as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
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; modifying certain 1.8 conditions for the Minnesota state colleges and 1.9 universities; clarifying requirements for student 1.10 conduct policy; modifying programs that promote 1.11 college affordability; modifying provisions relating 1.12 to regent selection and recruitment; authorizing board 1.13 of regents to establish a branch campus in Rochester; 1.14 clarifying and changing requirements for private 1.15 career schools; providing for rulemaking; amending 1.16 Minnesota Statutes 1998, sections 16B.465, subdivision 1.17 4; 135A.155; 136A.031, subdivision 3; 136A.121, 1.18 subdivisions 5 and 6; 136A.125, subdivision 4; 1.19 136F.02, subdivision 2; 136F.04, subdivision 1; 1.20 136F.22, subdivision 1; 136F.32, subdivision 2, and by 1.21 adding a subdivision; 137.0245, subdivision 4; 141.21, 1.22 subdivisions 3, 5, 6, and by adding subdivisions; 1.23 141.22; 141.25, subdivisions 1, 2, 3, 5, 6, 7, 8, 9, 1.24 10, and 12; 141.26, subdivision 2; 141.271, 1.25 subdivisions 1, 2, 3, 4, 5, 6, and 12; 141.28, 1.26 subdivisions 3 and 5; 141.29, subdivision 1; 141.31; 1.27 141.32; 141.35; and 471.59, subdivision 1; proposing 1.28 coding for new law in Minnesota Statutes, chapters 1.29 137; and 141; repealing Minnesota Statutes 1998, 1.30 sections 136A.1359; 136A.136; 141.25, subdivisions 9a, 1.31 9b, and 11; and 141.36. 1.32 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.33 ARTICLE 1 1.34 APPROPRIATIONS 1.35 Section 1. [HIGHER EDUCATION APPROPRIATIONS.] 1.36 The sums in the columns marked "APPROPRIATIONS" are 1.37 appropriated from the general fund, or other named fund, to the 1.38 agencies and for the purposes specified in this article. The 2.1 listing of an amount under the figure "2000" or "2001" in this 2.2 article indicates that the amount is appropriated to be 2.3 available for the fiscal year ending June 30, 2000, or June 30, 2.4 2001, respectively. "The first year" is fiscal year 2000. "The 2.5 second year" is fiscal year 2001. "The biennium" is fiscal 2.6 years 2000 and 2001. 2.7 SUMMARY BY FUND 2.8 2000 2001 TOTAL 2.9 General $1,272,589,000 $1,352,999,000 $2,625,588,000 2.10 SUMMARY BY AGENCY - ALL FUNDS 2.11 2000 2001 TOTAL 2.12 Higher Education Services 2.13 Office 144,428,000 147,572,000 292,000,000 2.14 Board of Trustees of the 2.15 Minnesota State Colleges 2.16 and Universities 541,990,000 587,867,000 1,129,857,000 2.17 Board of Regents of the 2.18 University of 2.19 Minnesota 584,625,000 615,923,000 1,200,548,000 2.20 Mayo Medical 2.21 Foundation 1,546,000 1,637,000 3,183,000 2.22 APPROPRIATIONS 2.23 Available for the Year 2.24 Ending June 30 2.25 2000 2001 2.26 Sec. 2. HIGHER EDUCATION 2.27 SERVICES OFFICE 2.28 Subdivision 1. Total 2.29 Appropriation 144,428,000 147,572,000 2.30 The amounts that may be spent from this 2.31 appropriation for each purpose are 2.32 specified in the following subdivisions. 2.33 Subd. 2. State Grants 2.34 116,241,000 119,339,000 2.35 If the appropriation in this 2.36 subdivision for either year is 2.37 insufficient, the appropriation for the 2.38 other year is available for it. 2.39 The legislature intends that the higher 2.40 education services office make full 2.41 grant awards in each year of the 2.42 biennium. 2.43 For the biennium, the private 2.44 institution tuition maximum shall be 2.45 $8,216 in the first year and $8,380 in 2.46 the second year for four-year 2.47 institutions and $6,324 in the first 2.48 year and $6,450 in the second year for 3.1 two-year institutions. 3.2 This appropriation contains money to 3.3 set the living and miscellaneous 3.4 expense allowance at $4,885 in each 3.5 year. 3.6 Subd. 3. Interstate Tuition 3.7 Reciprocity 3.8 4,500,000 4,500,000 3.9 If the appropriation in this 3.10 subdivision for either year is 3.11 insufficient, the appropriation for the 3.12 other year is available to meet 3.13 reciprocity contract obligations. 3.14 Subd. 4. State Work Study 3.15 11,194,000 11,194,000 3.16
To assist the legislature in future 3.17 policy and appropriation decisions, the 3.18 office shall collect information from 3.19 all participating institutions on the 3.20 use of child care and work study 3.21 allocations. For each program, the 3.22 data shall include at least the number 3.23 of recipients, the hours for which they 3.24 receive state money, payment per hour, 3.25 location of service, unmet demand, 3.26 returned and additional allocations, 3.27 and any institutional/system policies 3.28 that affect recipients. The office 3.29 shall provide this information to the 3.30 higher education finance committees by 3.31 January 15, 2000. 3.32 Subd. 5. Minitex Library Program 3.33 3,033,000 2,958,000 3.34 Subd. 6. Learning Network of Minnesota 3.35 4,678,000 4,679,000 3.36 Notwithstanding Minnesota Statutes, 3.37 section 16B.465, regional organizations 3.38 receiving grants under the learning 3.39 network may consider proposals from 3.40 competing providers. 3.41 Subd. 7. MNLINK 3.42 450,000 450,000 3.43 Subd. 8. Income Contingent Loans (GRIP) 3.44 The higher education services office 3.45 shall administer an income contingent 3.46 loan repayment program to assist 3.47 graduates of Minnesota schools in 3.48 medicine, dentistry, pharmacy, 3.49 chiropractic medicine, public health, 3.50 and veterinary medicine, and Minnesota 3.51 residents graduating from optometry and 3.52 osteopathy programs. Applicant data 3.53 collected by the higher education 3.54 services office for this program may be 3.55 disclosed to a consumer credit 4.1 reporting agency under the same 4.2 conditions as apply to the supplemental 4.3 loan program under Minnesota Statutes, 4.4 section 136A.162. 4.5 Subd. 9. Edvest 4.6 1,520,000 1,520,000 4.7 Subd. 10. Agency Administration 4.8 2,812,000 2,932,000 4.9 This appropriation includes base 4.10 funding and an increase of $48,000 each 4.11 year to foster post-secondary 4.12 attendance by providing outreach 4.13 services to historically underserved 4.14 groups of Minnesota elementary and 4.15 secondary students. The office may 4.16 retain the entire appropriation or 4.17 contract with other agencies or 4.18 nonprofit organizations for specific 4.19 services in this effort. Prior to 4.20 expending this appropriation, the 4.21 office shall prepare a spending plan 4.22 and submit it to the department of 4.23 finance for review. 4.24 Subd. 11. Balances Forward 4.25 An unencumbered balance in the first 4.26 year under a subdivision in this 4.27 section does not cancel but is 4.28 available for the second year. 4.29 Subd. 12. Transfers 4.30 The higher education services office 4.31 may transfer unencumbered balances from 4.32 the appropriations in this section to 4.33 the state grant appropriation, the 4.34 interstate tuition reciprocity 4.35 appropriation, the child care 4.36 appropriation, and the state work study 4.37 appropriation. 4.38 Sec. 3. BOARD OF TRUSTEES OF THE 4.39 MINNESOTA STATE COLLEGES AND UNIVERSITIES 4.40 Subdivision 1. Total 4.41 Appropriation 541,990,000 587,867,000 4.42 The amounts that may be spent from this 4.43 appropriation for each purpose are 4.44 specified in the following subdivisions. 4.45 The board of trustees is requested to 4.46 amend the board policy on institutional 4.47 reserves to reduce the minimum reserve 4.48 from five percent to three percent. 4.49 The legislature intends that state 4.50 appropriations be used to strengthen 4.51 and support education of students. To 4.52 this end, all money appropriated in 4.53 this section, except that in direct 4.54 support of system office activities, 4.55 shall be allocated by the board 4.56 directly to the colleges and 4.57 universities. 5.1 The legislature further intends that 5.2 colleges and universities have broad 5.3 discretion in spending in order for 5.4 each to meet its distinctive needs. 5.5 Each institution shall report its 5.6 spending decisions to the higher 5.7 education finance committees by January 5.8 30 of 2000 and 2001. 5.9 Subd 2. Campus Base Enhancement 5.10 29,169,000 54,952,000 5.11 This appropriation includes funding to 5.12 enhance the education experience for 5.13 students at each college and university 5.14 by improving academic programs and 5.15 course offerings, student services, 5.16 retention efforts, advising, library 5.17 acquisitions, facilities repair and 5.18 betterment, and class size and 5.19 availability, while holding down 5.20 tuition increases. 5.21 In each year, the board of trustees 5.22 shall increase the percentage of the 5.23 total general fund expenditures for 5.24 direct instruction and academic 5.25 support, as reported in the federal 5.26 Integrated Postsecondary Education Data 5.27 System (IPEDS). By February 15 of 2000 5.28 and 2001, the board of trustees shall 5.29 report to the legislature the 5.30 percentage of total general fund 5.31 expenditures spent on direct 5.32 instruction and on academic support 5.33 during the previous fiscal year by 5.34 institution and for the system as a 5.35 whole. 5.36 During the biennium, neither the board 5.37 nor campuses shall plan or develop 5.38 doctoral level programs or degrees 5.39 until after they have received the 5.40 recommendation of the house and senate 5.41 committees on education, finance, and 5.42 ways and means. 5.43 During the biennium, technical and 5.44 consolidated colleges shall make use of 5.45 instructional advisory committees 5.46 consisting of employers, students, and 5.47 instructors. The instructional 5.48 advisory committee shall be consulted 5.49 when a technical program is proposed to 5.50 be created, modified, or eliminated. 