1.1CONFERENCE COMMITTEE REPORT ON S.F. No. 1841.2A bill for an act1.3relating to higher education; authorizing data matching; modifying institution 1.4eligibility; establishing award procedures; establishing scholarship priorities; 1.5establishing powers and duties; modifying security requirements; regulating the 1.6use of certain revenues; providing for refunds; defining terms; making technical 1.7corrections; amending Minnesota Statutes 2008, sections 136A.101, subdivision 1.810; 136A.126, subdivision 1, by adding a subdivision; 136A.127, subdivision 1.96, by adding subdivisions; 136A.15, subdivision 6; 136A.16, subdivision 14; 1.10136A.62, subdivision 3; 136A.645; 136A.646; 136A.65, by adding a subdivision; 1.11136F.581, by adding a subdivision; 141.25, subdivisions 7, 13, by adding a 1.12subdivision; 141.251, subdivision 2; 141.28, subdivision 2; Minnesota Statutes 1.132009 Supplement, sections 136A.01, subdivision 2; 136A.101, subdivision 4; 1.14136A.127, subdivisions 2, 4; 299A.45, subdivision 1; 340A.404, subdivision 4a; 1.15Laws 2009, chapter 95, article 2, section 40; Laws 2010, chapter 215, article 2, 1.16sections 4, subdivision 3; 6; proposing coding for new law in Minnesota Statutes, 1.17chapters 136A; 137.1.18May 12, 20101.19The Honorable James P. Metzen1.20President of the Senate1.21The Honorable Margaret Anderson Kelliher1.22Speaker of the House of Representatives1.23We, the undersigned conferees for S.F. No. 184 report that we have agreed upon the 1.24items in dispute and recommend as follows:1.25That the House recede from its amendments and that S.F. No. 184 be further 1.26amended as follows:1.27Delete everything after the enacting clause and insert:1.28    "Section 1. Minnesota Statutes 2008, section 135A.15, subdivision 1, is amended to 1.29read:1.30    Subdivision 1. Policy required. The Board of Trustees of the Minnesota State 1.31Colleges and Universities shall, and the University of Minnesota is requested to, adopt 1.32a clear, understandable written policy on sexual harassment and sexual violence that 1.33informs victims of their rights under the crime victims bill of rights, including the right to 1.34assistance from the Crime Victims Reparations Board and the commissioner of public 2.1safety. The policy must apply to students and employees and must provide information 2.2about their rights and duties. The policy must apply to criminal incidents occurring on 2.3property owned by the postsecondary system or institution in which the victim is a 2.4student or employee of that system or institution. It must include procedures for reporting 2.5incidents of sexual harassment or sexual violence and for disciplinary actions against 2.6violators. During student registration, each technical college, community college, or state 2.7university shall, and the University of Minnesota is requested to, provide each student with 2.8information regarding its policy. A copy of the policy also shall be posted at appropriate 2.9locations on campus at all times. Each private postsecondary institution that is an eligible 2.10institution as defined in section 
         136A.101, subdivision 4 136A.155, must adopt a policy 2.11that meets the requirements of this section.  2.12    Sec. 2. Minnesota Statutes 2008, section 135A.155, is amended to read:2.13135A.155 HAZING POLICY.2.14The Board of Trustees of the Minnesota State Colleges and Universities shall, and 2.15the University of Minnesota is requested to, adopt a clear, understandable written policy 2.16on student conduct, including hazing. The policy must include procedures for reporting 2.17incidents of inappropriate hazing and for disciplinary actions against individual violators 2.18and organizations. The policy shall be made available to students by appropriate means as 2.19determined by each institution, which may include publication in a student handbook or 2.20other institutional publication, or posting by electronic display on the Internet, and shall 2.21be posted at appropriate locations on campus. A private postsecondary institution that 2.22is an eligible institution as defined in section 
         136A.101, subdivision 4 136A.155, must 2.23adopt a policy that meets the requirements of this section.  2.24    Sec. 3. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read:2.25    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 662.26years of age before the beginning of any term, semester or quarter, in which a course of 2.27study is pursued, or a person receiving a railroad retirement annuity who has reached 60 2.28years of age before the beginning of the term.2.29    Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is 2.30amended to read:2.31    Subd. 2. Responsibilities.(a) The Minnesota Office of Higher Education is 2.32responsible for:3.1(1) necessary state level administration of financial aid programs, including 3.2accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 3.3financial aid programs to the governor and the legislature;3.4(2) approval, registration, licensing, and financial aid eligibility of private collegiate 3.5and career schools, under sections 
         136A.61 to 
         136A.71 and chapter 141;3.6(3) negotiating and administering reciprocity agreements;3.7(4) publishing and distributing financial aid information and materials, and other 3.8information and materials under section 
