1.1A bill for an act1.2relating to higher education; modifying grant eligibility; modifying loan 1.3limits and terms; increasing private institution fees; eliminating the high 1.4school-to-college developmental transition program; defining terms; transferring 1.5funds; modifying and reducing appropriations;amending Minnesota Statutes 1.62008, sections 136A.127, by adding subdivisions; 136A.1701, subdivisions 4, 7; 1.7136A.69, subdivisions 1, 3, 4; 141.255; Minnesota Statutes 2009 Supplement, 1.8sections 136A.121, subdivision 9; 136A.127, subdivision 9; Laws 2009, chapter 1.995, article 1, sections 3, subdivisions 6, 12; 4, subdivision 4, as amended; 1.105, subdivision 2; repealing Minnesota Statutes 2008, sections 136A.1701, 1.11subdivision 5; 136A.69, subdivision 2; 141.255, subdivision 3; Minnesota 1.12Statutes 2009 Supplement, sections 135A.61; 136A.121, subdivision 9b.1.13BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.14ARTICLE 11.15HIGHER EDUCATION APPROPRIATIONS

1.16Section 1.  SUMMARY OF APPROPRIATIONS.

1.17    Subdivision 1.Summary Total.The amounts shown in this section summarize 1.18direct appropriations, by fund, made in this article.

1.1920102011Total1.20General$(454,000)$(52,829,000)$(53,283,000)1.21Health Care Access-0--0--0-1.22Federal-0--0--0-1.231.24State Government Special Revenue-0--0--0-1.25Total$(454,000)$(52,829,000)$(53,283,000)

1.26    Subd. 2.Summary by Agency - All Funds.The amounts shown in this subdivision 1.27summarize direct appropriations, by agency, made in this article.

2.120102011Total2.22.3Minnesota Office of Higher Education$(454,000)$(6,242,000)$(6,696,000)2.42.52.6Board of Trustees of the Minnesota State Colleges and Universities-0-(10,467,000)(10,467,000)2.72.8Board of Regents of the University of Minnesota-0-(36,120,000)(36,120,000)2.9Total$(454,000)$(52,829,000)$(53,283,000)

2.10Sec. 2. APPROPRIATIONS.

2.11The sums shown in the columns marked "Appropriations" are added to or, if shown 2.12in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to 2.13the agencies and for the purposes specified in this article. The appropriations are from the 2.14general fund, or another named fund, and are available for the fiscal years indicated for 2.15each purpose. The figures "2010" and "2011" used in this article mean that the addition 2.16to or subtraction from the appropriation listed under them is available for the fiscal year 2.17ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and 2.18reductions to appropriations for the fiscal year ending June 30, 2010, are effective the 2.19day following final enactment.

2.20APPROPRIATIONS2.21Available for the Year2.22Ending June 302.2320102011

2.24Sec. 3. OFFICE OF HIGHER EDUCATION

2.25Subdivision 1.Total Appropriation$(454,000)$(6,242,000)

2.26The amounts that may be spent for each 2.27purpose are specified in the following 2.28subdivisions.

2.29Subd. 2.State Grants(233,000)(2,063,000)

2.30Subd. 3.Child Care Grants-0-(500,000)

2.31Subd. 4.State Work-Study-0-(2,830,000)

2.32For fiscal year 2011, the Office of Higher 2.33Education shall transfer funds from the 2.34work-study program to the reciprocity 2.35program in the amount necessary to make 3.1payments under reciprocity agreements. 3.2The base appropriation for the work-study 3.3program for fiscal years 2012 and 2013 are 3.4$12,129,000 in each year.

