as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
Engrossments | ||
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Introduction | Posted on 04/14/1997 |
1.1 A bill for an act 1.2 relating to education; appropriating money for 1.3 education and related purposes to the higher education 1.4 services office, board of trustees of the Minnesota 1.5 state colleges and universities, board of regents of 1.6 the University of Minnesota, and the Mayo medical 1.7 foundation, with certain conditions; establishing and 1.8 modifying programs that promote college affordability; 1.9 providing for agricultural education; clarifying the 1.10 role of the higher education services office; making 1.11 technical changes related to the post-secondary 1.12 merger; increasing the higher education facilities 1.13 authority bonding authority; modifying certain 1.14 conditions for the Minnesota state colleges and 1.15 universities; prescribing uses for the permanent 1.16 university fund; extending the repeal of the 1.17 farmer-lender mediation act; permitting certain land 1.18 conveyances; defining a faculty appointment; 1.19 clarifying and changing requirements for private 1.20 career schools; amending Minnesota Statutes 1996, 1.21 sections 16A.69, subdivision 2; 125.1385, subdivision 1.22 2; 126.56, subdivisions 2, 4a, and 7; 135A.052, 1.23 subdivision 1; 136A.03; 136A.101, by adding a 1.24 subdivision; 136A.121, subdivisions 5 and 9a; 1.25 136A.125, subdivision 4; 136A.1355; 136A.136, 1.26 subdivision 2; 136A.16, subdivision 8, and by adding 1.27 subdivisions; 136A.171; 136A.173, subdivision 3; 1.28 136A.233, subdivisions 2, 3, and by adding a 1.29 subdivision; 136A.29, subdivision 9; 136F.28, 1.30 subdivision 2; 136F.30; 136F.32; 136F.49; 136F.52, by 1.31 adding a subdivision; 136F.581, subdivision 2; 1.32 136F.80; 137.022, subdivision 2; 141.21, subdivisions 1.33 3, 5, 6, and by adding subdivisions; 141.22; 141.25, 1.34 subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 10, and 12; 1.35 141.26, subdivision 2; 141.271, subdivisions 1, 2, 3, 1.36 4, 5, 6, and 12; 141.28, subdivisions 3 and 5; 141.29, 1.37 subdivision 1; 141.31; 141.35; 181.06, subdivision 2; 1.38 216C.27, subdivision 7; and 583.22, subdivision 5; 1.39 Laws 1986, chapter 398, article 1, section 18, as 1.40 amended; Laws 1995, chapter 212, article 1, section 4, 1.41 subdivision 4; Laws 1996, chapter 463, section 2, 1.42 subdivision 6; proposing coding for new law as 1.43 Minnesota Statutes, chapter 41D; proposing coding for 1.44 new law in Minnesota Statutes, chapters 16A; 136A; 1.45 136F; and 141; repealing Minnesota Statutes 1996, 1.46 sections 126.113; 137.41; 141.25, subdivisions 9a, 9b, 2.1 and 11; and 141.36; Laws 1995, chapter 212, article 4, 2.2 section 34; Laws 1995 First Special Session, chapter 2.3 2, article 1, sections 35 and 36. 2.4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.5 ARTICLE 1 2.6 APPROPRIATIONS 2.7 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 2.8 The sums in the columns marked "APPROPRIATIONS" are 2.9 appropriated from the general fund, or other named fund, to the 2.10 agencies and for the purposes specified in this article. The 2.11 listing of an amount under the figure "1998" or "1999" in this 2.12 article indicates that the amount is appropriated to be 2.13 available for the fiscal year ending June 30, 1998, or June 30, 2.14 1999, respectively. "The first year" is fiscal year 1998. "The 2.15 second year" is fiscal year 1999. "The biennium" is fiscal 2.16 years 1998 and 1999. 2.17 SUMMARY BY FUND 2.18 1998 1999 TOTAL 2.19 General $1,185,212,000 $1,195,072,000 $2,380,284,000 2.20 SUMMARY BY AGENCY - ALL FUNDS 2.21 1998 1999 TOTAL 2.22 Higher Education Services Office 2.23 126,261,000 129,926,000 256,187,000 2.24 Board of Trustees of the Minnesota 2.25 State Colleges and Universities 2.26 505,778,000 523,183,000 1,028,961,000 2.27 Board of Regents of the University of Minnesota 2.28 551,994,000 540,681,000 1,092,675,000 2.29 Mayo Medical Foundation 2.30 1,179,000 1,282,000 2,461,000 2.31 APPROPRIATIONS 2.32 Available for the Year 2.33 Ending June 30 2.34 1998 1999 2.35 Sec. 2. HIGHER EDUCATION 2.36 SERVICES OFFICE 2.37 Subdivision 1. Total 2.38 Appropriation 126,261,000 129,926,000 2.39 The amounts that may be spent from this 2.40 appropriation for each purpose are 2.41 specified in the following subdivisions. 3.1 Subd. 2. State Grants 3.2 91,996,000 100,846,000 3.3 If the appropriation in this 3.4 subdivision for either year is 3.5 insufficient, the appropriation for the 3.6 other year is available for it. 3.7 The legislature intends that the higher 3.8 education services office make full 3.9 grant awards in each year of the 3.10 biennium. 3.11 For the biennium, the private 3.12 institution tuition maximum shall be 3.13 $7,860 in the first year and $8,055 in 3.14 the second year for four-year 3.15 institutions and $6,050 in the first 3.16 year and $6,200 in the second year for 3.17 two-year institutions. 3.18 This appropriation contains money to 3.19 set the living and miscellaneous 3.20 expense allowance at $4,305 in the 3.21 first year and $4,413 in the second 3.22 year. 3.23 This appropriation includes $250,000 3.24 each year for grants to nursing 3.25 programs to recruit persons of color 3.26 and to provide grants to nursing 3.27 students who are persons of color. Of 3.28 this amount, $100,000 each year is for 3.29 recruitment and retention of students 3.30 of color in nursing programs leading to 3.31 licensure as a registered nurse. Other 3.32 than the grants to students, all grants 3.33 shall be matched with at least the same 3.34 amount from grantee sources or nonstate 3.35 money. 3.36 $50,000 in the first year is 3.37 nonrecurring money for the loan 3.38 repayment assistance program of 3.39 Minnesota to reimburse graduates of 3.40 Minnesota law schools working as 3.41 lawyers in Minnesota who meet the 3.42 eligibility criteria for loan repayment 3.43 for law school debt. The eligibility 3.44 criteria must include the following: 3.45 (1) recipient's annual household income 3.46 is $30,000 or less; and (2) recipient 3.47 is providing legal services full time 3.48 for economically disadvantaged persons 3.49 for (a) a nonprofit agency as defined 3.50 by section 501(c)(3), 501(c)(4), or 3.51 501(c)(5) of the Internal Revenue Code 3.52 of 1986; (b) Native American tribal 3.53 governments, court systems, and public 3.54 interest organizations; (c) public 3.55 defense corporations; or (d) the state 3.56 board of public defense. The money may 3.57 be released to the program only in 3.58 amounts that have been matched two to 3.59 one with private money. 3.60 Subd. 3. Interstate Tuition 3.61 Reciprocity 3.62 4,000,000 4,000,000 4.1 If the appropriation in this 4.2 subdivision for either year is 4.3 insufficient, the appropriation for the 4.4 other year is available to meet 4.5 reciprocity contract obligations. 4.6 Subd. 4. State Work Study 4.7 8,819,000 8,819,000 4.8 Subd. 5. Minitex Library Program 4.9 2,608,000 2,608,000 4.10 Subd. 6. Learning Network of Minnesota 4.11 4,424,000 4,426,000 4.12 $1,000,000 in each year is nonrecurring 4.13 money for new technology. 4.14 Subd. 7. Income Contingent Loans 4.15 The higher education services office 4.16 shall administer an income contingent 4.17 loan repayment program to assist 4.18 graduates of Minnesota schools in 4.19 medicine, dentistry, pharmacy, 4.20 chiropractic medicine, public health, 4.21 and veterinary medicine, and Minnesota 4.22 residents graduating from optometry and 4.23 osteopathy programs. Applicant data 4.24 collected by the higher education 4.25 services office for this program may be 4.26 disclosed to a consumer credit 4.27 reporting agency under the same 4.28 conditions as apply to the supplemental 4.29 loan program under Minnesota Statutes, 4.30 section 136A.162. No new applicants 4.31 may be accepted after June 30, 1995. 4.32 Subd. 8. Statewide On-line Library 4.33 Information System 4.34 12,000,000 -0- 4.35 This appropriation is for 4.36 implementation of the Minnesota library 4.37 information network, which shall be 4.38 developed in cooperation with the 4.39 library planning task force, and shall 4.40 include the development of (1) an 4.41 integrated library system that will 4.42 serve the libraries of the University 4.43 of Minnesota, the Minnesota state 4.44 colleges and universities system, and 4.45 state government, as well as interested 4.46 public, school, private college, and 4.47 qualifying nonprofit institution 4.48 libraries; and (2) a common services 4.49 gateway creating links to the 4.50 integrated library system for 4.51 compatible school, public, and private 4.52 nonprofit library information systems 4.53 statewide. The University of Minnesota 4.54 and the Minnesota state colleges and 4.55 universities shall provide necessary 4.56 staff for operation, technical support, 4.57 and training. This appropriation is 4.58 nonrecurring. 5.1 Subd. 9. Edvest 5.2 -0- 6,775,000 5.3 $6,775,000 in the second year is for 5.4 matching college savings. 5.5 Subd. 10. Agency Administration 5.6 2,414,000 2,452,000 5.7 Money encumbered for youth works 5.8 postservice benefits shall not cancel 5.9 but is available until the participants 5.10 for whom the money was encumbered are 5.11 no longer eligible to draw benefits. 5.12 This appropriation includes money for 5.13 the Minnesota Minority Education 5.14 Partnership. 5.15 The higher education advisory council 5.16 and the student advisory council shall 5.17 not expire on June 30, 1997, but shall 5.18 continue for the biennium. 5.19 Subd. 11. Balances Forward 5.20 An unencumbered balance in the first 5.21 year under a subdivision in this 5.22 section does not cancel but is 5.23 available for the second year. 5.24 Subd. 12. Transfers 5.25 The higher education services office 5.26 may transfer unencumbered balances from 5.27 the appropriations in this section to 5.28 the state grant appropriation by 5.29 reducing the assigned family 5.30 responsibility and then reducing the 5.31 student share, the interstate tuition 5.32 reciprocity appropriation, the child 5.33 care grant appropriation, and the state 5.34 work study appropriation. 5.35 Sec. 3. BOARD OF TRUSTEES OF THE 5.36 MINNESOTA STATE COLLEGES AND UNIVERSITIES 5.37 Subdivision 1. Total 5.38 Appropriation 505,778,000 525,183,000 5.39 The amounts that may be spent from this 5.40 appropriation for each purpose are 5.41 specified in the following subdivisions. 5.42 Unless otherwise specified in this 5.43 section, in fiscal year 1998 each 5.44 college and university is to receive 5.45 its fiscal year 1997 total allocation 5.46 adjusted for enrollment changes. In 5.47 addition, all instructional and 5.48 noninstructional appropriation 5.49 increases are to be distributed to the 5.50 colleges and universities based on the 5.51 proportion of each to the total system 5.52 full year equivalent enrollment for the 5.53 1996-1997 academic year. The system 5.54 shall report to the legislature on the 5.55 board's progress in developing a new 5.56 allocation model by February 1, 1998. 6.1 Subd. 2. Instructional Expenditures 6.2 This appropriation contains money for 6.3 educational enhancements including 6.4 improvements in programs, student 6.5 services, advising, library 6.6 acquisitions, and class size and 6.7 availability, while holding down 6.8 tuition increases. 6.9 This appropriation includes 6.10 nonrecurring funding to be directed to 6.11 those campuses that are below a 6.12 minimally acceptable standard in 6.13 instructional technology and 6.14 equipment. The appropriation also 6.15 includes recurring funds, to be 6.16 distributed as provided in subdivision 6.17 1, for improvements in instructional 6.18 technology and equipment which is used 6.19 for the benefit of faculty and students 6.20 on campus. 6.21 This appropriation contains 6.22 nonrecurring money to develop and 6.23 implement a common student information 6.24 system and central data management 6.25 system, and to upgrade the management 6.26 information systems network. 6.27 This appropriation contains money for 6.28 grants to develop courses that can be 6.29 delivered through the Virtual 6.30 University. Grant recipients shall 6.31 match this appropriation by an equal 6.32 amount of money from existing or 6.33 nonstate resources. 6.34 The board shall implement a program for 6.35 the preparation and certification of 6.36 bilingual interpreters and translators 6.37 skilled in English and other 6.38 languages. The board shall accomplish 6.39 the implementation in cooperation with 6.40 the University of Minnesota, which 6.41 shall provide necessary technical 6.42 assistance. 6.43 In the process of converting to 6.44 semesters, the system and campuses 6.45 shall develop and incorporate 6.46 mechanisms to improve credit transfer 6.47 as they redesign curriculum. 6.48 A campus student association shall not 6.49 hold a referendum to determine 6.50 statewide affiliation before May 1, 6.51 1998, or before the statewide student 6.52 associations for the community colleges 6.53 and technical colleges vote to 6.54 consolidate, whichever is sooner. 6.55 Subd. 3. Noninstructional Expenditures 6.56 This appropriation contains money for 6.57 development and implementation of the 6.58 Minnesota career and education planning 6.59 system in partnership with the 6.60 University of Minnesota, the department 6.61 of children, families, and learning, 6.62 and the Minnesota office of 7.1 technology. System maintenance and 7.2 operation costs must be paid by 7.3 participating agencies and institutions. 7.4 $150,000 in the first year is to 7.5 establish pilot programs at one 7.6 community college, one technical 7.7 college, and one consolidated community 7.8 technical college to expand the child 7.9 care offerings on campus to include 7.10 infant care. To be chosen by the board 7.11 to receive a grant, a campus must 7.12 demonstrate that (1) it has an 7.13 exemplary child care program, (2) there 7.14 is demand for infant care on campus, 7.15 and (3) it has the physical and 7.16 financial capacity to sustain an infant 7.17 care program after the pilot grant has 7.18 expired. The board shall provide an 7.19 evaluation of the pilot programs and 7.20 its recommendations on expanding infant 7.21 care to other campuses to the education 7.22 committees of the legislature as part 7.23 of its 2000-2001 biennial budget 7.24 request. 7.25 The percentage of debt service assessed 7.26 to the campus for capital projects not 7.27 recommended by the board may not be 7.28 higher than for those projects 7.29 recommended by the board. 7.30 $204,000 the first year and $99,000 the 7.31 second year are for debt service 7.32 payments. 7.33 $150,000 each year is for southwest 7.34 Asia veterans tuition relief. 7.35 Sec. 4. BOARD OF REGENTS OF THE 7.36 UNIVERSITY OF MINNESOTA 7.37 Subdivision 1. Total 7.38 Appropriation 551,994,000 540,681,000 7.39 The amounts that may be spent from this 7.40 appropriation for each purpose are 7.41 specified in the following subdivisions. 7.42 Subd. 2. Operations and 7.43 Maintenance 471,905,000 476,692,000 7.44 (a) Instructional Expenditures 7.45 This appropriation contains money for 7.46 grants to develop courses that can be 7.47 delivered through the Virtual 7.48 University. Grant recipients shall 7.49 match this appropriation by an equal 7.50 amount of money from existing or 7.51 nonstate resources. 7.52 (b) Noninstructional Expenditures 7.53 This appropriation contains money for 7.54 the development and implementation of 7.55 the Minnesota career and education 7.56 planning system in partnership with the 7.57 Minnesota state colleges and 7.58 universities, the department of 7.59 children, families, and learning, and 8.1 the Minnesota office of technology. 8.2 System maintenance and operation costs 8.3 must be paid by participating agencies 8.4 and institutions. 8.5 $250,000 in the first year is for the 8.6 academic health center to provide 8.7 research grants of up to $20,000 to 8.8 faculty. These grants shall be given 8.9 to provide developmental support for 8.10 projects that have a strong potential 8.11 for future funding from outside sources. 8.12 This appropriation contains 8.13 nonrecurring money for administrative 8.14 process redesign. 8.15 $1,600,000 in nonrecurring funds in the 8.16 first year is to honor the first woman 8.17 elected from Minnesota to the United 8.18 States congress by endowing the Coya 8.19 Knutson chair in political science. 8.20 Subd. 3. Special 8.21 Appropriation 80,089,000 63,989,000 8.22 The amounts expended for each program 8.23 in the four categories of special 8.24 appropriations shall be separately 8.25 identified in the 1999 biennial budget 8.26 document. 8.27 (a) Agriculture and Extension Service 8.28 48,297,000 47,297,000 8.29 This appropriation is for the 8.30 Agricultural Experiment Station and 8.31 Minnesota Extension Service. 