5.51 If a decision is made to eliminate a 5.52 program, a college shall adequately 5.53 notify students and make plans to 5.54 assist students affected by the closure. 5.55 The board shall prepare an annual 5.56 budget for the system office. The 5.57 budget plan shall be submitted to the 5.58 department of finance by July 1 of each 5.59 fiscal year for review. The plan shall 5.60 include budgeted resources/revenues and 5.61 expenditures for each major division or 5.62 program of the system office. The 5.63 board shall review the current 5.64 functions, services, and programs 6.1 managed or provided by the system 6.2 office. The review shall describe the 6.3 purpose and origin of these activities; 6.4 quantify their unit or program cost; 6.5 describe or quantify how they benefit 6.6 the colleges and universities; identify 6.7 duplicate programs or services provided 6.8 at the system and institutional levels 6.9 and analyze whether this duplication is 6.10 beneficial or unnecessary. The board 6.11 shall report to the higher education 6.12 finance committees by February 15, 6.13 2000, on its findings and articulate an 6.14 organizational plan and program budget 6.15 for the system office. 6.16 The board may waive tuition for 6.17 eligible Southwest Asia veterans, as 6.18 provided in Minnesota Statutes, section 6.19 136F.28. 6.20 Subd. 3. Institutional Equity 6.21 5,000,000 5,135,000 6.22 This appropriation is to increase the 6.23 state funding per full year equivalent 6.24 student at historically underfunded 6.25 MnSCU institutions. 6.26 Subd. 4. Technology 6.27 1,750,000 1,750,000 6.28 This appropriation is for technology 6.29 related expenditures including degree 6.30 audit reporting, ISEEK, the virtual 6.31 university, and technology 6.32 infrastructure/Y2K. 6.33 Subd. 5. Farm Business Management 6.34 100,000 100,000 6.35 This appropriation is to increase 6.36 access to the farm and small business 6.37 management programs by expanding the 6.38 capacity of the programs. 6.39 Subd. 6. One-Time Enhancements 6.40 8,784,000 11,750,000 6.41 This appropriation is for economic 6.42 development, leveraged equipment 6.43 purchases, and the firefighters' 6.44 subsidy. 6.45 This appropriation includes $300,000 to 6.46 reimburse Bemidji State University for 6.47 the costs it incurred in testing the 6.48 system's model student information 6.49 system. 6.50 This appropriation includes $100,000 to 6.51 provide start up funding for a rural 6.52 research center at Southwest State 6.53 University. 6.54 Subd. 7. Winona State Land 7.1 Notwithstanding Minnesota Statutes, 7.2 sections 94.09 to 94.16, the board of 7.3 trustees may sell a parcel of Winona 7.4 State University land for no less than 7.5 its appraised value in a private sale 7.6 to resolve conflicting property 7.7 boundaries. Money from the sale is 7.8 appropriated to the board to be 7.9 allocated to Winona State University. 7.10 Subd. 8. Capital Projects 7.11 The board may undertake the following 7.12 projects, using system and campus 7.13 reserves. 7.14 (a) Moorhead State 7.15 $1,090,000 to demolish structures, do 7.16 site preparation, and provide security 7.17 lighting on recently acquired land. 7.18 (b) Winona State 7.19 $6,100,000 to replace the boiler system. 7.20 Sec. 4. BOARD OF REGENTS OF THE 7.21 UNIVERSITY OF MINNESOTA 7.22 Subdivision 1. Total 7.23 Appropriation 584,625,000 615,923,000 7.24 The amounts that may be spent from this 7.25 appropriation for each purpose are 7.26 specified in the following subdivisions. 7.27 Subd. 2. Operations and 7.28 Maintenance 514,946,000 546,014,000 7.29 (a) Base Enhancements 7.30 39,163,000 66,943,000 7.31 This appropriation includes funding to 7.32 improve the undergraduate experience, 7.33 provide repair and betterment on 7.34 University campuses, connect to the 7.35 community, and fund competitive 7.36 compensation. 7.37 $1,706,000 in the first year and 7.38 $3,638,000 in the second year is to 7.39 enhance and expand upper division and 7.40 graduate programs in Rochester as 7.41 provided in article 2, section 13. By 7.42 January 30, 2000, the University shall 7.43 submit to the governor and the 7.44 legislature a master academic plan for 7.45 the region that clearly defines the 7.46 academic needs of the region, short and 7.47 long-term plans to address those needs 7.48 including the designation of 7.49 responsibility among the partner 7.50 institutions, short and long-term 7.51 demographic and enrollment projections, 7.52 physical plant capacity and needs, and 7.53 a delineation of missions among the 7.54 partner institutions to avoid 7.55 competition and duplication. 7.56 (b) Health and Professional Education 8.1 3,000,000 3,000,000 8.2 The University of Minnesota academic 8.3 health center, after consultation with 8.4 the health care community and medical 8.5 education and research costs advisory 8.6 committee, shall report by January 15, 8.7 2000, to the higher education finance 8.8 committees of the legislature on the 8.9 strategic direction of its health 8.10 professional programs. The plans shall 8.11 include a programmatic and financial 8.12 model for health professional education 8.13 that will meet the state's future 8.14 workforce needs, maintain the integrity 8.15 of the education process, provide an 8.16 appropriate level of on-going financial 8.17 support, and provide a framework for 8.18 the health community and academic 8.19 health center to work together in 8.20 meeting the health needs of the state. 8.21 The academic health center is requested 8.22 to provide the report also to the 8.23 commissioner of health and the 8.24 legislative commission on health care 8.25 access. 8.26 (c) One-Time Enhancements 8.27 2,819,000 2,944,000 8.28 This appropriation includes money for 8.29 repair and betterment of facilities. 8.30 Subd. 3. Special 8.31 Appropriation 69,679,000 69,909,000 8.32 The amounts expended for each program 8.33 in the four categories of special 8.34 appropriations shall be separately 8.35 identified in the 2001 biennial budget 8.36 document. 8.37 (a) Agriculture and Extension Service 8.38 54,988,000 54,988,000 8.39 This appropriation is for the 8.40 Agricultural Experiment Station, 8.41 Minnesota Extension Service. 8.42 Any salary increases granted by the 8.43 University to personnel paid from the 8.44 Minnesota Extension appropriation must 8.45 not result in a reduction of the county 8.46 responsibility for the salary payments. 8.47 During the biennium, the University 8.48 shall maintain an advisory council 8.49 system for each experiment station. 8.50 The advisory councils must be broadly 8.51 representative of range of size and 8.52 income distribution of farms and 8.53 agribusinesses and must not 8.54 disproportionately represent those from 8.55 the upper half of the size and income 8.56 distributions. 8.57 (b) Health Sciences 8.58 5,789,000 5,846,000 9.1 This appropriation is for rural 9.2 physicians associates program, the 9.3 Veterinary Diagnostic Laboratory, 9.4 health sciences research, dental care, 9.5 and the Biomedical Engineering Center. 9.6 (c) Institute of Technology 9.7 1,600,000 1,645,000 9.8 This appropriation is for the 9.9 Geological Survey and the Talented 9.10 Youth Mathematics Program. 9.11 (d) System Specials 9.12 7,302,000 7,430,000 9.13 This appropriation is for general 9.14 research, student loans matching money, 9.15 industrial relations education, Natural 9.16 Resources Research Institute, Center 9.17 for Urban and Regional Affairs, Bell 9.18 Museum of Natural History, and the 9.19 Humphrey exhibit. 9.20 Sec. 5. MAYO MEDICAL FOUNDATION 9.21 Subdivision 1. Total 9.22 Appropriation 1,546,000 1,637,000 9.23 The amounts that may be spent from this 9.24 appropriation for each purpose are 9.25 specified in the following subdivisions. 9.26 Subd. 2. Medical School 9.27 554,000 605,000 9.28 The state of Minnesota shall pay a 9.29 capitation of $13,200 in the first year 9.30 and $14,405 in the second year for each 9.31 student who is a resident of 9.32 Minnesota. The appropriation may be 9.33 transferred between years of the 9.34 biennium to accommodate enrollment 9.35 fluctuations. 9.36 The legislature intends that during the 9.37 biennium the Mayo foundation use the 9.38 capitation money to increase the number 9.39 of doctors practicing in rural areas in 9.40 need of doctors. 9.41 Subd. 3. Family Practice and 9.42 Graduate Residency Program 9.43 601,000 625,000 9.44 The state of Minnesota shall pay a 9.45 capitation of $21,455 for 26 residents 9.46 and $42,911 for one resident in the 9.47 first year, and $22,313 for 26 9.48 residents and $44,627 for one resident 9.49 in the second year. 9.50 Subd. 4. St. Cloud Hospital-Mayo 9.51 Family Practice Residency Program 9.52 391,000 407,000 10.1 This appropriation is to the Mayo 10.2 foundation to support 12 resident 10.3 physicians in the first year and 12 10.4 resident physicians in the second year 10.5 in the St. Cloud Hospital-Mayo Family 10.6 Practice Residency Program. The 10.7 program shall prepare doctors to 10.8 practice primary care medicine in the 10.9 rural areas of the state. It is 10.10 intended that this program will improve 10.11 health care in rural communities, 10.12 provide affordable access to 10.13 appropriate medical care, and manage 10.14 the treatment of patients in a more 10.15 cost-effective manner. 