         136A.87, to students and parents;3.9(5) collecting and maintaining student enrollment and financial aid data and 3.10reporting data on students and postsecondary institutions to develop and implement a 3.11process to measure and report on the effectiveness of postsecondary institutions;3.12(6) administering the federal programs that affect students and institutions on a 3.13statewide basis; and3.14(7) prescribing policies, procedures, and rules under chapter 14 necessary to 3.15administer the programs under its supervision.3.16(b) The office may match individual student data from the student record enrollment 3.17database with individual student financial aid data collected and maintained by the office 3.18in order to audit or evaluate federal or state supported education programs as permitted by 3.19United States Code, title 20, section 1232g(b)(3), and Code of Federal Regulations, title 3.2034, section 99.35. The office shall not release data that personally identifies parents or 3.21students other than to employees and contractors of the office.3.22    Sec. 5. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is 3.23amended to read:3.24    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 3.25educational institution located in this state or in a state with which the office has entered 3.26into a higher education reciprocity agreement on state student aid programs that (1) is 3.27operated by this state or the Board of Regents of the University of Minnesota, or (2) 3.28is operated privately and, as determined by the office, meets all of the following: (i) 3.29maintains academic standards substantially equivalent to those of comparable institutions 3.30operated in this state; (ii) is licensed or registered as a postsecondary institution by the 3.31office or another state agency; and (iii) by July 1, 2013, is participating in the federal 3.32Pell Grant program under Title IV of the Higher Education Act of 1965, as amended an 3.33institution that meets the eligibility requirements under section 136A.103.3.34    Sec. 6. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read:4.1    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress" 4.2means that: satisfactory academic progress as defined under Code of Federal Regulations, 4.3title 34, sections 668.16(e), 668.32(f), and 668.34.4.4(1) by the end of a student's second academic year of attendance at an institution, the 4.5student has at least a cumulative grade point average of C or its equivalent, or academic 4.6standing consistent with the institution's graduation requirements; and4.7(2) by the end of the first term of the third and fourth academic year of attendance, 4.8the student has a cumulative grade point average of at least a C or its equivalent.4.9    Sec. 7. [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS.4.10    (a) A postsecondary institution is eligible for state student aid under chapter 136A 4.11and sections 197.791 and 299A.45, if the institution is located in this state and: 4.12    (1) is operated by this state or the Board of Regents of the University of Minnesota; 4.13or4.14    (2) is operated privately and, as determined by the office, meets the requirements of 4.15paragraph (b).4.16    (b) A private institution must:4.17    (1) maintain academic standards substantially equivalent to those of comparable 4.18institutions operated in this state;4.19    (2) be licensed or registered as a postsecondary institution by the office; and4.20    (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of 4.21the Higher Education Act of 1965, Public Law 89-329, as amended; or4.22    (ii) if an institution was participating in state student aid programs as of June 30, 4.232010, and the institution did not participate in the federal Pell Grant program by June 30, 4.242010, the institution must require every student who enrolls to sign a disclosure form, 4.25provided by the office, stating that the institution is not participating in the federal Pell 4.26Grant program.4.27    (c) An institution that offers only graduate-level degrees or graduate-level nondegree 4.28programs, or that offers only degrees or programs that do not meet the required minimum 4.29program length to participate in the federal Pell Grant program, is an eligible institution if 4.30the institution is licensed or registered as a postsecondary institution by the office.4.31    (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes 4.32ownership as defined in section 136A.63, subdivision 2, must participate in the federal 4.33Pell Grant program within four calendar years of the first ownership change to continue 4.34eligibility.5.1    (e) An institution that loses its eligibility for the federal Pell Grant program is not an 5.2eligible institution.5.3    Sec. 8. Minnesota Statutes 2008, section 136A.126, subdivision 1, is amended to read:5.4    Subdivision 1.  Student eligibility. The director of the Office of Higher Education 5.5shall establish procedures for the distribution of scholarships to a Minnesota resident 5.6student as defined under section 136A.101, subdivision 8, who: 5.7    (1) is of one-fourth or more Indian ancestry; 5.8    (2) has applied for other existing state and federal scholarship and grant programs; 5.9    (3) is meeting satisfactory academic progress as defined under section 136A.101, 5.10subdivision 10;5.11(4) is not in default, as defined by the office, of a federal or state student educational 5.12loan;5.13(5) if enrolled in an undergraduate program, is eligible or would be eligible to 5.14receive a federal Pell Grant or a state grant based on the federal needs analysis and is 5.15enrolled for nine semester credits per term or more, or the equivalent; 5.16    (4) (6) if enrolled in a graduate program, demonstrates a remaining financial need in 5.17the award amount calculation and is enrolled, per term, on a half-time basis or more as 5.18defined by the postsecondary institution; and 5.19    (5) (7) in the opinion of the director of the Office of Higher Education, based upon 5.20postsecondary institution recommendations, has the capabilities to benefit from further 5.21education. 5.22    Sec. 9. Minnesota Statutes 2008, section 136A.126, is amended by adding a 5.23subdivision to read:5.24    Subd. 5.Awarding procedure.(a) Awards must be made on a first-come, 5.25first-served basis in the order complete applications are received. If there are multiple 5.26applications with identical completion dates, those applications are further sorted by 5.27application receipt date.5.28(b) Awards are made to eligible students until the appropriation is expended.5.29(c) Applicants not receiving a grant and for whom the office has received a 5.30completed application are placed on a waiting list in order of application completion date.5.31    Sec. 10. Minnesota Statutes 2009 Supplement, section 136A.127, subdivision 2, 5.32is amended to read:6.1    Subd. 2. Definition; qualifying program. For the purposes of this section, a 6.2"qualifying program" means a rigorous secondary school program of study defined6.3for Minnesota high school graduates recognized by the Department of Education under 6.4agreement with the Secretary of Education for the purposes of determining eligibility 6.5for the federal Academic Competitiveness Grant Program under Title IV of the Higher 6.6Education Act of 1965, as amended on August 14, 2008. If a qualifying program includes 6.7a foreign language requirement, the foreign language requirement is waived for a student 6.8whose first language is not English and who attains English language proficiency.6.9    Sec. 11. Minnesota Statutes 2009 Supplement, section 136A.127, subdivision 4, 6.10is amended to read:6.11    Subd. 4. Student eligibility. To be eligible to receive a scholarship under this 6.12section, in addition to the requirements listed under section 