8.32 Any salary increases granted by the 8.33 university to personnel paid from the 8.34 Minnesota Extension appropriation must 8.35 not result in a reduction of the county 8.36 portion of the salary payments. 8.37 During the biennium, the university 8.38 shall maintain an advisory council 8.39 system for each experiment station. 8.40 The advisory councils must be broadly 8.41 representative of range of size and 8.42 income distribution of farms and 8.43 agribusinesses and must not 8.44 disproportionately represent those from 8.45 the upper half of the size and income 8.46 distributions. 8.47 $1,000,000 in the first year is for 8.48 agricultural education. Of this amount 8.49 $600,000 is for the Minnesota 8.50 agriculture leadership council 8.51 including $200,000 for grants. 8.52 $400,000 is for the university to 8.53 improve recruitment and collaborative 8.54 efforts at the college of agriculture, 8.55 food, and environmental science. 8.56 Appropriations in this paragraph are 8.57 nonrecurring. 8.58 (b) Health Sciences 9.1 19,682,000 4,742,000 9.2 This appropriation is for Indigent 9.3 Patients (County Papers), Rural 9.4 Physicians Associates Program, the 9.5 Veterinary Diagnostic Laboratory, 9.6 Health Sciences Research, and dental 9.7 care. 9.8 This appropriation contains money for 9.9 curriculum redesign and technology, 9.10 technology transfer, research and 9.11 public service, and the biomedical 9.12 engineering center endowment. 9.13 Appropriations for these purposes are 9.14 nonrecurring. 9.15 (c) Institute of Technology 9.16 1,552,000 1,552,000 9.17 This appropriation is for the 9.18 Geological Survey and the Talented 9.19 Youth Mathematics Program. 9.20 (d) System Specials 9.21 10,558,000 10,398,000 9.22 This appropriation is for General 9.23 Research, Student Loans Matching Money, 9.24 women's athletics, Industrial Relations 9.25 Education, Natural Resources Research 9.26 Institute, Center for Urban and 9.27 Regional Affairs, Bell Museum of 9.28 Natural History, and the Humphrey 9.29 Exhibit. The appropriation also 9.30 contains money for the Carlson school 9.31 initiative. 9.32 This appropriation includes money to 9.33 improve the programs and resources 9.34 available to women and to assist 9.35 campuses to comply with Title IX of the 9.36 Education Amendments of 1972 and 9.37 Minnesota Statutes, section 126.21. Of 9.38 this appropriation, no less than the 9.39 following amounts must be allocated to 9.40 each campus: 9.41 Duluth $551,600 $551,600 9.42 Morris $ 66,100 $ 66,100 9.43 Crookston $ 65,000 $ 65,000 9.44 By February 15 of each year, the 9.45 University shall report to the higher 9.46 education divisions of the legislature 9.47 on its efforts to improve opportunities 9.48 for female athletes consistent with 9.49 Title IX. 9.50 Sec. 5. MAYO MEDICAL FOUNDATION 9.51 Subdivision 1. Total 9.52 Appropriation 1,179,000 1,282,000 9.53 The amounts that may be spent from this 9.54 appropriation for each purpose are 9.55 specified in the following subdivisions. 10.1 Subd. 2. Medical School 10.2 441,000 455,000 10.3 The state of Minnesota shall pay a 10.4 capitation of $11,042 in the first year 10.5 and $11,378 in the second year for each 10.6 student who is a resident of 10.7 Minnesota. The appropriation may be 10.8 transferred between years of the 10.9 biennium to accommodate enrollment 10.10 fluctuations. 10.11 The legislature intends that during the 10.12 biennium the Mayo foundation use the 10.13 capitation money to increase the number 10.14 of doctors practicing in rural areas in 10.15 need of doctors. 10.16 Subd. 3. Family Practice and 10.17 Graduate Residency Program 10.18 408,000 467,000 10.19 The state of Minnesota provides a 10.20 capitation of $15,107 in the first year 10.21 and $15,560 in the second year year for 10.22 each student. 10.23 Subd. 4. St. Cloud Hospital-Mayo 10.24 Family Practice Residency Program 10.25 330,000 360,000 10.26 This appropriation is to the Mayo 10.27 foundation to support 12 resident 10.28 physicians in the St. Cloud 10.29 Hospital-Mayo Family Practice Residency 10.30 Program. This appropriation is 10.31 contingent upon $950,000 in matching 10.32 money being made available from 10.33 nonstate sources. The program shall 10.34 prepare doctors to practice primary 10.35 care medicine in rural areas of the 10.36 state. It is intended that this 10.37 program will improve health care in 10.38 rural communities, provide affordable 10.39 access to appropriate medical care, and 10.40 manage the treatment of patients in a 10.41 more cost-effective manner. 10.42 Sec. 6. POST-SECONDARY SYSTEMS 10.43 The legislature intends that the 10.44 University of Minnesota and the 10.45 Minnesota state colleges and 10.46 universities correct technical college 10.47 credit transfer problems. The systems, 10.48 in conjunction with their campuses and 10.49 with faculty and student 10.50 representatives, shall convene faculty 10.51 task forces in appropriate curricular 10.52 areas to determine, within sound 10.53 academic standards, which technical 10.54 college courses shall transfer to 10.55 academic institutions and whether each 10.56 course is accepted for general 10.57 education, major field, or elective 10.58 credit. The task forces shall complete 10.59 their work in time to implement changes 10.60 for the 1998-1999 academic year. The 11.1 systems shall develop mechanisms for 11.2 assessing the success of the changes 11.3 after they have been implemented and 11.4 shall determine whether this process 11.5 should be used to update the entire 11.6 transfer curriculum, particularly in 11.7 light of semester conversion. The 11.8 systems shall report on their progress 11.9 and recommendations for any further 11.10 action as part of the 2000-2001 11.11 biennial budget request. 11.12 The board of regents of the University 11.13 of Minnesota and the board of trustees 11.14 of the Minnesota state colleges and 11.15 universities shall consult throughout 11.16 their biennial planning process, as 11.17 provided in Minnesota Statutes, section 11.18 135A.06, in order to improve the 11.19 coordination and delivery of higher 11.20 education services. In addition, the 11.21 board of trustees and the board of 11.22 regents shall jointly prepare and 11.23 submit a metropolitan higher education 11.24 plan to the higher education divisions 11.25 of the legislature by February 1, 11.26 1998. The private colleges are 11.27 encouraged to participate in the 11.28 planning processes. 11.29 By February 15, 1998, Minnesota state 11.30 colleges and universities and the 11.31 University of Minnesota shall each 11.32 report to the higher education 11.33 divisions of the legislature their 11.34 recommendations on the feasibility of 11.35 managing their portions of state grant 11.36 funds and the methodology they would 11.37 use to distribute the funds. 11.38 During the biennium, a college or 11.39 university that establishes a lab 11.40 school shall report to its governing 11.41 board and the higher education 11.42 divisions of the legislature by 11.43 February 1, 1999, on all direct and 11.44 indirect expenditures related to the 11.45 establishment and operation of the 11.46 school. The report shall include 11.47 documentation of all sources of funding 11.48 for these expenses. 11.49 ARTICLE 2 11.50 COLLEGE AFFORDABILITY 11.51 Section 1. [16A.645] [GOPHER STATE BONDS.] 11.52 Subdivision 1. [ESTABLISHMENT OF PROGRAM.] The 11.53 commissioner of finance, in consultation with the University of 11.54 Minnesota, the Minnesota state colleges and universities, and 11.55 the private college council, shall establish a college savings 11.56 bond program, to be known as "gopher state bonds" to encourage 11.57 individuals to save for higher education costs by investing in 11.58 state general obligation bonds. The program consists of: (1) 12.1 issuing a portion of the state general obligation bonds in zero 12.2 coupon form and in denominations and maturities that will be 12.3 attractive to individuals saving to pay for higher education 12.4 costs; and (2) developing a program for marketing the bonds to 12.5 investors who are saving to pay for higher education costs. The 12.6 commissioner of finance may designate all or a portion of each 12.7 state general obligation bond sale as "gopher state bonds." 12.8 Subd. 2. [DENOMINATIONS; MATURITIES.] The commissioner 12.9 shall determine the appropriate denominations and maturities for 12.10 gopher state bonds. It is the intent of the legislature to make 12.11 bonds available in as small denominations as is feasible given 12.12 the costs of marketing and administering the bond issue. 12.13 Minimum denominations of $500 must be made available. The 12.14 minimum denomination bonds need not be made available for bonds 12.15 of all maturities. For purposes of this section, "denomination" 12.16 means the compounded maturity amount of the bond. 12.17 Subd. 3. [DIRECT SALE PERMITTED.] Notwithstanding the 12.18 provisions of section 16A.646, subdivision 5, the commissioner 12.19 may sell any series of gopher state bonds directly to the public 12.20 or to financial institutions for prompt resale to the public 12.21 upon the terms and conditions and the restrictions the 12.22 commissioner prescribes. The commissioner may enter into all 12.23 contracts deemed necessary or desirable to accomplish the sale 12.24 in a cost-effective manner including a private or negotiated 12.25 sale, but the commissioner may contract for investment banking 12.26 and banking services only after receiving competitive proposals 12.27 for the services. 12.28 Subd. 4. [MARKETING PLAN.] The commissioner and the higher 12.29 education advisory council shall develop a plan for marketing 12.30 gopher state bonds. 12.31 The plan must include strategies to: 12.32 (1) inform parents and relatives about the availability of 12.33 the bonds; 12.34 (2) take orders for the bonds; 12.35 (3) target the sale of the bonds to Minnesota residents, 12.36 especially parents and relatives of children who are likely to 13.1 seek higher education; 13.2 (4) ensure that purchase of the bonds by corporations will 13.3 not prevent individuals and relatives of future students from 13.4 buying them; and 13.5 (5) market the bonds at the lowest cost to the state. 13.6 Subd. 5. [EFFECT ON STUDENT GRANTS.] The first $25,000 of 13.7 gopher state bonds purchased for the benefit of a student must 13.8 not be considered in determining the financial need of an 13.9 applicant for the state grant program under section 136A.121. 13.10 This $25,000 is in addition to any other asset exclusion 13.11 authorized under chapter 136A. 13.12 Sec. 2. [16A.646] [ZERO COUPON BONDS.] 13.13 Subdivision 1. [AUTHORITY TO ISSUE.] When authorized by 13.14 law to issue state general obligation bonds, the commissioner 13.15 may issue all or part of the bonds as serial maturity bonds or 13.16 as zero coupon bonds or a combination of the two. 13.17 Subd. 2. [DEFINITIONS.] For purposes of this section and 13.18 section 16A.645, the following terms have the meanings given 13.19 them. 13.20 (a) "Compounded maturity" means the amount of principal and 13.21 interest payable at maturity on zero coupon bonds. 13.22 (b) "Serial maturity bonds" means bonds maturing on a 13.23 specified day in two or more consecutive years and bearing 13.24 interest at a specified rate payable periodically to maturity or 13.25 prior redemption. 13.26 (c) "Zero coupon bonds" means bonds in a stated principal 13.27 amount, maturing on a specified date or dates, and bearing 13.28 interest that accrues and compounds to and is payable only at 13.29 maturity or upon prior redemption of the bonds. 13.30 Subd. 3. [METHOD OF SALE; PRINCIPAL AMOUNT.] Except as 13.31 otherwise provided by this section or section 16A.645, any 13.32 series of bonds including zero coupon bonds must be issued and 13.33 sold under the provisions of section 16A.641. The stated 13.34 principal amount of zero coupon bonds must be used to determine 13.35 the principal amount of bonds issued under the laws authorizing 13.36 issuance of state general obligation bonds. 14.1 Subd. 4. [SINKING FUND.] The commissioner's order 14.2 authorizing the issuance of zero coupon bonds shall establish a 14.3 separate sinking fund account for the zero coupon bonds in the 14.4 state bond fund. There is annually appropriated from the 14.5 general fund to each zero coupon bond account, beginning in the 14.6 year in which the zero coupon bonds are issued, an amount not 14.7 less than the sum of: 14.8 (1) the total stated principal amount of the zero coupon 14.9 bonds that would have matured from their date of issue to and 14.10 including the second July 1 following the transfer of 14.11 appropriated money, if the bonds matured serially in an equal 14.12 principal amount in each year during their term and in the same 14.13 month as their stated maturity date; plus 14.14 (2) the total amount of interest accruing on the stated 14.15 principal amount of the bonds and on interest previously 14.16 accrued, from bonds date of issue to and including the second 14.17 July 1 following the transfer of appropriated money; less 14.18 (3) the amount in the sinking fund account for the payment 14.19 of the compounded maturity amount of the bonds, including 14.20 interest earnings on amounts in the account. This appropriation 14.21 is in lieu of all other appropriations made with respect to zero 14.22 coupon bonds. The appropriated amounts must be transferred from 14.23 the general fund to the sinking fund account in the state bond 14.24 fund by December 1 of each year. 14.25 Subd. 5. [SALE.] Except as otherwise provided in section 14.26 16A.645, zero coupon bonds, or a series of bonds including zero 14.27 coupon bonds, must be sold at public sale at a price not less 14.28 than 98 percent of their stated principal amount. No state 14.29 trunk highway bond may be sold for a price of less than par and 14.30 accrued interest. 14.31 Sec. 3. Minnesota Statutes 1996, section 136A.101, is 14.32 amended by adding a subdivision to read: 14.33 Subd. 5a. [ASSIGNED FAMILY RESPONSIBILITY.] "Assigned 14.34 family responsibility" means the amount of a family contribution 14.35 to a student's cost of attendance, as determined by a federal 14.36 need analysis, except that up to $25,000 in savings and other 15.1 assets shall be subtracted from the federal calculation of net 15.2 worth before determining the contribution. For dependent 15.3 students, the assigned family responsibility is the parental 15.4 contribution minus any savings adjustment; for independent 15.5 students, the assigned family responsibility is the student 15.6 contribution minus any savings adjustment. 15.7 Sec. 4. Minnesota Statutes 1996, section 136A.121, 15.8 subdivision 5, is amended to read: 15.9 Subd. 5. [GRANT STIPENDS.] The grant stipend shall be 15.10 based on a sharing of responsibility for covering the recognized 15.11 cost of attendance by the applicant, the applicant's family, and 15.12 the government. The amount of a financial stipend must not 15.13 exceed a grant applicant's recognized cost of attendance, as 15.14 defined in subdivision 6, after deducting the following: 15.15 (1) the assigned student responsibility of at least 50 15.16 percent of the cost of attending the institution of the 15.17 applicant's choosing; 15.18 (2) the assigned family responsibility, as determined by15.19the federal need analysis, which for (i) dependent students, is15.20the parental contribution as calculated by the federal need15.21analysis, and for (ii) independent students, is the student15.22contribution as determined by the federal need analysis; andas 15.23 defined in section 136A.101; and 15.24 (3) the amount of a federal Pell grant award for which the 15.25 grant applicant is eligible. 15.26 The minimum financial stipend is $300 per academic year. 15.27 Sec. 5. Minnesota Statutes 1996, section 136A.121, 15.28 subdivision 9a, is amended to read: 15.29 Subd. 9a. [FULL-YEAR GRANTS.] Students may receive state 15.30 grants for four consecutive quarters or three consecutive 15.31 semesters during the course of a single fiscal year. In 15.32 calculating a state grant for the fourth quarter or third 15.33 semester, the office must use the same calculation as it would 15.34 for any other term, except that the calculation must subtract15.35any Pell grant for which a student would be eligible even if the15.36student has exhausted the Pell grant for that fiscal year. 16.1 Sec. 6. Minnesota Statutes 1996, section 136A.125, 16.2 subdivision 4, is amended to read: 16.3 Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a 16.4 child care grant must be based on: 16.5 (1) the income of the applicant and the applicant's spouse, 16.6 if any; 16.7 (2) the number in the applicant's family, as defined by the 16.8 office; and 16.9 (3) the number of eligible children in the applicant's 16.10 family. 