HF 3495

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; clarifying data disclosure provisions; authorizing 1.3data matching; modifying institution eligibility; establishing award procedures; 1.4modifying fees; modifying security requirements; requiring certain notice; 1.5establishing a central system office; governing credit transfers; requiring 1.6system office streamlining; providing postretirement premium reimbursement; 1.7establishing a pilot project; making technical corrections; defining and clarifying 1.8terms; governing appropriation reductions;amending Minnesota Statutes 2008, 1.9sections 13.32, subdivision 3; 135A.51, subdivision 2; 136A.101, subdivision 1.1010; 136A.126, by adding a subdivision; 136A.15, subdivision 6; 136A.16, 1.11subdivision 14; 136A.62, subdivision 3; 136A.645; 136A.646; 136A.69, 1.12subdivisions 1, 3, 4; 141.25, subdivisions 7, 13, by adding a subdivision; 1.13141.251, subdivision 2; 141.255; 141.28, subdivision 2; Minnesota Statutes 2009 1.14Supplement, sections 136A.01, subdivision 2; 136A.101, subdivision 4; Laws 1.152009, chapter 95, article 1, section 3, subdivision 21; proposing coding for new 1.16law in Minnesota Statutes, chapters 136A; 136F; repealing Minnesota Statutes 1.172008, section 136A.1701, subdivision 5. 1.18BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.19    Section 1. Minnesota Statutes 2008, section 13.32, subdivision 3, is amended to read: 1.20    Subd. 3. Private data; when disclosure is permitted. Except as provided in 1.21subdivision 5, educational data is private data on individuals and shall not be disclosed 1.22except as follows: 1.23    (a) pursuant to section 13.05; 1.24    (b) pursuant to a valid court order; 1.25    (c) pursuant to a statute specifically authorizing access to the private data; 1.26    (d) to disclose information in health new text begin , including mental health, new text end and safety emergencies 1.27pursuant to the provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code 1.28of Federal Regulations, title 34, section 99.36; 2.1    (e) pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1), 2.2(b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3), (b)(6), (b)(7), and (i), and Code of Federal 2.3Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, 99.35, and 99.39; 2.4    (f) to appropriate health authorities to the extent necessary to administer 2.5immunization programs and for bona fide epidemiologic investigations which the 2.6commissioner of health determines are necessary to prevent disease or disability to 2.7individuals in the public educational agency or institution in which the investigation 2.8is being conducted; 2.9    (g) when disclosure is required for institutions that participate in a program under 2.10title IV of the Higher Education Act, United States Code, title 20, section 1092; 2.11    (h) to the appropriate school district officials to the extent necessary under 2.12subdivision 6, annually to indicate the extent and content of remedial instruction, including 2.13the results of assessment testing and academic performance at a postsecondary institution 2.14during the previous academic year by a student who graduated from a Minnesota school 2.15district within two years before receiving the remedial instruction; 2.16    (i) to appropriate authorities as provided in United States Code, title 20, section 2.171232g(b)(1)(E)(ii), if the data concern the juvenile justice system and the ability of the 2.18system to effectively serve, prior to adjudication, the student whose records are released; 2.19provided that the authorities to whom the data are released submit a written request for 2.20the data that certifies that the data will not be disclosed to any other person except as 2.21authorized by law without the written consent of the parent of the student and the request 2.22and a record of the release are maintained in the student's file; 2.23    (j) to volunteers who are determined to have a legitimate educational interest in 2.24the data and who are conducting activities and events sponsored by or endorsed by the 2.25educational agency or institution for students or former students; 2.26    (k) to provide student recruiting information, from educational data held by colleges 2.27and universities, as required by and subject to Code of Federal Regulations, title 32, 2.28section 216; 2.29    (l) to the juvenile justice system if information about the behavior of a student who 2.30poses a risk of harm is reasonably necessary to protect the health or safety of the student 2.31or other individuals; 2.32    (m) with respect to Social Security numbers of students in the adult basic education 2.33system, to Minnesota State Colleges and Universities and the Department of Employment 2.34and Economic Development for the purpose and in the manner described in section 2.35124D.52, subdivision 7 ; 3.1    (n) to the commissioner of education for purposes of an assessment or investigation 3.2of a report of alleged maltreatment of a student as mandated by section 626.556. Upon 3.3request by the commissioner of education, data that are relevant to a report of maltreatment 3.4and are from charter school and school district investigations of alleged maltreatment of a 3.5student must be disclosed to the commissioner, including, but not limited to, the following: 3.6    (1) information regarding the student alleged to have been maltreated; 3.7    (2) information regarding student and employee witnesses; 3.8    (3) information regarding the alleged perpetrator; and 3.9    (4) what corrective or protective action was taken, if any, by the school facility in 3.10response to a report of maltreatment by an employee or agent of the school or school 3.11district; 3.12    (o) when the disclosure is of the final results of a disciplinary proceeding on a charge 3.13of a crime of violence or nonforcible sex offense to the