10.16 ARTICLE 2 10.17 RELATED PROVISIONS 10.18 Section 1. Minnesota Statutes 1998, section 16B.465, 10.19 subdivision 4, is amended to read: 10.20 Subd. 4. [PROGRAM PARTICIPATION.] (a) The commissioner may 10.21 require the participation of state agencies ,and the state board 10.22 of education, and the board of trustees of the Minnesota state10.23 colleges and universitiesand may request the participation of 10.24 the board of regents of the University of Minnesota and the 10.25 board of trustees of the Minnesota state colleges and 10.26 universities, in the planning and implementation of the network 10.27 to provide interconnective technologies. The commissioner shall 10.28 establish reimbursement rates in cooperation with the 10.29 commissioner of finance to be billed to participating agencies 10.30 and educational institutions sufficient to cover the operating, 10.31 maintenance, and administrative costs of the system. 10.32 (b) A direct appropriation made to an educational 10.33 institution for usage costs associated with the state 10.34 information infrastructure must only be used by the educational 10.35 institution for payment of usage costs of the network as billed 10.36 by the commissioner of administration. 10.37 Sec. 2. Minnesota Statutes 1998, section 135A.155, is 10.38 amended to read: 10.39 135A.155 [HAZING POLICY.] 10.40 The board of trustees of the Minnesota state colleges and 10.41 universities shall, and the University of Minnesota is requested 10.42 to, adopt a clear, understandable written policy on student 10.43 conduct, including hazing. The policy must include procedures 11.1 for reporting incidents of inappropriate hazing and for 11.2 disciplinary actions against individual violators and 11.3 organizations. The policy must be provided to students when11.4 they register and must beshall be made available to students 11.5 through means such as publication in the student handbook or 11.6 course schedule or posting on a campus website, as determined by 11.7 each institution. The policy also shall be posted at 11.8 appropriate locations on campus. A private post-secondary 11.9 institution that is an eligible institution as defined in 11.10 section 136A.101, subdivision 4, must adopt a policy that meets 11.11 the requirements of this section. 11.12 Sec. 3. Minnesota Statutes 1998, section 136A.031, 11.13 subdivision 3, is amended to read: 11.14 Subd. 3. [STUDENT ADVISORY COUNCIL.] A student advisory 11.15 council (SAC) to the higher education services council is 11.16 established. The members of SAC shall include: the chair of 11.17 the University of Minnesota student senate ,; the state chair of 11.18 the Minnesota state university student association , the11.19 president of the Minnesota community college student11.20 association, the president of the Minnesota technical college11.21 student association,; the president of the Minnesota state 11.22 college student association and an officer of the Minnesota 11.23 state college student association, one in a community college 11.24 course of study and one in a technical college course of study; 11.25 the president of the Minnesota association of private college 11.26 students ,; and a student who is enrolled in a private vocational 11.27 school, to be appointed by the Minnesota association of private 11.28 post-secondary schools. A member may be represented by a 11.29 student designee who attends an institution from the same system 11.30 that the absent member represents. The SAC shall select one of 11.31 its members to serve as chair. 11.32 The higher education services council shall inform the SAC 11.33 of all matters related to student issues under consideration and 11.34 shall refer all proposals to the SAC before taking action or 11.35 sending the proposals to the governor or legislature. The SAC 11.36 shall report to the higher education services council quarterly 12.1 and at other times that the SAC considers desirable. The SAC 12.2 shall determine its meeting times, but it shall also meet with 12.3 the council within 30 days after the director's request for a 12.4 meeting. 12.5 The SAC shall: 12.6 (1) bring to the attention of the higher education services 12.7 council any matter that the SAC believes needs the attention of 12.8 the council; 12.9 (2) make recommendations to the higher education services 12.10 council as it finds appropriate; 12.11 (3) appoint student members to the higher education 12.12 services council advisory groups as provided in subdivision 4; 12.13 and 12.14 (4) provide any reasonable assistance to the council. 12.15 Sec. 4. Minnesota Statutes 1998, section 136A.121, 12.16 subdivision 5, is amended to read: 12.17 Subd. 5. [GRANT STIPENDS.] The grant stipend shall be 12.18 based on a sharing of responsibility for covering the recognized 12.19 cost of attendance by the applicant, the applicant's family, and 12.20 the government. The amount of a financial stipend must not 12.21 exceed a grant applicant's recognized cost of attendance, as 12.22 defined in subdivision 6, after deducting the following: 12.23 (1) the assigned student responsibility of at least 4746 12.24 percent of the cost of attending the institution of the 12.25 applicant's choosing; 12.26 (2) the assigned family responsibility as defined in 12.27 section 136A.101; and 12.28 (3) the amount of a federal Pell grant award for which the 12.29 grant applicant is eligible. 12.30 The minimum financial stipend is $300$200 per academic 12.31 year. 12.32 Sec. 5. Minnesota Statutes 1998, section 136A.121, 12.33 subdivision 6, is amended to read: 12.34 Subd. 6. [COST OF ATTENDANCE.] (a) The recognized cost of 12.35 attendance consists of allowances specified in law for room and 12.36 board and miscellaneous expenses, and 13.1 (1) for public institutions, tuition and fees charged by 13.2 the institution; or 13.3 (2) for private institutions, an allowance for tuition and 13.4 fees equal to the lesser of the actual tuition and fees charged 13.5 by the institution, or the private institution tuition maximums 13.6 established in law. By the time of the November forecast in the 13.7 even numbered years, the commissioner of finance shall recommend 13.8 to the governor and the legislature for each year of the 13.9 biennium an inflation adjustment to the private institution 13.10 tuition maximum that shall equal the percentage change in the 13.11 consumer price index for all urban consumers (CPI-U) for the 13.12 12-month period ending in October of the preceding year. 13.13 (b) For the purpose of paragraph (a), clause (2), the 13.14 private institution tuition maximum for two- and four-year, 13.15 private, residential, liberal arts, degree-granting colleges and 13.16 universities must be the same. 13.17 (c) For a student attending less than full time, the office 13.18 shall prorate the recognized cost of attendance to the actual 13.19 number of credits for which the student is enrolled. 13.20 The recognized cost of attendance for a student who is 13.21 confined to a Minnesota correctional institution shall consist 13.22 of the tuition and fee component in paragraph (a), clause (1) or 13.23 (2), with no allowance for living expenses. 13.24 Sec. 6. Minnesota Statutes 1998, section 136A.125, 13.25 subdivision 4, is amended to read: 13.26 Subd. 4. [AMOUNT AND LENGTH OF GRANTS.] The amount of a 13.27 child care grant must be based on: 13.28 (1) the income of the applicant and the applicant's spouse, 13.29 if any; 13.30 (2) the number in the applicant's family, as defined by the 13.31 office; and 13.32 (3) the number of eligible children in the applicant's 13.33 family. 13.34 The maximum award to the applicant shall be $2,000 for each 13.35 eligible child per academic year, except that the campus 13.36 financial aid officer may apply to the office for approval to 14.1 increase grants by up to ten percent to compensate for higher 14.2 market charges for infant care in a community. The office shall 14.3 develop policies to determine community market costs and to 14.4 review institutional requests for compensatory grant increases 14.5 to ensure need and equal treatment. The office shall prepare a 14.6 chart to show the amount of a grant that will be awarded per 14.7 child based on the factors in this subdivision. The chart shall 14.8 include a range of income and family size. 14.9 Sec. 7. Minnesota Statutes 1998, section 136F.02, 14.10 subdivision 2, is amended to read: 14.11 Subd. 2. [TERM; COMPENSATION; REMOVAL; VACANCIES.] The 14.12 compensation, removal of members, and filling of vacancies on 14.13 the board are as provided in section 15.0575. Members are 14.14 appointed for a term of six years, except that the term of each 14.15 of the student members is two years. Terms end on June 30, 14.16 except that members may serve until their successors are 14.17 appointed and qualify. 14.18 Sec. 8. Minnesota Statutes 1998, section 136F.04, 14.19 subdivision 1, is amended to read: 14.20 Subdivision 1. [RESPONSIBILITY.] Notwithstanding section 14.21 136F.03, the statewide community college student association,14.22 state university student association ,and technicalthe state 14.23 college student association shall each have the responsibility 14.24 for recruiting, screening, and recommending qualified candidates 14.25 for itstheir student membermembers of the board. 14.26 Sec. 9. Minnesota Statutes 1998, section 136F.22, 14.27 subdivision 1, is amended to read: 14.28 Subdivision 1. [STATEWIDE.] The board shall recognize one 14.29 statewide student association for the community colleges, one14.30 for thestate universities ,and one for the community and 14.31 technical colleges. Each campus student association shall be 14.32 affiliated with its statewide student association and all 14.33 students enrolled on those campuses shall be members of their 14.34 respective statewide association. 