16.11 The maximum award to the applicant shall be$1,700$2,000 16.12 for each eligible child per academic year. The office shall 16.13 prepare a chart to show the amount of a grant that will be 16.14 awarded per child based on the factors in this subdivision. The 16.15 chart shall include a range of income and family size. 16.16 Sec. 7. Minnesota Statutes 1996, section 136A.1355, is 16.17 amended to read: 16.18 136A.1355 [RURAL PHYSICIANS.] 16.19 Subdivision 1. [CREATION OF ACCOUNT.] A rural physician 16.20 education account is established in the health care access 16.21 fund. Thehigher education services officecommissioner shall 16.22 use money from the account to establish a loan forgiveness 16.23 program for medicalstudentsresidents agreeing to practice in 16.24 designated rural areas, as defined by the commissioner. 16.25 Subd. 2. [ELIGIBILITY.] To be eligible to participate in 16.26 the program, a prospective physician must submit a letter of 16.27 interest to thehigher education services officecommissioner. 16.28 Astudent orresident who is accepted must sign a contract to 16.29 agree to serve at least three of the first five years following 16.30 residency in a designated rural area. 16.31 Subd. 3. [LOAN FORGIVENESS.] For each fiscalyears16.32beginning on andyear afterJuly 1,1995, thehigher education16.33services officecommissioner may accept up tofour applicants16.34who are fourth year medical students, three12 applicants who 16.35 are medical residents, including four applicants who are 16.36 pediatric residents, andfoursix applicants who are family 17.1 practice residents, andone applicant who is antwo applicants 17.2 who are internal medicineresidentresidents,per fiscal year17.3 for participation in the loan forgiveness program. If 17.4 thehigher education services officecommissioner does not 17.5 receive enough applicants per fiscal year to fill the number of 17.6 residents in the specific areas of practice, the resident 17.7 applicants may be from any area of practice. Theeight12 17.8 resident applicants may be in any year of training; however, 17.9 priority must be given to the following categories of residents 17.10 in descending order: third year residents, second year 17.11 residents, and first year residents. Applicants are responsible 17.12 for securing their own loans. Applicants chosen to participate 17.13 in the loan forgiveness program may designate for each year of 17.14 medical school, up to a maximum of four years, an agreed amount, 17.15 not to exceed $10,000, as a qualified loan. For each year that 17.16 a participant serves as a physician in a designated rural area, 17.17 up to a maximum of four years, thehigher education services17.18officecommissioner shall annually pay an amount equal to one 17.19 year of qualified loans. Participants who move their practice 17.20 from one designated rural area to another remain eligible for 17.21 loan repayment. In addition,ifin any year that a resident 17.22 participating in the loan forgiveness program serves at least 17.23 four weeks during a year of residency substituting for a rural 17.24 physician to temporarily relieve the rural physician of rural 17.25 practice commitments to enable the rural physician to take a 17.26 vacation, engage in activities outside the practice area, or 17.27 otherwise be relieved of rural practice commitments, the 17.28 participating resident may designate up to an additional $2,000, 17.29 above the $10,000 yearly maximum, for each year of residency17.30during which the resident substitutes for a rural physician for17.31four or more weeks. 17.32 Subd. 4. [PENALTY FOR NONFULFILLMENT.] If a participant 17.33 does not fulfill the required three-year minimum commitment of 17.34 service in a designated rural area, thehigher education17.35services officecommissioner shall collect from the participant 17.36 the amount paidby the commissionerunder the loan forgiveness 18.1 program. Thehigher education services officecommissioner 18.2 shall deposit the money collected in the rural physician 18.3 education account established in subdivision 1. The 18.4 commissioner shall allow waivers of all or part of the money 18.5 owed the commissioner if emergency circumstances prevented 18.6 fulfillment of the three-year service commitment. 18.7 Subd. 5. [LOAN FORGIVENESS; UNDERSERVED URBAN 18.8 COMMUNITIES.] For each fiscalyearsyear beginning on and after 18.9July 1,1995, thehigher education services officecommissioner 18.10 may accept up to four applicants who areeither fourth year18.11medical students, orresidents in family practice, pediatrics, 18.12 or internal medicine per fiscal year for participation in the 18.13 urban primary care physician loan forgiveness program. The 18.14 resident applicants may be in any year of residency training; 18.15 however, priority will be given to the following categories of 18.16 residents in descending order: third year residents, second 18.17 year residents, and first year residents. If thehigher18.18education services officecommissioner does not receive enough 18.19 qualified applicants per fiscal year to fill the number of slots 18.20 for urban underserved communities, the slots may be allocated to 18.21students orresidents who have applied for the rural physician 18.22 loan forgiveness program in subdivision 1. Applicants are 18.23 responsible for securing their own loans. For purposes of this 18.24 provision, "qualifying educational loans" are government and 18.25 commercial loans for actual costs paid for tuition, reasonable 18.26 education expenses, and reasonable living expenses related to 18.27 the graduate or undergraduate education of a health care 18.28 professional. Applicants chosen to participate in the loan 18.29 forgiveness program may designate for each year of medical 18.30 school, up to a maximum of four years, an agreed amount, not to 18.31 exceed $10,000, as a qualified loan. For each year that a 18.32 participant serves as a physician in a designated underserved 18.33 urban area, up to a maximum of four years, thehigher education18.34services officecommissioner shall annually pay an amount equal 18.35 to one year of qualified loans. Participants who move their 18.36 practice from one designated underserved urban community to 19.1 another remain eligible for loan repayment. 19.2 Sec. 8. Minnesota Statutes 1996, section 136A.136, 19.3 subdivision 2, is amended to read: 19.4 Subd. 2. [RESPONSIBILITY OF METROPOLITAN HEALTHCARE 19.5 FOUNDATION'S PROJECT LINC.] The metropolitan healthcare 19.6 foundation's project LINC shall administer the grant program and 19.7 award grants to eligible health care facility employees. To be 19.8 eligible to receive a grant, a person must be: 19.9 (1) an employee of a health care facility located in 19.10 Minnesota, whom the facility has recommended to the metropolitan 19.11 healthcare foundation's project LINC for consideration; 19.12 (2) workingpart time, up to 32fewer hours than their 19.13 regular schedule per pay period, for the health care 19.14 facility organization, while maintaining full salary and their 19.15 original benefits and a salary greater than the number of hours 19.16 worked; 19.17 (3) enrolled full time in a Minnesota school or college of 19.18 nursing to complete a baccalaureate or master's degree in 19.19 nursing; and 19.20 (4) a resident of the state of Minnesota. 19.21 The grant must be awarded for one academic year but is 19.22 renewable for a maximum of six semesters or nine quarters of 19.23 full-time study, or their equivalent. The grant must be used 19.24 for tuition, fees, and books. Priority in awarding grants shall 19.25 be given to persons with the greatest financial need. The 19.26 health care facility may require its employee to commit to a 19.27 reasonable postprogram completion of employment at the health 19.28 care facility as a condition for the financial support the 19.29 facility provides. 19.30 Sec. 9. Minnesota Statutes 1996, section 136A.233, 19.31 subdivision 2, is amended to read: 19.32 Subd. 2. [DEFINITIONS.] For purposes of sections 136A.231 19.33 to 136A.233, the words defined in this subdivision have the 19.34 meanings ascribed to them. 19.35 (a) "Eligible student" means a Minnesota resident enrolled 19.36 or intending to enroll at least half time in a degree, diploma, 20.1 or certificate program in a Minnesota post-secondary institution. 20.2 (b) "Minnesota resident" means a student who meets the 20.3 conditions in section 136A.101, subdivision 8. 20.4 (c) "Financial need" means the need for financial 20.5 assistance in order to attend a post-secondary institution as 20.6 determined by a post-secondary institution according to 20.7 guidelines established by the higher education services office. 20.8 (d) "Eligible employer" means any eligible post-secondary 20.9 institutionand, any nonprofit, nonsectarian agency or state 20.10 institution located in the state of Minnesota,including state20.11hospitals, and also includesa handicapped person or a person 20.12 over 65 who employs a student to provide personal services in or 20.13 about the person's residenceof the handicapped person or the20.14person over 65, or a private, for-profit employer employing a 20.15 student as an intern in a position directly related to the 20.16 student's field of study that will enhance the student's 20.17 knowledge and skills in that field. Internships must be under 20.18 the supervision of a faculty member or other academic employee 20.19 at the institution. 20.20 (e) "Eligible post-secondary institution" means any 20.21 post-secondary institution eligible for participation in the 20.22 Minnesota state grant program as specified in section 136A.101, 20.23 subdivision 4. 20.24 (f) "Independent student" has the meaning given it in the 20.25 Higher Education Act of 1965, United States Code, title 20, 20.26 section 1070a-6, and applicable regulations. 20.27 (g) "Half-time" for undergraduates has the meaning given in 20.28 section 136A.101, subdivision 7b, and for graduate students is 20.29 defined by the institution. 20.30 Sec. 10. Minnesota Statutes 1996, section 136A.233, 20.31 subdivision 3, is amended to read: 20.32 Subd. 3. [PAYMENTS.] Work-study payments shall be made to 20.33 eligible students by post-secondary institutions as provided in 20.34 this subdivision. 20.35 (a) Students shall be selected for participation in the 20.36 program by the post-secondary institution on the basis of 21.1 student financial need. 21.2 (b) In selecting students for participation, priority must 21.3 be given to students enrolled for at least 12 credits. 21.4 (c) Students will be paid for hours actually worked and the 21.5 maximum hourly rate of pay shall not exceed the maximum hourly 21.6 rate of pay permitted under the federal college work-study 21.7 program. 21.8 (d) Minimum pay rates will be determined by an applicable 21.9 federal or state law. 21.10 (e) The office shall annually establish a minimum 21.11 percentage rate of student compensation to be paid by an 21.12 eligible employer. 21.13 (f) Each post-secondary institution receiving money for 21.14 state work-study grants shall make a reasonable effort to place 21.15 work-study students in employment with eligible employers 21.16 outside the institution. However, a public employer other than 21.17 the institution may not terminate, lay off, or reduce the 21.18 working hours of a permanent employee for the purpose of hiring 21.19 a work-study student, or replace a permanent employee who is on 21.20 layoff from the same or substantially the same job by hiring a 21.21 work-study student. 21.22 (g) The percent of the institution's work-study allocation 21.23 provided to graduate students shall not exceed the percent of 21.24 graduate student enrollment at the participating institution. 21.25 (h) No more than 20 percent of an institution's allocation 21.26 may be used for student internships with private, for-profit 21.27 employers. 21.28 Sec. 11. Minnesota Statutes 1996, section 136A.233, is 21.29 amended by adding a subdivision to read: 21.30 Subd. 4. [COOPERATION WITH LOCAL SCHOOLS.] Each campus 21.31 using the state work study program is encouraged to cooperate 21.32 with its local public elementary and secondary schools to place 21.33 college work study students in activities in the schools, such 21.34 as tutoring. Students must be placed in meaningful activities 21.35 that directly assist students in kindergarten through grade 12 21.36 in meeting graduation standards including the profiles of 22.1 learning. College students shall work under direct supervision; 22.2 therefore, school hiring authorities are not required to request 22.3 criminal background checks on these students under section 22.4 120.1045. 22.5 Sec. 12. [136A.90] [EDVEST PROGRAM ESTABLISHED.] 22.6 An Edvest savings program is established. In establishing 22.7 this program, the legislature seeks to encourage individuals to 22.8 save for post-secondary education by: 22.9 (1) providing a qualified state tuition program under 22.10 federal tax law; 22.11 (2) providing matching grants for contributions to the 22.12 program; and 22.13 (3) encouraging individuals, foundations, and businesses to 22.14 provide additional grants to participating students. 22.15 Sec. 13. [136A.91] [DEFINITIONS.] 22.16 Subdivision 1. [GENERAL.] For purposes of sections 136A.90 22.17 to 136A.94, the following terms have the meanings given. 22.18 Subd. 2. [BENEFICIARY.] "Beneficiary" means the designated 22.19 beneficiary for the account, as defined in section 529(e)(1) of 22.20 the Internal Revenue Code. 22.21 Subd. 3. [BOARD.] "Board" means the state board of 22.22 investment. 22.23 Subd. 4. [EXECUTIVE DIRECTOR.] "Executive director" means 22.24 the executive director of the state board of investment. 22.25 Subd. 5. [INTERNAL REVENUE CODE.] "Internal Revenue Code" 22.26 means the Internal Revenue Code of 1986, as amended. 22.27 Subd. 6. [OFFICE.] "Office" means the higher education 22.28 services office. 22.29 Subd. 7. [PROGRAM OR EDVEST.] "Program" or "Edvest" refers 22.30 to the program established under section 136A.90. 22.31 Sec. 14. [136A.92] [HIGHER EDUCATION SERVICES OFFICE'S 22.32 RESPONSIBILITIES.] 22.33 Subdivision 1. [ESTABLISH TERMS.] (a) The office shall 22.34 establish the rules, terms, and conditions for the program, 22.35 subject to the requirements of sections 136A.90 to 136A.94. 22.36 (b) The office shall prescribe the application forms, 23.1 procedures, and other requirements that apply to the program. 23.2 Subd. 2. [ACCOUNTS TYPE PROGRAM.] The office must 23.3 establish the program and the program must be operated as an 23.4 accounts type program that permits individuals to save for 23.5 qualified higher education costs incurred at any institution, 23.6 regardless of whether it is private or public or whether it is 23.7 located within or outside of this state. A separate account 23.8 must be maintained for each beneficiary for whom contributions 23.9 are made. 23.10 Subd. 3. [CONSULTATION WITH STATE BOARD OF INVESTMENT.] In 23.11 designing and establishing the program's requirements and in 23.12 negotiating or entering contracts with third parties under 23.13 subdivision 8, the office shall consult with the executive 23.14 director. 23.15 Subd. 4. [PROGRAM TO COMPLY WITH FEDERAL LAW.] The office 23.16 shall take steps to ensure that the program meets the 23.17 requirements for a qualified state tuition program under section 23.18 529 of the Internal Revenue Code. The office may request a 23.19 private letter ruling or rulings from the Internal Revenue 23.20 Service or take any other steps to ensure that the program 23.21 qualifies under section 529 of the Internal Revenue Code or 23.22 other relevant provisions of federal law. 23.23 Subd. 5. [MINIMUM PENALTY.] In establishing the terms of 23.24 the program, the office must provide that refunds of amounts in 23.25 an account are subject to a minimum penalty, as required by 23.26 section 529(b)(3) of the Internal Revenue Code. If the refunds 23.27 or payments are not used for qualified higher education expenses 23.28 of the designated beneficiary, this penalty must equal, at 23.29 least, the proportionate amount of any matching grants deposited 23.30 in the account under section 136A.94 and the investment return 23.31 on the grants, plus an additional penalty that meets the 23.32 requirement of federal law. 23.33 Subd. 6. [THREE-YEAR PERIOD FOR WITHDRAWAL OF GRANTS.] A 23.34 matching grant deposited in the account under section 136A.94 23.35 may not be withdrawn within three years of the establishment of 23.36 the account of the beneficiary. In calculating the three-year 24.1 period, the period held in another account is included, if the 24.2 account includes a rollover from another account under section 24.3 529(c)(3)(C) of the Internal Revenue Code. 24.4 Subd. 7. [MARKETING.] The office shall make parents and 24.5 other interested individuals aware of the availability and 24.6 advantages of the program as a way to save for higher education 24.7 costs. The cost of these promotional efforts must be paid 24.8 entirely from state general fund appropriations and may not be 24.9 funded with fees imposed on participants. 