable new text end 49.35 new text begin experience; new text end 50.1     new text begin (iv) a description of all school facilities; new text end 50.2     new text begin (v) a description of all current course offerings; new text end 50.3     new text begin (vi) all requirements for satisfactory completion of courses, programs, and degrees; new text end 50.4     new text begin (vii) the school's policy about freedom or limitation of expression and inquiry; new text end 50.5     new text begin (viii) a current schedule of fees, charges for tuition, required supplies, student new text end 50.6 new text begin activities, housing, and all other standard charges; new text end 50.7     new text begin (ix) the school's policy about refunds and adjustments; new text end 50.8     new text begin (x) the school's policy about granting credit for prior education, training, and new text end 50.9 new text begin experience; and new text end 50.10     new text begin (xi) the school's policies about student admission, evaluation, suspension, and new text end 50.11 new text begin dismissal. new text end 50.12    Subd. 2. Financial records. The office shall not disclose financial records new text begin or new text end 50.13 new text begin accreditation reports new text end provided to it by a school pursuant to this section except for the 50.14purpose of defending, at hearings pursuant to chapter 14, or other appeal proceedings, its 50.15decision to approve or not to approve the granting of degrees or the use of a name by the 50.16school. Section 15.17, subdivision 4, shall not apply to such records. 50.17     new text begin Subd. 3. new text end new text begin Additional information. new text end new text begin If the office is unable to determine the nature new text end 50.18 new text begin and activities of a school on the basis of the information in subdivision 1, the office shall new text end 50.19 new text begin notify the school of additional information needed. new text end 50.20     new text begin Subd. 4. new text end new text begin Verification of information. new text end new text begin The office may verify the accuracy of new text end 50.21 new text begin submitted information by inspection, visitation, or any other means it considers necessary. new text end 50.22     new text begin Subd. 5. new text end new text begin Public information. new text end new text begin All information submitted to the office is public new text end 50.23 new text begin information except financial and accreditation records and information. The office may new text end 50.24 new text begin disclose financial records or information to defend its decision to approve or disapprove new text end 50.25 new text begin granting of degrees or the use of a name or its decisions to revoke the approval at a hearing new text end 50.26 new text begin under chapter 14 or other legal proceedings. new text end 50.27     new text begin Subd. 6. new text end new text begin Late registration penalty. new text end new text begin Applications for renewal for any registration new text end 50.28 new text begin received after the deadline date specified in the renewal materials provided by the office new text end 50.29 new text begin are subject to a late fee equal to 20 percent of the annual registration renewal fee. new text end 50.30     new text begin Subd. 7. new text end new text begin Out-of-state expenses. new text end new text begin A school shall reimburse the office for actual costs new text end 50.31 new text begin associated with a site evaluation visit outside Minnesota if the visit is necessary under new text end 50.32 new text begin section 136A.64, subdivision 1 or 3. new text end 50.33    Sec. 6. new text begin [136A.645] SCHOOL CLOSURE. new text end 50.34     new text begin (a) When a school decides to cease postsecondary education operations, or if its new text end 50.35 new text begin registration is refused, revoked, or suspended it must cooperate with the office in assisting new text end 51.1 new text begin students to find alternative means to complete their studies with a minimum of disruption, new text end 51.2 new text begin and inform the office of the following: new text end 51.3     new text begin (1) the planned date for termination of postsecondary education operations; new text end 51.4     new text begin (2) the planned date for the transfer of the student records; new text end 51.5     new text begin (3) confirmation of the name and address of the organization to receive and hold new text end 51.6 new text begin the student records; and new text end 51.7     new text begin (4) the official at the organization receiving the student records who is designated to new text end 51.8 new text begin provide official copies of records or transcripts upon request. new text end 51.9     new text begin (b) Upon notice from a school of its intention to cease operations, or if a school's new text end 51.10 new text begin registration is revoked, refused, or suspended, the office shall notify the school of the date new text end 51.11 new text begin on which it must cease the enrollment of students and all postsecondary educational new text end 51.12 new text begin operations. new text end 51.13    Sec. 7. new text begin [136A.646] ADDITIONAL SECURITY. new text end 51.14     new text begin In the event any registered institution is notified by the United States Department new text end 51.15 new text begin of Education that it has fallen below minimum financial standards and that its continued new text end 51.16 new text begin participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, new text end 51.17 new text begin Code of Federal Regulations, title 34, section 668.175, paragraph (f), or a Letter of Credit new text end 51.18 new text begin Alternative, Code of Federal Regulations, title 34, section 668.175, paragraph (c), the new text end 51.19 new text begin institution shall provide a surety bond conditioned upon the faithful performance of all new text end 51.20 new text begin contracts and agreements with students in a sum equal to the "letter of credit" required by new text end 51.21 new text begin the United States Department of Education in the Letter of Credit Alternative, but in no new text end 51.22 new text begin event shall such bond be less than $10,000 and not more than $250,000. new text end 51.23    Sec. 8. Minnesota Statutes 2006, section 136A.65, is amended to read: 51.24136A.65 APPROVAL OF DEGREES AND NAME. 51.25    Subdivision 1. Prohibition. No school subject to registration shall grant a degree 51.26unless such degree is new text begin and its underlying curriculum are new text end approved by the office, nor 51.27shall any school subject to registration use the name "college," "academy," "institute" or 51.28"university" in its name without approval by the office. 