extent authorized under United 3.14States Code, title 20, section 1232g(b)(6)(A) and (B) and Code of Federal Regulations, 3.15title 34, sections 99.31(a)(13) and (14); 3.16    (p) when the disclosure is information provided to the institution under United States 3.17Code, title 42, section 14071, concerning registered sex offenders to the extent authorized 3.18under United States Code, title 20, section 1232g(b)(7); or 3.19    (q) when the disclosure is to a parent of a student at an institution of postsecondary 3.20education regarding the student's violation of any federal, state, or local law or of any 3.21rule or policy of the institution, governing the use or possession of alcohol or of a 3.22controlled substance, to the extent authorized under United States Code, title 20, section 3.231232g(i), and Code of Federal Regulations, title 34, section 99.31(a)(15), and provided the 3.24institution has an information release form signed by the student authorizing disclosure 3.25to a parent. The institution must notify parents and students about the purpose and 3.26availability of the information release forms. At a minimum, the institution must distribute 3.27the information release forms at parent and student orientation meetings. 3.28    Sec. 2. Minnesota Statutes 2008, section 135A.51, subdivision 2, is amended to read: 3.29    Subd. 2. Senior citizen. "Senior citizen" means a person who has reached 62 new text begin 66 new text end 3.30years of age before the beginning of any term, semester or quarter, in which a course of 3.31study is pursued, or a person receiving a railroad retirement annuity who has reached 60 3.32years of age before the beginning of the term. 3.33    Sec. 3. Minnesota Statutes 2009 Supplement, section 136A.01, subdivision 2, is 3.34amended to read: 4.1    Subd. 2. Responsibilities. new text begin (a) new text end The Minnesota Office of Higher Education is 4.2responsible for: 4.3(1) necessary state level administration of financial aid programs, including 4.4accounting, auditing, and disbursing state and federal financial aid funds, and reporting on 4.5financial aid programs to the governor and the legislature; 4.6(2) approval, registration, licensing, and financial aid eligibility of private collegiate 4.7and career schools, under sections 136A.61 to 136A.71 and chapter 141; 4.8(3) negotiating and administering reciprocity agreements; 4.9(4) publishing and distributing financial aid information and materials, and other 4.10information and materials under section 136A.87, to students and parents; 4.11(5) collecting and maintaining student enrollment and financial aid data and 4.12reporting data on students and postsecondary institutions to develop and implement a 4.13process to measure and report on the effectiveness of postsecondary institutions; 4.14(6) administering the federal programs that affect students and institutions on a 4.15statewide basis; and 4.16(7) prescribing policies, procedures, and rules under chapter 14 necessary to 4.17administer the programs under its supervision. 4.18 new text begin (b) The office is authorized to match individual student data from the student record new text end 4.19 new text begin enrollment database with individual student financial aid data collected and maintained new text end 4.20 new text begin by the office in order to audit or evaluate federal or state supported education programs new text end 4.21 new text begin as permitted by United States Code, title 20, section 1232g(b)(3), and Code of Federal new text end 4.22 new text begin Regulations, title 34, section 99.35. The office may match data from the following new text end 4.23 new text begin financial aid program databases with data from the student record enrollment database: new text end 4.24 new text begin tuition reciprocity; the state grant; the SELF loan; state work study; the postsecondary new text end 4.25 new text begin child care grant; the American Indian Scholarship; and the Achieve Scholarship. The new text end 4.26 new text begin office shall conduct the study in a manner that does not permit personal identification of new text end 4.27 new text begin parents or students by individuals other than representatives of the office. new text end 4.28    Sec. 4. Minnesota Statutes 2009 Supplement, section 136A.101, subdivision 4, is 4.29amended to read: 4.30    Subd. 4. Eligible institution. "Eligible institution" means a postsecondary 4.31educational institution located in this state or in a state with which the office has entered 4.32into a higher education reciprocity agreement on state student aid programs that (1) is 4.33operated by this state or the Board of Regents of the University of Minnesota, or (2) 4.34is operated privately and, as determined by the office, meets all of the following: (i) 4.35maintains academic standards substantially equivalent to those of comparable institutions 5.1operated in this state; (ii) is licensed or registered as a postsecondary institution by the 5.2office or another state agency; and (iii) by July 1, 2013, is participating in the federal Pell 5.3Grant program under Title IV of the Higher Education Act of 1965, as amended. new text begin an new text end 5.4 new text begin institution that meets the eligibility requirements under section 136A.103. new text end 5.5    Sec. 5. Minnesota Statutes 2008, section 136A.101, subdivision 10, is amended to read: 5.6    Subd. 10. Satisfactory academic progress. "Satisfactory academic progress" 5.7means that: new text begin satisfactory academic progress as defined under Code of Federal Regulations, new text end 5.8 new text begin title 34, sections 668.16(e), 668.32(f), and 668.34. new text end 5.9(1) by the end of a student's second academic year of attendance at an institution, the 5.10student has at least a cumulative grade point average of C or its equivalent, or academic 5.11standing consistent with the institution's graduation requirements; and 5.12(2) by the end of the first term of the third and fourth academic year of attendance, 5.13the student has a cumulative grade point average of at least a C or its equivalent. 