HF 675

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to education; appropriating money for higher education and related
purposes to the Office of Higher Education, the Board of Trustees of the
Minnesota State Colleges and Universities, the board of Regents of the
University of Minnesota, and the Mayo Clinic, with certain conditions; increasing
amounts of matching grants; defining terms; making technical changes;
eliminating certain report requirements; eliminating certain Legislative Advisory
Commission approval requirements; permitting certain interest rate savings and
other agreements; amending certain Pell grant requirements; requiring summary
statistics in required reports; repealing certain data sharing and collecting
requirements; modifying certain aspects of financial aid programs; establishing a
scholarship program for high achieving high school students; establishing the
Minnesota GI bill program; requiring reports; prohibiting issuance, manufacture,
or use of false or fraudulent academic credentials; providing penalties; amending
Minnesota Statutes 2006, sections 13.322, subdivision 3; 135A.031, subdivision
7; 135A.034, subdivision 1; 135A.053, subdivision 2; 135A.14, subdivision
1; 136A.01, subdivision 2; 136A.0411; 136A.08, subdivision 7; 136A.101,
subdivisions 4, 5a; 136A.121, subdivision 5; 136A.125, subdivision 2; 136A.15,
subdivisions 1, 6; 136A.16, subdivisions 1, 2, 5, 8, 9, 10, by adding a subdivision;
136A.17, subdivision 1; 136A.1701, subdivisions 1, 2, 5; 136A.233, subdivision
3; 136A.62, subdivision 3; 136A.63; 136A.65, subdivision 1, by adding a
subdivision; 136A.653; 136A.657, subdivisions 1, 2, 3, by adding a subdivision;
136A.66; 136A.67; 136A.68; 136A.69; 136A.71; 136A.861, subdivisions 1, 2,
3, 6; 136G.11, subdivision 5; 141.21, subdivisions 1a, 5; 141.25, subdivisions
1, 5, 7, 9, 10, 12; 141.255, subdivision 2; 141.265, subdivision 2; 141.271,
subdivisions 10, 12; 141.28, subdivision 1; 141.35; proposing coding for new law
in Minnesota Statutes, chapters 136A; 141; 197; repealing Minnesota Statutes
2006, sections 135A.01; 135A.031, subdivisions 1, 2, 3, 4, 5, 6; 135A.032;
135A.033; 136A.07; 136A.08, subdivision 8; 136A.1702; 136A.61.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

HIGHER EDUCATION APPROPRIATIONS

Section 1. new text begin SUMMARY OF APPROPRIATIONS. new text end

new text begin The amounts shown in this section summarize direct appropriations, by fund, made
in this article.
new text end

		new text begin 2008 new text end		new text begin 2009 new text end		new text begin Total new text end
new text begin General new text end	new text begin $ new text end	new text begin 1,597,964,000 new text end	new text begin $ new text end	new text begin 1,618,253,000 new text end	new text begin $ new text end	new text begin 3,216,217,000 new text end
new text begin Health Care Access new text end		new text begin 2,157,000 new text end		new text begin 2,157,000 new text end		new text begin 4,314,000 new text end
new text begin Total new text end	new text begin $ new text end	new text begin 1,600,121,000 new text end	new text begin $ new text end	new text begin 1,620,410,000 new text end	new text begin $ new text end	new text begin 3,220,531,000 new text end

Sec. 2. new text begin HIGHER EDUCATION APPROPRIATIONS. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2008" and "2009" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2008, or
June 30, 2009, respectively. "The first year" is fiscal year 2008. "The second year" is fiscal
year 2009. "The biennium" is fiscal years 2008 and 2009.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2008 new text end		new text begin 2009 new text end

Sec. 3. new text begin MINNESOTA OFFICE OF HIGHER EDUCATION new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 245,393,000 new text end

new text begin $ new text end

new text begin 246,404,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin ACHIEVE new text end

new text begin 46,000,000 new text end

new text begin 46,000,000 new text end

new text begin For grants to eligible postsecondary students
under Minnesota Statutes, section 136A.127.
new text end

new text begin Of this appropriation, $249,000 the first
year and $101,000 the second year are for
the administrative costs of operating this
program. For the 2010-2011 biennium,
the base for this program's administrative
costs must be included within the agency
administration program activity.
new text end

new text begin Subd. 3. new text end new text begin Minnesota GI Bill new text end

new text begin 15,000,000 new text end

new text begin 15,000,000 new text end

new text begin For grants to eligible veterans or the eligible
spouses and children of veterans as provided
under Minnesota Statutes, section 197.791.
new text end

new text begin Of this appropriation, $152,000 the first
year and $104,000 the second year are for
the administrative costs of operating this
program. For the 2010-2011 biennium,
the base for this program's administrative
costs must be included within the agency
administration program activity.
new text end

new text begin Subd. 4. new text end new text begin State Grants new text end

new text begin 150,254,000 new text end

new text begin 151,224,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin For the biennium, the private institution
tuition maximum is set at $9,838 in each
year for students in four-year programs, and
$6,836 in each year for students in two-year
programs.
new text end

new text begin This appropriation sets the living and
miscellaneous expense allowance at $5,550
each year.
new text end

new text begin Subd. 5. new text end new text begin Safety Officers Survivors new text end

new text begin 100,000 new text end

new text begin 100,000 new text end

new text begin This appropriation is to provide educational
benefits under Minnesota Statutes, section
299A.45, to dependent children under age 23
and to the spouses of public safety officers
killed in the line of duty.
new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available for it.
new text end

new text begin Subd. 6. new text end new text begin Interstate Tuition Reciprocity new text end

new text begin 2,000,000 new text end

new text begin 2,000,000 new text end

new text begin If the appropriation in this subdivision for
either year is insufficient, the appropriation
for the other year is available to meet
reciprocity contract obligations.
new text end

new text begin Subd. 7. new text end new text begin State Work Study new text end

new text begin 12,444,000 new text end

new text begin 12,444,000 new text end

new text begin Subd. 8. new text end new text begin Child Care Grants new text end

new text begin 4,934,000 new text end

new text begin 4,934,000 new text end

new text begin Subd. 9. new text end new text begin Minitex new text end

new text begin 4,381,000 new text end

new text begin 4,381,000 new text end

new text begin Subd. 10. new text end new text begin MnLINK Gateway new text end

new text begin 400,000 new text end

new text begin 400,000 new text end

new text begin Subd. 11. new text end new text begin Learning Network of Minnesota new text end

new text begin 4,800,000 new text end

new text begin 4,800,000 new text end

new text begin Subd. 12. new text end new text begin Minnesota College Savings Plan new text end

new text begin 1,120,000 new text end

new text begin 1,120,000 new text end

new text begin Subd. 13. new text end new text begin Midwest Higher Education Compact new text end

new text begin 90,000 new text end

new text begin 90,000 new text end

new text begin Subd. 14. new text end new text begin Other Small Programs new text end

new text begin 920,000 new text end

new text begin 920,000 new text end

new text begin This appropriation includes funding for
postsecondary service learning, student and
parent information, get ready, outreach, and
intervention for college attendance programs.
new text end

new text begin Of this appropriation, $115,000 each year is
for grants to increase campus-community
collaboration and service learning statewide.
For every $1 in state funding, grant
recipients must contribute $2 in campus or
community-based support.
new text end

new text begin Subd. 15. new text end new text begin United Family Medicine Residency Program new text end

new text begin 360,000 new text end

new text begin 360,000 new text end

new text begin For a grant to the United Family Medicine
residency program. This appropriation
must be used to support up to 18 resident
physicians each year in family practice at
United Family Medicine residency programs
and must prepare doctors to practice family
care medicine in underserved rural and
urban areas of the state. The legislature
intends this program to improve health
care in underserved communities, provide
affordable access to appropriate medical
care, and manage the treatment of patients in
a more cost-effective manner.
new text end

new text begin Subd. 16. new text end new text begin Agency Administration new text end

new text begin 2,690,000 new text end

new text begin 2,731,000 new text end

new text begin Of this appropriation, $39,000 the first
year and $80,000 the second year are for
compensation-related costs associated with
the delivery of the office's services and
programs.
new text end

new text begin Subd. 17. new text end new text begin Balances Forward new text end

new text begin A balance in the first year under this section
does not cancel, but is available for the
second year.
new text end

new text begin Subd. 18. new text end new text begin Transfers new text end

new text begin The Office Of Higher Education may
transfer unencumbered balances from the
appropriations in subdivisions 4 to 16 to the
state grant appropriation, the safety officer
survivors appropriation, the interstate tuition
reciprocity appropriation, the Minnesota
college savings plan appropriation, the child
care appropriation, and the state work study
appropriation.
new text end

new text begin Subd. 19. new text end new text begin Reporting new text end

new text begin (a) By November 1 and February 15, the
office must provide updated state grant
spending projections taking into account
the most current and projected enrollment
and tuition and fee information, economic
conditions, and other relevant factors.
Before submitting state grant spending
projections, the office must meet and consult
with representatives of public and private
postsecondary education, the Department of
Finance, governor's office, legislative staff,
and financial aid administrators.
new text end

new text begin (b) The Minnesota Office of Higher
Education shall report to the higher education
divisions of the house and senate finance
committees on participation in postsecondary
education by income, and persistence and
graduation rates of state grant recipients
compared to students who did not receive
state grants. The office is authorized to match
individual student data from the student
record enrollment database with individual
student data from the state grant database on
data elements necessary to perform the study.
new text end