24.10 Subd. 8. [ADMINISTRATION.] The office shall administer the 24.11 program, including accepting and processing applications, 24.12 maintaining account records, making payments, making matching 24.13 grants under section 136A.94, and undertaking any other 24.14 necessary tasks to administer the program. The office may 24.15 contract with one or more third parties to carry out some or all 24.16 of these administrative duties, including promotion and 24.17 marketing of the program. The office and the board may jointly 24.18 contract with third-party providers, if the office and board 24.19 determine that it is desirable to contract with the same entity 24.20 or entities for administration and investment management. 24.21 Subd. 9. [EFFECT ON STUDENT GRANTS.] The first $25,000 of 24.22 the amount in an account under the program must not be 24.23 considered in determining the financial aid of an applicant for 24.24 the state grant program under section 136A.121. 24.25 Subd. 10. [AUTHORITY TO IMPOSE FEES.] The office may 24.26 impose fees on participants in the program to recover the costs 24.27 of administration. The office must use its best efforts to keep 24.28 these fees as low as possible, consistent with efficient 24.29 administration, so that the returns on savings invested in the 24.30 program will be as high as possible. 24.31 Sec. 15. [136A.93] [INVESTMENT OF ACCOUNTS.] 24.32 Subdivision 1. [STATE BOARD TO INVEST.] The state board of 24.33 investment shall invest the money deposited in accounts in the 24.34 program. 24.35 Subd. 2. [PERMITTED INVESTMENTS.] The board may invest the 24.36 accounts in any permitted investment under section 11A.24. The 25.1 legislature intends that each account be invested in a mix of 25.2 investments that is appropriate to the number of years remaining 25.3 before the funds will be withdrawn, if this is feasible given 25.4 the costs and any other relevant factors. 25.5 Subd. 3. [CONTRACTING AUTHORITY.] The board may contract 25.6 with one or more third parties for investment management, 25.7 recordkeeping, or other services in connection with investing 25.8 the accounts. The board and office may jointly contract with 25.9 third-party providers, if the office and board determine that it 25.10 is desirable to contract with the same entity or entities for 25.11 administration and investment management. 25.12 Subd. 4. [FEES.] The board may impose fees on participants 25.13 in the program to recover the cost of investment management and 25.14 related tasks for the program. The board must use its best 25.15 efforts to keep these fees as low as possible, consistent with 25.16 high quality investment management, so that the returns on 25.17 savings invested in the program will be as high as possible. 25.18 Sec. 16. [136A.94] [MATCHING GRANTS.] 25.19 Subdivision 1. [MATCHING GRANT QUALIFICATION.] By March 1 25.20 of each year, a state matching grant must be added to each 25.21 account established under the program if the following 25.22 conditions are met: 25.23 (1) the contributor applies, in writing in a form 25.24 prescribed by the office, for a matching grant; 25.25 (2) a minimum contribution of $200 was made during the 25.26 preceding calendar year; and 25.27 (3) the contributor did not make, and agrees not to make, a 25.28 contribution during the year to any higher education trust under 25.29 chapter 290. 25.30 Subd. 2. [AMOUNT OF MATCHING GRANT.] The amount of the 25.31 matching grant for a beneficiary equals 15 percent of the sum of 25.32 the contributions made to the beneficiary's account during the 25.33 calendar year, not to exceed $300. 25.34 Subd. 3. [BUDGET LIMIT.] If the amount of matching grants 25.35 determined under subdivision 2 exceed the amount of the 25.36 appropriation for the fiscal year, the office shall 26.1 proportionately reduce each grant so that the total equals the 26.2 available appropriation. 26.3 Subd. 4. [PRIVATE CONTRIBUTIONS.] (a) The office may 26.4 solicit and accept contributions from private corporations, 26.5 other businesses, foundations, or individuals to provide: 26.6 (1) matching grants under this section in addition to those 26.7 funded with direct appropriations; or 26.8 (2) grants to students who withdraw money from accounts 26.9 established under the program. 26.10 (b) Amounts contributed may only be used for those purposes. 26.11 Amounts contributed are appropriated to the office to make 26.12 grants. 26.13 (c) Contributors may designate a specific field of study, 26.14 geographic area, or other criteria that govern use of the grants 26.15 funded with their contributions, but may not discriminate on the 26.16 basis of race, ethnicity, or gender. The office may refuse 26.17 contributions that are subject, in its judgment, to unacceptable 26.18 conditions on their use. 26.19 Sec. 17. Minnesota Statutes 1996, section 181.06, 26.20 subdivision 2, is amended to read: 26.21 Subd. 2. [PAYROLL DEDUCTIONS.] A written contract may be 26.22 entered into between an employer and an employee wherein the 26.23 employee authorizes the employer to make payroll deductions for 26.24 the purpose of paying union dues, premiums of any life 26.25 insurance, hospitalization and surgical insurance, group 26.26 accident and health insurance, group term life insurance, group 26.27 annuities or contributions to credit unions or a community chest 26.28 fund, a local arts council, a local science council or a local 26.29 arts and science council, or Minnesota benefit association, a 26.30 federally or state registered political action committee, or 26.31 participation in any employee stock purchase plan or savings 26.32 plan for periods longer than 60 days, including gopher state 26.33 bonds established under section 16A.645. 26.34 Sec. 18. [REVISOR'S INSTRUCTION.] 26.35 The revisor of statutes shall renumber Minnesota Statutes, 26.36 section 136A.1355, in an appropriate place in Minnesota 27.1 Statutes, chapter 144. 27.2 Sec. 19. [EFFECTIVE DATE.] 27.3 Section 5 is effective the day following final enactment. 27.4 Section 16 is effective January 1, 1998. 27.5 ARTICLE 3 27.6 OTHER PROVISIONS 27.7 Section 1. Minnesota Statutes 1996, section 16A.69, 27.8 subdivision 2, is amended to read: 27.9 Subd. 2. [TRANSFER BETWEEN ACCOUNTS.] Upon the awarding of 27.10 final contracts for the completion of a project for construction 27.11 or other permanent improvement, or upon the abandonment of the 27.12 project, the agency to whom the appropriation was made may 27.13 transfer the unencumbered balance in the project account to 27.14 another project enumerated in the same section of that 27.15 appropriation act. The transfer must be made only to cover bids 27.16 for the other project that were higher than was estimated when 27.17 the appropriation for the other project was made and not to 27.18 cover an expansion of the other project. The money transferred 27.19 under this section is appropriated for the purposes for which 27.20 transferred. For transfers for technical colleges by thestate27.21 boardof technicalof trustees of the Minnesota state colleges 27.22 and universities, the total cost of both projects and the 27.23 required local share for both projects are adjusted 27.24 accordingly. The agency proposing a transfer shall report to 27.25 the chair of the senate finance committee and the chair of the 27.26 house of representatives ways and means committee before the 27.27 transfer is made under this subdivision. 27.28 Sec. 2. [41D.01] [MINNESOTA AGRICULTURE EDUCATION 27.29 LEADERSHIP COUNCIL.] 27.30 Subdivision 1. [ESTABLISHMENT; MEMBERSHIP.] The Minnesota 27.31 agriculture education leadership council is established. The 27.32 council is composed of 17 members as follows: 27.33 (1) the chair of the senate committee on agriculture and 27.34 rural development or the chair's designee; 27.35 (2) the chair of the house committee on agriculture or the 27.36 chair's designee; 28.1 (3) the ranking minority caucus member of the senate 28.2 committee on agriculture and rural development or the member's 28.3 designee; 28.4 (4) the ranking minority caucus member of the house 28.5 agriculture committee or the member's designee; 28.6 (5) a member of the senate children, families, and learning 28.7 committee designated by the chair of the committee; 28.8 (6) a member of the house education committee designated by 28.9 the chair of the committee; 28.10 (7) the chair of the University of Minnesota agricultural 28.11 education program; 28.12 (8) the supervisor of secondary agricultural education for 28.13 the department of children, families, and learning; 28.14 (9) the director of management education for the board of 28.15 trustees of the Minnesota state colleges and universities; 28.16 (10) the president and the president-elect of the Minnesota 28.17 vocational agriculture instructors association; 28.18 (11) a representative of the Future Farmers of America 28.19 Foundation designated by the leadership of the organization; 28.20 (12) the commissioner of agriculture or the commissioner's 28.21 designee; 28.22 (13) a representative of agriculture education appointed by 28.23 the chair of the senate committee on agriculture and rural 28.24 development; 28.25 (14) a representative of agricultural business appointed by 28.26 the ranking minority caucus member of the senate committee on 28.27 agriculture and rural development; 28.28 (15) a representative of agriculture education appointed by 28.29 the chair of the house committee on agriculture; and 28.30 (16) a representative of agricultural business appointed by 28.31 the ranking minority caucus member of the house committee on 28.32 agriculture. 28.33 Subd. 2. [POWERS AND DUTIES.] Specific powers and duties 28.34 of the council are to: 28.35 (1) develop recommendations to the legislature and the 28.36 governor and provide review for agriculture education programs 29.1 in Minnesota; 29.2 (2) establish a grant program to foster and encourage the 29.3 development of secondary and post-secondary agriculture 29.4 education programs; 29.5 (3) coordinate and articulate Minnesota's agriculture 29.6 education policy across all programs and institutions; 29.7 (4) identify the critical needs for agriculture educators; 29.8 (5) serve as a link between the agribusiness sector and the 29.9 agriculture education system to communicate mutual concerns, 29.10 needs, and projections; 29.11 (6) establish and maintain an increased awareness of 29.12 agriculture education and its continued need to all citizens of 29.13 Minnesota; 29.14 (7) operate the Minnesota center for agriculture education 29.15 created in section 41D.03; 29.16 (8) gain broad public support for agriculture education in 29.17 Minnesota; and 29.18 (9) report annually on its activities to the senate 29.19 agriculture and rural development committee and the house 29.20 agriculture committee. 29.21 Subd. 3. [COUNCIL OFFICERS; TERMS AND COMPENSATION OF 29.22 APPOINTEES; STAFF.] (a) The chair of the senate agriculture and 29.23 rural development committee and the chair of the house 29.24 agriculture committee are the cochairs of the council. 29.25 (b) The council's membership terms, compensation, filling 29.26 of vacancies, and removal of members are as provided in section 29.27 15.0575. 29.28 (c) The council may employ an executive director and any 29.29 other staff to carry out its functions. 29.30 Subd. 4. [EXPIRATION.] This section expires on June 30, 29.31 2002. 29.32 Sec. 3. [41D.02] [AGRICULTURE EDUCATION GRANT PROGRAM.] 29.33 Subdivision 1. [ESTABLISHMENT.] The Minnesota agriculture 29.34 education leadership council shall establish a program to 29.35 provide grants under subdivisions 2 and 3 to educational 29.36 institutions and other appropriate entities for secondary and 30.1 post-secondary agriculture education programs. 30.2 Subd. 2. [SECONDARY AGRICULTURAL EDUCATION.] The council 30.3 may provide grants for: 30.4 (1) planning and establishment costs for secondary 30.5 agriculture education programs; 30.6 (2) new instructional and communication technologies; and 30.7 (3) curriculum updates. 30.8 Subd. 3. [POST-SECONDARY EDUCATION.] The council may 30.9 provide grants for: 30.10 (1) new instructional and communication technologies; and 30.11 (2) special project funding, including programming, 30.12 in-service training, and support staff. 30.13 Sec. 4. [41D.03] [MINNESOTA CENTER FOR AGRICULTURE 30.14 EDUCATION.] 30.15 Subdivision 1. [GOVERNANCE.] The Minnesota center for 30.16 agriculture education is governed by the Minnesota agriculture 30.17 education leadership council. 30.18 Subd. 2. [POWERS AND DUTIES OF COUNCIL.] (a) The council 30.19 has the powers necessary for the care, management, and control 30.20 of the Minnesota center for agriculture education and all its 30.21 real and personal property. The powers shall include, but are 30.22 not limited to, those listed in this subdivision. 30.23 (b) The council may employ necessary employees, and 30.24 contract for other services to ensure the efficient operation of 30.25 the center for agriculture education. 30.26 (c) The council may receive and award grants. The council 30.27 may establish a charitable foundation and accept, in trust or 30.28 otherwise, any gift, grant, bequest, or devise for educational 30.29 purposes and hold, manage, invest, and dispose of them and the 30.30 proceeds and income of them according to the terms and 30.31 conditions of the gift, grant, bequest, or devise and its 30.32 acceptance. The council shall adopt internal procedures to 30.33 administer and monitor aids and grants. 30.34 (d) The council may establish or coordinate evening, 30.35 continuing education, and summer programs for teachers and 30.36 pupils. 31.1 (e) The council may determine the location for the 31.2 Minnesota center for agriculture education and any additional 31.3 facilities related to the center, including the authority to 31.4 lease a temporary facility. 31.5 (f) The council may enter into contracts with other public 31.6 and private agencies and institutions for building maintenance 31.7 services if it determines that these services could be provided 31.8 more efficiently and less expensively by a contractor than by 31.9 the council itself. The council may also enter into contracts 31.10 with public or private agencies and institutions, school 31.11 districts or combinations of school districts, or educational 31.12 cooperative service units to provide supplemental educational 31.13 instruction and services. 31.14 Subd. 3. [CENTER ACCOUNT.] There is established in the 31.15 state treasury a center for agriculture education account in the 31.16 special revenue fund. All money collected by the council, 31.17 including rental income, shall be deposited in the account. 31.18 Money in the account, including interest earned, is appropriated 31.19 to the council for the operation of its services and programs. 31.20 Subd. 4. [EMPLOYEES.] (a) The council shall employ persons 31.21 who shall serve in the unclassified service. 31.22 (b) The employees hired under this subdivision and any 31.23 other necessary employees hired by the council shall be state 31.24 employees in the executive branch. 31.25 Subd. 5. [POLICIES.] The council may adopt administrative 31.26 policies about the operation of the center. 31.27 Subd. 6. [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 31.28 SPACE.] Public post-secondary institutions shall provide space 31.29 for the Minnesota center for agriculture education at a 31.30 reasonable cost to the center to the extent that space is 31.31 available at the public post-secondary institutions. 31.32 Subd. 7. [PURCHASING INSTRUCTIONAL ITEMS.] Technical 31.33 educational equipment may be procured for programs of the 31.34 Minnesota center for agriculture education by the council either 31.35 by brand designation or in accordance with standards and 31.36 specifications the council may adopt, notwithstanding chapter 32.1 16B. 32.2 Sec. 5. [41D.04] [RESOURCE, MAGNET, AND OUTREACH 32.3 PROGRAMS.] 32.4 Subdivision 1. [RESOURCE AND OUTREACH.] The center shall 32.5 offer resource and outreach programs and services statewide 32.6 aimed at the enhancement of agriculture education opportunities 32.7 for pupils in elementary and secondary school. 