         136A.121, a student must: 6.13    (1) submit a Free Application for Federal Student Aid (FAFSA); 6.14    (2) complete a qualifying program in a high school or in a home-school setting 6.15under section 
         120A.22, graduate from a Minnesota high school, and graduate with an 6.16unweighted grade point average of 2.5 or higher; 6.17    (3) qualify for a federal Pell Grant or state grant under section 
         136A.121; 6.18    (4) be a United States citizen or eligible noncitizen, as defined in section 484 of the 6.19Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, 6.20and Code of Federal Regulations, title 34, section 
         668.33; 6.21    (5) meet satisfactory academic progress as defined under section 136A.101, 6.22subdivision 10;6.23(6) be a Minnesota resident, as defined in section 
         136A.101, subdivision 8; and 6.24    (6) (7) enroll full-time in a degree, diploma, or certificate program during the 6.25academic year immediately following high school graduation at an eligible institution as 6.26defined under section 
         136A.101, subdivision 4. 6.27    Sec. 12. Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read:6.28    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 6.29educational institution that (1) is operated or regulated by this state or the Board of Regents 6.30of the University of Minnesota; (2) is operated publicly or privately in another state, is 6.31approved by the United States Secretary of Education, and, as determined by the office, 6.32maintains academic standards substantially equal to those of comparable institutions 6.33operated in this state; (3) is licensed or registered as a postsecondary institution by the 6.34office or another state agency; and (4) by July 1, 2011, is participating in the federal Pell 7.1Grant program under Title IV of the Higher Education Act of 1965, as amended. It also 7.2includes any institution chartered in a province an institution that meets the eligibility 7.3requirements under section 136A.155.7.4    Sec. 13. [136A.155] ADDITIONAL INSTITUTION ELIGIBILITY 7.5REQUIREMENTS.7.6A postsecondary institution is an eligible institution for purposes of sections 7.7136A.15 to 136A.1702, if the institution:7.8(1) meets the eligibility requirements under section 136A.103; or7.9(2) is operated publicly or privately in another state, is approved by the United States 7.10Secretary of Education, and, as determined by the office, maintains academic standards 7.11substantially equal to those of comparable institutions operated in this state.7.12    Sec. 14. Minnesota Statutes 2008, section 136A.16, subdivision 14, is amended to read:7.13    Subd. 14. Notes. The office may sell at public or private sale, at the price or prices 7.14determined by the office, any note or other instrument or obligation evidencing or securing 7.15a loan made by the office or its predecessor, including the Minnesota Higher Education 7.16Coordinating Board and the Minnesota Higher Education Services Office.7.17    Sec. 15. Minnesota Statutes 2008, section 136A.62, subdivision 3, is amended to read:7.18    Subd. 3. School. "School" means: 7.19    (1) any partnership, company, firm, society, trust, association, corporation, or any 7.20combination thereof, which (i) is, owns, or operates a private, nonprofit postsecondary 7.21education institution; (ii) is, owns, or operates a private, for-profit postsecondary education 7.22institution; or (iii) provides a postsecondary instructional program or course leading to a 7.23degree whether or not for profit; 7.24    (2) any public or private postsecondary educational institution located in another 7.25state or country which offers or makes available to a Minnesota resident any course, 7.26program or educational activity which does not require the leaving of the state for its 7.27completion; or7.28    (3) any individual, entity, or postsecondary institution located in another state 7.29that contracts with any school located within the state of Minnesota for the purpose of 7.30providing educational programs, training programs, or awarding postsecondary credits 7.31or continuing education credits to Minnesota residents that may be applied to a degree 7.32program.8.1    Sec. 16. Minnesota Statutes 2008, section 136A.645, is amended to read:8.2136A.645 SCHOOL CLOSURE.8.3    (a) When a school decides to cease postsecondary education operations, it must 8.4cooperate with the office in assisting students to find alternative means to complete their 8.5studies with a minimum of disruption, and inform the office of the following:8.6    (1) the planned date for termination of postsecondary education operations;8.7    (2) the planned date for the transfer of the student records;8.8    (3) confirmation of the name and address of the organization to receive and hold 8.9the student records; and8.10    (4) the official at the organization receiving the student records who is designated to 8.11provide official copies of records or transcripts upon request.8.12    (b) Upon notice from a school of its intention to cease operations, the office shall 8.13notify the school of the date on which it must cease the enrollment of students and all 8.14postsecondary educational operations.8.15    Without limitation as to other circumstance, a school shall be deemed to have ceased 8.16operations when the school:8.17    (1) has an unscheduled nonemergency closure or cancellation of classes for more 8.18than 24 hours without prior notice to the office;8.19    (2) announces it is closed or closing; or 8.20    (3) files for bankruptcy.8.21    Sec. 17. Minnesota Statutes 2008, section 136A.646, is amended to read:8.22136A.646 ADDITIONAL SECURITY.8.23    (a) In the event any registered institution is notified by the United States Department 8.24of Education that it has fallen below minimum financial standards and that its continued 8.25participation in Title IV will be conditioned upon its satisfying either the Zone Alternative, 8.26Code of Federal Regulations, title 34, section 