51.29     new text begin Subd. 1a. new text end new text begin Accreditation; requirement. new text end new text begin A school must not be registered or new text end 51.30 new text begin authorized to offer any degree at any level unless the school is accredited by an agency new text end 51.31 new text begin recognized by the United States Department of Education for purposes of eligibility to new text end 51.32 new text begin participate in Title IV federal financial aid programs. Any registered school undergoing new text end 51.33 new text begin institutional accreditation shall inform the office of site visits by the accrediting agency new text end 52.1 new text begin and provide office staff the opportunity to attend the visits, including any exit interviews. new text end 52.2 new text begin The institution must provide the office with a copy of the final report upon receipt. new text end 52.3    Subd. 2. Procedures. The office shall establish procedures for approval, including 52.4notice and an opportunity for a hearing pursuant to chapter 14 if such approval is not 52.5granted. If a hearing is requested, no disapproval shall take effect until after such hearing. 52.6    Subd. 3. Application. A school subject to registration shall be granted approval to 52.7use the term "college," "academy," "institute" or "university" in its name whether or not it 52.8offers a program leading to a degree, if it was organized, operating and using such term in 52.9its name on or before August 1, 1975, and if it meets the other policies and standards for 52.10approval established by the office. 52.11     new text begin Subd. 4. new text end new text begin Criteria for approval. new text end new text begin (a) A school applying to be registered and to have new text end 52.12 new text begin its degree or degrees and name approved must substantially meet the following criteria: new text end 52.13     new text begin (1) the school has an organizational framework with administrative and teaching new text end 52.14 new text begin personnel to provide the educational programs offered; new text end 52.15     new text begin (2) the school has financial resources sufficient to meet the school's financial new text end 52.16 new text begin obligations, including refunding tuition and other charges consistent with its stated policy new text end 52.17 new text begin if the institution is dissolved, or if claims for refunds are made, to provide service to the new text end 52.18 new text begin students as promised, and to provide educational programs leading to degrees as offered; new text end 52.19     new text begin (3) the school operates in conformity with generally accepted budgeting and new text end 52.20 new text begin accounting procedures, such as the standards adopted by the National Association of new text end 52.21 new text begin College and University Business Officers, located at 1 Dupont Circle, Washington, D.C., new text end 52.22 new text begin 20036; new text end 52.23     new text begin (4) the school provides an educational program leading to the degree it offers; new text end 52.24     new text begin (5) the school provides appropriate and accessible library, laboratory, and other new text end 52.25 new text begin physical facilities to support the educational program offered; new text end 52.26     new text begin (6) the school has a policy on freedom or limitation of expression and inquiry for new text end 52.27 new text begin faculty and students which is published or available on request; new text end 52.28     new text begin (7) the school uses only publications and advertisements which are truthful and do new text end 52.29 new text begin not give any false, fraudulent, deceptive, inaccurate, or misleading impressions about the new text end 52.30 new text begin school, its personnel, programs, services, or occupational opportunities for its graduates new text end 52.31 new text begin for promotion and student recruitment; new text end 52.32     new text begin (8) the school's compensated recruiting agents who are operating in Minnesota new text end 52.33 new text begin identify themselves as agents of the school when talking to or corresponding with students new text end 52.34 new text begin and prospective students; and new text end 52.35     new text begin (9) the school provides information to students and prospective students concerning: new text end 53.1     new text begin (i) comprehensive and accurate policies relating to student admission, evaluation, new text end 53.2 new text begin suspension, and dismissal; new text end 53.3     new text begin (ii) clear and accurate policies relating to granting credit for prior education, training, new text end 53.4 new text begin and experience and for courses offered by the school; new text end 53.5     new text begin (iii) current schedules of fees, charges for tuition, required supplies, student new text end 53.6 new text begin activities, housing, and all other standard charges; new text end 53.7     new text begin (iv) policies regarding refunds and adjustments for withdrawal or modification new text end 53.8 new text begin of enrollment status; and new text end 53.9     new text begin (v) procedures and standards used for selection of recipients and the terms of new text end 53.10 new text begin payment and repayment for any financial aid program. new text end 53.11     new text begin (b) An application for degree approval must also include: new text end 53.12     new text begin (i) title of degree and formal recognition awarded; new text end 53.13     new text begin (ii) location where such degree will be offered; new text end 53.14     new text begin (iii) proposed implementation date of the degree; new text end 53.15     new text begin (iv) admissions requirements for the degree; new text end 53.16     new text begin (v) length of the degree; new text end 53.17     new text begin (vi) projected enrollment for a period of five years; new text end 53.18     new text begin (vii) the curriculum required for the degree, including course syllabi or outlines; new text end 53.19     new text begin (viii) statement of academic and administrative mechanisms planned for monitoring new text end 53.20 new text begin the quality of the proposed degree; new text end 53.21     new text begin (ix) statement of satisfaction of professional licensure criteria, if applicable; new text end 53.22     new text begin (x) documentation of the availability of clinical, internship, externship, or practicum new text end 53.23 new text begin sites, if applicable; and new text end 53.24     new text begin (xi) statement of how the degree fulfills the institution's mission and goals, new text end 53.25 new text begin complements existing degrees, and contributes to the school's viability. new text end 53.26     new text begin Subd. 5. new text end new text begin Requirements for degree approval. new text end new text begin For each degree a school offers to a new text end 53.27 new text begin student, where the student does not leave Minnesota for the major portion of the program new text end 53.28 new text begin or course leading to the degree, the school must have: new text end 53.29     new text begin (1) qualified teaching personnel to provide the educational programs for each degree new text end 53.30 new text begin for which approval is sought; new text end 53.31     new text begin (2) appropriate educational programs leading to each degree for which approval new text end 53.32 new text begin is sought; new text end 53.33     new text begin (3) appropriate and accessible