32.8 Subd. 2. [CENTER RESPONSIBILITIES.] The center shall: 32.9 (1) provide information and technical services to 32.10 agriculture teachers, professional agriculture organizations, 32.11 school districts, and the department of children, families, and 32.12 learning; 32.13 (2) gather and conduct research in agriculture education; 32.14 (3) design and promote agriculture education opportunities 32.15 for all Minnesota pupils in elementary and secondary schools; 32.16 and 32.17 (4) serve as liaison for the department of children, 32.18 families, and learning to national organizations for agriculture 32.19 education. 32.20 Sec. 6. Minnesota Statutes 1996, section 125.1385, 32.21 subdivision 2, is amended to read: 32.22 Subd. 2. [COMPENSATION.] State money for faculty exchange 32.23 programs is to compensate for expenses that are unavoidable and 32.24 beyond the normal living expenses exchange participants would 32.25 incur if they were not involved in this exchange. Thestate32.26universityboard of trustees of the Minnesota state colleges and 32.27 universities, the board of regents, orof the University of 32.28 Minnesota, and their respective campuses, in conjunction with 32.29 the participating school districts, must control costs for all 32.30 participants as much as possible, through means such as 32.31 arranging housing exchanges, providing campus housing, and 32.32 providing university, state, or school district cars for 32.33 transportation. The boards and campuses may seek other sources 32.34 of funding to supplement these appropriations, if necessary. 32.35 Sec. 7. Minnesota Statutes 1996, section 126.56, 32.36 subdivision 2, is amended to read: 33.1 Subd. 2. [ELIGIBLE STUDENT.] To be eligible for a 33.2 scholarship, a student shall: 33.3 (1) be a United States citizen or permanent resident of the 33.4 United States; 33.5 (2) be a resident of Minnesota; 33.6 (3) attend an eligible program; 33.7 (4) have completed at least one year of secondary school 33.8 but not have graduated from high school; 33.9 (5) have earned at least a B average or its equivalent 33.10 during the semester or quarter prior to application, or have 33.11 earned at least a B average or its equivalent during the 33.12 semester or quarter prior to application in the academic subject 33.13 area applicable to the summer program the student wishes to 33.14 attend;and33.15 (6) demonstrate need for financial assistance; and 33.16 (7) be 19 years of age or younger. 33.17 Sec. 8. Minnesota Statutes 1996, section 126.56, 33.18 subdivision 4a, is amended to read: 33.19 Subd. 4a. [ELIGIBLE PROGRAMS.] A scholarship may be used 33.20 only for an eligible program. To be eligible, a program must: 33.21 (1) provide, as its primary purpose, academic instruction 33.22 for student enrichment in curricular areas including, but not 33.23 limited to, communications, humanities, social studies, social 33.24 science, science, mathematics, art, or foreign languages; 33.25 (2) not be offered for credit to post-secondary students; 33.26 (3) not provide remedial instruction; 33.27 (4) meet any other program requirements established by the 33.28state board of education and thehigher education services 33.29 office; and 33.30 (5) be approved by thecommissionerhigher education 33.31 services office. 33.32 Sec. 9. Minnesota Statutes 1996, section 126.56, 33.33 subdivision 7, is amended to read: 33.34 Subd. 7. [ADMINISTRATION.] The higher education services 33.35 officeand commissionershall determine the time and manner for 33.36 scholarship applications, awards, and program approval. 34.1 Sec. 10. Minnesota Statutes 1996, section 135A.052, 34.2 subdivision 1, is amended to read: 34.3 Subdivision 1. [STATEMENT OF MISSIONS.] The legislature 34.4 recognizes each type of public post-secondarysysteminstitution 34.5 to have a distinctive mission within the overall provision of 34.6 public higher education in the state and a responsibility to 34.7 cooperate withtheeach othersystems. These missions are as 34.8 follows: 34.9 (1) the technicalcollege systemcolleges shall offer 34.10 vocational training and education to prepare students for 34.11 skilled occupations that do not require a baccalaureate degree; 34.12 (2) the communitycollege systemcolleges shall offer lower 34.13 division instruction in academic programs, occupational programs 34.14 in which all credits earned will be accepted for transfer to a 34.15 baccalaureate degree in the same field of study, and remedial 34.16 studies, for students transferring to baccalaureate institutions 34.17 and for those seeking associate degrees; 34.18 (3) consolidated community technical colleges shall offer 34.19 the same types of instruction, programs, certificates, diplomas, 34.20 and degrees as the technical colleges and community colleges 34.21 offer; 34.22 (4) the stateuniversity systemuniversities shall offer 34.23 undergraduate and graduate instruction through the master's 34.24 degree, including specialist certificates, in the liberal arts 34.25 and sciences and professional education; and 34.26(4)(5) the University of Minnesota shall offer 34.27 undergraduate, graduate, and professional instruction through 34.28 the doctoral degree, and shall be the primary state supported 34.29 academic agency for research and extension services. 34.30 It is part of the mission of each system that within the 34.31 system's resources the system's governing board and chancellor 34.32 or president shall endeavor to: 34.33 (a) prevent the waste or unnecessary spending of public 34.34 money; 34.35 (b) use innovative fiscal and human resource practices to 34.36 manage the state's resources and operate the system as 35.1 efficiently as possible; 35.2 (c) coordinate the system's activities wherever appropriate 35.3 with the activities of other systems and governmental agencies; 35.4 (d) use technology where appropriate to increase system 35.5 productivity, improve customer service, increase public access 35.6 to information about the system, and increase public 35.7 participation in the business of the system; 35.8 (e) utilize constructive and cooperative labor-management 35.9 practices to the extent otherwise required by chapters 43A and 35.10 179A; and 35.11 (f) recommend to the legislature appropriate changes in law 35.12 necessary to carry out the mission of the system. 35.13 Sec. 11. Minnesota Statutes 1996, section 136A.03, is 35.14 amended to read: 35.15 136A.03 [EXECUTIVE OFFICERS; EMPLOYEES.] 35.16 The director of the higher education services office shall 35.17 possess the powers and perform the duties as prescribed by the 35.18 higher education services council and shall serve in the 35.19 unclassified service of the state civil service. The director, 35.20 or the director's designated representative, on behalf of the 35.21 office is authorized to sign contracts and execute all 35.22 instruments necessary or appropriate to carry out the purposes 35.23 of sections 136A.01 to 136A.178 for the office. The salary of 35.24 the director shall be established by the higher education 35.25 services council according to section 15A.081, subdivision 1. 35.26 The director shall be a person qualified by training or 35.27 experience in the field of higher education or in financial aid 35.28 administration. The director may appoint other professional 35.29 employees who shall serve in the unclassified service of the 35.30 state civil service. All other employees shall be in the 35.31 classified civil service. 35.32 An officer or professional employee in the unclassified 35.33 service as provided in this section is a person who has studied 35.34 higher education or a related field at the graduate level or has 35.35 similar experience and who is qualified for a career in 35.36 financial aid and other aspects of higher education and for 36.1 activities in keeping with the planning and administrative 36.2 responsibilities of the office and who is appointed to assume 36.3 responsibility for administration of educational programs or 36.4 research in matters of higher education. 36.5 Sec. 12. Minnesota Statutes 1996, section 136A.16, 36.6 subdivision 8, is amended to read: 36.7 Subd. 8. Money made available to the office that is not 36.8 immediately needed for the purposes of sections 136A.15 to 36.9 136A.1702 may be invested by the office. The money must be 36.10 invested in bonds, certificates of indebtedness, and other fixed 36.11 income securities, except preferred stocks, which are legal 36.12 investments for the permanent school fund. The money may also 36.13 be invested in prime quality commercial paper that is eligible 36.14 for investment in the state employees retirement fund. All 36.15 interest and profits from such investments inure to the benefit 36.16 of the office or may be pledged for security of bonds issued by 36.17 the office or its predecessor, the Minnesota higher education 36.18 coordinating board. 36.19 Sec. 13. Minnesota Statutes 1996, section 136A.16, is 36.20 amended by adding a subdivision to read: 36.21 Subd. 14. The office may sell at public or private sale, 36.22 at the price or prices determined by the office, any note or 36.23 other instrument or obligation evidencing or securing a loan 36.24 made by the office or its predecessor, the Minnesota higher 36.25 education coordinating board. 36.26 Sec. 14. Minnesota Statutes 1996, section 136A.16, is 36.27 amended by adding a subdivision to read: 36.28 Subd. 15. The office may obtain municipal bond insurance, 36.29 letters of credit, surety obligations, or similar agreements 36.30 from financial institutions. 36.31 Sec. 15. Minnesota Statutes 1996, section 136A.171, is 36.32 amended to read: 36.33 136A.171 [REVENUE BONDS; ISSUANCE; PROCEEDS.] 36.34 The higher education services office may issue revenue 36.35 bonds to obtain funds for loans made in accordance with the 36.36 provisions of this chapter. The aggregate amount of revenue 37.1 bonds, issued directly by the office, outstanding at any one 37.2 time, not including refunded bonds or otherwise defeased or 37.3 discharged bonds, shall not exceed $550,000,000. Proceeds from 37.4 the issuance of bonds may be held and invested by the office 37.5 pending disbursement in the form of loans. All interest and 37.6 profits from the investments shall inure to the benefit of the 37.7 office and shall be available to theboardoffice for the same 37.8 purposes as the proceeds from the sale of revenue bonds 37.9 including, but not limited to, costs incurred in administering 37.10 loans under this chapter and loan reserve funds. 37.11 Sec. 16. Minnesota Statutes 1996, section 136A.173, 37.12 subdivision 3, is amended to read: 37.13 Subd. 3. The revenue bonds may be issued as serial bonds 37.14 or as term bonds, or the office, in its discretion, may issue 37.15 bonds of both types. The revenue bonds shall be authorized by 37.16 resolution of themembersdirector of the office and shall bear 37.17 such date or dates, mature at such time or times, not exceeding 37.18 50 years from their respective dates, bear interest at such rate 37.19 or rates, payable at such time or times, be in denominations, be 37.20 in such form, either coupon or registered, carry such 37.21 registration privileges, be executed in such manner, be payable 37.22 in lawful money of the United States of America at such place or 37.23 places, and be subject to such terms of redemption, as such 37.24 resolution or resolutions may provide. The revenue bonds or 37.25 notes may be sold at public or private sale for such price or 37.26 prices as the office shall determine. Pending preparation of 37.27 the definitive bonds, the office may issue interim receipts or 37.28 certificates which shall be exchanged for such definite bonds. 37.29 Sec. 17. Minnesota Statutes 1996, section 136A.29, 37.30 subdivision 9, is amended to read: 37.31 Subd. 9. The authority is authorized and empowered to 37.32 issue revenue bonds whose aggregate principal amount at any time 37.33 shall not exceed$350,000,000$500,000,000 and to issue notes, 37.34 bond anticipation notes, and revenue refunding bonds of the 37.35 authority under the provisions of sections 136A.25 to 136A.42, 37.36 to provide funds for acquiring, constructing, reconstructing, 38.1 enlarging, remodeling, renovating, improving, furnishing, or 38.2 equipping one or more projects or parts thereof. 38.3 Sec. 18. Minnesota Statutes 1996, section 136F.28, 38.4 subdivision 2, is amended to read: 38.5 Subd. 2. [DEFINITIONS.] For the purpose of this 38.6 section, the following terms have the meaning given to them: 38.7 (a) "Southwest Asia veteran" means a person who: 38.8 (1) served in the active military service in any branch of 38.9 the armed forces of the United States any time between August 1, 38.10 1990, and February 27, 1992; 38.11 (2) became eligible for the Southwest Asia Service Medal as 38.12 a result of the service; 38.13 (3) was a Minnesota resident at the time of induction into 38.14 the armed forces and for the one year immediately preceding 38.15 induction; and 38.16 (4) has been separated or discharged from active military 38.17 service under conditions other than dishonorable. 38.18 (b) "Technical college" means a technical college or 38.19 consolidated community technical college under the governance of 38.20 the Minnesota state colleges and universities. 38.21 Sec. 19. Minnesota Statutes 1996, section 136F.30, is 38.22 amended to read: 38.23 136F.30 [COURSES AND PROGRAMS.] 38.24 The board shall review and approve or disapprove campus 38.25 proposals for adding, deleting, or substantially changing 38.26 programs of study, including graduate and undergraduate academic 38.27 programs, training in professional, semiprofessional, and 38.28 technical fields, and adult education. The board shall avoid 38.29 duplicate program offerings. The board may initiate activities 38.30 to close programs. If a decision is made to eliminate a 38.31 program, a college or university shall notify students and 38.32 assist them in completing the program or in transferring to a 38.33 similar program at another campus. The board shall place a high 38.34 priority on ensuring the transferability of credit. 38.35 Sec. 20. Minnesota Statutes 1996, section 136F.32, is 38.36 amended to read: 39.1 136F.32 [DEGREES; DIPLOMAS; CERTIFICATES.] 39.2 Subdivision 1. [APPROVAL.] The board may approve awarding 39.3 of appropriate certificates, diplomas, or degrees to persons who 39.4 complete a prescribed curriculum. 39.5 Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL 39.6 COLLEGES.] A technical college or consolidated technical 39.7 community college shall offer students the option of pursuing 39.8 diplomas and certificates in each technical education program, 39.9 unless the board determines that this is not practicable for 39.10 certain programs. All credits earned for the diploma or 39.11 certificate shall be applicable toward any available degree in 39.12 the same program. 39.13 Sec. 21. Minnesota Statutes 1996, section 136F.49, is 39.14 amended to read: 39.15 136F.49 [LICENSURE.] 39.16 The boardmayshall adopt policies for licensure of 39.17 teaching personnel in technical colleges and for vocational 39.18 technical instructors teaching outside the Minnesota state 39.19 colleges and universities system. The board may establish a 39.20 processing fee for the issuance, renewal, or extension of a 39.21 license. 39.22 Sec. 22. Minnesota Statutes 1996, section 136F.52, is 39.23 amended by adding a subdivision to read: 39.24 Subd. 1a. [PROGRAM ADVISORY COMMITTEES.] Technical and 39.25 consolidated colleges may have advisory committees for each 39.26 technical program. The advisory committee shall be comprised of 39.27 representatives of relevant businesses, community members, 39.28 faculty, and students. The advisory committees shall review and 39.29 make recommendations to the college and the board on proposals 39.30 to reduce, substantially change, or eliminate programs. 39.31 Sec. 23. Minnesota Statutes 1996, section 136F.581, 39.32 subdivision 2, is amended to read: 39.33 Subd. 2. [POLICIES AND PROCEDURES.] The board shall 39.34 develop policies, and each college and university shall develop 39.35 procedures, for purchases and contracts that are consistent with 39.36 subdivision 1. The policies and procedures shall be developed 40.1 through the system and campus labor management committees and 40.2 shall include provisions requiring the system and campuses to 40.3 determine that they cannot use available staff before 40.4 contracting with additional outside consultants or services. In 40.5 addition, each college and university, in consultation with the 40.6 system office, shall develop procedures for those purchases and 40.7 contracts that can be accomplished by a college and university 40.8 without board approval. The board policies must allow each 40.9 college and university the local authority to enter into 40.10 contracts for construction projects of up to $250,000 and to 40.11 make other purchases of up to $50,000, without receiving board 40.12 approval. The board may allow a college or university local 40.13 authority to make purchases over $50,000 without receiving board 40.14 approval. 