         668.175, paragraph (f), or a Letter of Credit 8.27Alternative, Code of Federal Regulations, title 34, section 
         668.175, paragraph (c), the 8.28institution shall provide a surety bond conditioned upon the faithful performance of all 8.29contracts and agreements with students in a sum equal to the "letter of credit" required by 8.30the United States Department of Education in the Letter of Credit Alternative, but in no 8.31event shall such bond be less than $10,000 nor more than $250,000.8.32(b) In lieu of a bond, the applicant may deposit with the commissioner of 8.33management and budget: 8.34(1) a sum equal to the amount of the required surety bond in cash; or 9.1(2) securities, as may be legally purchased by savings banks or for trust funds, in an 9.2aggregate market value equal to the amount of the required surety bond.9.3    Sec. 18. Minnesota Statutes 2008, section 136F.581, is amended by adding a 9.4subdivision to read:9.5    Subd. 5.Food products grown in state.Colleges and universities must make a 9.6reasonable attempt to identify and purchase food products that are grown within the state.9.7    Sec. 19. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision 9.8to read:9.9    Subd. 2a.Refunds.If a contract is deemed unenforceable under subdivision 2, a 9.10school must refund tuition, fees, and other charges received from a student or on behalf 9.11of a student within 30 days of receiving written notification and demand for refund from 9.12the Minnesota Office of Higher Education.9.13    Sec. 20. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read:9.14    Subd. 7. Minimum standards. A license shall be issued if the office first 9.15determines:9.16    (1) that the applicant has a sound financial condition with sufficient resources 9.17available to:9.18    (i) meet the school's financial obligations;9.19    (ii) refund all tuition and other charges, within a reasonable period of time, in the 9.20event of dissolution of the school or in the event of any justifiable claims for refund against 9.21the school by the student body;9.22    (iii) provide adequate service to its students and prospective students; and9.23    (iv) maintain and support the school;9.24    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 9.25and the necessary number of work stations to prepare adequately the students currently 9.26enrolled, and those proposed to be enrolled;9.27    (3) that the applicant employs a sufficient number of qualified teaching personnel to 9.28provide the educational programs contemplated;9.29    (4) that the school has an organizational framework with administrative and 9.30instructional personnel to provide the programs and services it intends to offer;9.31    (5) that the premises and conditions under which the students work and study are 9.32sanitary, healthful, and safe, according to modern standards;10.1    (6) that the quality and content of each occupational course or program of study 10.2provides education and adequate preparation to enrolled students for entry level positions 10.3in the occupation for which prepared;10.4    (7) that the living quarters which are owned, maintained, recommended, or approved 10.5by the applicant for students are sanitary and safe;10.6    (8) that the contract or enrollment agreement used by the school complies with 10.7the provisions in section 
         141.265; 10.8    (9) that contracts and agreements do not contain a wage assignment provision or a 10.9confession of judgment clause; and10.10    (10) that there has been no adjudication of fraud or misrepresentation in any 10.11criminal, civil, or administrative proceeding in any jurisdiction against the school or its 10.12owner, officers, agents, or sponsoring organization.10.13    Sec. 21. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read:10.14    Subd. 13.  Schools licensed by another state agency or board. A school required 10.15to obtain a private career school license due to the use of "academy," "institute," "college," 10.16or "university" in its name or licensed for the purpose of participating in state financial aid 10.17under chapter 136A, and which is also licensed by another state agency or board shall be 10.18required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7), 10.19and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12. 10.20    Sec. 22. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read:10.21    Subd. 2. Conditions. The office shall adopt rules establishing the conditions for 10.22renewal of a license. The conditions shall permit two levels of renewal based on the record 10.23of the school. A school that has demonstrated the quality of its program and operation 10.24through longevity and performance in the state may renew its license based on a relaxed 10.25standard of scrutiny. A school that has been in operation in Minnesota for a limited period 10.26of time or that has not performed adequately on performance indicators shall renew its 10.27license based on a strict standard of scrutiny. The office shall specify minimum longevity 10.28standards and performance indicators that must be met before a school may be permitted 10.29to operate under the relaxed standard of scrutiny. The performance indicators used in this 10.30determination shall include, but not be limited to: degree granting status, regional or 10.31national accreditation, loan default rates, placement rate of graduates, student withdrawal 10.32rates, audit results, student complaints, and school status with the United States 10.33Department of Education. Schools that meet the requirements established in rule shall be 10.34required to submit a full relicensure report once every four years, and in the interim years 11.1will be exempt from the requirements of section 