library, laboratory, and other physical facilities to new text end 53.34 new text begin support the educational program for each degree for which approval is sought; and new text end 53.35     new text begin (4) a rationale showing that degree programs are consistent with the school's mission new text end 53.36 new text begin and goals. new text end 54.1     new text begin Subd. 6. new text end new text begin Name. new text end new text begin A school may use the term "academy" or "institute" in its name new text end 54.2 new text begin without meeting any additional requirements. A school may use the term "college" in its new text end 54.3 new text begin name if it offers at least one program leading to an associate degree. A school may use new text end 54.4 new text begin the term "university" in its name if it offers at least one program leading to a master's new text end 54.5 new text begin or doctorate degree. new text end 54.6     new text begin Subd. 7. new text end new text begin Grandfathered names. new text end new text begin Names used before August 1, 2007, by a school, new text end 54.7 new text begin organized, operating, and using the term "academy," "institute," "college," or "university" new text end 54.8 new text begin in its name on or before August 1, 2007, may continue using such term whether or not it new text end 54.9 new text begin offers a program leading to a degree. new text end 54.10     new text begin Subd. 8. new text end new text begin Conditional approval. new text end new text begin The office may grant conditional approval for a new text end 54.11 new text begin degree or use of a term in its name for a period of less than one year if doing so would be new text end 54.12 new text begin in the best interests of currently enrolled students or prospective students. new text end 54.13     new text begin Subd. 9. new text end new text begin Disapproval of registration appeal. new text end new text begin If a school's degree or use of a term new text end 54.14 new text begin in its name is disapproved by the office, the school may request a hearing under chapter new text end 54.15 new text begin 14. The request must be in writing and made to the office within 30 days of the date new text end 54.16 new text begin the school is notified of the disapproval. new text end 54.17     new text begin (a) The office may refuse to renew, revoke, or suspend registration, approval of new text end 54.18 new text begin a school's degree, or use of a regulated term in its name by giving written notice and new text end 54.19 new text begin reasons to the school. The school may request a hearing under chapter 14. If a hearing is new text end 54.20 new text begin requested, no revocation or suspension shall take effect until after the hearing. new text end 54.21     new text begin (b) Reasons for revocation or suspension of registration or approval may be for one new text end 54.22 new text begin or more of the following reasons: new text end 54.23     new text begin (1) violating the provisions of sections 136A.615 to 136A.71; new text end 54.24     new text begin (2) providing false, misleading, or incomplete information to the office; new text end 54.25     new text begin (3) presenting information about the school which is false, fraudulent, misleading, new text end 54.26 new text begin deceptive, or inaccurate in a material respect to prospective students; or new text end 54.27     new text begin (4) refusing to allow reasonable inspection or to supply reasonable information after new text end 54.28 new text begin a written request by the office has been received. new text end 54.29    Sec. 9. Minnesota Statutes 2006, section 136A.653, is amended to read: 54.30136A.653 EXEMPTIONS. 54.31    Subdivision 1. Exemption. A school that is subject to licensing by the office under 54.32chapter 141, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71. 54.33The determination of the office as to whether a particular school is subject to regulation 54.34under chapter 141 is final for the purposes of this exemption. 55.1    Subd. 2. Educational program; nonprofit organizations. Educational programs 55.2which are sponsored by a bona fide and nonprofit trade, labor, business, professional 55.3or fraternal organization, which programs are conducted solely for that organization's 55.4membership or for the members of the particular industries or professions served by that 55.5organization, and which are not available to the public on a fee basis, are exempted from 55.6the provisions of sections new text begin 136A.615 new text end to 136A.71. 55.7    Subd. 3. Educational program; business firms. Educational programs which are 55.8sponsored by a business firm for the training of its employees or the employees of other 55.9business firms with which it has contracted to provide educational services at no cost to the 55.10employees are exempted from the provisions of sections new text begin 136A.615 new text end to 136A.71. 55.11    Subd. 4. Voluntary submission. Any school or program exempted from the 55.12provisions of sections new text begin 136A.615 new text end to 136A.71 by the provisions of this section 55.13may voluntarily submit to the provisions of those sections. 55.14    Sec. 10. Minnesota Statutes 2006, section 136A.657, is amended to read: 55.15136A.657 EXEMPTION; RELIGIOUS SCHOOLS. 55.16    Subdivision 1. Exemption. Any school or any department or branch of a school (a) 55.17which is substantially owned, operated or supported by a bona fide church or religious 55.18organization; (b) whose programs are primarily designed for, aimed at and attended by 55.19persons who sincerely hold or seek to learn the particular religious faith or beliefs of that 55.20church or religious organization; and (c) whose programs are primarily intended to prepare 55.21its students to become ministers of, to enter into some other vocation closely related to, or 55.22to conduct their lives in consonance with, the particular faith of that church or religious 55.23organization, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71. 55.24    Subd. 2. Limitation. This exemption shall not extend to any school or to any 55.25department or branch of a school which through advertisements or solicitations represents 55.26to any students or prospective students that the school, its aims, goals, missions or 55.27purposes or its programs are different from those described in subdivision 1. This 55.28exemption shall not extend to any school which represents to any student or prospective 55.29student that the major purpose of its programs is to prepare the student for a vocation not 55.30closely related to that particular religious faith, or to provide the student with a general 55.31educational program recognized by other schools or the broader educational, business or 55.32social community as being substantially equivalent to the educational programs offered 55.33by schools or departments or branches of schools which are not exempt from sections 55.34136A.61 new text begin 136A.615 new text end to 136A.71, and rules adopted pursuant thereto. 