HF 3448

1st Committee Engrossment - 86th Legislature (2009 - 2010)

Posted on 03/19/2013 07:29 p.m.

1.1A bill for an act 1.2relating to higher education; authorizing data matching; modifying institution 1.3eligibility; establishing award procedures; establishing a grant program; 1.4modifying security requirements; requiring certain notice; establishing a central 1.5system office; modifying bonding limits; authorizing bonding authority transfer; 1.6providing for certain refunds; requiring a study; governing credit transfers; 1.7requiring system office streamlining; providing postretirement premium 1.8reimbursement; establishing a pilot project; making technical corrections; 1.9defining and clarifying terms; governing appropriation reductions;amending 1.10Minnesota Statutes 2008, sections 135A.15, subdivision 1; 135A.155; 135A.51, 1.11subdivision 2; 136A.101, subdivision 10; 136A.121, subdivision 6; 136A.126, 1.12by adding a subdivision; 136A.15, subdivision 6; 136A.16, subdivision 14; 1.13136A.62, subdivision 3; 136A.645; 136A.646; 141.25, subdivisions 7, 13, by 1.14adding a subdivision; 141.251, subdivision 2; 141.28, subdivision 2; 474A.04, 1.15subdivision 6; 474A.091, subdivision 3; Minnesota Statutes 2009 Supplement, 1.16sections 136A.01, subdivision 2; 136A.101, subdivision 4; 136F.98, subdivision 1.171; Laws 2010, chapter 215, article 2, sections 4, subdivision 3; 6; proposing 1.18coding for new law in Minnesota Statutes, chapters 136A; 136F; repealing 1.19Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9b. 1.20BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.21    Section 1. Minnesota Statutes 2008, section 135A.15, subdivision 1, is amended to 1.22read: 1.23    Subdivision 1. Policy required. The Board of Trustees of the Minnesota State 1.24Colleges and Universities shall, and the University of Minnesota is requested to, adopt 1.25a clear, understandable written policy on sexual harassment and sexual violence that 1.26informs victims of their rights under the crime victims bill of rights, including the right to 1.27assistance from the Crime Victims Reparations Board and the commissioner of public 1.28safety. The policy must apply to students and employees and must provide information 1.29about their rights and duties. The policy must apply to criminal incidents occurring on 1.30property owned by the postsecondary system or institution in which the victim is a 2.1student or employee of that system or institution. It must include procedures for reporting 2.2incidents of sexual harassment or sexual violence and for disciplinary actions against 2.3violators. During student registration, each technical college, community college, or state 2.4university shall, and the University of Minnesota is requested to, provide each student with 2.5information regarding its policy. A copy of the policy also shall be posted at appropriate 2.6locations on campus at all times. Each private postsecondary institution that is an eligible 2.7institution as defined in section 136A.101, subdivision 4 new text begin 136A.155 new text end , must adopt a policy 2.8that meets the requirements of this section. 2.9    Sec. 2. Minnesota Statutes 2008, section 135A.155, is amended to read: 2.10135A.155 HAZING POLICY. 2.11The board of trustees of the Minnesota State Colleges and Universities shall, and 2.12the University of Minnesota is requested to, adopt a clear, understandable written policy 2.13on student conduct, including hazing. The policy must include procedures for reporting 2.14incidents of inappropriate hazing and for disciplinary actions against individual violators 2.15and organizations. The policy shall be made available to students by appropriate means as 2.16determined by each institution, which may include publication in a student handbook or 2.17other institutional publication, or posting by electronic display on the Internet, and shall 2.18be posted at appropriate locations on campus. A private postsecondary institution that 2.19is an eligible institution as defined in section 136A.101, subdivision 4 new text begin 136A.155 new text end , must 2.20adopt a policy that meets the requirements of this section. 2.21    Sec. 3. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read: 2.22    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 new text begin 66 new text end 2.23years of age before the beginning of any term, semester or quarter, in which a course of 2.24study is pursued, or a person receiving a railroad retirement annuity who has reached 60 2.25years of age before the beginning of the term. 2.26    Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is 2.27amended to read: 2.28    Subd. 2. Responsibilities. new text begin (a) new text end The Minnesota Office of Higher Education is 2.29responsible for: 2.30    (1) necessary state level administration of financial aid programs, including 2.31accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 2.32financial aid programs to the governor and the legislature; 3.1    (2) approval, registration, licensing, and financial aid eligibility of private collegiate 3.2and career schools, under sections 136A.61 to 136A.71 and chapter 141; 3.3    (3) negotiating and administering reciprocity agreements; 3.4    (4) publishing and distributing financial aid information and materials, and other 3.5information and materials under section 136A.87, to students and parents; 3.6    (5) collecting and maintaining student enrollment and financial aid data and 3.7reporting data on students and postsecondary institutions to develop and implement a 3.8process to measure and report on the effectiveness of postsecondary institutions; 3.9    (6) administering the federal programs that affect students and institutions on a 3.10statewide basis; and 3.11    (7) prescribing policies, procedures, and rules under chapter 14 necessary to 3.12administer the programs under its supervision. 