Sec. 4. new text begin BOARD OF TRUSTEES OF THE MINNESOTA STATE COLLEGES AND UNIVERSITIES new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 664,194,000 new text end

new text begin $ new text end

new text begin 663,194,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin General Appropriation new text end

new text begin 664,194,000 new text end

new text begin 638,194,000 new text end

new text begin Of this appropriation, $6,000,000 each year
is for the board to develop or strengthen
projects to improve campus recruitment and
retention of underserved or underrepresented
students.
new text end

new text begin Of this appropriation, $1,500,000 each year
is for the board to develop curricula in allied
health programs, including instruction in
electronic medical record technology.
new text end

new text begin Of this appropriation, $1,500,000 each year
is for the board to select, as provided under
Minnesota Statutes, section 136F.31, and
provide support to one additional center of
excellence in the area of biosciences at the
program or campus level.
new text end

new text begin Of this appropriation, $5,000,000 each year
is for the board to improve and expand
educational offerings in the areas of science,
technical, engineering, and math education.
new text end

new text begin Of this appropriation, $3,000,000 the
first year and $7,000,000 the second year
is to provide resources for the board to
implement management innovations that
remove internal barriers to innovation and
responsiveness.
new text end

new text begin Of this appropriation, $45,000,000 the
first year and $15,000,000 the second
year is for the board to upgrade and
support MnSCUa??s technology environment,
including enhanced security management,
network modernization, and new technology
architecture.
new text end

new text begin Subd. 3. new text end new text begin Performance Bonus new text end

new text begin -0- new text end

new text begin 25,000,000 new text end

new text begin (a) This is a onetime appropriation in the
second year that is available after the board
meets the requirements of this subdivision.
new text end

new text begin (b) The board, on or before April 1, 2008,
must report to the house Higher Education
and Work Force Development Finance and
Policy Division, the senate Higher Education
Budget and Policy Division, and the Office of
Higher Education on the board's attainment
of each performance goal specified in this
subdivision.
new text end

new text begin (c) The appropriation is available after the
board demonstrates to the commissioner of
finance that the board has met at least three
of the following five performance goals:
new text end

new text begin (1) an increase in the percentage of students
who take college-level courses in science,
technology, engineering, and math of at least
five percent over fiscal year 2007 levels;
new text end

new text begin (2) an increase in the enrollment of upper
division-designated center of excellence
programs by at least five percent each year
over fiscal year 2007 levels;
new text end

new text begin (3) an increase in the number of students
trained on the use of electronic medical
record technology by at least 1,400 over
fiscal year 2007 levels;
new text end

new text begin (4) an increase in the number of students
taking online courses, or an increase in the
number of online course offerings, by at least
ten percent over fiscal year 2007 levels; and
new text end

new text begin (5) an expansion by at least ten percent over
2006-2007 biennium levels in the reach
or utilization of "awards of excellence"
or other initiatives that reward member
institutions, faculty, administrators, or
staff for innovations designed to advance
excellence and efficiency.
new text end

new text begin (d) By October 1, 2007, the board and the
Office of Higher Education must agree on
specific numerical indicators and definitions
for each of the five goals that will be used to
demonstrate the Minnesota State Colleges
and Universities' attainment of each goal.
new text end

Sec. 5. new text begin BOARD OF REGENTS OF THE UNIVERSITY OF MINNESOTA new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 689,332,000 new text end

new text begin $ new text end

new text begin 709,562,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Operations and Maintenance new text end

new text begin 623,462,000 new text end

new text begin 618,692,000 new text end

new text begin Of this amount, $38,000,000 in fiscal year
2008 is for the direct and indirect expenses
of the collaborative research partnership
between the University and the Mayo
Foundation for research in biotechnology
and medical genomics. This is a onetime
appropriation that is available until expended.
An annual report on the expenditure of these
funds must be submitted to the governor and
to the chairs of the senate Higher Education
and Economic Development Budget
Divisions, and the house Higher Education
and Work Force Development Policy and
Finance Division by June 30 of each fiscal
year until the appropriation is expended.
new text end

new text begin Of this amount, $3,450,000 each year
is for the board to make investments in
the university's technology and related
infrastructure.
new text end

new text begin Of this amount, $9,800,000 the first year and
$18,700,000 the second year are to award
faculty and staff compensation increases
differentially.
new text end

new text begin Of this amount, $8,800,000 the first year
and $19,100,000 the second year are for
the board's health workforce and clinical
sciences initiative.
new text end

new text begin Of this amount, $4,100,000 the first year
and $11,500,000 the second year are for the
board's initiatives in science and engineering.
new text end

new text begin Of this amount, $3,100,000 the first year
and $8,400,000 the second year are for
the board's initiatives relating to the
environment, agriculture, and renewable
energy.
new text end

new text begin Subd. 3. new text end new text begin Performance Bonus new text end

new text begin -0- new text end

new text begin 25,000,000 new text end

new text begin (a) This is a onetime appropriation in the
second year that is available after the board
meets the requirements of this subdivision.
new text end

new text begin (b) The board, on or before April 1, 2008,
must report to the house Higher Education
and Work Force Development Finance and
Policy Division, the senate Higher Education
Budget and Policy Division, and the Office of
Higher Education on the board's attainment
of each performance goal specified in this
subdivision.
new text end

new text begin (c) The appropriation is available after the
board demonstrates to the commissioner of
finance that the board has met at least three
of the following five performance goals:
new text end

new text begin (1) an increase in the percentage of national
faculty awards in arts, humanities, science,
engineering, and health of at least five
percent over fiscal year 2007 levels;
new text end

new text begin (2) to maintain or improve the universitya??s
rank in its national share of funding from
the National Institutes of Health over 2007
levels;
new text end

new text begin (3) an increase in the percentage of
postdoctoral appointees of at least five
percent over fiscal year 2007 levels;
new text end

new text begin (4) an increase in the amount of financial
support from key funders of renewable
energy research by at least five percent over
fiscal year 2007 levels; and
new text end

new text begin (5) an increase of at least five in the number
of "high value licenses" to a Minnesota-based
commercial partner, or in the number of
"venture-quality start-up companies" in
Minnesota that are identified and developed
by the universitya??s Office of Technology
Commercialization over the number of these
licenses or start-up companies that were
identified or developed by the university in
the 2006-2007 biennium.
new text end

new text begin (d) By October 1, 2007, the board and the
Office of Higher Education, must agree on
specific numerical indicators and definitions
for each of the five goals that will be used
to demonstrate the university's attainment of
each goal.
new text end

new text begin Subd. 4. new text end new text begin Health Care Access Fund new text end

new text begin 2,157,000 new text end

new text begin 2,157,000 new text end

new text begin This appropriation is from the health care
access fund and is for primary care education
initiatives.
new text end

new text begin Subd. 5. new text end new text begin Special Appropriation new text end

new text begin 63,713,000 new text end

new text begin 63,713,000 new text end

new text begin (a) Agriculture and Extension Service new text end

new text begin 50,625,000 new text end

new text begin 50,625,000 new text end

new text begin This appropriation is for the Agricultural
Experiment Station, Minnesota Extension
Service.
new text end

new text begin (b) Health Sciences new text end

new text begin 5,275,000 new text end

new text begin 5,275,000 new text end

new text begin Of this appropriation, $346,000 each year
is to support up to 12 resident physicians
each year in the St. Cloud Hospital family
practice residency program. The program
must prepare doctors to practice primary care
medicine in the rural areas of the state. The
legislature intends this program to improve
health care in rural communities, provide
affordable access to appropriate medical
care, and manage the treatment of patients in
a more cost-effective manner.
new text end

new text begin The remainder of this appropriation is for
the rural physicians associates program, the
Veterinary Diagnostic Laboratory, health
sciences research, dental care, and the
Biomedical Engineering Center.
new text end

new text begin (c) Institute of Technology new text end

new text begin 1,387,000 new text end

new text begin 1,387,000 new text end

new text begin This appropriation is for the geological
survey and the talented youth mathematics
program.
new text end

new text begin (d) System Specials new text end

new text begin 6,426,000 new text end

new text begin 6,426,000 new text end

new text begin This appropriation is for general research,
student loans matching money, industrial
relations education, Natural Resources
Research Institute, Center for Urban and
Regional Affairs, Bell Museum of Natural
History, and the Humphrey exhibit.
new text end

new text begin Subd. 6. new text end new text begin Academic Health Center new text end

new text begin The appropriation for Academic Health
Center funding under Minnesota Statutes,
section 297F.10, is $22,250,000 each year.
new text end

Sec. 6. new text begin MAYO CLINIC new text end

new text begin Subdivision 1. new text end new text begin Total Appropriation new text end

new text begin $ new text end

new text begin 1,202,000 new text end

new text begin $ new text end

new text begin 1,250,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Subd. 2. new text end new text begin Medical School new text end

new text begin 591,000 new text end

new text begin 615,000 new text end

new text begin The state of Minnesota must pay a capitation
each year for each student who is a resident
of Minnesota. The appropriation may be
transferred between years of the biennium to
accommodate enrollment fluctuations. The
funding base for this program is $640,000 in
fiscal year 2010 and $665,000 in fiscal year
2011.
new text end

new text begin It is intended that during the biennium the
Mayo Clinic use the capitation money to
increase the number of doctors practicing in
rural areas in need of doctors.
new text end

new text begin Subd. 3. new text end new text begin Family Practice and Graduate Residency Program new text end

new text begin 611,000 new text end

new text begin 635,000 new text end

new text begin The state of Minnesota must pay stipend
support for up to 27 residents each year. The
funding base for this program is $660,000 in
fiscal year 2010 and $686,000 in fiscal year
2011.
new text end

ARTICLE 2

RELATED HIGHER EDUCATION PROVISIONS

Section 1.

Minnesota Statutes 2006, section 13.322, subdivision 3, is amended to read:

Subd. 3.

Minnesota Office of Higher Education.

(a) General. Data sharing
involving the Minnesota Office of Higher Education and other institutions is governed
by deleted text begin sections deleted text end new text begin section new text end 136A.05 deleted text begin and 136A.08, subdivision 8 deleted text end .

(b) Student financial aid. Data collected and used by the Minnesota Office of
Higher Education on applicants for financial assistance are classified under section
136A.162.

(c) Minnesota college savings plan data. Account owner data, account data, and
data on beneficiaries of accounts under the Minnesota college savings plan are classified
under section 136G.05, subdivision 10.

(d) School financial records. Financial records submitted by schools registering
with the Minnesota Office of Higher Education are classified under section 136A.64.

(e) Enrollment and financial aid data. Data collected from eligible institutions on
student enrollment and federal and state financial aid are governed by sections 136A.121,
subdivision 18, and 136A.1701, subdivision 11.

Sec. 2.

Minnesota Statutes 2006, section 135A.031, subdivision 7, is amended to read:

Subd. 7.

Reports.

Instructional expenditure and enrollment data deleted text begin for each
instructional category deleted text end shall be submitted new text begin by the public postsecondary systems to the
Minnesota Office of Higher Education and the Department of Finance and included new text end in the
biennial budget document. new text begin The specific data shall be submitted only after the director of
the Minnesota Office of Higher Education has consulted with a data advisory task force to
determine the need, content, and detail of the information.
new text end

Sec. 3.

Minnesota Statutes 2006, section 135A.034, subdivision 1, is amended to read:

Subdivision 1.

Operating budget.

The governing boards of the University of
Minnesota, and the Minnesota State Colleges and Universities shall each develop, for
legislative and executive branch acceptance, its highest budget priorities in accordance
with statewide objectives for higher education. deleted text begin It is the intent of the legislature to
appropriate at least 67 percent of the total cost of instruction after adjusting for inflation
and enrollment changes. However, in the event of a budget shortfall, or if funding of
inflation is not possible, available funding shall first be applied to the agreed upon budget
priorities.
deleted text end

Sec. 4.

Minnesota Statutes 2006, section 135A.053, subdivision 2, is amended to read:

Subd. 2.

Performance and accountability.

Higher education systems and
campuses are expected to achieve the objectives in subdivision 1 and will be held
accountable for doing so. The legislature is increasing the flexibility of the systems and
campuses to provide greater responsibility to higher education in deciding how to achieve
statewide objectives, and to decentralize authority so that those decisions can be made
at the level where the education is delivered. deleted text begin To demonstrate their accountability, the
legislature expects each system and campus to measure and report on its performance,
using meaningful indicators that are critical to achieving the objectives in subdivision 1,
as provided in section 135A.033. deleted text end Nothing in this section precludes a system or campus
from determining its own objectives and performance measures beyond those identified
in this section.