5.14    Sec. 6. new text begin [136A.103] INSTITUTION ELIGIBILITY REQUIREMENTS. new text end 5.15 new text begin (a) A postsecondary institution is eligible for state student aid under chapter 136A new text end 5.16 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 5.17 new text begin with which the office has entered into a higher education reciprocity agreement on state new text end 5.18 new text begin student aid programs that: new text end 5.19 new text begin (1) is operated by this state or the Board of Regents of the University of Minnesota; new text end 5.20 new text begin or new text end 5.21 new text begin (2) is operated privately and, as determined by the office, meets the requirements of new text end 5.22 new text begin paragraph (b). new text end 5.23 new text begin (b) A private institution must: new text end 5.24 new text begin (1) maintain academic standards substantially equivalent to those of comparable new text end 5.25 new text begin institutions operated in this state; new text end 5.26 new text begin (2) be licensed or registered as a postsecondary institution by the office; and new text end 5.27 new text begin (3)(i) by July 1, 2010, participate in the federal Pell Grant program under Title IV of new text end 5.28 new text begin the Higher Education Act of 1965, as amended; or new text end 5.29 new text begin (ii) if an institution was participating in state student aid programs as of June 30, new text end 5.30 new text begin 2010, and the institution did not participate in the federal Pell Grant program by June 30, new text end 5.31 new text begin 2010, the institution must require every student who enrolls to sign a disclosure form, new text end 5.32 new text begin provided by the office, stating that the institution is not participating in the federal Pell new text end 5.33 new text begin Grant program. new text end 6.1 new text begin (c) An institution that offers only graduate-level degrees or graduate-level nondegree new text end 6.2 new text begin programs, or that offers only degrees or programs that do not meet the required minimum new text end 6.3 new text begin program length to participate in the federal Pell Grant program, is an eligible institution if new text end 6.4 new text begin the institution is licensed or registered as a postsecondary institution by the office. new text end 6.5 new text begin (d) An eligible institution under paragraph (b), clause (3), item (ii), that changes new text end 6.6 new text begin ownership as defined in section 136A.63, subdivision 2, must participate in the federal new text end 6.7 new text begin Pell Grant program within four calendar years of the first ownership change to continue new text end 6.8 new text begin eligibility. new text end 6.9 new text begin (e) An institution that loses its eligibility for the federal Pell Grant program is not an new text end 6.10 new text begin eligible institution. new text end 6.11    Sec. 7. Minnesota Statutes 2008, section 136A.126, is amended by adding a 6.12subdivision to read: 6.13     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 6.14 new text begin completion date. If there are multiple applications with identical completion dates, those new text end 6.15 new text begin applications are further sorted by application receipt date. new text end 6.16 new text begin (b) Awards must be made on a first-come, first-served basis in the order complete new text end 6.17 new text begin applications are received. new text end 6.18 new text begin (c) Awards are made to eligible students until the appropriation is expended. new text end 6.19 new text begin (d) Applicants not receiving a grant and for whom the office has received a new text end 6.20 new text begin completed application are placed on a waiting list in order of application completion date. new text end 6.21    Sec. 8. new text begin [136A.129] LEGISLATIVE NOTICE. new text end 6.22 new text begin The office shall notify the chairs of the legislative committees with primary new text end 6.23 new text begin jurisdiction over higher education finance of any proposed material change to the new text end 6.24 new text begin administration of any of the grant or financial aid programs in sections 136A.095 to new text end 6.25 new text begin 136A.128. new text end 6.26    Sec. 9. Minnesota Statutes 2008, section 136A.15, subdivision 6, is amended to read: 6.27    Subd. 6. Eligible institution. "Eligible institution" means a postsecondary 6.28educational institution that (1) is operated or regulated by this state or the Board of Regents 6.29of the University of Minnesota; (2) is operated publicly or privately in another state, is 6.30approved by the United States Secretary of Education, and, as determined by the office, 6.31maintains academic standards substantially equal to those of comparable institutions 6.32operated in this state; (3) is licensed or registered as a postsecondary institution by the 6.33office 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. 10. 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. 11. 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. 12. 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. 13. 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. 14. 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. 