3.13     new text begin (b) The office is authorized to match individual student data from the student record new text end 3.14 new text begin enrollment database with individual student financial aid data collected and maintained new text end 3.15 new text begin by the office in order to audit or evaluate federal or state supported education programs new text end 3.16 new text begin as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal new text end 3.17 new text begin Regulations, title 34, section 99.35. The office may match data from the following new text end 3.18 new text begin financial aid program databases with data from the student record enrollment database: new text end 3.19 new text begin tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary new text end 3.20 new text begin child care grant; the American Indian Scholarship; and the achieve scholarship. The office new text end 3.21 new text begin shall conduct the study in a manner that does not permit personal identification of parents new text end 3.22 new text begin or students by individuals other than representatives of the office. new text end 3.23    Sec. 5. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is 3.24amended to read: 3.25    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 3.26educational institution located in this state or in a state with which the office has entered 3.27into a higher education reciprocity agreement on state student aid programs that (1) is 3.28operated by this state or the Board of Regents of the University of Minnesota, or (2) 3.29is operated privately and, as determined by the office, meets all of the following: (i) 3.30maintains academic standards substantially equivalent to those of comparable institutions 3.31operated in this state; (ii) is licensed or registered as a postsecondary institution by the 3.32office or another state agency; and (iii) by July 1, 2013, is participating in the federal 3.33Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text begin an new text end 3.34 new text begin institution that meets the eligibility requirements under section 136A.103 new text end . 4.1    Sec. 6. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read: 4.2    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress" 4.3means that: new text begin satisfactory academic progress as defined under Code of Federal Regulations, new text end 4.4 new text begin title 34, sections 668.16(e), 668.32(f), and 668.34. new text end 4.5    (1) by the end of a student's second academic year of attendance at an institution, the 4.6student has at least a cumulative grade point average of C or its equivalent, or academic 4.7standing consistent with the institution's graduation requirements; and 4.8    (2) by the end of the first term of the third and fourth academic year of attendance, 4.9the student has a cumulative grade point average of at least a C or its equivalent. 4.10    Sec. 7. new text begin [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS. new text end 4.11     new text begin (a) A postsecondary institution is eligible for state student aid under chapter 136A new text end 4.12 new text begin and sections 197.791 and 299A.45, if the institution is located in this state or in a state new text end 4.13 new text begin with which the office has entered into a higher education reciprocity agreement on state new text end 4.14 new text begin student aid programs that: new text end 4.15     new text begin (1) is operated by this state or the Board of Regents of the University of Minnesota; new text end 4.16 new text begin or new text end 4.17     new text begin (2) is operated privately and, as determined by the office, meets the requirements of new text end 4.18 new text begin paragraph (b). new text end 4.19     new text begin (b) A private institution must: new text end 4.20     new text begin (1) maintain academic standards substantially equivalent to those of comparable new text end 4.21 new text begin institutions operated in this state; new text end 4.22     new text begin (2) be licensed or registered as a postsecondary institution by the office; and new text end 4.23     new text begin (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of new text end 4.24 new text begin the Higher Education Act of 1965, as amended; or new text end 4.25     new text begin (ii) if an institution was participating in state student aid programs as of June 30, new text end 4.26 new text begin 2010, and the institution did not participate in the federal Pell Grant program by June 30, new text end 4.27 new text begin 2010, the institution must require every student who enrolls to sign a disclosure form, new text end 4.28 new text begin provided by the office, stating that the institution is not participating in the federal Pell new text end 4.29 new text begin Grant program. new text end 4.30     new text begin (c) An institution that offers only graduate-level degrees or graduate-level nondegree new text end 4.31 new text begin programs, or that offers only degrees or programs that do not meet the required minimum new text end 4.32 new text begin program length to participate in the federal Pell Grant program, is an eligible institution if new text end 4.33 new text begin the institution is licensed or registered as a postsecondary institution by the office. new text end 4.34     new text begin (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes new text end 4.35 new text begin ownership as defined in section 136A.63, subdivision 2, must participate in the federal new text end 5.1 new text begin Pell Grant program within four calendar years of the first ownership change to continue new text end 5.2 new text begin eligibility. new text end 5.3     new text begin (e) An institution that loses its eligibility for the federal Pell Grant program is not an new text end 5.4 new text begin eligible institution. new text end 5.5    Sec. 8. Minnesota Statutes 2008, section 136A.121, subdivision 6, is amended to read: 5.6    Subd. 6. Cost of attendance. (a) The recognized cost of attendance consists of 5.7allowances specified in law for living and miscellaneous expenses, and an allowance 5.8for tuition and fees equal to the lesser of the average tuition and fees charged by the 5.9institution, or the tuition and fee maximums established in law new text begin , or for students at for-profit new text end 5.10 new text begin institutions, the average tuition and fee amount for public two-year institutions for a new text end 5.11 new text begin student in a two-year program or the average tuition and fee amount for a state university new text end 5.12 new text begin for students in four-year programs new text end . 