Sec. 5.

Minnesota Statutes 2006, section 135A.14, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

As used in this section, the following terms have the
meanings given them.

(a) "Administrator" means the administrator of the institution or other person with
general control and supervision of the institution.

(b) "Public or private postsecondary educational institution" or "institution" means
any of the following institutions having an enrollment of more than 100 persons during
any quarter, term, or semester during the preceding year: (1) the University of Minnesota;
(2) the state universities; (3) the state community colleges; (4) public technical colleges;
(5) private four-year, professional and graduate institutions; (6) private two-year colleges;
and (7) schools subject to either chapter 141, sections new text begin 136A.615 new text end to 136A.71, or
schools exempt under section 136A.657, and which offer educational programs within the
state for an academic year greater than six consecutive months. An institution's report to
the Minnesota Office of Higher Education or the Minnesota Department of Education may
be considered when determining enrollment.

(c) "Student" means a person born after 1956 who did not graduate from a Minnesota
high school in 1997 or later, and who is (1) registering for more than one class during
a full academic term, such as a quarter or a semester or (2) housed on campus and is
registering for one or more classes. Student does not include persons enrolled in extension
classes only or correspondence classes only.

Sec. 6.

new text begin [136A.002] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For purposes of this chapter, the terms defined in this section
have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Office of Higher Education; office. new text end

new text begin "Office of Higher Education" or
"office" means the Minnesota Office of Higher Education.
new text end

Sec. 7.

Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to read:

Subd. 2.

Responsibilities.

The Minnesota Office of Higher Education is responsible
for:

(1) necessary state level administration of financial aid programs, including
accounting, auditing, and disbursing state and federal financial aid funds, and reporting on
financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate
and career schools, under sections new text begin 136A.615 new text end to 136A.71 and chapter 141;

(3) administering the Learning Network of Minnesota;

(4) negotiating and administering reciprocity agreements;

(5) publishing and distributing financial aid information and materials, and other
information and materials under section 136A.87, to students and parents;

(6) collecting and maintaining student enrollment and financial aid data and
reporting data on students and postsecondary institutions to develop and implement a
process to measure and report on the effectiveness of postsecondary institutions;

(7) administering the federal programs that affect students and institutions on a
statewide basis; and

(8) prescribing policies, procedures, and rules under chapter 14 necessary to
administer the programs under its supervision.

Sec. 8.

Minnesota Statutes 2006, section 136A.0411, is amended to read:

136A.0411 COLLECTING FEES.

The office may charge fees for seminars, conferences, workshops, services, and
materials. The office may collect fees for registration and licensure of private institutions
under sections new text begin 136A.615 new text end to 136A.71 and chapter 141. The money is annually
appropriated to the office.

Sec. 9.

Minnesota Statutes 2006, section 136A.08, subdivision 7, is amended to read:

Subd. 7.

Reporting.

The Minnesota Office of Higher Education must annually,
before the last day in January, submit a report to the committees in the house of
representatives and the senate with responsibility for higher education finance on:

(1) participation in the tuition reciprocity program by Minnesota students and
students from other states attending Minnesota postsecondary institutions under a
reciprocity agreement;

(2) reciprocity and resident tuition rates at each institution; deleted text begin and
deleted text end

(3) interstate payments and obligations for each state participating in the tuition
reciprocity program in the prior year deleted text begin . deleted text end new text begin ; and
new text end

new text begin (4) summary statistics on number of graduates by institution, degree granted, and
year of graduation for reciprocity students who attended Minnesota postsecondary
institutions.
new text end

Sec. 10.

Minnesota Statutes 2006, section 136A.101, subdivision 4, is amended to read:

Subd. 4.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution located in this state or in a state with which the office has entered
into a higher education reciprocity agreement on state student aid programs that deleted text begin either deleted text end (1)
is operated by this state new text begin or the Board of Regents of the University of Minnesota new text end , or (2) is
operated deleted text begin publicly deleted text end deleted text begin or deleted text end privately and, as determined by the office, new text begin meets all of the following:
new text end new text begin (i) new text end maintains academic standards substantially equivalent to those of comparable
institutions operated in this state new text begin ; (ii) is licensed or registered as a postsecondary institution
by the office or another state agency; and (iii) by July 1, 2011, is participating in the federal
Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end .

Sec. 11.

Minnesota Statutes 2006, section 136A.101, subdivision 5a, is amended to
read:

Subd. 5a.

Assigned family responsibility.

"Assigned family responsibility" means
the amount of a deleted text begin family deleted text end new text begin family's new text end contribution to a student's cost of attendance, as determined
by a federal need analysis. For dependent students, the assigned family responsibility is
new text begin 95 percent of new text end the parental contribution. For independent students with dependents other
than a spouse, the assigned family responsibility is new text begin 85 percent of new text end the student contribution.
For independent students without dependents other than a spouse, the assigned family
responsibility is deleted text begin 72 deleted text end new text begin 67 new text end percent of the student contribution. deleted text begin The assigned family
responsibility for all other independent students is 90 percent of the student contribution.
deleted text end

Sec. 12.

Minnesota Statutes 2006, section 136A.121, subdivision 5, is amended to read:

Subd. 5.

Grant stipends.

The grant stipend shall be based on a sharing of
responsibility for covering the recognized cost of attendance by the applicant, the
applicant's family, and the government. The amount of a financial stipend must not
exceed a grant applicant's recognized cost of attendance, as defined in subdivision 6, after
deducting the following:

(1) the assigned student responsibility of at least 46 percent of the cost of attending
the institution of the applicant's choosing;

(2) the assigned family responsibility as defined in section 136A.101; and

(3) the amount of a federal Pell grant award for which the grant applicant is eligible. new text begin
In the case of a student who is confined to a Minnesota correctional institution, the amount
of the federal Pell grant for which the student would have been eligible if the student
were not incarcerated will be subtracted.
new text end

The minimum financial stipend is $100 per academic year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 13.

Minnesota Statutes 2006, section 136A.125, subdivision 2, is amended to read:

Subd. 2.

Eligible students.

(a) An applicant is eligible for a child care grant if
the applicant:

(1) is a resident of the state of Minnesota;

(2) has a child 12 years of age or younger, or 14 years of age or younger who is
disabled as defined in section 125A.02, and who is receiving or will receive care on a
regular basis from a licensed or legal, nonlicensed caregiver;

(3) is income eligible as determined by the office's policies and rules, but is not a
recipient of assistance from the Minnesota family investment program;

(4) has not earned a baccalaureate degree and has been enrolled full time less than
eight semesters or the equivalent;

(5) is pursuing a nonsectarian program or course of study that applies to an
undergraduate degree, diploma, or certificate;

(6) is enrolled at least half time in an eligible institution; and

(7) is in good academic standing and making satisfactory academic progress.

(b) A student who withdraws from enrollment for active military service is entitled
to an additional semester or the equivalent of grant eligibility new text begin and will be considered to be
in continuing enrollment status upon return new text end .

Sec. 14.

Minnesota Statutes 2006, section 136A.15, subdivision 1, is amended to read:

Subdivision 1.

Scope.

For purposes of sections 136A.15 to ,
the terms defined in this section have the meanings deleted text begin ascribed to deleted text end new text begin given new text end them.

Sec. 15.

Minnesota Statutes 2006, section 136A.15, subdivision 6, is amended to read:

Subd. 6.

Eligible institution.

"Eligible institution" means a postsecondary
educational institution that deleted text begin either deleted text end (1) is operated or regulated by this state deleted text begin , deleted text end or new text begin the Board of
Regents of the University of Minnesota; new text end (2) is operated publicly or privately in another
state, is approved by the United States Secretary of Education, and, as determined by
the office, maintains academic standards substantially equal to those of comparable
institutions operated in this state new text begin ; (3) is licensed or registered as a postsecondary institution
by the office or another state agency; and (4) by July 1, 2011, is participating in the federal
Pell Grant program under Title IV of the Higher Education Act of 1965, as amended new text end . It
also includes any institution chartered in a province.

Sec. 16.

Minnesota Statutes 2006, section 136A.16, subdivision 1, is amended to read:

Subdivision 1.

Designation.

Notwithstanding chapter 16C, the Minnesota Office of
Higher Education is designated as the administrative agency for carrying out the purposes
and terms of sections 136A.15 to . The office may establish one
or more loan programs.

Sec. 17.

Minnesota Statutes 2006, section 136A.16, subdivision 2, is amended to read:

Subd. 2.

Rules.

The office shall adopt policies and prescribe appropriate rules to
carry out the purposes of sections 136A.15 to . The policies and
rules except as they relate to loans under section 136A.1701 must be compatible with
the provisions of the National Vocational Student Loan Insurance Act of 1965 and the
provisions of title IV of the Higher Education Act of 1965, and any amendments thereof.

Sec. 18.

Minnesota Statutes 2006, section 136A.16, subdivision 5, is amended to read:

Subd. 5.

Agencies.

The office may contract with guarantee agencies, insurance
agencies, collection agencies, or any other person, to carry out the purposes of sections
136A.15 to .

Sec. 19.

Minnesota Statutes 2006, section 136A.16, subdivision 8, is amended to read:

Subd. 8.

Investment.

Money made available to the office that is not immediately
needed for the purposes of sections 136A.15 to may be invested
by the office. The money must be invested in bonds, certificates of indebtedness, and
other fixed income securities, except preferred stocks, which are legal investments for the
permanent school fund. The money may also be invested in prime quality commercial
paper that is eligible for investment in the state employees retirement fund. All interest
and profits from such investments inure to the benefit of the office or may be pledged for
security of bonds issued by the office or its predecessor, the Minnesota Higher Education
Coordinating Board.

Sec. 20.

Minnesota Statutes 2006, section 136A.16, subdivision 9, is amended to read:

Subd. 9.

Staff.

The office may employ the professional and clerical staff the
director deems necessary for the proper administration of the loan programs established
and defined by sections 136A.15 to .

Sec. 21.

Minnesota Statutes 2006, section 136A.16, subdivision 10, is amended to read:

Subd. 10.

Director.

Subject to its directives and review, the office may delegate to
the director the responsibility for issuance of public information concerning provisions of
sections 136A.15 to , for design of loan application forms, and for
prescribing procedures for submission of applications for loans.

Sec. 22.