15. Minnesota Statutes 2008, section 136A.69, subdivision 1, is amended to read: 9.2    Subdivision 1. Registration fees. new text begin (a) new text end The office shall collect reasonable registration 9.3fees that are sufficient to recover, but do not exceed, its costs of administering the 9.4registration program. The office shall charge $1,100 for initial registration fees and $950 9.5for annual renewal fees. new text begin the fees listed in paragraphs (b) and (c) for new registrations. new text end 9.6 new text begin (b) A new school offering no more than one degree at each level during its first year new text end 9.7 new text begin must pay registration fees for each applicable level in the following amounts: new text end 9.8 new text begin associate degree new text end new text begin $2,000 new text end 9.9 new text begin baccalaureate degree new text end new text begin $2,500 new text end 9.10 new text begin master's degree new text end new text begin $3,000 new text end 9.11 new text begin doctorate degree new text end new text begin $3,500 new text end 9.12 new text begin (c) A new school that will offer more than one degree per level during its first new text end 9.13 new text begin year must pay registration fees in an amount equal to the fee for the first degree at each new text end 9.14 new text begin degree level under paragraph (b), plus fees for each additional nondegree program or new text end 9.15 new text begin degree as follows: new text end 9.16 new text begin nondegree program new text end new text begin $250 new text end 9.17 new text begin additional associate degree new text end new text begin $250 new text end 9.18 new text begin additional baccalaureate degree new text end new text begin $500 new text end 9.19 new text begin additional master's degree new text end new text begin $750 new text end 9.20 new text begin additional doctorate degree new text end new text begin $1,000 new text end 9.21 new text begin (d) The annual renewal registration fee is $1,200. new text end 9.22    Sec. 16. Minnesota Statutes 2008, section 136A.69, subdivision 3, is amended to read: 9.23    Subd. 3. Degree or nondegree program addition fee. The office processing fee new text begin new text end 9.24 new text begin fees new text end for adding a degree or nondegree program that represents a significant departure in 9.25the objectives, content, or method of delivery of degree or nondegree programs that are 9.26currently offered by the school is $500 per degree or nondegree program. new text begin are as follows: new text end 9.27 new text begin nondegree program that is a part of an existing degree new text end new text begin -0- new text end 9.28 new text begin nondegree program that is not a part of an existing degree new text end new text begin $250 each new text end 9.29 9.30 new text begin majors, specializations, emphasis areas, concentrations, and other new text end new text begin similar areas of emphasis new text end new text begin $250 each new text end 9.31 new text begin associate degrees new text end new text begin $500 each new text end 9.32 new text begin baccalaureate degrees new text end new text begin $500 each new text end 9.33 new text begin master's degrees new text end new text begin $750 each new text end 9.34 new text begin doctorate degrees new text end new text begin $2,000 each new text end 9.35    Sec. 17. Minnesota Statutes 2008, section 136A.69, subdivision 4, is amended to read: 10.1    Subd. 4. Visit or consulting fee. If the office determines that a fact-finding visit 10.2or outside consultant is necessary to review or evaluate any new or revised degree or 10.3nondegree program, the office shall be reimbursed for the expenses incurred related to the 10.4review as follows: 10.5    (1) $300 new text begin $400 new text end for the team base fee or for a paper review conducted by a consultant 10.6if the office determines that a fact-finding visit is not required; 10.7    (2) $300 for each day or part thereof on site per team member; and 10.8    (3) the actual cost of customary meals, lodging, and related travel expenses incurred 10.9by team members. 10.10    Sec. 18. new text begin [136F.08] CENTRAL SYSTEM OFFICE. new text end 10.11     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 10.12 new text begin Minnesota State Colleges and Universities to provide central support to the institutions new text end 10.13 new text begin enrolling students and to assist the board in fulfilling its missions under section 136F.05. new text end 10.14 new text begin The central office must not assume responsibility for services that are most effectively new text end 10.15 new text begin and efficiently provided at the institution level. The central system office is under the new text end 10.16 new text begin direction of the chancellor. new text end 10.17     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 10.18 new text begin responsibilities for financial management, personnel management, facilities management, new text end 10.19 new text begin information technology, credit transfer, legal affairs, government relations, and auditing. new text end 10.20 new text begin The central system office shall coordinate its services with the services provided at the new text end 10.21 new text begin institution level so as not to duplicate any functions that are provided by institutions. new text end 10.22    Sec. 19. new text begin [136F.302] CREDIT TRANSFER. new text end 10.23 new text begin The board of trustees must develop and maintain a systemwide effective and new text end 10.24 new text begin efficient mechanism for seamless student transfer between system institutions that has a new text end 10.25 new text begin goal of minimal loss of credits for transferring students. The Degree Audit and Reporting new text end 10.26 new text begin System (DARS) and the u.select database, and successor databases, housed within the new text end 10.27 new text begin office of the chancellor shall be the official repository of course equivalencies between new text end 10.28 new text begin system colleges and universities. Each system college and university shall be responsible new text end 10.29 new text begin for ensuring the accuracy and completeness of course equivalencies listed