40.15 Sec. 24. Minnesota Statutes 1996, section 136F.80, is 40.16 amended to read: 40.17 136F.80 [GRANTS; GIFTS; BEQUESTS; DEVISES; ENDOWMENTS.] 40.18 Subdivision 1. [RECEIPT AND ACCEPTANCE.] The board may 40.19 apply for, receive, and accept on behalf of the state and for 40.20 the benefit of any state college or university any grant, gift, 40.21 bequest, devise, or endowment that any person, firm, 40.22 corporation, foundation, association, or government agency may 40.23 make to the board for the purposes of the state colleges and 40.24 universities. The board may use any money given to it or to any 40.25 of the state colleges and universities consistent with the terms 40.26 and conditions under which the money was received and for the 40.27 purposes stated. All moneys received are appropriated to the 40.28 board for use in the colleges and universities. These moneys 40.29 shall not be taken into account in determining appropriations or 40.30 allocations and are not subject to the provisions of chapter 40.31 16A. All taxes and special assessments constituting a lien on 40.32 any real property received and accepted by the board under this 40.33 section shall be paid in full before title is transferred to the 40.34 state. 40.35 Subd. 2. [DEPOSIT OF MONEY.] The board shall provide by 40.36 policy, in accordance with provisions of chapter118118A, for 41.1 the deposit of all money received or referred to under this 41.2 section. Whenever the board shall by resolution determine that 41.3 there are moneys in the state college or university funds not 41.4 currently needed, the board may by resolution authorize and 41.5 direct the president of the college or university to invest a 41.6 specified amount in securities as are duly authorized as legal 41.7 investments for savings banks and trust companies. Securities 41.8 so purchased shall be deposited and held for the board by any 41.9 bank or trust company authorized to do a banking business in 41.10 this state. Notwithstanding the provisions of chapter118118A, 41.11 the state board of investment may invest assets of the board, 41.12 colleges, and universities when requested by the board, college, 41.13 or university. 41.14 Sec. 25. [136F.81] [TRANSFER OF GIFTS.] 41.15 A college or university that receives a gift or bequest 41.16 that is intended for purposes performed by the institution's 41.17 foundation may transfer the money to its foundation. 41.18 Sec. 26. Minnesota Statutes 1996, section 137.022, 41.19 subdivision 2, is amended to read: 41.20 Subd. 2. [INCOME.]TheAll income from the permanent 41.21 university fund is appropriated annually to the board of 41.22 regents. Authority over this income is vested solely in the 41.23 board but must be used by the board directly to enhance the 41.24 mission of the university. This appropriation of income must 41.25 not be used to reduce other appropriations made to the board of 41.26 regents. The determination of this income shall be based on the 41.27 procedures detailed in section 11A.16, subdivision 5, or 11A.12, 41.28 subdivision 2. 41.29 Sec. 27. Minnesota Statutes 1996, section 216C.27, 41.30 subdivision 7, is amended to read: 41.31 Subd. 7. [BUILDING EVALUATORS.] The commissioner shall 41.32 certify evaluators in each county of the state who are qualified 41.33 to determine the compliance of a residence with applicable 41.34 energy efficiency standards. The commissioner shall, by rule 41.35 pursuant to chapter 14, adopt standards for the certification 41.36 and performance of evaluators and set a fee for the 42.1 certification of evaluators which is sufficient to cover the 42.2 ongoing costs of the program once it is established. The 42.3 commissioner shall encourage the certification of existing 42.4 groups of trained municipal personnel and qualified individuals 42.5 from community-based organizations and public service 42.6 organizations. Each certified evaluator shall, on request of 42.7 the owner, inspect any residence and report the degree to which 42.8 it complies with applicable energy efficiency standards 42.9 established pursuant to subdivision 1. The inspections shall be 42.10 made within 30 days of the request. The commissioner shall 42.11 enter into an agreement with thedepartment of children,42.12families, and learningboard of trustees of the Minnesota state 42.13 colleges and universities for the provision of evaluator 42.14 trainingthroughat institutions that offer the technical 42.15collegestraining. The commissioner may contract with 42.16 thetechnical collegesboard to reduce the training costs to the 42.17 students. The commissioner may eliminate the examination fee 42.18 for persons seeking upgraded certificates. The commissioner may 42.19 also establish requirements for continuing education, periodic 42.20 recertification, and revocation of certification for evaluators. 42.21 Sec. 28. Minnesota Statutes 1996, section 583.22, 42.22 subdivision 5, is amended to read: 42.23 Subd. 5. [DIRECTOR.] "Director" means the director of the 42.24agricultural extension serviceconflict and change center at the 42.25 University of Minnesota's Humphrey Institute or the director's 42.26 designee. 42.27 Sec. 29. Laws 1986, chapter 398, article 1, section 18, as 42.28 amended by Laws 1987, chapter 292, section 37; Laws 1989, 42.29 chapter 350, article 16, section 8; Laws 1990, chapter 525, 42.30 section 1; Laws 1991, chapter 208, section 2; Laws 1993, First 42.31 Special Session chapter 2, article 6, section 2; and Laws 1995, 42.32 chapter 212, article 2, section 11, is amended to read: 42.33 Sec. 18. [REPEALER.] 42.34 Sections 1 to 17 and Minnesota Statutes, section 336.9-501, 42.35 subsections (6) and (7), and sections 583.284, 583.285, 583.286, 42.36 and 583.305, are repealed on July 1,19971998. 43.1 Sec. 30. Laws 1995, chapter 212, article 1, section 4, 43.2 subdivision 4, is amended to read: 43.3 Subd. 4. Specials Transfer 43.4 The appropriation in subdivision 3, 43.5 paragraph (b), for Medical Research, 43.6 Special Hospitals Service and 43.7 Educational Offset, and the Institute 43.8 for Human Genetics; and in paragraph 43.9 (c) for the Underground Space Center, 43.10 Microelectronics and Information 43.11 Science Center, and the Center for 43.12 Advanced Manufacturing, Design, and 43.13 Control; and in paragraph (d) for the 43.14 Fellowships for Minority and 43.15 Disadvantaged Students,Intercollegiate43.16Athletics,Sea Grant College Program, 43.17 Biological Process Technology 43.18 Institute, and the Supercomputer 43.19 Institute shall be merged with the 43.20 operation and maintenance funding in 43.21 subdivision 2, effective June 30, 1997. 43.22 Sec. 31. Laws 1996, chapter 463, section 2, subdivision 6, 43.23 is amended to read: 43.24 Subd. 6. Anoka Ramsey Community College 43.25 (a) Addition and Remodeling 10,430,000 43.26 Design, construct, furnish, and equip 43.27 an addition and remodel existing space 43.28 to provide classrooms, a learning 43.29 resource center, computer labs, a 43.30 developmental learning center, science 43.31 labs, nursing and student services 43.32 facilities, offices,anda campus 43.33 center, and food service. The college 43.34 may use up to $900,000 from auxiliary 43.35 enterprise funds for this project. 43.36 (b) Design and construct a replacement 43.37 energy plant and service elevator 4,510,000 43.38 Sec. 32. [BOARD AUTHORITY TO PURCHASE, SELL, TRANSFER, 43.39 LEASE, AND CONVEY CERTAIN LAND AND IMPROVEMENTS.] 43.40 Subdivision 1. [AUTHORITY.] The board of trustees may 43.41 purchase, sell, transfer, lease, and convey land and 43.42 improvements described in this section, and may retain all 43.43 proceeds from the sale or lease of real estate under Minnesota 43.44 Statutes, section 136F.71. The provisions of Minnesota 43.45 Statutes, sections 94.09 to 94.16 and 103F.535, do not apply to 43.46 real estate transactions authorized by this section. 43.47 Subd. 2. [ST. CLOUD.] The board of trustees may purchase 43.48 fee title from the Central Minnesota Council of Boy Scouts, 43.49 Inc., of approximately 1.4 acres of land that includes an office 44.1 building and that is contiguous to St. Cloud Technical College 44.2 for college operations. 44.3 Subd. 3. [INVER HILLS, NORMANDALE LAND TRANSFERS.] (a) The 44.4 board of trustees may transfer fee title to approximately eight 44.5 acres of state-owned real estate operated by Inver Hills 44.6 Community College to the city of Inver Grove Heights. The 44.7 purpose of the transfer is to provide land for the construction 44.8 of a community library at no cost to the state, the board, or 44.9 Inver Hills Community College. The transfer is contingent on 44.10 the board of trustees acquiring fee title to approximately eight 44.11 acres of real estate owned by the city of Inver Grove Heights, 44.12 adjacent to Inver Hills Community College, for college 44.13 operations. 44.14 (b) The board of trustees may transfer fee title to 44.15 approximately 12 acres of state-owned real estate that comprises 44.16 Normandale Community College's athletic fields to the city of 44.17 Bloomington. The transfer is contingent on the board acquiring 44.18 fee title to approximately 12 acres of real estate owned by the 44.19 city of Bloomington, which is in the vicinity of Normandale 44.20 Community College, for college operations. The transfer must 44.21 include provisions to allow the college continued use of the 44.22 fields. 44.23 Subd. 4. [WINONA, JACKSON, MAHTOMEDI PROPERTY SALE.] (a) 44.24 The board of trustees may sell the state's interest in an 44.25 aviation hanger and related land operated by the Winona campus 44.26 of Winona-Red Wing Technical College for no less than the 44.27 assessed value of the property. The sale may be by public 44.28 auction, sealed bid, listing with a real estate broker licensed 44.29 under Minnesota Statutes, chapter 82, or other means selected by 44.30 the board of trustees. 44.31 (b) The board of trustees may sell a former armory building 44.32 operated by the Jackson campus of Minnesota West Community and 44.33 Technical College for no less than the assessed value of the 44.34 property. The sale may be by public auction, sealed bid, 44.35 listing with a real estate broker licensed under Minnesota 44.36 Statutes, chapter 82, or other means selected by the board of 45.1 trustees. 45.2 (c) The board of trustees may sell for $1 approximately 45.3 four acres of state-owned real estate operated by Century 45.4 Community and Technical College to the city of Mahtomedi for 45.5 construction of an ice arena. 45.6 Subd. 5. [MINNEAPOLIS TRANSFER.] Notwithstanding the 45.7 provisions of Minnesota Statutes, chapter 94, or any other state 45.8 law, if the board of trustees of the Minnesota state college and 45.9 universities system or the school board of special school 45.10 district No. 1, Minneapolis, ceases to use its portion of the 45.11 real property along second avenue north adjacent to Bassett's 45.12 creek in Minneapolis known as the transportation center for a 45.13 purpose related to normal, authorized board functions or 45.14 activities, or if the board of trustees or the school board 45.15 wishes to permanently abandon, sell, or lease or otherwise 45.16 transfer the control of a material part of, its portion of the 45.17 real property, the board of trustees must offer to convey its 45.18 portion of the property to the school board for $1 or the school 45.19 board must offer to convey its portion of the property to the 45.20 board of trustees for $1. The board of trustees and the school 45.21 board are each authorized to convey their portion of the 45.22 property upon timely acceptance of such offer. An offer 45.23 extended shall become void if not accepted in writing within 60 45.24 days of issuance. 45.25 Sec. 33. [DISTINGUISHED SERVICE PROFESSOR.] 45.26 Notwithstanding any law to the contrary, an appointment 45.27 made by the state university board to the position of 45.28 distinguished service professor in effect on June 30, 1995, and 45.29 the terms and conditions of the appointment, remain in effect 45.30 until terminated by the distinguished service professor 45.31 appointee or the appointee is terminated for cause. For the 45.32 purposes of this section, distinguished service professor has 45.33 the same meaning as distinguished senior fellow. 45.34 Sec. 34. [INSTRUCTION TO REVISOR.] 45.35 The revisor of statutes shall change the phrases "state 45.36 board of technical colleges," "state board for vocational 46.1 technical education," "state board for community colleges," and 46.2 "state university board," or similar, to "board of trustees of 46.3 the Minnesota state colleges and universities" in Minnesota 46.4 Statutes, sections 3.754; 16A.662, subdivision 5; 352.01, 46.5 subdivision 2b; and 354.66, subdivision 1a. 46.6 Sec. 35. [REPEALER.] 46.7 Minnesota Statutes 1996, sections 126.113; and 137.41; Laws 46.8 1995, chapter 212, article 4, section 34; and Laws 1995, First 46.9 Special Session chapter 2, article 1, sections 35 and 36, are 46.10 repealed. 46.11 ARTICLE 4 46.12 PRIVATE CAREER SCHOOLS 46.13 Section 1. Minnesota Statutes 1996, section 141.21, 46.14 subdivision 3, is amended to read: 46.15 Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a 46.16 salary or for commission, acts as an agent, independent 46.17 contractor, salesperson, or counselor inprocuring or attempting46.18to procurerecruiting studentsor enrolleesfor acourse of46.19instruction by solicitation inprogram using anyform made46.20 method, at any place except on the actual business premises of 46.21 the schooland except for rendering, other than only providing 46.22 public informationserviceat the invitation or permission of a 46.23 school or educational organization. 46.24 Sec. 2. Minnesota Statutes 1996, section 141.21, 46.25 subdivision 5, is amended to read: 46.26 Subd. 5. [SCHOOL.] "School" means any person, within or 46.27withoutoutside the state,thatwho maintains, advertises, 46.28 solicits, or conducts anycourse of instructionprogram for 46.29 profitor for a tuition chargeat any level other than 46.30 baccalaureate or graduate programs, andwhichis not 46.31 specifically exempted bythe provisions ofsections 141.21 to 46.32141.36141.35. 46.33 Sec. 3. Minnesota Statutes 1996, section 141.21, 46.34 subdivision 6, is amended to read: 46.35 Subd. 6. [COURSEOF INSTRUCTION.] "Courseof instruction" 46.36 means any classroom, correspondence, or extensioncourse of47.1 instruction; any subunit of a program; or any combination 47.2 thereof. 47.3 Sec. 4. Minnesota Statutes 1996, section 141.21, is 47.4 amended by adding a subdivision to read: 47.5 Subd. 8. [PROGRAM.] "Program" means any course or grouping 47.6 of courses that is advertised or listed in a school's catalog, 47.7 brochures, or other publications, or for which the school grants 47.8 a formal recognition. 47.9 Sec. 5. Minnesota Statutes 1996, section 141.21, is 47.10 amended by adding a subdivision to read: 47.11 Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education 47.12 school" means a school that establishes, keeps, or maintains a 47.13 facility or location where a program is offered through 47.14 correspondence, telecommunication, or electronic media. 47.15 Sec. 6. Minnesota Statutes 1996, section 141.22, is 47.16 amended to read: 47.17 141.22 [CITATION.] 47.18 Sections 141.21 to141.36141.35 may be cited as the 47.19 Privatebusiness, trade and correspondenceCareer School Act. 47.20 Sec. 7. Minnesota Statutes 1996, section 141.25, 47.21 subdivision 1, is amended to read: 47.22 Subdivision 1. [REQUIRED.] No school shall maintain, 47.23 advertise, solicit for, or conduct anycourse of instruction47.24 program in Minnesota without first obtaining a license from the 47.25 office. 47.26 Sec. 8. Minnesota Statutes 1996, section 141.25, 47.27 subdivision 2, is amended to read: 47.28 Subd. 2. [CONTRACT UNENFORCEABLE.] Any contract entered 47.29 into with any person for acourse of instructionprogramafter47.30November 15, 1969,by or on behalf of any person operating any 47.31 school to which a license has not been issuedpursuant tounder 47.32 sections 141.21 to141.36141.35, shall be unenforceable in any 47.33 actionbrought thereon. 