         141.25, subdivision 3, clauses (4), (5), 11.2and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4.11.3    Sec. 23. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read:11.4    Subd. 2. Unlawful designation. No school organized after November 15, 1969, 11.5shall apply to itself either as a part of its name or in any other manner the designation of 11.6"college" or "university" unless such school applies for and receives certification from the 11.7office that it meets appropriate standards and is entitled to such designation. Operating 11.8schools now using such designation may continue use thereof.11.9    Sec. 24. Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to read:11.10    Subd. 6. Entitlement transfers. An entitlement issuer may enter into an agreement 11.11with another entitlement issuer whereby the recipient entitlement issuer issues obligations 11.12pursuant to bonding authority allocated to the original entitlement issuer under this 11.13section. An entitlement issuer may enter into an agreement with an issuer which is not 11.14an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to 11.15$100,000 of which are issued pursuant to bonding authority allocated to the original 11.16entitlement issuer under this section. The agreement may be approved and executed by the 11.17mayor of the entitlement issuer with or without approval or review by the city council.11.18Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota 11.19Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural 11.20Finance Authority may transfer allocated bonding authority made available under this 11.21chapter to one another under an agreement by each agency and the commissioner.11.22    Sec. 25. Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read:11.23    Subd. 3. Allocation procedure. (a) The commissioner shall allocate available 11.24bonding authority under this section on the Monday of every other week beginning with 11.25the first Monday in August through and on the last Monday in November. Applications 11.26for allocations must be received by the department by 4:30 p.m. on the Monday preceding 11.27the Monday on which allocations are to be made. If a Monday falls on a holiday, the 11.28allocation will be made or the applications must be received by the next business day 11.29after the holiday.11.30    (b) Prior to October 1, only the following applications shall be awarded allocations 11.31from the unified pool. Allocations shall be awarded in the following order of priority:11.32    (1) applications for residential rental project bonds;11.33    (2) applications for small issue bonds for manufacturing projects; and12.1    (3) applications for small issue bonds for agricultural development bond loan 12.2projects.12.3    (c) On the first Monday in October through the last Monday in November, 12.4allocations shall be awarded from the unified pool in the following order of priority:12.5    (1) applications for student loan bonds issued by or on behalf of the Minnesota 12.6Office of Higher Education;12.7    (2) applications for mortgage bonds;12.8    (3) applications for public facility projects funded by public facility bonds;12.9    (4) applications for small issue bonds for manufacturing projects;12.10    (5) applications for small issue bonds for agricultural development bond loan 12.11projects;12.12    (6) applications for residential rental project bonds;12.13    (7) applications for enterprise zone facility bonds;12.14    (8) applications for governmental bonds; and12.15    (9) applications for redevelopment bonds.12.16    (d) If there are two or more applications for manufacturing projects from the 12.17unified pool and there is insufficient bonding authority to provide allocations for all 12.18manufacturing projects in any one allocation period, the available bonding authority shall 12.19be awarded based on the number of points awarded a project under section 
         474A.04512.20with those projects receiving the greatest number of points receiving allocation first. If 12.21two or more applications for manufacturing projects receive an equal amount of points, 12.22available bonding authority shall be awarded by lot unless otherwise agreed to by the 12.23respective issuers. 12.24    (e) If there are two or more applications for enterprise zone facility projects from 12.25the unified pool and there is insufficient bonding authority to provide allocations for 12.26all enterprise zone facility projects in any one allocation period, the available bonding 12.27authority shall be awarded based on the number of points awarded a project under section 12.28474A.045
          with those projects receiving the greatest number of points receiving allocation 12.29first. If two or more applications for enterprise zone facility projects receive an equal 12.30amount of points, available bonding authority shall be awarded by lot unless otherwise 12.31agreed to by the respective issuers. 12.32    (f) If there are two or more applications for residential rental projects from the 12.33unified pool and there is insufficient bonding authority to provide allocations for all 12.34residential rental projects in any one allocation period, the available bonding authority 12.35shall be awarded in the following order of priority: (1) projects that preserve existing 13.1federally subsidized housing; (2) projects that are not restricted to persons who are 55 13.2years of age or older; and (3) other residential rental projects.13.3    (g) From the first Monday in August through the last Monday in November, 13.4$20,000,000 of bonding authority or an amount equal to the total annual amount of 13.5bonding authority allocated to the small issue pool under section 