for courses new text end 10.30 new text begin offered by that college or university. The development and maintenance of the system new text end 10.31 new text begin must, at a minimum, address the following: new text end 10.32 new text begin (1) alignment of institution curriculum and its communication to stakeholders; new text end 10.33 new text begin (2) transfer between similar programs; new text end 10.34 new text begin (3) documentation for transfer-related agreements between institutions; new text end 11.1 new text begin (4) systemwide transfer information on the Internet that is easily accessible and new text end 11.2 new text begin maintained in a current and accurate status; new text end 11.3 new text begin (5) training for campus-level staff to provide accurate and consistent advice to new text end 11.4 new text begin students; new text end 11.5 new text begin (6) institutional rather than student obligation to provide prompt required new text end 11.6 new text begin documentation for course equivalency determinations; and new text end 11.7 new text begin (7) consistency of transfer policies among institutions in compliance with a system new text end 11.8 new text begin policy. new text end 11.9    Sec. 20. Minnesota Statutes 2008, section 141.25, is amended by adding a subdivision 11.10to read: 11.11     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 11.12 new text begin school must refund tuition, fees, and other charges received from a student or on behalf new text end 11.13 new text begin of a student within 30 days of receiving written notification and demand for refund from new text end 11.14 new text begin the Minnesota Office of Higher Education. new text end 11.15    Sec. 21. Minnesota Statutes 2008, section 141.25, subdivision 7, is amended to read: 11.16    Subd. 7. Minimum standards. A license shall be issued if the office first 11.17determines: 11.18    (1) that the applicant has a sound financial condition with sufficient resources 11.19available to: 11.20    (i) meet the school's financial obligations; 11.21    (ii) refund all tuition and other charges, within a reasonable period of time, in the 11.22event of dissolution of the school or in the event of any justifiable claims for refund against 11.23the school by the student body; 11.24    (iii) provide adequate service to its students and prospective students; and 11.25    (iv) maintain and support the school; 11.26    (2) that the applicant has satisfactory facilities with sufficient tools and equipment 11.27and the necessary number of work stations to prepare adequately the students currently 11.28enrolled, and those proposed to be enrolled; 11.29    (3) that the applicant employs a sufficient number of qualified teaching personnel to 11.30provide the educational programs contemplated; 11.31    (4) that the school has an organizational framework with administrative and 11.32instructional personnel to provide the programs and services it intends to offer; 11.33    (5) that the premises and conditions under which the students work and study are 11.34sanitary, healthful, and safe, according to modern standards; 12.1    (6) that the quality and content of each occupational course or program of study 12.2provides education and adequate preparation to enrolled students for entry level positions 12.3in the occupation for which prepared; 12.4    (7) that the living quarters which are owned, maintained, recommended, or approved 12.5by the applicant for students are sanitary and safe; 12.6    (8) that the contract or enrollment agreement used by the school complies with 12.7the provisions in section 141.265; 12.8    (9) that contracts and agreements do not contain a wage assignment provision or a 12.9confession of judgment clause; and 12.10    (10) that there has been no adjudication of fraud or misrepresentation in any 12.11criminal, civil, or administrative proceeding in any jurisdiction against the school or its 12.12owner, officers, agents, or sponsoring organization. 12.13    Sec. 22. Minnesota Statutes 2008, section 141.25, subdivision 13, is amended to read: 12.14    Subd. 13. Schools licensed by another state agency or board. A school required 12.15to obtain a private career school license due to the use of "academy," "institute," "college," 12.16or "university" in its name new text begin or licensed for the purpose of participating in state financial aid new text end 12.17 new text begin under chapter 136A, new text end and which is also licensed by another state agency or board shall be 12.18required to satisfy only the requirements of subdivisions 3, clauses (1), (2), (3), (5), (7), 12.19and (10); 4; 5, paragraph (b), clause (2); 7, clauses (1) and (10); 8; 9, clause (13); and 12. 12.20    Sec. 23. Minnesota Statutes 2008, section 141.251, subdivision 2, is amended to read: 12.21    Subd. 2. Conditions. The office shall adopt rules establishing the conditions for 12.22renewal of a license. The conditions shall permit two levels of renewal based on the record 12.23of the school. A school that has demonstrated the quality of its program and operation 12.24through longevity and performance in the state may renew its license based on a relaxed 12.25standard of scrutiny. A school that has been in operation in Minnesota for a limited period 12.26of time or that has not performed adequately on performance indicators shall renew its 12.27license based on a strict standard of scrutiny. The office shall specify minimum longevity 12.28standards and performance indicators that must be met before a school may be permitted 12.29to operate under the relaxed standard of scrutiny. The performance indicators used in this 12.30determination shall include, but not be limited to: degree granting status, regional or 12.31national accreditation, loan default rates, placement rate of graduates, student withdrawal 12.32rates, audit results, student complaints, and school status with the United States 12.33Department of Education. Schools that meet the requirements established in rule shall be 12.34required to submit a full relicensure report once every four years, and in the interim years 13.1will be exempt from the requirements of section 141.25, subdivision 3, clauses (4), (5), 13.2and (8), and Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, subpart 4. 