47.34 Sec. 9. Minnesota Statutes 1996, section 141.25, 47.35 subdivision 3, is amended to read: 47.36 Subd. 3. [APPLICATION.] Application for a license shall be 48.1 on forms prepared and furnished by the office, and shall contain 48.2 the following and such other information as the office may 48.3 require: 48.4(a)(1) the title or name of the school, together with 48.5 ownership and controlling officers, members, managing employees, 48.6 and director; 48.7(b)(2) the specificfields of instructionprograms which 48.8 will be offered and the specific purposes ofsuchthe 48.9 instruction; 48.10(c)(3) the place or places wheresuchthe instruction will 48.11 be given; 48.12(d)(4) a listing of the equipment available for 48.13 instruction in eachcourse of instructionprogram; 48.14(e)(5) the maximum enrollment to be accommodated with 48.15 equipment available in each specifiedcourse of instruction48.16 program; 48.17(f)(6) the qualifications of instructors and supervisors 48.18 in each specifiedcourse of instructionprogram; 48.19(g)(7) a current balance sheet, income statement, and 48.20 adequate supporting documentation, prepared and certified by an 48.21 independent public accountant or CPA; 48.22(h)(8) copies of all media advertising and promotional 48.23 literature and brochures currently used or reasonably expected 48.24 to be used bysuchthe school; 48.25(i)(9) copies of all Minnesota enrollment agreement forms 48.26 and contract forms and all enrollment agreement forms and 48.27 contract forms used in Minnesota; and 48.28 (10) gross income earned in the preceding year from student 48.29 tuition, fees, and other required institutional charges, unless 48.30 the school files with the office a surety bond equal to at least 48.31 $50,000 as described in subdivision 5. 48.32 Sec. 10. Minnesota Statutes 1996, section 141.25, 48.33 subdivision 5, is amended to read: 48.34 Subd. 5. [BOND.] (a) No license shall be issued to any 48.35 school which maintains, conducts, solicits for, or advertises 48.36 within the state of Minnesota anycourse of instructionprogram, 49.1 unless the applicant files with the office a continuous 49.2 corporate surety bondin the sum of $10,000written by a company 49.3 authorized to do business in Minnesota conditioned upon the 49.4 faithful performance of all contracts and agreements with 49.5 students made by the applicant.Such49.6 (b) The amount of the surety bond shall be ten percent of 49.7 the preceding year's gross income from student tuition, fees, 49.8 and other required institutional charges, but in no event less 49.9 than $10,000 nor greater than $50,000, except that a school may 49.10 deposit a greater amount at its own discretion. A school in 49.11 each annual application for licensure must compute the amount of 49.12 the surety bond and verify that the amount of the surety bond 49.13 complies with this subdivision, unless the school maintains a 49.14 surety bond equal to at least $50,000. A school that operates 49.15 at two or more locations may combine gross income from student 49.16 tuition, fees, and other required institutional charges for all 49.17 locations for the purpose of determining the annual surety bond 49.18 requirement. The gross tuition and fees used to determine the 49.19 amount of the surety bond required for a school having a license 49.20 for the sole purpose of recruiting students in Minnesota shall 49.21 be only that paid to the school by the students recruited from 49.22 Minnesota. 49.23 (c) The bond shall run to the state of Minnesota and to any 49.24 person who may have a cause of action against the applicant 49.25 arising at any time after the bond is filed and before it is 49.26 canceled for breach of any contract or agreement made by the 49.27 applicant with any student. The aggregate liability of the 49.28 surety for all breaches of the conditions of the bond shall not 49.29 exceed the principal sumof $10,000deposited by the school 49.30 under paragraph (b). The surety of anysuchbond may cancel it 49.31 upon giving 60 days notice in writing to the office and shall be 49.32 relieved of liability for any breach of condition occurring 49.33 after the effective date of cancellation. 49.34 (d) In lieu of bond, the applicant may deposit with the 49.35 state treasurerthea sumof $10,000equal to the amount of the 49.36 required surety bond in cash, or securitiessuchas may be 50.1 legally purchased by savings banks or for trust funds in an 50.2 aggregate market valueof $10,000equal to the amount of the 50.3 required surety bond. 50.4 (e) Failure of a school to post and maintain the required 50.5 surety bond or deposit under paragraph (d) may result in denial, 50.6 suspension, or revocation of the school's license. 50.7 Sec. 11. Minnesota Statutes 1996, section 141.25, 50.8 subdivision 6, is amended to read: 50.9 Subd. 6. [RESIDENT AGENT.] Schoolsdomiciledlocated 50.10 outside the state of Minnesotawhichthat offer, advertise, 50.11 solicit for, or conduct anycourse of instructionprogram within 50.12 the state of Minnesota shall first file with the secretary of 50.13 state a sworn statement designating a resident agent authorized 50.14 to receive service of process.SuchThe statement shall 50.15 designate the secretary of state as resident agent for service 50.16 of process in the absence of an agent otherwise so designated. 50.17 In the event a school fails to filesuchthe statement, the 50.18 secretary of state isherebydesignated as the resident agent 50.19 authorized to receive service of process.SuchThe 50.20 authorization shall be irrevocable as to causes of action 50.21 arising out of transactions occurring prior to the filing of 50.22 written notice of withdrawal from the state of Minnesota filed 50.23 with the secretary of state. 50.24 Sec. 12. Minnesota Statutes 1996, section 141.25, 50.25 subdivision 7, is amended to read: 50.26 Subd. 7. [MINIMUM STANDARDS.] No license shall be issued 50.27 unless the office first determines: 50.28(a)(1) that the applicant has a sound financial condition 50.29 with sufficient resources available to meet the school's 50.30 financial obligations; to refund all tuition and other charges, 50.31 within a reasonable period of time, in the event of dissolution 50.32 of the school or in the event of any justifiable claims for 50.33 refund against the school by the student body; to provide 50.34 adequate service to its students and prospective students; and 50.35 for the proper use and support of the school to be maintained; 50.36(b)(2) that the applicant has satisfactorytraining51.1 facilities with sufficient tools and equipment and the necessary 51.2 number of work stations totrainprepare adequately the students 51.3 currently enrolled, and those proposed to be enrolled; 51.4(c)(3) that the applicant employs a sufficient number of 51.5 qualifiedinstructors trained by experience and education51.6 teaching personnel togiveprovide thetrainingeducational 51.7 programs contemplated; 51.8(d)(4) that the school has an organizational framework 51.9 with administrative and instructional personnel to provide the 51.10 programs and services it intends to offer; 51.11 (5) that the premises and conditions under which the 51.12 students work and study are sanitary, healthful, and safe, 51.13 according to modern standards; 51.14(e)(6) that each occupational course or programof51.15instructionor study shall be ofsuchthe quality and contentas51.16 to provide education andtrainingpreparation which will 51.17 adequately prepare enrolled students for entry level positions 51.18 in the occupation for whichtrainedprepared; 51.19(f)(7) that the living quarters which are owned, 51.20 maintained, or approved by the applicant for students are 51.21 sanitary and safe; 51.22(g)(8) that the contract or enrollment agreement used by 51.23 the school complies with thefollowingprovisions:in section 51.24 141.265; 51.25(1) the name and address of the school must be clearly51.26stated;51.27(2) inclusion of a clear and conspicuous disclosure that51.28such agreement becomes a legally binding instrument upon written51.29acceptance of the student by the school unless canceled pursuant51.30to section 141.271;51.31(3) must contain the school's cancellation and refund51.32policy which shall be clearly and conspicuously entitled,51.33"Buyer's Right to Cancel";51.34(4) the total cost of the course including tuition and all51.35other charges shall be clearly stated;51.36(5) the name and description of the course, including the52.1number of hours or credits of classroom instruction and/or home52.2study lessons shall be included;52.3(6) no contract or agreement shall(9) that contracts and 52.4 agreements do not contain a wage assignment provisionand/oror 52.5 a confession of judgment clause; and 52.6(7) each contract or enrollment agreement shall contain a52.7clear and conspicuous explanation of the form and means of52.8notice the student should use in the event the student elects to52.9cancel the contract or sale, the effective date of cancellation,52.10and the name and address of the seller to which the notice52.11should be sent or delivered; and52.12(h)(10) that there has been no adjudication of fraud or 52.13 misrepresentation in any criminal, civil, or administrative 52.14 proceeding in any jurisdiction against the school or its owner, 52.15 officers, agents, or sponsoring organization. 52.16 Sec. 13. Minnesota Statutes 1996, section 141.25, 52.17 subdivision 8, is amended to read: 52.18 Subd. 8. [FEES AND TERMS OF LICENSE.](a)Applications for 52.19 initial license under sections 141.21 to141.36141.35 shall be 52.20 accompanied by a nonrefundable application fee established by 52.21 the office that is sufficient to recover, but not exceed, its 52.22 administrative costs. 52.23(b)All licenses shall expire one year from the date issued 52.24 by the office.Each renewal application shall be accompanied by52.25a nonrefundable renewal fee established by the office that is52.26sufficient to recover, but does not exceed, its administrative52.27costs.52.28(c) Application for renewal of license shall be made at52.29least 30 days before the expiration of the school's current52.30license. Each renewal form shall be supplied by the office. It52.31shall not be necessary for an applicant to supply all52.32information required in the initial application at the time of52.33renewal unless requested by the office.52.34 Sec. 14. Minnesota Statutes 1996, section 141.25, 52.35 subdivision 9, is amended to read: 52.36 Subd. 9. [CATALOG OR BROCHURE.] Before a license is issued 53.1 to a school, other than one which offers exclusively a53.2correspondence course of instruction, the school shall furnish 53.3 to the office a catalog or brochure containing the following: 53.4 (1) identifying data, such as volume number and date of 53.5 publication; 53.6 (2) name and address of the school and its governing body 53.7 and officials; 53.8 (3) a calendar of the school showing legal holidays, 53.9 beginning and ending dates of each course quarter, term, or 53.10 semester, and other important dates; 53.11 (4) school policy and regulations on enrollment including 53.12 dates and specific entrance requirements for eachcourse53.13 program; 53.14 (5) school policy and regulations about leave, absences, 53.15 class cuts, make-up work, tardiness, and interruptions for 53.16 unsatisfactory attendance; 53.17 (6) school policy and regulations about standards of 53.18 progress for the student including the grading system of the 53.19 school, the minimum grades considered satisfactory, conditions 53.20 for interruption for unsatisfactory grades or progress, a 53.21 description of any probationary period allowed by the school, 53.22 and conditions of reentrance for those dismissed for 53.23 unsatisfactory progress; 53.24 (7) school policy and regulations about student conduct and 53.25 conditions for dismissal for unsatisfactory conduct; 53.26 (8) detailed schedule of fees, charges for tuition, books, 53.27 supplies, tools, student activities, laboratory fees, service 53.28 charges, rentals, deposits, and all other charges; 53.29 (9) policy and regulations, including an explanation of 53.30 section 141.271, about refunding tuition, fees, and other 53.31 charges if the student does not enter thecourseprogram, 53.32 withdraws from the program, or the program is discontinued; 53.33 (10) a description of the available facilities and 53.34 equipment; 53.35 (11) a course outline for each course offered showing 53.36 course objectives, subjects or units in the course, type of work 54.1 or skill to be learned, and approximate time, hours, or credits 54.2 to be spent on each subject or unit;and54.3 (12) policy and regulations about granting credit for 54.4 previous education andtrainingpreparation; 54.5 (13) a procedure for investigating and resolving student 54.6 complaints; and 54.7 (14) the name and address of the Minnesota higher education 54.8 services office. 54.9 A school exclusively offering a correspondence program is 54.10 exempt from clauses (3) and (5). 54.11 Sec. 15. Minnesota Statutes 1996, section 141.25, 54.12 subdivision 10, is amended to read: 54.13 Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is 54.14 issued to a school that offers, advertises or implies a 54.15 placement service, the school shall file with the office for the 54.16 past year and thereafter at reasonable intervals determined by 54.17 the office, a certified copy of the school's placement record, 54.18 containing a list of graduates, a description of their job, name 54.19 of their employer, and other information as the office may 54.20 prescribe. 54.21 (b) Each school that offers a placement service shall 54.22 furnish to each prospective student, prior to enrollment, 54.23 written information concerning the percentage of the previous 54.24 year's graduates who were placed in the occupation for which 54.25trainedprepared or in related employment. 54.26 Sec. 16. Minnesota Statutes 1996, section 141.25, 54.27 subdivision 12, is amended to read: 54.28 Subd. 12. [PERMANENT RECORDS.]Before a license is issued54.29to a school,Each school licensed under this chapter and located 54.30 in Minnesota shall maintain a permanentrecordsrecord forall54.31students enrolled at any timeeach student for 50 years from the 54.32 last date of the student's attendance. Each school licensed 54.33 under this chapter and offering a correspondencecourse of54.34instructionprogram to a student located in Minnesota shall 54.35 maintain a permanentrecordsrecord for each Minnesota 54.36students enrolled at any timestudent for 50 years from the last 55.1 date of the student's attendance. Records include school 55.2 transcripts, documents, and files containing student data about 55.3 academic credits earned, courses completed, grades awarded, 55.4 degrees awarded, and periods of attendance. To preserve 55.5 permanent records, a school shall submit a plan that meets the 55.6 following requirements: 55.7(a)(1) at least one copy of the records must be held in a 55.8 secure depository; 55.9(b)(2) an appropriate official must be designated to 55.10 provide a student with copies of records or a transcript upon 55.11 request; 55.12(c)(3) an alternative method of complying withparagraphs55.13(a) and (b)clauses (1) and (2) must be established if the 55.14 school ceases to exist; and 55.15(d)(4) a continuous surety bond must be filed with the 55.16 office in an amount not to exceed $20,000 if the school has no 55.17 binding agreement for preserving student records or a trust must 55.18 be arranged if the school ceases to exist. 55.19 Sec. 17. [141.251] [LICENSE RENEWAL.] 55.20 Subdivision 1. [CONDITIONS.] The office shall establish by 55.21 rule different conditions for renewal of licenses based on the 55.22 record of the school. The conditions shall permit renewals 55.23 based on relaxed standards of scrutiny for schools that have 55.24 demonstrated the quality of their programs and their operations 55.25 through longevity and performance. The office shall specify 55.26 minimum longevity standards and performance indicators that must 55.27 be met before a school may be permitted to operate under these 55.28 standards. 55.29 Subd. 2. [APPLICATION.] Application for renewal of 55.30 licenses must be made at least 30 days before expiration of the 55.31 current license on a form supplied by the office. Each renewal 55.32 application shall be accompanied by a nonrefundable fee 55.33 established by the office that is sufficient to recover, but 55.34 does not exceed, its administrative costs. 55.35 Sec. 18. Minnesota Statutes 1996, section 141.26, 55.36 subdivision 2, is amended to read: 56.1 Subd. 2. [APPLICATION FOR PERMIT.] (a) The application for 56.2 the permit shall state the full name, address, previous 56.3 employment, and such other information concerning the solicitor 56.4 applicant as the office may require. 56.5 (b) The application shall have attached to it a certified 56.6 affidavit signed by a school official and the solicitor 56.7 attesting to the fact that the applicant has been furnished a 56.8 copy, has read and has knowledge of the provisions of this 56.9 chapter and Minnesota Rules, parts 3530.6500 to 3530.7800. 