3.5Subd. 5.Indian Scholarships-0-(120,000)

3.63.7Subd. 6.Intervention for College Attendance Program Grants(22,000)(43,000)

3.8Subd. 7.Midwest Higher Education Compact(3,000)(3,000)

3.93.10Subd. 8.Technical and Community College Emergency Grants-0-(150,000)

3.11Subd. 9.United Family Medicine Residency(13,000)(28,000)

3.12Subd. 10.Minnesota College Savings Plan(22,000)(50,000)

3.13Subd. 11.MnLink Gateway and Minitex(95,000)(362,000)

3.14Subd. 12.Other Programs(6,000)(12,000)

3.15The reduction in the student and parent 3.16information program is $6,000 in fiscal year 3.172010 and $3,000 in fiscal year 2011. The 3.18reduction in get ready program funds is 3.19$6,000 in fiscal year 2011. The reduction in 3.20funds for the Minnesota Minority Education 3.21Partnership is $3,000 in fiscal year 2011.

3.22Subd. 13.Agency Administration(60,000)(81,000)

3.233.243.25Sec. 4. BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES

3.26Subdivision 1.Total Appropriation$-0-$(10,467,000)

3.27The amounts that must be reduced or 3.28added for each purpose are specified in the 3.29following subdivisions.

3.303.31Subd. 2.Central Office and Shared Services Unit-0-(742,000)

3.32Subd. 3.Operations and Maintenance-0-(9,642,000)

3.33Subd. 4.Learning Network of Minnesota-0-(82,000)

4.14.2Sec. 5. BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA

4.3Subdivision 1.Total Appropriation$-0-$(36,120,000)

4.4The amounts that must be reduced or 4.5added for each purpose are specified in the 4.6following subdivisions.

4.7Subd. 2.Operations and Maintenance-0-(32,223,000)

4.8Subd. 3.Special Appropriations

4.9(a) Agriculture and Extension Service-0-(2,787,000)

4.10(b) Health Sciences-0-(281,000)

4.11$18,000 in fiscal year 2011 is a reduction to 4.12the appropriation to support up to 12 resident 4.13physicians in the St. Cloud Hospital family 4.14practice residency program.

4.15(c) Institute of Technology-0-(74,000)

4.16(d) System Special-0-(328,000)

4.174.18(e) University of Minnesota and Mayo Foundation Partnership-0-(427,000)

4.19    Sec. 6. Laws 2009, chapter 95, article 1, section 3, subdivision 6, is amended to read:

4.20Subd. 6.Achieve Scholarship Program4,350,0004,350,000

4.21For scholarships under Minnesota Statutes, 4.22section 
         136A.127,  the office shall transfer 4.23the appropriation for fiscal year 2011 to the 4.24appropriation for state grants. 4.25    Sec. 7. Laws 2009, chapter 95, article 1, section 3, subdivision 12, is amended to read:

4.264.27Subd. 12.Technical and Community College Emergency Grants150,000150,000

4.28For transfer to the financial aid offices 4.29at each of the colleges of the Minnesota 4.30State Colleges and Universities to provide 4.31emergency aid grants to technical and 5.1community college students who are 5.2experiencing extraordinary economic 5.3circumstances that may result in the students 5.4dropping out of school without completing 5.5the term or their program. This is a onetime 5.6appropriation.5.7    Sec. 8. Laws 2009, chapter 95, article 1, section 4, subdivision 4, as amended by Laws 5.82009, chapter 177, section 10, subdivision 4, is amended to read:

5.9Subd. 4.Operations and Maintenance562,041,000613,833,000

5.10(a) It is the intention of the legislature to 5.11increase the amount of funding distributed 5.12to colleges and universities through the 5.13allocation model to provide direct support of 5.14instruction and related functions necessary 5.15to protect the core mission of educating 5.16students.5.17(b) The Board of Trustees shall submit 5.18expenditure reduction plans by March 15, 5.192010, to the committees of the legislature 5.20with responsibility for higher education 5.21finance to achieve the 2012-2013 base 5.22established in this section at the central 5.23office and at each institution. The plan 5.24submitted by the board must be based on 5.25plans developed at each institution detailing 5.26reductions to achieve lower base allocations 5.27at that institution. Each plan must focus on 5.28protecting direct instruction.5.29(c) For the biennium ending June 30, 5.302011, expenditures under this subdivision 5.31must not exceed $40,000,000 for 5.32technology initiatives, including technology 5.33infrastructure improvements.6.1 (d) $1,000,000 each year is for the Northeast 6.2Minnesota Higher Education District and 6.3high schools in its area. Students from area 6.4high schools may also access the facilities 6.5and faculty of the Northeast Minnesota 6.6Higher Education District for state-of-the-art 6.7technical education opportunities, including 6.8MnSCU's 2+2 Pathways initiative.6.9(e) $225,000 each year is to enhance eFolio 6.10Minnesota and for a center to provide on-site 6.11and Internet-based support and technical 6.12assistance to users of the state's eFolio 6.13Minnesota system to promote workforce and 6.14economic development and to enable access 6.15to workforce information generated through 6.16the eFolio Minnesota system.6.17(f) For fiscal years 2012 and 2013 the base for 6.18operations and maintenance is $602,759,000 6.19each year.6.20    Sec. 9. Laws 2009, chapter 95, article 1, section 5, subdivision 2, is amended to read:

6.21Subd. 2.Operations and Maintenance550,345,000604,239,000

6.22(a) This appropriation includes funding for 6.23operation and maintenance of the system.6.24(b) The Board of Regents shall submit 6.25expenditure reduction plans by March 15, 6.262010, to the committees of the legislature 6.27with responsibility for higher education 6.28finance to achieve the 2012-2013 base 6.29established in this section. The plan must 6.30focus on protecting direct instruction.6.31(c) Appropriations under this subdivision 6.32may be used for a new scholarship under 6.33Minnesota Statutes, section 
         137.0225, to 7.1complement the University's Founders 7.2scholarship.7.3(d) This appropriation includes amounts for 7.4an Ojibwe Indian language program on the 7.5Duluth campus.7.6(e) This appropriation includes money for the 7.7Dakota language teacher training immersion 7.8program on the Twin Cities campus to 7.9prepare teachers to teach in Dakota language 7.10immersion programs. 7.11(f) This appropriation includes money for the 7.12Veterinary Diagnostic Laboratory to preserve 7.13accreditation.7.14(g) This appropriation includes money in 7.15fiscal year 2010 for a onetime grant to the 7.16Minnesota Wildlife Rehabilitation Center for 7.17their uncompensated expenses.7.18(h) For fiscal years 2012 and 2013, the 7.19base for operations and maintenance is 7.20$596,930,000 each year.7.21ARTICLE 27.22RELATED HIGHER EDUCATION PROVISIONS7.23    Section 1. Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9, 7.24is amended to read:7.25    Subd. 9. Awards. An undergraduate student who meets the office's requirements 7.26is eligible to apply for and receive a grant in any year of undergraduate study unless the 7.27student has obtained a baccalaureate degree or previously has been enrolled full time or 7.28the equivalent for nine eight semesters or the equivalent, excluding courses taken from a 7.29Minnesota school or postsecondary institution which is not participating in the state grant 7.30program and from which a student transferred no credit. A student who withdraws from 7.31enrollment for active military service, or for a major illness, while under the care of a 7.32medical professional, that substantially limits the student's ability to complete the term is 7.33entitled to an additional semester or the equivalent of grant eligibility. A student enrolled 8.1in a two-year program at a four-year institution is only eligible for the tuition and fee 8.2maximums established by law for two-year institutions.8.3    Sec. 2. Minnesota Statutes 2009 Supplement, section 136A.127, subdivision 9, is 8.4amended to read:8.5    Subd. 9. Scholarship awards. The amount of the scholarship is equal to the 8.6maximum assigned student responsibility for a four-year program, as defined in section 8.7136A.121, subdivision 5
         , minus the assigned family responsibility as defined in section 8.8136A.101, subdivision 5a
         , multiplied by 0.50. The minimum scholarship is $1,200 per 8.9academic year based on the institution's academic calendar and the student's continued 8.10eligibility and available appropriations. Awards are subject to student priority under 8.11subdivision 9d. The scholarship may be used to pay for qualifying expenses at eligible 8.12institutions. 8.13    Sec. 3. Minnesota Statutes 2008, section 136A.127, is amended by adding a 8.14subdivision to read:8.15    Subd. 9c.Insufficient appropriation.If the amount appropriated is determined by 8.16the office to be insufficient to make full awards to applicants under subdivision 9, awards 8.17may be reduced by one or more of the following:8.18(1) a percentage reduction in the maximum award;8.19(2) a dollar amount reduction in the minimum award; or8.20(3) adding a surcharge to the applicant's assigned family responsibility, as defined in 8.21section 136A.101, subdivision 5a.8.22    Sec. 4. Minnesota Statutes 2008, section 136A.127, is amended by adding a 8.23subdivision to read:8.24    Subd. 9d.Student priority.Achieve scholarship awards must be made to students 8.25with complete applications received as of August 31 of each respective fiscal year.8.26    Sec. 5. Minnesota Statutes 2008, section 136A.1701, subdivision 4, is amended to read:8.27    Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such 8.28terms and conditions as the office may prescribe. The Under the SELF IV program, the8.29principal amount of a loan to an undergraduate student for a single academic year shall 8.30not exceed $6,000 for grade levels 1 and 2 effective July 1, 2006, through June 30, 2007. 