14.35 Sec. 10. Minnesota Statutes 1998, section 136F.32, 14.36 subdivision 2, is amended to read: 15.1 Subd. 2. [TECHNICAL AND CONSOLIDATED TECHNICAL COLLEGES.] 15.2 (a) A technical college or consolidated technical community 15.3 college shall offer students the option of pursuing diplomas and 15.4 certificates in each technical education program, unless the 15.5 board determines that this is not practicable for certain15.6 programsa degree is the only acceptable credential for career 15.7 entry in a specific field. All vocational and technical credits 15.8 earned for a diploma or certificate shall be applicable toward 15.9 any available degree in the same program. 15.10 (b) Certificates and diplomas are credentials that 15.11 demonstrate competence in a vocational or technical area and, 15.12 therefore, may include a general education component only as 15.13 part of an articulation agreement or to meet occupational 15.14 requirements as established by the trade or profession, or by 15.15 the program advisory committee. Students shall be provided with 15.16 applied training in general studies as necessary for competence 15.17 in the program area. Students who have earned a certificate or 15.18 diploma may earn a degree in the same field if they complete the 15.19 general education and other degree requirements. 15.20 Sec. 11. Minnesota Statutes 1998, section 136F.32, is 15.21 amended by adding a subdivision to read: 15.22 Subd. 3. [ASSESSMENT.] To reduce barriers to enrollment 15.23 and to train a skilled workforce, students may be assessed for 15.24 skills necessary for competency in a technical or vocational 15.25 field as part of their program. The results of standardized 15.26 assessment tests shall not prohibit enrollment in a student's 15.27 certificate or diploma program. 15.28 Sec. 12. Minnesota Statutes 1998, section 137.0245, 15.29 subdivision 4, is amended to read: 15.30 Subd. 4. [RECOMMENDATIONS.] The advisory council shall 15.31 recommend at least two and not more than four candidates. By 15.32 March 15 of each odd-numbered year, the advisory council shall 15.33 submit its recommendations to the president of the senate and 15.34 the speaker of the house of representatives. The council also 15.35 shall submit the names of any incumbent regents seeking 15.36 reelection, with or without recommendation. The legislature 16.1 shall not be bound by these recommendations. 16.2 Sec. 13. [137.17] [ROCHESTER BRANCH.] 16.3 Subdivision 1. [ESTABLISH.] The board of regents may 16.4 establish a school of professional and graduate studies as a 16.5 nonresidential branch campus of the University of Minnesota, 16.6 Rochester, to serve the needs of working adults and other 16.7 nontraditional students in southeastern Minnesota. The campus 16.8 shall be a joint partnership of the University of Minnesota with 16.9 Rochester community and technical college, and Winona state 16.10 university. 16.11 Subd. 2. [LEADERSHIP.] The legislature intends that the 16.12 Rochester branch strengthen the existing partnership of 16.13 institutions in Rochester by providing better coordination and 16.14 leadership in serving the needs of the region, while maintaining 16.15 a cooperative basis among the institutions. The University of 16.16 Minnesota is expected to take the leadership role in assessing 16.17 community needs and facilitating the delivery of upper division 16.18 and graduate academic programming and student services by 16.19 existing higher education providers. It is the intent of the 16.20 legislature that this branch not diminish the role or function 16.21 of existing higher education institutions in Rochester or 16.22 elsewhere in the region in which the state already has a 16.23 significant investment. 16.24 Subd. 3. [MISSIONS.] The legislature recognizes that the 16.25 distinctiveness of each of the partner institutions in Rochester 16.26 must be maintained to achieve success in serving the higher 16.27 education needs of the community and the economic goals of the 16.28 state. Further, the legislature intends the University of 16.29 Minnesota to avoid duplicative offerings of courses and programs 16.30 offered by other partner institutions or of specialized programs 16.31 offered by other state university or University of Minnesota 16.32 campuses. Therefore, the University of Minnesota, Winona state 16.33 university, and Rochester community and technical college shall 16.34 develop jointly a statement of missions and roles for the 16.35 programs and services at Rochester which shall be submitted to 16.36 the legislature by January 30, 2000, and any time thereafter 17.1 that the missions and roles change. 17.2 Subd. 4. [CHANGES.] Any proposed changes in the programs, 17.3 services, missions, or roles of the partner institutions in 17.4 Rochester must be approved by the other partner institutions. 17.5 Sec. 14. Minnesota Statutes 1998, section 471.59, 17.6 subdivision 1, is amended to read: 17.7 Subdivision 1. [AGREEMENT.] Two or more governmental 17.8 units, by agreement entered into through action of their 17.9 governing bodies, may jointly or cooperatively exercise any 17.10 power common to the contracting parties or any similar powers, 17.11 including those which are the same except for the territorial 17.12 limits within which they may be exercised. The agreement may 17.13 provide for the exercise of such powers by one or more of the 17.14 participating governmental units on behalf of the other 17.15 participating units. The term "governmental unit" as used in 17.16 this section includes every city, county, town, school district, 17.17 other political subdivision of this or another state, another 17.18 state, the University of Minnesota, and any agency of the state 17.19 of Minnesota or the United States, and includes any 17.20 instrumentality of a governmental unit. For the purpose of this 17.21 section, an instrumentality of a governmental unit means an 17.22 instrumentality having independent policy making and 17.23 appropriating authority. 17.24 Sec. 15. [REGENT RECRUITMENT.] 17.25 A task force is appointed to recommend ways to enhance the 17.26 recruitment of candidates for the board of regents. The task 17.27 force shall consider how to attract more regent candidates, 17.28 especially minority and female candidates. The task force may 17.29 make recommendations in procedures or structures, including 17.30 changes in the structure of the regent candidate advisory 17.31 council or legislative procedures as they relate to the issue of 17.32 recruitment. The task force shall consist of eight members as 17.33 follows: two current or former members of the board of regents, 17.34 appointed by the board; two members of the regent candidate 17.35 advisory council, appointed by the council; two members of the 17.36 University of Minnesota alumni association, appointed by the 18.1 association; one member of the Minnesota house of 18.2 representatives, appointed by the speaker of the house; and one 18.3 member of the Minnesota senate, appointed by the subcommittee on 18.4 committees of the committee on rules and administration. The 18.5 task force shall report its recommendations to the education 18.6 committees of the legislature by January 31, 2000. 18.7 Sec. 16. [METRO PLAN.] 18.8 By September 15, 1999, the board of trustees of the 18.9 Minnesota state colleges and universities shall submit to the 18.10 legislature the master academic plan for the metropolitan area 18.11 as required under Laws 1996, chapter 395, section 3, paragraph 18.12 (e). 18.13 Sec. 17. [REPEALER.] 18.14 Minnesota Statutes 1998, sections 136A.1359; and 136A.136, 18.15 are repealed. 18.16 ARTICLE 3 18.17 OTHER PROVISIONS 18.18 Section 1. Minnesota Statutes 1998, section 141.21, 18.19 subdivision 3, is amended to read: 18.20 Subd. 3. [SOLICITOR.] "Solicitor" means a person who for a 18.21 salary or for commission, acts as an agent, independent 18.22 contractor, salesperson, or counselor in procuring or attempting18.23 to procurerecruiting students or enrolleesfor a course of18.24 instruction by solicitation inprogram using any form made18.25 method, at any place except on the actual business premises of 18.26 the school and except for rendering, other than only providing 18.27 public information serviceat the invitation or permission of a 18.28 school or educational organization. 18.29 Sec. 2. Minnesota Statutes 1998, section 141.21, 18.30 subdivision 5, is amended to read: 18.31 Subd. 5. [SCHOOL.] "School" means any person, within or 18.32 withoutoutside the state, thatwho maintains, advertises, 18.33 solicits, or conducts any course of instructionprogram for 18.34 profit or for a tuition chargeat any level other than 18.35 baccalaureate or graduate programs, and whichis not 18.36 specifically exempted by the provisions ofsections 141.21 to 19.1 141.36141.35. 19.2 Sec. 3. Minnesota Statutes 1998, section 141.21, 19.3 subdivision 6, is amended to read: 19.4 Subd. 6. [COURSE OF INSTRUCTION.] "Course of instruction" 19.5 means any classroom, correspondence, or extension course of19.6 instruction; any subunit of a program; or any combination 19.7 thereof. 19.8 Sec. 4. Minnesota Statutes 1998, section 141.21, is 19.9 amended by adding a subdivision to read: 19.10 Subd. 8. [PROGRAM.] "Program" means any course or grouping 19.11 of courses that is advertised or listed in a school's catalog, 19.12 brochures, website, or other publications, or for which the 19.13 school grants a formal recognition. 