56.1    Subd. 3. Scope. Nothing in sections new text begin 136A.615 new text end to 136A.71, or the rules 56.2adopted pursuant thereto, shall be interpreted as permitting the office to determine the 56.3truth or falsity of any particular set of religious beliefs. 56.4     new text begin Subd. 4. new text end new text begin Statement required; religious nature. new text end new text begin Any degree awarded upon new text end 56.5 new text begin completion of a religiously exempt program shall include descriptive language to make new text end 56.6 new text begin the religious nature of the award clear. new text end 56.7    Sec. 11. Minnesota Statutes 2006, section 136A.66, is amended to read: 56.8136A.66 LIST. 56.9    The office shall maintain a list of schools new text begin registered institutions new text end authorized to grant 56.10degrees and schools authorized to use the name "college," "academy," "institute" or 56.11"university," and shall make such list available to the public. 56.12    Sec. 12. Minnesota Statutes 2006, section 136A.67, is amended to read: 56.13136A.67 UNAUTHORIZED REPRESENTATIONS. 56.14    No school and none of its officials or employees shall advertise or represent in any 56.15manner that such school is approved or accredited by the office or state of Minnesota 56.16except that any new text begin A new text end school which is duly registered with the office, or any of its officials or 56.17employees, may represent new text begin in advertising and shall disclose in catalogues, applications, new text end 56.18 new text begin and enrollment materials new text end that the school is registered with the office. new text begin by prominently new text end 56.19 new text begin displaying the following statement: "(Name of school) is registered as a private institution new text end 56.20 new text begin with the Minnesota Office of Higher Education pursuant to sections 136A.615 to 136A.71. new text end 56.21 new text begin Registration is not an endorsement of the institution. Credits earned at the institution new text end 56.22 new text begin may not transfer to all other institutions." new text end 56.23    Sec. 13. new text begin [136A.675] RISK ANALYSIS. new text end 56.24     new text begin The office shall develop a set of financial and programmatic evaluation metrics to new text end 56.25 new text begin aid in the detection of the failure or potential failure of a school to meet the standards new text end 56.26 new text begin established under sections 136A.61 to 136A.71. These metrics shall include indicators new text end 56.27 new text begin of financial stability, changes in the senior management or the financial aid and senior new text end 56.28 new text begin administrative staff of an institution, changes in enrollment, changes in program offerings, new text end 56.29 new text begin and changes in faculty staffing patterns. The development of financial standards shall use new text end 56.30 new text begin industry standards as benchmarks. The development of the nonfinancial standards shall new text end 56.31 new text begin include a measure of trends and dramatic changes in trends or practice. The agency must new text end 56.32 new text begin specify the metrics and standards for each area and provide a copy to each registered new text end 56.33 new text begin institution and post them on the agency Web site. The agency shall use regularly reported new text end 57.1 new text begin data submitted to the federal government or other regulatory or accreditation agencies new text end 57.2 new text begin wherever possible. The agency may require more frequent data reporting by an institution new text end 57.3 new text begin to ascertain whether the standards are being met. new text end 57.4    Sec. 14. Minnesota Statutes 2006, section 136A.68, is amended to read: 57.5136A.68 RECORDS. 57.6    After August 1, 1975, all schools located in this state must maintain permanent 57.7records of all students enrolled therein at any time. The office may require schools to 57.8provide a plan acceptable to the office for preserving all such records for at least ten years. 57.9The office may require that such plan include the filing of a continuous surety bond or a 57.10deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving 57.11records after such school ceases to exist. new text begin A registered school shall maintain a permanent new text end 57.12 new text begin record for each student for 50 years from the last date of the student's attendance. A new text end 57.13 new text begin registered school offering distance instruction to a student located in Minnesota shall new text end 57.14 new text begin maintain a permanent record for each Minnesota student for 50 years from the last date of new text end 57.15 new text begin the student's attendance. Records include a student's academic transcript, documents, and new text end 57.16 new text begin files containing student data about academic credits earned, courses completed, grades new text end 57.17 new text begin awarded, degrees awarded, and periods of attendance. To preserve permanent records, a new text end 57.18 new text begin school shall submit a plan that meets the following requirements: new text end 57.19     new text begin (1) at least one copy of the records must be held in a secure, fireproof depository new text end 57.20 new text begin or duplicate records must be maintained off site in a secure location and in a manner new text end 57.21 new text begin approved by the office; new text end 57.22     new text begin (2) an appropriate official must be designated to provide a student with copies of new text end 57.23 new text begin records or a transcript upon request; new text end 57.24     new text begin (3) an alternative method approved by the office of complying with clauses (1) and new text end 57.25 new text begin (2) must be established if the school ceases to exist; and new text end 57.26     new text begin (4) if the school has no binding agreement approved by the office for preserving new text end 57.27 new text begin student records, a continuous surety bond must be filed with the office in an amount not to new text end 57.28 new text begin exceed $20,000. The bond shall run to the state of Minnesota. new text end 57.29    Sec. 15. Minnesota Statutes 2006, section 136A.69, is amended to read: 57.30136A.69 FEES. 57.31     new text begin Subdivision 1. new text end new text begin Registration fees. new text end The office shall collect reasonable registration 57.32fees that are sufficient to recover, but do not exceed, its costs of administering the 57.33registration program. The office shall charge $1,100 for initial registration fees and $950 57.34for annual renewal fees. 58.1     new text begin Subd. 2. new text end new text begin Degree level addition fee. new text end new text begin The office processing fee for adding a degree new text end 58.2 new text begin level to an existing program is $2,000 per program. new text end 58.3     new text begin Subd. 3. new text end new text begin Program addition fee. new text end new text begin The office processing fee for adding a program new text end 58.4 new text begin that represents a significant departure in the objectives, content, or method of delivery of new text end 58.5 new text begin programs that are currently