Minnesota Statutes 2006, section 136A.16, is amended by adding a
subdivision to read:

new text begin Subd. 16. new text end

new text begin Interest rate swaps and other agreements. new text end

new text begin (a) The office may enter into
interest rate exchange or swap agreements, hedges, forward purchase or sale agreements,
or other comparable interest rate protection agreements with a third party in connection
with the issuance or proposed issuance of bonds, outstanding bonds or notes, or existing
comparable interest rate protection agreements.
new text end

new text begin (b) The agreements authorized by this subdivision include, without limitation, master
agreements, options, or contracts to enter into those agreements in the future and related
agreements, including, without limitation, agreements to provide credit enhancement,
liquidity, or remarketing.
new text end

new text begin (c) The agreements authorized by this subdivision may be entered into on the basis
of negotiation with a qualified third party or through a competitive proposal process on
terms and conditions as and with covenants and provisions approved by the office and
may include, without limitation:
new text end

new text begin (1) provisions establishing reserves;
new text end

new text begin (2) pledging assets or revenues of the office for current or other payments or
termination payments;
new text end

new text begin (3) contracting with the other parties to the agreements to provide for the custody,
collection, securing, investment, and payment of money of the office or money held in
trust; or
new text end

new text begin (4) requiring the issuance of bonds or other agreements authorized by this section
in the future.
new text end

new text begin (d) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a variable rate, the office may agree to pay sums equal to interest at a fixed rate
or at a different variable rate determined in accordance with a formula set out in the
agreement on an amount not exceeding the outstanding principal amount of the bonds or
notes at the time of payment in exchange for an agreement by the third party to pay sums
equal to interest on a like amount at a variable rate determined according to a formula
set out in the agreement.
new text end

new text begin (e) With respect to bonds or notes outstanding or proposed to be issued bearing
interest at a fixed rate or rates, the office may agree to pay sums equal to interest at a
variable rate determined in accordance with a formula set out in the agreement on an
amount not exceeding the outstanding principal amount of the bonds or notes at the time of
payment in exchange for an agreement by the third party to pay sums equal to interest on a
like amount at a fixed rate or rates determined according to a formula set in the agreement.
new text end

new text begin (f) Subject to any applicable covenants of the office, payments required to be made
by the office under the agreement, including termination payments, may be made from
amounts pledged or available to pay debt service on the bonds or notes with respect to
which the agreement was made or from assets of the loan capital fund of the office.
The office may issue bonds or notes to provide for any payments, including, without
limitation, a termination payment due or to become due under an agreement authorized
under this section.
new text end

Sec. 23.

Minnesota Statutes 2006, section 136A.17, subdivision 1, is amended to read:

Subdivision 1.

Eligibility.

A student is eligible to apply for a loan under sections
136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1701 new text end if the office finds that the student is an eligible student
as defined in those sections and is eligible for a loan under federal laws and regulations
governing the federal guaranteed student loan programs.

Sec. 24.

Minnesota Statutes 2006, section 136A.1701, subdivision 1, is amended to
read:

Subdivision 1.

Establishment of program.

The Minnesota Office of Higher
Education may provide for programs of loans which may be made in lieu of or in addition
to loans authorized under sections 136A.15 to and applicable
provisions of federal law as provided in this section.

Sec. 25.

Minnesota Statutes 2006, section 136A.1701, subdivision 2, is amended to
read:

Subd. 2.

Purpose of program.

The purpose of the loan programs under this section
is to provide financial assistance for the postsecondary education of students who are
eligible students whether or not such students qualify for a loan or loans under other
provisions of sections 136A.15 to .

Loans granted to students may be used solely for educational purposes.

Sec. 26.

Minnesota Statutes 2006, section 136A.1701, subdivision 5, is amended to
read:

Subd. 5.

Maximum loans for students.

Loans made under this section or sections
136A.15 to deleted text begin 136A.1702 deleted text end new text begin 136A.1701 new text end to an individual eligible student for vocational study
may be made for a maximum of three academic years or their equivalent and loans made
to any other individual eligible student may be made for a maximum of eight academic
years or their equivalent.

Sec. 27.

Minnesota Statutes 2006, section 136A.233, subdivision 3, is amended to read:

Subd. 3.

Payments.

Work-study payments shall be made to eligible students by
postsecondary institutions as provided in this subdivision.

(a) Students shall be selected for participation in the program by the postsecondary
institution on the basis of student financial need.

(b) In selecting students for participation, priority must be given to students enrolled
for at least 12 credits. new text begin In each academic year, a student may be awarded work-study
payments for one period of nonenrollment or less than half-time enrollment if the student
will enroll on at least a half-time basis during the following academic term.
new text end

(c) Students will be paid for hours actually worked and the maximum hourly rate
of pay shall not exceed the maximum hourly rate of pay permitted under the federal
college work-study program.

(d) Minimum pay rates will be determined by an applicable federal or state law.

(e) The office shall annually establish a minimum percentage rate of student
compensation to be paid by an eligible employer.

(f) Each postsecondary institution receiving money for state work-study grants
shall make a reasonable effort to place work-study students in employment with eligible
employers outside the institution. However, a public employer other than the institution
may not terminate, lay off, or reduce the working hours of a permanent employee for the
purpose of hiring a work-study student, or replace a permanent employee who is on layoff
from the same or substantially the same job by hiring a work-study student.

(g) The percent of the institution's work-study allocation provided to graduate
students shall not exceed the percent of graduate student enrollment at the participating
institution.

(h) An institution may use up to 30 percent of its allocation for student internships
with private, for-profit employers.

Sec. 28.

Minnesota Statutes 2006, section 136A.861, subdivision 1, is amended to read:

Subdivision 1.

Grants.

The director of the Minnesota Office of Higher Education
shall award grants to foster postsecondary attendance new text begin and retention new text end by providing outreach
services to historically underserved students in grades six through 12 new text begin and historically
underrepresented college students new text end . Grants must be awarded to programs that provide
precollege services, including, but not limited to:

(1) academic counseling;

(2) mentoring;

(3) fostering and improving parental involvement in planning for and facilitating a
college education;

(4) services for students with English as a second language;

(5) academic enrichment activities;

(6) tutoring;

(7) career awareness and exploration;

(8) orientation to college life;

(9) assistance with high school course selection and information about college
admission requirements; and

(10) financial aid counseling.

Grants shall be awarded to postsecondary institutions, professional organizations,
community-based organizations, or others deemed appropriate by the director.

Grants shall be awarded for one year and may be renewed for a second year with
documentation to the Minnesota Office of Higher Education of successful program
outcomes.

Sec. 29.

Minnesota Statutes 2006, section 136A.861, subdivision 2, is amended to read:

Subd. 2.

Eligible students.

Eligible students include students in grades six through
12 who meet one or more of the following criteria:

(1) are counted under section 1124(c) of the Elementary and Secondary Education
Act of 1965 (Title I);

(2) are eligible for free or reduced-price lunch under the National School Lunch Act;

(3) receive assistance under the Temporary Assistance for Needy Families Law (Title
I of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996); or

(4) are a member of a group traditionally underrepresented in higher education.

new text begin Eligible undergraduate students include those who met the student eligibility criteria
as 6th through 12th graders.
new text end

Sec. 30.

Minnesota Statutes 2006, section 136A.861, subdivision 3, is amended to read:

Subd. 3.

Application process.

The director of the Minnesota Office of Higher
Education shall develop a grant application process. The director shall attempt to support
projects in a manner that ensures that eligible students throughout the state have access
to deleted text begin precollege deleted text end new text begin program new text end services.

The grant application must include, at a minimum, the following information:

(1) a description of the characteristics of the students to be served reflective of the
need for services listed in subdivision 1;

(2) a description of the services to be provided and a timeline for implementation of
the activities;

(3) a description of how the services provided will foster postsecondary attendance new text begin
and support postsecondary retention new text end ;

(4) a description of how the services will be evaluated to determine whether the
program goals were met; and

(5) other information as identified by the director.

Grant recipients must specify both program and student outcome goals, and performance
measures for each goal.

Sec. 31.

Minnesota Statutes 2006, section 136A.861, subdivision 6, is amended to read:

Subd. 6.

Program evaluation.

Each grant recipient must annually submit a report
to the Minnesota Office of Higher Education delineating its program and student outcome
goals, and activities implemented to achieve the stated outcomes. The goals must be
clearly stated and measurable. Grant recipients are required to collect, analyze, and report
on participation and outcome data that enable the office to verify that the program goals
were met. The office shall maintain:

(1) information about successful precollege program new text begin and undergraduate student
retention program new text end activities for dissemination to individuals throughout the state interested
in adopting or replicating successful program practices; and

(2) data on the success of the funded projects in increasing the high school
graduation deleted text begin and deleted text end new text begin , new text end college participation new text begin , and college graduation new text end rates of students served
by the grant recipients. The office may convene meetings of the grant recipients, as
needed, to discuss issues pertaining to the implementation of precollege services new text begin and
undergraduate retention programs new text end .

Sec. 32.

Minnesota Statutes 2006, section 136G.11, subdivision 5, is amended to read:

Subd. 5.

Amount of matching grant.

The amount of the matching grant for a
beneficiary equals:

(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum
of the contributions made to the beneficiary's account during the calendar year, not to
exceed deleted text begin $300 deleted text end new text begin $400 new text end ; and

(2) if the beneficiary's family income is more than $50,000 but not more than
$80,000, deleted text begin five deleted text end new text begin ten new text end percent of the sum of the contributions made to the beneficiary's account
during the calendar year, not to exceed deleted text begin $300 deleted text end new text begin $400 new text end .

Sec. 33. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 135A.01; 135A.031, subdivisions 1, 2, 3, 4, 5, and
6; 135A.032; 135A.033; 136A.07; 136A.08, subdivision 8; and 136A.1702, new text end new text begin are repealed.
new text end

ARTICLE 3

ACHIEVE SCHOLARSHIP

Section 1.