19.14 Sec. 5. Minnesota Statutes 1998, section 141.21, is 19.15 amended by adding a subdivision to read: 19.16 Subd. 9. [DISTANCE EDUCATION SCHOOL.] "Distance education 19.17 school" means a school that establishes, keeps, or maintains a 19.18 facility or location where a program is offered through 19.19 correspondence, telecommunication, or electronic media, 19.20 including Internet website, interactive Internet, or CD-ROM 19.21 self-instruction. 19.22 Sec. 6. Minnesota Statutes 1998, section 141.21, is 19.23 amended by adding a subdivision to read: 19.24 Subd. 10. [WEB SITE.] "Website" means a location on the 19.25 World Wide Web made up of one or more pages. 19.26 Sec. 7. Minnesota Statutes 1998, section 141.22, is 19.27 amended to read: 19.28 141.22 [CITATION.] 19.29 Sections 141.21 to 141.36141.35 may be cited as the 19.30 Private Business, Trade and CorrespondenceCareer School Act. 19.31 Sec. 8. Minnesota Statutes 1998, section 141.25, 19.32 subdivision 1, is amended to read: 19.33 Subdivision 1. [REQUIRED.] NoA school shallmust not 19.34 maintain, advertise, solicit for, or conduct any course of19.35 instructionprogram in Minnesota without first obtaining a 19.36 license from the office. 20.1 Sec. 9. Minnesota Statutes 1998, section 141.25, 20.2 subdivision 2, is amended to read: 20.3 Subd. 2. [CONTRACT UNENFORCEABLE.] AnyA contract entered 20.4 into with anya person for a course of instruction after20.5 November 15, 1969,program by or on behalf of anya person 20.6 operating anya school to which a license has not been 20.7 issued pursuant tounder sections 141.21 to 141.3620.8 141.35, shall beis unenforceable in any action brought20.9 thereon. 20.10 Sec. 10. Minnesota Statutes 1998, section 141.25, 20.11 subdivision 3, is amended to read: 20.12 Subd. 3. [APPLICATION.] Application for a license shall be 20.13 on forms prepared and furnished by the office, and shall contain20.14 include the following and suchother information as the office 20.15 may require: 20.16 (a)(1) the title or name of the school, together with20.17 ownership and controlling officers, members, managing employees, 20.18 and director; 20.19 (b)(2) the specific fields of instructionprograms which 20.20 will be offered and the specific purposes of suchthe 20.21 instruction; 20.22 (c)(3) the place or places where suchthe instruction will 20.23 be given; 20.24 (d)(4) a listing of the equipment available for 20.25 instruction in each course of instructionprogram; 20.26 (e)(5) the maximum enrollment to be accommodated with 20.27 equipment available in each specified course of instruction20.28 program; 20.29 (f)(6) the qualifications of instructors and supervisors 20.30 in each specified course of instructionprogram; 20.31 (g)(7) a current balance sheet, income statement, and 20.32 adequate supporting documentation, prepared and certified by an 20.33 independent public accountant or CPA; 20.34 (h)(8) copies of all media advertising and promotional 20.35 literature and brochures, including websites, currently used or 20.36 reasonably expected to be used by suchthe school; 21.1 (i)(9) copies of all Minnesota enrollment agreement forms 21.2 and contract forms and all enrollment agreement forms and 21.3 contract forms used in Minnesota; and 21.4 (10) gross income earned in the preceding year from student 21.5 tuition, fees, and other required institutional charges, unless 21.6 the school files with the office a surety bond equal to at least 21.7 $50,000 as described in subdivision 5. 21.8 Sec. 11. Minnesota Statutes 1998, section 141.25, 21.9 subdivision 5, is amended to read: 21.10 Subd. 5. [BOND.] (a) No license shall be issued to any 21.11 school which maintains, conducts, solicits for, or advertises 21.12 within the state of Minnesota any course of instructionprogram, 21.13 unless the applicant files with the office a continuous 21.14 corporate surety bond in the sum of $10,000written by a company 21.15 authorized to do business in Minnesota conditioned upon the 21.16 faithful performance of all contracts and agreements with 21.17 students made by the applicant. Such21.18 (b) The amount of the surety bond shall be ten percent of 21.19 the preceding year's gross income from student tuition, fees, 21.20 and other required institutional charges, but in no event less 21.21 than $10,000 nor greater than $50,000, except that a school may 21.22 deposit a greater amount at its own discretion. A school in 21.23 each annual application for licensure must compute the amount of 21.24 the surety bond and verify that the amount of the surety bond 21.25 complies with this subdivision, unless the school maintains a 21.26 surety bond equal to at least $50,000. A school that operates 21.27 at two or more locations may combine gross income from student 21.28 tuition, fees, and other required institutional charges for all 21.29 locations for the purpose of determining the annual surety bond 21.30 requirement. The gross tuition and fees used to determine the 21.31 amount of the surety bond required for a school having a license 21.32 for the sole purpose of recruiting students in Minnesota shall 21.33 be only that paid to the school by the students recruited from 21.34 Minnesota. 21.35 (c) The bond shall run to the state of Minnesota and to any 21.36 person who may have a cause of action against the applicant 22.1 arising at any time after the bond is filed and before it is 22.2 canceled for breach of any contract or agreement made by the 22.3 applicant with any student. The aggregate liability of the 22.4 surety for all breaches of the conditions of the bond shall not 22.5 exceed the principal sum of $10,000deposited by the school 22.6 under paragraph (b). The surety of any suchbond may cancel it 22.7 upon giving 60 days' notice in writing to the office and shall 22.8 be relieved of liability for any breach of condition occurring 22.9 after the effective date of cancellation. 22.10 (d) In lieu of bond, the applicant may deposit with the 22.11 state treasurer thea sum of $10,000equal to the amount of the 22.12 required surety bond in cash, or securities suchas may be 22.13 legally purchased by savings banks or for trust funds in an 22.14 aggregate market value of $10,000equal to the amount of the 22.15 required surety bond. 22.16 (e) Failure of a school to post and maintain the required 22.17 surety bond or deposit under paragraph (d) may result in denial, 22.18 suspension, or revocation of the school's license. 22.19 Sec. 12. Minnesota Statutes 1998, section 141.25, 22.20 subdivision 6, is amended to read: 22.21 Subd. 6. [RESIDENT AGENT.] Schools domiciledlocated 22.22 outside the state of Minnesota whichthat offer, advertise, 22.23 solicit for, or conduct any course of instructionprogram within 22.24 the state of Minnesota shall first file with the secretary of 22.25 state a sworn statement designating a resident agent authorized 22.26 to receive service of process. SuchThe statement shall 22.27 designate the secretary of state as resident agent for service 22.28 of process in the absence of ana designated agent otherwise so22.29 designated. In the eventIf a school fails to file suchthe 22.30 statement, the secretary of state is herebydesignated as the 22.31 resident agent authorized to receive service of process. Such22.32 The authorization shall be irrevocable as to causes of action 22.33 arising out of transactions occurring prior to the filing of 22.34 written notice of withdrawal from the state of Minnesota filed 22.35 with the secretary of state. 22.36 Sec. 13. Minnesota Statutes 1998, section 141.25, 23.1 subdivision 7, is amended to read: 23.2 Subd. 7. [MINIMUM STANDARDS.] NoA license shall be issued 23.3 unlessif the office first determines: 23.4 (a)(1) that the applicant has a sound financial condition 23.5 with sufficient resources available to: 23.6 (i) meet the school's financial obligations; to23.7 (ii) refund all tuition and other charges, within a 23.8 reasonable period of time, in the event of dissolution of the 23.9 school or in the event of any justifiable claims for refund 23.10 against the school by the student body; to23.11 (iii) provide adequate service to its students and 23.12 prospective students; and for the proper use23.13 (iv) maintain and support ofthe school to be maintained; 23.14 (b)(2) that the applicant has satisfactory training23.15 facilities with sufficient tools and equipment and the necessary 23.16 number of work stations to trainprepare adequately the students 23.17 currently enrolled, and those proposed to be enrolled; 23.18 (c)(3) that the applicant employs a sufficient number of 23.19 qualified instructors trained by experience and education23.20 teaching personnel to giveprovide the trainingeducational 23.21 programs contemplated; 23.22 (d)(4) that the school has an organizational framework 23.23 with administrative and instructional personnel to provide the 23.24 programs and services it intends to offer; 23.25 (5) that the premises and conditions under which the 23.26 students work and study are sanitary, healthful, and safe, 23.27 according to modern standards; 23.28 (e)(6) that the content of each occupational course or 23.29 program of instruction orstudy shall be of such quality and23.30 content as to provideprovides education and training which will23.31 adequately prepareadequate preparation to enrolled students for 23.32 entry level positions in the occupation for which trained23.33 prepared; 23.34 (f)(7) that the living quarters which are owned, 23.35 maintained, or approved by the applicant for students are 23.36 sanitary and safe; 24.1 (g)(8) that the contract or enrollment