offered by the school is $500 per program. new text end 58.6     new text begin Subd. 4. new text end new text begin Visit or consulting fee. new text end new text begin If the office determines that a fact-finding visit new text end 58.7 new text begin or outside consultant is necessary to review or evaluate any new or revised program, the new text end 58.8 new text begin office shall be reimbursed for the expenses incurred related to the review as follows: new text end 58.9     new text begin (1) $300 for the team base fee or for a paper review conducted by a consultant if the new text end 58.10 new text begin office determines that a fact-finding visit is not required; new text end 58.11     new text begin (2) $300 for each day or part thereof on site per team member; and new text end 58.12     new text begin (3) the actual cost of customary meals, lodging, and related travel expenses incurred new text end 58.13 new text begin by team members. new text end 58.14     new text begin Subd. 5. new text end new text begin Modification fee. new text end new text begin The fee for modification of any existing program is new text end 58.15 new text begin $100 and is due if there is: new text end 58.16     new text begin (1) an increase or decrease of 25 percent or more from the original date of program new text end 58.17 new text begin approval, in clock hours, credit hours, or calendar length of an existing program; new text end 58.18     new text begin (2) a change in academic measurement from clock hours to credit hours or vice new text end 58.19 new text begin versa; or new text end 58.20     new text begin (3) an addition or alteration of courses that represent a 25 percent change or more in new text end 58.21 new text begin the objectives, content, or methods of delivery. new text end 58.22    Sec. 16. new text begin [136A.705] PENALTY. new text end 58.23     new text begin The director may assess fines for violations of a provision of sections 136A.615 to new text end 58.24 new text begin 136A.71. Each day's failure to comply with a provision of sections 136A.615 to 136A.71 new text end 58.25 new text begin shall be a separate violation and fines shall not exceed $500 per day per violation. new text end 58.26 new text begin Amounts received under this section must be deposited in the special revenue fund and new text end 58.27 new text begin are appropriated in fiscal years 2008 and 2009 for the purposes in sections 136A.615 to new text end 58.28 new text begin 136A.71. new text end 58.29    Sec. 17. Minnesota Statutes 2006, section 136A.71, is amended to read: 58.30136A.71 INJUNCTION. 58.31    Upon application of the attorney general the district courts shall have jurisdiction to 58.32enjoin any violations of sections new text begin 136A.615 new text end to 136A.71. 58.33    Sec. 18. Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read: 59.1    Subd. 1a. Office new text begin of Higher Education or office new text end . "Office new text begin of Higher Education new text end " new text begin or new text end 59.2 new text begin "office" new text end means the Minnesota Office of Higher Education. 59.3    Sec. 19. Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read: 59.4    Subd. 5. School. "School" means any person, within or outside the state, who 59.5maintains, advertises, new text begin administers, new text end solicits new text begin for new text end , or conducts any program for profit at 59.6any new text begin less than an associate degree new text end level other than baccalaureate or graduate programs, 59.7and is not specifically exempted by sections to new text begin and is not registered as a private new text end 59.8 new text begin institution under sections 136A.615 to 136A.71 and is not specifically exempted by new text end 59.9 new text begin section new text end 141.35 new text begin or 141.37 new text end . 59.10    Sec. 20. Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read: 59.11    Subdivision 1. Required. A school must not maintain, advertise, solicit for, 59.12 new text begin administer, new text end or conduct any program in Minnesota without first obtaining a license from 59.13the office. 59.14    Sec. 21. Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read: 59.15    Subd. 5. Bond. (a) No license shall be issued to any school which maintains, 59.16conducts, solicits for, or advertises within the state of Minnesota any program, unless the 59.17applicant files with the office a continuous corporate surety bond written by a company 59.18authorized to do business in Minnesota conditioned upon the faithful performance of all 59.19contracts and agreements with students made by the applicant. 59.20    (b) The amount of the surety bond shall be ten percent of the preceding year's gross 59.21income from student tuition, fees, and other required institutional charges, but in no event 59.22less than $10,000 nor greater than $250,000, except that a school may deposit a greater 59.23amount at its own discretion. A school in each annual application for licensure must 59.24compute the amount of the surety bond and verify that the amount of the surety bond 59.25complies with this subdivision, unless the school maintains a surety bond equal to at least 59.26$250,000. A school that operates at two or more locations may combine gross income 59.27from student tuition, fees, and other required institutional charges for all locations for the 59.28purpose of determining the annual surety bond requirement. The gross tuition and fees 59.29used to determine the amount of the surety bond required for a school having a license for 59.30the sole purpose of recruiting students in Minnesota shall be only that paid to the school 59.31by the students recruited from Minnesota. 59.32    (c) The bond shall run to the state of Minnesota and to any person who may have a 59.33cause of action against the applicant arising at any time after the bond is filed and before it 60.1is canceled for breach of any contract or agreement made by the applicant with any student. 60.2The aggregate liability of the surety for all breaches of the conditions of the bond shall not 60.3exceed the principal sum deposited by the school under paragraph (b). The surety of any 60.4bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved 60.5of liability for any breach of condition occurring after the effective date of cancellation. 60.6    (d) In lieu of bond, the applicant may deposit with the commissioner of finance a 60.7sum equal to the amount of the required surety bond in cash, or securities as may be 60.8legally purchased by savings banks or for trust funds in an aggregate market value equal 60.9to the amount of the required surety bond. 60.10    (e) Failure of a school to post and maintain the required surety bond or deposit under 60.11paragraph (d) may new text begin shall new text end result in denial, suspension, or revocation of the school's license. 60.12    Sec. 22. Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read: 60.13    Subd. 7. Minimum standards. A license shall be issued if the office first 60.14determines: 60.15    (1) that the applicant has a sound financial condition with sufficient resources 60.16available to: 60.17    (i) meet the school's financial obligations; 60.18    (ii) refund all tuition and other charges, within a reasonable period of time, in the 60.19event of dissolution of the school or in the event of any justifiable claims for refund against 60.20the school by the student body; 60.21    (iii) provide adequate service to its students and prospective students; and 60.22    (iv) maintain and support the school; 60.23    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 60.24and the necessary number of work stations to prepare adequately the students currently 60.25enrolled, and those proposed to be enrolled; 60.26    (3) that the applicant employs a sufficient number of qualified teaching personnel to 60.27provide the educational programs contemplated; 60.28    (4) that the school has an organizational framework with administrative and 60.29instructional personnel to provide the programs and services it intends to offer; 60.30    (5) that the premises and conditions under which the students work and study are 60.31sanitary, healthful, and safe, according to modern standards; 60.32    (6) that the quality and content of each occupational course or program of study 60.33provides education and adequate preparation to enrolled students for entry level positions 60.34in the occupation for which prepared; 61.1    (7) that the living quarters which are owned, maintained, new text begin recommended, new text end or approved 61.2by the applicant for students are sanitary and safe; 61.3    (8) that the contract or enrollment agreement used by the school complies with 61.4the provisions in section 141.265; 61.5    (9) that contracts and agreements do not contain a wage assignment provision or a 61.6confession of judgment clause; and 61.7    (10) that there has been no adjudication of fraud or misrepresentation in any 61.8criminal, civil, or administrative proceeding in any jurisdiction against the school or its 61.9owner, officers, agents, or sponsoring organization. 61.10    Sec. 23. Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read: 61.11    Subd. 9. Catalog, brochure, or electronic display. Before a license is issued to 61.12a school, the school shall furnish to the office a catalog, brochure, or electronic display 61.13including: 61.14    (1) identifying data, such as volume number and date of publication; 61.15    (2) name and address of the school and its governing body and officials; 61.16    (3) a calendar of the school showing legal holidays, beginning and ending dates of 61.17each course quarter, term, or semester, and other important dates; 61.18    (4) the school policy and regulations on enrollment including dates and specific 61.19entrance requirements for each program; 61.20    (5) the school policy and regulations about leave, absences, class cuts, make-up 61.21work, tardiness, and interruptions for unsatisfactory attendance; 61.22    (6) the school policy and regulations about standards of progress for the student 61.23including the grading system of the school, the minimum grades considered satisfactory, 61.24conditions for interruption for unsatisfactory grades or progress, a description of any 61.25probationary period allowed by the school, and conditions of reentrance for those 61.26dismissed for unsatisfactory progress; 61.27    (7) the school policy and regulations about student conduct and conditions for 61.28dismissal for unsatisfactory conduct; 61.29    (8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student 61.30activities, laboratory fees, service charges, rentals, deposits, and all other charges; 61.31    (9) the school policy and regulations, including an explanation of section 141.271, 61.32about refunding tuition, fees, and other charges if the student does not enter the program, 61.33withdraws from the program, or the program is discontinued; 61.34    (10) a description of the available facilities and equipment; 62.1    (11) a course outline syllabus for each course offered showing course objectives, 62.2subjects or units in the course, type of work or skill to be learned, and approximate time, 62.3hours, or credits to be spent on each subject or unit; 62.4    (12) the school policy and regulations about granting credit for previous education 62.5and preparation; 62.6    (13) new text begin a notice to students relating to the transferability of any credits earned at the new text end 62.7 new text begin school to other institutions; new text end 62.8     new text begin (14) new text end a procedure for investigating and resolving student complaints; and 62.9    (14) new text begin (15) new text end the name and address of the Minnesota Office of Higher Education. 62.10    A school that is exclusively a distance education school is exempt from clauses 62.11(3) and (5). 62.12    Sec. 24. Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read: 62.13    Subd. 10. Placement records. (a) Before a license is issued new text begin reissued new text end to a school 62.14that offers, advertises or implies a placement service, the school shall file with the office 62.15for the past year and thereafter at reasonable intervals determined by the office, a certified 62.16copy of the school's placement record, containing a list of graduates, a description of their 62.17jobs, names of their employers, and other information as the office may prescribe. 62.18    (b) Each school that offers a placement service shall furnish to each prospective 62.19student, new text begin upon request, new text end prior to enrollment, written information concerning the percentage 62.20of the previous year's graduates who were placed in the occupation for which prepared or 62.21in related employment. 62.22    Sec. 25. Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read: 62.23    Subd. 12. Permanent records. A school licensed under this chapter and located 62.24in Minnesota shall maintain a permanent record for each student for 50 years from the 62.25last date of the student's attendance. A school licensed under this chapter and offering 62.26distance instruction to a student located in Minnesota shall maintain a permanent record 62.27for each Minnesota student for 50 years from the last date of the student's attendance. 62.28Records include school transcripts, documents, and files containing student data about 62.29academic credits earned, courses completed, grades awarded, degrees awarded, and 62.30periods of attendance. To preserve permanent records, a school shall submit a plan that 62.31meets the following requirements: 62.32    (1) at least one copy of the records must be held in a secure, fireproof depository; 62.33    (2) an appropriate official must be designated to provide a student with copies of 62.34records or a transcript upon request; 63.1    (3) an alternative method, approved by the office, of complying with clauses (1) and 63.2(2) must be established if the school ceases to exist; and 63.3    (4) a continuous surety bond must be filed with the office in an amount not to exceed 63.4$20,000 if the school has no binding agreement new text begin approved by the office, new text end for preserving 63.5student records or a trust must be arranged if the school ceases to exist. new text begin The bond shall run new text end 63.6 new text begin to the state of Minnesota. new text end 63.7    Sec. 26. Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read: 63.8    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 63.9renewal licensure application is: 63.10    (1) for a category A school, as determined by the office, the fee is $865 if the school 63.11offers one program or $1,150 if the school offers two or more programs; and 63.12    (2) for a category B or C school, as determined by the office, the fee is $430 if the 63.13school offers one program or $575 if the school offers two or more programs. 63.14    (b) If a license renewal application is not received by the office by the close of 63.15business at least 60 days before the expiration of the current license, a late fee of $100 63.16per business day new text begin , not to exceed $3,000, new text end shall be assessed. 63.17    Sec. 27. Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read: 63.18    Subd. 2. Contract information. A contract or enrollment agreement used by a 63.19school must include at least the following: 63.20    (1) the name and address of the school, clearly stated; 63.21    (2) a clear and conspicuous disclosure that the agreement is a legally binding 63.22instrument upon written acceptance of the student by the school unless canceled under 63.23section 141.271; 63.24    (3) the school's cancellation and refund policy that shall be clearly and conspicuously 63.25entitled "Buyer's Right to Cancel"; 63.26    (4) a clear statement of total cost of the program including tuition and all other 63.27charges; 63.28    (5) the name and description of the program, including the number of hours or 63.29credits of classroom instruction, or distance instruction, that shall be included; and 63.30    (6) a clear and conspicuous explanation of the form and means of notice the student 63.31should use in the event the student elects to cancel the contract or sale, the effective 63.32date of cancellation, and the name and address of the seller to which the notice should 63.33be sent or delivered. 64.1 new text begin The contract or enrollment agreement must not include a wage assignment provision or a new text end 64.2 new text begin confession of judgment clause. new text end 64.3    Sec. 28. Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read: 64.4    Subd. 10. Cancellation occurrence. Written notice of cancellation shall take place 64.5on the date the letter of cancellation is postmarked or, in the cases where the notice is hand 64.6carried, it shall occur on the date the notice is delivered to the school. If a student has not 64.7attended classes new text begin class new text end for a period of 21 consecutive days new text begin without contacting the school to new text end 64.8 new text begin indicate an intent to continue in school or otherwise making arrangements concerning the new text end 64.9 new text begin absence new text end , the student is considered to have withdrawn from school for all purposes as of 64.10the student's last documented date of attendance. 64.11    Sec. 29. Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read: 64.12    Subd. 12. Instrument not to be negotiated. A school shall not negotiate any 64.13promissory instrument received as payment of tuition or other charge prior to completion 64.14of 50 percent of the program. new text begin , except that new text end prior to that time, instruments may be transferred 64.15by assignment to purchasers who shall be subject to all defenses available against the 64.16school named as payee. 64.17    Sec. 30. Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read: 64.18    Subdivision 1. Not to advertise state approval new text begin Disclosure required new text end . Schools, 64.19agents of schools, and solicitors may not advertise or represent in writing or orally that 64.20such school is approved or accredited by the state of Minnesota, except that any new text begin A new text end 64.21school, agent, or solicitor may advertise new text begin represent in advertisements and shall disclose new text end 64.22 new text begin in catalogues, applications, and enrollment materials new text end that the school and solicitor have 64.23been new text begin is new text end duly licensed by the state using new text begin by prominently displaying new text end the following language new text begin new text end 64.24 new text begin statement new text end : 64.25"(Name of school) is licensed as a private career school with the Minnesota Office of 64.26Higher Education. Licensure is not an endorsement of the institution. Credits earned at the 64.27institution may not transfer to all other institutions. The educational programs may not 64.28meet the needs of every student or employer." 64.29    Sec. 31. Minnesota Statutes 2006, section 141.32, is amended to read: 64.30141.32 PENALTY. 64.31    Violation of a provision of this chapter shall be a misdemeanor. Each day's failure 64.32to comply with this chapter shall be a separate violation. The office shall adopt rules 65.1establishing a list of civil penalties and the fine associated with each violation. Fines for 65.2violations shall not exceed $500 per day per violation. new text begin The director may assess fines for new text end 65.3 new text begin violations of a provision of this chapter. Each day's failure to comply with a provision new text end 65.4 new text begin of sections 136A.615 to 136A.71 shall be a separate violation and fines shall not exceed new text end 65.5 new text begin $500 per day per violation. Amounts received under this section must be deposited in the new text end 65.6 new text begin special revenue fund and are appropriated in fiscal years 2008 and 2009 for the purposes new text end 65.7 new text begin of this chapter. new text end 65.8    Sec. 32. Minnesota Statutes 2006, section 141.35, is amended to read: 65.9141.35 EXEMPTIONS. 65.10    Sections 141.21 to shall not apply to the following: 65.11    (1) public postsecondary institutions; 65.12    (2) private postsecondary institutions registered under sections new text begin 136A.615 new text end 65.13to 136A.71 that are nonprofit, or that are for profit and registered under sections 65.14to as of December 31, 1998, or are approved to offer exclusively baccalaureate 65.15or postbaccalaureate programs; 65.16    (3) schools of nursing accredited by the state Board of Nursing or an equivalent 65.17public board of another state or foreign country; 65.18    (4) private schools complying with the requirements of section 120A.22, subdivision 65.194 ; 65.20    (5) courses taught to students in a valid apprenticeship program taught by or 65.21required by a trade union; 65.22    (6) schools exclusively engaged in training physically or mentally disabled persons 65.23for the state of Minnesota; 65.24    (7) schools licensed by boards authorized under Minnesota law to issue licenses; 65.25    (8) schools and educational programs, or training programs, contracted for by 65.26persons, firms, corporations, government agencies, or associations, for the training of their 65.27own employees, for which no fee is charged the employee; 65.28    (9) schools engaged exclusively in the teaching of purely