         474A.03, subdivision 1, 13.6less the amount allocated to issuers from the small issue pool for that year, whichever is 13.7less, is reserved within the unified pool for small issue bonds to the extent such amounts 13.8are available within the unified pool. 13.9    (h) The total amount of allocations for mortgage bonds from the housing pool and 13.10the unified pool may not exceed:13.11    (1) $10,000,000 for any one city; or13.12    (2) $20,000,000 for any number of cities in any one county.13.13    (i) The total amount of allocations for student loan bonds from the unified pool may 13.14not exceed $10,000,000 $25,000,000 per year.13.15    (j) If there is insufficient bonding authority to fund all projects within any qualified 13.16bond category other than enterprise zone facility projects, manufacturing projects, and 13.17residential rental projects, allocations shall be awarded by lot unless otherwise agreed to 13.18by the respective issuers.13.19    (k) If an application is rejected, the commissioner must notify the applicant and 13.20return the application deposit to the applicant within 30 days unless the applicant requests 13.21in writing that the application be resubmitted.13.22    (l) The granting of an allocation of bonding authority under this section must be 13.23evidenced by issuance of a certificate of allocation.13.24    Sec. 26. Laws 2009, chapter 95, article 2, section 40, is amended to read:13.25    Sec. 40. TEACHER EDUCATION REPORT.13.26The Minnesota Office of Higher Education and Minnesota Department of Education 13.27must report to the committees of the legislature with jurisdiction over teacher education on 13.28best practices in innovative teacher education programs and teacher education research. 13.29The report must include, at a minimum, information on:13.30(1) teacher education preparation program curricula that will prepare prospective 13.31teachers to teach an increasingly diverse student population;13.32(2) opportunities for mid-career professionals employed in professions in which 13.33there is a shortage of teachers to pursue a teaching career; and13.34(3) enhancing the ability of teachers to use technology in the classroom.13.35The report must be submitted by June August 15, 2010.14.1    Sec. 27. Laws 2010, chapter 215, article 2, section 4, subdivision 3, is amended to read:

14.2Subd. 3.Operations and Maintenance-0-(9,967,000)

14.3For fiscal years 2012 and 2013, the base for 14.4operations and maintenance is $592,792,00014.5$580,802,000 each year.14.6    Sec. 28. Laws 2010, chapter 215, article 2, section 6, the effective date, is amended to 14.7read:14.8EFFECTIVE DATE.This section is effective the day following final enactment14.9for grants made on and after July 1, 2010.14.10    Sec. 29. STUDY OF CERTIFICATES AND DIPLOMAS; EDUCATIONAL 14.11CAREER PATH.14.12    The Board of Trustees of Minnesota State Colleges and Universities, in conjunction 14.13with the Minnesota Chamber of Commerce, representatives of industry groups, and labor 14.14unions, shall study the program requirements for certificates and diplomas awarded by 14.15the Minnesota State Colleges and Universities to determine the feasibility of designing 14.16technical education programs to allow students to have more opportunities to earn 14.17credentials with lower credit requirements that could be combined into higher level 14.18certificates or diplomas. The study must consult with business and industry representatives 14.19as well as labor unions and faculty on the types of credentials that would be recognized for 14.20employment purposes. In addition, the study must address the feasibility of increasing 14.21the capacity to accumulate credentials in related programs into an educational career path 14.22leading to a diploma or degree. The study must also address the need for workers in 14.23other fields and take into account other job training programs provided by labor unions 14.24and business.14.25    The board must report the study findings to the committees of the legislature with 14.26responsibility for postsecondary education finance by February 15, 2011.14.27    Sec. 30. STREAMLINED MINNESOTA STATE COLLEGES AND 14.28UNIVERSITIES SYSTEM OFFICE.14.29    Notwithstanding any law or policy to the contrary, the Board of Trustees of 14.30Minnesota State Colleges and Universities shall streamline services provided through 14.31the system's central service office to reduce expenditures, better target the use of state 14.32resources, and provide services at the most appropriate and efficient level so as not 15.1to duplicate any services provided at the institutional level. These actions must be 15.2implemented so as to achieve budgetary savings and efficiencies in delivery of services 15.3and the accomplishment of the academic mission. The board must revise any board 15.4policies in a way that is consistent with the requirements of this section.15.5    Sec. 31. POSTRETIREMENT HEALTH INSURANCE PREMIUM 15.6REIMBURSEMENT.15.7    The Minnesota State Colleges and Universities system shall waive premium 15.8reimbursement payments including any late payment charges, fees, penalties, or interest 15.9payments imposed on overdue health insurance premium reimbursements owed by a 15.10college retiree to the college under a contractual or collective bargaining agreement 15.11providing for postretirement health insurance benefits arising from employment under 15.12a contract or collective bargaining agreement with a school district or technical college 15.13prior to July 1, 1995, and who became an employee of Minnesota State Colleges and 15.14Universities on July 1, 1995. This section applies only if the college has failed to bill 15.15the retiree for the premium reimbursement payments as required under the applicable 15.16collective bargaining or contractual agreement, or if not otherwise established, within 90 15.17days following the date on which the premium was due.15.18EFFECTIVE DATE.This section is effective the day following final enactment.15.19    Sec. 32. SURGICAL TECHNOLOGISTS PILOT PROJECT.15.20    Subdivision 1.Surgical technologists; training and employment pilot project.15.21The Board of Trustees of Minnesota State Colleges and Universities shall establish a pilot 15.22project to develop partnerships and training and employment opportunities for surgical 15.23technologists. The pilot project