agreement used by 24.2 the school complies with the followingprovisions :in section 24.3 141.265; 24.4 (1) the name and address of the school must be clearly24.5 stated;24.6 (2) inclusion of a clear and conspicuous disclosure that24.7 such agreement becomes a legally binding instrument upon written24.8 acceptance of the student by the school unless canceled pursuant24.9 to section 141.271;24.10 (3) must contain the school's cancellation and refund24.11 policy which shall be clearly and conspicuously entitled,24.12 "Buyer's Right to Cancel";24.13 (4) the total cost of the course including tuition and all24.14 other charges shall be clearly stated;24.15 (5) the name and description of the course, including the24.16 number of hours or credits of classroom instruction and/or home24.17 study lessons shall be included;24.18 (6) no contract or agreement shall(9) that contracts and 24.19 agreements do not contain a wage assignment provision and/oror 24.20 a confession of judgment clause; and 24.21 (7) each contract or enrollment agreement shall contain a24.22 clear and conspicuous explanation of the form and means of24.23 notice the student should use in the event the student elects to24.24 cancel the contract or sale, the effective date of cancellation,24.25 and the name and address of the seller to which the notice24.26 should be sent or delivered; and24.27 (h)(10) that there has been no adjudication of fraud or 24.28 misrepresentation in any criminal, civil, or administrative 24.29 proceeding in any jurisdiction against the school or its owner, 24.30 officers, agents, or sponsoring organization. 24.31 Sec. 14. Minnesota Statutes 1998, section 141.25, 24.32 subdivision 8, is amended to read: 24.33 Subd. 8. [FEES AND TERMS OF LICENSE.] (a) ApplicationsAn 24.34 application for an initial license under sections 141.21 24.35 to 141.36141.35 shall be accompanied by a nonrefundable 24.36 application fee established by the office that is sufficient to 25.1 recover, but not exceed, its administrative costs. 25.2 (b)All licenses shall expire one year from the date issued 25.3 by the office. Each renewal application shall be accompanied by25.4 a nonrefundable renewal fee established by the office that is25.5 sufficient to recover, but does not exceed, its administrative25.6 costs.25.7 (c) Application for renewal of license shall be made at25.8 least 30 days before the expiration of the school's current25.9 license. Each renewal form shall be supplied by the office. It25.10 shall not be necessary for an applicant to supply all25.11 information required in the initial application at the time of25.12 renewal unless requested by the office.25.13 Sec. 15. Minnesota Statutes 1998, section 141.25, 25.14 subdivision 9, is amended to read: 25.15 Subd. 9. [CATALOG, BROCHURE, OR WEBSITE.] Before a license 25.16 is issued to a school , other than one which offers exclusively a25.17 correspondence course of instruction, the school shall furnish 25.18 to the office a catalog or, brochure containing the following, 25.19 or copy of any website pages including: 25.20 (1) identifying data, such as volume number and date of 25.21 publication; 25.22 (2) name and address of the school and its governing body 25.23 and officials; 25.24 (3) a calendar of the school showing legal holidays, 25.25 beginning and ending dates of each course quarter, term, or 25.26 semester, and other important dates; 25.27 (4) the school policy and regulations on enrollment 25.28 including dates and specific entrance requirements for 25.29 each courseprogram; 25.30 (5) the school policy and regulations about leave, 25.31 absences, class cuts, make-up work, tardiness, and interruptions 25.32 for unsatisfactory attendance; 25.33 (6) the school policy and regulations about standards of 25.34 progress for the student including the grading system of the 25.35 school, the minimum grades considered satisfactory, conditions 25.36 for interruption for unsatisfactory grades or progress, a 26.1 description of any probationary period allowed by the school, 26.2 and conditions of reentrance for those dismissed for 26.3 unsatisfactory progress; 26.4 (7) the school policy and regulations about student conduct 26.5 and conditions for dismissal for unsatisfactory conduct; 26.6 (8) a detailed schedule of fees, charges for tuition, 26.7 books, supplies, tools, student activities, laboratory fees, 26.8 service charges, rentals, deposits, and all other charges; 26.9 (9) the school policy and regulations, including an 26.10 explanation of section 141.271, about refunding tuition, fees, 26.11 and other charges if the student does not enter the course26.12 program, withdraws from the program, or the program is 26.13 discontinued; 26.14 (10) a description of the available facilities and 26.15 equipment; 26.16 (11) a course outline for each course offered showing 26.17 course objectives, subjects or units in the course, type of work 26.18 or skill to be learned, and approximate time, hours, or credits 26.19 to be spent on each subject or unit; and26.20 (12) the school policy and regulations about granting 26.21 credit for previous education and training.preparation; 26.22 (13) a procedure for investigating and resolving student 26.23 complaints; and 26.24 (14) the name and address of the Minnesota higher education 26.25 services office. 26.26 A school that is exclusively a distance education school is 26.27 exempt from clauses (3) and (5). 26.28 Sec. 16. Minnesota Statutes 1998, section 141.25, 26.29 subdivision 10, is amended to read: 26.30 Subd. 10. [PLACEMENT RECORDS.] (a) Before a license is 26.31 issued to a school that offers, advertises or implies a 26.32 placement service, the school shall file with the office for the 26.33 past year and thereafter at reasonable intervals determined by 26.34 the office, a certified copy of the school's placement record, 26.35 containing a list of graduates, a description of their jobjobs, 26.36 namenames of their employeremployers, and other information as 27.1 the office may prescribe. 27.2 (b) Each school that offers a placement service shall 27.3 furnish to each prospective student, prior to enrollment, 27.4 written information concerning the percentage of the previous 27.5 year's graduates who were placed in the occupation for which 27.6 trainedprepared or in related employment. 27.7 Sec. 17. Minnesota Statutes 1998, section 141.25, 27.8 subdivision 12, is amended to read: 27.9 Subd. 12. [PERMANENT RECORDS.] Before a license is issued27.10 to a school, eachA school licensed under this chapter and 27.11 located in Minnesota shall maintain a permanent recordsrecord 27.12 for all students enrolled at any timeeach student for 50 years 27.13 from the last date of the student's attendance. EachA school 27.14 licensed under this chapter and offering a correspondence course27.15 of instructiondistance education program to a student located 27.16 in Minnesota shall maintain a permanent recordsrecord for each 27.17 Minnesota students enrolled at any timestudent for 50 years 27.18 from the last date of the student's attendance. Records include 27.19 school transcripts, documents, and files containing student data 27.20 about academic credits earned, courses completed, grades 27.21 awarded, degrees awarded, and periods of attendance. To 27.22 preserve permanent records, a school shall submit a plan that 27.23 meets the following requirements: 27.24 (a)(1) at least one copy of the records must be held in a 27.25 secure depository; 27.26 (b)(2) an appropriate official must be designated to 27.27 provide a student with copies of records or a transcript upon 27.28 request; 27.29 (c)(3) an alternative method of complying with paragraphs27.30 (a) and (b)clauses (1) and (2) must be established if the 27.31 school ceases to exist; and 27.32 (d)(4) a continuous surety bond must be filed with the 27.33 office in an amount not to exceed $20,000 if the school has no 27.34 binding agreement for preserving student records or a trust must 27.35 be arranged if the school ceases to exist. 27.36 Sec. 18. [141.251] [LICENSE RENEWAL.] 28.1 Subdivision 1. [APPLICATION.] Application for renewal of a 28.2 license must be made at least 30 days before expiration of the 28.3 current license on a form provided by the office. A renewal 28.4 application shall be accompanied by a nonrefundable fee 28.5 established by the office that is sufficient to recover, but 28.6 does not exceed, its administrative costs. 28.7 Subd. 2. [CONDITIONS.] The office shall adopt rules 28.8 establishing the conditions for renewal of a license. The 28.9 conditions shall permit two levels of renewal based on the 28.10 record of the school. A school that has demonstrated the 28.11 quality of its program and operation through longevity and 28.12 performance in the state may renew its license based on a 28.13 relaxed standard of scrutiny. A school that has been in 28.14 operation in Minnesota for a limited period of time or that has 28.15 not performed adequately on performance indicators shall renew 28.16 its license based on a strict standard of scrutiny. The office 28.17 shall specify minimum longevity standards and performance 28.18 indicators that must be met before a school may be permitted to 28.19 operate under the relaxed standard of scrutiny. The performance 28.20 indicators used in this determination shall include, but not be 28.21 limited to: degree granting status, national accreditation, 28.22 loan default rates, placement rate of graduates, student 28.23 withdrawal rates, audit results, student complaints, and school 28.24 status with the United States Department of Education. Schools 28.25 that meet the requirements established in rule shall be required 28.26 to submit a full relicensure report once every four years, and 28.27 in the interim years will be exempt from the requirements of 28.28 section 141.25, subdivision 3, clauses (4), (5), and (8), and 28.29 Minnesota Rules, parts 4880.1700, subpart 6; and 4880.2100, 28.30 subpart 4. 