13.3    Sec. 24. Minnesota Statutes 2008, section 141.255, is amended to read: 13.4141.255 FEES. 13.5    Subdivision 1. Initial licensure fee. The office processing fee for an initial licensure 13.6application is: 13.7(1) $1,500 new text begin $2,500 new text end for a school that will offer no more than one program during 13.8its first year of operation; 13.9(2) $2,000 for a school that will offer two or more nondegree level programs new text begin $750 new text end 13.10 new text begin for a school licensed exclusively due to the use of the term "college," "university," new text end 13.11 new text begin "academy," or "institute" in their name, or licensed exclusively in order to participate in new text end 13.12 new text begin state grant or SELF loan financial aid programs; and new text end 13.13 new text begin (3) $2,500, plus $500 for each additional program offered by the school, for a school new text end 13.14 during its first year of operation; and new text begin . new text end 13.15(3) $2,500 for a school that will offer two or more degree level programs during 13.16its first year of operation. 13.17    Subd. 2. Renewal licensure fee; late fee. (a) The office processing fee for a 13.18renewal licensure application is: 13.19    (1) for a category A school, as determined by the office, the fee is $865 if the school 13.20offers one program or $1,150 if the school offers two or more programs; and 13.21    (2) for a category B or C school, as determined by the office, the fee is $430 if the 13.22school offers one program or $575 if the school offers two or more programs. 13.23 new text begin (1) for a school that offers one program, the license renewal fee is $1,150; new text end 13.24 new text begin (2) for a school that offers more than one program, the license renewal fee is new text end 13.25 new text begin $1,150, plus $200 for each additional program with a maximum renewal licensing fee new text end 13.26 new text begin of $2,000; and new text end 13.27 new text begin (3) schools licensed exclusively due to the use of the term "college," "university," new text end 13.28 new text begin "academy," or "institute" in their name or licensed exclusively in order to participate in new text end 13.29 new text begin state grant or SELF loan financial aid programs shall pay a renewal fee of $750. new text end 13.30    (b) If a license renewal application is not received by the office by the close of 13.31business at least 60 days before the expiration of the current license, a late fee of $100 13.32per business day, not to exceed $3,000, shall be assessed. 13.33    Subd. 3. Degree level addition fee. The office processing fee for adding a degree 13.34level to an existing program is $2,000 per program. 14.1    Subd. 4. Program addition fee. The office processing fee for adding a program 14.2that represents a significant departure in the objectives, content, or method of delivery of 14.3programs new text begin to those new text end that are currently offered by the school is $500 per program. 14.4    Subd. 5. Visit or consulting fee. If the office determines that a fact-finding visit 14.5or outside consultant is necessary to review or evaluate any new or revised program, the 14.6office shall be reimbursed for the expenses incurred related to the review as follows: 14.7(1) $300 new text begin $400 new text end for the team base fee or for a paper review conducted by a consultant 14.8if the office determines that a fact-finding visit is not required; 14.9(2) $300 for each day or part thereof on site per team member; and 14.10(3) the actual cost of customary meals, lodging, and related travel expenses incurred 14.11by team members. 14.12    Subd. 6. Modification fee. The fee for modification of any existing program is 14.13$100 and is due if there is: 14.14(1) an increase or decrease of 25 percent or more, from the original date of program 14.15approval, in clock hours, credit hours, or calendar length of an existing program; 14.16(2) a change in academic measurement from clock hours to credit hours or vice 14.17versa; or 14.18(3) an addition or alteration of courses that represent a 25 percent change or more in 14.19the objectives, content, or methods of delivery. 14.20    Subd. 7. Solicitor permit fee. The solicitor permit fee is $350 and must be paid 14.21annually. 14.22    Subd. 8. Multiple location fee. Schools wishing to operate at multiple locations 14.23must pay: 14.24(1) $250 per location, for new text begin locations new text end two to five locations; and 14.25(2) an additional $50 new text begin $100 new text end for each location over five. 14.26    Subd. 9. Student transcript fee. The fee for a student transcript requested from 14.27a closed school whose records are held by the office is $10 new text begin $15 new text end , with a maximum of 14.28five transcripts per request. 14.29    Subd. 10. Public office documents; copies. The office shall establish rates for 14.30copies of any public office document new text begin shall be 50 cents per page new text end . 14.31    Sec. 25. Minnesota Statutes 2008, section 141.28, subdivision 2, is amended to read: 14.32    Subd. 2. Unlawful designation. No school organized after November 15, 1969, 14.33shall apply to itself either as a part of its name or in any other manner the designation of 14.34"college" or "university" unless such school applies for and receives certification from the 15.1office that it meets appropriate standards and is entitled to such designation. Operating 15.2schools now using such designation may continue use thereof. 