5.13    (b) For a student registering for less than full time, the office shall prorate the cost of 5.14attendance to the actual number of credits for which the student is enrolled. 5.15    (c) The recognized cost of attendance for a student who is confined to a Minnesota 5.16correctional institution shall consist of the tuition and fee component in paragraph (a), 5.17with no allowance for living and miscellaneous expenses. 5.18    (d) For the purpose of this subdivision, "fees" include only those fees that are 5.19mandatory and charged to full-time resident students attending the institution. Fees do 5.20not include charges for tools, equipment, computers, or other similar materials where the 5.21student retains ownership. Fees include charges for these materials if the institution retains 5.22ownership. Fees do not include optional or punitive fees. 5.23 new text begin EFFECTIVE DATE. new text end new text begin This section is effective for grants made beginning on July new text end 5.24 new text begin 1, 2010. new text end 5.25    Sec. 9. Minnesota Statutes 2008, section 136A.126, is amended by adding a 5.26subdivision to read: 5.27     new text begin Subd. 5. new text end new text begin Awarding procedure. new text end new text begin (a) Complete applications are ranked in order of new text end 5.28 new text begin completion date. If there are multiple applications with identical completion dates, those new text end 5.29 new text begin applications are further sorted by application receipt date. new text end 5.30     new text begin (b) Awards must be made on a first-come, first-served basis in the order complete new text end 5.31 new text begin applications are received. new text end 5.32     new text begin (c) Awards are made to eligible students until the appropriation is expended. new text end 5.33     new text begin (d) Applicants not receiving a grant and for whom the office has received a new text end 5.34 new text begin completed application are placed on a waiting list in order of application completion date. new text end 6.1    Sec. 10. new text begin [136A.129] ONETIME GRANT FOR HIGH SCHOOL-TO-COLLEGE new text end 6.2 new text begin DEVELOPMENTAL TRANSITION PROGRAM. new text end 6.3 new text begin (a) Within the limits of appropriations, a student who enrolls in a program under new text end 6.4 new text begin section new text end new text begin is eligible for a onetime grant to help pay expenses to attend the program. new text end 6.5 new text begin The amount of the grant must be determined according to section 136A.121, subdivision new text end 6.6 new text begin 5, except as modified by paragraph (b). The requirement in 136A.121, subdivision 9a, new text end 6.7 new text begin that subtracts a federal Pell Grant award for which a student would be eligible, even if new text end 6.8 new text begin the student has exhausted the federal Pell Grant award, does not apply to a student who new text end 6.9 new text begin receives a grant under this subdivision in the award year in which the grant is received. new text end 6.10 new text begin The maximum grant under this subdivision must be reduced by the average amount a new text end 6.11 new text begin student would earn working in an on-campus work-study position for ten hours per new text end 6.12 new text begin week during a summer term. The office must determine an amount for student earnings new text end 6.13 new text begin in a summer term, using available data about earnings, before determining the amount new text end 6.14 new text begin awarded under this subdivision. new text end 6.15 new text begin (b) For a student with an expected family contribution of zero, the maximum amount new text end 6.16 new text begin of the grant is the cost of attendance under section 136A.121, subdivision 6. new text end 6.17 new text begin (c) A grant under this subdivision counts as one of the eight semesters of eligibility new text end 6.18 new text begin under section 136A.121, subdivision 9. A grant under this subdivision must not be new text end 6.19 new text begin awarded for the same term for which another grant is awarded under this section. new text end 6.20 new text begin (d) Beginning in fiscal year 2012, up to $1,000,000 each year may be used for new text end 6.21 new text begin grants under this section. new text end 6.22    Sec. 11. new text begin [136A.1291] LEGISLATIVE NOTICE. new text end 6.23     new text begin The office shall notify the chairs of the legislative committees with primary new text end 6.24 new text begin jurisdiction over higher education finance of any proposed material change to the new text end 6.25 new text begin administration of any of the grant or financial aid programs in sections 136A.095 to new text end 6.26 new text begin 136A.128. new text end 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 new text begin an institution that meets the eligibility new text end 7.3 new text begin requirements under section 136A.155 new text end . 