new text begin [136A.127] ACADEMIC COMPETITIVENESS HIGHLIGHTING
INDIVIDUAL EXCELLENCE AND VALUING EDUCATION SCHOLARSHIP
PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The academic competitiveness highlighting
individual excellence and valuing education (ACHIEVE) scholarship program is
established.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of ACHIEVE scholarships is to reward Minnesota
students for taking rigorous courses in high school.
new text end

new text begin Subd. 3. new text end

new text begin Program goal. new text end

new text begin The goal of the program is to encourage more low- and
moderate-income Minnesota students to take rigorous college-level academic courses in
high school and provide them with resources to help pay for postsecondary education.
Students who take these courses are more likely to attend and graduate from postsecondary
institutions.
new text end

new text begin Subd. 4. new text end

new text begin Definition; qualifying course. new text end

new text begin For the purposes of this section, a
"qualifying course" means a course that is equivalent to at least one course credit in high
school, as defined in section 120B.024, and that is one of the following:
new text end

new text begin (1) advanced placement courses or international baccalaureate courses under section
120B.13;
new text end

new text begin (2) for students who took an advanced placement or international baccalaureate
examination but not a high school course, the number of courses equivalent to credits
earned by taking advanced placement or international baccalaureate examinations under
section 120B.13, subdivision 3a;
new text end

new text begin (3) postsecondary enrollment options courses and programs under section 124D.09;
new text end

new text begin (4) concurrent enrollment courses under section 124D.09, subdivision 10;
new text end

new text begin (5) college in the schools courses under section 124D.09, subdivision 10;
new text end

new text begin (6) the number of courses equivalent to credits earned via the college-level
examination program under section 120B.131; or
new text end

new text begin (7) the number of courses equivalent to credits earned via work-based learning
programs under section 124D.4531, 124D.46, 124D.47, or 124D.49.
new text end

new text begin The courses count toward the scholarship whether or not the postsecondary
institution grants postsecondary credit for them.
new text end

new text begin Subd. 5. new text end

new text begin Documentation of qualifying courses. new text end

new text begin The student shall request a
transcript from the high school. The high school shall provide a transcript to the Office
of Higher Education documenting the qualifying courses the student took. High schools
shall certify on the transcript which courses on the transcript are qualifying courses and
provide a total number of qualifying courses for each student.
new text end

new text begin Subd. 6. new text end

new text begin Review panel. new text end

new text begin The director of the office shall appoint a review panel to
monitor the implementation of ACHIEVE scholarships. The review panel may assist the
director in examining appeals of whether high school courses qualify for the scholarships.
The review panel shall include representatives of public and private high schools and
postsecondary institutions. This subdivision expires June 30, 2008.
new text end

new text begin Subd. 7. new text end

new text begin Student eligibility. new text end

new text begin To be eligible to receive a scholarship under this
section, in addition to the requirements listed under section 136A.121, a student must:
new text end

new text begin (1) take qualifying courses or earn credits equivalent to courses in grades 9 through
12 in a Minnesota high school, or be home-schooled pursuant to section 120A.22, and
graduate from high school;
new text end

new text begin (2) have a family adjusted gross income in the last complete calendar year prior to
the academic year of postsecondary attendance of less than $100,000;
new text end

new text begin (3) be a United States citizen or eligible noncitizen as defined in section 484 of the
Higher Education Act, United States Code, title 20, sections 1091 et seq., as amended, and
Code of Federal Regulations, title 34, section 668.33; and
new text end

new text begin (4) be a Minnesota resident as defined in section 136A.101, subdivision 8.
new text end

new text begin Subd. 8. new text end

new text begin Administration. new text end

new text begin ACHIEVE scholarships shall be administered by the
Minnesota Office of Higher Education.
new text end

new text begin Subd. 9. new text end

new text begin Documentation of qualifying family income. new text end

new text begin The parents of the students
must document a qualifying family income by declaration on the application stating that
they meet the income requirement. The Office of Higher Education or the postsecondary
institution may request copies of federal individual income tax returns as documentation.
new text end

new text begin Subd. 10. new text end

new text begin Scholarships awards. new text end

new text begin Minnesota ACHIEVE scholarships shall consist of
$314 per qualifying course taken while the student attended a Minnesota high school. The
scholarships may be used to pay for qualifying expenses at eligible institutions.
new text end

new text begin Subd. 11. new text end

new text begin Qualifying expenses. new text end

new text begin Qualifying expenses are components included
under the cost of attendance used for federal student financial aid programs as defined
in section 472 of the Higher Education Act, United States Code, title 20, sections 1091
et seq., as amended.
new text end

new text begin Subd. 12. new text end

new text begin Eligible institutions. new text end

new text begin Eligible institutions are MnSCU institutions,
University of Minnesota campuses, Minnesota not-for-profit institutions, and Minnesota
degree-granting for-profit institutions. Private institutions must either be accredited
or registered or licensed with the Office of Higher Education and participating in the
Minnesota state grant program.
new text end

new text begin Subd. 13. new text end

new text begin Availability of scholarship funds. new text end

new text begin Each scholarship is available for
up to four academic years immediately following high school graduation. After that
date, the scholarship is no longer available to the student. The office must certify to the
commissioner of finance by October 1 of each year the amounts to be canceled from
scholarship eligibility that has expired.
new text end

new text begin Subd. 14. new text end

new text begin Disbursement of scholarships. new text end

new text begin The office shall provide payment to the
postsecondary institution on behalf of the student.
new text end

new text begin Subd. 15. new text end

new text begin Authority to adopt rules. new text end

new text begin The Minnesota Office of Higher Education
may adopt rules to administer the program.
new text end

ARTICLE 4

MINNESOTA GI BILL

Section 1.

Minnesota Statutes 2006, section 136A.01, subdivision 2, is amended to
read:

Subd. 2.

Responsibilities.

The Minnesota Office of Higher Education is responsible
for:

(1) necessary state level administration of financial aid new text begin and Minnesota GI Bill
new text end programs, including accounting, auditing, and disbursing state and federal financial aid
funds, and reporting on financial aid programs to the governor and the legislature;

(2) approval, registration, licensing, and financial aid eligibility of private collegiate
and career schools, under sections 136A.61 to 136A.71 and chapter 141;

(3) administering the Learning Network of Minnesota;

(4) negotiating and administering reciprocity agreements;

(5) publishing and distributing financial aid information and materials, and other
information and materials under section 136A.87, to students and parents;

(6) collecting and maintaining student enrollment and financial aid data and
reporting data on students and postsecondary institutions to develop and implement a
process to measure and report on the effectiveness of postsecondary institutions;

(7) administering the federal programs that affect students and institutions on a
statewide basis; and

(8) prescribing policies, procedures, and rules under chapter 14 necessary to
administer the programs under its supervision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to
qualifying coursework taken on or after that date.
new text end

Sec. 2.

new text begin [197.791] MINNESOTA GI BILL PROGRAM.
new text end

new text begin Subdivision 1. new text end

new text begin Policy. new text end

new text begin It is the policy of the state of Minnesota to provide
postsecondary educational assistance to Minnesota veterans who have provided honorable
service to this state and nation as members of the United States armed forces, whether
in peacetime or in war, and to the spouses and children of Minnesota veterans who have
become severely disabled or deceased during or as the direct result of military service.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) The definitions in this subdivision apply to this section.
new text end

new text begin (b) "Commissioner" means the commissioner of veterans affairs, unless otherwise
specified.
new text end

new text begin (c) "Cost of attendance" for both undergraduate and graduate students has the
meaning given in section 136A.121, subdivision 6, multiplied by a factor of 1.2.
new text end

new text begin (d) "Child" means a natural or adopted child of a person described in subdivision 5,
paragraph (a), clause (1), item (i) or (ii).
new text end

new text begin (e) "Director" means the director of the Minnesota Office of Higher Education.
new text end

new text begin (f) "Eligible institution" has the meaning given in section 136A.101, subdivision 4.
new text end

new text begin (g) "Eligible student" means a person who:
new text end

new text begin (1) if the student is an undergraduate student, has applied for the federal Pell Grant
and the Minnesota State Grant;
new text end

new text begin (2) is maintaining satisfactory academic progress as defined by the institution for
students participating in federal Title IV programs;
new text end

new text begin (3) is enrolled in an education program leading to a certificate, diploma, or degree
at an eligible institution;
new text end

new text begin (4) is enrolled at least half time as defined in section 136A.101, subdivision 7b, if an
undergraduate student, or is enrolled for four credits or more if a graduate student; and
new text end

new text begin (5) has applied for educational assistance under the Minnesota GI Bill program prior
to the end of the academic term for which the assistance is being requested.
new text end

new text begin (h) "Program" means the Minnesota GI Bill program established in this section,
unless otherwise specified.
new text end

new text begin (i) "Veteran" has the meaning given in section 197.447, and also includes a service
member who has fulfilled the requirements for being a veteran but is still serving actively
in the United States armed forces.
new text end

new text begin Subd. 3. new text end

new text begin Program established. new text end

new text begin There is established a program to provide
postsecondary educational assistance to eligible Minnesota veterans and to the children
and spouses of deceased and severely disabled Minnesota veterans. This program may be
cited as the "Minnesota GI Bill program."
new text end

new text begin The director, in consultation with the commissioner and in cooperation with
eligible postsecondary educational institutions, shall expend a biennial appropriation
for the purpose of providing postsecondary educational assistance to eligible persons
in accordance with this program. Each public postsecondary educational institution in
the state must participate in the program and each private postsecondary educational
institution in the state is encouraged to participate in the program. Any participating
private institution may suspend or terminate its participation in the program at the end
of any semester or other academic term.
new text end

new text begin Subd. 4. new text end

new text begin Duties; responsibilities. new text end

new text begin (a) The director, in consultation with the
commissioner, shall establish policies and procedures including, but not limited to,
procedures for student application record keeping, information sharing, payment to
participating eligible institutions, and other procedures the director considers appropriate
and necessary for effective and efficient administration of the program established in
this section.
new text end

new text begin (b) The director, in consultation with the commissioner, may delegate part or
all of the administrative procedures for the program to responsible representatives of
participating eligible institutions.
new text end

new text begin Subd. 5. new text end

new text begin Eligibility. new text end

new text begin (a) A person is eligible for educational assistance under this
section if:
new text end

new text begin (1) the person is:
new text end

new text begin (i) a veteran who is serving or has served honorably in any branch or unit of the
United States armed forces at any time on or after August 2, 1990;
new text end

new text begin (ii) a nonveteran who has served honorably for a total of sixteen years or more
cumulatively as a member of the Minnesota national guard or any other active or reserve
component of the United States armed forces, and any part of that service occurred on
or after August 2, 1990;
new text end

new text begin (iii) the surviving spouse or child of a person described in item (i) or (ii) who has
died as a direct result of that military service; or
new text end

new text begin (iv) the spouse or child of a person described in item (i) or (ii) who has a total
and permanent service-connected disability as rated by the United States veterans
administration;
new text end

new text begin (2) the person described in clause (1), item (i) or (ii) had Minnesota as the person's
state of residence at the time of the person's initial enlistment or any reenlistment in
the United States armed forces;
new text end

new text begin (3) the person receiving the educational assistance is a Minnesota resident, as
defined in section 136A.101, subdivision 8; and
new text end

new text begin (4) the person receiving the educational assistance is an eligible student.
new text end

new text begin (b) A person's eligibility terminates when the person becomes eligible for benefits
under section 135A.52.
new text end

new text begin (c) As proof of honorable service and disability or death status for a veteran or
service member, the director, by policy and in consultation with the commissioner, may
require official documentation, including the person's federal form DD-214 or other official
military discharge papers, correspondence from the United States veterans administration,
birth certificate, marriage certificate, proof of enrollment at an eligible institution, signed
affidavits, proof of residency, proof of identity, or any other official documentation the
director considers necessary to determine an applicant's eligibility status.
new text end

new text begin (d) The director, in consultation with the commissioner, may deny eligibility or
terminate benefits under this section to any person the director considers to have not
provided sufficient proof of eligibility for the program. An applicant may appeal the
director's eligibility determination in writing to the director at any time. The director must
rule on any application or appeal within 30 days of receipt of all documentation that the
director requires. Upon receiving an application with insufficient documentation, the
director must notify the applicant within 30 days of receipt of the application that the
application is being suspended pending receipt by the director of sufficient documentation
from the applicant. The decision of the director regarding an appeal is final. However, an
applicant whose appeal of an eligibility determination has been rejected by the director
may submit an additional appeal of that determination in writing to the director at any
time that the applicant is able to provide substantively significant additional information
relating to the person's eligibility for the program. An approval of an applicant's eligibility
by the director following an appeal by the applicant is not retroactively effective beyond
the later of one year previously or the semester of the person's original application.
new text end