28.31 Sec. 19. Minnesota Statutes 1998, section 141.26, 28.32 subdivision 2, is amended to read: 28.33 Subd. 2. [APPLICATION FOR PERMIT.] (a) The application for 28.34 the permit shall state the full name, address, previous 28.35 employment, and such other information concerning the solicitor 28.36 applicant as the office may require. 29.1 (b) The application shall have attached to it a certified 29.2 affidavit signed by a school official and the solicitor 29.3 attesting to the fact that the applicant has been furnished a 29.4 copy, has read and has knowledge of the provisions of this 29.5 chapter and Minnesota Rules , parts 3530.6500 to 3530.7800. 29.6 Sec. 20. [141.265] [INFORMATION TO STUDENTS.] 29.7 Subdivision 1. [CATALOG.] A school or its agent shall 29.8 deliver the catalog, brochure, or copy of the website pages 29.9 required in section 141.25, subdivision 9, to a prospective 29.10 student in a time or manner that provides the prospective 29.11 student at least five business days to read the catalog, 29.12 brochure, or copy of the website pages before signing a contract 29.13 or enrollment agreement or before being accepted by a school 29.14 that does not use a written contract or enrollment agreement. 29.15 Subd. 2. [CONTRACT INFORMATION.] A contract or enrollment 29.16 agreement used by a school must include at least the following: 29.17 (1) the name and address of the school, clearly stated; 29.18 (2) a clear and conspicuous disclosure that the agreement 29.19 is a legally binding instrument upon written acceptance of the 29.20 student by the school unless canceled under section 141.271; 29.21 (3) the school's cancellation and refund policy that shall 29.22 be clearly and conspicuously entitled "Buyer's Right to Cancel"; 29.23 (4) a clear statement of total cost of the program 29.24 including tuition and all other charges; 29.25 (5) the name and description of the program, including the 29.26 number of hours or credits of classroom instruction, distance 29.27 education instruction, or both that shall be included; and 29.28 (6) a clear and conspicuous explanation of the form and 29.29 means of notice the student should use in the event the student 29.30 elects to cancel the contract or sale, the effective date of 29.31 cancellation, and the name and address of the seller to which 29.32 the notice should be sent or delivered. 29.33 Subd. 3. [CONTRACT COPIES.] Immediately upon signing of 29.34 the enrollment agreement or the contract by a prospective 29.35 student, the school or agent shall furnish to the prospective 29.36 student an exact duplicate copy of the enrollment agreement or 30.1 contract. 30.2 Sec. 21. Minnesota Statutes 1998, section 141.271, 30.3 subdivision 1, is amended to read: 30.4 Subdivision 1. [ NOTICE OF ACCEPTANCE OR REJECTION; RIGHT30.5 TO REFUNDSTUDENT.] For the purposes of this section, "student" 30.6 means the party to the contract, whether the party is the 30.7 student, the student's parent or guardian, or other person on 30.8 behalf of the student. 30.9 Subd. 1a. [NOTICE; RIGHT TO REFUND.] Every school shall 30.10 notify each student, in writing, of acceptance or rejection. In 30.11 the event that the student is rejected by the school, all 30.12 tuition, fees and other charges shall be refunded. 30.13 Sec. 22. Minnesota Statutes 1998, section 141.271, 30.14 subdivision 2, is amended to read: 30.15 Subd. 2. [SCHOOLS USING WRITTEN CONTRACTS.] (a) 30.16 Notwithstanding anything to the contrary, everya school which30.17 utilizesthat uses a written contract or enrollment agreement 30.18 shall refund all tuition, fees and other charges paid by a 30.19 student, if the student gives written notice of cancellation 30.20 within five business days after the day on which the contract 30.21 was executed regardless of whether the course of instruction30.22 program has started. 30.23 (b) With respect to those schools utilizing a written30.24 contract or enrollment agreement,When a student has been 30.25 accepted by the school and has entered into a contractual 30.26 agreement with the school and gives written notice of 30.27 cancellation following the fifth business day after the date of 30.28 execution of contract, but before the start of the course of30.29 instructionprogram in the case of resident schools, or before 30.30 the first lesson has been serviced by the school in the case of 30.31 correspondence (home study)distance education schools, all 30.32 tuition, fees and other charges, except 15 percent of the total 30.33 cost of the courseprogram but not to exceed $50, shall be 30.34 refunded to the student. 30.35 Sec. 23. Minnesota Statutes 1998, section 141.271, 30.36 subdivision 3, is amended to read: 31.1 Subd. 3. [SCHOOLS NOT USING WRITTEN CONTRACTS.] (a) 31.2 Notwithstanding anything to the contrary, everya school which31.3 that does not utilizeuse a written contract or enrollment 31.4 agreement shall refund all tuition, fees and other charges paid 31.5 by a student if the student gives written notice of cancellation 31.6 within five business days after the day on which the student is 31.7 accepted by the school regardless of whether the course of31.8 instructionprogram has started. 31.9 (b) With respect to those schools not utilizing a written31.10 contract or enrollment agreement,When a student has been 31.11 accepted by the school and gives written notice of cancellation 31.12 following the fifth business day after the day of acceptance by 31.13 the school, but before the start of the course of31.14 instructionprogram, in the case of resident schools, or before 31.15 the first lesson has been serviced by the school, in the case of 31.16 correspondence (home study)distance education schools, all 31.17 tuition, fees and other charges, except 15 percent of the total 31.18 cost of the courseprogram but not to exceed $50, shall be 31.19 refunded to the student. 31.20 Sec. 24. Minnesota Statutes 1998, section 141.271, 31.21 subdivision 4, is amended to read: 31.22 Subd. 4. [RESIDENT SCHOOLS.] With respect to all schools31.23 offering a resident course of instruction,When a student has 31.24 been accepted by thea school offering a resident program and 31.25 gives written notice of cancellation after the start of the 31.26 period of instruction for which the student has been charged, 31.27 but before completion of 75 percent of the period of instruction 31.28 for which the student has been charged, the amount charged for 31.29 tuition, fees, and all other charges for the completed portion31.30 of the period of instruction for which the student has been31.31 chargedshall not exceed the pro ratabe prorated as a portion 31.32 of the total charges for tuition, fees, and all other charges 31.33 that the length of the completed portion of the period of31.34 instruction for which the student has been charged bears to its31.35 total length, plus. An additional 25 percent of the total cost 31.36 of the period of instruction for which the student has been32.1 chargedmay be added, but shall not toexceed $100. After 32.2 completion of 75 percent of the period of instruction for which 32.3 the student has been charged, no refunds are required. 32.4 Sec. 25. Minnesota Statutes 1998, section 141.271, 32.5 subdivision 5, is amended to read: 32.6 Subd. 5. [ CORRESPONDENCE HOME STUDYDISTANCE EDUCATION 32.7 SCHOOLS.] With respect to all schools offering a correspondence32.8 (home study) course of instruction,When a student has been 32.9 accepted by thea distance education school and gives written 32.10 notice of cancellation after the first lesson has been completed 32.11 by the student and serviced by the school, but before completion 32.12 of 75 percent of the course of instructionprogram, the amount 32.13 charged for tuition, fees and all other charges for the 32.14 completed lessons shall not exceed the pro ratabe prorated as a 32.15 portion of the total charges for tuition, fees and all other 32.16 charges that the number of lessons completed by the student32.17 bears to the total number of lessons offered, plus. An 32.18 additional 25 percent of the total cost of the courseprogram 32.19 may be added but shall not toexceed $75. After completion of 32.20 75 percent of the course of instructionprogram, no refunds are 32.21 required. 32.22 Sec. 26. Minnesota Statutes 1998, section 141.271, 32.23 subdivision 6, is amended to read: 32.24 Subd. 6. [COMBINATION CORRESPONDENCE-RESIDENTDISTANCE 32.25 EDUCATION-RESIDENT SCHOOLS.] With respect to all schools32.26 offering a combination correspondence (home study)-resident32.27 course of instruction,When a student has been accepted by thea 32.28 school that offers a combination distance education-residence 32.29 program and gives written notice of cancellation after the start 32.30 of the course of instructionprogram or after the first lesson 32.31 has been completed by the student and serviced by the school, 32.32 whichever phase comes first, the school shall refund all 32.33 tuition, fees and other charges as provided forin subdivision 4 32.34 if cancellation occurs during the resident portion, and as 32.35 provided for in subdivision 5 if cancellation occurs during 32.36 the correspondencedistance education portion ; provided that,. 