must develop partnerships between a health care facility 15.24located within 25 miles of an accredited surgical technologist program offered by a 15.25Minnesota State Colleges and Universities institution and the institution. The partnerships 15.26must promote the employment and retention of surgical technologists, working in 15.27accordance with law, regulations, including Code of Federal Regulations, title 42, 15.28section 482.51, and contract provisions, who have successfully completed an accredited 15.29educational program and who hold and maintain a certified surgical technology credential 15.30from a nationally recognized and accredited surgical technologist certifying body.15.31This subdivision expires June 30, 2014.15.32    Subd. 2.Report.The board of trustees shall report on the pilot project under this 15.33section to the appropriate legislative chairs by January 1, 2013, with recommendations 16.1to enhance surgical technologist training and to ensure an adequate supply of surgical 16.2technologist graduates to meet the needs of facilities.16.3    Sec. 33. PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF 16.4MINNESOTA STATE COLLEGES AND UNIVERSITIES.16.5    Subdivision 1.Establishment.To increase the distribution of potential economic 16.6benefit of deposits of reserve funds of the institutions of Minnesota State Colleges and 16.7Universities, a pilot project is established to transfer certain reserve deposits of selected 16.8institutions from the state treasury to a community financial institution. Notwithstanding 16.9Minnesota Statutes, section 16A.27, by January 2, 2011, the commissioner of management 16.10and budget shall transfer the specified amount of board-required reserve funds of colleges 16.11and universities selected by the board of trustees under subdivision 2, to a community 16.12financial institution designated for each of the participating colleges and universities.16.13    Subd. 2.Participating colleges and universities.By August 15, 2010, colleges 16.14and universities may apply to the Board of Trustees of Minnesota State Colleges and 16.15Universities for participation in the pilot project. Each applicant must designate one 16.16or more community financial institutions for the deposit of a specified amount of 16.17board-required reserves, with the terms of the deposit for each designated community 16.18financial institution. The designated community financial institution must be located in the 16.19geographic area of a participating campus. From the applicants, the board shall select up to 16.20eight postsecondary institutions to participate in the local deposit pilot project. In making 16.21its selection, the board must consider the size of the institution's reserves and the terms 16.22offered by the designated community financial institutions. Unless there are not sufficient 16.23applicants, two-year and four-year institutions must be selected to participate in the pilot 16.24project and the majority of the selected institutions must be located in greater Minnesota.16.25    By December 1, 2010, the board must notify the commissioner of management and 16.26budget of the participating colleges and universities, the deposit amount for each institution 16.27and the associated community financial institutions. The pilot project shall provide for the 16.28transfer of deposits for no more than the period January 2, 2011, to December 31, 2012.16.29    Subd. 3.Community financial institution.As used in this section, "community 16.30financial institution" means a federally insured bank or credit union, chartered as a bank 16.31or credit union by the state of Minnesota or the United States, that is headquartered in 16.32Minnesota and that has no more than $2,500,000,000 in assets.17.1    Subd. 4.Evaluation and report.The commissioner of management and budget and 17.2the board of trustees shall independently evaluate the effectiveness or harm of the local 17.3deposit pilot project in increasing the use of community financial institutions and providing 17.4wider distribution of the economic benefit of the deposit of postsecondary reserves. Each 17.5evaluation must include the participating colleges, universities, and community financial 17.6institutions. The commissioner of management and budget and the board shall report on 17.7the pilot project evaluation to the appropriate committees of the legislature by February 1, 17.82013, with recommendations on the future implementation of the pilot project.17.9    Sec. 34. NANOTECHNOLOGY REPORT.17.10By February 1, 2011, the Board of Regents of the University of Minnesota are 17.11requested to, and the Board of Trustees of the Minnesota State Colleges and Universities 17.12shall, study nanotechnology research and education and report to the committees of the 17.13legislature with responsibility for higher education, economic development, environment, 17.14and public health on the ethical issues and the principles for nanotechnology research and 17.15development and education they utilize in their institutions and nanotechnology initiatives. 17.16The report must assess ways they ensure that nanotechnology is used responsibly through 17.17standards and guidelines that protect public health and the environment and provide for 17.18occupational health and safety.17.19    Sec. 35. FEDERAL HEALTH CARE REFORM.17.20The regents of the University of Minnesota are requested to direct the area health 17.21education centers to conduct public education related to the provisions of federal health 17.22care reform legislation, as enacted under the Patient Protection and Affordable Care Act, 17.23Public Law 111-148, and the Health Care and Education Reconciliation Act, Public Law 17.24111-152, and the potential impacts of federal health care reform to Minnesota citizens, 17.25employers, and health care providers.17.26    Sec. 36. MONITORING OF FEDERAL POSTSECONDARY TEXTBOOK 17.27DISCLOSURE LAW.17.28The Office of Higher Education shall monitor the implementation of the Higher 17.29Education Opportunity Act, Public Law 110-315, as it relates to disclosure of textbook 17.30pricing and other information to students. The monitoring shall be done in a manner that 17.31the office determines will allow it to determine whether students are receiving information 17.32required or encouraged to be disclosed to students under the act. The office shall report the 17.33results of its monitoring along with any recommendations for legislation to the chairs and 18.1ranking minority members of the legislative committees with primary jurisdiction over 18.2higher education finance and policy by February 1, 2011.18.3EFFECTIVE DATE.This section is effective the day following final enactment.18.4    Sec. 37. REDUCTION IN GRANTS FOR INSUFFICIENT APPROPRIATIONS.18.5In fiscal year 2011, the dollar amount reductions in state grants under Minnesota 18.6Statutes, section 136A.121, subdivision 7, may be approximately equal for the surcharge 18.7on family responsibility and the percentage increase on the assigned student responsibility. 