new text begin Subd. 6. new text end

new text begin Benefit entitlement amount. new text end

new text begin (a) On approval by the director of an
applicant's eligibility for the program, the applicant is entitled to educational assistance
under the program, for use at any time according to program rules at any eligible
postsecondary educational institution in the state. Eligibility for the program terminates
upon exhaustion of a person's benefits as specified in paragraph (c).
new text end

new text begin (b) The amount of educational assistance in any semester or term for an eligible
person must be determined by subtracting from the eligible person's cost of attendance
at that eligible public institution, or in the case of an eligible private institution the cost
of attendance for a comparable program at the Twin Cities campus of the University of
Minnesota, the amount received in that semester or term by that person from:
new text end

new text begin (1) the federal Pell Grant;
new text end

new text begin (2) the state grant program; and
new text end

new text begin (3) any federal military or veterans educational benefits, including, but not limited
to, the Montgomery GI Bill, GI Bill Kicker, the federal tuition assistance program,
vocational rehabilitation benefits, and any other federal benefits associated with the
person's status as a veteran, except veterans disability payments from the United States
veterans administration.
new text end

new text begin (c) The amount of education assistance for any eligible person must not exceed any
of the following amounts:
new text end

new text begin (1) $1,000 per semester or term of enrollment;
new text end

new text begin (2) $3,000 per state fiscal year; and
new text end

new text begin (3) $10,000 total.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007, and applies to
qualifying coursework taken on or after that date.
new text end

ARTICLE 5

PRIVATE INSTITUTIONS

Section 1.

new text begin [136A.615] CITATION.
new text end

new text begin Sections 136A.615 to 136A.71 may be cited as the "Minnesota Private and
Out-of-State Public Postsecondary Education Act."
new text end

Sec. 2.

Minnesota Statutes 2006, section 136A.62, subdivision 3, is amended to read:

Subd. 3.

School.

"School" means new text begin :
new text end

new text begin (1) new text end any individual, partnership, company, firm, society, trust, association,
corporation, or any combination thereof, which deleted text begin (a) deleted text end new text begin (i) new text end is, owns, or operates a private deleted text begin ,
nonprofit deleted text end postsecondary education institution; deleted text begin (b) deleted text end new text begin (ii) new text end provides a postsecondary
instructional program or course leading to a degree whether or not for profit; deleted text begin (c) deleted text end new text begin or (iii) new text end
is, owns, or operates a private, postsecondary education institution which uses the term
"college", "academy", "institute" or "university" in its name; deleted text begin or (d) operates for profit and
provides programs or courses which are intended to allow an individual to fulfill in part
or totally the requirements necessary to maintain a license to practice an occupation.
School shall also mean
deleted text end

new text begin (2) new text end any public postsecondary educational institution located in another state or
country which offers or makes available to a Minnesota resident any course, program or
educational activity which does not require the leaving of the state for its completion deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) any individual, entity, or postsecondary institution located in another state
that contracts with any school located within the state of Minnesota for the purpose of
providing educational programs, training programs, or awarding postsecondary credits
or continuing education credits to Minnesota residents that may be applied to a degree
program.
new text end

Sec. 3.

Minnesota Statutes 2006, section 136A.63, is amended to read:

136A.63 REGISTRATION.

All schools located within Minnesota and all schools located outside Minnesota
which offer new text begin degree new text end programs or courses within Minnesota shall register annually with
the office.

Sec. 4.

Minnesota Statutes 2006, section 136A.65, subdivision 1, is amended to read:

Subdivision 1.

Prohibition.

No school subject to registration shall grant a degree
unless such degree new text begin and its underlying curriculum, new text end is approved by the office, nor shall
any school subject to registration use the name "college," "academy," "institute" or
"university" in its name without approval by the office.

Sec. 5.

Minnesota Statutes 2006, section 136A.65, is amended by adding a subdivision
to read:

new text begin Subd. 1a. new text end

new text begin Accreditation; requirement. new text end

new text begin No school shall be registered or authorized
to offer any degree at any level unless such school is accredited by an agency recognized
by the United States Department of Education for purposes of eligibility to participate in
federal financial aid programs, Title IV.
new text end

Sec. 6.

Minnesota Statutes 2006, section 136A.653, is amended to read:

136A.653 EXEMPTIONS.

Subdivision 1.

Exemption.

A school that is subject to licensing by the office under
chapter 141, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71.
The determination of the office as to whether a particular school is subject to regulation
under chapter 141 is final for the purposes of this exemption.

Subd. 2.

Educational program; nonprofit organizations.

Educational programs
which are sponsored by a bona fide and nonprofit trade, labor, business, professional
or fraternal organization, which programs are conducted solely for that organization's
membership or for the members of the particular industries or professions served by that
organization, and which are not available to the public on a fee basis, are exempted from
the provisions of sections to 136A.71.

Subd. 3.

Educational program; business firms.

Educational programs which are
sponsored by a business firm for the training of its employees or the employees of other
business firms with which it has contracted to provide educational services at no cost to the
employees are exempted from the provisions of sections to 136A.71.

Subd. 4.

Voluntary submission.

Any school or program exempted from the
provisions of sections deleted text begin 136A.61 deleted text end new text begin 136A.615 new text end to 136A.71 by the provisions of this section
may voluntarily submit to the provisions of those sections.

Sec. 7.

Minnesota Statutes 2006, section 136A.657, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Any school or any department or branch of a school (a)
which is substantially owned, operated or supported by a bona fide church or religious
organization; (b) whose programs are primarily designed for, aimed at and attended by
persons who sincerely hold or seek to learn the particular religious faith or beliefs of that
church or religious organization; and (c) whose programs are primarily intended to prepare
its students to become ministers of, to enter into some other vocation closely related to, or
to conduct their lives in consonance with, the particular faith of that church or religious
organization, is exempt from the provisions of sections new text begin 136A.615 new text end to 136A.71.

Sec. 8.

Minnesota Statutes 2006, section 136A.657, subdivision 2, is amended to read:

Subd. 2.

Limitation.

This exemption shall not extend to any school or to
any department or branch of a school new text begin , or program of such school, new text end which through
advertisements or solicitations represents to any students or prospective students that
the school, its aims, goals, missions or purposes or its programs are different from
those described in subdivision 1. This exemption shall not extend to any school which
represents to any student or prospective student that the major purpose of its programs
is to prepare the student for a vocation not closely related to that particular religious
faith, or to provide the student with a general educational program recognized by other
schools or the broader educational, business or social community as being substantially
equivalent to the educational programs offered by schools or departments or branches of
schools which are not exempt from sections new text begin 136A.615 new text end to 136A.71, and rules
adopted pursuant thereto.

Sec. 9.

Minnesota Statutes 2006, section 136A.657, subdivision 3, is amended to read:

Subd. 3.

Scope.

Nothing in sections deleted text begin 136A.61 deleted text end new text begin 136A.615 new text end to 136A.71, or the rules
adopted pursuant thereto, shall be interpreted as permitting the office to determine the
truth or falsity of any particular set of religious beliefs.

Sec. 10.

Minnesota Statutes 2006, section 136A.657, is amended by adding a
subdivision to read:

new text begin Subd. 4. new text end

new text begin Statement required; religious nature. new text end

new text begin Any degree awarded upon
completion of a religiously exempt program shall include descriptive language to make
the religious nature of the award clear.
new text end

Sec. 11.

Minnesota Statutes 2006, section 136A.66, is amended to read:

136A.66 LIST.

The office shall maintain a list of deleted text begin schools deleted text end new text begin registered institutions new text end authorized to grant
degrees and schools authorized to use the name "college," "academy," "institute" or
"university," and shall make such list available to the public.

Sec. 12.

Minnesota Statutes 2006, section 136A.67, is amended to read:

136A.67 UNAUTHORIZED REPRESENTATIONS.

No school and none of its officials or employees shall advertise or represent in any
manner that such school is approved or accredited by the office or state of Minnesota
except that any school which is duly registered with the office, or any of its officials or
employees, may represent that the school is registered with the office deleted text begin . deleted text end new text begin using one of the
following statements:
new text end

new text begin "(Name of school) is registered as a private institution with the Minnesota Office of
Higher Education. Registration is not an endorsement of the institution. Credits earned at
the institution may not transfer to all other institutions. The educational programs may not
meet the needs of every student or employer."; or
new text end

new text begin "(Name of School) is registered as a private institution by the Minnesota Office of Higher
Education pursuant to Minnesota Statutes, sections 136A.615 to 136A.71."
new text end

Sec. 13.

Minnesota Statutes 2006, section 136A.68, is amended to read:

136A.68 RECORDS.

deleted text begin After August 1, 1975, all schools located in this state must maintain permanent
records of all students enrolled therein at any time. The office may require schools to
provide a plan acceptable to the office for preserving all such records for at least ten years.
The office may require that such plan include the filing of a continuous surety bond or a
deposit of funds in trust in an amount not to exceed $20,000 for the purpose of preserving
records after such school ceases to exist. deleted text end new text begin A registered school shall maintain a permanent
record for each student for 50 years from the last date of the student's attendance. A
registered school offering distance instruction to a student located in Minnesota shall
maintain a permanent record for each Minnesota student for 50 years from the last date of
the student's attendance. Records include a student's academic transcript, documents, and
files containing student data about academic credits earned, courses completed, grades
awarded, degrees awarded, and periods of attendance. To preserve permanent records, a
school shall submit a plan that meets the following requirements:
new text end

new text begin (1) at least one copy of the records must be held in a secure, fireproof depository or
duplicate records must be maintained off site in a secure location and manner approved
by the office;
new text end

new text begin (2) an appropriate official must be designated to provide a student with copies of
records or a transcript upon request;
new text end

new text begin (3) an alternative method approved by the office, of complying with clauses (1) and
(2) must be established if the school ceases to exist; and
new text end

new text begin (4) a continuous surety bond must be filed with the office in an amount not to exceed
$20,000 if the school has no binding agreement approved by the office for preserving
student records. The bond shall run to the state of Minnesota.
new text end

Sec. 14.