avocational, recreational, 65.29or remedial subjects as determined by the office; 65.30    (10) driver training schools and instructors as defined in section 171.33, subdivisions 65.311 and 2 ; 65.32    (11) classes, courses, or programs conducted by a bona fide trade, professional, or 65.33fraternal organization, solely for that organization's membership; 65.34    (12) new text begin (11) new text end programs in the fine arts provided by organizations exempt from taxation 65.35under section 290.05 and registered with the attorney general under chapter 309. For 66.1the purposes of this clause, "fine arts" means activities resulting in artistic creation or 66.2artistic performance of works of the imagination which are engaged in for the primary 66.3purpose of creative expression rather than commercial sale or employment. In making 66.4this determination the office may seek the advice and recommendation of the Minnesota 66.5Board of the Arts; 66.6    (13) new text begin (12) new text end classes, courses, or programs intended to fulfill the continuing education 66.7requirements for licensure or certification in a profession, that have been approved by 66.8a legislatively or judicially established board or agency responsible for regulating the 66.9practice of the profession, and that are offered exclusively to an individual practicing 66.10the profession; 66.11    (14) new text begin (13) new text end classes, courses, or programs intended to prepare students to sit for 66.12undergraduate, graduate, postgraduate, or occupational licensing and occupational 66.13entrance examinations; 66.14    (15) new text begin (14) new text end classes, courses, or programs providing 16 or fewer clock hours of 66.15instruction that are not part of the curriculum for an occupation or entry level employment; 66.16    (16) new text begin (15) new text end classes, courses, or programs providing instruction in personal 66.17development, modeling, or acting; 66.18    (17) new text begin (16) new text end training or instructional programs, in which one instructor teaches an 66.19individual student, that are not part of the curriculum for an occupation or are not intended 66.20to prepare a person for entry level employment; and 66.21    (18) new text begin (17) new text end schools with no physical presence in Minnesota, as determined by the 66.22office, engaged exclusively in offering distance instruction that are located in and 66.23regulated by other states or jurisdictions. 66.24    Sec. 33. new text begin [141.37] EXEMPTION; RELIGIOUS SCHOOLS. new text end 66.25     new text begin Subdivision 1. new text end new text begin Exemption. new text end new text begin Any school or any department or branch of a school: new text end 66.26     new text begin (1) which is substantially owned, operated, or supported by a bona fide church new text end 66.27 new text begin or religious organization; new text end 66.28     new text begin (2) whose programs are primarily designed for, aimed at, and attended by persons new text end 66.29 new text begin who sincerely hold or seek to learn the particular religious faith or beliefs of that church or new text end 66.30 new text begin religious organization; and new text end 66.31     new text begin (3) whose programs are primarily intended to prepare its students to become new text end 66.32 new text begin ministers of, to enter into some other vocation closely related to, or to conduct their lives new text end 66.33 new text begin in consonance with the particular faith of that church or religious organization, new text end 66.34 new text begin is exempt from the provisions of sections 141.21 to 141.32. new text end 67.1     new text begin Subd. 2. new text end new text begin Limitations. new text end new text begin (a) An exemption shall not extend to any school, department new text end 67.2 new text begin or branch of a school, or program of a school which through advertisements or solicitations new text end 67.3 new text begin represents to any students or prospective students that the school, its aims, goals, missions, new text end 67.4 new text begin purposes, or programs are different from those described in subdivision 1. new text end 67.5     new text begin (b) An exemption shall not extend to any school which represents to any student or new text end 67.6 new text begin prospective student that the major purpose of its programs is to: new text end 67.7     new text begin (1) prepare the student for a vocation not closely related to that particular religious new text end 67.8 new text begin faith; or new text end 67.9     new text begin (2) provide the student with a general educational program recognized by other new text end 67.10 new text begin schools or the broader educational, business, or social community as being substantially new text end 67.11 new text begin equivalent to the educational programs offered by schools or departments or branches of new text end 67.12 new text begin schools which are not religious in nature and are not exempt from chapter 141 and from new text end 67.13 new text begin rules adopted pursuant under this chapter. new text end 67.14     new text begin Subd. 3. new text end new text begin Scope. new text end new text begin Nothing in this chapter or the rules adopted under it shall be new text end 67.15 new text begin interpreted as permitting the office to determine the truth or falsity of any particular set new text end 67.16 new text begin of religious beliefs. new text end 67.17     new text begin Subd. 4. new text end new text begin Descriptive language required. new text end new text begin Any certificate, diploma, degree, or other new text end 67.18 new text begin formal recognition awarded upon completion of any religiously exempt program shall new text end 67.19 new text begin include such descriptive language as to make the religious nature of the award clear. new text end 67.20    Sec. 34. new text begin EFFECTIVE DATE; TRANSITION PROCESS. new text end 67.21     new text begin Changes in Minnesota Statutes, chapter 141, and sections 136A.615 to 136A.71, new text end 67.22 new text begin shall be effective July 1, 2007. Schools currently licensed pursuant to Minnesota Statutes, new text end 67.23 new text begin chapter 141, that qualify for private institution registration after July 1, 2007, shall apply new text end 67.24 new text begin for and complete the process for registration prior to the expiration of their current private new text end 67.25 new text begin career school license. Schools currently registered as private institutions pursuant to new text end 67.26 new text begin Minnesota Statutes, sections 136A.61 to 136A.71, that are required to obtain a private new text end 67.27 new text begin career school license after August 1, 2007, shall apply for and complete the process for new text end 67.28 new text begin licensure prior to the expiration of the current registration, but in any event no later than new text end 67.29 new text begin December 31, 2007. The office is authorized to extend existing license or registration for a new text end 67.30 new text begin reasonable period of time to allow for the completion of the new processes when necessary. new text end