7.4    Sec. 13. new text begin [136A.155] ADDITIONAL INSTITUTION ELIGIBILITY new text end 7.5 new text begin REQUIREMENTS. new text end 7.6     new text begin A postsecondary institution is an eligible institution for purposes of sections new text end 7.7 new text begin 136A.15 to 136A.1702, if the institution: new text end 7.8     new text begin (1) meets the eligibility requirements under section 136A.103; or new text end 7.9     new text begin (2) is operated publicly or privately in another state, is approved by the United States new text end 7.10 new text begin Secretary of Education, and, as determined by the office, maintains academic standards new text end 7.11 new text begin substantially equal to those of comparable institutions operated in this state. new text end 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, new text begin including new text end the Minnesota Higher Education 7.16Coordinating Board new text begin and the Minnesota Higher Education Services Office new text end . 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 new text begin or private new text end 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; or 7.28    (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     new text begin (a) new text end 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; and 8.10    (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     new text begin (b) new text end 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     new text begin Without limitation as to other circumstance, a school shall be deemed to have ceased new text end 8.16 new text begin operations when the school: new text end 8.17     new text begin (1) has an unscheduled nonemergency closure or cancellation of classes for more new text end 8.18 new text begin than 24 hours without prior notice to the office; new text end 8.19     new text begin (2) announces it is closed or closing; or new text end 8.20     new text begin (3) files for bankruptcy. new text end 8.21    Sec. 17. Minnesota Statutes 2008, section 136A.646, is amended to read: 8.22136A.646 ADDITIONAL SECURITY. 8.23     new text begin (a) new text end 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     new text begin (b) In lieu of a bond, the institution may deposit with the commissioner of finance: new text end 8.33     new text begin (1) a sum equal to the amount of the required surety bond in cash; or new text end 8.34     new text begin (2) securities, as may be legally purchased by savings banks or for trust funds, in an new text end 8.35 new text begin aggregate market value equal to the amount of the required surety bond. new text end 9.1    Sec. 18. new text begin [136F.08] CENTRAL SYSTEM OFFICE. new text end 9.2     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin A central system office is established for the new text end 9.3 new text begin Minnesota State Colleges and Universities to provide central support to the institutions new text end 9.4 new text begin enrolling students and to assist the board in fulfilling its missions under section 136F.05. new text end 9.5 new text begin The central office must not assume responsibility for services that are most effectively new text end 9.6 new text begin and efficiently provided at the institution level. The central system office is under the new text end 9.7 new text begin direction of the chancellor. new text end 9.8     new text begin Subd. 2. new text end new text begin General duties. new text end new text begin The central system office must coordinate system level new text end 9.9 new text begin responsibilities for financial management, personnel management, facilities management, new text end 9.10 new text begin information technology, credit transfer, legal affairs, government relations, and auditing. new text end 9.11 new text begin The central system office shall coordinate its services with the services provided at the new text end 9.12 new text begin institution level so as not to duplicate any functions that are provided by institutions. new text end 9.13    Sec. 19. Minnesota Statutes 2009 Supplement, section 136F.98, subdivision 1, is 9.14amended to read: 9.15    Subdivision 1. Issuance of bonds. The Board of Trustees of the Minnesota State 9.16Colleges and Universities or a successor may issue revenue bonds under sections 136F.90 9.17to 136F.97 whose aggregate principal amount at any time may not exceed $200,000,000 new text begin new text end 9.18 new text begin $275,000,000 new text end , and payable from the revenue appropriated to the fund established by 9.19section 136F.94, and use the proceeds together with other public or private money that 9.20may otherwise become available to acquire land, and to acquire, construct, complete, 9.21remodel, and equip structures or portions thereof to be used for dormitory, residence hall, 9.22student union, food service, parking purposes, or for any other similar revenue-producing 9.23building or buildings of such type and character as the board finds desirable for the good 9.24and benefit of the state colleges and universities. Before issuing the bonds or any part 9.25of them, the board shall consult with and obtain the advisory recommendations of the 9.26chairs of the house of representatives Ways and Means Committee and the senate Finance 9.27Committee about the facilities to be financed by the bonds. 9.28    Sec. 20. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision 9.29to read: 9.30     new text begin Subd. 2a. new text end new text begin Refunds. new text end new text begin If a contract is deemed unenforceable under subdivision 2, a new text end 9.31 new text begin school must refund tuition, fees, and other charges received from a student or on behalf new text end 9.32 new text begin of a student within 30 days of receiving written notification and demand for refund from new text end 9.33 new text begin the Minnesota Office of Higher Education. new text end 10.1    Sec. 21. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read: 10.2    Subd. 7. Minimum standards. A license shall be issued if the office first 10.3determines: 10.4    (1) that the applicant has a sound financial condition with sufficient resources 10.5available to: 10.6    (i) meet the school's financial obligations; 10.7    (ii) refund all tuition and other charges, within a reasonable period of time, in the 10.8event of dissolution of the school or in the event of any justifiable claims for refund against 10.9the school by the student body; 10.10    (iii) provide adequate service to its students and prospective students; and 10.11    (iv) maintain and support the school; 10.12    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 10.13and the necessary number of work stations to prepare adequately the students currently 10.14enrolled, and those proposed to be enrolled; 10.15    (3) that the applicant employs a sufficient number of qualified teaching personnel to 10.16provide the educational programs contemplated; 10.17    (4) that the school has an organizational framework with administrative and 10.18instructional personnel to provide the programs and services it intends to offer; 10.19    (5) that the premises and conditions under which the students work and study are 10.20sanitary, healthful, and safe, according to modern standards; 10.21    (6) that the quality and content of each occupational course or program of study 10.22provides education and adequate preparation to enrolled students for entry level positions 10.23in the occupation for which prepared; 10.24    (7) that the living quarters which are owned, maintained, recommended, or approved 10.25by the applicant for students are sanitary and safe; 10.26    (8) that the contract or enrollment agreement used by the school complies with 10.27the provisions in section 141.265; 10.28    (9) that contracts and agreements do not contain a wage assignment provision or a 10.29confession of judgment clause; and 10.30    (10) that there has been no adjudication of fraud or misrepresentation in any 10.31criminal, civil, or administrative proceeding in any jurisdiction against the school or its 10.32owner, officers, agents, or sponsoring organization. 10.33    Sec. 22. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read: 10.34    Subd. 13. Schools licensed by another state agency or board. A school required 10.35to obtain a private career school license due to the use of "academy," "institute," "college," 11.1or "university" in its name new text begin or licensed for the purpose of participating in state financial aid new text end 11.2 new text begin under chapter 136A, new text end and which is also licensed by another state agency or board shall be 11.3required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7), 11.4and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12. 11.5    Sec. 23. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read: 11.6    Subd. 2. Conditions. The office shall adopt rules establishing the conditions for 11.7renewal of a license. The conditions shall permit two levels of renewal based on the record 11.8of the school. A school that has demonstrated the quality of its program and operation 11.9through longevity and performance in the state may renew its license based on a relaxed 11.10standard of scrutiny. A school that has been in operation in Minnesota for a limited period 11.11of time or that has not performed adequately on performance indicators shall renew its 11.12license based on a strict standard of scrutiny. The office shall specify minimum longevity 11.13standards and performance indicators that must be met before a school may be permitted 11.14to operate under the relaxed standard of scrutiny. The performance indicators used in this 11.15determination shall include, but not be limited to: degree granting status, regional or 11.16national accreditation, loan default rates, placement rate of graduates, student withdrawal 11.17rates, audit results, student complaints, and school status with the United States 11.18Department of Education. Schools that meet the requirements established in rule shall be 11.19required to submit a full relicensure report once every four years, and in the interim years 11.20will be exempt from the requirements of section 141.25, subdivision 3, clauses (4), (5), 11.21and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4. 11.22    Sec. 24. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read: 11.23    Subd. 2. Unlawful designation. No school organized after November 15, 1969, 11.24shall apply to itself either as a part of its name or in any other manner the designation of 11.25"college" or "university" unless such school applies for and receives certification from the 11.26office that it meets appropriate standards and is entitled to such designation. Operating 11.27schools now using such designation may continue use thereof. 11.28    Sec. 25. Minnesota Statutes 2008, section 474A.04, subdivision 6, is amended to read: 11.29    Subd. 6. Entitlement transfers. An entitlement issuer may enter into an agreement 11.30with another entitlement issuer whereby the recipient entitlement issuer issues obligations 11.31pursuant to bonding authority allocated to the original entitlement issuer under this 11.32section. An entitlement issuer may enter into an agreement with an issuer which is not 11.33an entitlement issuer whereby the recipient issuer issues qualified mortgage bonds, up to 12.1$100,000 of which are issued pursuant to bonding authority allocated to the original 12.2entitlement issuer under this section. The agreement may be approved and executed by the 12.3mayor of the entitlement issuer with or without approval or review by the city council. new text begin new text end 12.4 new text begin Notwithstanding section 474A.091, subdivision 4, prior to December 1, the Minnesota new text end 12.5 new text begin Housing Finance Agency, Minnesota Office of Higher Education, and Minnesota Rural new text end 12.6 new text begin Finance Authority may transfer allocated bonding authority made available under this new text end 12.7 new text begin chapter to one another under an agreement by each agency and the commissioner. new text end 12.8    Sec. 26. Minnesota Statutes 2008, section 474A.091, subdivision 3, is amended to read: 12.9    Subd. 3. Allocation procedure. (a) The commissioner shall allocate available 12.10bonding authority under this section on the Monday of every other week beginning with 12.11the first Monday in August through and on the last Monday in November. Applications 12.12for allocations must be received by the department by 4:30 p.m. on the Monday preceding 12.13the Monday on which allocations are to be made. If a Monday falls on a holiday, the 12.14allocation will be made or the applications must be received by the next business day 12.15after the holiday. 