Minnesota Statutes 2006, section 136A.69, is amended to read:

136A.69 FEES.

new text begin Subdivision 1. new text end

new text begin Registration fees. new text end

The office shall collect reasonable registration
fees that are sufficient to recover, but do not exceed, its costs of administering the
registration program. The office shall charge $1,100 for initial registration fees and $950
for annual renewal fees.

new text begin Subd. 2. new text end

new text begin Degree level addition fee. new text end

new text begin The office processing fee for adding a degree
level to an existing program is $2,000 per program.
new text end

new text begin Subd. 3. new text end

new text begin Program addition fee. new text end

new text begin The office processing fee for adding a program
that represents a significant departure in the objectives, content, or method of delivery of
programs that are currently offered by the school is $500 per program.
new text end

new text begin Subd. 4. new text end

new text begin Visit or consulting fee. new text end

new text begin If the office determines that a fact-finding visit
or outside consultant is necessary to review or evaluate any new or revised program, the
office shall be reimbursed for the expenses incurred related to the review as follows:
new text end

new text begin (1) $300 for the team base fee or for a paper review conducted by a consultant if the
office determines that a fact-finding visit is not required;
new text end

new text begin (2) $300 for each day or part thereof on site per team member; and
new text end

new text begin (3) the actual cost of customary meals, lodging, and related travel expenses incurred
by team members.
new text end

new text begin Subd. 5. new text end

new text begin Modification fee. new text end

new text begin The fee for modification of any existing program is
$100 and is due if there is:
new text end

new text begin (1) an increase or decrease of 25 percent or more, from the original date of program
approval, in clock hours, credit hours, or calendar length of an existing program;
new text end

new text begin (2) a change in academic measurement from clock hours to credit hours or vice
versa; or
new text end

new text begin (3) an addition or alteration of courses that represent a 25 percent change or more in
the objectives, content, or methods of delivery.
new text end

Sec. 15.

Minnesota Statutes 2006, section 136A.71, is amended to read:

136A.71 INJUNCTION.

Upon application of the attorney general the district courts shall have jurisdiction to
enjoin any violations of sections new text begin 136A.615 new text end to 136A.71.

Sec. 16.

new text begin [136A.705] PENALTY.
new text end

new text begin Violation of a provision of this chapter shall be a misdemeanor. Each day's failure
to comply with this chapter shall be a separate violation. The office shall adopt rules
establishing a list of civil penalties and the fine associated with each violation. Fines for
violations shall not exceed $500 per day per violation.
new text end

Sec. 17.

Minnesota Statutes 2006, section 141.21, subdivision 1a, is amended to read:

Subd. 1a.

Office new text begin of Higher Education; office new text end .

"Office new text begin of Higher Education new text end " new text begin or
"office" new text end means the Minnesota Office of Higher Education.

Sec. 18.

Minnesota Statutes 2006, section 141.21, subdivision 5, is amended to read:

Subd. 5.

School.

"School" means any person, within or outside the state, who
maintains, advertises, solicits, or conducts any program deleted text begin for profit deleted text end at any level other than
baccalaureate or graduate programs, and is not specifically exempted by sections 141.21
to 141.35. new text begin School includes any entity within or outside the state, which: maintains,
advertises, solicits for, or conducts any program at any level other than degree granting
and uses the term, "college," "institute," "academy," or "university" in its name.
new text end

Sec. 19.

Minnesota Statutes 2006, section 141.25, subdivision 1, is amended to read:

Subdivision 1.

Required.

A school must not maintain, advertise, solicit for,
new text begin administer, new text end or conduct any program in Minnesota without first obtaining a license from
the office.

Sec. 20.

Minnesota Statutes 2006, section 141.25, subdivision 5, is amended to read:

Subd. 5.

Bond.

(a) No license shall be issued to any school which maintains,
conducts, solicits for, or advertises within the state of Minnesota any program, unless the
applicant files with the office a continuous corporate surety bond written by a company
authorized to do business in Minnesota conditioned upon the faithful performance of all
contracts and agreements with students made by the applicant.

(b) The amount of the surety bond shall be ten percent of the preceding year's gross
income from student tuition, fees, and other required institutional charges, but in no event
less than $10,000 nor greater than $250,000, except that a school may deposit a greater
amount at its own discretion. A school in each annual application for licensure must
compute the amount of the surety bond and verify that the amount of the surety bond
complies with this subdivision, unless the school maintains a surety bond equal to at least
$250,000. A school that operates at two or more locations may combine gross income
from student tuition, fees, and other required institutional charges for all locations for the
purpose of determining the annual surety bond requirement. The gross tuition and fees
used to determine the amount of the surety bond required for a school having a license for
the sole purpose of recruiting students in Minnesota shall be only that paid to the school
by the students recruited from Minnesota.

(c) The bond shall run to the state of Minnesota and to any person who may have a
cause of action against the applicant arising at any time after the bond is filed and before it
is canceled for breach of any contract or agreement made by the applicant with any student.
The aggregate liability of the surety for all breaches of the conditions of the bond shall not
exceed the principal sum deposited by the school under paragraph (b). The surety of any
bond may cancel it upon giving 60 days' notice in writing to the office and shall be relieved
of liability for any breach of condition occurring after the effective date of cancellation.

(d) In lieu of bond, the applicant may deposit with the commissioner of finance a
sum equal to the amount of the required surety bond in cash, or securities as may be
legally purchased by savings banks or for trust funds in an aggregate market value equal
to the amount of the required surety bond.

(e) Failure of a school to post and maintain the required surety bond or deposit under
paragraph (d) deleted text begin may deleted text end new text begin shall new text end result in denial, suspension, or revocation of the school's license.

Sec. 21.

Minnesota Statutes 2006, section 141.25, subdivision 7, is amended to read:

Subd. 7.

Minimum standards.

A license shall be issued if the office first
determines:

(1) that the applicant has a sound financial condition with sufficient resources
available to:

(i) meet the school's financial obligations;

(ii) refund all tuition and other charges, within a reasonable period of time, in the
event of dissolution of the school or in the event of any justifiable claims for refund against
the school by the student body;

(iii) provide adequate service to its students and prospective students; and

(iv) maintain and support the school;

(2) that the applicant has satisfactory facilities with sufficient tools and equipment
and the necessary number of work stations to prepare adequately the students currently
enrolled, and those proposed to be enrolled;

(3) that the applicant employs a sufficient number of qualified teaching personnel to
provide the educational programs contemplated;

(4) that the school has an organizational framework with administrative and
instructional personnel to provide the programs and services it intends to offer;

(5) that the premises and conditions under which the students work and study are
sanitary, healthful, and safe, according to modern standards;

(6) that the quality and content of each occupational course or program of study
provides education and adequate preparation to enrolled students for entry level positions
in the occupation for which prepared;

(7) that the living quarters which are owned, maintained, new text begin recommended, new text end or approved
by the applicant for students are sanitary and safe;

(8) that the contract or enrollment agreement used by the school complies with
the provisions in section 141.265;

(9) that contracts and agreements do not contain a wage assignment provision or a
confession of judgment clause; and

(10) that there has been no adjudication of fraud or misrepresentation in any
criminal, civil, or administrative proceeding in any jurisdiction against the school or its
owner, officers, agents, or sponsoring organization.

Sec. 22.

Minnesota Statutes 2006, section 141.25, subdivision 9, is amended to read:

Subd. 9.

Catalog, brochure, or electronic display.

Before a license is issued to
a school, the school shall furnish to the office a catalog, brochure, or electronic display
including:

(1) identifying data, such as volume number and date of publication;

(2) name and address of the school and its governing body and officials;

(3) a calendar of the school showing legal holidays, beginning and ending dates of
each course quarter, term, or semester, and other important dates;

(4) the school policy and regulations on enrollment including dates and specific
entrance requirements for each program;

(5) the school policy and regulations about leave, absences, class cuts, make-up
work, tardiness, and interruptions for unsatisfactory attendance;

(6) the school policy and regulations about standards of progress for the student
including the grading system of the school, the minimum grades considered satisfactory,
conditions for interruption for unsatisfactory grades or progress, a description of any
probationary period allowed by the school, and conditions of reentrance for those
dismissed for unsatisfactory progress;

(7) the school policy and regulations about student conduct and conditions for
dismissal for unsatisfactory conduct;

(8) a detailed schedule of fees, charges for tuition, books, supplies, tools, student
activities, laboratory fees, service charges, rentals, deposits, and all other charges;

(9) the school policy and regulations, including an explanation of section 141.271,
about refunding tuition, fees, and other charges if the student does not enter the program,
withdraws from the program, or the program is discontinued;

(10) a description of the available facilities and equipment;

(11) a course outline syllabus for each course offered showing course objectives,
subjects or units in the course, type of work or skill to be learned, and approximate time,
hours, or credits to be spent on each subject or unit;

(12) the school policy and regulations about granting credit for previous education
and preparation;

(13) new text begin a notice to students relating to the transferability of any credits earned at the
school to other institutions;
new text end

new text begin (14) new text end a procedure for investigating and resolving student complaints; and

deleted text begin (14) deleted text end new text begin (15) new text end the name and address of the Minnesota Office of Higher Education.

A school that is exclusively a distance education school is exempt from clauses
(3) and (5).

Sec. 23.

Minnesota Statutes 2006, section 141.25, subdivision 10, is amended to read:

Subd. 10.

Placement records.

(a) Before a license is deleted text begin issued deleted text end new text begin reissued new text end to a school
that offers, advertises or implies a placement service, the school shall file with the office
for the past year and thereafter at reasonable intervals determined by the office, a certified
copy of the school's placement record, containing a list of graduates, a description of their
jobs, names of their employers, and other information as the office may prescribe.

(b) Each school that offers a placement service shall furnish to each prospective
student, new text begin upon request, new text end prior to enrollment, written information concerning the percentage
of the previous year's graduates who were placed in the occupation for which prepared or
in related employment.

Sec. 24.

Minnesota Statutes 2006, section 141.25, subdivision 12, is amended to read:

Subd. 12.

Permanent records.

A school licensed under this chapter and located
in Minnesota shall maintain a permanent record for each student for 50 years from the
last date of the student's attendance. A school licensed under this chapter and offering
distance instruction to a student located in Minnesota shall maintain a permanent record
for each Minnesota student for 50 years from the last date of the student's attendance.
Records include school transcripts, documents, and files containing student data about
academic credits earned, courses completed, grades awarded, degrees awarded, and
periods of attendance. To preserve permanent records, a school shall submit a plan that
meets the following requirements:

(1) at least one copy of the records must be held in a secure, fireproof depository;

(2) an appropriate official must be designated to provide a student with copies of
records or a transcript upon request;

(3) an alternative method, approved by the office, of complying with clauses (1) and
(2) must be established if the school ceases to exist; and

(4) a continuous surety bond must be filed with the office in an amount not to exceed
$20,000 if the school has no binding agreement new text begin approved by the office, new text end for preserving
student records deleted text begin or a trust must be arranged if the school ceases to exist deleted text end . new text begin The bond shall run
to the state of Minnesota.
new text end

Sec. 25.

Minnesota Statutes 2006, section 141.255, subdivision 2, is amended to read:

Subd. 2.

Renewal licensure fee; late fee.

(a) The office processing fee for a
renewal licensure application is:

(1) for a category A school, as determined by the office, the fee is $865 if the school
offers one program or $1,150 if the school offers two or more programs; and

(2) for a category B or C school, as determined by the office, the fee is $430 if the
school offers one program or $575 if the school offers two or more programs.