33.1 If the cancellation occurs before the student has commenced one 33.2 of the phases, the price of that phase shall not be considered 33.3 in making the proration and the student shall be entitled to a 33.4 full refund of the price thereofcharges. Conversely, if the 33.5 student has completed a phase of the courseprogram before 33.6 cancellation, the price thereofcharges may be retained by the 33.7 school provided that the total tuition, fees and other charges 33.8 for each phase have been stated separately in the school's 33.9 catalog and contract or enrollment agreement. 33.10 Sec. 27. Minnesota Statutes 1998, section 141.271, 33.11 subdivision 12, is amended to read: 33.12 Subd. 12. [INSTRUMENT NOT TO BE NEGOTIATED.] NoA school 33.13 shall not negotiate any promissory instrument received as 33.14 payment of tuition or other charge prior to completion of 50 33.15 percent of the course of instructionprogram. Prior to such33.16 that time, suchinstruments may be transferred by assignment to 33.17 purchasers who shall be subject to all defenses available 33.18 against the school named as payee. 33.19 Sec. 28. Minnesota Statutes 1998, section 141.28, 33.20 subdivision 3, is amended to read: 33.21 Subd. 3. [FALSE STATEMENTS.] NoA school, agent, or 33.22 solicitor shall not make, or cause to be made, any statement or 33.23 representation, oral, written or visual, in connection with the 33.24 offering or publicizing of a courseprogram, if suchthe school, 33.25 agent, or solicitor knows or reasonably should have known the 33.26 statement or representation to be false, fraudulent, deceptive, 33.27 substantially inaccurate, or misleading. 33.28 Sec. 29. Minnesota Statutes 1998, section 141.28, 33.29 subdivision 5, is amended to read: 33.30 Subd. 5. [IMPROBABLE COURSEPROGRAM COMPLETION OR 33.31 EMPLOYMENT.] NoA school, agent, or solicitor shall not enroll a 33.32 prospective student when it is obvious that the prospective 33.33 student is unlikely to successfully complete a course of33.34 instructionprogram or is unlikely to qualify for employment in 33.35 the vocation or field for which the trainingpreparation is 33.36 designed unless this fact is affirmatively disclosed to the 34.1 prospective student. If a prospective student expresses a 34.2 desire to enroll after such disclosure, a disclaimer may be 34.3 obtained by the school. SuchThe disclaimer shall be signed by 34.4 the student and shall state substantially as followsone or both 34.5 of the following: "I am fully aware that it is unlikely I will 34.6 be able to successfully complete the course of instruction34.7 program" and/orand "I am fully aware of the improbability or 34.8 impossibility that I will qualify for employment in the vocation 34.9 or field for which the courseprogram was designed." 34.10 Sec. 30. Minnesota Statutes 1998, section 141.29, 34.11 subdivision 1, is amended to read: 34.12 Subdivision 1. [GROUNDS.] The office may, after notice and 34.13 upon providing an opportunity for a hearing, pursuant tounder 34.14 chapter 14 if requested by the parties adversely affected, 34.15 refuse to issue, refuse to renew, revoke, or suspend anya 34.16 license or solicitor's permit for any one or any combinationof 34.17 the following grounds: 34.18 (a)(1) violation of any provisions of sections 141.21 to 34.19 141.36141.35 or any rule promulgatedadopted by the office; 34.20 (b)(2) furnishing to the office false, misleading, or 34.21 incomplete information; 34.22 (c)(3) presenting to prospective students information 34.23 relating to the school whichthat is false, fraudulent, 34.24 deceptive, substantially inaccurate, or misleading; 34.25 (d)(4) refusal to allow reasonable inspection or supply 34.26 reasonable information after written request thereforby the 34.27 office; 34.28 (e)(5) the existence of any circumstance whichthat would 34.29 be grounds for the refusal of an initial or renewal license 34.30 under section 141.25. 34.31 Sec. 31. Minnesota Statutes 1998, section 141.31, is 34.32 amended to read: 34.33 141.31 [INJUNCTION.] 34.34 Upon application of the attorney general the district 34.35 courts shall have jurisdiction to enjoin any violation of 34.36 sections 141.21 to 141.36141.35. 35.1 Sec. 32. Minnesota Statutes 1998, section 141.32, is 35.2 amended to read: 35.3 141.32 [PENALTY.] 35.4 Violation of any provisionsa provision of this chapter 35.5 shall be a misdemeanor. Each day's failure to comply with this 35.6 chapter shall be a separate violation. The office shall adopt 35.7 rules establishing a list of civil penalties and the fine 35.8 associated with each violation. Fines for violations shall not 35.9 exceed $500 per day per violation. 35.10 Sec. 33. Minnesota Statutes 1998, section 141.35, is 35.11 amended to read: 35.12 141.35 [EXEMPTIONS.] 35.13 None of the provisions ofSections 141.21 to 141.36141.35 35.14 shall not apply to the following: 35.15 (a)(1) colleges authorized by the laws of Minnesota or of35.16 any other state or foreign country to grant degreespublic 35.17 post-secondary institutions; 35.18 (2) private post-secondary institutions registered under 35.19 sections 136A.61 to 136A.71 that are nonprofit, or that are for 35.20 profit and registered under sections 136A.61 to 136A.71 as of 35.21 December 31, 1998, or are approved to offer exclusively 35.22 baccalaureate or postbaccalaureate programs; 35.23 (b)(3) schools of nursing accredited by the state board of 35.24 nursing or an equivalent public board of another state or 35.25 foreign country; 35.26 (c) public schools as defined in section 120A.05,35.27 subdivisions 9, 11, 13, and 17;35.28 (d)(4) private schools complying with the requirements of 35.29 section 120A.22, subdivision 24; 35.30 (e) private and parochial nonprofit schools exempt from35.31 taxation under the constitution of Minnesota;35.32 (f)(5) courses taught to students in a valid 35.33 apprenticeship program taught by or required by a trade union; 35.34 (g)(6) schools exclusively engaged in training physically 35.35 or mentally handicapped persons for the state of Minnesota; 35.36 (h)(7) schools now or hereafterlicensed by boards 36.1 authorized under Minnesota law to issue suchlicenses; 36.2 (i)(8) schools and educational programs, or training 36.3 programs, conductedcontracted for by persons, firms, 36.4 corporations, government agencies or associations, for the 36.5 training of their own employees, for which no fee is charged the 36.6 employee; 36.7 (j)(9) schools engaged exclusively in the teaching of 36.8 purely avocational, recreational, or remedial subjects as 36.9 determined by the office . Private schools teaching a method or36.10 procedure to increase the speed with which a student reads are36.11 not within this exemption; 36.12 (k)(10) driver training schools and instructors as defined 36.13 in section 171.33, subdivisions 1 and 2; 36.14 (l)(11) classes, courses, or programs conducted by a bona 36.15 fide trade, professional, or fraternal organization, solely for 36.16 that organization's membership; 36.17 (m) courses of instruction(12) programs in the fine arts 36.18 provided by organizations exempt from taxation pursuant tounder 36.19 section 290.05 and registered with the attorney general pursuant36.20 tounder chapter 309. For the purposes of this clause, "fine 36.21 arts" means activities resulting in artistic creation or 36.22 artistic performance of works of the imagination which are 36.23 engaged in for the primary purpose of creative expression rather 36.24 than commercial sale or employment. In making this determination 36.25 the office may seek the advice and recommendation of the 36.26 Minnesota board of the arts; 36.27 (n)(13) classes, courses, or programs intended to fulfill 36.28 the continuing education requirements for licensure or 36.29 certification in a profession, which classes, courses, or36.30 programsthat have been approved by a legislatively or 36.31 judicially established board or agency responsible for 36.32 regulating the practice of the profession, and whichthat are 36.33 offered primarily to a person who currently practicesan 36.34 individual practicing the profession; 36.35 (o)(14) classes, courses, or programs intended to prepare 36.36 students to sit for undergraduate, graduate, postgraduate, or 37.1 occupational licensing and occupational entrance examinations; 37.2 (p)(15) classes, courses, or programs of a seminar nature37.3 providing 16 or fewer clock hours of instruction that are not37.4 part of the curriculum for an occupation or are not intended to37.5 prepare a person for entry level employment; 37.6 (q)(16) classes, courses, or programs of a seminar nature37.7 providing instruction in personal development, modeling, or 37.8 acting; and37.9 (r)(17) training or instructional programs, in which one 37.10 instructor teaches an individual student, that are not part of 37.11 the curriculum for an occupation or are not intended to prepare 37.12 a person for entry level employment; and 37.13 (18) schools with no physical presence in Minnesota engaged 37.14 exclusively in offering distance education courses or programs 37.15 that are located in and regulated by other states or 37.16 jurisdictions. 37.17 Sec. 34. [SUBMISSION OF RULES.] 37.18 At least 30 days prior to final adoption of rules 37.19 authorized under sections 18 and 32, the office must submit the 37.20 proposed rules to all members of the education committees of the 37.21 legislature. 37.22 Sec. 35. [REPEALER.] 37.23 Minnesota Statutes 1998, sections 141.25, subdivisions 9a, 37.24 9b, and 11; and 141.36, are repealed.