18.8The Minnesota Office of Higher Education may reserve up to five percent of the projected 18.9demand for grant awards in fiscal year 2011 to manage uncertainty of demand based on 18.10enrollment or income changes of applicants. After reduced grant awards are made for 18.11fiscal year 2011, the office must distribute any remaining funds to increase the living and 18.12miscellaneous expenses allowance consistent with the office's distribution of surplus 18.13appropriations under Minnesota Statutes, section 136A.121, subdivision 7a; provided 18.14that if the office determines that the remaining funds are less than $1,500,000 the office 18.15may, in lieu of increasing the allowance, transfer all of the remaining funds to the state 18.16work-study program.18.17    Sec. 38.CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND 18.18UNIVERSITIES.18.19    (a) The Board of Trustees of the Minnesota State Colleges and Universities must 18.20develop and implement a plan to improve credit transfers within the system. At a 18.21minimum, the board must:18.22    (1) enhance information on transferring and tracking credits;18.23    (2) improve training for all staff involved with credit transfer;18.24    (3) identify discrepancies in transferring and accepting credits by institutions within 18.25the system and devise methods to improve the uniform treatment of credit transfers; and18.26(4) require, to the extent feasible, institutional rather than student obligation to 18.27provide prompt required documentation for course equivalency determinations.18.28    (b) The board may convene working groups of affected faculty, staff, students, and 18.29administrators representing institutions and academic and technical disciplines in the 18.30system to work on issues and barriers to credit transfer.18.31(c) The board must provide systemwide transfer information on the Internet that is 18.32easily accessible and maintained in a current and accurate status. Each system college 18.33and university shall post information necessary to determine the transferability of course 18.34credits on their institutional Web sites. The working groups must develop a template to be 19.1used by the colleges and universities to ensure consistency in the information available to 19.2students. The links to each institution's informational Web site shall be submitted to the 19.3office of the chancellor for publication on the MinnesotaTransfer.org Web site.19.4    (d) The board shall report on February 15, 2011, and annually thereafter through 19.52014, on its activities to achieve the credit transfer goals in this section and the results 19.6of those activities. The report shall be made to the chairs and ranking minority members 19.7of the legislative committees with primary jurisdiction over higher education policy and 19.8finance. The goals of this section should be fully achieved as soon as possible, but no later 19.9than the start of the 2015-2016 academic year."19.10Delete the title and insert:19.11"A bill for an act19.12relating to higher education; authorizing data matching; modifying institution 19.13eligibility; establishing award procedures; establishing scholarship priorities; 19.14establishing powers and duties; providing for school closures; modifying 19.15security requirements; regulating the use of certain revenues; providing for 19.16refunds; modifying licensure provisions related to certain schools; providing 19.17for certain bond transfers and allocations; reducing appropriation base for 19.18MNSCU operations and maintenance; requiring MNSCU to streamline services; 19.19allowing certain postretirement health insurance premium reimbursement; 19.20allowing reserve of grant funds; establishing pilot projects; defining terms; 19.21making technical corrections; requiring studies, reports, monitoring, and 19.22public education; governing reductions in grants; providing for credit transfer 19.23improvements;amending Minnesota Statutes 2008, sections 135A.15, 19.24subdivision 1; 135A.155; 135A.51, subdivision 2; 136A.101, subdivision 19.2510; 136A.126, subdivision 1, by adding a subdivision; 136A.15, subdivision 19.266; 136A.16, subdivision 14; 136A.62, subdivision 3; 136A.645; 136A.646; 19.27136F.581, by adding a subdivision; 141.25, subdivisions 7, 13, by adding a 19.28subdivision; 141.251, subdivision 2; 141.28, subdivision 2; 474A.04, subdivision 19.296; 474A.091, subdivision 3; Minnesota Statutes 2009 Supplement, sections 19.30136A.01, subdivision 2; 136A.101, subdivision 4; 136A.127, subdivisions 2, 4; 19.31Laws 2009, chapter 95, article 2, section 40; Laws 2010, chapter 215, article 2, 19.32sections 4, subdivision 3; 6; proposing coding for new law in Minnesota Statutes, 19.33chapter 136A."

20.1We request the adoption of this report and repassage of the bill.20.2Senate Conferees:20.3
                     							.....
                     						
                     							.....
                     						20.4Sandra PappasClaire Robling20.5
                     							.....
                     						20.6Ron Latz20.7House Conferees:20.8
                     							.....
                     						
                     							.....
                     						20.9Tom RukavinaRoger Reinert20.10
                     							.....
                     						20.11Carol McFarlane