(b) If a license renewal application is not received by the office by the close of
business at least 60 days before the expiration of the current license, a late fee of $100
per business day new text begin , not to exceed $3,000, new text end shall be assessed.

Sec. 26.

Minnesota Statutes 2006, section 141.265, subdivision 2, is amended to read:

Subd. 2.

Contract information.

A contract or enrollment agreement used by a
school must include at least the following:

(1) the name and address of the school, clearly stated;

(2) a clear and conspicuous disclosure that the agreement is a legally binding
instrument upon written acceptance of the student by the school unless canceled under
section 141.271;

(3) the school's cancellation and refund policy that shall be clearly and conspicuously
entitled "Buyer's Right to Cancel";

(4) a clear statement of total cost of the program including tuition and all other
charges;

(5) the name and description of the program, including the number of hours or
credits of classroom instruction, or distance instruction, that shall be included; and

(6) a clear and conspicuous explanation of the form and means of notice the student
should use in the event the student elects to cancel the contract or sale, the effective
date of cancellation, and the name and address of the seller to which the notice should
be sent or delivered.

new text begin The contract or enrollment agreement must not include a wage assignment provision
or a confession of judgment clause.
new text end

Sec. 27.

Minnesota Statutes 2006, section 141.271, subdivision 10, is amended to read:

Subd. 10.

Cancellation occurrence.

Written notice of cancellation shall take place
on the date the letter of cancellation is postmarked or, in the cases where the notice is hand
carried, it shall occur on the date the notice is delivered to the school. If a student has not
attended new text begin a scheduled class or new text end classes for a period of 21 consecutive days, the student
is considered to have withdrawn from school for all purposes as of the student's last
documented date of attendance.

Sec. 28.

Minnesota Statutes 2006, section 141.271, subdivision 12, is amended to read:

Subd. 12.

Instrument not to be negotiated.

A school shall not negotiate any
promissory instrument received as payment of tuition or other charge prior to completion
of 50 percent of the program deleted text begin . deleted text end new text begin , except that new text end prior to that time, instruments may be transferred
by assignment to purchasers who shall be subject to all defenses available against the
school named as payee.

Sec. 29.

Minnesota Statutes 2006, section 141.28, subdivision 1, is amended to read:

Subdivision 1.

Not to advertise state approval.

Schools, agents of schools, and
solicitors may not advertise or represent in writing or orally that such school is approved
or accredited by the state of Minnesota, except that any school, agent, or solicitor may
advertise that the school and solicitor have been duly licensed by the state using new text begin one of new text end the
following deleted text begin language deleted text end new text begin statements new text end :

"(Name of school) is licensed as a private career school with the Minnesota Office of
Higher Education. Licensure is not an endorsement of the institution. Credits earned at the
institution may not transfer to all other institutions. The educational programs may not
meet the needs of every student or employer." new text begin ; or
new text end

new text begin "(Name of school) is licensed as a private career school by the Minnesota Office of Higher
Education pursuant to Minnesota Statutes, chapter 141."
new text end

Sec. 30.

Minnesota Statutes 2006, section 141.35, is amended to read:

141.35 EXEMPTIONS.

Sections 141.21 to new text begin 141.34 new text end shall not apply to the following:

(1) public postsecondary institutions;

(2) private postsecondary institutions registered under sections new text begin 136A.615 new text end
to 136A.71 that are nonprofit, or that are for profit and registered under sections deleted text begin 136A.61 deleted text end new text begin
136A.615 new text end to 136A.71 as of December 31, 1998, or are approved to offer exclusively
baccalaureate or postbaccalaureate programs;

(3) schools of nursing accredited by the state Board of Nursing or an equivalent
public board of another state or foreign country;

(4) private schools complying with the requirements of section 120A.22, subdivision
4;

(5) courses taught to students in a valid apprenticeship program taught by or
required by a trade union;

(6) schools exclusively engaged in training physically or mentally disabled persons
for the state of Minnesota;

(7) schools licensed by boards authorized under Minnesota law to issue licenses;

(8) schools and educational programs, or training programs, contracted for by
persons, firms, corporations, government agencies, or associations, for the training of their
own employees, for which no fee is charged the employee;

(9) schools engaged exclusively in the teaching of purely avocational, recreational,
or remedial subjects as determined by the office;

deleted text begin (10) driver training schools and instructors as defined in section deleted text begin 171.33, subdivisions
1 and 2 deleted text end ;
deleted text end

deleted text begin (11) deleted text end new text begin (10) new text end classes, courses, or programs conducted by a bona fide trade, professional,
or fraternal organization, solely for that organization's membership;

deleted text begin (12) deleted text end new text begin (11) new text end programs in the fine arts provided by organizations exempt from taxation
under section 290.05 and registered with the attorney general under chapter 309. For
the purposes of this clause, "fine arts" means activities resulting in artistic creation or
artistic performance of works of the imagination which are engaged in for the primary
purpose of creative expression rather than commercial sale or employment. In making
this determination the office may seek the advice and recommendation of the Minnesota
Board of the Arts;

deleted text begin (13) deleted text end new text begin (12) new text end classes, courses, or programs intended to fulfill the continuing education
requirements for licensure or certification in a profession, that have been approved by
a legislatively or judicially established board or agency responsible for regulating the
practice of the profession, and that are offered exclusively to an individual practicing
the profession;

deleted text begin (14) deleted text end new text begin (13) new text end classes, courses, or programs intended to prepare students to sit for
undergraduate, graduate, postgraduate, or occupational licensing and occupational
entrance examinations;

deleted text begin (15) deleted text end new text begin (14) new text end classes, courses, or programs providing 16 or fewer clock hours of
instruction that are not part of the curriculum for an occupation or entry level employment;

deleted text begin (16) deleted text end new text begin (15) new text end classes, courses, or programs providing instruction in personal
development, modeling, or acting;

deleted text begin (17) deleted text end new text begin (16) new text end training or instructional programs, in which one instructor teaches an
individual student, that are not part of the curriculum for an occupation or are not intended
to prepare a person for entry level employment; and

deleted text begin (18) deleted text end new text begin (17) new text end schools with no physical presence in Minnesota, as determined by the
office, engaged exclusively in offering distance instruction that are located in and
regulated by other states or jurisdictions.

Sec. 31.

new text begin [141.37] EXEMPTION; RELIGIOUS SCHOOLS.
new text end

new text begin Subdivision 1. new text end

new text begin Exemption. new text end

new text begin Any school or any department or branch of a school (1)
which is substantially owned, operated, or supported by a bona fide church or religious
organization; (2) whose programs are primarily designed for, aimed at, and attended by
persons who sincerely hold or seek to learn the particular religious faith or beliefs of
that church or religious organization; and (3) whose programs are primarily intended to
prepare its students to become ministers of, to enter into some other vocation closely
related to, or to conduct their lives in consonance with, the particular faith of that church
or religious organization, is exempt from the provisions of sections 141.21 to 141.34.
new text end

new text begin Subd. 2. new text end

new text begin Limitations. new text end

new text begin This exemption shall not extend to any school or to any
department or branch of a school, or program of such school which through advertisements
or solicitations represents to any students or prospective students that the school, its
aims, goals, missions or purposes, or its programs are different from those described in
subdivision 1. This exemption shall not extend to any school which represents to any
student or prospective student that the major purpose of its programs is to prepare the
student for a vocation not closely related to that particular religious faith, or to provide the
student with a general educational program recognized by other schools or the broader
educational, business, or social community as being substantially equivalent to the
educational programs offered by schools or departments or branches of schools which are
not religious in nature and are not exempt from chapter 141 and rules adopted pursuant
under this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Scope. new text end

new text begin Nothing in this chapter or the rules adopted under it shall be
interpreted as permitting the office to determine the truth or falsity of any particular set
of religious beliefs.
new text end

new text begin Subd. 4. new text end

new text begin Descriptive language required. new text end

new text begin Any certificate, diploma, degree, or other
formal recognition awarded upon completion of any religiously exempt program shall
include such descriptive language as to make the religious nature of the award clear.
new text end

Sec. 32. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, section 136A.61, new text end new text begin is repealed.
new text end

ARTICLE 6

HIGHER EDUCATION CRIMINAL PROVISIONS

Section 1.

new text begin [136A.675] FALSE OR FRAUDULENT ACADEMIC DOCUMENT
OR CREDENTIAL; PENALTIES.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "False academic credential" means a document such as a degree, diploma,
certificate, list of coursework, or degree credit, including a transcript, that provides
evidence or demonstrates completion of a course of instruction or coursework that results
in attaining a degree at a level of associate or higher which is issued by a person or
institution that is not approved or authorized to issue the degree by the Office of Higher
Education.
new text end

new text begin (c) "Fraudulent or counterfeit academic credential" means a document such as a
degree, diploma, certificate, list of coursework, or degree credit, including a transcript, that
provides evidence or demonstrates completion of a course of instruction or coursework
that results in attaining a degree at a level of associate or higher which has been altered or
modified after its issuance by a duly approved or authorized institution of higher learning.
new text end

new text begin (d) "Duly approved or authorized institution of higher learning" means an institution
that:
new text end

new text begin (1) is approved to operate under sections 136A.61 to 136A.71 or chapter 141;
new text end

new text begin (2) has authorization to operate in this state issued by another Minnesota state
agency that has authority to authorize the operation of a postsecondary institution;
new text end

new text begin (3) is a Minnesota public postsecondary institution;
new text end

new text begin (4) operates in this state and is exempt from this chapter;
new text end

new text begin (5) does not operate in this state and is licensed or otherwise authorized by the
appropriate state agency in its state of domicile if the state's degree-granting criteria are
equivalent to this state's or has been determined by the office to meet academic standards
comparable to those of an institution located in this state that has accreditation recognized
by the United States Department of Education; or
new text end

new text begin (6) does not operate within the United States but has been determined by the office
to meet academic standards comparable to those of an institution located in this state that
has accreditation recognized by the United States Department of Education.
new text end

new text begin Subd. 2. new text end

new text begin False, fraudulent, counterfeit academic documents. new text end

new text begin It is unlawful for
any person to knowingly issue or manufacture a false, fraudulent, or counterfeit academic
document, including degrees or student academic transcripts.
new text end

new text begin Subd. 3. new text end

new text begin Use or claim; false or counterfeit degree. new text end

new text begin It is unlawful for a person to
knowingly use or claim to have a degree which is false or counterfeit:
new text end

new text begin (1) to obtain employment;
new text end

new text begin (2) to obtain a promotion or higher compensation in employment;
new text end

new text begin (3) to obtain admission to an institution of higher learning; or
new text end

new text begin (4) in connection with any business, trade, profession, or occupation.
new text end

new text begin Subd. 4. new text end

new text begin Penalties. new text end

new text begin A person who commits an act described in subdivision 2 or 3 is
guilty of a misdemeanor.
new text end

Sec. 2. new text begin EFFECTIVE DATE.
new text end

new text begin Section 1 is effective August 1, 2007, and applies to crimes committed on or after
that date.
new text end