15.3    Sec. 26. Laws 2009, chapter 95, article 1, section 3, subdivision 21, is amended to read: 15.4 Subd. 21.Transfers15.5The Minnesota Office of Higher Education 15.6may transfer unencumbered balances from 15.7the appropriations in this section to the state 15.8grant appropriation, the interstate tuition 15.9reciprocity appropriation, the child care 15.10grant appropriation, the Indian scholarship 15.11appropriation, the state work-study 15.12appropriation, the achieve scholarship 15.13appropriation, the public safety officers' 15.14survivors appropriation, and the Minnesota 15.15college savings plan appropriation. Transfers 15.16from the new text begin state grant, new text end child care new text begin , new text end or state 15.17work-study appropriations may only be made 15.18to the extent there is a projected surplus in 15.19the appropriation. A transfer may be made 15.20only with prior written notice to the chairs 15.21of the senate and house of representatives 15.22committees with jurisdiction over higher 15.23education finance. 15.24 new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end 15.25    Sec. 27. new text begin STREAMLINED MNSCU SYSTEM OFFICE. new text end 15.26 new text begin Notwithstanding any law or policy to the contrary, the Board of Trustees of the new text end 15.27 new text begin Minnesota State Colleges and Universities shall streamline services provided through new text end 15.28 new text begin the system's central service office to reduce expenditures, better target the use of state new text end 15.29 new text begin resources, and provide services at the most appropriate and efficient level so as not new text end 15.30 new text begin to duplicate any services provided at the institutional level. These actions must be new text end 15.31 new text begin implemented so as to achieve budgetary savings and efficiencies in delivery of services new text end 15.32 new text begin and the accomplishment of the academic mission. The board must revise any board new text end 15.33 new text begin policies in a way that is consistent with the requirements of this section. new text end 16.1    Sec. 28. new text begin CREDIT TRANSFER; MINNESOTA STATE COLLEGES AND new text end 16.2 new text begin UNIVERSITIES. new text end 16.3 new text begin (a) The Board of Trustees of the Minnesota State Colleges and Universities must new text end 16.4 new text begin develop and implement a plan to improve credit transfers within the system. At a new text end 16.5 new text begin minimum, the board must: new text end 16.6 new text begin (1) enhance the availability of easily used information on transferring and tracking new text end 16.7 new text begin credits; new text end 16.8 new text begin (2) improve training for all staff involved with credit transfer; new text end 16.9 new text begin (3) identify barriers to transferring credits including intellectual property issues for new text end 16.10 new text begin faculty and devise methods to eliminate these barriers; and new text end 16.11 new text begin (4) identify discrepancies in the treatment of transferring and accepting credits new text end 16.12 new text begin by various institutions within the system and devise methods to improve the uniform new text end 16.13 new text begin treatment of credit transfers. new text end 16.14 new text begin (b) The board must convene working groups of affected faculty, staff, and new text end 16.15 new text begin administrators representing institutions and academic and technical disciplines in the new text end 16.16 new text begin system to work on issues and barriers to credit transfer. The purpose of the working new text end 16.17 new text begin groups is to develop specific actions that will remove any barriers to credit transfer and to new text end 16.18 new text begin improve the ease and transparency of credit transfer for students. new text end 16.19 new text begin (c) The board of trustees must report to the legislature by January 15, 2012, on the new text end 16.20 new text begin plans for and progress towards improvements in the transfer of credits. Any proposal to new text end 16.21 new text begin develop and implement a mandatory or voluntary common course numbering system for new text end 16.22 new text begin the Minnesota State Colleges and Universities must not be required until after the receipt new text end 16.23 new text begin of the report under this section. new text end 16.24    Sec. 29. new text begin POSTRETIREMENT HEALTH INSURANCE PREMIUM new text end 16.25 new text begin REIMBURSEMENT. new text end 16.26 new text begin The Minnesota State Colleges and Universities (MnSCU) system shall waive new text end 16.27 new text begin premium reimbursement payments including any late payment charges, fees, penalties, or new text end 16.28 new text begin interest payments imposed on overdue health insurance premium reimbursements owed new text end 16.29 new text begin by a college retiree to the college under a contractual or collective bargaining agreement new text end 16.30 new text begin providing for postretirement health insurance benefits arising from employment under new text end 16.31 new text begin a contract or collective bargaining agreement with a school district or technical college new text end 16.32 new text begin prior to July 1, 1995, and who became an employee of Minnesota State Colleges and new text end 16.33 new text begin Universities on July 1, 1995. This section applies only if the college has failed to bill new text end 16.34 new text begin the retiree for the premium reimbursement payments as required under the applicable new text end 17.1 new text begin collective bargaining or contractual agreement, or if not otherwise established, within 90 new text end 17.2 new text begin days following the date