12.16    (b) Prior to October 1, only the following applications shall be awarded allocations 12.17from the unified pool. Allocations shall be awarded in the following order of priority: 12.18    (1) applications for residential rental project bonds; 12.19    (2) applications for small issue bonds for manufacturing projects; and 12.20    (3) applications for small issue bonds for agricultural development bond loan 12.21projects. 12.22    (c) On the first Monday in October through the last Monday in November, 12.23allocations shall be awarded from the unified pool in the following order of priority: 12.24    (1) applications for student loan bonds issued by or on behalf of the Minnesota 12.25Office of Higher Education; 12.26    (2) applications for mortgage bonds; 12.27    (3) applications for public facility projects funded by public facility bonds; 12.28    (4) applications for small issue bonds for manufacturing projects; 12.29    (5) applications for small issue bonds for agricultural development bond loan 12.30projects; 12.31    (6) applications for residential rental project bonds; 12.32    (7) applications for enterprise zone facility bonds; 12.33    (8) applications for governmental bonds; and 12.34    (9) applications for redevelopment bonds. 13.1    (d) If there are two or more applications for manufacturing projects from the 13.2unified pool and there is insufficient bonding authority to provide allocations for all 13.3manufacturing projects in any one allocation period, the available bonding authority shall 13.4be awarded based on the number of points awarded a project under section 474A.045 13.5with those projects receiving the greatest number of points receiving allocation first. If 13.6two or more applications for manufacturing projects receive an equal amount of points, 13.7available bonding authority shall be awarded by lot unless otherwise agreed to by the 13.8respective issuers. 13.9    (e) If there are two or more applications for enterprise zone facility projects from 13.10the unified pool and there is insufficient bonding authority to provide allocations for 13.11all enterprise zone facility projects in any one allocation period, the available bonding 13.12authority shall be awarded based on the number of points awarded a project under section 13.13474A.045 with those projects receiving the greatest number of points receiving allocation 13.14first. If two or more applications for enterprise zone facility projects receive an equal 13.15amount of points, available bonding authority shall be awarded by lot unless otherwise 13.16agreed to by the respective issuers. 13.17    (f) If there are two or more applications for residential rental projects from the 13.18unified pool and there is insufficient bonding authority to provide allocations for all 13.19residential rental projects in any one allocation period, the available bonding authority 13.20shall be awarded in the following order of priority: (1) projects that preserve existing 13.21federally subsidized housing; (2) projects that are not restricted to persons who are 55 13.22years of age or older; and (3) other residential rental projects. 13.23    (g) From the first Monday in August through the last Monday in November, 13.24$20,000,000 of bonding authority or an amount equal to the total annual amount of 13.25bonding authority allocated to the small issue pool under section 474A.03, subdivision 1, 13.26less the amount allocated to issuers from the small issue pool for that year, whichever is 13.27less, is reserved within the unified pool for small issue bonds to the extent such amounts 13.28are available within the unified pool. 13.29    (h) The total amount of allocations for mortgage bonds from the housing pool and 13.30the unified pool may not exceed: 13.31    (1) $10,000,000 for any one city; or 13.32    (2) $20,000,000 for any number of cities in any one county. 13.33    (i) The total amount of allocations for student loan bonds from the unified pool may 13.34not exceed $10,000,000 new text begin $25,000,000 new text end per year. 13.35    (j) If there is insufficient bonding authority to fund all projects within any qualified 13.36bond category other than enterprise zone facility projects, manufacturing projects, and 14.1residential rental projects, allocations shall be awarded by lot unless otherwise agreed to 14.2by the respective issuers. 14.3    (k) If an application is rejected, the commissioner must notify the applicant and 14.4return the application deposit to the applicant within 30 days unless the applicant requests 14.5in writing that the application be resubmitted. 14.6    (l) The granting of an allocation of bonding authority under this section must be 14.7evidenced by issuance of a certificate of allocation. 14.8    Sec. 27. Laws 2010, chapter 215, article 2, section 4, subdivision 3, is amended to read: 14.9 Subd. 3.Operations and Maintenance -0- (9,967,000) 14.10For fiscal years 2012 and 2013, the base for 14.11operations and maintenance is $592,792,000 new text begin new text end 14.12 new text begin $580,802,000 new text end each year. 14.13    Sec. 28. Laws 2010, chapter 215, article 2, section 6, the effective date, is amended to 14.14read: 14.15EFFECTIVE DATE.This section is effective the day following final enactment new text begin , new text end 14.16 new text begin for grant awards beginning July 1, 2010 new text end . 