56.10 Sec. 19. [141.265] [INFORMATION TO STUDENTS.] 56.11 Subdivision 1. [CATALOG.] A school or its agent shall 56.12 deliver the catalog or brochure required in section 141.25, 56.13 subdivision 9, to each prospective student in a time or manner 56.14 that provides the prospective student ample opportunity to read 56.15 the catalog or brochure before signing any contract or 56.16 enrollment agreement or before being accepted by a school that 56.17 does not use a written contract or enrollment agreement. 56.18 Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment 56.19 agreement used by a school must include at least the following: 56.20 (1) the name and address of the school, clearly stated; 56.21 (2) a clear and conspicuous disclosure that the agreement 56.22 becomes a legally binding instrument upon written acceptance of 56.23 the student by the school unless canceled under section 141.271; 56.24 (3) the school's cancellation and refund policy which shall 56.25 be clearly and conspicuously entitled "Buyer's Right to Cancel"; 56.26 (4) the total cost of the program including tuition and all 56.27 other charges shall be clearly stated; 56.28 (5) the name and description of the program, including the 56.29 number of hours or credits of classroom instruction, 56.30 correspondence lessons, or both that shall be included; and 56.31 (6) a clear and conspicuous explanation of the form and 56.32 means of notice the student should use in the event the student 56.33 elects to cancel the contract or sale, the effective date of 56.34 cancellation, and the name and address of the seller to which 56.35 the notice should be sent or delivered. 56.36 Subd. 3. [CONTRACT COPIES.] Immediately upon signing of 57.1 the enrollment agreement or the contract by the prospective 57.2 student, the school or agent shall furnish to the prospective 57.3 student an exact duplicate copy of the enrollment agreement or 57.4 contract. 57.5 Sec. 20. Minnesota Statutes 1996, section 141.271, 57.6 subdivision 1, is amended to read: 57.7 Subdivision 1. [NOTICE OF ACCEPTANCE OR REJECTION; RIGHT57.8TO REFUNDSTUDENT.] For the purposes of this section, "student" 57.9 means the party to the contract, whether the party is the 57.10 student, the student's parent or guardian, or other person on 57.11 behalf of the student. 57.12 Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall 57.13 notify each student, in writing, of acceptance or rejection. In 57.14 the event that the student is rejected by the school, all 57.15 tuition, fees and other charges shall be refunded. 57.16 Sec. 21. Minnesota Statutes 1996, section 141.271, 57.17 subdivision 2, is amended to read: 57.18 Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a) 57.19 Notwithstanding anything to the contrary, every schoolwhich57.20 thatutilizesuses a written contract or enrollment agreement 57.21 shall refund all tuition, fees and other charges paid by a 57.22 student, if the student gives written notice of cancellation 57.23 within five business days after the day on which the contract 57.24 was executed regardless of whether thecourse of instruction57.25 program has started. 57.26 (b)With respect to those schools utilizing a written57.27contract or enrollment agreement,When a student has been 57.28 accepted by the school and has entered into a contractual 57.29 agreement with the school and gives written notice of 57.30 cancellation following the fifth business day after the date of 57.31 execution of contract, but before the start of thecourse of57.32instructionprogram in the case of resident schools, or before 57.33 the first lesson has been serviced by the school in the case of 57.34 correspondence(home study)schools, all tuition, fees and other 57.35 charges, except 15 percent of the total cost of thecourse57.36 program but not to exceed $50, shall be refunded to the student. 58.1 Sec. 22. Minnesota Statutes 1996, section 141.271, 58.2 subdivision 3, is amended to read: 58.3 Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 58.4 Notwithstanding anything to the contrary, every school which 58.5 does notutilizeuse a written contract or enrollment agreement 58.6 shall refund all tuition, fees and other charges paid by a 58.7 student if the student gives written notice of cancellation 58.8 within five business days after the day on which the student is 58.9 accepted by the school regardless of whether thecourse of58.10instructionprogram has started. 58.11 (b)With respect to those schools not utilizing a written58.12contract or enrollment agreement,When a student has been 58.13 accepted by the school and gives written notice of cancellation 58.14 following the fifth business day after the day of acceptance by 58.15 the school, but before the start of thecourse of58.16instructionprogram, in the case of resident schools, or before 58.17 the first lesson has been serviced by the school, in the case of 58.18 correspondence(home study)schools, all tuition, fees and other 58.19 charges, except 15 percent of the total cost of thecourse58.20 program but not to exceed $50, shall be refunded to the student. 58.21 Sec. 23. Minnesota Statutes 1996, section 141.271, 58.22 subdivision 4, is amended to read: 58.23 Subd. 4. [RESIDENT SCHOOLS.]With respect to all schools58.24offering a resident course of instruction,When a student has 58.25 been accepted bythea school offering a resident program and 58.26 gives written notice of cancellation after the start of the 58.27 period of instruction for which the student has been charged, 58.28 but before completion of 75 percent of the period of instruction 58.29for which the student has been charged, the amount charged for 58.30 tuition, fees, and all other chargesfor the completed portion58.31of the period of instruction for which the student has been58.32chargedshallnot exceed the pro ratabe prorated as a portion 58.33 of the total charges for tuition, fees, and all other charges 58.34that the length of the completed portion of the period of58.35instruction for which the student has been charged bears to its58.36total length, plus. An additional 25 percent of the total cost 59.1 of the period of instructionfor which the student has been59.2chargedmay be added, but not to exceed $100. After completion 59.3 of 75 percent of the period of instruction for which the student 59.4 has been charged, no refunds are required. 59.5 Sec. 24. Minnesota Statutes 1996, section 141.271, 59.6 subdivision 5, is amended to read: 59.7 Subd. 5. [CORRESPONDENCE HOME STUDY SCHOOLS.]With respect59.8to all schools offering a correspondence (home study) course of59.9instruction,When a student has been accepted bythea 59.10 correspondence school and gives written notice of cancellation 59.11 after the first lesson has been completed by the student and 59.12 serviced by the school, but before completion of 75 percent of 59.13 thecourse of instructionprogram, the amount charged for 59.14 tuition, fees and all other charges for the completed lessons 59.15 shallnot exceed the pro ratabe prorated as a portion of the 59.16 total charges for tuition, fees and all other chargesthat the59.17number of lessons completed by the student bears to the total59.18number of lessons offered, plus. An additional 25 percent of 59.19 the total cost of thecourseprogram may be added but not to 59.20 exceed $75. After completion of 75 percent of thecourse of59.21instructionprogram, no refunds are required. 59.22 Sec. 25. Minnesota Statutes 1996, section 141.271, 59.23 subdivision 6, is amended to read: 59.24 Subd. 6. [COMBINATION CORRESPONDENCE-RESIDENT SCHOOLS.] 59.25With respect to all schools offering a combination59.26correspondence (home study)-resident course of instruction,When 59.27 a student has been accepted bythea school that offers a 59.28 combination correspondence-residence program and gives written 59.29 notice of cancellation after the start of thecourse of59.30instructionprogram or after the first lesson has been completed 59.31 by the student and serviced by the school, whichever phase comes 59.32 first, the school shall refund all tuition, fees and other 59.33 charges as providedforin subdivision 4 if cancellation occurs 59.34 during the resident portion, and as provided for in subdivision 59.35 5 if cancellation occurs during the correspondence portion;59.36provided that,. If the cancellation occurs before the student 60.1 has commenced one of the phases, the price of that phase shall 60.2 not be considered in making the proration and the student shall 60.3 be entitled to a full refund of theprice thereofcharges. 60.4 Conversely, if the student has completed a phase of thecourse60.5 program before cancellation, theprice thereofcharges may be 60.6 retained by the school provided that the total tuition, fees and 60.7 other charges for each phase have been stated separately in the 60.8 school's catalog and contract or enrollment agreement. 60.9 Sec. 26. Minnesota Statutes 1996, section 141.271, 60.10 subdivision 12, is amended to read: 60.11 Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.] No school 60.12 shall negotiate any promissory instrument received as payment of 60.13 tuition or other charge prior to completion of 50 percent of the 60.14course of instructionprogram. Prior tosuchthat time,such60.15 instruments may be transferred by assignment to purchasers who 60.16 shall be subject to all defenses available against the school 60.17 named as payee. 60.18 Sec. 27. Minnesota Statutes 1996, section 141.28, 60.19 subdivision 3, is amended to read: 60.20 Subd. 3. [FALSE STATEMENTS.] No school, agent, or 60.21 solicitor shall make, or cause to be made, any statement or 60.22 representation, oral, written or visual, in connection with the 60.23 offering or publicizing of acourseprogram, ifsuchthe school, 60.24 agent, or solicitor knows or reasonably should have known the 60.25 statement or representation to be false, fraudulent, deceptive, 60.26 substantially inaccurate, or misleading. 60.27 Sec. 28. Minnesota Statutes 1996, section 141.28, 60.28 subdivision 5, is amended to read: 60.29 Subd. 5. [IMPROBABLECOURSEPROGRAM COMPLETION OR 60.30 EMPLOYMENT.] No school, agent, or solicitor shall enroll a 60.31 prospective student when it is obvious that the prospective 60.32 student is unlikely to successfully complete acourse of60.33instructionprogram or is unlikely to qualify for employment in 60.34 the vocation or field for which thetrainingpreparation is 60.35 designed unless this fact is affirmatively disclosed to the 60.36 prospective student. If a prospective student expresses a 61.1 desire to enroll after such disclosure, a disclaimer may be 61.2 obtained by the school.SuchThe disclaimer shall be signed by 61.3 the student and shall state substantially as follows: "I am 61.4 fully aware that it is unlikely I will be able to successfully 61.5 complete thecourse of instructionprogram" and/or "I am fully 61.6 aware of the improbability or impossibility that I will qualify 61.7 for employment in the vocation or field for which thecourse61.8 program was designed." 61.9 Sec. 29. Minnesota Statutes 1996, section 141.29, 61.10 subdivision 1, is amended to read: 61.11 Subdivision 1. [GROUNDS.] The office may, after notice and 61.12 upon providing an opportunity for a hearing,pursuant tounder 61.13 chapter 14 if requested by the parties adversely affected, 61.14 refuse to issue, refuse to renew, revoke, or suspend any license 61.15 or solicitor's permit for any one or any combination of the 61.16 following grounds: 61.17(a)(1) violation of any provisions of sections 141.21 to 61.18141.36141.35 or any rulepromulgatedadopted by the office; 61.19(b)(2) furnishing to the office false, misleading, or 61.20 incomplete information; 61.21(c)(3) presenting to prospective students information 61.22 relating to the school which is false, fraudulent, deceptive, 61.23 substantially inaccurate, or misleading; 61.24(d)(4) refusal to allow reasonable inspection or supply 61.25 reasonable information after written requestthereforby the 61.26 office; 61.27(e)(5) the existence of any circumstance which would be 61.28 grounds for the refusal of an initial or renewal license under 61.29 section 141.25. 61.30 Sec. 30. Minnesota Statutes 1996, section 141.31, is 61.31 amended to read: 61.32 141.31 [INJUNCTION.] 61.33 Upon application of the attorney general the district 61.34 courts shall have jurisdiction to enjoin any violation of 61.35 sections 141.21 to141.36141.35. 61.36 Sec. 31. Minnesota Statutes 1996, section 141.35, is 62.1 amended to read: 62.2 141.35 [EXEMPTIONS.] 62.3None of the provisions ofSections 141.21 to141.36141.35 62.4 shall not apply to the following: 62.5(a)(1)colleges authorized by the laws of Minnesota or of62.6any other state or foreign country to grant degreespublic 62.7 post-secondary institutions; 62.8 (2) private post-secondary institutions registered under 62.9 sections 136A.61 to 136A.71 that are nonprofit or are approved 62.10 to offer exclusively baccalaureate or postbaccalaureate 62.11 programs; 62.12(b)(3) schools of nursing accredited by the state board of 62.13 nursing or an equivalent public board of another state or 62.14 foreign country; 62.15(c) public schools as defined in section 120.05;62.16(d)(4) private schools complying with the requirements of 62.17 section 120.101, subdivision24; 62.18(e) private and parochial nonprofit schools exempt from62.19taxation under the constitution of Minnesota;62.20(f)(5) courses taught to students in a valid 62.21 apprenticeship program taught by or required by a trade union; 62.22(g)(6) schools exclusively engaged in training physically 62.23 or mentally handicapped persons for the state of Minnesota; 62.24(h)(7) schoolsnow or hereafterlicensed by boards 62.25 authorized under Minnesota law to issuesuchlicenses; 62.26(i)(8) schools and educational programs, or training 62.27 programs, conducted by persons, firms, corporations, or 62.28 associations, for the training of their own employees, for which 62.29 no fee is charged the employee; 62.30(j)(9) schools engaged exclusively in the teaching of 62.31 purely avocational, recreational, or remedial subjects as 62.32 determined by the office. Private schools teaching a method or62.33procedure to increase the speed with which a student reads are62.34not within this exemption; 62.35(k)(10) driver training schools and instructors as defined 62.36 in section 171.33, subdivisions 1 and 2; 63.1(l)(11) classes, courses, or programs conducted by a bona 63.2 fide trade, professional, or fraternal organization, solely for 63.3 that organization's membership; 63.4(m) courses of instruction(12) programs in the fine arts 63.5 provided by organizations exempt from taxationpursuant tounder 63.6 section 290.05 and registered with the attorney generalpursuant63.7tounder chapter 309. "Fine arts" means activities resulting in 63.8 artistic creation or artistic performance of works of the 63.9 imagination which are engaged in for the primary purpose of 63.10 creative expression rather than commercial sale or employment. 63.11 In making this determination the office may seek the advice and 63.12 recommendation of the Minnesota board of the arts; 63.13(n)(13) classes, courses, or programs intended to fulfill 63.14 the continuing education requirements for licensure or 63.15 certification in a profession,which classes, courses, or63.16programsthat have been approved by a legislatively or 63.17 judicially established board or agency responsible for 63.18 regulating the practice of the profession, andwhichthat are 63.19 offered primarily toa person who currently practicespeople 63.20 practicing the profession; 63.21(o)(14) classes, courses, or programs intended to prepare 63.22 students to sit for undergraduate, graduate, postgraduate, or 63.23 occupational licensing and occupational entrance examinations; 63.24(p)(15) classes, courses, or programsof a seminar nature63.25 providing 16 or fewer clock hours of instruction that are not 63.26 part of the curriculum for an occupation or are not intended to 63.27 prepare a person for entry level employment; 63.28(q)(16) classes, courses, or programsof a seminar nature63.29 providing instruction in personal development, modeling, or 63.30 acting;and63.31(r)(17) training or instructional programs, in which one 63.32 instructor teaches an individual student, that are not part of 63.33 the curriculum for an occupation or are not intended to prepare 63.34 a person for entry level employment; and 63.35 (18) schools with no physical presence in Minnesota engaged 63.36 exclusively in offering distance education courses or programs 64.1 that are located in and regulated by other states or 64.2 jurisdictions. 64.3 Sec. 32. [REPEALER.] 64.4 Minnesota Statutes 1996, sections 141.25, subdivisions 9a, 64.5 9b, and 11; and 141.36, are repealed.