on which the premium was due. new text end 17.3 new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2010. new text end 17.4    Sec. 30. new text begin REPORT OF CREDIT TRANSFER ACTIVITIES. new text end 17.5 new text begin The Board of Trustees of the Minnesota State Colleges and Universities shall report new text end 17.6 new text begin on February 15, 2011, and annually thereafter through 2015, on its activities to achieve new text end 17.7 new text begin the credit transfer goals of Minnesota Statutes, section 136F.302, and the results of those new text end 17.8 new text begin activities. The report shall be made to the chairs and ranking minority members of the new text end 17.9 new text begin legislative committees with primary jurisdiction over higher education policy and finance. new text end 17.10 new text begin The goals of Minnesota Statutes, section 136F.302, should be fully achieved as soon as new text end 17.11 new text begin possible, but no later than the start of the 2015-2016 academic year. new text end 17.12    Sec. 31. new text begin PILOT PROJECT; LOCAL DEPOSIT OF RESERVES OF new text end 17.13 new text begin MINNESOTA STATE COLLEGES AND UNIVERSITIES. new text end 17.14     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 17.15 new text begin benefit of deposits of reserve funds of the institutions of the Minnesota State Colleges and new text end 17.16 new text begin Universities, a pilot project is established to transfer certain reserve deposits of selected new text end 17.17 new text begin institutions from the state treasury to a community financial institution. Notwithstanding new text end 17.18 new text begin Minnesota Statutes, section 16A.27, on July 1, 2010, the commissioner of management new text end 17.19 new text begin and budget shall transfer the board-required reserve funds of colleges and universities new text end 17.20 new text begin selected by the board of trustees under subdivision 2, to a community financial institution new text end 17.21 new text begin designated for each of the participating colleges and universities. new text end 17.22     new text begin Subd. 2. new text end new text begin Participating colleges and universities. new text end new text begin By June 11, 2010, colleges and new text end 17.23 new text begin universities must apply to the Board of Trustees of the Minnesota State Colleges and new text end 17.24 new text begin Universities for participation in the pilot project. Each applicant must designate one or new text end 17.25 new text begin more community financial institutions for the deposit of board-required reserves, with the new text end 17.26 new text begin terms of the deposit for each designated community financial institution. The designated new text end 17.27 new text begin community financial institution must be located within 25 miles of a participating campus. new text end 17.28 new text begin From the applicants, the board shall select eight postsecondary institutions to participate in new text end 17.29 new text begin the local deposit pilot project. In making its selection, the board must consider the size new text end 17.30 new text begin of the institution's reserves and the terms offered by the designated community financial new text end 17.31 new text begin institutions. Two-year and four-year institutions must be selected to participate in the pilot new text end 17.32 new text begin project and at least five of the selected institutions must be located in greater Minnesota. new text end 18.1 new text begin By June 25, 2010, the board must notify the commissioner of management and new text end 18.2 new text begin budget of the participating colleges and universities and the associated community new text end 18.3 new text begin financial institutions. new text end 18.4     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 18.5 new text begin financial institution" means a federally insured bank or credit union, chartered as a bank new text end 18.6 new text begin or credit union by the state of Minnesota or the United States, that is headquartered in new text end 18.7 new text begin Minnesota and that has no more than $2,500,000,000 in assets. new text end 18.8     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 18.9 new text begin the board of trustees shall independently evaluate the effectiveness or harm of the local new text end 18.10 new text begin deposit pilot project in increasing the use of community financial institutions and providing new text end 18.11 new text begin wider distribution of the economic benefit of the deposit of postsecondary reserves. Each new text end 18.12 new text begin evaluation must include the participating colleges, universities, and community financial new text end 18.13 new text begin institutions. The commissioner and the board shall report the results of the pilot project new text end 18.14 new text begin evaluation to the appropriate committees of the legislature by December 1, 2011, with new text end 18.15 new text begin recommendations on the future implementation of the pilot project. new text end 18.16    Sec. 32. new text begin APPROPRIATION REDUCTIONS. new text end 18.17 new text begin Any reduction in appropriations for the biennium ending June 30, 2011, for the new text end 18.18 new text begin central system office of Minnesota State Colleges and Universities must not be passed new text end 18.19 new text begin through to any institution or campus. The Board of Trustees of the Minnesota State new text end 18.20 new text begin Colleges and Universities must not charge any institution for appropriation reductions new text end 18.21 new text begin made to the central office. new text end 18.22    Sec. 33. new text begin REPEALER. new text end 18.23 new text begin Minnesota Statutes 2008, section 136A.1701, subdivision 5, new text end new text begin is repealed. new text end