14.17    Sec. 29. new text begin STUDY OF CERTIFICATES AND DIPLOMAS; EDUCATIONAL new text end 14.18 new text begin CAREER PATH. new text end 14.19     new text begin The Board of Trustees of the Minnesota State Colleges and Universities, in new text end 14.20 new text begin conjunction with the Minnesota Chamber of Commerce, representatives of industry new text end 14.21 new text begin groups, and labor unions, shall study the program requirements for certificates and new text end 14.22 new text begin diplomas awarded by the Minnesota State Colleges and Universities to determine the new text end 14.23 new text begin feasibility of designing technical education programs to allow students to have more new text end 14.24 new text begin opportunities to earn credentials with lower credit requirements that could be combined new text end 14.25 new text begin into higher level certificates or diplomas. The study must consult with business and new text end 14.26 new text begin industry representatives as well as labor unions and faculty on the types of credentials that new text end 14.27 new text begin would be recognized for employment purposes. In addition, the study must address the new text end 14.28 new text begin feasibility of increasing the capacity to accumulate credentials in related programs into new text end 14.29 new text begin an educational career path leading to a diploma or degree. The study must also address new text end 14.30 new text begin the need for workers in other fields and take into account other job training programs new text end 14.31 new text begin provided by labor unions and business. new text end 15.1     new text begin The board must report the study findings to the committees of the legislature with new text end 15.2 new text begin responsibility for postsecondary education finance by February 15, 2011. new text end 15.3    Sec. 30. new text begin STREAMLINED MINNESOTA STATE COLLEGES AND new text end 15.4 new text begin UNIVERSITIES SYSTEM OFFICE. new text end 15.5     new text begin Notwithstanding any law or policy to the contrary, the Board of Trustees of the new text end 15.6 new text begin Minnesota State Colleges and Universities shall streamline services provided through new text end 15.7 new text begin the system's central service office to reduce expenditures, better target the use of state new text end 15.8 new text begin resources, and provide services at the most appropriate and efficient level so as not new text end 15.9 new text begin to duplicate any services provided at the institutional level. These actions must be new text end 15.10 new text begin implemented so as to achieve budgetary savings and efficiencies in delivery of services new text end 15.11 new text begin and the accomplishment of the academic mission. The board must revise any board new text end 15.12 new text begin policies in a way that is consistent with the requirements of this section. new text end 15.13    Sec. 31. new text begin CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND new text end 15.14 new text begin UNIVERSITIES. new text end 15.15     new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities must new text end 15.16 new text begin develop and implement a plan to improve credit transfers within the system. At a new text end 15.17 new text begin minimum, the board must: new text end 15.18     new text begin (1) enhance the availability of easily used information on transferring and tracking new text end 15.19 new text begin credits; new text end 15.20     new text begin (2) improve training for all staff involved with credit transfer; new text end 15.21     new text begin (3) identify barriers to transferring credits including intellectual property issues for new text end 15.22 new text begin faculty and devise methods to eliminate these barriers; and new text end 15.23     new text begin (4) identify discrepancies in the treatment of transferring and accepting credits new text end 15.24 new text begin by various institutions within the system and devise methods to improve the uniform new text end 15.25 new text begin treatment of credit transfers. new text end 15.26     new text begin (b) The board must convene working groups of affected faculty, staff, and new text end 15.27 new text begin administrators representing institutions and academic and technical disciplines in the new text end 15.28 new text begin system to work on issues and barriers to credit transfer. The purpose of the working new text end 15.29 new text begin groups is to develop specific actions that will remove any barriers to credit transfer and to new text end 15.30 new text begin improve the ease and transparency of credit transfer for students. new text end 15.31     new text begin (c) The board must report to the legislature by January 15, 2012, on the plans for and new text end 15.32 new text begin progress towards improvements in the transfer of credits. Any proposal to develop and new text end 15.33 new text begin implement a mandatory or voluntary common course numbering system for the Minnesota new text end 16.1 new text begin State Colleges and Universities must not be required until after the receipt of the report new text end 16.2 new text begin under this section. new text end 16.3    Sec. 32. new text begin POSTRETIREMENT HEALTH INSURANCE PREMIUM new text end 16.4 new text begin REIMBURSEMENT. new text end 16.5     new text begin The Minnesota State Colleges and Universities system shall waive premium new text end 16.6 new text begin reimbursement payments including any late payment charges, fees, penalties, or interest new text end 16.7 new text begin payments imposed on overdue health insurance premium reimbursements owed by a new text end 16.8 new text begin college retiree to the college under a contractual or collective bargaining agreement new text end 16.9 new text begin providing for postretirement health insurance benefits arising from employment under new text end 16.10 new text begin a contract or collective bargaining agreement with a school district or technical college new text end 16.11 new text begin prior to July 1, 1995, and who became an employee of Minnesota State Colleges and new text end 16.12 new text begin Universities on July 1, 1995. This section applies only if the college has failed to bill new text end 16.13 new text begin the