8.31Effective July 1, 2007, the principal amount of a loan for grade levels 1 and 2 shall not 8.32exceed $7,500. The principal amount of a loan for grade levels 3, 4, and 5 shall not exceed 9.1$7,500 effective July 1, 2006 $7,500 per grade level. The aggregate principal amount of 9.2all loans made under this section to an undergraduate student shall not exceed  $34,500 9.3through June 30, 2007, and $37,500 after June 30, 2007. The principal amount of a loan 9.4to a graduate student for a single academic year shall not exceed $9,000. The aggregate 9.5principal amount of all loans made under this section to a student as  an undergraduate 9.6and graduate student shall not exceed $52,500 through June 30, 2007, and $55,5009.7after June 30, 2007. The amount of the loan may not exceed the cost of attendance less 9.8all other financial aid, including PLUS loans or other similar parent loans borrowed on 9.9the student's behalf. The cumulative SELF loan debt must not exceed the borrowing 9.10maximums in paragraph (b).9.11(b) The cumulative undergraduate borrowing maximums for SELF IV loans are:9.12(1) effective July 1, 2006, through June 30, 2007:9.13(i) grade level 1, $6,000;9.14(ii) grade level 2, $12,000;9.15(iii) grade level 3, $19,500;9.16(iv) grade level 4, $27,000; and9.17(v) grade level 5, $34,500; and9.18(2) effective July 1, 2007:9.19(i) grade level 1, $7,500;9.20(ii)(2) grade level 2, $15,000;9.21(iii)(3) grade level 3, $22,500;9.22(iv)(4) grade level 4, $30,000; and9.23(v)(5) grade level 5, $37,500.9.24(c) The principal amount of a SELF V or subsequent phase loan to students enrolled 9.25in a bachelor's degree program, postbaccalaureate, or graduate program must not exceed 9.26$10,000 per grade level. For all other eligible students, the principal amount of the loan 9.27must not exceed $7,500 per grade level. The aggregate principal amount of all loans 9.28made under this section to a student as an undergraduate and graduate student must not 9.29exceed $70,000. The amount of the loan must not exceed the cost of attendance less 9.30all other financial aid, including PLUS loans or other similar parent loans borrowed on 9.31the student's behalf. The cumulative SELF loan debt must not exceed the borrowing 9.32maximums in paragraph (d).9.33(d)(1) The cumulative borrowing maximums for SELF V loans and subsequent 9.34phases for students enrolled in a bachelor's degree program or postbaccalaureate program 9.35are:9.36(i) grade level 1, $10,000;10.1(ii) grade level 2, $20,000;10.2(iii) grade level 3, $30,000;10.3(iv) grade level 4, $40,000; and10.4(v) grade level 5, $50,000.10.5(2) For graduate level students, the borrowing limit is $10,000 per nine-month 10.6academic year, with a cumulative maximum for all SELF debt of $70,000.10.7(3) For all other eligible students, the cumulative borrowing maximums for SELF V 10.8loans and subsequent phases are:10.9(i) grade level 1, $7,500;10.10(ii) grade level 2, $15,000;10.11(iii) grade level 3, $22,500;10.12(iv) grade level 4, $30,000; and10.13(v) grade level 5, $37,500.10.14    Sec. 6. Minnesota Statutes 2008, section 136A.1701, subdivision 7, is amended to read:10.15    Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures 10.16for loans made under this section, but in no event shall the period of permitted repayment 10.17for SELF II or SELF III loans exceed ten years from the eligible student's termination of 10.18the student's postsecondary academic or vocational program, or 15 years from the date of 10.19the student's first loan under this section, whichever is less.10.20(b) For SELF IV loans from phases after SELF III, eligible students with aggregate 10.21principal loan balances from all SELF phases that are less than $18,750 shall have a 10.22repayment period not exceeding ten years from the eligible student's graduation or 10.23termination date. For SELF IV loans from phases after SELF III, eligible students with 10.24aggregate principal loan balances from all SELF phases of $18,750 or greater shall have 10.25a repayment period not exceeding 15 years from the eligible student's graduation or 10.26termination date. For SELF IV loans from phases after SELF III, the loans shall enter 10.27repayment no later than seven years after the first disbursement date on the loan.10.28(c) For SELF loans from phases after SELF IV, eligible students with aggregate 10.29principal loan balances from all SELF phases that are:10.30(1) less than $20,000, must have a repayment period not exceeding ten years from 10.31the eligible student's graduation or termination date;10.32(2) $20,000 up to $40,000, must have a repayment period not exceeding 15 years 10.33from the eligible student's graduation or termination date; and10.34(3) $40,000 or greater, must have a repayment period not exceeding 20 years 10.35from the eligible student's graduation or termination date. For SELF loans from phases 11.1after SELF IV, the loans must enter repayment no later than nine years after the first 11.2disbursement date of the loan.11.3    Sec. 7. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read:11.4    Subdivision 1.  Registration fees.(a) The office shall collect reasonable registration 11.5fees that are sufficient to recover, but do not exceed, its costs of administering the 11.6registration program. The office shall charge $1,100 for initial registration fees and $950 11.7for annual renewal fees. the fees listed in paragraphs (b) and (c) for new registrations.11.8(b) A new school offering no more than one degree at each level during its first year 11.9must pay registration fees for each applicable level in the following amounts:

11.10associate degree$2,00011.11baccalaureate degree$2,50011.12master's degree$3,00011.13doctorate degree$3,500

11.14(c) A new school that will offer more than one degree per level during its first 11.15year must pay registration fees in an amount equal to the fee for the first degree at each 11.16degree level under paragraph (b), plus fees for each additional nondegree program or 11.17degree as follows:

11.18nondegree program$25011.19additional associate degree$25011.20additional baccalaureate degree$50011.21additional master's degree$75011.22additional doctorate degree$1,000

11.23(d) The annual renewal registration fee is $1,200.11.24    Sec. 8. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read:11.25    Subd. 3.  Degree or nondegree program addition fee. The office processing fee11.26fees for adding a degree or nondegree program that represents a significant departure in 11.27the objectives, content, or method of delivery of degree or nondegree programs that are 11.28currently offered by the school is $500 per degree or nondegree program are as follows:. 

11.29nondegree program that is part of existing degree-0-11.30nondegree program that is not a part of an existing degree$250 each11.3111.32majors, specializations, emphasis areas, concentrations, and other similar areas of emphasis$250 each11.33associate degrees$500 each11.34baccalaureate degrees$500 each11.35master's degrees$750 each11.36doctorate degrees$2,000 each

12.1    Sec. 9. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read:12.2    Subd. 4.  Visit or consulting fee. If the office determines that a fact-finding visit 12.3or outside consultant is necessary to review or evaluate any new or revised degree or 12.4nondegree program, the office shall be reimbursed for the expenses incurred related to the 12.5review as follows: 12.6    (1) $300 $400 for the team base fee or for a paper review conducted by a consultant 12.7if the office determines that a fact-finding visit is not required; 12.8    (2) $300 for each day or part thereof on site per team member; and 12.9    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 12.10by team members. 12.11    Sec. 10. Minnesota Statutes 2008, section 141.255, is amended to read:12.12141.255 FEES.12.13    Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure 12.14application is:12.15(1) $1,500$2,500 for a school that will offer no more than one program during 12.16its first year of operation;12.17(2) $750 for a school licensed exclusively due to the use of the term "college," 12.18"university," "academy," or "institute" in their name, or licensed exclusively in order to 12.19participate in state grant or SELF loan financial aid programs; and12.20(2) $2,000 for a school that will offer two or more nondegree level programs12.21(3) $2,500, plus $500 for each additional program offered by the school, for a school 12.22 during its first year of operation; and.12.23(3) $2,500 for a school that will offer two or more degree level programs during 12.24its first year of operation.12.25    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 12.26renewal licensure application is:12.27    (1) for a category A school, as determined by the office, the fee is $865 if the school 12.28offers one program or $1,150 if the school offers two or more programs; and12.29    (2) for a category B or C school, as determined by the office, the fee is $430 if the 12.30school offers one program or $575 if the school offers two or more programs.12.31(1) for a school that offers one program, the license renewal fee is $1,150;12.32(2) for a school that offers more than one program, the license renewal fee is 12.33$1,150, plus $200 for each additional program with a maximum renewal licensing fee 12.34of $2,000; and13.1(3) schools licensed exclusively due to the use of the term "college," "university," 13.2"academy," or "institute" in their name or licensed exclusively in order to participate in 13.3state grant or SELF loan financial aid programs shall pay a renewal fee of $750.13.4    (b) If a license renewal application is not received by the office by the close of 13.5business at least 60 days before the expiration of the current license, a late fee of $100 13.6per business day, not to exceed $3,000, shall be assessed.13.7    Subd. 3.Degree level addition fee.The office processing fee for adding a degree 13.8level to an existing program is $2,000 per program.13.9    Subd. 4. Program addition fee. The office processing fee for adding a program 13.10that represents a significant departure in the objectives, content, or method of delivery of 13.11programs to those that are currently offered by the school is $500 per program.13.12    Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit 13.13or outside consultant is necessary to review or evaluate any new or revised program, the 13.14office shall be reimbursed for the expenses incurred related to the review as follows:13.15(1) $300 $400 for the team base fee or for a paper review conducted by a consultant 13.16if the office determines that a fact-finding visit is not required;13.17(2) $300 for each day or part thereof on site per team member; and13.18(3) the actual cost of customary meals, lodging, and related travel expenses incurred 13.19by team members.13.20    Subd. 6. Modification fee. The fee for modification of any existing program is 13.21$100 and is due if there is:13.22(1) an increase or decrease of 25 percent or more, from the original date of program 13.23approval, in clock hours, credit hours, or calendar length of an existing program;13.24(2) a change in academic measurement from clock hours to credit hours or vice 13.25versa; or13.26(3) an addition or alteration of courses that represent a 25 percent change or more in 13.27the objectives, content, or methods of delivery.13.28    Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid 13.29annually.13.30    Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations 13.31must pay:13.32(1) $250 per location, for locations two to five locations; and13.33(2) an additional $50 $100 for each location over five.13.34    Subd. 9. Student transcript fee. The fee for a student transcript requested from 13.35a closed school whose records are held by the office is $10 $15, with a maximum of 13.36five transcripts per request.14.1    Subd. 10. Public office documents; copies. The office shall establish rates for 14.2copies of any public office document shall be 50 cents per page.14.3    Sec. 11.  REPEALER.14.4Minnesota Statutes 2008, sections 136A.1701, subdivision 5; 136A.69, subdivision 14.52; and 141.255, subdivision 3, are repealed.14.6Minnesota Statutes 2009 Supplement, sections 135A.61; and 136A.121, subdivision 14.79b, are repealed.