retiree for the premium reimbursement payments as required under the applicable new text end 16.14 new text begin collective bargaining or contractual agreement, or if not otherwise established, within 90 new text end 16.15 new text begin days following the date on which the premium was due. new text end 16.16 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 16.17    Sec. 33. new text begin PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF new text end 16.18 new text begin MINNESOTA STATE COLLEGES AND UNIVERSITIES. new text end 16.19     new text begin Subdivision 1. new text end new text begin Establishment. new text end new text begin To increase the distribution of potential economic new text end 16.20 new text begin benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and new text end 16.21 new text begin Universities, a pilot project is established to transfer certain reserve deposits of selected new text end 16.22 new text begin institutions from the state treasury to a community financial institution. Notwithstanding new text end 16.23 new text begin Minnesota Statutes, section 16A.27, by December 31, 2010, the commissioner of new text end 16.24 new text begin management and budget shall transfer the designated amount of board-required reserve new text end 16.25 new text begin funds of colleges and universities selected by the Board of Trustees under subdivision new text end 16.26 new text begin 2, to a community financial institution designated for each of the participating colleges new text end 16.27 new text begin and universities. new text end 16.28     new text begin Subd. 2. new text end new text begin Participating colleges and universities. new text end new text begin By August 15, 2010, colleges new text end 16.29 new text begin and universities must apply to the Board of Trustees of the Minnesota State Colleges and new text end 16.30 new text begin Universities for participation in the pilot project. Each applicant must designate one or new text end 16.31 new text begin more community financial institutions for the deposit of board-required reserves with the new text end 16.32 new text begin terms of the deposit for each designated community financial institution. The designated new text end 16.33 new text begin community financial institution must be located in the geographic area of a participating new text end 16.34 new text begin campus. From the applicants, the board shall select up to eight postsecondary institutions new text end 17.1 new text begin to participate in the local deposit pilot project. In making its selection, the board must new text end 17.2 new text begin consider the size of the institution's reserves and the terms offered by the designated new text end 17.3 new text begin community financial institutions. Two-year and four-year institutions must be selected new text end 17.4 new text begin to participate in the pilot project and the majority of the selected institutions must be new text end 17.5 new text begin located in greater Minnesota. new text end 17.6     new text begin By December 1, 2010, the board must notify the commissioner of management new text end 17.7 new text begin and budget of the participating colleges and universities and the associated community new text end 17.8 new text begin financial institutions. new text end 17.9     new text begin Subd. 3. new text end new text begin Community financial institution. new text end new text begin As used in this section, "community new text end 17.10 new text begin financial institution" means a federally insured bank or credit union, chartered as a bank new text end 17.11 new text begin or credit union by the state of Minnesota or the United States, that is headquartered in new text end 17.12 new text begin Minnesota and that has no more than $2,500,000,000 in assets. new text end 17.13     new text begin Subd. 4. new text end new text begin Evaluation and report. new text end new text begin The commissioner of management and budget and new text end 17.14 new text begin the Board of Trustees shall independently evaluate the effectiveness or harm of the local new text end 17.15 new text begin deposit pilot project in increasing the use of community financial institutions and providing new text end 17.16 new text begin wider distribution of the economic benefit of the deposit of postsecondary reserves. Each new text end 17.17 new text begin evaluation must include the participating colleges, universities, and community financial new text end 17.18 new text begin institutions. The commissioner and the board shall report the results of the pilot project new text end 17.19 new text begin evaluation to the appropriate committees of the legislature by December 1, 2011, with new text end 17.20 new text begin recommendations on the future implementation of the pilot project. new text end 17.21    Sec. 34. new text begin APPROPRIATION REDUCTIONS. new text end 17.22     new text begin Any reduction in appropriations for the biennium ending June 30, 2011, for the new text end 17.23 new text begin central system office of the Minnesota State Colleges and Universities must not be passed new text end 17.24 new text begin through to any institution or campus. The Board of Trustees of the Minnesota State new text end 17.25 new text begin Colleges and Universities must not charge any institution for appropriation reductions new text end 17.26 new text begin made to the central office. new text end 17.27    Sec. 35. new text begin UNIVERSITY MAYO PARTNERSHIP. new text end 17.28     new text begin Any reductions to the University of Minnesota for operations and maintenance new text end 17.29 new text begin in fiscal year 2011 must not be allocated to the University of Minnesota and Mayo new text end 17.30 new text begin Foundation Partnership. new text end 17.31    Sec. 36. new text begin REPEALER. new text end 17.32 new text begin Minnesota Statutes 2009 Supplement, section 136A.121, subdivision 9b, new text end new text begin is repealed. new text end